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

Accrued Payroll and Payroll-Related Liabilities, and Accrued Liabilities and Other

v3.25.4
Accrued Payroll and Payroll-Related Liabilities, and Accrued Liabilities and Other
12 Months Ended
Dec. 28, 2025
Payables and Accruals [Abstract]  
Accrued Payroll and Payroll-Related Liabilities, and Accrued Liabilities and Other
7. Accrued Payroll and Payroll-Related Liabilities, and Accrued Liabilities and Other
Accrued payroll and payroll-related liabilities consisted of the following as of December 28, 2025 and December 29, 2024 (in thousands):
December 28, 2025 December 29, 2024
Payroll and payroll-related taxes $ 17,087  $ 18,438 
Workers compensation insurance 6,071  6,459 
Corporate and restaurant incentive compensation(1)
10,713  4,168 
Accrued vacation 6,398  6,583 
Other 3,770  4,024 
Accrued payroll and payroll-related liabilities $ 44,039  $ 39,672 
(1) This balance was inclusive of $2.9 million and $0.0 million for fiscal years 2025 and 2024, respectively, related to severance and executive transition costs.
Included within corporate and restaurant incentive compensation are accrued termination benefits, which represent one-time termination benefits primarily related to changes in leadership positions as a result of strategic pivots under previous strategies and the First Choice plan. These plans, and the related reductions in force, are accounted for in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. The charges incurred under previous strategies were recognized in fiscal 2023 and fully paid as of the end of fiscal 2024. The Company incurred a cumulative total of $1.4 million in one-time termination benefits during fiscal 2025 related to the First Choice plan reduction in force, and was included in Other (gains) charges, net in the Consolidated Statements of Operations and Comprehensive Income (Loss). One-time termination benefits activity for the fiscal years ended December 29, 2024 and December 28, 2025, respectively, were as follows:
Termination Benefits
Balance as of December 31, 2023
$ 184 
Charges — 
Cash Payments (184)
Balance as of December 29, 2024
$ — 
Charges 1,370 
Cash Payments (1,033)
Balance as of December 28, 2025
$ 337 
Accrued liabilities and other consisted of the following as of December 28, 2025 and December 29, 2024 (in thousands):
December 28, 2025 December 29, 2024
State and city sales tax payable $ 5,838  $ 6,224 
Real estate, personal property, state income, and other taxes payable 7,937  6,933 
Insurance
10,092  10,201 
Utilities 2,615  3,016 
Legal 5,510  4,935 
Accrued interest 1,220  1,536 
Accrued marketing 2,824  2,830 
Current portion of finance lease liabilities 1,092  1,019 
Other 9,673  6,237 
Accrued liabilities and other
$ 46,801  $ 42,931