Operating lease cost is recognized on a straight-line basis over the lease term and finance lease cost is recognized as amortization expense for the right-of-use (“ROU”) assets and interest expense associated with the finance lease liabilities.

The components of lease cost, classified within cost of goods sold, selling, general and administrative and interest expense for the 13-week and 26-week periods ended June 29, 2025 and June 30, 2024 are below:


	13-Weeks Ended				26-Weeks Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Operating lease cost	$	2,082	$	1,062	$	3,890	$	1,984
Finance lease cost – amortization of ROU assets		1,067		938		2,107		1,852
Finance lease cost – interest on lease liabilities		198		238		410		485
Short-term lease cost		419		37		457		69
Variable lease cost		4,531		2,595		8,020		5,102
Variable lease cost – long-term supply contracts		61,176		54,429		116,244		110,432
Total lease cost	$	69,473	$	59,299	$	131,128	$	119,924

Future undiscounted cash flows are as follows:


	As of June 29, 2025
	Operating Leases			Finance Leases
2025	$	4,083		$	2,493
2026		2,841			5,031
2027		—			4,234
Total lease payments		6,924			11,758
Less imputed interest		(195	)		(899	)
Total present value of lease liabilities	$	6,729		$	10,859

During the 26-week periods ended June 29, 2025 and June 30, 2024, ROU assets obtained in exchange for new finance lease obligations were $1,103 and $1,173, respectively. During the 26-week periods ended June 29, 2025 and June 30, 2024, ROU assets obtained in exchange for new operating lease obligations were $15,965 and $5,228, respectively.