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Segment Information (Tables) | 9 Months Ended
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Sep. 29, 2024
Segment Reporting [Abstract] |
Schedule of segment information | The following tables present our segment information.
|  | Three Months Ended |  | Nine Months Ended
(In thousands) |  | September 29, 2024 |  | September 24, 2023 |  | September 29, 2024 |  | September 24, 2023
Revenues: |  |  |  |  |  |  |  |
Domestic Company-owned restaurants |  | $ | 168,672 |  | $ | 177,195 |  | $ | 518,103 |  | $ | 532,841
North America franchising |  | 33,831 |  | 35,041 |  | 103,937 |  | 105,824
North America commissaries |  | 210,389 |  | 204,887 |  | 611,873 |  | 624,433
International |  | 39,098 |  | 48,481 |  | 132,318 |  | 128,539
All others |  | 54,817 |  | 57,208 |  | 162,386 |  | 172,754
Total revenues |  | $ | 506,807 |  | $ | 522,812 |  | $ | 1,528,617 |  | $ | 1,564,391
Intersegment revenues: |  |  |  |  |  |  |  |
North America franchising |  | $ | 1,011 |  | $ | 1,040 |  | $ | 3,101 |  | $ | 3,117
North America commissaries |  | 52,063 |  | 51,237 |  | 151,633 |  | 154,640
All others |  | 13,472 |  | 16,180 |  | 40,422 |  | 49,363
Total intersegment revenues |  | $ | 66,546 |  | $ | 68,457 |  | $ | 195,156 |  | $ | 207,120
Operating income: |  |  |  |  |  |  |  |
Domestic Company-owned restaurants (a) |  | $ | (1,748) |  | $ | 6,147 |  | $ | 13,388 |  | $ | 19,438
North America franchising |  | 31,865 |  | 32,234 |  | 97,985 |  | 97,745
North America commissaries (b) |  | 53,599 |  | 10,691 |  | 77,337 |  | 31,818
International (c) |  | 42 |  | 2,270 |  | (8,612) |  | 13,265
All others |  | 2,834 |  | 2,379 |  | 8,202 |  | 6,879
Unallocated corporate expenses (d) |  | (21,106) |  |  | (20,792) |  |  | (60,346) |  |  | (63,859) |
Elimination of intersegment (profits) losses |  | (257) |  |  | (1,061) |  | (781) |  |  | (710)
Total operating income |  | $ | 65,229 |  | $ | 31,868 |  | $ | 127,173 |  | $ | 104,576
Property and equipment, net: |  |  |  |  |  |  |  |
Domestic Company-owned restaurants |  | $ | 265,002 |  |  |  |  |  |
North America commissaries |  | 150,527 |  |  |  |  |  |
International |  | 26,902 |  |  |  |  |  |
All others |  | 140,900 |  |  |  |  |  |
Unallocated corporate assets |  | 248,855 |  |  |  |  |  |
Accumulated depreciation and amortization |  | (565,678) |  |  |  |  |  |  |
Total property and equipment, net |  | $ | 266,508 |  |  |  |  |  |
___________________________________ (a) The three and nine months ended September 29, 2024 includes $1.5 million and $5.5 million, respectively, of non-cash impairment and remeasurement charges related primarily to fixed and intangible assets from the refranchising of 15 Domestic restaurants. See “Note 11. Divestitures”. (b) The three and nine months ended September 29, 2024 includes $41.3 million pre-tax gain on sale of Texas and Florida QC Center properties, net of transaction costs. See “Note 11. Divestitures”. (c) The three and nine months ended September 29, 2024 includes $3.9 million and $19.5 million, respectively, of costs related to the International Transformation Plan. See “Note 9. Restructuring” for additional information. The three and nine months ended September 24, 2023 includes $1.2 million and $2.5 million of costs associated with repositioning the UK portfolio as well as transaction costs related to the acquisition of restaurants from franchisees. (d) The nine months ended September 24, 2023 includes $2.0 million of severance and related costs associated with the transition of certain executives. The three and nine months ended September 24, 2023 includes $0.6 million for certain legal settlements.
