System Optimization Gains, Net (Tables)

9 Months Ended

Oct. 01, 2023

System Optimization

System optimization gains, net

Summary of Disposition Activity

The following is a summary of the disposition activity recorded as a result of our system optimization initiative:

	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Number of restaurants sold to franchisees	—		1		—		1
Proceeds from sales of restaurants (a)	$	—	$	79	$	—	$	79
Net assets sold (b)	—		(141)		—		(141)
Net unfavorable leases	—		(360)		—		(360)
Other	—		6		—		6
	—		(416)		—		(416)
Post-closing adjustments on sales of restaurants (c)	537		—		537		3,522
Gain (loss) on sales of restaurants, net	537		(416)		537		3,106
(Loss) gain on sales of other assets, net (d)	(417)		868		(418)		1,032
System optimization gains, net	$	120	$	452	$	119	$	4,138

_______________

(a)In addition to the proceeds noted herein, the Company received cash proceeds of $126 and $284 during the three and nine months ended October 2, 2022, respectively, related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants.

(b)Net assets sold consisted primarily of equipment.

(c)Represents the recognition of deferred gains as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees.

(d)During the nine months ended October 1, 2023, the Company received net cash proceeds of $280 primarily from the sale of surplus and other properties. During the three and nine months ended October 2, 2022, the Company received net cash proceeds of $2,510 and $3,368, respectively, primarily from the sale of surplus and other properties.