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v3.22.2

Segment Information (Tables) | 6 Months Ended
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Jun. 26, 2022
Segment Reporting [Abstract] |
Schedule of segment information | Our segment information is as follows:
| Three Months Ended |  | Six Months Ended
(In thousands) | June 26, 2022 |  | June 27, 2021 |  | June 26, 2022 |  | June 27, 2021
Revenues: |  |  |  |  |  |  |
Domestic Company-owned restaurants | $ | 171,411 |  | $ | 196,124 |  | $ | 370,176 |  | $ | 393,358
North America franchising | 34,917 |  | 32,475 |  | 69,185 |  | 65,190
North America commissaries | 219,383 |  | 186,641 |  | 429,062 |  | 371,519
International | 39,282 |  | 46,277 |  | 81,989 |  | 88,881
All others | 57,672 |  | 53,491 |  | 114,945 |  | 107,806
Total revenues | $ | 522,665 |  | $ | 515,008 |  | $ | 1,065,357 |  | $ | 1,026,754
Intersegment revenues: |  |  |  |  |  |  |
North America franchising | $ | 1,048 |  | $ | 1,041 |  | $ | 2,101 |  | $ | 2,101
North America commissaries | 52,754 |  | 53,428 |  | 111,261 |  | 105,498
All others | 15,889 |  | 18,943 |  | 35,268 |  | 38,091
Total intersegment revenues | $ | 69,691 |  | $ | 73,412 |  | $ | 148,630 |  | $ | 145,690
Operating income: |  |  |  |  |  |  |
Domestic Company-owned restaurants (1) | $ | 5,924 |  | $ | 15,361 |  | $ | 7,912 |  | $ | 30,685
North America franchising | 32,624 |  | 30,518 |  | 64,761 |  | 60,961
North America commissaries | 10,957 |  | 9,778 |  | 20,292 |  | 19,491
International (2) | 7,306 |  | 8,683 |  | 11,761 |  | 17,047
All others | 2,187 |  | 4,894 |  | 5,906 |  | 11,012
Unallocated corporate expenses (3) | (19,344) |  |  | (24,617) |  |  | (56,454) |  |  | (47,779) |
Elimination of intersegment (profits) losses | (750) |  |  | 20 |  | (839) |  |  | 82
Total operating income | $ | 38,904 |  | $ | 44,637 |  | $ | 53,339 |  | $ | 91,499
Property and equipment, net: |  |  |  |  |  |  |
Domestic Company-owned restaurants | $ | 225,755 |  |  |  |  |  |
North America commissaries | 151,648 |  |  |  |  |  |
International | 15,157 |  |  |  |  |  |
All others | 118,496 |  |  |  |  |  |
Unallocated corporate assets | 240,431 |  |  |  |  |  |
Accumulated depreciation and amortization | (526,105) |  |  |  |  |  |  |
Total property and equipment, net | $ | 225,382 |  |  |  |  |  |
(1) | Includes a one-time, non-cash charge of $8.4 million associated with the refranchising of the Company’s ownership interest in a 90-restaurant joint venture, recorded as Refranchising and impairment loss for the six months ended June 26, 2022. See Note 10 for additional information.
(2) | Includes $3.5 million of one-time, non-cash reserves for certain accounts receivable and impairments of reacquired franchise rights for the six months ended June 26, 2022. See Notes 2 and 10 for additional information.
(3) | Unallocated corporate expenses include $13.9 million of one-time, non-cash reserves of certain notes receivable, $5.0 million for the Legal Settlement, and $1.5 million of advisory fees and severance costs associated with the transition of certain executives for the six months ended June 26, 2022. Unallocated corporate expense includes $3.3 million and $7.2 million of reorganization costs for the three and six months ended June 27, 2021. See Notes 2 and 9 for additional information.
