v3.26.1
Leases
 6 Months Ended
Jun. 28, 2026
Leases [Abstract]  
Leases Leases
The Company recognizes leases in its condensed consolidated balance sheets as a right-of-use ("ROU") asset and a lease liability. The Company has operating leases for its retail stores, distribution centers, corporate headquarters, and certain equipment under operating and finance leases that expire at various dates through 2041. Some of the leases include options to extend the lease term for up to 20 years. The Company's leases do not have any residual value guarantees or any restrictions or covenants imposed by the leases.
At June 28, 2026, the Company had 19 non-cancellable leases for retail stores and one non-cancellable lease for a regional distribution center of which none had commenced. The initial terms of these leases range from ten to fifteen years
with options to extend for up to an additional twenty years. Upon lease commencement, the ROU asset and lease liability will be determined and recognized in the Company's condensed consolidated balance sheets. Lease liabilities at June 28, 2026 exclude undiscounted future lease payments of approximately $258.6 million associated with these leases.
The following table summarizes finance and operating lease assets and liabilities recognized in the Company's condensed consolidated balance sheets at June 28, 2026, and December 28, 2025:
(in thousands)ClassificationJune 28,
2026		December 28, 2025
Assets
Finance leasesProperty and equipment, net$79,217 $48,755 
Operating leasesOperating lease right-of-use assets661,362 641,529 
Total lease assets$740,579 $690,284 
Liabilities
Current
Finance leasesFinance lease liabilities, current portion$14,158 $15,201 
Operating leasesOperating lease liabilities, current portion106,446 100,563 
Noncurrent
Finance leasesFinance lease liabilities, noncurrent portion72,043 44,254 
Operating leasesOperating lease liabilities, noncurrent portion701,052 678,800 
Total lease liabilities$893,699 $838,818 
The following table summarizes lease expense recognized in the Company's condensed consolidated statements of operations and comprehensive income for the three and six-month fiscal periods ended June 28, 2026 and June 29, 2025:
Three-Month Fiscal Period EndedSix-Month Fiscal Period Ended
(in thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Operating lease cost
Fixed$38,348 $33,827 $75,673 $66,842 
Variable162 186 343 335 
Finance lease cost
Amortization of assets3,693 3,134 6,834 5,499 
Interest on lease liabilities1,242 854 2,117 1,432 
Short-term lease cost434 551 1,250 776 
Total lease expense$43,879 $38,552 $86,217 $74,884 
Supplemental cash flow information related to leases is as follows:
Six-Month Fiscal Period Ended
(in thousands)June 28, 2026June 29, 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
$80,539 $72,208 
Operating cash flows from finance leases
2,117 1,432 
Financing cash flows from finance leases
10,551 5,487 
Right-of-use assets obtained in exchange for lease obligations
Finance leases
37,133 22,441 
Operating leases
56,191 63,999 
The weighted average remaining lease term and weighted average discount rate for finance and operating leases at June 28, 2026, and June 29, 2025, were:
June 28, 2026June 29, 2025
Weighted average remaining lease term (in years)
Finance leases5.54.8
Operating leases7.57.0
Weighted average discount rate
Finance leases6.1%5.8%
Operating leases8.6%8.8%
The following table summarizes the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancellable leases with terms of more than one year that are recognized in the Company's condensed consolidated balance sheet at June 28, 2026:
(in thousands)Operating LeasesFinance Leases
Remainder of 2026$85,108 $9,869 
2027170,738 19,220 
2028162,187 17,579 
2029144,373 16,543 
2030125,927 15,856 
2031105,056 8,877 
Thereafter308,989 14,297 
Total undiscounted future minimum$1,102,378 $102,241 
Less: Amount representing interest294,880 16,040 
Total present value of lease obligations$807,498 $86,201 
Leases Leases
The Company recognizes leases in its condensed consolidated balance sheets as a right-of-use ("ROU") asset and a lease liability. The Company has operating leases for its retail stores, distribution centers, corporate headquarters, and certain equipment under operating and finance leases that expire at various dates through 2041. Some of the leases include options to extend the lease term for up to 20 years. The Company's leases do not have any residual value guarantees or any restrictions or covenants imposed by the leases.
At June 28, 2026, the Company had 19 non-cancellable leases for retail stores and one non-cancellable lease for a regional distribution center of which none had commenced. The initial terms of these leases range from ten to fifteen years
with options to extend for up to an additional twenty years. Upon lease commencement, the ROU asset and lease liability will be determined and recognized in the Company's condensed consolidated balance sheets. Lease liabilities at June 28, 2026 exclude undiscounted future lease payments of approximately $258.6 million associated with these leases.
The following table summarizes finance and operating lease assets and liabilities recognized in the Company's condensed consolidated balance sheets at June 28, 2026, and December 28, 2025:
(in thousands)ClassificationJune 28,
2026		December 28, 2025
Assets
Finance leasesProperty and equipment, net$79,217 $48,755 
Operating leasesOperating lease right-of-use assets661,362 641,529 
Total lease assets$740,579 $690,284 
Liabilities
Current
Finance leasesFinance lease liabilities, current portion$14,158 $15,201 
Operating leasesOperating lease liabilities, current portion106,446 100,563 
Noncurrent
Finance leasesFinance lease liabilities, noncurrent portion72,043 44,254 
Operating leasesOperating lease liabilities, noncurrent portion701,052 678,800 
Total lease liabilities$893,699 $838,818 
The following table summarizes lease expense recognized in the Company's condensed consolidated statements of operations and comprehensive income for the three and six-month fiscal periods ended June 28, 2026 and June 29, 2025:
Three-Month Fiscal Period EndedSix-Month Fiscal Period Ended
(in thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Operating lease cost
Fixed$38,348 $33,827 $75,673 $66,842 
Variable162 186 343 335 
Finance lease cost
Amortization of assets3,693 3,134 6,834 5,499 
Interest on lease liabilities1,242 854 2,117 1,432 
Short-term lease cost434 551 1,250 776 
Total lease expense$43,879 $38,552 $86,217 $74,884 
Supplemental cash flow information related to leases is as follows:
Six-Month Fiscal Period Ended
(in thousands)June 28, 2026June 29, 2025
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
$80,539 $72,208 
Operating cash flows from finance leases
2,117 1,432 
Financing cash flows from finance leases
10,551 5,487 
Right-of-use assets obtained in exchange for lease obligations
Finance leases
37,133 22,441 
Operating leases
56,191 63,999 
The weighted average remaining lease term and weighted average discount rate for finance and operating leases at June 28, 2026, and June 29, 2025, were:
June 28, 2026June 29, 2025
Weighted average remaining lease term (in years)
Finance leases5.54.8
Operating leases7.57.0
Weighted average discount rate
Finance leases6.1%5.8%
Operating leases8.6%8.8%
The following table summarizes the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancellable leases with terms of more than one year that are recognized in the Company's condensed consolidated balance sheet at June 28, 2026:
(in thousands)Operating LeasesFinance Leases
Remainder of 2026$85,108 $9,869 
2027170,738 19,220 
2028162,187 17,579 
2029144,373 16,543 
2030125,927 15,856 
2031105,056 8,877 
Thereafter308,989 14,297 
Total undiscounted future minimum$1,102,378 $102,241 
Less: Amount representing interest294,880 16,040 
Total present value of lease obligations$807,498 $86,201