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Revenues
 6 Months Ended
Jun. 24, 2020
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Our revenues are derived primarily from two sales channels, which we operate as one segment: company restaurants and franchised and licensed restaurants. The following table disaggregates our revenue by sales channel and type of good or service:
 Quarter EndedTwo Quarters Ended
 June 24, 2020June 26, 2019June 24, 2020June 26, 2019
 (Dollars in thousands)
Company restaurant sales$15,128  $95,447  $57,419  $193,992  
Franchise and license revenue:
Royalties6,719  26,672  30,566  51,912  
Advertising revenue7,232  19,884  24,758  38,826  
Initial and other fees1,346  1,755  3,043  2,894  
Occupancy revenue 9,736  8,126  21,070  15,671  
Franchise and license revenue 
25,033  56,437  79,437  109,303  
Total operating revenue$40,161  $151,884  $136,856  $303,295  



Franchise occupancy revenue consisted of the following:
 Quarter EndedTwo Quarters Ended
 June 24, 2020June 26, 2019June 24, 2020June 26, 2019
 (In thousands)
Operating lease revenue$8,060  $5,846  $16,682  $11,271  
Variable lease revenue
1,676  2,280  4,388  4,400  
Total occupancy revenue
$9,736  $8,126  $21,070  $15,671  

Balances related to contracts with customers consist of receivables, deferred franchise revenue and deferred gift card revenue. See Note 3 for details on our receivables.
Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that we will begin amortizing into revenue when the related restaurants are opened. Initial franchise fees are amortized over the term of the related franchise
agreement, generally 10-20 years. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising. The components of the change in deferred franchise revenue are as follows:
 (In thousands)
Balance, December 25, 2019$23,256  
Fees received from franchisees389  
Revenue recognized (1)
(1,528) 
Balance, June 24, 202022,117  
Less current portion included in other current liabilities2,112  
Deferred franchise revenue included in other noncurrent liabilities$20,005  

(1) Of this amount $1.5 million was included in the deferred franchise revenue balance as of December 25, 2019.

Gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of gift card liabilities represents our remaining performance obligations to our customers. The balance of gift card liabilities as of June 24, 2020 and December 25, 2019 was $5.0 million and $6.5 million, respectively. During the two quarters ended June 24, 2020, we recognized revenue of $0.5 million from gift card redemptions at company restaurants.