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Leases

12 Months Ended

Dec. 29, 2021

Leases [Abstract]

Leases

Leases

Lessee

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed base rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally range from 10 to 20 years, exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above.

The components of lease costs were as follows:

									Fiscal Year Ended
			Classification						December 29, 2021						December 30, 2020
									(In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets			Depreciation and amortization						$	1,895					$	1,870
Interest on lease liabilities			Interest expense, net						2,960						3,129
Operating lease costs:
Operating lease costs - company			Occupancy						6,394						6,432
Operating lease costs - franchise			Costs of franchise and license revenue						17,106						18,682
Operating lease costs - general and administrative			General and administrative expenses						432						100
Operating lease costs - closed stores			Restructuring charges and exit costs						356						173
Variable lease costs:
Variable lease costs - company			Occupancy						3,275						2,854
Variable lease costs - franchise			Costs of franchise and license revenue						7,172						6,102
Variable lease costs - general and administrative			General and administrative expenses						218						61
Variable lease costs - closed stores			Restructuring charges and exit costs						48						56
Sublease income:
Sublease income - franchise			Franchise and license revenue						(30,607)						(30,925)
Sublease income - closed stores			Restructuring charges and exit costs						(160)						(114)
Total lease costs									$	9,089					$	8,420

Lease terms and discount rates were as follows:

			December 29, 2021						December 30, 2020
Weighted-average remaining lease term (in years):
Finance leases			8.5						9.3
Operating leases			10.0						10.7
Weighted-average discount rate:
Finance leases			23.4		%				23.8		%
Operating leases			5.7		%				5.8		%

The components of lease income were as follows:

									Fiscal Year Ended
			Classification						December 29, 2021						December 30, 2020
									(In thousands)
Lease income
Operating lease income - franchise			Franchise and license revenue						$	30,767					$	33,621
Operating lease income - closed stores			Restructuring charges and exit costs						109						66
Operating lease income - general and administrative			General and administrative expenses						65						—
Variable lease income - franchise			Franchise and license revenue						10,999						8,246
Variable lease income - closed stores			Restructuring charges and exit costs						51						48
Total lease income									$	41,991					$	41,981

Cash and supplemental noncash amounts were as follows:

						Fiscal Year Ended
						December 29, 2021						December 30, 2020
						(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases						$	2,960					$	3,129
Operating cash flows from operating leases						$	25,578					$	23,511
Financing cash flows from finance leases						$	2,118					$	1,570
Right-of-use assets obtained in exchange for new finance lease liabilities						$	998					$	142
Right-of-use assets obtained in exchange for new operating lease liabilities						$	8,513					$	4,831

    

Maturities of lease liabilities and receipts as of December 29, 2021 were as follows:

			Lease Liabilities												Lease Receipts
			Finance						Operating						Operating
			(In thousands)
2022			$	4,264					$	23,285					$	28,824
2023			3,639						21,335						26,293
2024			2,919						19,570						25,012
2025			2,783						18,285						24,758
2026			2,488						17,164						24,216
Thereafter			13,653						89,578						157,939
Total undiscounted cash flows			29,746						189,217						$	287,042
Less: interest			17,050						47,092
Present value of lease liabilities			12,696						142,125
Less: current lease liabilities			1,952						15,829
Long-term lease liabilities			$	10,744					$	126,296

Leases

Leases

Lessee

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed base rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally range from 10 to 20 years, exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above.

The components of lease costs were as follows:

									Fiscal Year Ended
			Classification						December 29, 2021						December 30, 2020
									(In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets			Depreciation and amortization						$	1,895					$	1,870
Interest on lease liabilities			Interest expense, net						2,960						3,129
Operating lease costs:
Operating lease costs - company			Occupancy						6,394						6,432
Operating lease costs - franchise			Costs of franchise and license revenue						17,106						18,682
Operating lease costs - general and administrative			General and administrative expenses						432						100
Operating lease costs - closed stores			Restructuring charges and exit costs						356						173
Variable lease costs:
Variable lease costs - company			Occupancy						3,275						2,854
Variable lease costs - franchise			Costs of franchise and license revenue						7,172						6,102
Variable lease costs - general and administrative			General and administrative expenses						218						61
Variable lease costs - closed stores			Restructuring charges and exit costs						48						56
Sublease income:
Sublease income - franchise			Franchise and license revenue						(30,607)						(30,925)
Sublease income - closed stores			Restructuring charges and exit costs						(160)						(114)
Total lease costs									$	9,089					$	8,420

Lease terms and discount rates were as follows:

			December 29, 2021						December 30, 2020
Weighted-average remaining lease term (in years):
Finance leases			8.5						9.3
Operating leases			10.0						10.7
Weighted-average discount rate:
Finance leases			23.4		%				23.8		%
Operating leases			5.7		%				5.8		%

The components of lease income were as follows:

									Fiscal Year Ended
			Classification						December 29, 2021						December 30, 2020
									(In thousands)
Lease income
Operating lease income - franchise			Franchise and license revenue						$	30,767					$	33,621
Operating lease income - closed stores			Restructuring charges and exit costs						109						66
Operating lease income - general and administrative			General and administrative expenses						65						—
Variable lease income - franchise			Franchise and license revenue						10,999						8,246
Variable lease income - closed stores			Restructuring charges and exit costs						51						48
Total lease income									$	41,991					$	41,981

