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Segment Information (Tables) | 9 Months Ended
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Sep. 25, 2022
Segment Reporting [Abstract] |
Schedule of segment information | Our segment information is as follows:
| Three Months Ended |  | Nine Months Ended
(In thousands) | September 25, 2022 |  | September 26, 2021 |  | September 25, 2022 |  | September 26, 2021
Revenues: |  |  |  |  |  |  |
Domestic Company-owned restaurants | $ | 166,050 |  | $ | 191,584 |  | $ | 536,226 |  | $ | 584,942
North America franchising | 33,712 |  | 31,933 |  | 102,897 |  | 97,123
North America commissaries | 216,115 |  | 189,224 |  | 645,177 |  | 560,743
International | 37,707 |  | 46,880 |  | 119,696 |  | 135,761
All others | 56,928 |  | 53,161 |  | 171,873 |  | 160,967
Total revenues | $ | 510,512 |  | $ | 512,782 |  | $ | 1,575,869 |  | $ | 1,539,536
Intersegment revenues: |  |  |  |  |  |  |
North America franchising | $ | 996 |  | $ | 1,037 |  | $ | 3,097 |  | $ | 3,138
North America commissaries | 51,330 |  | 53,454 |  | 162,591 |  | 158,952
All others | 15,562 |  | 18,522 |  | 50,830 |  | 56,613
Total intersegment revenues | $ | 67,888 |  | $ | 73,013 |  | $ | 216,518 |  | $ | 218,703
Operating income: |  |  |  |  |  |  |
Domestic Company-owned restaurants(a) | $ | 3,667 |  | $ | 9,480 |  | $ | 11,579 |  | $ | 40,165
North America franchising | 31,464 |  | 29,830 |  | 96,225 |  | 90,791
North America commissaries | 8,425 |  | 9,598 |  | 28,717 |  | 29,089
International(b) | 1,136 |  | 9,618 |  | 12,897 |  | 26,665
All others | 2,037 |  | 3,848 |  | 7,943 |  | 14,860
Unallocated corporate expenses(c) | (27,684) |  |  | (23,158) |  |  | (84,138) |  |  | (70,937) |
Elimination of intersegment (profits) losses | 416 |  |  | (639) |  | (423) |  |  | (557)
Total operating income | $ | 19,461 |  | $ | 38,577 |  | $ | 72,800 |  | $ | 130,076
Property and equipment, net: |  |  |  |  |  |  |
Domestic Company-owned restaurants | $ | 229,480 |  |  |  |  |  |
North America commissaries | 153,604 |  |  |  |  |  |
International | 14,601 |  |  |  |  |  |
All others | 122,927 |  |  |  |  |  |
Unallocated corporate assets | 246,006 |  |  |  |  |  |
Accumulated depreciation and amortization | (535,724) |  |  |  |  |  |  |
Total property and equipment, net | $ | 230,894 |  |  |  |  |  |
(a) | 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 nine months ended September 25, 2022. See Note 10 for additional information.
(b) | The three months ended September 25, 2022 includes a charge of $4.1 million related to the reserve of certain accounts and notes receivable and operating lease right-of-use assets impairment associated with the termination of a significant franchisee in the United Kingdom. The nine months ended September 25, 2022 also includes $3.5 million of one-time, non-cash reserves for certain accounts receivable and impairments of reacquired franchise rights. See Notes 2 and 10 for additional information.
