Refranchisings and Acquisitions

12 Months Ended

Dec. 30, 2020

Refranchisings and Acquisitions [Abstract]

Refranchisings

The following table summarizes the activity related to our refranchising and development strategy. Gains (losses) on the sales of company restaurants and real estate are included as a component of operating (gains), losses and other charges, net in our Consolidated Statements of Operations. See Note 14.


	Fiscal Year Ended
	December 30, 2020		December 25, 2019		December 26, 2018
	(Dollars in thousands)
Restaurants sold to franchisees	—		105		8
Gains (losses) on sales of company restaurants:
Cash Proceeds	$	—	$	118,964	$	1,777
Receivables	—		920		—
Less: Property sold	—		(30,511)		(2,448)
Less: Goodwill	—		(2,897)		(62)
Less: Intangibles	—		(2,260)		(13)
Less: Deferred gain	—		(1,350)		—
Total gains (losses) on sales of company restaurants	$	—	$	82,866	$	(746)

Real estate parcels sold	10		6		—
Gains on sales of real estate:
Cash proceeds	$	9,419	$	10,680	$	—
Noncash consideration	—		3,000		—
Less: Property sold	(3,648)		(1,686)		—
Less: Other assets	(835)		(120)		—
Total gains on sales of real estate	$	4,936	$	11,874	$	—

No restaurants were sold to franchisees during 2020 as we completed our transition to a more franchise-based model during 2019. The majority of gains on sales of real estate during 2019 qualified for like-kind exchange treatment related to real estate acquired. In addition to the cash proceeds received on the sale of real estate during 2019, we also recorded additional noncash consideration for the fair value of restaurant space we expect to receive within a building being developed by the buyer of the real estate. The fair value of this space was determined using a market approach with Level 2 inputs based on third party appraisals of fair values of other similar properties. The $3.0 million of noncash consideration is recorded as a component of other noncurrent assets in our Consolidated Balance Sheets as of December 30, 2020 and December 25, 2019.

As of December 30, 2020, we have recorded assets held for sale at their carrying amount of $1.1 million (consisted of property of $1.0 million, other assets of $0.1 million) related to two parcels of real estate. There were $1.9 million in assets held for sale, at their carrying value, as of December 25, 2019 (consisted of property of $1.6 million, other assets of $0.2 million and goodwill of $0.1 million) related to four company restaurants and two pieces of real estate.

Acquisitions

We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on Level 3 fair value estimates. The following table summarizes our restaurant and real estate acquisition activity.


	Fiscal Year Ended
	December 30, 2020		December 25, 2019		December 26, 2018
	(Dollars in thousands)
Restaurants acquired from franchisees	—		—		6

Purchase price allocation:
Reacquired franchise rights	$	—	$	—	$	5,434
Property	—		—		1,121
Goodwill	—		—		1,574
Total purchase price	$	—	$	—	$	8,129

Finance leases recorded	$	—	$	—	$	2,409

Real estate parcels acquired	—		5		1
Total purchase price	$	—	$	11,320	$	1,787