Quarterly report [Sections 13 or 15(d)]

Other (Gains) Charges, net

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Other (Gains) Charges, net
 6 Months Ended
Jul. 12, 2026
Other Income and Expenses [Abstract]  
Other Charges (Gains), net Other (Gains) Charges, net
Other (gains) charges, net consisted of the following (in thousands):
Twelve Weeks Ended Twenty-Eight Weeks Ended
July 12, 2026 July 13, 2025 July 12, 2026 July 13, 2025
Asset impairment and restaurant closure costs, net $ 641  $ (1,615) $ 2,394  $ (1,405)
Gain on sale of restaurant property (900) —  (900) (1,137)
Severance and executive transition(1)
1,112  459  1,182  1,339 
Litigation contingencies 33  11  120  23 
Asset disposal and other, net 233  889  3,153  1,600 
Other (gains) charges, net $ 1,119  $ (256) $ 5,949  $ 420 
(1) Severance and executive transition included $0 and $(3,868) of stock-based compensation (benefit) expense in the twelve weeks ended July 12, 2026 and July 13, 2025, respectively, and $0 and $(4,093) of stock-based compensation (benefit) expense in the twenty-eight weeks ended July 12, 2026 and July 13, 2025, 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):
Twelve Weeks Ended Twenty-Eight Weeks Ended
July 12, 2026 July 13, 2025 July 12, 2026 July 13, 2025
Number of non-operating locations
 10 10 10 10
Non-operating location rent, restaurant closure costs, and other
 $ 608  $ 1,120  $ 2,176  $ 2,048 
Number of impaired locations
 1  1  2  1 
Non-cash impairment
 $ 1,124  $ 720  $ 1,673  $ 720 
Number of locations with lease remeasurement
 2 10 5 13
Net lease remeasurement (gain) loss
 $ (1,091) $ (3,455) $ (1,455) $ (4,173)
Total asset impairment and restaurant closure costs, net
 $ 641  $ (1,615) $ 2,394  $ (1,405)
Gain on Sale of Restaurant Property
During the second quarter and year to date period of fiscal 2026, the Company completed sale-leaseback transactions for two restaurant properties. One transaction resulted in an impairment of $1.1 million, and the other transaction resulted in a gain, net of expenses, of $0.9 million. The net proceeds are included within cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows and were used for general corporate purposes and to repay long-term debt. See Note 3. Significant Transactions for additional information regarding these sale-leaseback transactions.
During the second quarter of fiscal 2025, the Company did not sell any restaurant properties. 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 were included within cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows for the year to date period of fiscal 2025 and were used to repay long-term debt.
Severance and Executive Transition
Severance and executive transition consisted of the following (in thousands):
Twelve Weeks Ended Twenty-Eight Weeks Ended
July 12, 2026 July 13, 2025 July 12, 2026 July 13, 2025
Executive severance
 $ 80  $ 3,060  $ 131  $ 4,159 
Stock-based compensation(1)
—  (3,868) —  (4,093)
Team member severance(2)
1,032  1,267  1,051  1,273 
Total severance and executive transition
 $ 1,112  $ 459  $ 1,182  $ 1,339 
(1) For the twelve and twenty-eight weeks ended July 13, 2025, the Stock-based compensation benefit relates primarily to the forfeiture of unvested stock-based compensation by executive leadership.
(2) During the twenty-eight weeks ended July 12, 2026 and July 13, 2025, team member severance is primarily associated with a reduction in force, which occurred during the second quarter of fiscal 2026 and 2025.
For the twenty-eight weeks ended July 12, 2026 and July 13, 2025, $1.9 million and $4.3 million, respectively, were included in accrued payroll and payroll related liabilities in the Condensed Consolidated Balance Sheet related to the executive transition costs described above.
Litigation Contingencies
For the twenty-eight weeks ended July 12, 2026 and July 13, 2025, the Company recorded certain accruals associated with litigation contingencies. See Note 10. 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.
On February 23, 2026, the Company voluntarily terminated its $40.0 million at-the-market equity offering program, which had been established on November 10, 2025. No shares were issued or sold under the program. The Company incurred $0.5 million of related stock issuance costs, which were initially recorded within paid-in capital on the December 28, 2025 Consolidated Balance Sheet, and subsequently reclassified to other (gains) charges, net within the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) upon termination of the offering.