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Segment Information | 6 Months Ended
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Jun. 15, 2025
Segment Reporting [Abstract] |
Segment Information | 2. Segment Information The Company has three reportable segments: (i) U.S. stores; (ii) supply chain; and (iii) international franchise. The Company’s operations are organized by management on the combined basis of line of business and geography. The U.S. stores segment includes operations with respect to all franchised and Company-owned stores throughout the U.S. The supply chain segment primarily includes the distribution of food and, to a lesser extent, other products, from the Company’s supply chain center operations in the U.S. and Canada. The international franchise segment includes operations related to the Company’s franchising business in foreign markets. The Company’s chief operating decision maker is its Chief Executive Officer, and he evaluates the performance of the Company’s segments and allocates resources to them based on revenues and earnings before interest, taxes, depreciation, amortization and other, referred to as Segment Income. The Company uses Segment Income to determine future business objectives and targets and for long-range planning for the reportable segments, as well as to evaluate their operating performance. The tables below summarize the financial information, including revenues, significant segment expenses, Segment Income and capital expenditures, concerning the Company’s reportable segments for the second quarters and two fiscal quarters ended June 15, 2025 and June 16, 2024. Intersegment revenues are comprised of sales of food and, to a lesser extent, other products, from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The Company adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) in the fourth quarter of 2024. The Company has included the relevant interim disclosures retrospectively for all periods presented in the condensed consolidated financial statements.
|  | Fiscal Quarter Ended June 15, 2025 |
|  | U.S. Stores |  |  | Supply Chain |  |  | International Franchise |  |  | Total |
U.S. Company-owned stores |  | $ | 92,456 |  |  | $ | — |  |  | $ | — |  |  | $ | 92,456 |
U.S. franchise royalties and fees |  |  | 156,261 |  |  |  | — |  |  |  | — |  |  |  | 156,261 |
Supply chain |  |  | — |  |  |  | 714,658 |  |  |  | — |  |  |  | 714,658 |
Supply chain - intersegment revenues |  |  | — |  |  |  | (27,596 | ) |  |  | — |  |  |  | (27,596 | )
International franchise royalties and fees |  |  | — |  |  |  | — |  |  |  | 77,164 |  |  |  | 77,164 |
U.S. franchise advertising |  |  | 132,201 |  |  |  | — |  |  |  | — |  |  |  | 132,201 |
Segment revenues |  | $ | 380,918 |  |  | $ | 687,062 |  |  | $ | 77,164 |  |  | $ | 1,145,144 |
Cost of sales - food |  |  | 27,279 |  |  |  | 487,484 |  |  |  | — |  |  |  | 514,763 |
Cost of sales - labor |  |  | 27,632 |  |  |  | 60,024 |  |  |  | — |  |  |  | 87,656 |
Cost of sales - other (1) |  |  | 20,486 |  |  |  | 49,211 |  |  |  | — |  |  |  | 69,697 |
U.S. franchise advertising |  |  | 132,201 |  |  |  | — |  |  |  | — |  |  |  | 132,201 |
General and administrative (2) |  |  | 39,337 |  |  |  | 16,132 |  |  |  | 11,600 |  |  |  | 67,069 |
Segment Income |  | $ | 133,983 |  |  | $ | 74,211 |  |  | $ | 65,564 |  |  | $ | 273,758 |
Segment capital expenditures (3) |  | $ | 1,983 |  |  | $ | 9,076 |  |  | $ | — |  |  | $ | 11,059 |
|  | Two Fiscal Quarters Ended June 15, 2025 |
|  | U.S. Stores |  |  | Supply Chain |  |  | International Franchise |  |  | Total |
U.S. Company-owned stores |  | $ | 184,054 |  |  | $ | — |  |  | $ | — |  |  | $ | 184,054 |
