Leases (Tables)

12 Months Ended

Dec. 29, 2024

The Company’s leases have terms as follows:


						Average lease term
Domestic Company-owned restaurants						Five years, plus at least one renewal
UK Company-owned and 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 29, 2024 and December 31, 2023 (in thousands):


Leases	Classification	December 29, 2024		December 31, 2023
Assets
Finance lease assets, net	Finance lease right-of-use assets, net	$	28,761	$	31,740
Operating lease assets, net	Operating lease right-of-use assets	184,425		164,158
Total lease assets		$	213,186	$	195,898
Liabilities
Current finance lease liabilities	Current finance lease liabilities	$	7,280	$	9,029
Current operating lease liabilities	Current operating lease liabilities	25,756		24,076
Noncurrent finance lease liabilities	Long-term finance lease liabilities	22,885		24,144
Noncurrent operating lease liabilities	Long-term operating lease liabilities	173,557		151,050
Total lease liabilities		$	229,478	$	208,299

Schedule of components of lease expense

Lease costs for the years ended December 29, 2024, December 31, 2023 and December 25, 2022 were as follows:


(Dollars in thousands)	Year Ended
	December 29, 2024		December 31, 2023		December 25, 2022
Finance lease:
Amortization of right-of-use assets	$	8,831	$	8,949	$	5,704
Interest on lease liabilities	1,420		1,542		1,029
Operating lease:
Operating lease cost	43,345		41,514		42,815
Short-term lease cost	4,237		4,239		4,171
Variable lease cost	11,096		10,005		9,129
Total lease costs	68,929		66,249		62,848
Sublease income	(9,748)		(9,842)		(11,654)
Total lease costs, net of sublease income	$	59,181	$	56,407	$	51,194

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 29, 2024 were as follows (in thousands):


Fiscal Year	Finance Lease Costs		Operating Lease Costs		Expected Sublease Income
2025	$	9,077	$	34,544	$	7,197
2026	8,077		37,343		6,154
2027	6,822		31,611		5,259
2028	4,159		26,169		4,389
2029	3,115		21,485		3,671
Thereafter	2,497		113,256		6,639
Total future minimum lease payments	33,747		264,408		33,309
Less imputed interest	(3,582)		(65,095)
Total present value of lease liabilities	$	30,165	$	199,313

Schedule of supplemental cash flow information

The following table presents supplemental cash flow information related to leases for the years ended December 29, 2024, December 31, 2023 and December 25, 2022:


(Dollars in thousands)	Year Ended
	December 29, 2024		December 31, 2023		December 25, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	1,416	$	1,542	$	1,029
Financing cash flows from finance leases	$	8,529	$	8,821	$	5,416
Operating cash flows from operating leases (a)	$	40,488	$	37,814	$	35,573
Right-of-use assets obtained in exchange for new finance lease liabilities	$	9,076	$	16,734	$	9,875
Right-of-use assets obtained in exchange for new operating lease liabilities	$	65,134	$	24,380	$	53,869
Cash received from sublease income	$	7,442	$	8,855	$	10,847

Weighted-average remaining lease term (in years):
Finance leases	4.2		4.3		4.4
Operating leases	9.2		7.8		8.4
Weighted-average discount rate:
Finance leases	5.0%		4.9%		4.6%
Operating leases	5.8%		5.6%		5.6%

______________________________

(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.