Schedule of revenue disaggregated by major product line | In the following tables, revenues are disaggregated by major product/service line. The tables also include a reconciliation of the disaggregated revenues by the reportable segment (in thousands):
| Reportable Segments
| Three Months Ended June 26, 2022
Major Products/Services Lines | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales | $ | 171,411 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 171,411 |
Franchise royalties and fees | — |  |  | 35,965 |  |  | — |  |  | 12,043 |  |  | — |  |  | 48,008 |
Commissary sales | — |  |  | — |  |  | 272,137 |  |  | 19,915 |  |  | — |  |  | 292,052 |
Other revenues | — |  |  | — |  |  | — |  |  | 7,324 |  |  | 73,561 |  |  | 80,885 |
Eliminations | — |  |  | (1,048) |  |  | (52,754) |  |  | — |  |  | (15,889) |  |  | (69,691) |
Total segment revenues | $ | 171,411 |  |  | $ | 34,917 |  |  | $ | 219,383 |  |  | $ | 39,282 |  |  | $ | 57,672 |  |  | $ | 522,665 |
International other revenues (1) | — |  |  | — |  |  | — |  |  | (7,324) |  |  | 7,324 |  |  | — |
Total revenues | $ | 171,411 |  |  | $ | 34,917 |  |  | $ | 219,383 |  |  | $ | 31,958 |  |  | $ | 64,996 |  |  | $ | 522,665 |
| Reportable Segments
| Three Months Ended June 27, 2021
Major Products/Services Lines | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales | $ | 196,124 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 196,124 |
Franchise royalties and fees | — |  |  | 33,516 |  |  | — |  |  | 13,156 |  |  | — |  |  | 46,672 |
Commissary sales | — |  |  | — |  |  | 240,069 |  |  | 24,458 |  |  | — |  |  | 264,527 |
Other revenues | — |  |  | — |  |  | — |  |  | 8,663 |  |  | 72,434 |  |  | 81,097 |
Eliminations | — |  |  | (1,041) |  |  | (53,428) |  |  | — |  |  | (18,943) |  |  | (73,412) |
Total segment revenues | $ | 196,124 |  |  | $ | 32,475 |  |  | $ | 186,641 |  |  | $ | 46,277 |  |  | $ | 53,491 |  |  | $ | 515,008 |
International other revenues (1) | — |  |  | — |  |  | — |  |  | (8,663) |  |  | 8,663 |  |  | — |
Total revenues | $ | 196,124 |  |  | $ | 32,475 |  |  | $ | 186,641 |  |  | $ | 37,614 |  |  | $ | 62,154 |  |  | $ | 515,008 |
| Reportable Segments
| Six Months Ended June 26, 2022
Major Products/Services Lines | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales | $ | 370,176 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 370,176 |
Franchise royalties and fees | — |  |  | 71,286 |  |  | — |  |  | 25,478 |  |  | — |  |  | 96,764 |
Commissary sales | — |  |  | — |  |  | 540,323 |  |  | 41,097 |  |  | — |  |  | 581,420 |
Other revenues | — |  |  | — |  |  | — |  |  | 15,414 |  |  | 150,213 |  |  | 165,627 |
Eliminations | — |  |  | (2,101) |  |  | (111,261) |  |  | — |  |  | (35,268) |  |  | (148,630) |
Total segment revenues | $ | 370,176 |  |  | $ | 69,185 |  |  | $ | 429,062 |  |  | $ | 81,989 |  |  | $ | 114,945 |  |  | $ | 1,065,357 |
International other revenues (1) | — |  |  | — |  |  | — |  |  | (15,414) |  |  | 15,414 |  |  | — |
Total revenues | $ | 370,176 |  |  | $ | 69,185 |  |  | $ | 429,062 |  |  | $ | 66,575 |  |  | $ | 130,359 |  |  | $ | 1,065,357 |
| Reportable Segments
| Six Months Ended June 27, 2021
Major Products/Services Lines | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales | $ | 393,358 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 393,358 |
Franchise royalties and fees | — |  |  | 67,291 |  |  | — |  |  | 25,364 |  |  | — |  |  | 92,655 |
Commissary sales | — |  |  | — |  |  | 477,017 |  |  | 46,857 |  |  | — |  |  | 523,874 |
Other revenues | — |  |  | — |  |  | — |  |  | 16,660 |  |  | 145,897 |  |  | 162,557 |
Eliminations | — |  |  | (2,101) |  |  | (105,498) |  |  | — |  |  | (38,091) |  |  | (145,690) |
Total segment revenues | $ | 393,358 |  |  | $ | 65,190 |  |  | $ | 371,519 |  |  | $ | 88,881 |  |  | $ | 107,806 |  |  | $ | 1,026,754 |
International other revenues (1) | — |  |  | — |  |  | — |  |  | (16,660) |  |  | 16,660 |  |  | — |
Total revenues | $ | 393,358 |  |  | $ | 65,190 |  |  | $ | 371,519 |  |  | $ | 72,221 |  |  | $ | 124,466 |  |  | $ | 1,026,754 |
(1) | Other revenues as reported in the Condensed Consolidated Statements of Operations include $7.3 million and $15.4 million of revenue for the three and six months ended June 26, 2022, respectively, and $8.7 million and $16.7 million for the three and six months ended June 27, 2021, respectively, that are part of the international reporting segment. These amounts include marketing fund contributions and sublease rental income from international franchisees in the United Kingdom that provide no significant contribution to operating income but must be reported on a gross basis under accounting requirements. The related expenses for these Other revenues are reported in Other expenses in the Condensed Consolidated Statements of Operations.

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