Leases (Tables)
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3 Months Ended |
Mar. 31, 2024 |
Leases [Abstract] |
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Schedule of Gain (Loss) Recognized Upon Termination of Lease Contracts |
The right-of use assets, liabilities and gains/losses recognized upon termination of lease contracts were as follows (in thousands, except for number of leases terminated): | | | | | | | | | | | | | Fiscal Year Ended | | March 31, 2024 | | March 26, 2023 | Leases terminated | 1 | | | — | | Lease termination fees | $ | 200 | | | — | | Right-of-use assets derecognized upon lease termination | $ | 416 | | | — | | Lease liabilities derecognized upon lease termination | $ | 506 | | | — | | Gain (loss) recognized upon lease termination | $ | (110) | | | $ | — | |
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Schedule of Weighted Average Lease Terms and Discount Rates |
The weighted average operating lease term and discount rate were as follows: | | | | | | | | | | | | | | | March 31, 2024 | | March 26, 2023 | Weighted average remaining lease term (years) | 6.07 | | 6.54 | Weighted average discount rate | 9.28 | % | | 8.37 | % |
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Components of Lease Cost |
The components of lease cost were as follows, which are included in occupancy, general and administrative and franchise support, rent and marketing expense: | | | | | | | | | | | | | | | | | | | | | For the Quarter Ended | | | | | | March 31, 2024 | | March 26, 2023 | | | | | | | | | Operating lease cost | $ | 9,838 | | | $ | 9,842 | | | | | | | | | | Variable lease cost | 3,329 | | | 3,446 | | | | | | | | | | Short-term lease cost | 101 | | | 95 | | | | | | | | | | Total lease cost | $ | 13,268 | | | $ | 13,383 | | | | | | | | | |
Supplemental disclosures of cash flow information related to leases were as follows: | | | | | | | | | | | | | | | | | | | | | For the Quarter Ended | | | | | | March 31, 2024 | | March 26, 2023 | | | | | | | | | Operating cash flows rent paid for operating lease liabilities | $ | 10,748 | | | $ | 10,698 | | | | | | | | | | Operating right-of-use assets obtained in exchange for new operating lease liabilities | $ | 1,182 | | | $ | 2,883 | | | | | | | | | | Reduction in operating right-of-use assets due to lease modifications | $ | (676) | | | — | | | | | | | | | |
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Maturities of Lease Liabilities |
Maturities of lease liabilities were as follows as of March 31, 2024: | | | | | | | Operating Leases | Remainder of 2024 | $ | 28,264 | | 2025 | 39,830 | | 2026 | 35,855 | | 2027 | 30,235 | | 2028 | 23,764 | | 2029 | 17,988 | | Thereafter | 36,488 | | Total lease payments | 212,424 | | Less: imputed interest | (53,192) | | Present value of lease liabilities | $ | 159,232 | |
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Components of Lease Income |
The components of lease income were as follows (amount in thousands, except number of subleases): | | | | | | | | | | | | | | | | | For the Quarter Ended | | | | March 31, 2024 | | March 26, 2023 | | | | | Number of subleases | 33 | | | 8 | | | | | | | | | | | | | | Operating lease income | $ | 1,011 | | | $ | 120 | | | | | | Variable lease income | 365 | | | 14 | | | | | | Franchise rent income | $ | 1,376 | | | $ | 134 | | | | | |
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Maturities of Sublease Payments |
Future expected fixed sublease payments from franchisees to Potbelly were as follows at March 31, 2024: | | | | | | | Operating Leases | Remainder of 2024 | $ | 3,086 | | 2025 | 3,931 | | 2026 | 3,113 | | 2027 | 2,095 | | 2028 | 1,704 | | Thereafter | 3,687 | | Total sublease payments | $ | 17,616 | |
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