U.S. franchise royalties and fees |  |  | 307,261 |  |  |  | — |  |  |  | — |  |  |  | 307,261 |
Supply chain |  |  | — |  |  |  | 1,412,567 |  |  |  | — |  |  |  | 1,412,567 |
Supply chain - intersegment revenues |  |  | — |  |  |  | (55,581 | ) |  |  | — |  |  |  | (55,581 | )
International franchise royalties and fees |  |  | — |  |  |  | — |  |  |  | 152,723 |  |  |  | 152,723 |
U.S. franchise advertising |  |  | 256,176 |  |  |  | — |  |  |  | — |  |  |  | 256,176 |
Segment revenues |  | $ | 747,491 |  |  | $ | 1,356,986 |  |  | $ | 152,723 |  |  | $ | 2,257,200 |
Cost of sales - food |  |  | 54,490 |  |  |  | 959,100 |  |  |  | — |  |  |  | 1,013,590 |
Cost of sales - labor |  |  | 56,813 |  |  |  | 121,906 |  |  |  | — |  |  |  | 178,719 |
Cost of sales - other (1) |  |  | 38,238 |  |  |  | 98,558 |  |  |  | — |  |  |  | 136,796 |
U.S. franchise advertising |  |  | 256,176 |  |  |  | — |  |  |  | — |  |  |  | 256,176 |
General and administrative (2) |  |  | 75,973 |  |  |  | 30,391 |  |  |  | 23,380 |  |  |  | 129,744 |
Segment Income |  | $ | 265,801 |  |  | $ | 147,031 |  |  | $ | 129,343 |  |  | $ | 542,175 |
Segment capital expenditures (3) |  | $ | 2,959 |  |  | $ | 14,586 |  |  | $ | — |  |  | $ | 17,545 |
|  | Fiscal Quarter Ended June 16, 2024 |
|  | U.S. Stores |  |  | Supply Chain |  |  | International Franchise |  |  | Total |
U.S. Company-owned stores |  | $ | 92,264 |  |  | $ | — |  |  | $ | — |  |  | $ | 92,264 |
U.S. franchise royalties and fees |  |  | 147,576 |  |  |  | — |  |  |  | — |  |  |  | 147,576 |
Supply chain |  |  | — |  |  |  | 686,464 |  |  |  | — |  |  |  | 686,464 |
Supply chain - intersegment revenues |  |  | — |  |  |  | (27,220 | ) |  |  | — |  |  |  | (27,220 | )
International franchise royalties and fees |  |  | — |  |  |  | — |  |  |  | 73,696 |  |  |  | 73,696 |
U.S. franchise advertising |  |  | 124,956 |  |  |  | — |  |  |  | — |  |  |  | 124,956 |
Segment revenues |  | $ | 364,796 |  |  | $ | 659,244 |  |  | $ | 73,696 |  |  | $ | 1,097,736 |
Cost of sales - food |  |  | 26,321 |  |  |  | 468,461 |  |  |  | — |  |  |  | 494,782 |
Cost of sales - labor |  |  | 28,477 |  |  |  | 61,700 |  |  |  | — |  |  |  | 90,177 |
Cost of sales - other (1) |  |  | 18,408 |  |  |  | 45,946 |  |  |  | — |  |  |  | 64,354 |
U.S. franchise advertising |  |  | 124,956 |  |  |  | — |  |  |  | — |  |  |  | 124,956 |
General and administrative (2) |  |  | 37,152 |  |  |  | 18,151 |  |  |  | 14,599 |  |  |  | 69,902 |
Segment Income |  | $ | 129,482 |  |  | $ | 64,986 |  |  | $ | 59,097 |  |  | $ | 253,565 |
Segment capital expenditures (3) |  | $ | 2,215 |  |  | $ | 9,642 |  |  | $ | 33 |  |  | $ | 11,890 |
|  | Two Fiscal Quarters Ended June 16, 2024 |
|  | U.S. Stores |  |  | Supply Chain |  |  | International Franchise |  |  | Total |
U.S. Company-owned stores |  | $ | 184,913 |  |  | $ | — |  |  | $ | — |  |  | $ | 184,913 |
U.S. franchise royalties and fees |  |  | 298,094 |  |  |  | — |  |  |  | — |  |  |  | 298,094 |
Supply chain |  |  | — |  |  |  | 1,373,390 |  |  |  | — |  |  |  | 1,373,390 |
Supply chain - intersegment revenues |  |  | — |  |  |  | (54,932 | ) |  |  | — |  |  |  | (54,932 | )
International franchise royalties and fees |  |  | — |  |  |  | — |  |  |  | 145,662 |  |  |  | 145,662 |
U.S. franchise advertising |  |  | 235,256 |  |  |  | — |  |  |  | — |  |  |  | 235,256 |
Segment revenues |  | $ | 718,263 |  |  | $ | 1,318,458 |  |  | $ | 145,662 |  |  | $ | 2,182,383 |
Cost of sales - food |  |  | 52,963 |  |  |  | 938,398 |  |  |  | — |  |  |  | 991,361 |
Cost of sales - labor |  |  | 58,151 |  |  |  | 123,918 |  |  |  | — |  |  |  | 182,069 |
