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Leases (Tables)
3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
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
— 
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
$(110)$— 
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)6.076.54
Weighted average discount rate9.28 %8.37 %
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 cost3,329 3,446 
Short-term lease cost101 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)— 
Maturities of Lease Liabilities
Maturities of lease liabilities were as follows as of March 31, 2024:
Operating Leases
Remainder of 2024$28,264 
202539,830 
202635,855 
202730,235 
202823,764 
202917,988 
Thereafter36,488 
Total lease payments212,424 
Less: imputed interest(53,192)
Present value of lease liabilities$159,232 
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 subleases33 
Operating lease income$1,011 $120 
Variable lease income365 14 
Franchise rent income$1,376 $134 
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 
20253,931 
20263,113 
20272,095 
20281,704 
Thereafter3,687 
Total sublease payments$17,616