| Gift Cards |
4. Gift Cards The following tables present information related to gift cards (in thousands): | | | | | | | | | | | | | | | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | | | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | | | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | Gift card liabilities: | | | | | | | | | | | | | Beginning balance | | $ | 187,715 | | $ | 199,855 | | $ | 212,859 | | $ | 226,810 | Activations | | | 27,186 | | | 29,471 | | | 44,162 | | | 50,144 | Redemptions and breakage | | | (31,450) | | | (33,033) | | | (73,570) | | | (80,661) | Ending balance | | $ | 183,451 | | $ | 196,293 | | $ | 183,451 | | $ | 196,293 |
| | | | | | | | | | | | | | | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | | | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | | | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | Gift card contract assets: (1) | | | | | | | | | | | | | Beginning balance | | $ | 16,833 | | $ | 17,080 | | $ | 17,958 | | $ | 18,447 | Deferrals | | | 2,592 | | | 2,833 | | | 4,943 | | | 5,201 | Amortization | | | (3,510) | | | (3,624) | | | (6,986) | | | (7,359) | Ending balance | | $ | 15,915 | | $ | 16,289 | | $ | 15,915 | | $ | 16,289 |
(1) | Included in prepaid expenses on the condensed consolidated balance sheets. |
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