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v3.22.4

Leases (Tables) | 12 Months Ended
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Jan. 01, 2023
Leases [Abstract] |
Lease, Cost | The components of lease cost for 2022, 2021 and 2020 are as follows:
| Year Ended
| 2022 |  | 2021 |  | 2020
Finance lease cost: |  |  |  |  |
Amortization of finance lease assets | $ | 15,440 |  |  | $ | 13,992 |  |  | $ | 13,395 |
Interest on finance lease liabilities | 42,918 |  |  | 41,419 |  |  | 40,682 |
| 58,358 |  |  | 55,411 |  |  | 54,077 |
Operating lease cost | 86,050 |  |  | 89,283 |  |  | 91,475 |
Variable lease cost (a) | 64,473 |  |  | 63,853 |  |  | 59,076 |
Short-term lease cost | 5,439 |  |  | 5,102 |  |  | 4,641 |
Total operating lease cost (b) | 155,962 |  |  | 158,238 |  |  | 155,192 |
Total lease cost | $ | 214,320 |  |  | $ | 213,649 |  |  | $ | 209,269 |
_______________ (a)Includes expenses for executory costs of $38,749, $39,646, and $38,652 for 2022, 2021 and 2020, respectively, for which the Company is reimbursed by sublessees. (b)Includes $123,924, $132,158 and $125,553 for 2022, 2021 and 2020, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $29,648, $23,558 and $26,866 for 2022, 2021 and 2020, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
Schedule of Supplemental Cash Flow and Non-cash Information Related to Leases | The following table includes supplemental cash flow and non-cash information related to leases:
| Year Ended
| 2022 |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from finance leases | $ | 42,979 |  |  | $ | 42,277 |  |  | $ | 39,349 |
Operating cash flows from operating leases | 88,372 |  |  | 91,930 |  |  | 85,689 |
Financing cash flows from finance leases | 17,312 |  |  | 13,640 |  |  | 8,383 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |
Finance lease liabilities | 34,478 |  |  | 82,032 |  |  | 34,918 |
Operating lease liabilities | 24,742 |  |  | 58,770 |  |  | 18,327 |
Schedule of Supplemental Information Related to Leases | The following table includes supplemental information related to leases:
| Year End
| January 1, 2023 |  | January 2, 2022
Weighted-average remaining lease term (years): |  |  |
Finance leases | 15.1 |  | 15.8
Operating leases | 13.7 |  | 14.1
Weighted average discount rate: |  |  |
Finance leases | 8.66 | % |  | 8.91 | %
Operating leases | 4.90 | % |  | 4.94 | %
Supplemental balance sheet information: |  |  |
Finance lease assets, gross | $ | 310,686 |  |  | $ | 307,965 |
Accumulated amortization | (76,116) |  |  | (63,686) |
Finance lease assets | 234,570 |  |  | 244,279 |
Operating lease assets | 754,498 |  |  | 812,620 |
Finance Lease, Liability, Maturity | The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of January 1, 2023:
| Finance Leases |  | Operating Leases
Fiscal Year | Company-Operated |  | Franchise and Other |  | Company-Operated |  | Franchise and Other
2023 | $ | 6,590 |  |  | $ | 54,163 |  |  | $ | 21,948 |  |  | $ | 65,838 |
2024 | 6,683 |  |  | 54,763 |  |  | 21,891 |  |  | 66,211 |
2025 | 6,883 |  |  | 55,357 |  |  | 21,666 |  |  | 66,072 |
2026 | 7,028 |  |  | 57,043 |  |  | 22,113 |  |  | 65,314 |
2027 | 7,072 |  |  | 57,742 |  |  | 22,047 |  |  | 64,901 |
Thereafter | 81,853 |  |  | 603,101 |  |  | 185,694 |  |  | 537,504 |
Total minimum payments | $ | 116,109 |  |  | $ | 882,169 |  |  | $ | 295,359 |  |  | $ | 865,840 |
Less interest | (39,079) |  |  | (369,006) |  |  | (78,935) |  |  | (242,093) |
Present value of minimum lease payments (a) (b) | $ | 77,030 |  |  | $ | 513,163 |  |  | $ | 216,424 |  |  | $ | 623,747 |
_______________ (a)The present value of minimum finance lease payments of $18,316 and $571,877 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively. (b)The present value of minimum operating lease payments of $48,120 and $792,051 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.
