Quarterly report [Sections 13 or 15(d)]

Other Charges (Gains), net

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Other Charges (Gains), net
 9 Months Ended
Oct. 05, 2025
Other Income and Expenses [Abstract]  
Other Charges (Gains), net Other Charges (Gains), net
Other charges (gains), net consisted of the following (in thousands):
Twelve Weeks Ended Forty Weeks Ended
October 5, 2025 October 6, 2024 October 5, 2025 October 6, 2024
Gain on sale of restaurant property $ —  $ —  $ (1,137) $ (7,425)
Asset impairment and restaurant closure costs, net 911  3  (494) 1,728 
Severance and executive transition(1)
539  22  1,878  1,104 
Litigation contingencies 3,155  271  3,178  1,047 
Asset disposal and other, net 1,821  1,236  3,421  4,033 
Other charges (gains), net
 $ 6,426  $ 1,532  $ 6,846  $ 487 
(1) Severance and executive transition includes $(129) and $16 of stock-based compensation in the twelve weeks ended October 5, 2025 and October 6, 2024, respectively, and $(4,222) and $66 of stock-based compensation in the forty weeks ended October 5, 2025 and October 6, 2024, respectively.
Gain on Sale of Restaurant Property
During the year to date period of fiscal 2025, the Company sold three restaurant properties for total proceeds of $5.8 million that resulted in a gain, net of expenses of $1.1 million. The net proceeds are included within cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows and were used to repay long-term debt.
During the year to date period of fiscal 2024, the Company sold ten restaurant properties for total proceeds of $23.9 million in a sale-leaseback transaction that resulted in a gain, net of expenses of $7.4 million. The net proceeds are included within cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows.
Asset Impairment and Restaurant Closure Costs, net
Asset impairment and restaurant closure costs, net consisted of the following (in thousands):
Twelve Weeks Ended Forty Weeks Ended
October 5, 2025 October 6, 2024 October 5, 2025 October 6, 2024
Number of non-operating locations
 9 11 9 11
Non-operating location rent and restaurant closure costs
$ 928  $ 523  $ 2,976  $ 2,185 
Number of impaired locations
 —  3 1 5
Non-cash impairment
 $ —  $ 178  $ 720  $ 1,306 
Number of locations with lease remeasurement
 2 2 15 5
Net lease remeasurement (gain) loss
 $ (17) $ (698) $ (4,190) $ (1,763)
Total asset impairment and restaurant closure costs, net
 $ 911  $ 3  $ (494) $ 1,728 
Severance and Executive Transition
Severance and executive transition consisted of the following (in thousands):
Twelve Weeks Ended Forty Weeks Ended
October 5, 2025 October 6, 2024 October 5, 2025 October 6, 2024
Executive severance
 $ 614  $ 3  $ 4,773  $ 409 
Stock-based compensation(1)
(129) 16  (4,222) 66 
Team member severance(2)
54  3  1,327  629 
Total severance and executive transition
 $ 539  $ 22  $ 1,878  $ 1,104 
(1) For the twelve and forty weeks ended October 5, 2025, the Stock-based compensation benefit relates primarily to the forfeiture of unvested stock-based compensation by executive leadership.
(2) During the forty weeks ended October 5, 2025, Team member severance is primarily associated with a reduction in force, which occurred during the second quarter of fiscal 2025.
As of October 5, 2025, $3.7 million is included in Accrued payroll and payroll related liabilities in the condensed consolidated balance sheet related to the executive transition costs described above.
Asset Disposal and Other
Asset disposal and other primarily relates to the closure of a corporate office location, asset disposals, strategic projects and other non-recurring items.