The Company leases certain retail store and supply chain center locations, vehicles, equipment and its corporate headquarters with expiration dates through 2046. Rent expense totaled $22.7 million and $21.8 million in the first quarter of 2026 and the first quarter of 2025, respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Rent expense also includes the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers and expense for short-term rentals. Rent expense for certain short-term supply chain center tractor and trailer rentals was $1.0 million and $2.0 million in the first quarter of 2026 and the first quarter of 2025, respectively. Variable rent expense and rent expense for other short-term leases were immaterial in both the first quarter of 2026 and 2025.

The components of operating and finance lease cost for the first quarters of 2026 and 2025 were as follows:


	Fiscal Quarter Ended
	March 22,		March 23,
	2026		2025
Operating lease cost	$	12,574	$	12,112
Finance lease cost:
Amortization of right-of-use assets		1,373		1,258
Interest on lease liabilities		1,220		871
Total finance lease cost	$	2,593	$	2,129

Supplemental balance sheet information related to the Company’s finance leases as of March 22, 2026 and December 28, 2025 was as follows:


	March 22, 2026			December 28, 2025
Land and buildings	$	146,638		$	80,457
Equipment		4,169			4,225
Finance lease assets		150,807			84,682
Accumulated depreciation and amortization		(34,178	)		(32,908	)
Finance lease assets, net	$	116,629		$	51,774

Current portion of long-term debt	$	7,294		$	6,017
Long-term debt, less current portion		119,965			55,991
Total principal payable on finance leases	$	127,259		$	62,008

Supplemental cash flow information related to leases for the first quarters of 2026 and 2025 were as follows:


	Fiscal Quarter Ended
	March 22,		March 23,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,211	$	10,113
Operating cash flows from finance leases		1,220		871
Financing cash flows from finance leases		823		631
Cash paid for amounts included in the measurement of financing obligation from sale leaseback:
Operating cash flows from sale leaseback		197		198
Financing cash flows from sale leaseback		17		15
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		30,377		15,967
Finance leases		65,589		—

As of March 22, 2026, the Company had additional leases for certain supply chain vehicles that had not yet commenced with estimated future minimum rental commitments of $12.6 million. These leases are expected to commence in 2026 with lease terms of up to 9 years. These undiscounted amounts will be included in the Company’s condensed consolidated balance sheet at the respective commencement dates.

The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees was $11.1 million and $12.6 million as of March 22, 2026 and December 28, 2025, respectively. The Company does not believe these arrangements have or are likely to have a material effect on its results of operations, financial condition, revenues, expenses or liquidity.