v3.26.3
Leases
 9 Months Ended
Sep. 26, 2026
Leases [Abstract]  
Finance Leases
Lessee
The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both 1) the right to obtain substantially all of the economic benefits from the use of the asset and 2) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2042. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees, nor material restrictive covenants.
The components of operating and finance lease costs for the thirteen and thirty-nine weeks ended September 26, 2026 and thirteen and thirty-nine weeks ended September 27, 2025 were as follows:
Thirteen Weeks Ended
September 26, 2026		Thirteen Weeks Ended
September 27, 2025		Thirty-nine Weeks Ended
September 26, 2026		Thirty-nine Weeks Ended
September 27, 2025
Operating lease costs$6,655 $5,921 $18,950 $17,275 
Short term lease costs1,563 774 3,563 2,079 
Variable lease costs70 367 1,724 1,653 
Finance lease costs:
Amortization of right of use assets1,755 1,536 4,950 4,216 
Interest on lease liabilities325 292 922 775 
Rent expense is recognized on a straight-line basis over the expected lease term. Rent expense totaled $8,289 and $24,238 in the thirteen and thirty-nine weeks ended September 26, 2026, respectively, and $7,062 and $21,007 in the thirteen and thirty-nine weeks ended September 27, 2025, respectively. Rent expense includes operating lease
costs as well as expenses for non-lease components such as common area maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles, and short-term rental expenses.
The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.
The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of September 26, 2026 and December 27, 2025:
September 26, 2026December 27, 2025
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted average remaining lease term7.613.944.844.00
Weighted average discount rate6.03 %5.53 %6.18 %5.82 %
Supplemental balance sheet information related to the Company's finance leases was as follows as of September 26, 2026 and December 27, 2025:
September 26, 2026December 27, 2025
Finance lease assets, net, included in property plant and equipment$22,981 $18,778 
Current portion of long-term debt6,682 5,599 
Long-term debt, less current portion16,738 13,619 
Total principal payable on finance leases$23,420 $19,218 
Supplemental cash flow information related to the Company's operating and finance leases was as follows for the thirty-nine weeks ended September 26, 2026 and thirty-nine weeks ended September 27, 2025:
Thirty-nine Weeks Ended
September 26, 2026		Thirty-nine Weeks Ended
September 27, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases$19,186 $16,631 
Operating cash outflow from finance leases904 742 
Financing cash outflow from finance leases4,963 4,156 
Maturities of our lease liabilities for all operating and finance leases are as follows as of September 26, 2026:
Operating LeasesFinance Leases
Remaining 2026
$9,145 $2,726 
2027
26,545 7,397 
2028
24,189 6,333 
2029
19,637 5,517 
2030
14,066 3,799 
Thereafter50,068 823 
Total future minimum rental commitments143,650 26,595 
Less - amounts representing interest(31,908)(3,175)
Present value of lease liabilities$111,742 $23,420 
In July 2025, the Company entered into one additional operating lease for a new property located in Forest Park, Ohio for the purpose of consolidating office, warehouse, and distribution in the Cincinnati area. Occupancy has not yet commenced and the estimated future minimum rental commitments for the Forest Park lease are approximately $4.5 million per year beginning in late summer 2027 and increasing 3.25% per year thereafter for 15 years.
In 2026, the Company entered into two additional finance leases for equipment to be used at the new Forest Park facility. The leases have not yet commenced. The future minimum rent payments for the equipment leases are approximately $11.5 million per year beginning in 2028 for seven year terms.
Lessor
The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.
Operating Leases
Lessee
The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both 1) the right to obtain substantially all of the economic benefits from the use of the asset and 2) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2042. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees, nor material restrictive covenants.
The components of operating and finance lease costs for the thirteen and thirty-nine weeks ended September 26, 2026 and thirteen and thirty-nine weeks ended September 27, 2025 were as follows:
Thirteen Weeks Ended
September 26, 2026		Thirteen Weeks Ended
September 27, 2025		Thirty-nine Weeks Ended
September 26, 2026		Thirty-nine Weeks Ended
September 27, 2025
Operating lease costs$6,655 $5,921 $18,950 $17,275 
Short term lease costs1,563 774 3,563 2,079 
Variable lease costs70 367 1,724 1,653 
Finance lease costs:
Amortization of right of use assets1,755 1,536 4,950 4,216 
Interest on lease liabilities325 292 922 775 
Rent expense is recognized on a straight-line basis over the expected lease term. Rent expense totaled $8,289 and $24,238 in the thirteen and thirty-nine weeks ended September 26, 2026, respectively, and $7,062 and $21,007 in the thirteen and thirty-nine weeks ended September 27, 2025, respectively. Rent expense includes operating lease
costs as well as expenses for non-lease components such as common area maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles, and short-term rental expenses.
The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.
The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of September 26, 2026 and December 27, 2025:
September 26, 2026December 27, 2025
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted average remaining lease term7.613.944.844.00
Weighted average discount rate6.03 %5.53 %6.18 %5.82 %
Supplemental balance sheet information related to the Company's finance leases was as follows as of September 26, 2026 and December 27, 2025:
September 26, 2026December 27, 2025
Finance lease assets, net, included in property plant and equipment$22,981 $18,778 
Current portion of long-term debt6,682 5,599 
Long-term debt, less current portion16,738 13,619 
Total principal payable on finance leases$23,420 $19,218 
Supplemental cash flow information related to the Company's operating and finance leases was as follows for the thirty-nine weeks ended September 26, 2026 and thirty-nine weeks ended September 27, 2025:
Thirty-nine Weeks Ended
September 26, 2026		Thirty-nine Weeks Ended
September 27, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases$19,186 $16,631 
Operating cash outflow from finance leases904 742 
Financing cash outflow from finance leases4,963 4,156 
Maturities of our lease liabilities for all operating and finance leases are as follows as of September 26, 2026:
Operating LeasesFinance Leases
Remaining 2026
$9,145 $2,726 
2027
26,545 7,397 
2028
24,189 6,333 
2029
19,637 5,517 
2030
14,066 3,799 
Thereafter50,068 823 
Total future minimum rental commitments143,650 26,595 
Less - amounts representing interest(31,908)(3,175)
Present value of lease liabilities$111,742 $23,420 
In July 2025, the Company entered into one additional operating lease for a new property located in Forest Park, Ohio for the purpose of consolidating office, warehouse, and distribution in the Cincinnati area. Occupancy has not yet commenced and the estimated future minimum rental commitments for the Forest Park lease are approximately $4.5 million per year beginning in late summer 2027 and increasing 3.25% per year thereafter for 15 years.
In 2026, the Company entered into two additional finance leases for equipment to be used at the new Forest Park facility. The leases have not yet commenced. The future minimum rent payments for the equipment leases are approximately $11.5 million per year beginning in 2028 for seven year terms.
Lessor
The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.