Lessee, Operating Lease, Liability, Maturity | The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of January 1, 2023:
| Finance Leases |  | Operating Leases
Fiscal Year | Company-Operated |  | Franchise and Other |  | Company-Operated |  | Franchise and Other
2023 | $ | 6,590 |  |  | $ | 54,163 |  |  | $ | 21,948 |  |  | $ | 65,838 |
2024 | 6,683 |  |  | 54,763 |  |  | 21,891 |  |  | 66,211 |
2025 | 6,883 |  |  | 55,357 |  |  | 21,666 |  |  | 66,072 |
2026 | 7,028 |  |  | 57,043 |  |  | 22,113 |  |  | 65,314 |
2027 | 7,072 |  |  | 57,742 |  |  | 22,047 |  |  | 64,901 |
Thereafter | 81,853 |  |  | 603,101 |  |  | 185,694 |  |  | 537,504 |
Total minimum payments | $ | 116,109 |  |  | $ | 882,169 |  |  | $ | 295,359 |  |  | $ | 865,840 |
Less interest | (39,079) |  |  | (369,006) |  |  | (78,935) |  |  | (242,093) |
Present value of minimum lease payments (a) (b) | $ | 77,030 |  |  | $ | 513,163 |  |  | $ | 216,424 |  |  | $ | 623,747 |
_______________ (a)The present value of minimum finance lease payments of $18,316 and $571,877 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively. (b)The present value of minimum operating lease payments of $48,120 and $792,051 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.
Lease, Income | The components of lease income for 2022, 2021 and 2020 are as follows:
| Year Ended
| 2022 |  | 2021 |  | 2020
Sales-type and direct-financing leases: |  |  |  |  |
Selling profit | $ | 2,981 |  |  | $ | 4,244 |  |  | $ | 1,995 |
Interest income (a) | 31,298 |  |  | 30,648 |  |  | 29,067 |
Operating lease income | 170,633 |  |  | 173,442 |  |  | 174,452 |
Variable lease income | 63,832 |  |  | 63,213 |  |  | 58,196 |
Franchise rental income (b) | $ | 234,465 |  |  | $ | 236,655 |  |  | $ | 232,648 |
_______________ (a)Included in “Interest expense, net.” (b)Includes sublease income of $175,053, $174,327 and $169,921 recognized during 2022, 2021 and 2020, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $38,733, $39,650 and $38,636 for 2022, 2021 and 2020, respectively.
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of January 1, 2023:
| Sales-Type and Direct Financing Leases |  | Operating Leases
Fiscal Year | Subleases |  | Owned Properties |  | Subleases |  | Owned Properties
2023 | $ | 36,408 |  |  | $ | 2,512 |  |  | $ | 107,111 |  |  | $ | 53,609 |
2024 | 38,425 |  |  | 2,523 |  |  | 107,832 |  |  | 54,743 |
2025 | 37,316 |  |  | 2,640 |  |  | 107,923 |  |  | 55,334 |
2026 | 38,623 |  |  | 2,810 |  |  | 107,843 |  |  | 57,089 |
2027 | 39,190 |  |  | 2,726 |  |  | 107,967 |  |  | 56,698 |
Thereafter | 428,631 |  |  | 29,035 |  |  | 889,728 |  |  | 593,718 |
Total future minimum receipts | 618,593 |  |  | 42,246 |  |  | $ | 1,428,404 |  |  | $ | 871,191 |
Unearned interest income | (312,508) |  |  | (22,731) |  |  |  |  |
Net investment in sales-type and direct financing leases (a) | $ | 306,085 |  |  | $ | 19,515 |  |  |  |  |
_______________ (a)The present value of minimum sales-type and direct financing rental receipts of $8,263 and $317,337 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $611.
Lessor, Operating Lease, Payments to be Received, Maturity | The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of January 1, 2023:
| Sales-Type and Direct Financing Leases |  | Operating Leases
Fiscal Year | Subleases |  | Owned Properties |  | Subleases |  | Owned Properties
2023 | $ | 36,408 |  |  | $ | 2,512 |  |  | $ | 107,111 |  |  | $ | 53,609 |
2024 | 38,425 |  |  | 2,523 |  |  | 107,832 |  |  | 54,743 |
2025 | 37,316 |  |  | 2,640 |  |  | 107,923 |  |  | 55,334 |
2026 | 38,623 |  |  | 2,810 |  |  | 107,843 |  |  | 57,089 |
2027 | 39,190 |  |  | 2,726 |  |  | 107,967 |  |  | 56,698 |
Thereafter | 428,631 |  |  | 29,035 |  |  | 889,728 |  |  | 593,718 |
Total future minimum receipts | 618,593 |  |  | 42,246 |  |  | $ | 1,428,404 |  |  | $ | 871,191 |
Unearned interest income | (312,508) |  |  | (22,731) |  |  |  |  |
Net investment in sales-type and direct financing leases (a) | $ | 306,085 |  |  | $ | 19,515 |  |  |  |  |
_______________ (a)The present value of minimum sales-type and direct financing rental receipts of $8,263 and $317,337 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $611.
Property, Plant, and Equipment, Lessor Asset under Operating Lease | Properties owned by the Company and leased to franchisees and other third parties under operating leases include:
| Year End
| January 1, 2023 |  | January 2, 2022
Land | $ | 260,650 |  |  | $ | 258,513 |
Buildings and improvements | 291,659 |  |  | 288,782 |
Restaurant equipment | 1,701 |  |  | 1,701 |
| 554,010 |  |  | 548,996 |
Accumulated depreciation and amortization | (187,269) |  |  | (173,243) |
| $ | 366,741 |  |  | $ | 375,753 |

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