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Segment Information (Tables) | 6 Months Ended
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Jun. 29, 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 June 29, 2025
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | Total
Revenues from external customers |  | $ | 175,797 |  | $ | 35,359 |  | $ | 214,846 |  | $ | 44,184 |  | $ | 470,186
Intersegment revenues |  | — |  | 1,244 |  | 52,813 |  | — |  | 54,057
Segment revenue |  | $ | 175,797 |  | $ | 36,603 |  | $ | 267,659 |  | $ | 44,184 |  | $ | 524,243
Less segment expenses (a): |  |  |  |  |  |  |  |  |  |
COS - Product Costs |  | $ | 53,196 |  | $ | — |  | $ | 190,554 |  | $ | 13,073 |  | $ | 256,823
COS - Salaries & Benefits |  | 57,203 |  | — |  | 30,061 |  | 1,964 |  | 89,228
COS - Other (d) |  | 45,586 |  | — |  | 16,378 |  | 9,370 |  | 71,334
General & Administrative |  | 9,948 |  | 9,760 |  | 11,014 |  | 9,282 |  | 40,004
Other Segment Expenses (c) |  | — |  | — |  | — |  | 4,858 |  | 4,858
Segment adjusted EBITDA |  | $ | 9,864 |  |  | $ | 26,843 |  |  | $ | 19,652 |  |  | $ | 5,637 |  |  | $ | 61,996 |
|  | Three Months Ended June 30, 2024
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | Total
Revenues from external customers |  | $ | 173,207 |  | $ | 34,409 |  | $ | 198,197 |  | $ | 46,547 |  | $ | 452,360
Intersegment revenues |  | — |  | 1,041 |  | 50,303 |  | — |  | 51,344
Segment revenue |  | $ | 173,207 |  | $ | 35,450 |  | $ | 248,500 |  | $ | 46,547 |  | $ | 503,704
Less segment expenses (a): |  |  |  |  |  |  |  |  |  |
COS - Product Costs |  | $ | 50,961 |  | $ | — |  | $ | 181,272 |  | $ | 13,735 |  | $ | 245,968
COS - Salaries & Benefits |  | 56,507 |  | — |  | 28,911 |  | 5,023 |  | 90,441
COS - Other (d) |  | 42,794 |  | — |  | 14,328 |  | 11,452 |  | 68,574
General & Administrative (b) |  | 9,471 |  | 8,243 |  | 8,947 |  | 9,575 |  | 36,236
Other Segment Expenses (c) |  | — |  | — |  | — |  | 3,049 |  | 3,049
Segment adjusted EBITDA |  | $ | 13,474 |  |  | $ | 27,207 |  |  | $ | 15,042 |  |  | $ | 3,713 |  |  | $ | 59,436 |
|  | Six Months Ended June 29, 2025
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | Total
Revenues from external customers |  | $ | 346,592 |  | $ | 70,911 |  | $ | 427,765 |  | $ | 83,295 |  | $ | 928,563
Intersegment revenues |  | — |  | 2,503 |  | 104,271 |  | — |  | 106,774
Segment revenue |  | $ | 346,592 |  | $ | 73,414 |  | $ | 532,036 |  | $ | 83,295 |  | $ | 1,035,337
Less segment expenses (a): |  |  |  |  |  |  |  |  |  |
COS - Product Costs |  | $ | 105,333 |  | $ | — |  | $ | 380,024 |  | $ | 24,220 |  | $ | 509,577
COS - Salaries & Benefits |  | 115,180 |  | — |  | 60,043 |  | 3,531 |  | 178,754
COS - Other (d) |  | 90,485 |  | — |  | 32,659 |  | 16,440 |  | 139,584
General & Administrative |  | 20,698 |  | 19,323 |  | 20,306 |  | 18,126 |  | 78,453
Other Segment Expenses (c) |  | — |  | — |  | — |  | 9,959 |  | 9,959
Segment adjusted EBITDA |  | $ | 14,896 |  |  | $ | 54,091 |  |  | $ | 39,004 |  |  | $ | 11,019 |  |  | $ | 119,010 |
|  | Six Months Ended June 30, 2024
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | Total
Revenues from external customers |  | $ | 349,431 |  | $ | 70,106 |  | $ | 401,484 |  | $ | 93,220 |  | $ | 914,241
Intersegment revenues |  | — |  | 2,090 |  | 99,570 |  | — |  | 101,660
Segment revenue |  | $ | 349,431 |  | $ | 72,196 |  | $ | 501,054 |  | $ | 93,220 |  | $ | 1,015,901
Less segment expenses (a): |  |  |  |  |  |  |  |  |  |
COS - Product Costs |  | $ | 101,489 |  | $ | — |  | $ | 363,397 |  | $ | 26,228 |  | $ | 491,114
