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Revenues
 12 Months Ended
Dec. 27, 2023
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The following table disaggregates our revenue by sales channel and type of good or service:
 Fiscal Year Ended
 December 27, 2023December 28, 2022December 29, 2021
 (In thousands)
Company restaurant sales$215,532 $199,753 $175,017 
Franchise and license revenue:
Royalties120,131 113,891 103,425 
Advertising revenue78,494 75,926 69,957 
Initial and other fees13,882 28,262 8,009 
Occupancy revenue 35,883 38,597 41,766 
Franchise and license revenue 
248,390 256,676 223,157 
Total operating revenue$463,922 $456,429 $398,174 

Balances related to contracts with customers consists of receivables, contract assets, deferred franchise revenue and deferred gift card revenue. See Note 4 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 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 28, 2022$20,751 
Fees received from franchisees1,729 
Revenue recognized, net (1)
(3,330)
Balance, December 27, 202319,150 
Less current portion included in other current liabilities2,164 
Deferred franchise revenue included in other noncurrent liabilities$16,986 

(1) Of this amount $2.7 million was included in the deferred franchise revenue balance as of December 28, 2022.

We record contract assets related to incentives and subsidies provided to franchisees related to new unit openings and/or equipment upgrades. These amounts will be recognized as a component of franchise and license revenue over the remaining term of the related franchise agreements.The components of the change in contract assets are as follows:
 (In thousands)
Balance, December 28, 2022$5,361 
Franchisee deferred costs2,689 
Contract asset amortization(1,442)
Balance, December 27, 20236,608 
Less current portion included in other current assets1,050 
Contract assets included in other noncurrent assets$5,558 

The Company purchases equipment related to various programs for franchise restaurants, including kitchen and point-of-sale system equipment. We bill our franchisees and recognize revenue when the related equipment is installed, less amounts contributed from the Company, which have been deferred as contract assets in the table above. We recognized $4.8 million and $19.3 million of revenue related to the sale of equipment to franchisees during the years ended December 27, 2023 and December 28, 2022, respectively. As of December 27, 2023, we had $0.6 million in inventory and $0.3 million in receivables related to the purchased equipment. As of December 28, 2022, we had $3.6 million in inventory and $6.6 million in receivables related to the kitchen equipment rollout.

As of December 27, 2023, deferred franchise revenue, net of contract asset amortization, expected to be recognized in the future is as follows:
 (In thousands)
2024$1,114 
20251,132 
20261,130 
20271,099 
2028969 
Thereafter7,098 
Deferred franchise revenue, net$12,542 

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 customers. The balance of deferred gift card liabilities as of December 27, 2023 and December 28, 2022 was $7.8 million and $7.7 million, respectively. During the year ended December 27, 2023, we recognized revenue of $0.5 million from gift card redemptions at company restaurants.