v3.24.3
Leases
 9 Months Ended
Sep. 29, 2024
Leases [Abstract]  
Leases, Company as Lessee Leases
Nature of Leases

The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns sites and leases sites from third parties, which it leases and/or subleases to franchisees. The Company also leases restaurant, office and transportation equipment. As of September 29, 2024, the nature of restaurants operated by the Company and its franchisees was as follows:
September 29,
2024
Company-operated restaurants:
Owned land and building154
Owned building and held long-term land leases145
Leased land and building112
Total Company-operated restaurants411
Franchisee-operated restaurants:
Company-owned properties leased to franchisees492
Company-leased properties subleased to franchisees1,161
Other franchisee-operated restaurants5,228
Total franchisee-operated restaurants6,881
Total Company-operated and franchisee-operated restaurants7,292
Company as Lessee

The components of lease cost are as follows:
Three Months EndedNine Months Ended
September 29,
2024		October 1,
2023		September 29,
2024		October 1,
2023
Finance lease cost:
Amortization of finance lease assets$4,779 $4,111 $13,448 $12,232 
Interest on finance lease liabilities10,921 10,664 32,278 32,157 
15,700 14,775 45,726 44,389 
Operating lease cost21,496 21,577 64,721 64,455 
Variable lease cost (a)17,087 16,889 50,940 50,489 
Short-term lease cost1,478 1,466 4,098 4,433 
Total operating lease cost (b)40,061 39,932 119,759 119,377 
Total lease cost$55,761 $54,707 $165,485 $163,766 
_______________

(a)Includes expenses for executory costs of $10,108 and $9,777 for the three months ended September 29, 2024 and October 1, 2023, respectively, and $30,362 and $29,797 for the nine months ended September 29, 2024 and October 1, 2023, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $32,197 and $31,824 for the three months ended September 29, 2024 and October 1, 2023, respectively, and $96,270 and $94,751 for the nine months ended September 29, 2024 and October 1, 2023, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,299 and $7,570 for the three months ended September 29, 2024 and October 1, 2023, respectively, and $22,089 and $22,981 for the nine months ended September 29, 2024 and October 1, 2023, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
Leases, Company as Lessor
Company as Lessor

The components of lease income are as follows:
Three Months EndedNine Months Ended
September 29,
2024		October 1,
2023		September 29,
2024		October 1,
2023
Sales-type and direct-financing leases:
Selling profit$67 $354 $139 $1,555 
Interest income (a)7,110 7,853 22,007 23,583 
Operating lease income41,882 40,567 126,329 123,352 
Variable lease income17,432 17,000 51,609 50,055 
Franchise rental income (b)$59,314 $57,567 $177,938 $173,407 
_______________

(a)Included in “Interest expense, net.”

(b)Includes sublease income of $43,698 and $42,545 recognized during the three months ended September 29, 2024 and October 1, 2023, respectively, and $131,530 and $128,457 recognized during the nine months ended September 29, 2024 and October 1, 2023, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,112 and $9,811 for the three months ended September 29, 2024 and October 1, 2023,
respectively, and $30,356 and $29,704 for the nine months ended September 29, 2024 and October 1, 2023, respectively.