Revenue Disclosures

3 Months Ended

Mar. 23, 2025

Revenue from Contract with Customer [Abstract]

Revenue Disclosures

7. Revenue Disclosures

Contract Liabilities

Contract liabilities primarily consist of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $5.0 million and $5.1 million were included in current other accrued liabilities as of March 23, 2025 and December 29, 2024, respectively. Deferred franchise fees and deferred development fees of $15.0 million and $15.8 million were included in long-term other accrued liabilities as of March 23, 2025 and December 29, 2024, respectively.

Changes in deferred franchise fees and deferred development fees for the first quarters of 2025 and 2024 were as follows:

	Fiscal Quarter Ended
	March 23,			March 24,
	2025			2024
Deferred franchise fees and deferred development fees, beginning of period	$	20,946		$	25,195
Revenue recognized during the period		(1,668	)		(1,364	)
New deferrals due to cash received and other		726			1,330
Deferred franchise fees and deferred development fees, end of period	$	20,004		$	25,161

Advertising Fund Assets

As of March 23, 2025, advertising fund assets, restricted of $99.6 million consisted of $72.2 million of cash and cash equivalents, $16.9 million of accounts receivable and $10.5 million of prepaid expenses. As of March 23, 2025, advertising fund cash and cash equivalents included $2.2 million of cash contributed from U.S. Company-owned stores that had not yet been expended.

As of December 29, 2024, advertising fund assets, restricted of $103.4 million consisted of $80.9 million of cash and cash equivalents, $14.3 million of accounts receivable and $8.2 million of prepaid expenses. As of December 29, 2024, advertising fund cash and cash equivalents included $1.8 million of cash contributed from U.S. Company-owned stores that had not yet been expended.