v3.26.1
Income Taxes
 6 Months Ended
Jun. 28, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
THIRTEEN WEEKS ENDEDTWENTY-SIX WEEKS ENDED
(dollars in thousands)JUNE 28, 2026JUNE 29, 2025JUNE 28, 2026JUNE 29, 2025
Income before benefit for income taxes$27,122 $18,951 $73,813 $64,995 
Benefit for income taxes$(6,672)$(8,748)$(16,963)$(7,845)
Effective income tax rate(24.6)%(46.2)%(23.0)%(12.1)%

In the U.S., a restaurant company employer may claim a credit against its federal income taxes for FICA taxes paid on certain tipped wages (the “FICA Tax Credits”). The level of FICA Tax Credits is primarily driven by U.S. Restaurant sales and is not impacted by costs incurred that may reduce Income before benefit for income taxes.

For the thirteen and twenty-six weeks ended June 28, 2026 and June 29, 2025, the Benefit for income taxes includes the benefit of FICA Tax Credits on certain tipped wages relative to forecasted full-year Income before benefit for income taxes.

The Benefit for income taxes for the thirteen weeks ended June 28, 2026 is lower than the thirteen weeks ended June 29, 2025 due to the impact of changes to the estimate of forecasted annual Income before benefit for income taxes relative to the prior quarter and the benefit of FICA Tax Credits for the thirteen weeks ended June 29, 2025.

The Benefit for income taxes for the twenty-six weeks ended June 28, 2026 is higher than the twenty-six weeks ended June 29, 2025, despite higher Income before benefit for income taxes, primarily due to lower forecasted full-year Income before benefit for income taxes in 2026 compared to 2025, which increased the relative benefit of the FICA Tax Credits.
The effective income tax rate for the thirteen and twenty-six weeks ended June 28, 2026 and June 29, 2025 was lower than the Company’s blended federal and state statutory rate of approximately 26% primarily due to the benefit of the FICA Tax Credits.

The following table is a summary of cash paid for income taxes for the periods indicated:
TWENTY-SIX WEEKS ENDED
(dollars in thousands)JUNE 28, 2026JUNE 29, 2025
Cash paid for income taxes, net of refunds (1)$4,353 $22,288 
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(1)The twenty-six weeks ended June 29, 2025 includes approximately $14.1 million of withholding taxes related to the first installment of the Brazil Sale Transaction.