Leases (Tables)

12 Months Ended

Dec. 25, 2022

The Company’s leases have terms as follows:


						Average lease term
Domestic Company-owned restaurants						Five years, plus at least one renewal
UK franchise-owned restaurants						15 years
Domestic commissary locations						10 years, plus at least one renewal
Domestic and International tractors and trailers						Five to seven years
Domestic and International commissary and office equipment						Three to five years

Schedule of lease assets and liabilities

The following schedule details the total right-of-use assets and lease liabilities on the Consolidated Balance Sheets as of December 25, 2022 and December 26, 2021 (in thousands):


Leases	Classification	December 25, 2022		December 26, 2021
Assets
Finance lease assets, net	Finance lease right-of-use assets, net	$	24,941	$	20,907
Operating lease assets, net	Operating lease right-of-use assets	172,425		176,256
Total lease assets		$	197,366	$	197,163
Liabilities
Current finance lease liabilities	Current finance lease liabilities	$	6,850	$	4,977
Current operating lease liabilities	Current operating lease liabilities	23,418		22,543
Noncurrent finance lease liabilities	Long-term finance lease liabilities	19,022		16,580
Noncurrent operating lease liabilities	Long-term operating lease liabilities	160,905		160,672
Total lease liabilities		$	210,195	$	204,772

Schedule of components of lease expense

Lease costs for the years ended December 25, 2022, December 26, 2021 and December 27, 2020 were as follows (in thousands):


	Year Ended December 25, 2022		Year Ended December 26, 2021		Year Ended December 27, 2020
Finance lease:
Amortization of right-of-use assets	$	5,704	$	4,980	$	2,342
Interest on lease liabilities	1,029		1,140		606
Operating lease:
Operating lease cost	42,815		43,072		40,026
Short-term lease cost	4,171		2,032		3,960
Variable lease cost	9,129		8,572		6,503
Total lease costs	62,848		59,796		53,437
Sublease income	(11,654)		(12,039)		(10,407)
Total lease costs, net of sublease income	$	51,194	$	47,757	$	43,030

Schedule of future minimum lease payments and sublease income under contractually-obligated leases

Future minimum lease payments under contractually-obligated leases and associated sublease income as of December 25, 2022 were as follows (in thousands):


Fiscal Year	Finance Lease Costs		Operating Lease Costs		Expected Sublease Income
2023	$	7,849	$	32,860	$	10,303
2024	6,801		32,267		10,371
2025	5,171		30,695		9,952
2026	4,125		26,973		9,251
2027	2,971		21,568		8,523
Thereafter	1,440		92,002		42,089
Total future minimum lease payments	28,357		236,365		90,489
Less imputed interest	(2,485)		(52,042)		—
Total present value of lease liabilities	$	25,872	$	184,323	$	90,489

Schedule of supplemental cash flow information

The following table presents supplemental cash flow information related to leases for the years ended December 25, 2022, December 26, 2021 and December 27, 2020:


(Dollars in thousands)	Year Ended
	December 25, 2022		December 26, 2021		December 27, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	1,029	$	1,140	$	606
Financing cash flows from finance leases	$	5,416	$	4,566	$	2,139
Operating cash flows from operating leases (a)	$	35,573	$	38,530	$	37,113
Right-of-use assets obtained in exchange for new finance lease liabilities	$	9,875	$	9,486	$	9,152
Right-of-use assets obtained in exchange for new operating lease liabilities (b)	$	53,869	$	64,420	$	30,266
Cash received from sublease income	$	10,847	$	11,597	$	10,545

Weighted-average remaining lease term (in years):
Finance leases	4.43		4.51		4.71
Operating leases	8.44		8.30		7.00
Weighted-average discount rate:
Finance leases	4.59%		5.08%		5.34%
Operating leases	5.63%		6.20%		6.65%

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(a)Included within the change in Other assets and liabilities within the Consolidated Statements of Cash Flows offset by non-cash operating lease right-of-use asset amortization and lease liability accretion.

(b)Includes right-of-use assets of approximately $21.8 million for the year ended December 25, 2021 associated with the lease commencement of our Atlanta, Georgia corporate office.