| Schedule of lease cost |
The following table presents the Company’s total lease cost, disaggregated by underlying asset (in thousands): | | | | | | | | | | | | | | | | | | | | | Thirteen Weeks Ended | | | June 25, 2025 | | June 26, 2024 | | | Property | | Equipment | | | | | Property | | Equipment | | | | | | Leases | | Leases | | Total | | Leases | | Leases | | Total | Finance lease cost: | | | | | | | | | | | | | | | | | | | Amortization of right-of-use assets | | $ | 19 | | $ | 29 | | $ | 48 | | $ | 20 | | $ | 47 | | $ | 67 | Interest on lease liabilities | | | 10 | | | 4 | | | 14 | | | 8 | | | 4 | | | 12 | Operating lease cost: | | | | | | | | | | | | | | | | | | | Fixed rent cost | | | 7,213 | | | 105 | | | 7,318 | | | 7,180 | | | 49 | | | 7,229 | Short-term lease cost | | | — | | | 7 | | | 7 | | | — | | | — | | | — | Variable lease cost | | | 163 | | | 336 | | | 499 | | | 151 | | | 346 | | | 497 | Sublease income | | | (1,748) | | | — | | | (1,748) | | | (1,758) | | | — | | | (1,758) | Total lease cost | | $ | 5,657 | | $ | 481 | | $ | 6,138 | | $ | 5,601 | | $ | 446 | | $ | 6,047 |
| | | | | | | | | | | | | | | | | | | | | Twenty-Six Weeks Ended | | | June 25, 2025 | | June 26, 2024 | | | Property | | Equipment | | | | | Property | | Equipment | | | | | | Leases | | Leases | | Total | | Leases | | Leases | | Total | Finance lease cost: | | | | | | | | | | | | | | | | | | | Amortization of right-of-use assets | | $ | 38 | | $ | 59 | | $ | 97 | | $ | 38 | | $ | 48 | | $ | 86 | Interest on lease liabilities | | | 19 | | | 9 | | | 28 | | | 19 | | | 8 | | | 27 | Operating lease cost: | | | | | | | | | | | | | | | | | | | Fixed rent cost | | | 14,397 | | | 208 | | | 14,605 | | | 14,208 | | | 152 | | | 14,360 | Short-term lease cost | | | — | | | 35 | | | 35 | | | — | | | 1 | | | 1 | Variable lease cost | | | 302 | | | 670 | | | 972 | | | 284 | | | 693 | | | 977 | Sublease income | | | (3,463) | | | — | | | (3,463) | | | (3,537) | | | — | | | (3,537) | Total lease cost | | $ | 11,293 | | $ | 981 | | $ | 12,274 | | $ | 11,012 | | $ | 902 | | $ | 11,914 |
The following table presents the Company’s total lease cost on the condensed consolidated statements of income (in thousands): | | | | | | | | | | | | | | | | Thirteen Weeks Ended | | | Twenty-Six Weeks Ended | | | June 25, 2025 | | June 26, 2024 | | | June 25, 2025 | | June 26, 2024 | Lease cost – Occupancy and other operating expenses | | $ | 5,970 | | $ | 5,851 | | | $ | 11,935 | | $ | 11,566 | Lease cost – General & administrative | | | 106 | | | 117 | | | | 214 | | | 235 | Lease cost – Depreciation and amortization | | | 48 | | | 67 | | | | 97 | | | 86 | Lease cost – Interest expense | | | 14 | | | 12 | | | | 28 | | | 27 | Total lease cost | | $ | 6,138 | | $ | 6,047 | | | $ | 12,274 | | $ | 11,914 |
During the twenty-six weeks ended June 25, 2025 and June 26, 2024, the Company had the following cash and non-cash activities associated with its leases (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | Twenty-Six Weeks Ended June 25, 2025 | | Twenty-Six Weeks Ended June 26, 2024 | | | Property | | Equipment | | | | | Property | | Equipment | | | | | | Leases | | Leases | | Total | | Leases | | Leases | | Total | Cash paid for amounts included in the measurement of lease liabilities | | | | | | | | | | | | | | | | | | | Operating cash flows used for operating leases | | $ | 14,504 | | $ | 186 | | $ | 14,690 | | $ | 14,076 | | $ | 108 | | $ | 14,184 | Financing cash flows used for finance leases | | $ | 47 | | $ | 67 | | $ | 114 | | $ | 47 | | $ | 54 | | $ | 101 | | | | | | | | | | | | | | | | | | | | Non-cash investing and financing activities: | | | | | | | | | | | | | | | | | | | Operating lease ROU assets obtained in exchange for lease liabilities: | | | | | | | | | | | | | | | | | | | Operating lease ROU assets | | $ | 7,070 | | $ | 15 | | $ | 7,085 | | $ | 6,866 | | $ | 1,233 | | $ | 8,099 | Finance lease ROU assets obtained in exchange for lease liabilities: | | | | | | | | | | | | | | | | | | | Finance lease ROU assets | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 69 | | $ | 69 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other Information | | | | | | | | | | | | | | | | | | | Weighted-average remaining years in lease term—finance leases | | | 15.38 | | | 2.95 | | | | | | 16.38 | | | 3.11 | | | | Weighted-average remaining years in lease term—operating leases | | | 9.81 | | | 3.29 | | | | | | 10.26 | | | 4.22 | | | | Weighted-average discount rate—finance leases | | | 2.57 | % | | 6.87 | % | | | | | 2.57 | % | | 6.21 | % | | | Weighted-average discount rate—operating leases | | | 5.36 | % | | 6.72 | % | | | | | 5.12 | % | | 6.67 | % | | |
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| Schedule of Operating Leases |
Information regarding the Company’s minimum future lease obligations as of June 25, 2025 is as follows (in thousands): | | | | | | | | | | | | Finance Leases | | Operating Leases | | | Minimum | | Minimum | | Minimum | | | Lease | | Lease | | Sublease | For the Years Ending | | Payments | | Payments | | Income | December 31, 2025 | | $ | 110 | | $ | 14,731 | | $ | 2,530 | December 30, 2026 | | | 191 | | | 29,274 | | | 5,082 | December 29, 2027 | | | 180 | | | 28,036 | | | 4,942 | December 27, 2028 | | | 134 | | | 26,128 | | | 4,665 | December 26, 2029 | | | 118 | | | 23,182 | | | 4,027 | Thereafter | | | 1,274 | | | 123,264 | | | 23,269 | Total | | $ | 2,007 | | $ | 244,615 | | $ | 44,515 | Less: imputed interest (2.57% - 6.87%) | | | (340) | | | (56,966) | | | | Present value of lease obligations | | | 1,667 | | | 187,649 | | | | Less: current maturities | | | (174) | | | (22,427) | | | | Noncurrent portion | | $ | 1,493 | | $ | 165,222 | | | |
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| Schedule of Financing Leases |
Information regarding the Company’s minimum future lease obligations as of June 25, 2025 is as follows (in thousands): | | | | | | | | | | | | Finance Leases | | Operating Leases | | | Minimum | | Minimum | | Minimum | | | Lease | | Lease | | Sublease | For the Years Ending | | Payments | | Payments | | Income | December 31, 2025 | | $ | 110 | | $ | 14,731 | | $ | 2,530 | December 30, 2026 | | | 191 | | | 29,274 | | | 5,082 | December 29, 2027 | | | 180 | | | 28,036 | | | 4,942 | December 27, 2028 | | | 134 | | | 26,128 | | | 4,665 | December 26, 2029 | | | 118 | | | 23,182 | | | 4,027 | Thereafter | | | 1,274 | | | 123,264 | | | 23,269 | Total | | $ | 2,007 | | $ | 244,615 | | $ | 44,515 | Less: imputed interest (2.57% - 6.87%) | | | (340) | | | (56,966) | | | | Present value of lease obligations | | | 1,667 | | | 187,649 | | | | Less: current maturities | | | (174) | | | (22,427) | | | | Noncurrent portion | | $ | 1,493 | | $ | 165,222 | | | |
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