v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jun. 28, 2026
Income Tax Disclosure [Abstract]  
Schedule of (loss) income before income taxes
Total (loss) income before income taxes consists of:
Fiscal Year Ended
June 28, 2026June 29, 2025June 30, 2024
Loss before tax:
U.S.$(42,491)$38,364 $(115,505)
Foreign3,037 3,119 3,952 
Total (loss) income before tax$(39,454)$41,483 $(111,553)
Schedule of income tax (benefit) expense
Income tax (benefit) expense consists of the following:
Fiscal Year Ended
June 28, 2026June 29, 2025June 30, 2024
Current income tax provision:
Federal$— $— $369 
State and local5,308 4,225 4,892 
Foreign776 1,531 1,106 
Total current provision6,084 5,756 6,367 
Deferred income tax provision:
Federal(8,155)42,402 (23,156)
State and local(1,726)3,581 (11,554)
Foreign120 (234)371 
Total deferred provision(9,761)45,749 (34,339)
Total income tax (benefit) expense$(3,677)$51,505 $(27,972)
Schedule of effective income tax rate reconciliation The following table presents required disclosure pursuant to ASU 2023-09 and reconciles the U.S. federal statutory tax amount and rate to the Company’s actual global effective amount and rate for the year ended June 28, 2026:
Amount%
Income tax benefit at U.S. federal statutory rate$(8,285)21 %
State and local income tax, net of federal effect
Illinois1,370 (3)%
Maryland545 (1)%
Colorado474 (1)%
California(1,218)3 %
Other states1,220 (4)%
Total state and local income tax, net of federal effect2,391 (7)%
Nontaxable or nondeductible items
Business combination and asset acquisition items, including earnouts(7,147)18 %
Compensation limited by Section 162(m)1,294 (3)%
Section 45B FICA tip wage deduction disallowance928 (2)%
Other permanent differences840 (2)%
Total nontaxable or nondeductible items(4,085)10 %
Tax credits
Work opportunity tax credit(996)3 %
FICA tip credit(4,418)11 %
Total tax credits(5,414)14 %
Other 125 — %
Changes in valuation allowances — federal11,160 (28)%
Foreign tax effects247 (1)%
Effect of cross-border tax laws — GILTI133 — %
Effect of changes in tax laws or rates enacted in the current period51 — %
Income tax benefit and effective tax rate$(3,677)9 %
Prior period amounts reflect the disclosure requirements in effect before the Company's prospective adoption of ASU 2023-09 and have not been recast. The reconciliation of the income tax expense (benefit) for the fiscal years ended June 29, 2025 and June 30, 2024 is as follows:
Fiscal Year Ended
June 29, 2025June 30, 2024
Federal statutory rate$8,695 $(23,426)
State and local tax net of federal benefit6,858 (7,689)
Deferred tax asset valuation allowance56,236 — 
Business Combination and asset acquisition items, including earnouts(21,312)5,643 
Compensation limited by section 162(m) of the Internal Revenue Code2,134 2,242 
Other Permanent Differences1,053 1,015 
Foreign tax rate difference261 324 
Tax credit impact(3,148)(2,879)
Other728 (3,202)
Total income tax expense (benefit)$51,505 $(27,972)
Schedule of income taxes paid, net of refunds received Income taxes paid to any individual jurisdiction that represent 5% or more of total income taxes paid, net of refunds received, are presented separately.
Income Taxes Paid (Net of Refunds Received)% of Total Income Taxes Paid (Net of Refunds Received)
Illinois$2,732 27 %
Maryland916 9 %
New Jersey912 9 %
Florida713 7 %
Virginia711 7 %
Colorado618 6 %
California554 6 %
Other states2,411 24 %
Total Income Taxes Paid (Net of Refunds Received) by State9,567 96 %
Federal— — %
Foreign - Mexico409 4 %
Total Income Taxes Paid (Net of Refunds Received)$9,976 100 %
Schedule of the tax effects of temporary differences and carryforwards
The tax effects of temporary differences and carryforwards that give rise to significant components of deferred income tax assets and liabilities consist of:
June 28, 2026June 29, 2025
Deferred income tax assets:
Reserves not currently deductible$27,934 $26,296 
Finance lease liability271,905 348,048 
R&D Costs (Section 174)— 2,108 
Investment in partnership38,691 39,137 
Net operating loss, interest, and tax credit carryforwards151,792 109,352 
Subtotal490,322 524,941 
Less: Valuation allowance79,704 66,039 
Total net deferred income tax assets410,618 458,902 
Deferred income tax liabilities:
Property and equipment$121,446 $102,313 
ROU assets219,122 285,883 
R&D Costs (Section 174)2,111 — 
Favorable and unfavorable leases28 82 
Goodwill and intangibles10,126 7,139 
Total deferred income tax liabilities352,833 395,417 
Net deferred income tax asset (liabilities)$57,785 $63,485