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 29, 2024
Major Products/Services Lines |  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales |  | $ | 168,672 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,425 |  |  | $ | — |  |  | $ | 171,097 |
Franchise royalties and fees |  | — |  |  | 34,842 |  |  | — |  |  | 11,999 |  |  | — |  |  | 46,841 |
Commissary sales |  | — |  |  | — |  |  | 262,452 |  |  | 18,600 |  |  | — |  |  | 281,052 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 6,074 |  |  | 68,289 |  |  | 74,363 |
Eliminations |  | — |  |  | (1,011) |  |  | (52,063) |  |  | — |  |  | (13,472) |  |  | (66,546) |
Total segment revenues |  | 168,672 |  |  | 33,831 |  |  | 210,389 |  |  | 39,098 |  |  | 54,817 |  |  | 506,807 |
International other revenues (a) |  | — |  |  | — |  |  | — |  |  | (6,074) |  |  | 6,074 |  |  | — |
Total revenues |  | $ | 168,672 |  |  | $ | 33,831 |  |  | $ | 210,389 |  |  | $ | 33,024 |  |  | $ | 60,891 |  |  | $ | 506,807 |
|  | Reportable Segments
|  | Three Months Ended September 24, 2023
Major Products/Services Lines |  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales |  | $ | 177,195 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,013 |  |  | $ | — |  |  | $ | 191,208 |
Franchise royalties and fees |  | — |  |  | 36,081 |  |  | — |  |  | 12,219 |  |  | — |  |  | 48,300 |
Commissary sales |  | — |  |  | — |  |  | 256,124 |  |  | 16,695 |  |  | — |  |  | 272,819 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 5,554 |  |  | 73,388 |  |  | 78,942 |
Eliminations |  | — |  |  | (1,040) |  |  | (51,237) |  |  | — |  |  | (16,180) |  |  | (68,457) |
Total segment revenues |  | 177,195 |  |  | 35,041 |  |  | 204,887 |  |  | 48,481 |  |  | 57,208 |  |  | 522,812 |
International other revenues (a) |  | — |  |  | — |  |  | — |  |  | (5,554) |  |  | 5,554 |  |  | — |
Total revenues |  | $ | 177,195 |  |  | $ | 35,041 |  |  | $ | 204,887 |  |  | $ | 42,927 |  |  | $ | 62,762 |  |  | $ | 522,812 |
|  | Reportable Segments
|  | Nine Months Ended September 29, 2024
Major Products/Services Lines |  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales |  | $ | 518,103 |  |  | $ | — |  |  | $ | — |  |  | $ | 28,885 |  |  | $ | — |  |  | $ | 546,988 |
Franchise royalties and fees |  | — |  |  | 107,038 |  |  | — |  |  | 35,598 |  |  | — |  |  | 142,636 |
Commissary sales |  | — |  |  | — |  |  | 763,506 |  |  | 48,950 |  |  | — |  |  | 812,456 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 18,885 |  |  | 202,808 |  |  | 221,693 |
Eliminations |  | — |  |  | (3,101) |  |  | (151,633) |  |  | — |  |  | (40,422) |  |  | (195,156) |
Total segment revenues |  | 518,103 |  |  | 103,937 |  |  | 611,873 |  |  | 132,318 |  |  | 162,386 |  |  | 1,528,617 |
International other revenues (a) |  | — |  |  | — |  |  | — |  |  | (18,885) |  |  | 18,885 |  |  | — |
Total revenues |  | $ | 518,103 |  |  | $ | 103,937 |  |  | $ | 611,873 |  |  | $ | 113,433 |  |  | $ | 181,271 |  |  | $ | 1,528,617 |
|  | Reportable Segments
|  | Nine Months Ended September 24, 2023
Major Products/Services Lines |  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All others |  | Total
Company-owned restaurant sales |  | $ | 532,841 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,031 |  |  | $ | — |  |  | $ | 549,872 |
Franchise royalties and fees |  | — |  |  | 108,941 |  |  | — |  |  | 36,906 |  |  | — |  |  | 145,847 |
Commissary sales |  | — |  |  | — |  |  | 779,073 |  |  | 55,061 |  |  | — |  |  | 834,134 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 19,541 |  |  | 222,117 |  |  | 241,658 |
Eliminations |  | — |  |  | (3,117) |  |  | (154,640) |  |  | — |  |  | (49,363) |  |  | (207,120) |
Total segment revenues |  | 532,841 |  |  | 105,824 |  |  | 624,433 |  |  | 128,539 |  |  | 172,754 |  |  | 1,564,391 |
International other revenues (a) |  | — |  |  | — |  |  | — |  |  | (19,541) |  |  | 19,541 |  |  | — |
Total revenues |  | $ | 532,841 |  |  | $ | 105,824 |  |  | $ | 624,433 |  |  | $ | 108,998 |  |  | $ | 192,295 |  |  | $ | 1,564,391 |
___________________________________ (a) Other revenues as reported in the Condensed Consolidated Statements of Operations include $6.1 million and $18.9 million of revenues for the three and nine months ended September 29, 2024, respectively, and $5.6 million and $19.5 million of revenues for the three and nine months ended September 24, 2023, 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 income before income taxes 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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