Segment Information

6 Months Ended

Jun. 15, 2025

Segment Reporting [Abstract]

Segment Information

2. Segment Information

The Company has three reportable segments: (i) U.S. stores; (ii) supply chain; and (iii) international franchise.

The Company’s operations are organized by management on the combined basis of line of business and geography. The U.S. stores segment includes operations with respect to all franchised and Company-owned stores throughout the U.S. The supply chain segment primarily includes the distribution of food and, to a lesser extent, other products, from the Company’s supply chain center operations in the U.S. and Canada. The international franchise segment includes operations related to the Company’s franchising business in foreign markets. The Company’s chief operating decision maker is its Chief Executive Officer, and he evaluates the performance of the Company’s segments and allocates resources to them based on revenues and earnings before interest, taxes, depreciation, amortization and other, referred to as Segment Income. The Company uses Segment Income to determine future business objectives and targets and for long-range planning for the reportable segments, as well as to evaluate their operating performance.

The tables below summarize the financial information, including revenues, significant segment expenses, Segment Income and capital expenditures, concerning the Company’s reportable segments for the second quarters and two fiscal quarters ended June 15, 2025 and June 16, 2024. Intersegment revenues are comprised of sales of food and, to a lesser extent, other products, from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based.

The Company adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) in the fourth quarter of 2024. The Company has included the relevant interim disclosures retrospectively for all periods presented in the condensed consolidated financial statements.

	Fiscal Quarter Ended June 15, 2025
	U.S. Stores		Supply Chain			International Franchise		Total
U.S. Company-owned stores	$	92,456	$	—		$	—	$	92,456
U.S. franchise royalties and fees		156,261		—			—		156,261
Supply chain		—		714,658			—		714,658
Supply chain - intersegment revenues		—		(27,596	)		—		(27,596	)
International franchise royalties and fees		—		—			77,164		77,164
U.S. franchise advertising		132,201		—			—		132,201
Segment revenues	$	380,918	$	687,062		$	77,164	$	1,145,144
Cost of sales - food		27,279		487,484			—		514,763
Cost of sales - labor		27,632		60,024			—		87,656
Cost of sales - other (1)		20,486		49,211			—		69,697
U.S. franchise advertising		132,201		—			—		132,201
General and administrative (2)		39,337		16,132			11,600		67,069
Segment Income	$	133,983	$	74,211		$	65,564	$	273,758
Segment capital expenditures (3)	$	1,983	$	9,076		$	—	$	11,059

	Two Fiscal Quarters Ended June 15, 2025
	U.S. Stores		Supply Chain			International Franchise		Total
U.S. Company-owned stores	$	184,054	$	—		$	—	$	184,054
U.S. franchise royalties and fees		307,261		—			—		307,261
Supply chain		—		1,412,567			—		1,412,567
Supply chain - intersegment revenues		—		(55,581	)		—		(55,581	)
International franchise royalties and fees		—		—			152,723		152,723
U.S. franchise advertising		256,176		—			—		256,176
Segment revenues	$	747,491	$	1,356,986		$	152,723	$	2,257,200
Cost of sales - food		54,490		959,100			—		1,013,590
Cost of sales - labor		56,813		121,906			—		178,719
Cost of sales - other (1)		38,238		98,558			—		136,796
U.S. franchise advertising		256,176		—			—		256,176
General and administrative (2)		75,973		30,391			23,380		129,744
Segment Income	$	265,801	$	147,031		$	129,343	$	542,175
Segment capital expenditures (3)	$	2,959	$	14,586		$	—	$	17,545

