v3.26.1
Leases
 12 Months Ended
Dec. 27, 2025
Leases [Abstract]  
Leases Leases
The Company’s lease and sublease portfolio primarily consists of the real property leases related to franchisee and company-operated locations, as well as office space and various vehicle and equipment leases. Leases for real property generally have terms ranging from five to 25 years, with most having one or more renewal options ranging from one to 10 years. The Company does not include option periods in its determination of the lease term unless renewals are deemed reasonably certain to be exercised. Equipment and vehicle leases generally have terms ranging from one to five years. The Company’s portfolio of leases does not contain any material residual value guarantees or restrictive covenants.
The following table details the total investment in operating and finance leases where the Company is the lessee:
(in thousands)
Balance Sheet LocationDecember 27,
2025		December 28,
2024
As Restated
Right-of-use assets
Finance leases Property and equipment, net$24,286 $18,809 
Operating leasesOperating lease right-of-use assets513,458 451,793 
Total right-of-use assets$537,744 $470,602 
 
Current lease liabilities
Finance leases Current portion of long-term debt$6,683 $5,417 
Operating leases Accrued expenses and other liabilities47,094 42,417 
Total current lease liabilities$53,777 $47,834 
 
Long-term lease liabilities
Finance leases Long-term debt$19,181 $13,892 
Operating leasesOperating lease liabilities501,506 439,838 
Total long-term lease liabilities$520,687 $453,730 
The lease cost for operating and finance leases recognized in the consolidated statements of operations were as follows:
(in thousands)
December 27, 2025December 28, 2024December 30, 2023
As RestatedAs Restated
Amortization of right-of-use assets$6,879 $5,501 $3,957 
Interest on lease liabilities1,530 1,368 811 
Operating lease expense82,578 75,544 70,077 
Short-term lease expense2,129 1,756 1,378 
Variable lease expense940 956 1,515 
Total lease expense, net$94,056 $85,125 $77,738 
The Company recorded a $6 million, $1 million, and $63 million impairment loss during the years ended December 27, 2025, December 28, 2024, and December 30, 2023, respectively, related to Company’s decision to exit certain leased locations.
The Company also subleases certain facilities to franchisees and others, which generated $5 million in sublease revenue during each of the years ended December 27, 2025 and December 28, 2024, respectively, and $4 million in sublease revenue during the year ended December 30, 2023, and is included as a component of supply and other revenue on the consolidated statements of operations.
For the year ended December 27, 2025, the Company sold 41 Take 5 properties in various locations throughout the U.S. for a total of $71 million. For the year ended December 28, 2024, the Company sold 34 Take 5 properties in various locations throughout the U.S. for a total of $51 million. For the year ended December 30, 2023, the Company sold 25 Take 5 properties in various locations throughout the U.S. for a total of $39 million. Concurrently with the closing of these sales, the Company entered into various operating lease agreements pursuant to which the Company leased back the properties. These lease agreements have terms typically ranging from 14 to 20 years and provide the Company with the option of extending the lease for up to 20 additional years. The Company does not include option periods in its determination of the lease term unless renewals are deemed reasonably certain to be exercised. The Company recorded an operating lease right-of-use asset and operating lease liability of approximately $55 million and $55 million, respectively, for the year ended December 27, 2025 and $41 million and $41 million, respectively, for the year ended December 28, 2024 related to these lease arrangements. The Company recorded a net loss of $2 million for the year ended December 27, 2025, and net gains of $4 million and $3 million for the years ended December 28, 2024 and December 30, 2023, respectively.
Year Ended
December 27, 2025December 28, 2024
As Restated
Weighted average remaining lease terms (years)
Operating11.811.3
Financing7.14.6
Weighted average discount rate
Operating6.35 %6.19 %
Financing6.31 %6.61 %
Supplemental cash flow information related to the lease arrangements were as follows:
Year Ended
(in thousands)December 27, 2025December 28, 2024December 30, 2023
As RestatedAs Restated
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used in operating leases$79,503 $72,958 $62,541 
     Operating cash flows used in finance leases1,530 1,368 811 
     Financing cash flows used in finance leases5,472 4,390 2,857 
Right-of-use assets obtained in exchange for lease obligations:
     Operating leases$120,100 $77,176 $105,176 
     Finance leases13,074 6,283 5,858 
As of December 27, 2025, future minimum lease payments under noncancellable leases were as follows:
(in thousands)FinanceOperatingIncome from Subleases
2026$8,256 $83,816 $3,236 
20277,553 79,960 2,953 
20283,910 73,425 2,145 
20292,397 68,232 865 
20301,052 63,355 816 
Thereafter10,025 444,490 1,904 
Total undiscounted cash flows$33,193 $813,278 $11,919 
Less: Present value discount7,329 264,678 
Less: Current lease liabilities6,683 47,094 
Long-term lease liabilities$19,181 $501,506 
Leases Leases
The Company’s lease and sublease portfolio primarily consists of the real property leases related to franchisee and company-operated locations, as well as office space and various vehicle and equipment leases. Leases for real property generally have terms ranging from five to 25 years, with most having one or more renewal options ranging from one to 10 years. The Company does not include option periods in its determination of the lease term unless renewals are deemed reasonably certain to be exercised. Equipment and vehicle leases generally have terms ranging from one to five years. The Company’s portfolio of leases does not contain any material residual value guarantees or restrictive covenants.
The following table details the total investment in operating and finance leases where the Company is the lessee:
(in thousands)
Balance Sheet LocationDecember 27,
2025		December 28,
2024
As Restated
Right-of-use assets
Finance leases Property and equipment, net$24,286 $18,809 
Operating leasesOperating lease right-of-use assets513,458 451,793 
Total right-of-use assets$537,744 $470,602 
 
