Changes in the carrying amount of goodwill for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 were as follows:


	Franchise Segment		Company-Owned Restaurants Segment		Total
	(In millions)






Balance at January 1, 2023	$	254.0	$	—	$	254.0
Purchase price adjustment	0.1		—		0.1
Balance at December 31, 2023	254.1		—		254.1
Business acquisition	—		2.8		2.8
Impairment loss	(7.1)		—		(7.1)
Disposition of assets	—		(1.2)		(1.2)
Balance at December 29, 2024	247.0		1.6		248.6
Business acquisition	—		1.6		1.6
Purchase price adjustment	—		(0.6)		(0.6)


Balance at December 28, 2025	$	247.0	$	2.6	$	249.6

In November 2024, the Company acquired 56 Applebee's restaurants from franchisees, of which nine were simultaneously refranchised and sold to a different franchisee. The Company completed the purchase price allocation as described in Note 18 - Business Acquisition of the Notes to the Consolidated Financial Statements, and allocated $2.8 million of resulting goodwill to the Company-owned restaurants Segment. The Company simultaneously allocated $1.2 million of this goodwill to the disposal group related to the refranchising and sale of the restaurant assets of the nine Applebee's company-owned restaurants.

In May 2025, the Company acquired 12 Applebee's restaurants from a franchisee as described in Note 18 - Business Acquisition of the Notes to the Consolidated Financial Statements, and allocated $1.6 million of resulting goodwill to the Company-owned restaurants Segment.


	December 28, 2025						December 29, 2024
	Gross		Accumulated Impairment Loss		Net		Gross		Accumulated Impairment Loss		Net
	(In millions)
Franchise Segment	$	704.6	$	(457.6)	$	247.0	$	704.6	$	(457.6)	$	247.0

Company-Owned Restaurants Segment	2.6		—		2.6		1.6		—		1.6


Total	$	707.2	$	(457.6)	$	249.6	$	706.2	$	(457.6)	$	248.6

In the fourth quarter of 2025, the Company performed qualitative assessments of its goodwill in accordance with its accounting policies. As result of the qualitative assessment, the Company concluded it was more likely than not that the fair values of each reporting unit exceeded the respective carrying amounts and therefore, a quantitative test of impairment was not necessary.

In the fourth quarter of 2024, the Company noted, the unfavorable trend in Fuzzy's same-restaurant sales experienced throughout the year and a decrease in Fuzzy's revenue compared to the same period of the prior year. Based on these unfavorable developments, the Company determined that indicators of impairment existed and that a test of goodwill for impairment should be performed in the fourth quarter of 2024.

As a result of performing the quantitative test of impairment, the Company recognized an impairment of Fuzzy's goodwill of $7.1 million. The amount of goodwill impairment was determined as the amount by which the carrying amount of the goodwill exceeded the fair value of the Fuzzy's goodwill within the franchise segment as estimated in the impairment test.

Also in the fourth quarter of fiscal 2024, the Company performed qualitative assessments of the remaining goodwill balance within the franchise segment in accordance with its accounting policies. As result of the qualitative assessment, the Company concluded it was more likely than not that the fair values exceeded the respective carrying amounts and therefore, a quantitative test for the remaining goodwill balance within the franchise segment was not necessary.

In the fourth quarter of 2023, the Company performed qualitative assessments of its goodwill in accordance with its accounting policies, and determined that it was more-likely-than-not that an impairment does not exist. As a result of performing the quantitative test of impairment, the fair value was substantially in excess of its respective carrying value as of the testing date.