6. Leases

Lease costs included on the Consolidated Statements of Operations consisted of the following (in thousands):

 

 

 

Fiscal Year

 

 

 

2025

 

 

2024

 

 

2023

 

Lease cost

 

$

59,104

 

 

$

57,836

 

 

$

59,268

 

Variable lease cost

 

 

3,770

 

 

 

3,567

 

 

 

3,864

 

Total lease costs

 

$

62,874

 

 

$

61,403

 

 

$

63,132

 

 

Weighted-average lease term and discount rate were as follows:

 

 

 

December 30, 2025

 

December 31, 2024

Weighted-average remaining lease term

 

9.6 Years

 

10.3 Years

Weighted-average discount rate

 

5.9

 

5.9

 

Operating lease obligation maturities as of December 30, 2025, were as follows (in thousands):

 

2026

 

$

66,527

 

2027

 

 

65,120

 

2028

 

 

62,322

 

2029

 

 

56,731

 

2030

 

 

49,240

 

Thereafter

 

 

246,888

 

Total lease payments

 

 

546,828

 

Less: imputed interest

 

 

(141,070

)

Present value of operating lease obligations

 

$

405,758

 

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2023
2021Feb 25, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.