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 39-week periods ended September 28, 2025 and September 29, 2024 are below:


	13-Weeks Ended				39-Weeks Ended
	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Operating lease cost	$	2,541	$	1,271	$	6,431	$	3,255
Finance lease cost – amortization of ROU assets		1,193		999		3,300		2,851
Finance lease cost – interest on lease liabilities		191		238		601		723
Short-term lease cost		484		39		941		107
Variable lease cost		5,322		2,971		13,342		8,073
Variable lease cost – long-term supply contracts		65,376		54,496		181,620		164,928
Total lease cost	$	75,107	$	60,014	$	206,235	$	179,937

Future undiscounted cash flows are as follows:


	As of September 28, 2025
	Operating Leases			Finance Leases
2025	$	5,876		$	1,425
2026		4,011			5,743
2027		4,700			4,847
2028		4,700			—
2029		4,700			—
Thereafter		32,900			—
Total lease payments		56,887			12,015
Less imputed interest		(11,832	)		(789	)
Total present value of lease liabilities	$	45,055		$	11,226

During the 39-week periods ended September 28, 2025 and September 29, 2024, ROU assets obtained in exchange for new finance lease obligations were $2,637 and $1,753, respectively. During the 39-week periods ended September 28, 2025 and September 29, 2024, ROU assets obtained in exchange for new operating lease obligations were $65,448 and $11,203, respectively. During the 39-week periods ended September 28, 2025 and September 29, 2024, decreases in operating ROU assets related to lease terminations and modifications were $3,881 and $0, respectively.