Leases

6 Months Ended

Jun. 28, 2026

The following table includes detail of lease assets and liabilities:


(in thousands)	Consolidated Balance Sheet Classification	JUNE 28, 2026		DECEMBER 28, 2025
Finance lease assets - current	Deposits and other current assets	$	—	$	120
Operating lease right-of-use assets	Operating lease right-of-use assets	660,068		614,548
Finance lease assets	Property, fixtures and equipment, net	12,204		10,730
Total lease assets		$	672,272	$	625,398

Operating lease liabilities - current(1)	Current portion of operating lease liabilities	$	79,266	$	75,034
Operating lease liabilities - non-current	Operating lease liabilities	701,656		651,254
Finance lease liabilities - current(1)	Current portion of long-term debt	2,187		2,059
Finance lease liabilities - non-current	Long-term debt, net	12,299		10,847
Total lease liabilities		$	795,408	$	739,194

_____________

(1) Excludes all variable lease expense.

The components of lease expense were as follows:


(in thousands)	Consolidated Statements of Operations and Comprehensive Income Classification	THIRTEEN WEEKS ENDED				TWENTY-SIX WEEKS ENDED
		JUNE 28, 2026		JUNE 29, 2025		JUNE 28, 2026		JUNE 29, 2025
Operating lease expense	Other restaurant operating expenses Occupancy expenses Pre-opening expenses General and administrative expenses	$	23,876	$	20,914	$	46,851	$	40,544
Variable lease expense	Food and beverage costs Occupancy expenses General and administrative expenses	6,332		5,810		12,298		11,044
Finance lease expense:
Amortization of leased assets	Depreciation and amortization	514		225		1,007		418
Interest on lease liabilities	Interest expense	236		87		446		131
Total lease expense (1)		$	30,958	$	27,036	$	60,602	$	52,137

_____________

(1) Includes contingent rent expense of $0.5 million and $0.4 million during the thirteen weeks ended June 28, 2026 and June 29, 2025, respectively, and $1.0 million and $0.9 million during the twenty-six weeks ended June 28, 2026 and June 29, 2025, respectively.

Supplemental cash flow information related to leases was as follows:


(in thousands)	TWENTY-SIX WEEKS ENDED
	JUNE 28, 2026		JUNE 29, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	37,737	$	26,067
Operating cash flows - finance leases	$	446	$	131
Financing cash flows - finance leases	$	781	$	112

Supplemental information related to leases was as follows:


	TWENTY-SIX WEEKS ENDED
	JUNE 28, 2026		JUNE 29, 2025
Weighted-average remaining lease term (in years)
Operating leases	12.5		13.0
Finance leases	11.8		13.6
Weighted-average discount rate (1)
Operating leases	7.7	%	7.7	%
Finance leases	6.5	%	6.2	%

____________

(1) Based on the Company’s incremental borrowing rate.

Leases

The following table includes detail of lease assets and liabilities:


(in thousands)	Consolidated Balance Sheet Classification	JUNE 28, 2026		DECEMBER 28, 2025
Finance lease assets - current	Deposits and other current assets	$	—	$	120
Operating lease right-of-use assets	Operating lease right-of-use assets	660,068		614,548
Finance lease assets	Property, fixtures and equipment, net	12,204		10,730
Total lease assets		$	672,272	$	625,398

Operating lease liabilities - current(1)	Current portion of operating lease liabilities	$	79,266	$	75,034
Operating lease liabilities - non-current	Operating lease liabilities	701,656		651,254
Finance lease liabilities - current(1)	Current portion of long-term debt	2,187		2,059
Finance lease liabilities - non-current	Long-term debt, net	12,299		10,847
Total lease liabilities		$	795,408	$	739,194

_____________

(1) Excludes all variable lease expense.

The components of lease expense were as follows:


(in thousands)	Consolidated Statements of Operations and Comprehensive Income Classification	THIRTEEN WEEKS ENDED				TWENTY-SIX WEEKS ENDED
		JUNE 28, 2026		JUNE 29, 2025		JUNE 28, 2026		JUNE 29, 2025
Operating lease expense	Other restaurant operating expenses Occupancy expenses Pre-opening expenses General and administrative expenses	$	23,876	$	20,914	$	46,851	$	40,544
Variable lease expense	Food and beverage costs Occupancy expenses General and administrative expenses	6,332		5,810		12,298		11,044
Finance lease expense:
Amortization of leased assets	Depreciation and amortization	514		225		1,007		418
Interest on lease liabilities	Interest expense	236		87		446		131
Total lease expense (1)		$	30,958	$	27,036	$	60,602	$	52,137

_____________

Supplemental cash flow information related to leases was as follows:


(in thousands)	TWENTY-SIX WEEKS ENDED
	JUNE 28, 2026		JUNE 29, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	37,737	$	26,067
Operating cash flows - finance leases	$	446	$	131
Financing cash flows - finance leases	$	781	$	112

Supplemental information related to leases was as follows:


	TWENTY-SIX WEEKS ENDED
	JUNE 28, 2026		JUNE 29, 2025
Weighted-average remaining lease term (in years)
Operating leases	12.5		13.0
Finance leases	11.8		13.6
Weighted-average discount rate (1)
Operating leases	7.7	%	7.7	%
Finance leases	6.5	%	6.2	%

____________

(1) Based on the Company’s incremental borrowing rate.