LEASES (Tables)

6 Months Ended

Jul. 01, 2026

Schedule of lease cost

The following table presents the Company’s total lease cost, disaggregated by underlying asset (in thousands):


		Thirteen Weeks Ended
		July 1, 2026									June 25, 2025
		Property			Equipment						Property			Equipment
		Leases			Leases			Total			Leases			Leases			Total
Finance lease cost:
Amortization of right-of-use assets		$	19		$	92		$	111		$	19		$	29		$	48
Interest on lease liabilities			9			2			11			10			4			14
Operating lease cost:
Fixed rent cost			7,326			—			7,326			7,213			105			7,318
Short-term lease cost			—			1			1			—			7			7
Variable lease cost			221			257			478			163			336			499
Sublease income			(1,725)			—			(1,725)			(1,748)			—			(1,748)
Total lease cost		$	5,850		$	352		$	6,202		$	5,657		$	481		$	6,138


		Twenty-Six Weeks Ended
		July 1, 2026									June 25, 2025
		Property			Equipment						Property			Equipment
		Leases			Leases			Total			Leases			Leases			Total
Finance lease cost:
Amortization of right-of-use assets		$	36		$	113		$	149		$	38		$	59		$	97
Interest on lease liabilities			18			5			23			19			9			28
Operating lease cost:
Fixed rent cost			14,659			75			14,734			14,397			208			14,605
Short-term lease cost			—			4			4			—			35			35
Variable lease cost			324			694			1,018			302			670			972
Sublease income			(3,412)			—			(3,412)			(3,463)			—			(3,463)
Total lease cost		$	11,625		$	891		$	12,516		$	11,293		$	981		$	12,274

The following table presents the Company’s total lease cost on the condensed consolidated statements of income (in thousands):


		Thirteen Weeks Ended							Twenty-Six Weeks Ended
		July 1, 2026			June 25, 2025				July 1, 2026			June 25, 2025
Lease cost – Occupancy and other operating expenses		$	6,011		$	5,970			$	12,065		$	11,935
Lease cost – General & administrative			149			106				359			214
Lease cost – Depreciation and amortization			31			48				69			97
Lease cost – Interest expense			11			14				23			28
Total lease cost		$	6,202		$	6,138			$	12,516		$	12,274

During the twenty-six weeks ended July 1, 2026 and June 25, 2025, the Company had the following cash and non-cash activities associated with its leases (dollars in thousands):


		Twenty-Six Weeks Ended July 1, 2026									Twenty-Six Weeks Ended June 25, 2025
		Property			Equipment						Property			Equipment
		Leases			Leases			Total			Leases			Leases			Total
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases		$	14,549		$	219		$	14,768		$	14,504		$	186		$	14,690
Financing cash flows used for finance leases		$	50		$	43		$	93		$	47		$	67		$	114

Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets		$	9,194		$	(61)		$	9,133		$	7,070		$	15		$	7,085
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets		$	—		$	—		$	—		$	—		$	—		$	—

Derecognition of ROU assets due to terminations, impairment or modifications		$	179		$	—		$	179		$	—		$	—		$	—


Other Information
Weighted-average remaining years in lease term—finance leases			14.36			1.96						15.38			2.95
Weighted-average remaining years in lease term—operating leases			9.42			2.34						9.81			3.29
Weighted-average discount rate—finance leases			2.57	%		8.04	%					2.57	%		6.87	%
Weighted-average discount rate—operating leases			5.55	%		6.85	%					5.36	%		6.72	%

Schedule of Operating Leases


		Twenty-Six Weeks Ended July 1, 2026									Twenty-Six Weeks Ended June 25, 2025
		Property			Equipment						Property			Equipment
		Leases			Leases			Total			Leases			Leases			Total
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases		$	14,549		$	219		$	14,768		$	14,504		$	186		$	14,690
Financing cash flows used for finance leases		$	50		$	43		$	93		$	47		$	67		$	114

Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets		$	9,194		$	(61)		$	9,133		$	7,070		$	15		$	7,085
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets		$	—		$	—		$	—		$	—		$	—		$	—

Derecognition of ROU assets due to terminations, impairment or modifications		$	179		$	—		$	179		$	—		$	—		$	—


Other Information
Weighted-average remaining years in lease term—finance leases			14.36			1.96						15.38			2.95
Weighted-average remaining years in lease term—operating leases			9.42			2.34						9.81			3.29
Weighted-average discount rate—finance leases			2.57	%		8.04	%					2.57	%		6.87	%
Weighted-average discount rate—operating leases			5.55	%		6.85	%					5.36	%		6.72	%

Schedule of Financing Leases


		Twenty-Six Weeks Ended July 1, 2026									Twenty-Six Weeks Ended June 25, 2025
		Property			Equipment						Property			Equipment
		Leases			Leases			Total			Leases			Leases			Total
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases		$	14,549		$	219		$	14,768		$	14,504		$	186		$	14,690
Financing cash flows used for finance leases		$	50		$	43		$	93		$	47		$	67		$	114

Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets		$	9,194		$	(61)		$	9,133		$	7,070		$	15		$	7,085
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets		$	—		$	—		$	—		$	—		$	—		$	—

Derecognition of ROU assets due to terminations, impairment or modifications		$	179		$	—		$	179		$	—		$	—		$	—


Other Information
Weighted-average remaining years in lease term—finance leases			14.36			1.96						15.38			2.95
Weighted-average remaining years in lease term—operating leases			9.42			2.34						9.81			3.29
Weighted-average discount rate—finance leases			2.57	%		8.04	%					2.57	%		6.87	%
Weighted-average discount rate—operating leases			5.55	%		6.85	%					5.36	%		6.72	%