Leases (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| Leases [Abstract] |
|
| Schedule of lease terms |
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% |
______________________________ (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.
|