Leases (Tables)

6 Months Ended

Jul. 03, 2022

Leases [Abstract]

Lease, Cost

The components of lease cost are as follows:

	Three Months Ended				Six Months Ended
	July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021
Finance lease cost:
Amortization of finance lease assets	$	4,106	$	3,251	$	8,170	$	6,759
Interest on finance lease liabilities	10,693		10,267		21,338		20,560
	14,799		13,518		29,508		27,319
Operating lease cost	22,324		23,012		42,985		46,373
Variable lease cost (a)	16,456		16,583		31,259		31,771
Short-term lease cost	1,405		1,270		2,838		2,596
Total operating lease cost (b)	40,185		40,865		77,082		80,740
Total lease cost	$	54,984	$	54,383	$	106,590	$	108,059

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(a)Includes expenses for executory costs of $9,245 and $10,087 for the three months ended July 3, 2022 and July 4, 2021, respectively, and $18,853 and $20,150 for the six months ended July 3, 2022 and July 4, 2021, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $32,071 and $34,063 for the three months ended July 3, 2022 and July 4, 2021, respectively, and $60,996 and $66,615 for the six months ended July 3, 2022 and July 4, 2021, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,479 and $6,111 for the three months ended July 3, 2022 and July 4, 2021, respectively, and $14,773 and $12,792 for the six months ended July 3, 2022 and July 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				Six Months Ended
	July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021
Sales-type and direct-financing leases:
Selling profit	$	1,677	$	1,627	$	2,157	$	3,539
Interest income (a)	7,753		7,586		15,493		15,075
Operating lease income	42,174		44,356		85,488		88,478
Variable lease income	16,436		16,512		30,993		31,266
Franchise rental income (b)	$	58,610	$	60,868	$	116,481	$	119,744

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

(b)Includes sublease income of $43,689 and $45,245 recognized during the three months ended July 3, 2022 and July 4, 2021, respectively, and $86,854 and $88,495 recognized during the six months ended July 3, 2022 and July 4, 2021, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $9,250 and $10,195 for the three months ended July 3, 2022 and July 4, 2021, respectively, and $18,785 and $20,069 for the six months ended July 3, 2022 and July 4, 2021, respectively.