COS - Salaries & Benefits |  | 113,978 |  | — |  | 58,492 |  | 10,503 |  | 182,973
COS - Other (d) |  | 85,901 |  | — |  | 28,911 |  | 24,334 |  | 139,146
General & Administrative (b) |  | 19,650 |  | 16,482 |  | 18,037 |  | 18,314 |  | 72,483
Other Segment Expenses (c) |  | — |  | — |  | — |  | 5,935 |  | 5,935
Segment adjusted EBITDA |  | $ | 28,413 |  |  | $ | 55,714 |  |  | $ | 32,217 |  |  | $ | 7,906 |  |  | $ | 124,250 |
___________________________________ (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 comparable 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 revenue from our segments to Total revenues and total adjusted EBITDA from our segments to Income before income taxes (in thousands):
|  | Three Months Ended |  | Six Months Ended
|  | June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
Total Segment revenue |  | $ | 524,243 |  |  | $ | 503,704 |  |  | $ | 1,035,337 |  |  | $ | 1,015,901 |
All Other Revenue (a) |  | 73,761 |  |  | 69,312 |  |  | 148,092 |  |  | 134,519 |
Elimination of intersegment revenue |  | (68,838) |  |  | (65,122) |  |  | (135,954) |  |  | (128,610) |
Total revenues |  | $ | 529,166 |  |  | $ | 507,894 |  |  | $ | 1,047,475 |  |  | $ | 1,021,810 |
|  | Three Months Ended |  | Six Months Ended
|  | June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
Total Segment adjusted EBITDA |  | $ | 61,996 |  |  | $ | 59,436 |  |  | $ | 119,010 |  |  | $ | 124,250 |
All Other adjusted EBITDA (a) |  | 9,233 |  |  | 5,817 |  |  | 19,397 |  |  | 12,714 |
Unallocated corporate expenses, adjusted (b) |  | (18,614) |  |  | (6,333) |  |  | (36,168) |  |  | (17,479) |
Other income/(expense) adjustments to reconcile to income before income before income taxes (c) |  | (28,125) |  |  | (30,694) |  |  | (53,784) |  |  | (57,541) |
Net interest expense |  | (10,584) |  |  | (10,896) |  |  | (20,663) |  |  | (21,959) |
Income before income taxes |  | $ | 13,906 |  |  | $ | 17,330 |  |  | $ | 27,792 |  |  | $ | 39,985 |
___________________________________ (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. These consist of operations that derive revenues from franchise contributions to marketing funds and information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms. Our largest marketing fund is PJMF, which is designed to operate at break-even for the purpose of designing and administering advertising and promotional programs for all participating Domestic restaurants. Technology-based franchisee fees are meant to offset the costs of building, operating, and depreciating technology that supports franchisee operations. As such, these fees may vary from period to period, as they are designed to operate near break-even over time including the impact of depreciation. (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 |  | Six Months Ended
(in thousands) |  | June 29, 2025 |  | June 30, 2024 |  | June 29, 2025 |  | June 30, 2024
Depreciation and amortization |  | $ | 18,819 |  |  | $ | 17,594 |  |  | $ | 37,162 |  |  | $ | 35,268 |
Stock-based compensation expense |  | 3,824 |  |  | 2,915 |  |  | 7,493 |  |  | 2,545 |
International restructuring costs (see Note 9) |  | 2,451 |  |  | 6,185 |  |  | 4,631 |  |  | 15,728 |
Other costs |  | 3,031 |  |  | 4,000 |  |  | 4,498 |  |  | 4,000 |
Other (income)/expense adjustments |  | $ | 28,125 |  |  | $ | 30,694 |  |  | $ | 53,784 |  |  | $ | 57,541 |
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 June 29, 2025
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All Other |  | Elimination of Intersegment Revenue |  | Total
