Leases |
Note 4—Leases Lease related costs recognized in the statements of operations for fiscal years 2022 and 2021 are as follows:
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Fiscal Years Ended August 31, |
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2022 |
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2021 |
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(amounts in thousands) |
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Finance lease cost |
Classification |
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Amortization of right-of-use assets |
Depreciation and amortization expense |
$ |
570 |
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$ |
600 |
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Interest on lease liabilities |
Interest expense |
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41 |
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|
84 |
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Total finance lease cost |
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$ |
611 |
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$ |
684 |
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Fiscal Years Ended August 31, |
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2022 |
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2021 |
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(amounts in thousands) |
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Operating lease cost |
Classification |
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Operating lease cost |
Occupancy and related expenses, and general and administrative expenses |
$ |
7,859 |
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$ |
6,280 |
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Variable lease cost |
Occupancy and related expenses, and general and administrative expenses |
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2,181 |
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|
1,166 |
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Total operating lease cost |
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$ |
10,040 |
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$ |
7,446 |
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Supplemental balance sheet information related to leases is as follows: Operating Leases
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As of August 31, |
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2022 |
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2021 |
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(amounts in thousands) |
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Right-of-use assets |
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$ |
79,990 |
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$ |
64,158 |
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Lease liabilities – current |
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$ |
7,992 |
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$ |
5,650 |
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Lease liabilities – non-current |
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82,280 |
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|
65,834 |
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Total lease liabilities |
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$ |
90,272 |
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$ |
71,484 |
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Finance Lease Assets, net
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As of August 31, |
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2022 |
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2021 |
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(amounts in thousands) |
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Property and equipment |
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$ |
6,166 |
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$ |
6,128 |
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Accumulated depreciation |
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(3,348 |
) |
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(2,778 |
) |
Total property and equipment – net |
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$ |
2,818 |
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$ |
3,350 |
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Finance Leases Liabilities
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As of August 31, |
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2022 |
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2021 |
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(amounts in thousands) |
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Finance lease – current |
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$ |
507 |
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$ |
932 |
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Finance lease – non-current |
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|
30 |
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|
546 |
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Total finance lease liabilities |
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$ |
537 |
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$ |
1,478 |
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As of August 31, |
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2022 |
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2021 |
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Weighted Average Remaining Lease Term (Years) |
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Operating leases |
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16.1 |
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16.4 |
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Finance leases |
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0.8 |
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1.5 |
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Weighted Average Discount Rate |
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Operating leases |
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6.5 |
% |
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6.5 |
% |
Finance leases |
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4.7 |
% |
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4.5 |
% |
Supplemental disclosures of cash flow information related to leases are as follows:
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Fiscal Years Ended August 31, |
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2022 |
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2021 |
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(amounts in thousands) |
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Operating cash flows paid for operating lease liabilities |
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$ |
6,484 |
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$ |
4,647 |
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Operating right-of-use assets obtained in exchange for new operating lease liabilities |
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$ |
20,296 |
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$ |
11,566 |
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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 $0.1 million for the fiscal years ended August 31, 2022 and August 31, 2021, respectively. Maturities of lease liabilities are as follows as of August 31, 2022:
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Operating Leases |
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Finance Leases |
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(amounts in thousands) |
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2023 |
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$ |
6,006 |
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$ |
503 |
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2024 |
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|
7,956 |
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36 |
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2025 |
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8,507 |
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7 |
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2026 |
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8,438 |
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— |
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2027 |
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8,238 |
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— |
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Thereafter |
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106,517 |
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— |
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Total lease payments |
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145,662 |
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|
546 |
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Less: imputed interest |
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(55,390 |
) |
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(9 |
) |
Present value of lease liabilities |
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$ |
90,272 |
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$ |
537 |
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