XML 24 R13.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Restaurant Impairments, Closure Costs and Asset Disposals
 3 Months Ended
Apr. 02, 2024
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):
Fiscal Quarter Ended
April 2,
2024		April 4,
2023
Restaurant impairments (1)
$171 $86 
Closure costs (1)
(156)558 
Loss on disposal of assets and other1,214 925 
$1,229 $1,569 
_____________________________
(1)Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed. Closure costs in the first quarter of 2024 include the impact of lease remeasurements related to held for sale accounting for the six Oregon restaurants sold to a franchisee in April of 2024.

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 and the right-of-use asset based on a discounted cash flow analysis utilizing market lease rates.

There were no impairment charges for fixed assets in the first quarters of 2024 and 2023. In the first quarter of 2024, the Company wrote down lease related assets for one restaurant. All periods include ongoing equipment costs for restaurants previously impaired.

The Company closed two restaurants during both the first quarters of 2024 and 2023. Both periods included ongoing expenses from restaurant closures in prior years. These closure costs were offset by gains from lease remeasurement of $0.4 million in the first quarter of 2024 and $0.3 million in the first quarter of 2023.

Both periods include asset disposals in the normal course of business and sublease expense related to leases for which the Company remains obligated in connection with the divestiture of company-owned restaurants in previous years.