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Segment Information (Tables) | 12 Months Ended
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Dec. 29, 2024
Segment Reporting [Abstract] |
Schedule of segment information | The tables below present our operating results by segment (in thousands). The significant expense categories and amounts presented in the tables below align with the segment-level information that is regularly provided to the CODM. A reconciliation to Company results is included in the following section.
|  | Year Ended December 29, 2024 |  |
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | Total |  |
Revenues from external customers |  | $ | 692,736 |  | $ | 139,091 |  | $ | 831,774 |  | $ | 174,054 |  | $ | 1,837,655 |  |
Intersegment revenues |  | — |  | 4,150 |  | 205,234 |  | — |  | 209,384 |  |
Revenues |  | $ | 692,736 |  | $ | 143,241 |  | $ | 1,037,008 |  | $ | 174,054 |  | $ | 2,047,039 |  |
Less costs and expenses(a): |  |  |  |  |  |  |  |  |  |  |  |
COS - Product Costs |  | $ | 207,704 |  | $ | — |  | $ | 756,170 |  | $ | 51,889 |  | $ | 1,015,763 |  |
COS - Salaries & Benefits |  | 226,325 |  | — |  | 116,645 |  | 13,759 |  | 356,729 |  |
General & Administrative (b) |  | 39,822 |  | 35,064 |  | 37,690 |  | 38,379 |  | 150,955 |  |
Other Segment Expenses (c) |  | 194,216 |  | — |  | 77,945 |  | 56,259 |  | 328,420 |  |
Adjusted operating income |  | $ | 24,669 |  |  | $ | 108,177 |  |  | $ | 48,558 |  |  | $ | 13,768 |  |  | $ | 195,172 |  |  |
|  | Year Ended December 31, 2023 |  |
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | Total |  |
Revenues from external customers |  | $ | 726,362 |  | $ | 144,550 |  | $ | 852,361 |  | $ | 182,487 |  | $ | 1,905,760 |  |
Intersegment revenues |  | — |  | 4,267 |  | 210,614 |  | — |  | 214,881 |  |
Revenues |  | $ | 726,362 |  | $ | 148,817 |  | $ | 1,062,975 |  | $ | 182,487 |  | $ | 2,120,641 |  |
Less costs and expenses(a): |  |  |  |  |  |  |  |  |  |  |  |
COS - Product Costs |  | $ | 215,545 |  | $ | — |  | $ | 787,966 |  | $ | 54,514 |  | $ | 1,058,025 |  |
COS - Salaries & Benefits |  | 238,434 |  | — |  | 118,678 |  | 17,853 |  | 374,965 |  |
General & Administrative |  | 40,714 |  | 15,017 |  | 36,960 |  | 31,271 |  | 123,962 |  |
Other Segment Expenses (c) |  | 198,199 |  | — |  | 76,055 |  | 59,794 |  | 334,048 |  |
Adjusted operating income |  | $ | 33,470 |  |  | $ | 133,800 |  |  | $ | 43,316 |  |  | $ | 19,055 |  |  | $ | 229,641 |  |  |
|  | Year Ended December 25, 2022 |  |
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | Total |  |
Revenues from external customers |  | $ | 708,389 |  | $ | 137,399 |  | $ | 869,634 |  | $ | 158,682 |  | $ | 1,874,104 |  |
Intersegment revenues |  | — |  | 4,122 |  | 217,570 |  | — |  | 221,692 |  |
Revenues |  | $ | 708,389 |  | $ | 141,521 |  | $ | 1,087,204 |  | $ | 158,682 |  | $ | 2,095,796 |  |
Less costs and expenses(a): |  |  |  |  |  |  |  |  |  |  |  |
COS - Product Costs |  | $ | 218,732 |  | $ | — |  | $ | 820,636 |  | $ | 57,781 |  | $ | 1,097,149 |  |
COS - Salaries & Benefits |  | 237,095 |  | — |  | 113,357 |  | 4,117 |  | 354,569 |  |
General & Administrative |  | 29,510 |  | 13,639 |  | 33,291 |  | 21,889 |  | 98,329 |  |
Other Segment Expenses (c) |  | 198,674 |  | — |  | 77,389 |  | 47,360 |  | 323,423 |  |
Adjusted operating income |  | $ | 24,378 |  |  | $ | 127,882 |  |  | $ | 42,531 |  |  | $ | 27,535 |  |  | $ | 222,326 |  |  |
