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Revenue Recognition
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
NOTE 3 — Revenue Recognition
Revenue
The following table disaggregates revenue by major component:
Three Months Ended March 31,
(in thousands)20242023
Company-operated shops$248,085 $173,164 
Franchising25,771 22,645 
Other1,243 1,458 
Total revenues$275,099 $197,267 
Deferred Revenue
Deferred revenue activity related to the Company’s gift card and loyalty programs was as follows:
Three Months Ended March 31,
(in thousands)20242023
Beginning balance$34,616 $26,904 
Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned89,394 78,711 
Revenue recognized - gift card, loyalty app, loyalty rewards redemptions, and breakage
(91,057)(79,729)
Ending balance32,953 25,886 
Less: current portion(28,696)(21,754)
Deferred revenue, net of current portion, gift card and loyalty programs$4,257 $4,132 
Deferred revenue may also include sales to distributors where the performance obligation has not been satisfied and control has not been transferred to the customer as of the reporting date, as well as initial unearned franchise fees from franchise partners. These deferred revenues reported in the Company’s condensed consolidated balance sheets were as follows:
(in thousands)March 31, 2024December 31, 2023
Initial unearned franchise fees from franchise partners$2,470 $2,409 
Total deferred revenue, excluding gift card and loyalty programs2,470 2,409 
Less: current portion(414)(412)
Deferred revenue, net of current portion, excluding gift card and loyalty programs$2,056 $1,997 
Revenue recognized during the three months ended March 31, 2024 and 2023 that was included in the respective deferred revenue liability balances at the beginning of the period are shown below.
Three Months Ended March 31,
(in thousands)20242023
Gift card redemptions 1
$4,017 $3,235 
Earned franchise fees
113 114 
_____________________
1     Amounts exclude cash loads and transactions related to the Company’s loyalty rewards program.
Future recognition of initial unearned franchise fees as of March 31, 2024 is as follows:
(in thousands)
Remainder of 2024$316 
2025376 
2026334 
2027289 
2028240 
Thereafter915 
Total$2,470