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Segment Information (Tables)

3 Months Ended

Mar. 30, 2025

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.

						Three Months Ended March 30, 2025
						Domestic Company-owned restaurants						North America franchising						North America commissaries						International						Total
Revenues from external customers						$	170,795					$	35,552					$	212,918					$	39,111					$	458,376
Intersegment revenues						—						1,259						51,458						—						52,717
Segment revenue						$	170,795					$	36,811					$	264,376					$	39,111					$	511,093
Less segment expenses (a):
COS - Product Costs						$	52,137					$	—					$	189,469					$	11,146					$	252,752
COS - Salaries & Benefits						57,976						—						29,982						1,568						89,526
COS - Other (d)						44,900						—						16,280						7,071						68,251
General & Administrative						10,750						9,563						9,292						8,844						38,449
Other Segment Expenses (c)						—						—						—						5,101						5,101
Segment adjusted EBITDA						$	5,032					$	27,248					$	19,353					$	5,381					$	57,014
						Three Months Ended March 31, 2024
						Domestic Company-owned restaurants						North America franchising						North America commissaries						International						Total
Revenues from external customers						$	176,224					$	35,697					$	203,287					$	46,673					$	461,881
Intersegment revenues						—						1,049						49,267						—						50,316
Segment revenue						$	176,224					$	36,746					$	252,554					$	46,673					$	512,197
Less segment expenses (a):
COS - Product Costs						$	50,528					$	—					$	182,124					$	12,494					$	245,146
COS - Salaries & Benefits						57,471						—						29,581						5,480						92,532
COS - Other (d)						43,107						—						14,582						12,881						70,570
General & Administrative (b)						10,180						8,238						9,091						8,739						36,248
Other Segment Expenses (c)						—						—						—						2,886						2,886
Segment adjusted EBITDA						$	14,938					$	28,508					$	17,176					$	4,193					$	64,815

___________________________________

(a)    Segment expenses exclude Depreciation and amortization, Stock-based compensation expense, and certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business (see reconciliation that follows).

(b)    The Company prospectively adjusted for updates in internal cost allocation methodologies in our Annual Report on Form 10-K for the year ended December 29, 2024, which increased the amount of internal general and administrative expenses allocated to the segments from Unallocated corporate expenses. These methodology updates have been reflected in the 2024 quarterly results. Refer to Note 23 of the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 29, 2024 for additional information.

(c)    Other Segment Expenses represent all operating expenses that are not included in the significant segment expense categories. The components of Other Segment Expense are advertising fund expenses and other operating expenses.

(d)    We have included “COS - Other” as a significant expense category beginning in the first quarter of 2025, consistent with the segment expense categories regularly provided to the CODM when evaluating segment performance and allocating resources. “COS - Other” includes delivery expenses, Company-owned restaurant advertising costs, insurance, rent, aggregator fees, and other costs of sales. For comparability purposes, we have recast quarterly 2024 segment results to include this expense category.

Reconciliation of Segment Results to Company Results

The following table reconciles Total Revenues from our segments to Total Revenues and Total Adjusted EBITDA from our segments to Income before income taxes (in thousands):

						Three Months Ended
						March 30, 2025						March 31, 2024
Total Segment Revenue						$	511,093					$	512,197
All Other Revenue (a)						74,331						65,207
Elimination of intersegment revenue						(67,115)						(63,488)
Total Revenue						$	518,309					$	513,916
						Three Months Ended
						March 30, 2025						March 31, 2024
Total Segment adjusted EBITDA						$	57,014					$	64,815
All Other adjusted EBITDA (a)						10,164						6,898
Unallocated corporate expenses, adjusted (b)						(17,554)						(11,148)
Elimination of Intersegment profit (loss)						—						—
Other income/(expense) adjustments to reconcile to income before income before income taxes (c)						(25,659)						(26,847)
Net interest expense						(10,079)						(11,063)
Income before income taxes						$	13,886					$	22,655

___________________________________

(a)    As noted in the commentary above, All Other revenue and adjusted EBITDA is derived from business units that do not meet the quantitative or qualitative thresholds for determining reportable segments, including: franchise contributions to marketing funds and information systems and related services used in restaurant operations.

(b)    Unallocated corporate expenses represent administrative fees incurred by the restaurant support centers, including: information systems and related services, corporate salaries and bonuses, and other corporate costs. These expenses are adjusted for depreciation and amortization, stock-based compensation expense, and certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business (see reconciliation that follows).

(c)    Other income/(expense) adjustments represent Depreciation and amortization, Stock-based compensation expense, and 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 EBITDA. For the periods above, the adjustments include:

						Three Months Ended
(in thousands)						March 30, 2025						March 31, 2024
Depreciation and amortization						$	18,343					$	17,674
International restructuring costs (see Note 9)						2,180						9,543
Net expenses due to natural disasters						892						—
Strategic initiative costs						575						—
Stock-based compensation expense						3,669						(370)
Other (income)/expense adjustments						$	25,659					$	26,847

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):

						Three Months Ended March 30, 2025
						Domestic Company-owned restaurants						North America franchising						North America commissaries						International						All Other						Elimination of Intersegment Revenue						Total
Company-owned restaurant sales						$	170,795					$	—					$	—					$	3,086					$	—					$	—					$	173,881
Franchise royalties and fees						—						36,811						—						12,504						—						(1,259)						48,056
Commissary sales						—						—						264,376						16,022						—						(51,457)						228,941
Other revenues						—						—						—						3,284						25,078						(4,605)						23,757
Advertising funds revenue						—						—						—						4,215						49,253						(9,794)						43,674
Total revenues						$	170,795					$	36,811					$	264,376					$	39,111					$	74,331					$	(67,115)					$	518,309
						Three Months Ended March 31, 2024
						Domestic Company-owned restaurants						North America franchising						North America commissaries						International						All Other						Elimination of Intersegment Revenue						Total
Company-owned restaurant sales						$	176,224					$	—					$	—					$	15,027					$	—					$	—					$	191,251
Franchise royalties and fees						—						36,746						—						11,456						—						(1,049)						47,153
Commissary sales						—						—						252,554						14,225						—						(49,267)						217,512
Other revenues						—						—						—						3,064						21,524						(3,653)						20,935
Advertising funds revenue						—						—						—						2,901						43,683						(9,519)						37,065
Total revenues						$	176,224					$	36,746					$	252,554					$	46,673					$	65,207					$	(63,488)					$	513,916

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