| Leases |
Note 9 – Leases
The components of lease expense for the six months ended June 30, 2023 and 2022 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
2023 |
|
2022 |
|
Lease cost |
|
|
|
|
|
|
|
Operating lease cost |
|
$ |
7,943 |
|
$ |
7,317 |
|
Finance lease cost |
|
|
|
|
|
|
|
Amortization of ROU assets |
|
|
102 |
|
|
— |
|
Interest on lease liabilities |
|
|
41 |
|
|
— |
|
Total finance lease cost |
|
|
143 |
|
|
— |
|
Variable lease cost (1) |
|
|
5,781 |
|
|
5,597 |
|
Short-term lease cost |
|
|
488 |
|
|
521 |
|
Total lease cost |
|
$ |
14,355 |
|
$ |
13,435 |
|
|
|
|
|
|
|
|
|
Weighted average remaining lease term |
|
|
|
|
|
|
|
Operating leases |
|
|
13 years |
|
|
13 years |
|
Finance leases |
|
|
4.3 years |
|
|
— |
|
Weighted average discount rate |
|
|
|
|
|
|
|
Operating leases |
|
|
8.53 |
% |
|
8.40 |
% |
Finance leases |
|
|
9.00 |
% |
|
— |
% |
| (1) |
Variable lease cost is comprised of percentage rent and common area maintenance. |
Supplemental cash flow information related to leases for the period was as follows (in thousands):
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2023 |
|
2022 |
Finance lease right-of-use assets (1) |
|
$ |
884 |
|
$ |
942 |
Current portion of finance lease liabilities (1) |
|
|
191 |
|
|
177 |
Long-term portion of finance lease liabilities (1) |
|
|
700 |
|
|
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. |
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
2022 |
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
Operating cash flows from operating leases |
|
$ |
7,090 |
|
$ |
6,531 |
Operating cash flows from finance leases |
|
$ |
102 |
|
$ |
— |
Financing cash flows from finance leases |
|
$ |
185 |
|
$ |
— |
Right-of-use assets obtained in exchange for lease obligations: |
|
|
|
|
|
|
Operating leases |
|
$ |
8,034 |
|
$ |
3,709 |
Finance leases |
|
$ |
43 |
|
$ |
— |
The Company has entered into three operating leases for future restaurants that have not commenced as of June 30, 2023. The present value of the aggregate future commitment related to these leases, net of tenant improvement allowances received from the landlord, is estimated to be $6.1 million. The Company expects these leases, which have initial lease terms of 10 years and one or two 5-year options, to commence within the next twelve months.
As of June 30, 2023, maturities of the Company’s operating lease liabilities are as follows (in thousands):
|
|
|
|
2023 |
|
$ |
1,382 |
2024 |
|
|
15,944 |
2025 |
|
|
15,490 |
2026 |
|
|
15,561 |
2027 |
|
|
15,950 |
Thereafter |
|
|
140,918 |
Total lease payments |
|
|
205,245 |
Less: imputed interest |
|
|
(88,550) |
Present value of operating lease liabilities |
|
$ |
116,695 |
As of June 30, 2023, maturities of the Company’s finance lease liabilities are as follows (in thousands):
|
|
|
|
2023 |
|
$ |
141 |
2024 |
|
|
244 |
2025 |
|
|
244 |
2026 |
|
|
244 |
2027 |
|
|
203 |
Total lease payments |
|
|
1,076 |
Less: imputed interest |
|
|
(185) |
Present value of finance lease liabilities |
|
$ |
891 |
|