v3.26.1
Lease Assets and Obligations
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Lease Assets and Obligations Lease Assets and Obligations
Lease obligations include the following.
Current portion of lease obligationsJune 30,
2026		December 31,
2025
Finance lease liabilities$1,110 $1,233 
Finance obligations3,977 4,486 
Operating lease liabilities7,049 8,227 
Total current portion of lease obligations$12,136 $13,946 
Long-term lease obligations
Finance lease liabilities$5,479 $6,157 
Finance obligations65,138 57,881 
Operating lease liabilities37,194 33,663 
Total long-term lease obligations$107,811 $97,701 
Nature of Leases
Steak n Shake and Western Sizzlin operate restaurants that are located on sites owned by us or leased from third parties. In addition, they own sites and lease sites from third parties that are leased and/or subleased to franchisees.
Lease Costs
A significant portion of our operating and finance lease portfolio includes restaurant locations. We recognize fixed lease expense for operating leases on a straight-line basis over the lease term. For finance leases, we recognize amortization expense on the right-of-use asset and interest expense on the lease liability over the lease term.
Total lease cost consists of the following.
Second QuarterFirst Six Months
2026202520262025
Finance lease costs:
Amortization of right-of-use assets$272 $226 $544 $439 
Interest on lease liabilities119 87 244 161 
Operating and variable lease costs2,935 2,862 5,754 5,798 
Sublease income(3,183)(2,512)(6,262)(5,120)
Total lease costs$143 $663 $280 $1,278 
Supplemental cash flow information related to leases is as follows.
First Six Months
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases$721 $625 
Operating cash flows from finance leases$244 $161 
Operating cash flows from operating leases$6,385 $5,410 

Supplemental balance sheet information related to leases is as follows.
June 30,
2026		December 31,
2025
Finance leases:
Property and equipment, net$5,800 $6,420 
Weighted-average lease terms and discount rates are as follows.
June 30,
2026
Weighted-average remaining lease terms:
Finance leases13.91 years
Operating leases7.20 years
Weighted-average discount rates:
Finance leases7.0 %
Operating leases7.0 %
Maturities of lease liabilities as of June 30, 2026 are as follows.
YearOperating
Leases		Finance
Leases
Remainder of 2026$4,822 $733 
20279,805 1,414 
20288,722 1,003 
20297,382 749 
20306,273 615 
After 203019,173 6,064 
Total lease payments56,177 10,578 
Less interest11,934 3,989 
Total lease liabilities$44,243 $6,589 
Lease Income
The components of lease income recorded in restaurant operations are as follows.
Second QuarterFirst Six Months
2026202520262025
Operating lease income$4,383 $3,914 $8,773 $7,846 
Variable lease income2,601 2,288 4,784 4,188 
Total lease income$6,984 $6,202 $13,557 $12,034 

The following table displays the Company’s future minimum rental receipts for non-cancelable leases and subleases as of June 30, 2026. Franchise partner leases and subleases are short-term leases and have been excluded from the table.
Operating Leases
YearSubleasesOwned Properties
Remainder of 2026$331 $346 
2027622 704 
2028424 715 
2029338 730 
2030338 740 
After 202919 3,082 
Total future minimum receipts$2,072 $6,317 
Lease Assets and Obligations Lease Assets and Obligations
Lease obligations include the following.
Current portion of lease obligationsJune 30,
2026		December 31,
2025
Finance lease liabilities$1,110 $1,233 
Finance obligations3,977 4,486 
Operating lease liabilities7,049 8,227 
Total current portion of lease obligations$12,136 $13,946 
Long-term lease obligations
Finance lease liabilities$5,479 $6,157 
Finance obligations65,138 57,881 
Operating lease liabilities37,194 33,663 
Total long-term lease obligations$107,811 $97,701 
Nature of Leases
Steak n Shake and Western Sizzlin operate restaurants that are located on sites owned by us or leased from third parties. In addition, they own sites and lease sites from third parties that are leased and/or subleased to franchisees.
Lease Costs
A significant portion of our operating and finance lease portfolio includes restaurant locations. We recognize fixed lease expense for operating leases on a straight-line basis over the lease term. For finance leases, we recognize amortization expense on the right-of-use asset and interest expense on the lease liability over the lease term.
Total lease cost consists of the following.
Second QuarterFirst Six Months
2026202520262025
Finance lease costs:
Amortization of right-of-use assets$272 $226 $544 $439 
Interest on lease liabilities119 87 244 161 
Operating and variable lease costs2,935 2,862 5,754 5,798 
Sublease income(3,183)(2,512)(6,262)(5,120)
Total lease costs$143 $663 $280 $1,278 
Supplemental cash flow information related to leases is as follows.
First Six Months
20262025
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases$721 $625 
Operating cash flows from finance leases$244 $161 
Operating cash flows from operating leases$6,385 $5,410 

Supplemental balance sheet information related to leases is as follows.
June 30,
2026		December 31,
2025
Finance leases:
Property and equipment, net$5,800 $6,420 
Weighted-average lease terms and discount rates are as follows.
June 30,
2026
Weighted-average remaining lease terms:
Finance leases13.91 years
Operating leases7.20 years
Weighted-average discount rates:
Finance leases7.0 %
Operating leases7.0 %
Maturities of lease liabilities as of June 30, 2026 are as follows.
YearOperating
Leases		Finance
Leases
Remainder of 2026$4,822 $733 
20279,805 1,414 
20288,722 1,003 
20297,382 749 
20306,273 615 
After 203019,173 6,064 
Total lease payments56,177 10,578 
Less interest11,934 3,989 
Total lease liabilities$44,243 $6,589 
Lease Income
The components of lease income recorded in restaurant operations are as follows.
Second QuarterFirst Six Months
2026202520262025
Operating lease income$4,383 $3,914 $8,773 $7,846 
Variable lease income2,601 2,288 4,784 4,188 
Total lease income$6,984 $6,202 $13,557 $12,034 

The following table displays the Company’s future minimum rental receipts for non-cancelable leases and subleases as of June 30, 2026. Franchise partner leases and subleases are short-term leases and have been excluded from the table.
Operating Leases
YearSubleasesOwned Properties
Remainder of 2026$331 $346 
2027622 704 
2028424 715 
2029338 730 
2030338 740 
After 202919 3,082 
Total future minimum receipts$2,072 $6,317