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Segment Information (Tables) | 3 Months Ended
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Mar. 26, 2023
Segment Reporting [Abstract] |
Schedule of segment information | The following tables present our segment information.
|  |  |  | Three Months Ended
(In thousands) |  |  |  |  |  | March 26, 2023 |  | March 27, 2022
Revenues: |  |  |  |  |  |  |  |
Domestic Company-owned restaurants |  |  |  |  |  | $ | 179,866 |  | $ | 198,765
North America franchising |  |  |  |  |  | 36,072 |  | 34,268
North America commissaries |  |  |  |  |  | 212,566 |  | 209,679
International |  |  |  |  |  | 38,704 |  | 42,707
All others |  |  |  |  |  | 59,841 |  | 57,273
Total revenues |  |  |  |  |  | $ | 527,049 |  | $ | 542,692
Intersegment revenues: |  |  |  |  |  |  |  |
North America franchising |  |  |  |  |  | $ | 1,052 |  | $ | 1,053
North America commissaries |  |  |  |  |  | 51,817 |  | 58,507
All others |  |  |  |  |  | 16,835 |  | 19,379
Total intersegment revenues |  |  |  |  |  | $ | 69,704 |  | $ | 78,939
Operating income: |  |  |  |  |  |  |  |
Domestic Company-owned restaurants (a) |  |  |  |  |  | $ | 6,650 |  | $ | 1,989
North America franchising |  |  |  |  |  | 33,400 |  | 32,137
North America commissaries |  |  |  |  |  | 10,730 |  | 9,334
International (b) |  |  |  |  |  | 7,232 |  | 4,455
All others |  |  |  |  |  | 3,157 |  | 3,719
Unallocated corporate expenses (c) |  |  |  |  |  | (23,366) |  |  | (37,111) |
Elimination of intersegment (profits) losses |  |  |  |  |  | (7) |  |  | (88)
Total operating income |  |  |  |  |  | $ | 37,796 |  | $ | 14,435
(In thousands) |  |  |  |  |  | As of March 26, 2023 |  |
Property and equipment, net: |  |  |  |  |  |  |  |
Domestic Company-owned restaurants |  |  |  |  |  | $ | 242,755 |  |
North America commissaries |  |  |  |  |  | 152,411 |  |
International |  |  |  |  |  | 17,118 |  |
All others |  |  |  |  |  | 135,467 |  |
Unallocated corporate assets |  |  |  |  |  | 257,368 |  |
Accumulated depreciation and amortization |  |  |  |  |  | (551,975) |  |  |
Total property and equipment, net |  |  |  |  |  | $ | 253,144 |  |
___________________________________ (a) The three months ended March 27, 2022 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. See “Note 10. Divestitures” for additional information. (b) The three months ended March 27, 2022 includes $3.5 million of one-time, non-cash reserves for certain accounts receivable and impairments of reacquired franchise rights. See “Notes 2. Significant Accounting Policies” and “10. Divestitures” for additional information. (c) The three months ended March 26, 2023 includes $1.4 million of severance and related costs associated with the transition of certain executives. For the three months ended March 27, 2022, Unallocated corporate expenses includes $13.9 million of one-time, non-cash reserves of certain notes receivable and $5.0 million for certain legal settlements. See “Notes 2. Significant Accounting Policies” and “9. Litigation, Commitments and Contingencies” 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 March 26, 2023
Major Products/Services Lines |  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales |  | $ | 179,866 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 179,866 |
Franchise royalties and fees |  | — |  |  | 37,124 |  |  | — |  |  | 12,491 |  |  | — |  |  | 49,615 |
Commissary sales |  | — |  |  | — |  |  | 264,383 |  |  | 18,972 |  |  | — |  |  | 283,355 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 7,241 |  |  | 76,676 |  |  | 83,917 |
Eliminations |  | — |  |  | (1,052) |  |  | (51,817) |  |  | — |  |  | (16,835) |  |  | (69,704) |
Total segment revenues |  | 179,866 |  |  | 36,072 |  |  | 212,566 |  |  | 38,704 |  |  | 59,841 |  |  | 527,049 |
International other revenues (a) |  | — |  |  | — |  |  | — |  |  | (7,241) |  |  | 7,241 |  |  | — |
Total revenues |  | $ | 179,866 |  |  | $ | 36,072 |  |  | $ | 212,566 |  |  | $ | 31,463 |  |  | $ | 67,082 |  |  | $ | 527,049 |
|  | Reportable Segments
|  | Three Months Ended March 27, 2022
Major Products/Services Lines |  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales |  | $ | 198,765 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 198,765 |
Franchise royalties and fees |  | — |  |  | 35,321 |  |  | — |  |  | 13,435 |  |  | — |  |  | 48,756 |
Commissary sales |  | — |  |  | — |  |  | 268,186 |  |  | 21,182 |  |  | — |  |  | 289,368 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 8,090 |  |  | 76,652 |  |  | 84,742 |
Eliminations |  | — |  |  | (1,053) |  |  | (58,507) |  |  | — |  |  | (19,379) |  |  | (78,939) |
Total segment revenues |  | 198,765 |  |  | 34,268 |  |  | 209,679 |  |  | 42,707 |  |  | 57,273 |  |  | 542,692 |
International other revenues (a) |  | — |  |  | — |  |  | — |  |  | (8,090) |  |  | 8,090 |  |  | — |
Total revenues |  | $ | 198,765 |  |  | $ | 34,268 |  |  | $ | 209,679 |  |  | $ | 34,617 |  |  | $ | 65,363 |  |  | $ | 542,692 |
___________________________________ (a) Other revenues as reported in the Condensed Consolidated Statements of Operations include $7.2 million and $8.1 million of revenues for the three months ended March 26, 2023 and March 27, 2022, 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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