Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.1
Leases
3 Months Ended
Mar. 31, 2023
Leases  
Leases

Note 9 – Leases

The components of lease expense for the three months ended March 31, 2023 and 2022 were as follows (in thousands):

March 31, 

 

March 31, 

 

2023

 

2022

 

Lease cost

Operating lease cost

 

$

3,894

 

$

3,635

Finance lease cost

Amortization of ROU assets

51

Interest on lease liabilities

21

Total finance lease cost

72

Variable lease cost (1)

2,610

2,665

Short-term lease cost

275

244

Total lease cost

 

$

6,851

 

$

6,544

Weighted average remaining lease term

Operating leases

13 years

13 years

Finance leases

5 years

Weighted average discount rate

Operating leases

8.45

%

8.40

%

Finance leases

9.01

%

%

(1) Variable lease cost is comprised of percentage rent and common area maintenance.

The components of finance lease assets and liabilities on the consolidated balance sheet were as follows (in thousands):

    

March 31, 

    

December 31,

2023

2022

Finance lease right-of-use assets (1)

$

932

$

942

Current portion of finance lease liabilities (1)

 

188

 

177

Long-term portion of finance lease liabilities (1)

743

754

(1) Finance lease assets and liabilities are included in other assets, other current liabilities, and other long-term liabilities on the consolidated balance sheet.

The Company has entered into three operating leases for future restaurants in Washington D.C., Aventura, Florida, and Salt Lake City, Utah that have not commenced as of March 31, 2023. The present value of the aggregate future commitment related to these

leases totals $4.2 million. The Company expects these leases, which have an initial lease term of 10 to 12 years, to commence within the next twelve months.

Supplemental cash flow information related to leases for the period was as follows (in thousands):

March 31, 

March 31, 

2023

2022

Cash paid for amounts included in the measurement of lease liabilities:

 

Operating cash flows from operating leases

$

3,472

$

3,043

Operating cash flows from finance leases

$

51

$

Financing cash flows from finance leases

$

104

$

Right-of-use assets obtained in exchange for lease obligations:

Operating leases

$

3,178

$

3,709

Finance leases

 

$

41

$

As of March 31, 2023, maturities of the Company’s operating lease liabilities are as follows (in thousands):

2023

$

5,442

2024

15,771

2025

15,065

2026

15,019

2027

15,277

Thereafter

132,234

Total lease payments

198,808

Less: imputed interest

(84,968)

Present value of operating lease liabilities

 

$

113,840

As of March 31, 2023, maturities of the Company’s finance lease liabilities are as follows (in thousands):

2023

$

203

2024

243

2025

243

2026

243

2027

203

Total lease payments

1,135

Less: imputed interest

(204)

Present value of finance lease liabilities

 

$

931