XML 27 R17.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Revenues | 9 Months Ended
--- | ---
Sep. 28, 2022
Revenue from Contract with Customer [Abstract] |
Revenues | Revenues Our revenues are derived primarily from two sales channels: 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 28, 2022 |  | September 29, 2021 |  | September 28, 2022 |  | September 29, 2021
| (In thousands)
Company restaurant sales | $ | 52,211 |  |  | $ | 46,470 |  |  | $ | 145,354 |  |  | $ | 127,611 |
Franchise and license revenue: |  |  |  |  |  |  |
Royalties | 28,992 |  |  | 27,336 |  |  | 84,276 |  |  | 75,297 |
Advertising revenue | 18,950 |  |  | 18,215 |  |  | 56,642 |  |  | 50,926 |
Initial and other fees | 7,749 |  |  | 1,442 |  |  | 20,035 |  |  | 5,346 |
Occupancy revenue | 9,554 |  |  | 10,331 |  |  | 29,273 |  |  | 31,355 |
Franchise and license revenue | 65,245 |  |  | 57,324 |  |  | 190,226 |  |  | 162,924 |
Total operating revenue | $ | 117,456 |  |  | $ | 103,794 |  |  | $ | 335,580 |  |  | $ | 290,535 |
Franchise occupancy revenue consisted of the following:
| Quarter Ended |  | Three Quarters Ended
| September 28, 2022 |  | September 29, 2021 |  | September 28, 2022 |  | September 29, 2021
| (In thousands)
Operating lease revenue | $ | 7,074 |  |  | $ | 7,594 |  |  | $ | 21,745 |  |  | $ | 23,175 |
Variable lease revenue | 2,480 |  |  | 2,737 |  |  | 7,528 |  |  | 8,180 |
Total occupancy revenue | $ | 9,554 |  |  | $ | 10,331 |  |  | $ | 29,273 |  |  | $ | 31,355 |
Balances related to contracts with customers consist of receivables, deferred franchise revenue and deferred gift card revenue. See Note 4 for details on our receivables. The components of the change in deferred franchise revenue are as follows:
| (In thousands)
Balance, December 29, 2021 | $ | 19,896 |
Fees received from franchisees | 2,853 |
Acquired deferred franchise revenue | 992 |
Franchisee deferred costs (1) | (3,845) |
Revenue recognized, net (2) | (2,184) |
Balance, September 28, 2022 | 17,712 |
Less current portion included in other current liabilities | 1,881 |
Deferred franchise revenue included in other noncurrent liabilities | $ | 15,831 |
(1) Deferred costs are contract assets consisting of incentives given to franchisees related to the rollout of kitchen equipment to all franchise locations. (2) Of this amount $1.9 million was included in the deferred franchise revenue balance as of December 29, 2021. 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 net of certain deferred costs. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising. The Company has purchased equipment related to the rollout of kitchen equipment for franchise restaurants which is billed to the franchisee and recognized as revenue as the equipment is installed, less a total of $5.4 million in commitments from the Company, $3.9 million of which has been deferred as contract assets as of September 28, 2022. Amounts committed from the Company are contract assets that have been netted against deferred revenue and will be recognized as a component of franchise and license revenue over the remaining term of the related franchise agreements. For the quarter and three quarters ended September 28, 2022, we have recognized $5.6 million and $13.5 million of revenue, respectively. As of September 28, 2022, we had approximately $7.6 million in inventory and $8.6 million in receivables related to the kitchen equipment rollout. As of December 29, 2021, we had approximately $3.7 million in inventory and $0.4 million in receivables related to the kitchen equipment rollout. 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 28, 2022 and December 29, 2021 was $5.5 million and $7.2 million, respectively. During the year-to-date period ended September 28, 2022, we recognized revenue of $0.4 million from gift card redemptions at company restaurants.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration