|
Note 10 – Leases
The components of lease expense for the three periods ended March 30, 2025 and three months ended March 31, 2024 were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
March 30, |
|
March 31, |
|
|
|
2025 |
|
2024 |
|
Lease cost |
|
|
|
|
|
|
|
Operating lease cost |
|
$ |
11,197 |
|
$ |
4,289 |
|
Finance lease cost |
|
|
|
|
|
|
|
Amortization of ROU assets |
|
|
54 |
|
|
55 |
|
Interest on lease liabilities |
|
|
24 |
|
|
19 |
|
Total finance lease cost |
|
|
78 |
|
|
74 |
|
Variable lease cost (1) |
|
|
7,091 |
|
|
3,089 |
|
Short-term lease cost |
|
|
898 |
|
|
316 |
|
Total lease cost |
|
$ |
19,264 |
|
$ |
7,768 |
|
|
|
|
|
|
|
|
|
Weighted average remaining lease term |
|
|
|
|
|
|
|
Operating leases |
|
|
13 years |
|
|
13 years |
|
Finance leases |
|
|
4 years |
|
|
4 years |
|
Weighted average discount rate |
|
|
|
|
|
|
|
Operating leases |
|
|
10.35 |
% |
|
8.79 |
% |
Finance leases |
|
|
11.14 |
% |
|
9.16 |
% |
| (1) |
Variable lease cost is comprised of percentage rent and common area maintenance. |
The components of finance lease assets and liabilities on the condensed consolidated balance sheet were as follows (in thousands):
|
|
|
|
|
|
|
|
|
March 30, |
|
December 31, |
|
|
2025 |
|
2024 |
Finance lease right-of-use assets (1) |
|
$ |
795 |
|
$ |
849 |
Current portion of finance lease liabilities (1) |
|
|
195 |
|
|
189 |
Long-term portion of finance lease liabilities (1) |
|
|
705 |
|
|
754 |
| (1) |
Finance lease assets and liabilities are included in other assets, other current liabilities, and other long-term liabilities on the condensed consolidated balance sheet. |
Supplemental cash flow information related to leases for the period was as follows (in thousands):
|
|
|
|
|
|
|
|
|
March 30, |
|
March 31, |
|
|
2025 |
|
2024 |
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
Operating cash flows from operating leases |
|
$ |
11,769 |
|
$ |
4,171 |
Operating cash flows from finance leases |
|
$ |
54 |
|
$ |
55 |
Financing cash flows from finance leases |
|
$ |
90 |
|
$ |
68 |
The Company has entered into twelve operating leases for future restaurants that have not commenced as of March 30, 2025. The present value of the aggregate future commitment related to these leases totals $23.1 million. The Company expects these leases, which have an initial lease term of 10 to 20 years, to commence within the next twelve months.
As of March 30, 2025, maturities of the Company’s operating lease liabilities are as follows (in thousands):
|
|
|
|
2025, nine periods remaining |
|
$ |
32,481 |
2026 |
|
|
43,295 |
2027 |
|
|
43,903 |
2028 |
|
|
41,825 |
2029 |
|
|
44,325 |
Thereafter |
|
|
383,430 |
Total lease payments |
|
|
589,259 |
Less: imputed interest |
|
|
(285,019) |
Present value of operating lease liabilities |
|
$ |
304,240 |
As of March 30, 2025, maturities of the Company’s finance lease liabilities are as follows (in thousands):
|
|
|
|
2025, nine periods remaining |
|
$ |
274 |
2026 |
|
|
278 |
2027 |
|
|
278 |
2028 |
|
|
255 |
Total lease payments |
|
|
1,085 |
Less: imputed interest |
|
|
(185) |
Present value of finance lease liabilities |
|
$ |
900 |
|