The following table summarizes charges incurred related to the Optimization Plan during the second quarter and first half of fiscal 2026 (amounts in thousands), which are included in Restructuring charges, net on the condensed consolidated statements of operations and comprehensive income (loss):


	13 Weeks Ended		26 Weeks Ended
	July 4, 2026		July 4, 2026
Cash restructuring charges:
Costs associated with the Lease Exits (1)	$	13,066	$	13,856
Costs associated with the Operator Agreement Terminations	1,133		2,742
Legal, professional and other costs	589		845
Total cash restructuring charges	14,788		17,443
Net non-cash restructuring charges (credits):

Non-cash bad debt expense (credit) associated with the Operator Agreement Terminations	(97)		15,439


Net write-off of right-of-use assets and lease liabilities	(8,607)		(8,607)
Other net non-cash restructuring charges (2)	(656)		(656)
Total net non-cash restructuring charges (credits)	(9,360)		$	6,176
Total restructuring charges, net	$	5,428	$	23,619

(1)Cash costs associated with the Lease Exits primarily include lease termination costs, costs to prepare the premises for surrender to the landlords and idle property costs, net of proceeds received for sales of assets.

(2)Other net non-cash restructuring charges include credits related to non-cash rent associated with the Lease Exits and loss on disposal of long-lived assets.

The following table summarizes the restructuring liability activity for the Optimization Plan during the first half of fiscal 2026 (amounts in thousands):


	Lease Termination Costs		Operator Agreement Termination Costs		Legal, Professional and Other Costs		Total
Balance at January 3, 2026	$	—	$	—	$	—	$	—
Cash restructuring charges	13,856		2,742		845		17,443
Cash payments	(12,632)		(2,742)		(292)		(15,666)
Balance at July 4, 2026	$	1,224	$	—	$	553	$	1,777

The following table summarizes charges incurred during the second quarter and first half of fiscal 2025 related to the Restructuring Plan, which are included in Restructuring charges, net on the condensed consolidated statements of operations and comprehensive income (loss) (amounts in thousands):


	13 Weeks Ended		26 Weeks Ended
	June 28, 2025		June 28, 2025
Cash restructuring charges:
Lease termination costs	$	5,019	$	34,112
Employee severance and benefit costs	—		1,532
Legal, professional and other costs	—		1,522
Total cash restructuring charges	5,019		37,166

Non-cash impairment and disposal of long-lived assets	6,138		7,866

Total restructuring charges	$	11,157	$	45,032