XML 27 R16.htm IDEA: XBRL DOCUMENT v3.21.2
Revenues
 9 Months Ended
Sep. 29, 2021
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 EndedThree Quarters Ended
 September 29, 2021September 23, 2020September 29, 2021September 23, 2020
 (In thousands)
Company restaurant sales$46,470 $27,849 $127,611 $85,268 
Franchise and license revenue:
Royalties27,336 17,896 75,297 48,462 
Advertising revenue18,215 13,927 50,926 38,685 
Initial and other fees1,442 1,890 5,346 4,933 
Occupancy revenue 10,331 10,082 31,355 31,152 
Franchise and license revenue 
57,324 43,795 162,924 123,232 
Total operating revenue$103,794 $71,644 $290,535 $208,500 

Franchise occupancy revenue consisted of the following:

 Quarter EndedThree Quarters Ended
 September 29, 2021September 23, 2020September 29, 2021September 23, 2020
 (In thousands)
Operating lease revenue$7,594 $8,277 $23,175 $24,959 
Variable lease revenue
2,737 1,805 8,180 6,193 
Total occupancy revenue
$10,331 $10,082 $31,355 $31,152 

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. 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 30, 2020$20,806 
Fees received from franchisees381 
Revenue recognized (1)
(1,721)
Balance, September 29, 202119,466 
Less current portion included in other current liabilities1,924 
Deferred franchise revenue included in other noncurrent liabilities$17,542 

(1) Of this amount $1.7 million was included in the deferred franchise revenue balance as of December 30, 2020.
Deferred gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of deferred gift card liabilities represents our remaining performance obligations to our customers. The balance of deferred gift card liabilities as of September 29, 2021 and December 30, 2020 was $5.2 million and $6.1 million, respectively. During the three quarters ended September 29, 2021, we recognized revenue of $0.3 million from gift card redemptions at company restaurants.