(c) | Unallocated corporate expenses includes $10.0 million for certain legal settlements for the three months ended September 25, 2022. For the nine months ended September 25, 2022, Unallocated corporate expenses includes $13.9 million of one-time, non-cash reserves of certain notes receivable, $15.0 million for certain legal settlements (see Note 9 for more information), and $1.5 million of advisory fees and severance costs associated with the transition of certain executives. Unallocated corporate expense includes $2.2 million and $9.4 million of reorganization costs for the three and nine months ended September 26, 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 September 25, 2022
Major Products/Services Lines | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales | $ | 166,050 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 166,050 |
Franchise royalties and fees | — |  |  | 34,708 |  |  | — |  |  | 11,619 |  |  | — |  |  | 46,327 |
Commissary sales | — |  |  | — |  |  | 267,445 |  |  | 19,116 |  |  | — |  |  | 286,561 |
Other revenues | — |  |  | — |  |  | — |  |  | 6,972 |  |  | 72,490 |  |  | 79,462 |
Eliminations | — |  |  | (996) |  |  | (51,330) |  |  | — |  |  | (15,562) |  |  | (67,888) |
Total segment revenues | $ | 166,050 |  |  | $ | 33,712 |  |  | $ | 216,115 |  |  | $ | 37,707 |  |  | $ | 56,928 |  |  | $ | 510,512 |
International other revenues(a) | — |  |  | — |  |  | — |  |  | (6,972) |  |  | 6,972 |  |  | — |
Total revenues | $ | 166,050 |  |  | $ | 33,712 |  |  | $ | 216,115 |  |  | $ | 30,735 |  |  | $ | 63,900 |  |  | $ | 510,512 |
| Reportable Segments
| Three Months Ended September 26, 2021
Major Products/Services Lines | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales | $ | 191,584 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 191,584 |
Franchise royalties and fees | — |  |  | 32,970 |  |  | — |  |  | 14,031 |  |  | — |  |  | 47,001 |
Commissary sales | — |  |  | — |  |  | 242,678 |  |  | 24,377 |  |  | — |  |  | 267,055 |
Other revenues | — |  |  | — |  |  | — |  |  | 8,472 |  |  | 71,683 |  |  | 80,155 |
Eliminations | — |  |  | (1,037) |  |  | (53,454) |  |  | — |  |  | (18,522) |  |  | (73,013) |
Total segment revenues | $ | 191,584 |  |  | $ | 31,933 |  |  | $ | 189,224 |  |  | $ | 46,880 |  |  | $ | 53,161 |  |  | $ | 512,782 |
International other revenues(a) | — |  |  | — |  |  | — |  |  | (8,472) |  |  | 8,472 |  |  | — |
Total revenues | $ | 191,584 |  |  | $ | 31,933 |  |  | $ | 189,224 |  |  | $ | 38,408 |  |  | $ | 61,633 |  |  | $ | 512,782 |
| Reportable Segments
| Nine Months Ended September 25, 2022
Major Products/Services Lines | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales | $ | 536,226 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 536,226 |
Franchise royalties and fees | — |  |  | 105,994 |  |  | — |  |  | 37,097 |  |  | — |  |  | 143,091 |
Commissary sales | — |  |  | — |  |  | 807,768 |  |  | 60,213 |  |  | — |  |  | 867,981 |
Other revenues | — |  |  | — |  |  | — |  |  | 22,386 |  |  | 222,703 |  |  | 245,089 |
Eliminations | — |  |  | (3,097) |  |  | (162,591) |  |  | — |  |  | (50,830) |  |  | (216,518) |
Total segment revenues | $ | 536,226 |  |  | $ | 102,897 |  |  | $ | 645,177 |  |  | $ | 119,696 |  |  | $ | 171,873 |  |  | $ | 1,575,869 |
International other revenues(a) | — |  |  | — |  |  | — |  |  | (22,386) |  |  | 22,386 |  |  | — |
Total revenues | $ | 536,226 |  |  | $ | 102,897 |  |  | $ | 645,177 |  |  | $ | 97,310 |  |  | $ | 194,259 |  |  | $ | 1,575,869 |
| Reportable Segments
| Nine Months Ended September 26, 2021
Major Products/Services Lines | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales | $ | 584,942 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 584,942 |
Franchise royalties and fees | — |  |  | 100,261 |  |  | — |  |  | 39,396 |  |  | — |  |  | 139,657 |
Commissary sales | — |  |  | — |  |  | 719,695 |  |  | 71,233 |  |  | — |  |  | 790,928 |
Other revenues | — |  |  | — |  |  | — |  |  | 25,132 |  |  | 217,580 |  |  | 242,712 |
Eliminations | — |  |  | (3,138) |  |  | (158,952) |  |  | — |  |  | (56,613) |  |  | (218,703) |
Total segment revenues | $ | 584,942 |  |  | $ | 97,123 |  |  | $ | 560,743 |  |  | $ | 135,761 |  |  | $ | 160,967 |  |  | $ | 1,539,536 |
International other revenues(a) | — |  |  | — |  |  | — |  |  | (25,132) |  |  | 25,132 |  |  | — |
Total revenues | $ | 584,942 |  |  | $ | 97,123 |  |  | $ | 560,743 |  |  | $ | 110,629 |  |  | $ | 186,099 |  |  | $ | 1,539,536 |
(a) | Other revenues as reported in the Condensed Consolidated Statements of Operations include $7.0 million and $22.4 million of revenue for the three and nine months ended September 25, 2022, respectively, and $8.5 million and $25.1 million for the three and nine months ended September 26, 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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