Leases

12 Months Ended

Aug. 31, 2022

Leases [Abstract]

Leases

Note 4—Leases

Lease related costs recognized in the statements of operations for fiscal years 2022 and 2021 are as follows:

		Fiscal Years Ended August 31,
		2022		2021
		(amounts in thousands)
Finance lease cost	Classification
Amortization of right-of-use assets	Depreciation and amortization expense	$	570	$	600
Interest on lease liabilities	Interest expense		41		84
Total finance lease cost		$	611	$	684
		Fiscal Years Ended August 31,
		2022		2021
		(amounts in thousands)
Operating lease cost	Classification
Operating lease cost	Occupancy and related expenses, and general and administrative expenses	$	7,859	$	6,280
Variable lease cost	Occupancy and related expenses, and general and administrative expenses		2,181		1,166
Total operating lease cost		$	10,040	$	7,446

Supplemental balance sheet information related to leases is as follows:

Operating Leases

	As of August 31,
	2022		2021
	(amounts in thousands)
Right-of-use assets	$	79,990	$	64,158
Lease liabilities – current	$	7,992	$	5,650
Lease liabilities – non-current		82,280		65,834
Total lease liabilities	$	90,272	$	71,484

Finance Lease Assets, net

	As of August 31,
	2022			2021
	(amounts in thousands)
Property and equipment	$	6,166		$	6,128
Accumulated depreciation		(3,348	)		(2,778	)
Total property and equipment – net	$	2,818		$	3,350

Finance Leases Liabilities

	As of August 31,
	2022		2021
	(amounts in thousands)
Finance lease – current	$	507	$	932
Finance lease – non-current		30		546
Total finance lease liabilities	$	537	$	1,478

	As of August 31,
	2022			2021
Weighted Average Remaining Lease Term (Years)
Operating leases		16.1			16.4
Finance leases		0.8			1.5
Weighted Average Discount Rate
Operating leases		6.5	%		6.5	%
Finance leases		4.7	%		4.5	%

Supplemental disclosures of cash flow information related to leases are as follows:
 

	Fiscal Years Ended August 31,
	2022		2021
	(amounts in thousands)
Operating cash flows paid for operating lease liabilities	$	6,484	$	4,647
Operating right-of-use assets obtained in exchange    for new operating lease liabilities	$	20,296	$	11,566

As of August 31, 2022, the Company has additional operating leases related to restaurants of which the Company has not yet taken possession of $45.7 million. These operating leases will commence in fiscal year 2023 with lease terms of 15 to 25 years. Subsequent to August 31, 2022, the Company entered into additional operating leases related to restaurants of which the Company has not yet taken possession. The lease liabilities associated with the leases are $9.3 million. The operating leases are expected to commence in fiscal years 2023 and 2024 with lease terms of 15 to 20 years.

Lease expense was $10.0 million and $7.2 million, including contingent rent expenses of $0.4 million and $0.1 million for the fiscal years ended August 31, 2022 and August 31, 2021, respectively.

Maturities of lease liabilities are as follows as of August 31, 2022:

	Operating Leases			Finance Leases
	(amounts in thousands)
2023	$	6,006		$	503
2024		7,956			36
2025		8,507			7
2026		8,438			—
2027		8,238			—
Thereafter		106,517			—
Total lease payments		145,662			546
Less: imputed interest		(55,390	)		(9	)
Present value of lease liabilities	$	90,272		$	537