Cash and supplemental noncash amounts were as follows:

						Fiscal Year Ended
						December 29, 2021						December 30, 2020
						(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases						$	2,960					$	3,129
Operating cash flows from operating leases						$	25,578					$	23,511
Financing cash flows from finance leases						$	2,118					$	1,570
Right-of-use assets obtained in exchange for new finance lease liabilities						$	998					$	142
Right-of-use assets obtained in exchange for new operating lease liabilities						$	8,513					$	4,831

    

Maturities of lease liabilities and receipts as of December 29, 2021 were as follows:

			Lease Liabilities												Lease Receipts
			Finance						Operating						Operating
			(In thousands)
2022			$	4,264					$	23,285					$	28,824
2023			3,639						21,335						26,293
2024			2,919						19,570						25,012
2025			2,783						18,285						24,758
2026			2,488						17,164						24,216
Thereafter			13,653						89,578						157,939
Total undiscounted cash flows			29,746						189,217						$	287,042
Less: interest			17,050						47,092
Present value of lease liabilities			12,696						142,125
Less: current lease liabilities			1,952						15,829
Long-term lease liabilities			$	10,744					$	126,296

Leases

Leases

Lessee

Our operations utilize property, facilities and equipment leased from others. Buildings and facilities are primarily used for restaurants and support facilities. Many of our restaurants are operated under lease arrangements which generally provide for a fixed base rent, and, in many instances, contingent rent based on a percentage of gross revenues. Initial terms of land and restaurant building leases generally range from 10 to 20 years, exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years.

Lessor

We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above.

The components of lease costs were as follows:

									Fiscal Year Ended
			Classification						December 29, 2021						December 30, 2020
									(In thousands)
Lease costs
Finance lease costs:
Amortization of right-of-use assets			Depreciation and amortization						$	1,895					$	1,870
Interest on lease liabilities			Interest expense, net						2,960						3,129
Operating lease costs:
Operating lease costs - company			Occupancy						6,394						6,432
Operating lease costs - franchise			Costs of franchise and license revenue						17,106						18,682
Operating lease costs - general and administrative			General and administrative expenses						432						100
Operating lease costs - closed stores			Restructuring charges and exit costs						356						173
Variable lease costs:
Variable lease costs - company			Occupancy						3,275						2,854
Variable lease costs - franchise			Costs of franchise and license revenue						7,172						6,102
Variable lease costs - general and administrative			General and administrative expenses						218						61
Variable lease costs - closed stores			Restructuring charges and exit costs						48						56
Sublease income:
Sublease income - franchise			Franchise and license revenue						(30,607)						(30,925)
Sublease income - closed stores			Restructuring charges and exit costs						(160)						(114)
Total lease costs									$	9,089					$	8,420

Lease terms and discount rates were as follows:

			December 29, 2021						December 30, 2020
Weighted-average remaining lease term (in years):
Finance leases			8.5						9.3
Operating leases			10.0						10.7
Weighted-average discount rate:
Finance leases			23.4		%				23.8		%
Operating leases			5.7		%				5.8		%

The components of lease income were as follows:

									Fiscal Year Ended
			Classification						December 29, 2021						December 30, 2020
									(In thousands)
Lease income
Operating lease income - franchise			Franchise and license revenue						$	30,767					$	33,621
Operating lease income - closed stores			Restructuring charges and exit costs						109						66
Operating lease income - general and administrative			General and administrative expenses						65						—
Variable lease income - franchise			Franchise and license revenue						10,999						8,246
Variable lease income - closed stores			Restructuring charges and exit costs						51						48
Total lease income									$	41,991					$	41,981

Cash and supplemental noncash amounts were as follows:

						Fiscal Year Ended
						December 29, 2021						December 30, 2020
						(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases						$	2,960					$	3,129
Operating cash flows from operating leases						$	25,578					$	23,511
Financing cash flows from finance leases						$	2,118					$	1,570
Right-of-use assets obtained in exchange for new finance lease liabilities						$	998					$	142
Right-of-use assets obtained in exchange for new operating lease liabilities						$	8,513					$	4,831

    

Maturities of lease liabilities and receipts as of December 29, 2021 were as follows:

			Lease Liabilities												Lease Receipts
			Finance						Operating						Operating
			(In thousands)
2022			$	4,264					$	23,285					$	28,824
2023			3,639						21,335						26,293
2024			2,919						19,570						25,012
2025			2,783						18,285						24,758
2026			2,488						17,164						24,216
Thereafter			13,653						89,578						157,939
Total undiscounted cash flows			29,746						189,217						$	287,042
Less: interest			17,050						47,092
Present value of lease liabilities			12,696						142,125
Less: current lease liabilities			1,952						15,829
Long-term lease liabilities			$	10,744					$	126,296

X

- References

No definition available.

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X

- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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X

- Definition

The entire disclosure for lessor's operating leases.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 30
-URI http://asc.fasb.org/subtopic&trid=77888252

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