Segment Information (Tables)

3 Months Ended

Mar. 26, 2023

The following tables present our segment information.


	Three Months Ended
(In thousands)		March 26, 2023		March 27, 2022
Revenues:
Domestic Company-owned restaurants		$	179,866	$	198,765
North America franchising		36,072		34,268
North America commissaries		212,566		209,679
International		38,704		42,707
All others		59,841		57,273
Total revenues		$	527,049	$	542,692

Intersegment revenues:
North America franchising		$	1,052	$	1,053
North America commissaries		51,817		58,507
All others		16,835		19,379
Total intersegment revenues		$	69,704	$	78,939

Operating income:
Domestic Company-owned restaurants (a)		$	6,650	$	1,989
North America franchising		33,400		32,137
North America commissaries		10,730		9,334
International (b)		7,232		4,455
All others		3,157		3,719
Unallocated corporate expenses (c)		(23,366)		(37,111)
Elimination of intersegment (profits) losses		(7)		(88)
Total operating income		$	37,796	$	14,435

(In thousands)		As of March 26, 2023
Property and equipment, net:
Domestic Company-owned restaurants		$	242,755
North America commissaries		152,411
International		17,118
All others		135,467
Unallocated corporate assets		257,368
Accumulated depreciation and amortization		(551,975)
Total property and equipment, net		$	253,144

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(a) The three months ended March 27, 2022 includes a one-time, non-cash charge of $8.4 million associated with the refranchising of the Company’s ownership interest in a 90-restaurant joint venture, recorded as Refranchising and impairment loss. See “Note 10. Divestitures” for additional information.

(b) The three months ended March 27, 2022 includes $3.5 million of one-time, non-cash reserves for certain accounts receivable and impairments of reacquired franchise rights. See “Notes 2. Significant Accounting Policies” and “10. Divestitures” for additional information.

(c) The three months ended March 26, 2023 includes $1.4 million of severance and related costs associated with the transition of certain executives. For the three months ended March 27, 2022, Unallocated corporate expenses includes $13.9 million of one-time, non-cash reserves of certain notes receivable and $5.0 million for certain legal settlements. See “Notes 2. Significant Accounting Policies” and “9. Litigation, Commitments and Contingencies” for additional information.

Schedule of revenue disaggregated by major product line

In the following tables, revenues are disaggregated by major product/service line. The tables also include a reconciliation of the disaggregated revenues by the reportable segment (in thousands):


























	Reportable Segments
	Three Months Ended March 26, 2023
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	179,866	$	—	$	—	$	—	$	—	$	179,866
Franchise royalties and fees	—		37,124		—		12,491		—		49,615
Commissary sales	—		—		264,383		18,972		—		283,355
Other revenues	—		—		—		7,241		76,676		83,917
Eliminations	—		(1,052)		(51,817)		—		(16,835)		(69,704)
Total segment revenues	179,866		36,072		212,566		38,704		59,841		527,049
International other revenues (a)	—		—		—		(7,241)		7,241		—
Total revenues	$	179,866	$	36,072	$	212,566	$	31,463	$	67,082	$	527,049

	Reportable Segments
	Three Months Ended March 27, 2022
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	198,765	$	—	$	—	$	—	$	—	$	198,765
Franchise royalties and fees	—		35,321		—		13,435		—		48,756
Commissary sales	—		—		268,186		21,182		—		289,368
Other revenues	—		—		—		8,090		76,652		84,742
Eliminations	—		(1,053)		(58,507)		—		(19,379)		(78,939)
Total segment revenues	198,765		34,268		209,679		42,707		57,273		542,692
International other revenues (a)	—		—		—		(8,090)		8,090		—
Total revenues	$	198,765	$	34,268	$	209,679	$	34,617	$	65,363	$	542,692

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(a) Other revenues as reported in the Condensed Consolidated Statements of Operations include $7.2 million and $8.1 million of revenues for the three months ended March 26, 2023 and March 27, 2022, respectively, that are part of the international reporting segment. These amounts include marketing fund contributions and sublease rental income from international franchisees in the United Kingdom that provide no significant contribution to operating income but must be reported on a gross basis under accounting requirements. The related expenses for these Other revenues are reported in Other expenses in the Condensed Consolidated Statements of Operations.