Leases (Tables)
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6 Months Ended |
Jul. 04, 2026 |
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| Leases [Abstract] |
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| Schedule of Right-of-Use Assets and Lease Liabilities |
Right-of-use (“ROU”) assets and lease liabilities balances were as follows (in thousands):
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July 4, 2026 |
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January 3, 2026 |
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Assets: |
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Operating lease right-of-use assets |
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$ |
1,474,434 |
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$ |
1,500,786 |
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Finance lease right-of-use assets |
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2,966 |
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3,394 |
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Total lease right-of-use assets |
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$ |
1,477,400 |
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$ |
1,504,180 |
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Liabilities—current: |
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Operating lease liabilities |
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$ |
162,938 |
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$ |
146,594 |
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Finance lease liabilities |
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|
1,048 |
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|
1,022 |
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Total current lease liabilities |
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163,986 |
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|
147,616 |
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Liabilities—long-term: |
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Operating lease liabilities |
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1,421,301 |
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1,447,524 |
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Finance lease liabilities |
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2,287 |
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|
2,741 |
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Total long-term lease liabilities |
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1,423,588 |
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|
1,450,265 |
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Total lease liabilities |
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$ |
1,587,574 |
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|
$ |
1,597,881 |
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| Schedule of Components of Lease Expense |
The components of lease expense were as follows (in thousands):
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Three Months Ended |
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Six Months Ended |
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July 4, 2026 |
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June 28, 2025 |
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July 4, 2026 |
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June 28, 2025 |
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Lease expense: |
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Operating lease expense |
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$ |
79,294 |
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$ |
74,492 |
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$ |
157,476 |
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$ |
147,582 |
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Finance lease expense: |
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Amortization of right-of-use assets |
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256 |
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|
331 |
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511 |
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|
681 |
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Interest on lease liabilities |
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73 |
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|
81 |
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151 |
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|
175 |
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Short-term lease expense |
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2,101 |
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3,223 |
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4,583 |
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|
5,998 |
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Variable lease expense |
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22,680 |
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18,901 |
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|
44,503 |
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|
36,871 |
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Total lease expense |
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$ |
104,404 |
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$ |
97,028 |
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$ |
207,224 |
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$ |
191,307 |
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| Schedule of Weighted Average Remaining Lease Term and Weighted Average Discount Rate |
The weighted average remaining lease term and the weighted average discount rate were as follows:
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July 4, 2026 |
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January 3, 2026 |
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Weighted average remaining lease term (in years) (Operating) |
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9 |
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9 |
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Weighted average remaining lease term (in years) (Finance) |
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4 |
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5 |
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Weighted average discount rate (Operating) |
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9.1 |
% |
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9.2 |
% |
Weighted average discount rate (Finance) |
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8.4 |
% |
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8.6 |
% |
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| Schedule of Maturity of Lease Liabilities |
The following table summarizes the maturity of lease liabilities as of July 4, 2026 (in thousands):
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Finance Leases |
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Operating Leases |
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Total Leases |
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Remainder of 2026 |
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$ |
645 |
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$ |
142,887 |
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$ |
143,532 |
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2027 |
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|
1,236 |
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|
304,187 |
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|
305,423 |
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2028 |
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|
709 |
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|
285,369 |
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|
286,078 |
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2029 |
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|
433 |
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|
265,748 |
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|
266,181 |
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2030 |
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|
403 |
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|
246,586 |
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|
246,989 |
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Thereafter |
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|
446 |
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1,072,372 |
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|
1,072,818 |
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Total lease payments |
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3,872 |
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2,317,149 |
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2,321,021 |
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Less imputed interest |
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|
537 |
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732,910 |
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|
733,447 |
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Present value of lease liabilities |
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|
3,335 |
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|
1,584,239 |
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|
1,587,574 |
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Less current portion of lease liabilities |
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|
1,048 |
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|
162,938 |
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163,986 |
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Long-term lease liabilities |
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$ |
2,287 |
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$ |
1,421,301 |
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$ |
1,423,588 |
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