Restaurant Impairments, Closure Costs and Asset Disposals |
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| Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restaurant Impairments, Closure Costs and Asset Disposals | Restaurant Impairments, Closure Costs and Asset Disposals The following table presents restaurant impairments, closure costs and asset disposals (in thousands):
_____________________________ (1)Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed. Impairment is based on management’s current assessment of the expected future cash flows of a restaurant based on recent results and other specific market factors. Impairment expense is a Level 3 fair value measure and is determined by comparing the carrying value of restaurant assets to the estimated fair value of the restaurant assets at resale value, if any, and the right-of-use asset based on a discounted cash flow analysis utilizing market lease rates. The Company has identified a group of restaurants that the Company will seek to close on or before their next lease renewal dates, and are unlikely to recover the net book value of their assets. In the third quarter of 2026, the Company did not record any fixed asset impairment charges. In the third quarter of 2026, the Company wrote down lease related assets on seven restaurants. In the third quarter of 2025, the Company recorded fixed asset impairment charges on nine restaurants, and wrote down lease related assets on nine restaurants. The Company recorded fixed asset impairment charges on 11 restaurants, and wrote down lease related assets on 23 restaurants in the first three quarters of 2026. The Company recorded fixed asset impairment charges on 24 restaurants, and wrote down lease related assets on 20 restaurants in the first three quarters of 2025. All periods include ongoing equipment costs for restaurants previously impaired. The Company closed 12 restaurants during the third quarter of 2026 and had 34 restaurant closures in the first three quarters of 2026. The Company closed 15 restaurants in the third quarter of 2025 and had 24 restaurant closures in the first three quarters of 2025. Both periods included ongoing expenses from restaurant closures during the period and in prior years. Closure costs in the third quarter and first three quarters of 2026 were higher compared to the same periods in 2025 due to ongoing costs related to the increased number of closed restaurants. Additionally, closure costs in the third quarter and first three quarters of 2025 were offset by gains from lease asset remeasurements and the adjustments to liabilities as lease terminations occur resulting in net gains of $0.7 million in both the third quarter and first three quarters of 2025.
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