Leases (Tables)

9 Months Ended

Sep. 27, 2025

Lease, Cost

The components of lease cost for finance leases and operating leases for the thirty-nine weeks ended September 27, 2025 were (in thousands):

Finance leases:
Amortization of right-of-use assets	$	13,764
Interest on lease liability		3,343
Total finance lease cost		17,107
Operating leases:
Lease cost		3,429
Variable lease cost		—
Sublease income		(4,605	)
Total net operating lease income		(1,176	)
Total net lease cost	$	15,931

Components of Lease Cost for Finance Leases and Operating Leases

A summary of the lease classification on the Company’s consolidated balance sheet as of September 27, 2025 is as follows (in thousands):

Assets:

Operating lease right-of-use assets	Other assets	$	681
Finance lease assets	Operating property, less accumulated depreciation and amortization		115,008
Total lease assets		$	115,689

Classification on our Consolidated Balance Sheet

The following table reconciles the undiscounted cash flows for the finance and operating leases to the finance and operating lease liabilities recorded on the balance sheet at September 27, 2025 (in thousands):

	Finance Leases			Operating Leases
2025 Remainder	$	8,997		$	74
2026		30,028			298
2027		19,217			264
2028		15,309			94
2029		10,920			—
Thereafter		—			—
Total future minimum lease payments		84,471			730
Less amount representing interest (1.6% to 6.4%)		7,340			49
Present value of minimum lease payments	$	77,131		$	681
Current maturities of long-term debt		29,428
Long-term debt, excluding current maturities		47,703
Other current liabilities					288
Deferred income taxes and other noncurrent liabilities					393

Undiscounted Cash Flows for the Finance and Operating Leases

The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of September 27, 2025 were:

	Finance Leases			Operating  Leases
Weighted average remaining lease term (years)		3.3			2.5
Weighted average discount rate		5.1	%		5.5	%