Annual report [Section 13 and 15(d), not S-K Item 405]

Other Charges (Gains), net

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Other Charges (Gains), net
 12 Months Ended
Dec. 28, 2025
Other Income and Expenses [Abstract]  
Other Charges (Gains), net Other (Gains) Charges, net
Other (gains) charges, net consisted of the following (in thousands):    
Year Ended
December 28, 2025 December 29, 2024 December 31, 2023
Asset impairment and restaurant closure costs, net $ 2,785  $ 34,080  $ 12,192 
Gain on sale of restaurant property (1,127) (7,425) (29,543)
Severance and executive transition(1)
2,181  1,181  3,419 
Litigation contingencies 2,198  1,037  9,140 
Asset disposal and other, net
 4,426  4,975  2,129 
Other (gains) charges, net $ 10,463  $ 33,848  $ (2,663)
(1) Severance and executive transition included $(4.1) million, $0.1 million, and $0.1 million of stock-based compensation (benefit) expense in fiscal years 2025, 2024, and 2023, respectively.
Asset Impairment and Restaurant Closure Costs, net
Asset impairment and restaurant closure costs, net consisted of the following (in thousands, except for location data):
Year Ended
December 28, 2025 December 29, 2024 December 31, 2023
Number of non-operating locations
 10 9 13
Non-operating location rent, restaurant closure costs, and other
 $ 4,291  $ 3,676  $ 5,432 
Number of impaired locations
 4 58 19
Non-cash impairment
 $ 2,713  $ 32,838  $ 9,130 
Number of locations with lease remeasurement
 17 7 9
Net lease remeasurement (gain) loss
 $ (4,219) $ (2,434) $ (2,370)
Total asset impairment and restaurant closure costs, net
 $ 2,785  $ 34,080  $ 12,192 
Gain on Sale of Restaurant Property
During 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 were included within cash flows from investing activities on the Consolidated Statements of Cash Flows for the year ended December 28, 2025, and were used to repay long-term debt.
During fiscal 2024, the Company sold ten restaurant properties for total proceeds of $23.9 million in sale-leaseback transactions that resulted in a gain, net of expenses of $7.4 million. The net proceeds were included within cash flows from investing activities on the Consolidated Statements of Cash Flows for the year ended December 29, 2024.
During fiscal 2023, the Company sold 18 restaurant properties for total proceeds of $58.8 million in a sale-leaseback transaction that resulted in a gain, net of expenses of $29.4 million. In addition, during 2023, the Company sold one restaurant property for total proceeds of $1.5 million which resulted in a gain, net of expenses of $0.1 million. The net proceeds were included within cash flows from investing activities on the Consolidated Statements of Cash Flows for the year ended December 31, 2023.
Severance and Executive Transition
Severance and executive transition consisted of the following (in thousands):
Year Ended
December 28, 2025 December 29, 2024 December 31, 2023
Executive severance
 $ 4,915  $ 476  $ 2,298 
Stock-based compensation(1)
(4,104) 71  128 
Team member severance(2)
1,370  634  993 
Total severance and executive transition
 $ 2,181  $ 1,181  $ 3,419 
(1) For fiscal 2025, the stock-based compensation benefit related primarily to the forfeiture of unvested stock-based compensation by certain executive leadership.
(2) During fiscal 2025, team member severance was primarily associated with a reduction in force, which occurred during the second quarter of fiscal 2025.
Litigation Contingencies
In fiscal years 2025, 2024, and 2023, the Company recorded certain accruals associated with litigation contingencies. See Note 12. Commitments and Contingencies, for further discussion.
Asset Disposal and Other
Asset disposal and other primarily related to asset disposals, strategic projects and other non-recurring items.