REFRANCHISING

6 Months Ended

Jun. 26, 2022

Refranchising

Refranchising

REFRANCHISING

As part of its ongoing franchising efforts, the Company may, from time to time, make opportunistic acquisitions of operating restaurants in order to convert them to franchise locations or acquire existing franchise locations to resell to another franchisee across all of its brands.

The Company meets all of the criteria requiring that acquired assets used in the operation of certain restaurants be classified as held-for-sale. As a result, the following assets have been classified as held-for-sale on the accompanying condensed consolidated balance sheets as of June 26, 2022 and December 26, 2021 (in millions):

	June 26, 2022		December 26, 2021
Property and equipment	$	0.8	$	0.8
Operating lease right-of-use assets	$	4.5	$	4.7
Total	$	5.3	$	5.5

Operating lease liabilities related to the assets classified as held-for-sale in the amount of $4.6 million and $4.8 million have been classified as current liabilities on the accompanying condensed consolidated balance sheets as of June 26, 2022 and December 26, 2021, respectively.

The following table highlights the operating results of the Company's refranchising program (in millions):

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Restaurant costs and expenses, net of revenue	$	(0.5)	$	(0.2)	$	(1.0)	$	(0.7)
Gain on store sales or closures	—		1.1		—		1.1
Refranchising (loss) gain	$	(0.5)	$	0.9	$	(1.0)	$	0.4