v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 28, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. These inputs are classified into the following hierarchy:

•Level 1 Inputs - Quoted prices for identical assets or liabilities in active markets.

•Level 2 Inputs - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

•Level 3 Inputs - Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation.
Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:
June 28,
2026		December 28,
2025
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value		Fair Value
Measurements
Financial assets
Cash equivalents$220,093 $220,093 $210,607 $210,607 Level 1
Financial liabilities (a)
Series 2025-1 Class A-2-I Notes447,750 441,034 450,000 447,075 Level 2
Series 2022-1 Class A-2-I Notes96,000 93,221 96,500 95,284 Level 2
Series 2022-1 Class A-2-II Notes380,134 360,671 382,134 371,625 Level 2
Series 2021-1 Class A-2-I Notes412,019 379,894 414,269 385,726 Level 2
Series 2021-1 Class A-2-II Notes617,280 542,509 620,530 553,699 Level 2
Series 2019-1 Class A-2-II Notes391,873 375,884 394,123 383,403 Level 2
Series 2018-1 Class A-2-II Notes429,224 419,301 431,599 421,630 Level 2
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(a)The fair values were based on quoted market prices in markets that are not considered active markets.

The carrying amounts of cash, accounts payable and accrued expenses approximate fair value due to the short-term nature of those items. The carrying amounts of accounts and notes receivable, net (both current and non-current) approximate fair value due to the effect of the related allowance for doubtful accounts. Our cash equivalents are the only financial assets measured and recorded at fair value on a recurring basis.
Non-Recurring Fair Value Measurements

Assets and liabilities remeasured to fair value on a non-recurring basis resulted in impairment that we have recorded to “Impairment of long-lived assets” in our condensed consolidated statements of operations.

Total impairment losses may reflect the impact of remeasuring long-lived assets held and used (including land, buildings, leasehold improvements, favorable lease assets and right-of-use assets) to fair value as a result of (1) the deterioration in operating performance of certain Company-operated restaurants and (2) the Company’s decision to lease and/or sublease the land and/or buildings to franchisees in connection with the sale or anticipated sale of restaurants, including any subsequent lease modifications. The fair values of long-lived assets held and used presented in the tables below represent the remaining carrying value and were estimated based on either discounted cash flows of future anticipated lease and sublease income or discounted cash flows of future anticipated Company-operated restaurant performance. Total impairment losses may also include the impact of remeasuring long-lived assets held for sale. The fair values of long-lived assets held for sale presented in the tables below represent the remaining carrying value and were estimated based on current market values. See Note 12 for further information on impairment of our long-lived assets.
Fair Value Measurements
June 28,
2026		Level 1Level 2Level 3
Held and used$2,229 $— $— $2,229 
Held for sale3,476 — — 3,476 
Total$5,705 $— $— $5,705 
Fair Value Measurements
December 28,
2025		Level 1Level 2Level 3
Held and used$1,367 $— $— $1,367 
Held for sale2,457 — — 2,457 
Total$3,824 $— $— $3,824