Note 3 – Property and Equipment, Net

Property and equipment, net consist of the following (in thousands):

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Depreciation related to property and equipment was $11.4 million and $9.3 million for the three periods ended September 28, 2025 and the three months ended September 30, 2024, respectively, and $31.5 million and $22.3 million for the nine periods ended September 28, 2025 and the nine months ended September 30, 2024, respectively, presented within depreciation and amortization expense in the condensed consolidated statement of operations. The Company also recorded $3.4 million in accelerated depreciation relating to property and equipment for the restaurants closed during 2025, which is presented in lease termination and exit expenses within the condensed consolidated statement of operations. The Company depreciates construction in progress upon such assets being placed into service.

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During the three and nine periods ended September 28, 2025, the Company recorded non-cash impairment charges of $2.7 million on property and equipment, net primarily related to performance of restauarants with upcoming lease expirations.