Leases
The components of net lease cost were as follows:
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| Fiscal Years Ended |
| December 26, 2025 | | December 27, 2024 | | December 29, 2023 | | |
| Operating lease cost | $ | 46,337 | | | $ | 40,782 | | | $ | 40,523 | | | |
| Finance lease cost: | | | | | | | |
| Amortization of right-of-use asset | 17,886 | | | 8,065 | | | 4,173 | | | |
| Interest expense on lease liabilities | 5,893 | | | 2,233 | | | 726 | | | |
| Total finance lease cost | $ | 23,779 | | | $ | 10,298 | | | $ | 4,899 | | | |
| Short-term lease cost | 12,081 | | | 14,052 | | | 12,535 | | | |
| Variable lease cost | 9,239 | | | 17,488 | | | 13,718 | | | |
| Sublease income | (1,973) | | | (1,160) | | | (1,970) | | | |
| Total lease cost, net | $ | 89,463 | | | $ | 81,460 | | | $ | 69,705 | | | |
The maturities of the Company’s lease liabilities for each of the next five fiscal years and thereafter at December 26, 2025 were as follows:
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| | | | | |
| Operating Leases | | Finance Leases |
| Related Party Real Estate | | Third-Party Real Estate | | Vehicles and Equipment | | Total | | Vehicles and Equipment |
| 2026 | $ | 725 | | | $ | 34,551 | | | $ | 5,122 | | | $ | 40,398 | | | $ | 26,774 | |
| 2027 | 752 | | | 31,933 | | | 4,177 | | | 36,862 | | | 25,492 | |
| 2028 | 580 | | | 29,715 | | | 3,485 | | | 33,780 | | | 24,584 | |
| 2029 | — | | | 29,695 | | | 2,521 | | | 32,216 | | | 22,388 | |
| 2030 | — | | | 28,386 | | | 1,795 | | | 30,181 | | | 17,734 | |
| Thereafter | — | | | 146,249 | | | 572 | | | 146,821 | | | 12,303 | |
| Total | $ | 2,057 | | | $ | 300,529 | | | $ | 17,672 | | | $ | 320,258 | | | $ | 129,275 | |
| Less imputed interest | | | | | | | (93,884) | | | (20,824) | |
| Present value of lease obligations | | | | | | $ | 226,374 | | | $ | 108,451 | |
Supplemental balance sheet information related to finance leases was as follows:
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| Balance Sheet Location | December 26, 2025 | | December 27, 2024 |
| Short-term finance lease liabilities | Current portion of long-term debt | $ | 19,554 | | | $ | 10,040 | |
| Long-term finance lease liabilities | Long-term debt, net of current portion | $ | 88,897 | | | $ | 37,633 | |
At December 26, 2025, the weighted-average lease term for operating and finance leases was 9.6 years and 5.2 years, respectively. At December 26, 2025, the weighted-average discount rate for operating and finance leases was 7.5%.
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.