v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 26, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Assets and liabilities are classified using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:
Level 1 — Unadjusted quoted prices for identical instruments traded in active markets.
Level 2 — Observable market-based inputs or unobservable inputs corroborated by market data.
Level 3 — Unobservable inputs reflecting management’s estimates and assumptions.
The carrying values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their short-term nature. Certain assets are measured at fair value on a non-recurring basis using Level 3 inputs. The fair value of the Company’s preference share investment in the Company’s United Kingdom master franchisee, Lemon Pepper Holdings Ltd. (“LPH”), which is accounted for as a held-to-maturity debt security, was estimated using a discounted cash flow model that incorporates unobservable inputs, including expected cash flows, discount rates, and an assumed maturity term of approximately five years.
Based on this valuation approach, the estimated fair value of the preference share investment was determined at $100 million. The carrying value of the investment as of September 26, 2026 was $91.5 million, net of an allowance for credit losses of $5.5 million.
The carrying value and estimated fair value of debt and the investment in debt securities are summarized as follows (in thousands):
Fair Value
Hierarchy
September 26, 2026December 27, 2025
Carrying
Value
Fair Value
Carrying
Value
Fair Value
Securitized Financing Facility:
2020-1 Class A-2 Senior Secured Notes (1)
Level 2$472,800 $458,323 $472,800 $456,961 
2022-1 Class A-2 Senior Secured Notes (1)
Level 2$248,125 $234,711 $248,125 $240,061 
2024-1 Class A-2 Senior Secured Notes (1)
Level 2$500,000 $489,690 $500,000 $514,500 
Investment in preference shares of LPH (2)
Level 3$91,528 $100,079 $85,597 $87,482 
(1) The fair values of the 2020-1, 2022-1, and 2024-1 Class A-2 Senior Secured Notes were estimated using available market information.
(2) The fair value approximates discounted cash flows using current market rates for debt investments with similar maturities and credit risk. The preference shares are accounted for as held-to-maturity debt securities at amortized cost. Refer to Note 9 for additional information regarding the Company’s investments.
The fair value of the assets and liabilities of the Company that are required to be measured at fair value on a recurring basis were not significant at September 26, 2026 or December 27, 2025. The Company also measures certain non-financial assets (primarily long-lived assets, intangible assets, and goodwill) at fair value on a non-recurring basis in connection with its periodic evaluations of such assets for potential impairment.