Company-owned restaurant sales |  | $ | 175,797 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,192 |  |  | $ | — |  |  | $ | — |  |  | $ | 178,989 |
Franchise royalties and fees |  | — |  |  | 36,603 |  |  | — |  |  | 12,943 |  |  | — |  |  | (1,244) |  |  | 48,302 |
Commissary sales |  | — |  |  | — |  |  | 267,659 |  |  | 19,730 |  |  | — |  |  | (52,813) |  |  | 234,576 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 3,409 |  |  | 24,301 |  |  | (4,574) |  |  | 23,136 |
Advertising funds revenue |  | — |  |  | — |  |  | — |  |  | 4,910 |  |  | 49,460 |  |  | (10,207) |  |  | 44,163 |
Total revenues |  | $ | 175,797 |  |  | $ | 36,603 |  |  | $ | 267,659 |  |  | $ | 44,184 |  |  | $ | 73,761 |  |  | $ | (68,838) |  |  | $ | 529,166 |
|  | Three Months Ended June 30, 2024
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All Other |  | Elimination of Intersegment Revenue |  | Total
Company-owned restaurant sales |  | $ | 173,207 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,433 |  |  | $ | — |  |  | $ | — |  |  | $ | 184,640 |
Franchise royalties and fees |  | — |  |  | 35,450 |  |  | — |  |  | 12,143 |  |  | — |  |  | (1,041) |  |  | 46,552 |
Commissary sales |  | — |  |  | — |  |  | 248,500 |  |  | 16,125 |  |  | — |  |  | (50,303) |  |  | 214,322 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 3,787 |  |  | 20,154 |  |  | (3,531) |  |  | 20,410 |
Advertising funds revenue |  | — |  |  | — |  |  | — |  |  | 3,059 |  |  | 49,158 |  |  | (10,247) |  |  | 41,970 |
Total revenues |  | $ | 173,207 |  |  | $ | 35,450 |  |  | $ | 248,500 |  |  | $ | 46,547 |  |  | $ | 69,312 |  |  | $ | (65,122) |  |  | $ | 507,894 |
|  | Six Months Ended June 29, 2025
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All Other |  | Elimination of Intersegment Revenue |  | Total
Company-owned restaurant sales |  | $ | 346,592 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,278 |  |  | $ | — |  |  | $ | — |  |  | $ | 352,870 |
Franchise royalties and fees |  | — |  |  | 73,414 |  |  | — |  |  | 25,447 |  |  | — |  |  | (2,503) |  |  | 96,358 |
Commissary sales |  | — |  |  | — |  |  | 532,036 |  |  | 35,752 |  |  | — |  |  | (104,271) |  |  | 463,517 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 6,693 |  |  | 49,380 |  |  | (9,180) |  |  | 46,893 |
Advertising funds revenue |  | — |  |  | — |  |  | — |  |  | 9,125 |  |  | 98,712 |  |  | (20,000) |  |  | 87,837 |
Total revenues |  | $ | 346,592 |  |  | $ | 73,414 |  |  | $ | 532,036 |  |  | $ | 83,295 |  |  | $ | 148,092 |  |  | $ | (135,954) |  |  | $ | 1,047,475 |
|  | Six Months Ended June 30, 2024
|  | Domestic Company-owned restaurants |  | North America franchising |  | North America commissaries |  | International |  | All Other |  | Elimination of Intersegment Revenue |  | Total
Company-owned restaurant sales |  | $ | 349,431 |  |  | $ | — |  |  | $ | — |  |  | $ | 26,460 |  |  | $ | — |  |  | $ | — |  |  | $ | 375,891 |
Franchise royalties and fees |  | — |  |  | 72,196 |  |  | — |  |  | 23,599 |  |  | — |  |  | (2,090) |  |  | 93,705 |
Commissary sales |  | — |  |  | — |  |  | 501,054 |  |  | 30,350 |  |  | — |  |  | (99,570) |  |  | 431,834 |
Other revenues |  | — |  |  | — |  |  | — |  |  | 6,852 |  |  | 41,678 |  |  | (7,185) |  |  | 41,345 |
Advertising funds revenue |  | — |  |  | — |  |  | — |  |  | 5,959 |  |  | 92,841 |  |  | (19,765) |  |  | 79,035 |
Total revenues |  | $ | 349,431 |  |  | $ | 72,196 |  |  | $ | 501,054 |  |  | $ | 93,220 |  |  | $ | 134,519 |  |  | $ | (128,610) |  |  | $ | 1,021,810 |

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