______________________________ (a) Costs and expenses excludes certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business (see reconciliation table that follows). (b) As noted in the commentary above, the Company prospectively adjusted for updates in internal cost allocation methodologies in 2024, which increased the amount of internal general and administrative expenses allocated to the segments from Unallocated corporate expenses. The allocation updates resulted in the following increases to segment G&A in 2024: $0.4 million to Domestic Company-Owned restaurants, $22.9 million to North America franchising, $3.3 million to International and $0.1 million to North America commissaries. There was no impact on overall company profitability, as the change was offset within Unallocated corporate expenses (see reconciliation table below). (c) Other Segment Expenses represents all operating expenses that are not included in the significant segment expense categories. The components of Other Segment Expenses are: other cost of sales that are not included in “COS - Product Costs” or “COS - Salaries & Benefits” (including, but not limited to, delivery expenses, Company-owned restaurant advertising costs, insurance, rent, utilities, and aggregator fees), advertising costs, depreciation and amortization costs, and other operating expenses. Reconciliation of Segment Results to Company Results The following table reconciles Total Revenues from our segments to Total Revenues and Total Adjusted operating income from our segments to Income before income taxes (in thousands):
|  | Year Ended
|  | 2024 |  | 2023 |  | 2022
Total Revenues from our segments |  | $ | 2,047,039 |  |  | $ | 2,120,641 |  |  | $ | 2,095,796 |
All Other revenue (a) |  | 279,385 |  |  | 296,440 |  |  | 298,282 |
Elimination of intersegment revenue |  | (267,037) |  |  | (281,368) |  |  | (291,975) |
Total Revenues |  | $ | 2,059,387 |  |  | $ | 2,135,713 |  |  | $ | 2,102,103 |
|  | Year Ended
|  | 2024 |  | 2023 |  | 2022
Total Adjusted operating income from our segments |  | $ | 195,172 |  |  | $ | 229,641 |  |  | $ | 222,326 |
All Other profit (a) |  | 4,065 |  |  | 10,116 |  |  | 10,084 |
Unallocated corporate expenses (b) |  | (51,054) |  |  | (82,759) |  |  | (74,043) |
Elimination of intersegment (profit) loss |  | — |  |  | 27 |  |  | (905) |
Other income/(expense) adjustments (c) |  | 8,521 |  |  | (9,883) |  |  | (48,432) |
Operating income |  | 156,704 |  |  | 147,142 |  |  | 109,030 |
Net interest expense |  | (42,578) |  |  | (43,469) |  |  | (25,261) |
Income before income taxes |  | $ | 114,126 |  |  | $ | 103,673 |  |  | $ | 83,769 |
______________________________ (a) As noted in the commentary above, All Other revenue and profit is derived from business units that do not meet the quantitative or qualitative thresholds for determining reportable segments, including: franchise contributions to marketing funds, information systems and related services used in restaurant operations, and sale of printing and promotional items (principally to Company-owned and franchised restaurants). (b) Unallocated corporate expenses represent administrative fees incurred by the restaurant support centers, including: information systems and related services, corporate salaries and bonuses, stock compensation expense, and other corporate costs. (c) Other income/(expense) adjustments represent certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business. As such, management excludes these items from the evaluation of Adjusted operating income. For the periods above, the adjustments include:
|  | Year Ended
(In thousands) |  | December 29, 2024 |  | December 31, 2023 |  | December 25, 2022
Gain on sale of QC Center properties (See Note 22) |  | $ | 41,289 |  |  | $ | — |  |  | $ | — |
International restructuring costs (See Note 16) |  | (27,273) |  |  | (2,178) |  |  | — |
Refranchising and impairment losses |  | (5,495) |  |  | — |  |  | (26,702) |
UK repositioning and acquisition-related costs |  | — |  |  | (4,243) |  |  | (5,223) |
Legal settlements |  | — |  |  | (577) |  |  | (15,000) |
Other costs |  | — |  |  | (2,885) |  |  | (1,507) |
Total adjustments |  | $ | 8,521 |  |  | $ | (9,883) |  |  | $ | (48,432) |
Depreciation and Amortization by Segment The following table presents depreciation and amortization by segment.
