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Revenues | 9 Months Ended
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Sep. 23, 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 Ended |  |  |  | Three Quarters Ended |  |
| September 23, 2020 |  | September 25, 2019 |  | September 23, 2020 |  | September 25, 2019
| (In thousands) |  |  |  |  |  |
Company restaurant sales | $ | 27,849 |  |  | $ | 63,582 |  |  | $ | 85,268 |  |  | $ | 257,574 |
Franchise and license revenue: |  |  |  |  |  |  |
Royalties | 17,896 |  |  | 27,830 |  |  | 48,462 |  |  | 79,742 |
Advertising revenue | 13,927 |  |  | 20,756 |  |  | 38,685 |  |  | 59,582 |
Initial and other fees | 1,890 |  |  | 1,356 |  |  | 4,933 |  |  | 4,250 |
Occupancy revenue | 10,082 |  |  | 10,734 |  |  | 31,152 |  |  | 26,405 |
Franchise and license revenue | 43,795 |  |  | 60,676 |  |  | 123,232 |  |  | 169,979 |
Total operating revenue | $ | 71,644 |  |  | $ | 124,258 |  |  | $ | 208,500 |  |  | $ | 427,553 |
Franchise occupancy revenue consisted of the following:
| Quarter Ended |  |  |  | Three Quarters Ended |  |
| September 23, 2020 |  | September 25, 2019 |  | September 23, 2020 |  | September 25, 2019
| (In thousands) |  |  |  |  |  |
Operating lease revenue | $ | 8,277 |  |  | $ | 7,964 |  |  | $ | 24,959 |  |  | $ | 19,235 |
Variable lease revenue | 1,805 |  |  | 2,770 |  |  | 6,193 |  |  | 7,170 |
Total occupancy revenue | $ | 10,082 |  |  | $ | 10,734 |  |  | $ | 31,152 |  |  | $ | 26,405 |
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 franchisees | 535 |
Revenue recognized (1) | (2,474) |
Balance, September 23, 2020 | 21,317 |
Less current portion included in other current liabilities | 2,112 |
Deferred franchise revenue included in other noncurrent liabilities | $ | 19,205 |
(1) Of this amount $2.4 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 September 23, 2020 and December 25, 2019 was $4.8 million and $6.5 million, respectively. During the three quarters ended September 23, 2020, we recognized revenue of $0.3 million from gift card redemptions at company restaurants.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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