Leases
The weighted-average remaining lease term and discount rate were as follows:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term (years) | 14.1 | | 13.9 |
| Weighted-average discount rate | 5.48 | % | | 5.30 | % |
The components of lease cost were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year ended December 31, |
| Classification | 2025 | | 2024 | | 2023 |
| Operating lease cost | Occupancy, Other operating costs, General and administrative expenses and Pre-opening costs | $ | 544,367 | | $ | 486,598 | | $ | 436,313 |
| Short-term lease cost | Other operating costs | 989 | | 572 | | 519 |
| Variable lease cost | Occupancy, Other operating costs, General and administrative expenses and Pre-opening costs | 129,310 | | 120,948 | | 111,896 |
| Sublease income | General and administrative expenses | (3,576) | | | (3,559) | | | (4,765) | |
| Total lease cost | | $ | 671,090 | | $ | 604,559 | | $ | 543,963 |
Supplemental disclosures of cash flow information related to leases were as follows:
| | | | | | | | | | | | | | | | | |
| | Year ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Cash paid for operating lease liabilities | $ | 520,277 | | $ | 466,171 | | $ | 421,591 |
| Operating lease assets obtained in exchange for operating lease liabilities | $ | 751,614 | | $ | 692,684 | | $ | 521,759 |
| Derecognition of operating lease assets due to terminations or impairment | $ | 6,127 | | $ | 6,899 | | $ | 6,862 |
Maturities of lease liabilities were as follows as of December 31, 2025:
| | | | | |
| Operating Leases |
| 2026 | $ | 521,413 |
| 2027 | 569,200 |
| 2028 | 553,401 |
| 2029 | 536,731 |
| 2030 | 513,146 |
| Thereafter | 4,780,639 |
| Total lease payments | 7,474,530 |
| Less: imputed interest | 2,398,716 |
| Operating lease liabilities (Current and Long-Term) | $ | 5,075,814 |
As of December 31, 2025, the total lease payments include $3,008,534 related to options to extend lease terms that are reasonably certain of being exercised and exclude approximately $834,442 of legally binding lease payments for leases signed but not yet commenced and $15,501 of future sublease income.
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.