Leases (Tables)

6 Months Ended

Jun. 28, 2026

As of June 28, 2026, the nature of restaurants operated by the Company and its franchisees was as follows:


			June 28, 2026
Company-operated restaurants:
Owned land and building			154
Owned building and held long-term land leases			141
Leased land and building			135
Total Company-operated restaurants			430

Franchisee-operated restaurants:
Company-owned properties leased to franchisees			443
Company-leased properties subleased to franchisees			1,088
Other franchisee-operated restaurants			5,219
Total franchisee-operated restaurants			6,750
Total Company-operated and franchisee-operated restaurants			7,180

Lease, Cost

The components of lease cost are as follows:


	Three Months Ended				Six Months Ended
	June 28, 2026		June 29, 2025		June 28, 2026		June 29, 2025
Finance lease cost:
Amortization of finance lease assets	$	5,358	$	4,885	$	11,126	$	10,030
Interest on finance lease liabilities	11,615		10,865		23,257		21,742
	16,973		15,750		34,383		31,772
Operating lease cost	17,381		21,322		37,391		41,839
Variable lease cost (a)	16,570		17,269		32,479		33,482
Short-term lease cost	1,390		1,304		2,766		2,570
Total operating lease cost (b)	35,341		39,895		72,636		77,891
Total lease cost	$	52,314	$	55,645	$	107,019	$	109,663

_______________

(a)Includes expenses for executory costs of $10,297 and $10,578 for the three months ended June 28, 2026 and June 29, 2025, respectively, and $20,836 and $20,972 for the six months ended June 28, 2026 and June 29, 2025, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $27,953 and $32,569 for the three months ended June 28, 2026 and June 29, 2025, respectively, and $57,993 and $63,221 for the six months ended June 28, 2026 and June 29, 2025, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $6,917 and $6,946 for the three months ended June 28, 2026 and June 29, 2025, respectively, and $13,804 and $13,887 for the six months ended June 28, 2026 and June 29, 2025, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.

Lease, Income

The components of lease income are as follows:


	Three Months Ended				Six Months Ended
	June 28, 2026		June 29, 2025		June 28, 2026		June 29, 2025
Sales-type and direct-financing leases:
Selling profit	$	276	$	34	$	2,129	$	23
Interest income (a)	6,563		6,943		13,263		13,858

Operating lease income	36,038		42,467		78,689		84,888
Variable lease income	17,325		17,944		33,578		33,977
Franchise rental income (b)	$	53,363	$	60,411	$	112,267	$	118,865

_______________

(a)Included in “Interest expense, net.”

(b)Includes sublease income of $37,941 and $44,667 recognized during the three months ended June 28, 2026 and June 29, 2025, respectively, and $80,141 and $87,451 for the six months ended June 28, 2026 and June 29, 2025, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,356 and $10,512 for the three months ended June 28, 2026 and June 29, 2025, respectively, and $20,767 and $20,709 for the six months ended June 28, 2026 and June 29, 2025, respectively.