Leases (Tables)

12 Months Ended

Dec. 31, 2023

The Company’s leases have terms as follows:


						Average lease term
Domestic Company-owned restaurants						Five years, plus at least one renewal
UK Company-owned and franchise-owned restaurants						15 years
Domestic commissary locations						10 years, plus at least one renewal
Domestic and International tractors and trailers						Five to seven years
Domestic and International commissary and office equipment						Three to five years

Schedule of lease assets and liabilities

The following schedule details the total right-of-use assets and lease liabilities on the Consolidated Balance Sheets as of December 31, 2023 and December 25, 2022 (in thousands):


Leases	Classification	December 31, 2023		December 25, 2022
Assets
Finance lease assets, net	Finance lease right-of-use assets, net	$	31,740	$	24,941
Operating lease assets, net	Operating lease right-of-use assets	164,158		172,425
Total lease assets		$	195,898	$	197,366
Liabilities
Current finance lease liabilities	Current finance lease liabilities	$	9,029	$	6,850
Current operating lease liabilities	Current operating lease liabilities	24,076		23,418
Noncurrent finance lease liabilities	Long-term finance lease liabilities	24,144		19,022
Noncurrent operating lease liabilities	Long-term operating lease liabilities	151,050		160,905
Total lease liabilities		$	208,299	$	210,195

Schedule of components of lease expense

Lease costs for the years ended December 31, 2023, December 25, 2022 and December 26, 2021 were as follows:


(Dollars in thousands)	Year Ended
	December 31, 2023		December 25, 2022		December 26, 2021
Finance lease:
Amortization of right-of-use assets	$	8,949	$	5,704	$	4,980
Interest on lease liabilities	1,542		1,029		1,140
Operating lease:
Operating lease cost	41,514		42,815		43,072
Short-term lease cost	4,239		4,171		2,032
Variable lease cost	10,005		9,129		8,572
Total lease costs	66,249		62,848		59,796
Sublease income	(9,842)		(11,654)		(12,039)
Total lease costs, net of sublease income	$	56,407	$	51,194	$	47,757

Schedule of future minimum lease payments and sublease income under contractually-obligated leases

Future minimum lease payments under contractually-obligated leases and associated sublease income as of December 31, 2023 were as follows (in thousands):


Fiscal Year	Finance Lease Costs		Operating Lease Costs		Expected Sublease Income
2024	$	10,266	$	31,274	$	8,318
2025	8,616		35,153		7,949
2026	7,588		31,254		7,229
2027	5,550		25,418		6,565
2028	2,610		19,903		5,990
Thereafter	1,970		78,136		27,945
Total future minimum lease payments	36,600		221,138		63,996
Less imputed interest	(3,427)		(46,012)		—
Total present value of lease liabilities	$	33,173	$	175,126	$	63,996

Schedule of supplemental cash flow information

The following table presents supplemental cash flow information related to leases for the years ended December 31, 2023, December 25, 2022 and December 26, 2021:


(Dollars in thousands)	Year Ended
	December 31, 2023		December 25, 2022		December 26, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	1,542	$	1,029	$	1,140
Financing cash flows from finance leases	$	8,821	$	5,416	$	4,566
Operating cash flows from operating leases (a)	$	37,814	$	35,573	$	38,530
Right-of-use assets obtained in exchange for new finance lease liabilities	$	16,734	$	9,875	$	9,486
Right-of-use assets obtained in exchange for new operating lease liabilities	$	24,380	$	53,869	$	64,420
Cash received from sublease income	$	8,855	$	10,847	$	11,597

Weighted-average remaining lease term (in years):
Finance leases	4.30		4.43		4.51
Operating leases	7.81		8.44		8.30
Weighted-average discount rate:
Finance leases	4.87%		4.59%		5.08%
Operating leases	5.62%		5.63%		6.20%

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(a)Included within the change in Other assets and liabilities within the Consolidated Statements of Cash Flows offset by non-cash operating lease right-of-use asset amortization and lease liability accretion.