LEASES

6 Months Ended

Jul. 01, 2026

A summary of operating and finance right-of-use assets and lease liabilities were as follows:


	Classification	July 1 2026		December 31 2025
Operating leases	Operating lease assets	$	551,687	$	507,253
Finance leases	Property and equipment, net	14,218		15,056
Total right-of-use assets		$	565,905	$	522,309




Operating leases:
	Operating lease liabilities, current	$	67,164	$	63,553
	Long-term operating lease liabilities	621,756		575,138
Finance leases:
	Other current liabilities	6,633		5,959
	Other long-term liabilities	8,278		9,745
Total lease liabilities		$	703,831	$	654,395

The components of lease expense were as follows:


			Thirteen Weeks Ended				Twenty-Six Weeks Ended
		Classification	July 1 2026		June 25 2025		July 1 2026		June 25 2025
Operating lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	$	25,937	$	21,576	$	50,624	$	42,250
Finance lease cost:
	Amortization of right-of-use assets	Depreciation and amortization expense	1,683		1,397		3,306		2,751
	Interest on lease liabilities	Interest expense	212		231		434		466
Variable lease cost		Occupancy and related expenses Pre-opening costs General and administrative expenses	6,779		5,932		13,210		11,535
Short-term lease cost		Occupancy and related expenses	154		163		306		310
Total lease cost			$	34,765	$	29,299	$	67,880	$	57,312

As of July 1, 2026, future minimum lease payments for operating and finance leases consisted of the following:


	Operating Leases		Finance Leases
2026(1)	$	35,696	$	3,702
2027	107,912		7,011
2028	113,591		4,017
2029	106,635		662
2030	94,255		351
Thereafter	430,323		174
Total minimum payments	888,412		15,917
Less: imputed interest	218,587		1,006
Total lease liabilities	$	669,825	$	14,911

(1)Operating leases are net of certain tenant allowance receivables that were reclassified to Other current assets as of July 1, 2026.

As of July 1, 2026, the Company had additional operating lease commitments of $184,053 for non-cancelable leases without a possession date, which commence in 2026 or later. The terms of these lease commitments are materially consistent with leases recognized on the Condensed Consolidated Balance Sheets.

A summary of lease terms and discount rates for operating and finance leases were as follows:


		July 1 2026		December 31 2025
Weighted average remaining lease term (years):
	Operating leases	8.8		8.6
	Finance leases	2.4		2.8
Weighted average discount rate:
	Operating leases	6.3	%	6.3	%
	Finance leases	5.6	%	5.8	%

Supplemental cash flow information related to leases was as follows:


		Twenty-Six Weeks Ended
		July 1 2026		June 25 2025
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from operating leases	$	51,463	$	52,000
	Operating cash flows from finance leases	434		466
	Financing cash flows from finance leases	3,254		2,631
Right-of-use assets obtained in exchange for lease obligations:
	Operating leases	75,213		55,233
	Finance leases	2,688		6,292

LEASES