Leases

6 Months Ended

Apr. 01, 2025

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 April 1, 2025 and March 26, 2024:

Lease cost	Classification	April 1, 2025			March 26, 2024
Operating lease cost	Occupancy, Other restaurant operating costs and General and administrative expenses, net	$	1,855		$	1,908
Variable lease cost	Occupancy		2			10
Sublease income	Occupancy		(122	)		(125	)
		$	1,735		$	1,793

Weighted average lease term and discount rate are as follows:

	April 1, 2025			March 26, 2024
Weighted average remaining lease term (in years)		6.99			7.54
Weighted average discount rate		5.3	%		5.0	%

Supplemental cash flow disclosures:

	April 1, 2025		March 26, 2024
Cash paid for operating lease liabilities	$	4,036	$	3,865
Non-cash operating lease assets obtained in exchange for operating lease liabilities	$	1,474	$	452

Future minimum rent payments for our operating leases as of April 1, 2025 are as follows:

	Total
One Year	$	8,407
Two Years		8,162
Three Years		7,753
Four Years		6,564
Five Years		5,679
Thereafter		14,772
Total minimum lease payments		51,337
Less: imputed interest		(8,676	)
Present value of lease liabilities	$	42,661

The future minimum rental amounts above 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 in accordance with GAAP which generally results in total base rent expense being recognized on a straight-line basis.