v3.26.3
Restaurant Transactions
 9 Months Ended
Sep. 26, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Restaurant Transactions Restaurant Transactions
The Company acquired thirteen existing restaurants from two franchisees during the thirty-nine weeks ended September 26, 2026 and three existing restaurants from a franchisee during the thirty-nine weeks ended September 27, 2025. None of these acquisitions were individually significant to our consolidated financial statements. Accordingly, the preliminary purchase price allocations have been presented on an aggregated basis. The total purchase prices are reflected in the table below and were all funded by cash flows from operations.

The following table summarizes the allocations of the purchase price to the estimated fair value of assets acquired and liabilities assumed at the date of the acquisition (in thousands):
Purchase Price Allocation
September 26,
2026		September 27,
2025
Working capital$142 $36 
Property and equipment785 102 
Leasehold improvements1,666 — 
Reacquired franchise rights10,370 4,590 
Operating lease right-of-use assets2,602 — 
Goodwill18,775 4,493 
Operating lease liabilities(2,237)— 
Other liabilities(101)— 
Total purchase price$32,002 $9,221 
The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill and is attributable to the benefits expected as a result of the acquisition, including sales and unit growth opportunities. All of the goodwill from the acquisitions is expected to be deductible for federal income tax purposes. The purchase price allocation remains preliminary for the 2026 acquisitions and reflects management’s current estimates, including preliminary work performed by third-party valuation specialists, as applicable. The Company is continuing to obtain information necessary to finalize the fair values of assets acquired and liabilities assumed during the measurement period.

Pro forma financial information of the combined entities is not presented due to the immaterial impact of the financial results of the acquisition on our consolidated financial statements. Additionally, post-acquisition revenue and earnings of the acquired stores are not material in the current period.

The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date is based on significant inputs not observed in the market and thus represents a Level 3 fair value measurement. Fair value measurements for reacquired franchise rights were determined using the income approach. Fair value measurements for property and equipment and other tangible assets and liabilities were determined using the cost approach.