Leases (Tables)

3 Months Ended

Apr. 03, 2022

Leases [Abstract]

Lease, Cost

The components of lease cost are as follows:

	Three Months Ended
	April 3, 2022		April 4, 2021
Finance lease cost:
Amortization of finance lease assets	$	4,064	$	3,508
Interest on finance lease liabilities	10,645		10,293
	14,709		13,801
Operating lease cost	20,661		23,361
Variable lease cost (a)	14,803		15,188
Short-term lease cost	1,433		1,326
Total operating lease cost (b)	36,897		39,875
Total lease cost	$	51,606	$	53,676

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(a)Includes expenses for executory costs of $9,608 and $10,063 for the three months ended April 3, 2022 and April 4, 2021, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $28,925 and $32,552 for the three months ended April 3, 2022 and April 4, 2021, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,294 and $6,681 for the three months ended April 3, 2022 and April 4, 2021, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.

Lease, Income

The components of lease income are as follows:

	Three Months Ended
	April 3, 2022		April 4, 2021
Sales-type and direct-financing leases:
Selling profit	$	480	$	1,912
Interest income (a)	7,740		7,489
Operating lease income	43,314		44,122
Variable lease income	14,557		14,754
Franchise rental income (b)	$	57,871	$	58,876

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(a)Included in “Interest expense, net.”

(b)Includes sublease income of $43,165 and $43,250 recognized during the three months ended April 3, 2022 and April 4, 2021, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $9,535 and $9,874 for the three months ended April 3, 2022 and April 4, 2021, respectively.