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v3.23.2

Segment Information | 6 Months Ended
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Jun. 18, 2023
Segment Reporting [Abstract] |
Segment Information | 2. Segment Information The following tables summarize revenues and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs.
|  | Fiscal Quarters Ended June 18, 2023 and June 19, 2022 |
|  | U.S. |  |  | Supply |  |  | International |  |  | Intersegment |  |  |  |  |  |  |
|  | Stores |  |  | Chain |  |  | Franchise |  |  | Revenues |  |  | Other |  |  | Total |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023 |  | $ | 338,421 |  |  | $ | 641,481 |  |  | $ | 70,495 |  |  | $ | (25,770 | ) |  | $ | — |  |  | $ | 1,024,627 |
2022 |  |  | 351,681 |  |  |  | 683,298 |  |  |  | 66,915 |  |  |  | (36,712 | ) |  |  | — |  |  |  | 1,065,182 |
Segment Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023 |  | $ | 123,592 |  |  | $ | 60,026 |  |  | $ | 58,865 |  |  | N/A |  |  | $ | (18,865 | ) |  | $ | 223,618 |
2022 |  |  | 104,055 |  |  |  | 53,633 |  |  |  | 52,890 |  |  | N/A |  |  |  | (5,621 | ) |  |  | 204,957 |
|  | Two Fiscal Quarters Ended June 18, 2023 and June 19, 2022 |
|  | U.S. |  |  | Supply |  |  | International |  |  | Intersegment |  |  |  |  |  |  |
|  | Stores |  |  | Chain |  |  | Franchise |  |  | Revenues |  |  | Other |  |  | Total |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023 |  | $ | 668,922 |  |  | $ | 1,291,605 |  |  | $ | 140,166 |  |  | $ | (51,668 | ) |  | $ | — |  |  | $ | 2,049,025 |
2022 |  |  | 684,450 |  |  |  | 1,325,260 |  |  |  | 135,748 |  |  |  | (69,127 | ) |  |  | — |  |  |  | 2,076,331 |
Segment Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023 |  | $ | 236,275 |  |  | $ | 108,541 |  |  | $ | 117,004 |  |  | N/A |  |  | $ | (34,587 | ) |  | $ | 427,233 |
2022 |  |  | 201,347 |  |  |  | 99,982 |  |  |  | 107,936 |  |  | N/A |  |  |  | (13,331 | ) |  |  | 395,934 |
In the first quarter of 2023, the Company changed its allocation methodology for certain costs which support certain internally developed software used across the Company’s franchise system. This allocation methodology change was implemented in order to reflect the way the chief operating decision maker allocates resources to the Company’s reportable segments and evaluates segment profitability, including the costs of internally developed software. The change in allocation methodology of certain software development costs resulted in an estimated increase in U.S. stores Segment Income of $15.8 million, an estimated increase in international franchise Segment Income of $1.9 million and an estimated decrease in other Segment Income of $17.7 million in the second quarter of 2023. The change in allocation methodology of certain software development costs resulted in an estimated increase in U.S. stores Segment Income of $25.9 million, an estimated increase in international franchise Segment Income of $3.8 million and an estimated decrease in other Segment Income of $29.7 million in the two fiscal quarters of 2023. The change in allocation methodology of certain software development costs had no impact on revenues, supply chain Segment Income or total Segment Income. The change in allocation methodology for certain software development costs is a prospective change and the comparative information has not been restated. The following table reconciles total Segment Income to consolidated income before provision for income taxes.
|  | Fiscal Quarter Ended |  |  | Two Fiscal Quarters Ended |
|  | June 18, |  |  | June 19, |  |  | June 18, |  |  | June 19, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Total Segment Income |  | $ | 223,618 |  |  | $ | 204,957 |  |  | $ | 427,233 |  |  | $ | 395,934 |
Depreciation and amortization |  |  | (18,561 | ) |  |  | (18,117 | ) |  |  | (36,731 | ) |  |  | (37,093 | )
Refranchising loss |  |  | — |  |  |  | — |  |  |  | (149 | ) |  |  | — |
Loss on sale/disposal of assets |  |  | (127 | ) |  |  | (253 | ) |  |  | (402 | ) |  |  | (448 | )
Non-cash equity-based compensation expense |  |  | (9,527 | ) |  |  | (8,473 | ) |  |  | (17,065 | ) |  |  | (15,738 | )
Income from operations |  |  | 195,403 |  |  |  | 178,114 |  |  |  | 372,886 |  |  |  | 342,655 |
Other expense |  |  | (14,964 | ) |  |  | — |  |  |  | (14,964 | ) |  |  | — |
Interest income |  |  | 2,537 |  |  |  | 219 |  |  |  | 4,928 |  |  |  | 268 |
Interest expense |  |  | (44,932 | ) |  |  | (44,851 | ) |  |  | (91,479 | ) |  |  | (91,723 | )
Income before provision for income taxes |  | $ | 138,044 |  |  | $ | 133,482 |  |  | $ | 271,371 |  |  | $ | 251,200 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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