	Fiscal Quarter Ended June 16, 2024
	U.S. Stores		Supply Chain			International Franchise		Total
U.S. Company-owned stores	$	92,264	$	—		$	—	$	92,264
U.S. franchise royalties and fees		147,576		—			—		147,576
Supply chain		—		686,464			—		686,464
Supply chain - intersegment revenues		—		(27,220	)		—		(27,220	)
International franchise royalties and fees		—		—			73,696		73,696
U.S. franchise advertising		124,956		—			—		124,956
Segment revenues	$	364,796	$	659,244		$	73,696	$	1,097,736
Cost of sales - food		26,321		468,461			—		494,782
Cost of sales - labor		28,477		61,700			—		90,177
Cost of sales - other (1)		18,408		45,946			—		64,354
U.S. franchise advertising		124,956		—			—		124,956
General and administrative (2)		37,152		18,151			14,599		69,902
Segment Income	$	129,482	$	64,986		$	59,097	$	253,565
Segment capital expenditures (3)	$	2,215	$	9,642		$	33	$	11,890

	Two Fiscal Quarters Ended June 16, 2024
	U.S. Stores		Supply Chain			International Franchise		Total
U.S. Company-owned stores	$	184,913	$	—		$	—	$	184,913
U.S. franchise royalties and fees		298,094		—			—		298,094
Supply chain		—		1,373,390			—		1,373,390
Supply chain - intersegment revenues		—		(54,932	)		—		(54,932	)
International franchise royalties and fees		—		—			145,662		145,662
U.S. franchise advertising		235,256		—			—		235,256
Segment revenues	$	718,263	$	1,318,458		$	145,662	$	2,182,383
Cost of sales - food		52,963		938,398			—		991,361
Cost of sales - labor		58,151		123,918			—		182,069
Cost of sales - other (1)		35,594		91,962			—		127,556
U.S. franchise advertising		235,256		—			—		235,256
General and administrative (2)		70,709		34,617			27,233		132,559
Segment Income	$	265,590	$	129,563		$	118,429	$	513,582
Segment capital expenditures (3)	$	4,812	$	12,417		$	33	$	17,262

(1) Cost of sales - other, includes delivery, occupancy costs (including rent, telephone and utilities) and insurance expense. Depreciation and amortization is not included in the measurement of Segment Income.

(2) General and administrative expense consists primarily of labor cost (including variable performance-based compensation expense), computer expenses, professional fees, travel and entertainment, rent, insurance and other. Depreciation and amortization, non-cash equity-based compensation expense, gains and losses from the sale/disposal of assets and refranchising gains and losses are not included in the measurement of Segment Income.

(3) The Company also had $10.1 million and $14.4 million of other capital expenditures not attributable to the reportable segments primarily representing capitalized software in the second quarters of 2025 and 2024, respectively. The Company had $18.8 million and $28.6 million of other capital expenditures not attributable to the reportable segments primarily representing capitalized software in the two fiscal quarters of 2025 and 2024, respectively.

The following table reconciles total Segment Income to income before provision for income taxes:

	Fiscal Quarter Ended						Two Fiscal Quarters Ended
	June 15, 2025			June 16, 2024			June 15, 2025			June 16, 2024
Total Segment Income	$	273,758		$	253,565		$	542,175		$	513,582
General and administrative - other (1)		(20,925	)		(26,165	)		(48,238	)		(44,339	)
Depreciation and amortization		(20,351	)		(20,349	)		(40,713	)		(40,218	)
Non-cash equity-based compensation expense		(10,975	)		(10,686	)		(21,356	)		(22,024	)
Loss on sale/disposal of assets		(346	)		(237	)		(612	)		(327	)
Refranchising gain (loss)		3,883			(25	)		3,883			(158	)
Income from operations		225,044			196,103			435,139			406,516
Other (expense) income		(15,974	)		11,398			8,053			(7,301	)
Interest income		3,829			4,219			7,774			7,958
Interest expense		(44,648	)		(44,721	)		(90,233	)		(90,567	)
Income before provision for income taxes	$	168,251		$	166,999		$	360,733		$	316,606

(1) Represents corporate administrative costs that have not been allocated to a reportable segment including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs.

The Company’s chief operating decision maker is not regularly provided financial information related to the assets of the reportable segments, and he does not evaluate their performance or allocate resources to them based on assets. Therefore, total assets by reportable segment are not included in the Company’s segment disclosures.