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Discontinued Operations (Tables)
 12 Months Ended
Dec. 29, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued operations balance sheet and income statement details
The following table presents the carrying amounts of the major classes of assets and liabilities of the Disposal Group classified as held for sale on the Company’s Consolidated Balance Sheets as of the periods indicated:
(dollars in thousands)DECEMBER 29, 2024DECEMBER 31, 2023
Assets:
Current assets
Inventories$7,872 $12,991 
Other current assets, net15,117 15,104 
Total current assets of disposal group classified as held for sale$22,989 $28,095 
Non-current assets
Property, fixtures and equipment, net$99,532 $103,757 
Operating lease right-of-use assets43,884 53,679 
Goodwill51,906 62,995 
Intangible assets, net6,841 10,069 
Deferred income tax assets, net2,056 4,233 
Other assets, net64,553 25,097 
Total non-current assets268,772 259,830 
Impairment of disposal group assets (68,271)— 
Net non-current assets of disposal group classified as held for sale$200,501 $259,830 
Liabilities:
Current liabilities
Accounts Payable$24,168 $33,328 
Current operating lease liabilities10,109 11,718 
Accrued and other current liabilities52,442 58,133 
Unearned revenue1,237 1,723 
Total current liabilities of disposal group classified as held for sale$87,956 $104,902 
Non-current liabilities
Non-current operating lease liabilities$36,297 $44,286 
Other long-term liabilities, net13,568 14,359 
Total non-current liabilities of disposal group classified as held for sale$49,865 $58,645 

Included in discontinued operations are benefits from a law in Brazil that provided a 100% exemption from income tax (IRPJ and CSLL) and federal value added taxes (PIS and COFINS). These exemptions impacted GAAP diluted earnings per share from discontinued operations by approximately $0.25 for 2023. After receipt of an unfavorable court ruling in January 2024, a cash judicial deposit of $42.9 million, inclusive of principal, interest and potential penalties, was made during 2024 to appeal the unfavorable court ruling.

During 2024, new tax legislation granted certain industries additional exemptions from income and federal value added taxes for varying timeframes resulting in a benefit of $0.15 GAAP diluted earnings per share from discontinued operations during 2024.

Following closing of the Brazil Sale Transaction, the Company retained certain rights to favorable resolution of the ongoing litigation and recorded a contingent consideration asset at fair value on the Closing Date. See Contingent Consideration Assets and Indemnification Liabilities section below for details.
(Loss) income from discontinued operations, net of tax in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income includes the following for the periods indicated:
FISCAL YEAR
(dollars in thousands)202420232022
Revenues
Restaurant sales$525,216 $529,619 $428,801 
Other revenue
52 52 39 
Total revenues525,268 529,671 428,840 
Costs and expenses
Food and beverage167,741 169,164 146,214 
Labor and other related109,853 105,500 84,834 
Other restaurant operating (1)
165,492 163,816 131,916 
Depreciation and amortization22,191 21,905 19,717 
General and administrative28,744 26,911 21,820 
Provision for impaired assets and restaurant closings1,577 — — 
Impairment of assets held for sale68,271 — — 
Total costs and expenses563,869 487,296 404,501 
(Loss) income from operations
(38,601)42,375 24,339 
Interest income (expense), net
1,545 (587)165 
(Loss) income before provision for income taxes
(37,056)41,788 24,504 
Provision for income taxes
38,926 159 8,451 
(Loss) income from discontinued operations, net of tax$(75,982)$41,629 $16,053 
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(1)Includes royalty expense of $25.9 million, $26.4 million and $21.6 million for fiscal years 2024, 2023 and 2022, respectively, eliminated in consolidation prior to the Brazil Sale Transaction, with the corresponding royalty revenues recorded within Franchise and other revenues from continuing operations in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income. On December 30, 2024, the Company entered into franchise agreements that include royalty rates that are lower than its historical intercompany rates and on the low end of its international franchisee royalty percentage range.