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Business Acquisition
 12 Months Ended
Dec. 28, 2025
Business Combination [Abstract]  
Business Acquisition Business Acquisition
From time to time, the Company may acquire restaurants from franchisees to invest in the system, improve operations through innovation tests and create a blueprint for franchisee success and growth.
2025 Acquisitions
On March 5, 2025, the Company entered into an agreement with an IHOP franchisee to acquire 10 IHOP restaurants across Ohio and Kentucky for $0.2 million of consideration. Due to the fair value of the assets acquired exceeding the consideration transferred, the transaction resulted in a $0.2 million gain on bargain purchase, recorded in general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Income for the year ended December 28, 2025.
On May 19, 2025, the Company entered into an agreement with an Applebee's franchisee to acquire 12 Applebee's restaurants across Kentucky, Indiana, Arkansas, and Oklahoma for $1.3 million of consideration. The following table summarizes the estimated fair value of net assets acquired at the date of acquisition:
(In millions)
Off-market leases
$1.2 
Cash
0.9
Inventory and other current assets
0.4
Total identifiable assets acquired
2.5
Liabilities assumed
(2.8)
Net identifiable liabilities acquired
(0.3)
Goodwill
1.6
Consideration transferred
$1.3 
The excess of the purchase price over the fair value of identifiable net assets acquired amounted to $1.6 million. During the allowable allocation period in 2025, the Company recorded a $0.1 million purchase price adjustment. The goodwill allocated to the Company-owned restaurants Segment of $1.7 million as of December 28, 2025 is deductible for federal income tax purposes.
2024 Acquisitions
On November 11, 2024, the Company entered into an agreement with a former Applebee's franchisee to acquire 15 Applebee's restaurants. The transaction was structured as a non-cash transaction, for no consideration transferred by the Company. This resulted in a $0.6 million gain on bargain purchase, which was recognized in the General and administrative expenses in the Consolidated Statements of Comprehensive Income for the year ended December 29, 2024.
The following table summarizes the estimated fair value of net assets acquired at the date of acquisition:
(In millions)
Equipment and fixtures$1.1 
Inventory and other current assets0.2 
Total identifiable assets acquired1.3 
Liabilities assumed(0.7)
Bargain purchase gain$0.6 
On November 19, 2024, the Company entered into an agreement with an Applebee's franchisee to acquire 41 Applebee's restaurants for consideration transferred of $8.3 million.
The following table summarizes the recognized amount of assets acquired and liabilities assumed as of the date of acquisition:


(In millions)
Equipment and fixtures$12.0 
Inventory and other current assets0.9
Reacquired franchise rights0.3
Off-market leases(4.1)
Total identifiable assets acquired9.1 
Liabilities assumed(3.6)
Total identifiable net assets5.5
Goodwill2.8
Consideration transferred$8.3 
The excess of the purchase price over the fair value of identifiable net assets acquired amounted to $2.8 million. During the allowable allocation period in 2025, the Company recorded a $(1.0) million purchase price adjustment.
The results of operation of these restaurants are included in the Company's consolidated results from the acquisition date. The Company has not presented pro forma results of the restaurants for periods prior to the acquisition because the business is not considered significant as measured by the amount of the Company's investment in and assets of the business relative to the Company's consolidated balance sheet and by the income before income taxes of the business relative to the Company's average consolidated income before income taxes for the most recent five-year period excluding loss years.