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Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Sep. 29, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Summary of Number of Restaurants | The following table summarizes the number of restaurants as of the end of each fiscal year:
|  | 2019 |  | 2018 |  | 2017
Company-operated |  | 137 |  | 137 |  | 276
Franchise |  | 2,106 |  | 2,100 |  | 1,975
Total system |  | 2,243 |  | 2,237 |  | 2,251
The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and gains recognized in each fiscal year (dollars in thousands):
|  | 2019 |  | 2018 |  | 2017
Restaurants sold to franchisees |  | — |  |  | 135 |  |  | 178 |
New restaurants opened by franchisees |  | 19 |  |  | 11 |  |  | 18 |
Proceeds from the sale of company-operated restaurants: |  |  |  |  |  |
Cash (1) |  | $ | 1,280 |  |  | $ | 26,486 |  |  | $ | 99,591 |
Notes receivable |  | — |  |  | 70,461 |  |  | — |
|  | $ | 1,280 |  |  | $ | 96,947 |  |  | $ | 99,591 |
Net assets sold (primarily property and equipment) |  | $ | — |  |  | $ | (21,329 | ) |  | $ | (30,597 | )
Lease commitment charges (2) |  | — |  |  | — |  |  | (11,737 | )
Goodwill related to the sale of company-operated restaurants |  | (2 | ) |  | (4,663 | ) |  | (10,062 | )
Other (3) |  | 88 |  |  | (24,791 | ) |  | (9,161 | )
Gains on the sale of company-operated restaurants |  | $ | 1,366 |  |  | $ | 46,164 |  |  | $ | 38,034 |
____________________________
(1) | Amounts in 2019, 2018, and 2017 include additional proceeds of $1.3 million, $1.4 million, and $0.2 million related to the extension of the underlying franchise and lease agreements from the sale of restaurants in prior years.
(2) | Charges are for operating restaurant leases with lease commitments in excess of our sublease rental income.
(3) Amounts in 2018 primarily represent $9.2 million of costs related to franchise remodel incentives, $8.7 million reduction of gains related to the modification of certain 2017 refranchising transactions, $2.3 million of maintenance and repair expenses and $3.7 million of other miscellaneous non-capital charges. Amounts in 2017 represent impairment of $4.6 million and equipment write-offs of $1.4 million related to restaurants closed in connection with the sale of the related markets, maintenance and repair charges, and other miscellaneous non-capital charges.
Summary of New Accounting Standard Impact | The following table summarizes the impacts of adopting ASC 606 on our consolidated financial statements as of and for the period ended September 29, 2019 (in thousands):
|  |  | Adjustments |  |
| As Reported |  | Franchise Fees |  | Marketing and Sourcing Fees |  | Technology Support Fees |  | Balances without Adoption
Consolidated Statement of Earnings |  |  |  |  |  |  |  |  |
Fiscal Year Ended September 29, 2019 |  |  |  |  |  |  |  |  |
Franchise royalties and other | $ | 169,811 |  |  | $ | (3,745 | ) |  | $ | — |  |  | $ | — |  |  | $ | 166,066 |
Franchise contributions for advertising and other services | $ | 170,674 |  |  | $ | — |  |  | $ | (161,873 | ) |  | $ | (8,801 | ) |  | $ | — |
Total revenues | $ | 950,107 |  |  | $ | (3,745 | ) |  | $ | (161,873 | ) |  | $ | (8,801 | ) |  | $ | 775,688 |
Franchise advertising and other services expenses | $ | 178,093 |  |  | $ | — |  |  | $ | (161,873 | ) |  | $ | (16,220 | ) |  | $ | — |
Selling, general and administrative expenses | $ | 76,357 |  |  | $ | — |  |  | $ | — |  |  | $ | 7,419 |  |  | $ | 83,776 |
Total operating costs and expenses, net | $ | 747,884 |  |  | $ | — |  |  | $ | (161,873 | ) |  | $ | (8,801 | ) |  | $ | 577,210 |
Earnings from operations | $ | 202,223 |  |  | $ | (3,745 | ) |  | $ | — |  |  | $ | — |  |  | $ | 198,478 |
Earnings from continuing operations and before income taxes | $ | 115,772 |  |  | $ | (3,745 | ) |  | $ | — |  |  | $ | — |  |  | $ | 112,027 |
Income tax expense | $ | 24,025 |  |  | $ | (972 | ) |  | $ | — |  |  | $ | — |  |  | $ | 23,053 |
Earnings from continuing operations | $ | 91,747 |  |  | $ | (2,773 | ) |  | $ | — |  |  | $ | — |  |  | $ | 88,974 |
Net earnings | $ | 94,437 |  |  | $ | (2,773 | ) |  | $ | — |  |  | $ | — |  |  | $ | 91,664 |
Consolidated Balance Sheet |  |  |  |  |  |  |  |  |
September 29, 2019 |  |  |  |  |  |  |  |  |
Prepaid expenses | $ | 9,015 |  |  | $ | 972 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,987 |
Total current assets | $ | 227,128 |  |  | $ | 972 |  |  | $ | — |  |  | $ | — |  |  | $ | 228,100 |
Deferred tax assets | $ | 85,564 |  |  | $ | (12,958 | ) |  | $ | — |  |  | $ | — |  |  | $ | 72,606 |
Other assets, net | $ | 206,685 |  |  | $ | 269 |  |  | $ | — |  |  | $ | — |  |  | $ | 206,954 |
Total other assets | $ | 339,421 |  |  | $ | (12,689 | ) |  | $ | — |  |  | $ | — |  |  | $ | 326,732 |
Total assets | $ | 958,483 |  |  | $ | (11,717 | ) |  | $ | — |  |  | $ | — |  |  | $ | 946,766 |
Accrued liabilities | $ | 120,083 |  |  | $ | (4,978 | ) |  | $ | — |  |  | $ | — |  |  | $ | 115,105 |
Total current liabilities | $ | 157,923 |  |  | $ | (4,978 | ) |  | $ | — |  |  | $ | — |  |  | $ | 152,945 |
Other long-term liabilities | $ | 263,770 |  |  | $ | (41,295 | ) |  | $ | — |  |  | $ | — |  |  | $ | 222,475 |
Total long-term liabilities | $ | 1,538,144 |  |  | $ | (41,295 | ) |  | $ | — |  |  | $ | — |  |  | $ | 1,496,849 |
Retained earnings | $ | 1,577,034 |  |  | $ | 34,556 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,611,590 |
Total stockholders’ deficit | $ | (737,584 | ) |  | $ | 34,556 |  |  | $ | — |  |  | $ | — |  |  | $ | (703,028 | )
Total liabilities and stockholders’ deficit | $ | 958,483 |  |  | $ | (11,717 | ) |  | $ | — |  |  | $ | — |  |  | $ | 946,766 |

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