Other than locations where we own the underlying property, we lease our restaurant locations as well as our corporate office under various non-cancelable real estate lease agreements that expire on various dates through 2046. We evaluate whether we control the use of the asset, which is determined by assessing whether we obtain substantially all economic benefits from the use of the asset, and whether we have the right to direct the use of the asset. If these criteria are met and we have identified a lease, we account for the contract under the requirements of Accounting Standards Codification (“ASC”) Topic 842.

Upon taking possession of a leased asset, we determine its classification as an operating or finance lease. All of our real estate leases are classified as operating leases. We do not have any finance leases as of June 27, 2026. Generally, our real estate leases have initial terms ranging from 10 to 25 years and typically include renewal options. Renewal options are recognized as part of the ROU assets and lease liabilities if it is reasonably certain that at the date we enter into the lease we would exercise the options to extend the lease. Our real estate leases typically provide for fixed minimum rent payments and/or contingent rent payments based upon sales in excess of specified thresholds. When the achievement of such sales thresholds are deemed to be probable, variable lease expense is accrued in proportion to the sales recognized during the period. For operating leases that include rent holidays and rent escalation clauses, we recognize lease expense on a straight-line basis over the lease term from the date we take possession of the leased property. We record the straight-line lease expense and any contingent rent, if applicable, in occupancy expenses in the consolidated condensed statements of operations.

Many of our real estate leases also require us to pay real estate taxes, common area maintenance costs and other occupancy costs (“non-lease components”) which are included in occupancy related expenses in the consolidated condensed statements of operations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Subsequent to the end of the quarter, on July 15, 2026, the Company entered into an amendment to its Sequoia restaurant lease located in Washington, DC. The amendment provides for a two-year lease restructure period commencing April 1, 2026 and ending March 31, 2028 (the "Lease Restructure Term"), during which the Company will pay annual base rent of $1,350,000, payable in monthly installments of $112,500, in lieu of its obligations to pay base rent, percentage rent, its share of real estate taxes, and certain utility and miscellaneous billback charges otherwise required under the lease. During the Lease Restructure Term, the Company will also pay percentage rent equal to 10% of gross sales in excess of an annual breakpoint of $10,000,000. Upon expiration of the Lease Restructure Term, the contractual rent provisions of the existing lease will resume through the lease expiration date of November 30, 2034. The amendment also provides the landlord a termination right if the Company fails to achieve specified gross sales thresholds ($9,000,000 in the twelve months following the Lease Restructure Term and $10,000,000 in subsequent calendar years), exercisable upon not less than six months' prior written notice; the Company concluded that this provision did not change its assessment of the lease term as of the modification date.


	13 Weeks Ended				39 Weeks Ended
	June 27, 2026		June 28, 2025		June 27, 2026		June 28, 2025
	(In thousands)				(In thousands)
Operating lease expense - occupancy expenses (1)	$	3,233	$	3,289	$	9,700	$	9,964
Operating lease expense - general and administrative expenses	125		121		367		363
Variable lease expense - occupancy expenses	721		775		2,991		2,730
Total lease expense	$	4,079	$	4,185	$	13,058	$	13,057


	Operating Leases
Fiscal Year Ending	(In thousands)
October 3, 2026	$	2,834
October 2, 2027	11,146
September 30, 2028	11,232
September 29, 2029	11,117
September 28, 2030	10,823
Thereafter	57,041
Total future lease commitments	104,193
Less: imputed interest	(27,257)
Present value of lease liabilities	76,936
Less: Current maturities	(6,502)
Long-term portion	$	70,434