Current lease liabilities
Finance leases Current portion of long-term debt$6,683 $5,417 
Operating leases Accrued expenses and other liabilities47,094 42,417 
Total current lease liabilities$53,777 $47,834 
 
Long-term lease liabilities
Finance leases Long-term debt$19,181 $13,892 
Operating leasesOperating lease liabilities501,506 439,838 
Total long-term lease liabilities$520,687 $453,730 
The lease cost for operating and finance leases recognized in the consolidated statements of operations were as follows:
(in thousands)
December 27, 2025December 28, 2024December 30, 2023
As RestatedAs Restated
Amortization of right-of-use assets$6,879 $5,501 $3,957 
Interest on lease liabilities1,530 1,368 811 
Operating lease expense82,578 75,544 70,077 
Short-term lease expense2,129 1,756 1,378 
Variable lease expense940 956 1,515 
Total lease expense, net$94,056 $85,125 $77,738 
The Company recorded a $6 million, $1 million, and $63 million impairment loss during the years ended December 27, 2025, December 28, 2024, and December 30, 2023, respectively, related to Company’s decision to exit certain leased locations.
The Company also subleases certain facilities to franchisees and others, which generated $5 million in sublease revenue during each of the years ended December 27, 2025 and December 28, 2024, respectively, and $4 million in sublease revenue during the year ended December 30, 2023, and is included as a component of supply and other revenue on the consolidated statements of operations.
For the year ended December 27, 2025, the Company sold 41 Take 5 properties in various locations throughout the U.S. for a total of $71 million. For the year ended December 28, 2024, the Company sold 34 Take 5 properties in various locations throughout the U.S. for a total of $51 million. For the year ended December 30, 2023, the Company sold 25 Take 5 properties in various locations throughout the U.S. for a total of $39 million. Concurrently with the closing of these sales, the Company entered into various operating lease agreements pursuant to which the Company leased back the properties. These lease agreements have terms typically ranging from 14 to 20 years and provide the Company with the option of extending the lease for up to 20 additional years. The Company does not include option periods in its determination of the lease term unless renewals are deemed reasonably certain to be exercised. The Company recorded an operating lease right-of-use asset and operating lease liability of approximately $55 million and $55 million, respectively, for the year ended December 27, 2025 and $41 million and $41 million, respectively, for the year ended December 28, 2024 related to these lease arrangements. The Company recorded a net loss of $2 million for the year ended December 27, 2025, and net gains of $4 million and $3 million for the years ended December 28, 2024 and December 30, 2023, respectively.
Year Ended
December 27, 2025December 28, 2024
As Restated
Weighted average remaining lease terms (years)
Operating11.811.3
Financing7.14.6
Weighted average discount rate
Operating6.35 %6.19 %
Financing6.31 %6.61 %
Supplemental cash flow information related to the lease arrangements were as follows:
Year Ended
(in thousands)December 27, 2025December 28, 2024December 30, 2023
As RestatedAs Restated
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used in operating leases$79,503 $72,958 $62,541 
     Operating cash flows used in finance leases1,530 1,368 811 
     Financing cash flows used in finance leases5,472 4,390 2,857 
Right-of-use assets obtained in exchange for lease obligations:
     Operating leases$120,100 $77,176 $105,176 
     Finance leases13,074 6,283 5,858 
As of December 27, 2025, future minimum lease payments under noncancellable leases were as follows:
(in thousands)FinanceOperatingIncome from Subleases
2026$8,256 $83,816 $3,236 
20277,553 79,960 2,953 
20283,910 73,425 2,145 
20292,397 68,232 865 
20301,052 63,355 816 
Thereafter10,025 444,490 1,904 
Total undiscounted cash flows$33,193 $813,278 $11,919 
Less: Present value discount7,329 264,678 
Less: Current lease liabilities6,683 47,094 
Long-term lease liabilities$19,181 $501,506