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Revenues
 6 Months Ended
Jun. 26, 2019
Revenues [Abstract]  
Revenues Revenues

Our revenues are derived primarily from two sales channels, which we operate as one segment: company restaurants and franchised and licensed restaurants. The following table disaggregates our revenue by sales channels and types of goods or services.

 
Quarter Ended
Two Quarters Ended
 
June 26, 2019
June 27, 2018
June 26, 2019
June 27, 2018
 
(Dollars in thousands)
Company restaurant sales
$
95,447

 
$
102,741

 
$
193,992

 
$
203,934

Franchise and license revenue:
 
 
 
 
 
 
 
Royalties
26,672

 
25,192

 
51,912

 
50,357

Advertising revenue
19,884

 
19,530

 
38,826

 
38,840

Initial and other fees
1,755

 
1,810

 
2,894

 
3,227

Occupancy revenue 
8,126

 
8,061

 
15,671

 
16,249

Franchise and license revenue 
56,437

 
54,593

 
109,303

 
108,673

Total operating revenue
$
151,884

 
$
157,334

 
$
303,295

 
$
312,607



Balances related to contracts with customers consist of receivables, deferred franchise revenue and deferred gift card revenue. See Note 6 for details on our receivables.
Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that will begin amortizing into revenue when the related restaurants are opened. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising. The components of the change in deferred franchise revenue are as follows:

 
(In thousands)
Balance, December 26, 2018
$
20,538

Fees received from franchisees
2,361

Revenue recognized
(1,289
)
Balance, June 26, 2019
21,610

Less current portion included in other current liabilities
2,162

Deferred franchise revenue included in other noncurrent liabilities
$
19,448



Deferred gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of deferred gift card liabilities represents our remaining performance obligations to our customers. The balance of deferred gift card liabilities as of June 26, 2019 and December 26, 2018 was $4.8 million and $6.5 million, respectively. During the two quarters ended June 26, 2019, we recognized revenue of $1.8 million from gift card redemptions at company restaurants.