(In thousands) |  | 2024 |  | 2023 |  | 2022
Depreciation and amortization: |  |  |  |  |  |
Domestic Company-owned restaurants |  | $ | 16,560 |  | $ | 14,184 |  | $ | 11,495
North America commissaries |  | 15,780 |  | 16,046 |  | 13,299
International |  | 4,134 |  | 3,167 |  | 1,774
All Other |  | 22,396 |  | 15,572 |  | 12,681
Unallocated corporate expenses |  | 10,537 |  | 15,121 |  | 12,783
Total depreciation and amortization |  | $ | 69,407 |  | $ | 64,090 |  | $ | 52,032
Schedule of revenue disaggregated by major product line | In the following tables, revenues are disaggregated by major product line. The tables also include a reconciliation of the disaggregated revenues by the reportable segment (in thousands):
|  | Year Ended December 29, 2024
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All Other |  | Elimination of Intersegment Revenue |  | Total
Company-owned restaurant sales |  | $ | 692,736 |  |  | $ | — |  |  | $ | — |  |  | $ | 31,930 |  |  | $ | — |  |  | $ | — |  |  | $ | 724,666 |
Franchise royalties and fees |  | — |  |  | 143,241 |  |  | — |  |  | 47,941 |  |  | — |  |  | (4,150) |  |  | 187,032 |
Commissary revenues |  | — |  |  | — |  |  | 1,037,008 |  |  | 67,890 |  |  | — |  |  | (205,234) |  |  | 899,664 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 12,701 |  |  | 85,914 |  |  | (14,933) |  |  | 83,682 |
Advertising funds revenue |  | — |  |  | — |  |  | — |  |  | 13,592 |  |  | 193,471 |  |  | (42,720) |  |  | 164,343 |
Total Revenues |  | $ | 692,736 |  |  | $ | 143,241 |  |  | $ | 1,037,008 |  |  | $ | 174,054 |  |  | $ | 279,385 |  |  | $ | (267,037) |  |  | $ | 2,059,387 |
|  | Year Ended December 31, 2023
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All Other |  | Elimination of Intersegment Revenue |  | Total
Company-owned restaurant sales |  | $ | 726,362 |  |  | $ | — |  |  | $ | — |  |  | $ | 34,463 |  |  | $ | — |  |  | $ | — |  |  | $ | 760,825 |
Franchise royalties and fees |  | — |  |  | 148,817 |  |  | — |  |  | 50,437 |  |  | — |  |  | (4,267) |  |  | 194,987 |
Commissary revenues |  | — |  |  | — |  |  | 1,062,975 |  |  | 72,287 |  |  | — |  |  | (210,614) |  |  | 924,648 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 12,617 |  |  | 101,789 |  |  | (16,369) |  |  | 98,037 |
Advertising funds revenue |  | — |  |  | — |  |  | — |  |  | 12,683 |  |  | 194,651 |  |  | (50,118) |  |  | 157,216 |
Total Revenues |  | $ | 726,362 |  |  | $ | 148,817 |  |  | $ | 1,062,975 |  |  | $ | 182,487 |  |  | $ | 296,440 |  |  | $ | (281,368) |  |  | $ | 2,135,713 |
|  | Year Ended December 25, 2022
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All Other |  | Elimination of Intersegment Revenue |  | Total
Company-owned restaurant sales |  | $ | 708,389 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 708,389 |
Franchise royalties and fees |  | — |  |  | 141,521 |  |  | — |  |  | 49,422 |  |  | — |  |  | (4,122) |  |  | 186,821 |
Commissary revenues |  | — |  |  | — |  |  | 1,087,204 |  |  | 80,481 |  |  | — |  |  | (217,570) |  |  | 950,115 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 14,135 |  |  | 107,194 |  |  | (19,683) |  |  | 101,646 |
Advertising funds revenue |  | — |  |  | — |  |  | — |  |  | 14,644 |  |  | 191,088 |  |  | (50,600) |  |  | 155,132 |
Total Revenues |  | $ | 708,389 |  |  | $ | 141,521 |  |  | $ | 1,087,204 |  |  | $ | 158,682 |  |  | $ | 298,282 |  |  | $ | (291,975) |  |  | $ | 2,102,103 |

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