Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

The following tables present our segment information.


	Three Months Ended				Six Months Ended
(In thousands)	June 30, 2024		June 25, 2023		June 30, 2024		June 25, 2023
Revenues:
Domestic Company-owned restaurants	$	173,207	$	175,780	$	349,431	$	355,646
North America franchising	34,409		34,711		70,106		70,783
North America commissaries	198,197		206,980		401,484		419,546
International	46,547		41,354		93,220		80,058
All others	55,534		55,705		107,569		115,546
Total revenues	$	507,894	$	514,530	$	1,021,810	$	1,041,579

Intersegment revenues:
North America franchising	$	1,041	$	1,025	$	2,090	$	2,077
North America commissaries	50,303		51,586		99,570		103,403
International	—		869		—		869
All others	13,778		16,348		26,950		33,183
Total intersegment revenues	$	65,122	$	69,828	$	128,610	$	139,532

Operating income:
Domestic Company-owned restaurants (a)	$	4,777	$	6,641	$	15,136	$	13,291
North America franchising	32,409		32,111		66,120		65,511
North America commissaries	11,403		10,397		23,738		21,127
International (b)	(2,665)		3,763		(8,654)		10,995
All others	2,170		1,343		5,368		4,500
Unallocated corporate expenses (c)	(19,598)		(19,701)		(39,240)		(43,067)
Elimination of intersegment (profits) losses	(270)		358		(524)		351
Total operating income	$	28,226	$	34,912	$	61,944	$	72,708

Property and equipment, net:
Domestic Company-owned restaurants	$	261,833
North America commissaries	147,643
International	25,034
All others	137,676
Unallocated corporate assets	245,337
Accumulated depreciation and amortization	(551,830)
Total property and equipment, net	$	265,693

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(a) The three and six months ended June 30, 2024 includes a $4.0 million non-cash impairment charge related to fixed and intangible assets related to certain Domestic restaurants.

(b) The three and six months ended June 30, 2024 includes $6.1 million and $15.7 million, respectively, of costs related to the International Transformation Plan. See “Note 9. Restructuring” for additional information. The three and six months ended June 25, 2023 includes $1.3 million of costs associated with repositioning the UK portfolio as well as transaction costs related to the acquisition of stores from franchisees.

(c) The three and six months ended June 25, 2023 includes $0.7 million and $2.0 million, respectively, of severance and related costs associated with the transition of certain executives.

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 June 30, 2024
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	173,207	$	—	$	—	$	11,433	$	—	$	184,640
Franchise royalties and fees	—		35,450		—		12,143		—		47,593
Commissary sales	—		—		248,500		16,125		—		264,625
Other revenues	—		—		—		6,846		69,312		76,158
Eliminations	—		(1,041)		(50,303)		—		(13,778)		(65,122)
Total segment revenues	173,207		34,409		198,197		46,547		55,534		507,894
International other revenues (a)	—		—		—		(6,846)		6,846		—
Total revenues	$	173,207	$	34,409	$	198,197	$	39,701	$	62,380	$	507,894

	Reportable Segments
	Three Months Ended June 25, 2023
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	175,780	$	—	$	—	$	3,018	$	—	$	178,798
Franchise royalties and fees	—		35,736		—		12,196		—		47,932
Commissary sales	—		—		258,566		20,263		—		278,829
Other revenues	—		—		—		6,746		72,053		78,799
Eliminations	—		(1,025)		(51,586)		(869)		(16,348)		(69,828)
Total segment revenues	175,780		34,711		206,980		41,354		55,705		514,530
International other revenues (a)	—		—		—		(6,746)		6,746		—
Total revenues	$	175,780	$	34,711	$	206,980	$	34,608	$	62,451	$	514,530

	Reportable Segments
	Six Months Ended June 30, 2024
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	349,431	$	—	$	—	$	26,460	$	—	$	375,891
Franchise royalties and fees	—		72,196		—		23,599		—		95,795
Commissary sales	—		—		501,054		30,350		—		531,404
Other revenues	—		—		—		12,811		134,519		147,330
Eliminations	—		(2,090)		(99,570)		—		(26,950)		(128,610)
Total segment revenues	349,431		70,106		401,484		93,220		107,569		1,021,810
International other revenues (a)	—		—		—		(12,811)		12,811		—
Total revenues	$	349,431	$	70,106	$	401,484	$	80,409	$	120,380	$	1,021,810


	Reportable Segments
	Six Months Ended June 25, 2023
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	355,646	$	—	$	—	$	3,018	$	—	$	358,664
Franchise royalties and fees	—		72,860		—		24,687		—		97,547
Commissary sales	—		—		522,949		39,235		—		562,184
Other revenues	—		—		—		13,987		148,729		162,716
Eliminations	—		(2,077)		(103,403)		(869)		(33,183)		(139,532)
Total segment revenues	355,646		70,783		419,546		80,058		115,546		1,041,579
International other revenues (a)	—		—		—		(13,987)		13,987		—
Total revenues	$	355,646	$	70,783	$	419,546	$	66,071	$	129,533	$	1,041,579

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(a) Other revenues as reported in the Condensed Consolidated Statements of Operations include $6.8 million and $12.8 million of revenues for the three and six months ended June 30, 2024, respectively, and $6.7 million and $14.0 million of revenues for the three and six months ended June 25, 2023, 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 income before income taxes 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.