Leases

3 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Note 11.     Leases

The Company determines if a contract contains a lease at inception. The Company's material long-term operating lease agreements are for the land and buildings for our restaurants as well as our corporate office. The initial lease terms range from 10 years to 20 years, most of which include renewal options of 10 to 15 years.

Components of operating lease costs are as follows for the fiscal quarters ended December 31, 2024 and December 26, 2023:

Lease cost	Classification	December 31, 2024			December 26, 2023
Operating lease cost	Occupancy, Other restaurant operating costs and General and administrative expenses, net	$	1,999		$	1,901
Variable lease cost	Occupancy		12			5
Sublease income	Occupancy		(126	)		(139	)
		$	1,885		$	1,767

Weighted average lease term and discount rate are as follows:

	December 31, 2024			December 26, 2023
Weighted average remaining lease term (in years)		7.18			7.75
Weighted average discount rate		5.3	%		5.0	%

Supplemental cash flow disclosures:

	December 31, 2024		December 26, 2023
Cash paid for operating lease liabilities	$	2,010	$	1,922
Non-cash operating lease assets obtained in exchange for operating lease liabilities	$	761	$	364

Future minimum rent payments for our operating leases as of December 31, 2024 are as follows:

	Total
One Year	$	8,446
Two Years		8,210
Three Years		7,928
Four Years		6,895
Five Years		5,867
Thereafter		16,095
Total minimum lease payments		53,441
Less: imputed interest		(9,168	)
Present value of lease liabilities	$	44,273

The above future minimum rental amounts exclude the amortization of deferred lease incentives, renewal options that are not reasonably assured of renewal, and contingent rent. The Company generally has escalating rents over the term of the leases and records rent expense on a straight-line basis.