v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Jun. 24, 2026
Income Tax Disclosure [Abstract]  
Income Before Income Taxes
Income before income taxes consists of the following:
Fiscal Years Ended
June 24, 2026June 25, 2025June 26, 2024
Domestic$579.2 $457.8 $161.8 
Foreign1.7 2.2 3.1 
Income before income taxes$580.9 $460.0 $164.9 
Provision For Income Taxes and Effective Tax Rate
The Provision for income taxes and effective tax rate consists of the following:
Fiscal Years Ended
June 24, 2026June 25, 2025June 26, 2024
Current income tax expenses:
Federal$30.4 $33.2 $17.5 
State31.2 30.6 12.3 
Foreign— 0.6 0.4 
Total current income tax expenses61.6 64.4 30.2 
Deferred income tax expenses (benefit):
Federal31.2 15.2 (18.2)
State0.7 (2.6)(2.5)
Foreign0.4 (0.1)0.1 
Total deferred income tax expenses (benefit)32.3 12.5 (20.6)
Provision for income taxes$93.9 $76.9 $9.6 
Effective tax rate 16.2 %16.7 %5.8 %
Reconciliation Between Reported Provision for Income Taxes And Amount Computed By Applying the Statutory Federal Income Tax Rate
A reconciliation between the reported Provision for income taxes and the amount computed by applying the statutory Federal income tax rate of 21.0% to Income before income taxes, for fiscal years 2026, 2025, and 2024, is as follows:
Fiscal Year Ended June 24, 2026
AmountPercentage
U.S federal statutory rate$122.0 21.0 %
Domestic federal
Tax credits
FICA
(57.8)(10.0)%
Other(5.0)(0.9)%
Nontaxable or nondeductible items
Executive compensation18.8 3.2 %
Deductions related to tax credits12.3 2.1 %
Other0.7 0.1 %
Change in valuation allowance(3.8)(0.6)%
Cross-border tax laws(1.6)(0.2)%
Excess tax benefits on share-based payments, before nondeductible items(21.3)(3.7)%
Domestic state and local income tax, net of Federal benefit(1)
24.8 4.3 %
Foreign tax effects
4.5 0.8 %
Worldwide change in unrecognized tax benefits0.3 0.1 %
Effective tax rate$93.9 16.2 %
(1)State taxes in California, Florida, Illinois, Texas, New Jersey, and New York made up the majority (greater than 50%) of the tax effect in this category.
Fiscal Years Ended
June 25, 2025June 26, 2024
Income tax expense at statutory rate$96.6 $34.6 
FICA and other tax credits(41.2)(34.2)
State income taxes, net of Federal benefit22.1 7.7 
Officers' compensation7.7 3.7 
Stock based compensation tax shortfall (windfall)(7.5)(1.2)
Other(0.8)(1.0)
Provision for income taxes$76.9 $9.6 
Income Taxes Paid, Net by Jurisdiction
Income taxes paid, net by jurisdiction for fiscal 2026 is as follows:
Fiscal Year Ended
June 24, 2026
Federal$28.8 
State
California5.6 
Other 27.1 
Foreign4.5 
Income taxes paid, net$66.0 
Deferred Income Tax Assets and Liabilities
The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:
June 24, 2026June 25, 2025
Deferred income tax assets:
Lease liabilities$553.8 $510.0 
Gift cards6.3 7.3 
Insurance reserves26.6 21.3 
Stock-based compensation9.1 13.1 
Federal credit carryover5.6 26.7 
Employee benefit plans0.2 0.1 
Net operating losses2.8 3.7 
State credit carryover— 0.2 
Restructure charges and impairments1.6 3.8 
Depreciation and capitalized interest on property and equipment18.4 31.3 
Other, net11.7 13.9 
Less: Valuation allowance(1.6)(6.3)
Total deferred income tax assets634.5 625.1 
Deferred income tax liabilities:
Lease assets524.3 482.2 
Goodwill and other amortization23.6 23.0 
Prepaid expenses17.0 17.9 
Other, net0.5 0.6 
Total deferred income tax liabilities565.4 523.7 
Deferred income taxes, net$69.1 $101.4 
Reconciliation Of Unrecognized Tax Benefits
A reconciliation of unrecognized tax benefits are as follows:
June 24, 2026June 25, 2025
Balance at beginning of year$2.7 $2.9 
Additions based on tax positions related to the current year0.6 0.5 
Expiration of statute of limitations(0.2)(0.7)
Balance at end of year$3.1 $2.7