Leases (Tables)

9 Months Ended

Oct. 01, 2023

Leases [Abstract]

Lease, Cost

The components of lease cost are as follows:

	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Finance lease cost:
Amortization of finance lease assets	$	4,111	$	4,053	$	12,232	$	12,223
Interest on finance lease liabilities	10,664		10,717		32,157		32,055
	14,775		14,770		44,389		44,278
Operating lease cost	21,577		21,929		64,455		64,914
Variable lease cost (a)	16,889		16,367		50,489		47,626
Short-term lease cost	1,466		1,116		4,433		3,954
Total operating lease cost (b)	39,932		39,412		119,377		116,494
Total lease cost	$	54,707	$	54,182	$	163,766	$	160,772

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(a)Includes expenses for executory costs of $9,777 and $8,943 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $29,797 and $27,796 for the nine months ended October 1, 2023 and October 2, 2022, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $31,824 and $31,559 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $94,751 and $92,555 for the nine months ended October 1, 2023 and October 2, 2022, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,570 and $7,357 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $22,981 and $22,130 for the nine months ended October 1, 2023 and October 2, 2022, 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				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Sales-type and direct-financing leases:
Selling profit	$	354	$	711	$	1,555	$	2,868
Interest income (a)	7,853		7,784		23,583		23,277
Operating lease income	40,567		42,351		123,352		127,839
Variable lease income	17,000		16,112		50,055		47,105
Franchise rental income (b)	$	57,567	$	58,463	$	173,407	$	174,944

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

(b)Includes sublease income of $42,545 and $43,540 recognized during the three months ended October 1, 2023 and October 2, 2022, respectively, and $128,457 and $130,394 recognized during the nine months ended October 1, 2023 and October 2, 2022, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $9,811 and $8,947 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $29,704 and $27,732 for the nine months ended October 1, 2023 and October 2, 2022, respectively.