Cost of sales - other (1) |  |  | 35,594 |  |  |  | 91,962 |  |  |  | — |  |  |  | 127,556 |
U.S. franchise advertising |  |  | 235,256 |  |  |  | — |  |  |  | — |  |  |  | 235,256 |
General and administrative (2) |  |  | 70,709 |  |  |  | 34,617 |  |  |  | 27,233 |  |  |  | 132,559 |
Segment Income |  | $ | 265,590 |  |  | $ | 129,563 |  |  | $ | 118,429 |  |  | $ | 513,582 |
Segment capital expenditures (3) |  | $ | 4,812 |  |  | $ | 12,417 |  |  | $ | 33 |  |  | $ | 17,262 |
(1) |  | Cost of sales - other, includes delivery, occupancy costs (including rent, telephone and utilities) and insurance expense. Depreciation and amortization is not included in the measurement of Segment Income.
(2) |  | General and administrative expense consists primarily of labor cost (including variable performance-based compensation expense), computer expenses, professional fees, travel and entertainment, rent, insurance and other. Depreciation and amortization, non-cash equity-based compensation expense, gains and losses from the sale/disposal of assets and refranchising gains and losses are not included in the measurement of Segment Income.
(3) |  | The Company also had $10.1 million and $14.4 million of other capital expenditures not attributable to the reportable segments primarily representing capitalized software in the second quarters of 2025 and 2024, respectively. The Company had $18.8 million and $28.6 million of other capital expenditures not attributable to the reportable segments primarily representing capitalized software in the two fiscal quarters of 2025 and 2024, respectively.
The following table reconciles total Segment Income to income before provision for income taxes:
|  | Fiscal Quarter Ended |  |  | Two Fiscal Quarters Ended |
|  | June 15, 2025 |  |  | June 16, 2024 |  |  | June 15, 2025 |  |  | June 16, 2024 |
Total Segment Income |  | $ | 273,758 |  |  | $ | 253,565 |  |  | $ | 542,175 |  |  | $ | 513,582 |
General and administrative - other (1) |  |  | (20,925 | ) |  |  | (26,165 | ) |  |  | (48,238 | ) |  |  | (44,339 | )
Depreciation and amortization |  |  | (20,351 | ) |  |  | (20,349 | ) |  |  | (40,713 | ) |  |  | (40,218 | )
Non-cash equity-based compensation expense |  |  | (10,975 | ) |  |  | (10,686 | ) |  |  | (21,356 | ) |  |  | (22,024 | )
Loss on sale/disposal of assets |  |  | (346 | ) |  |  | (237 | ) |  |  | (612 | ) |  |  | (327 | )
Refranchising gain (loss) |  |  | 3,883 |  |  |  | (25 | ) |  |  | 3,883 |  |  |  | (158 | )
Income from operations |  |  | 225,044 |  |  |  | 196,103 |  |  |  | 435,139 |  |  |  | 406,516 |
Other (expense) income |  |  | (15,974 | ) |  |  | 11,398 |  |  |  | 8,053 |  |  |  | (7,301 | )
Interest income |  |  | 3,829 |  |  |  | 4,219 |  |  |  | 7,774 |  |  |  | 7,958 |
Interest expense |  |  | (44,648 | ) |  |  | (44,721 | ) |  |  | (90,233 | ) |  |  | (90,567 | )
Income before provision for income taxes |  | $ | 168,251 |  |  | $ | 166,999 |  |  | $ | 360,733 |  |  | $ | 316,606 |
(1) |  | Represents corporate administrative costs that have not been allocated to a reportable segment including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs.
The Company’s chief operating decision maker is not regularly provided financial information related to the assets of the reportable segments, and he does not evaluate their performance or allocate resources to them based on assets. Therefore, total assets by reportable segment are not included in the Company’s segment disclosures.

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- Definition The entire disclosure for reporting segments including data and tables. 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