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Segment Information
 9 Months Ended
Sep. 29, 2024
Segment Reporting [Abstract]  
Segment Information
12. Segment Information
We have four reportable segments: Domestic Company-owned restaurants, North America franchising, North America commissaries, and International operations. The Domestic Company-owned restaurant segment consists of the operations of all Domestic Company-owned restaurants and derives its revenues principally from retail sales of pizza, Papadias, and side items, including breadsticks, Papa Bites, cheesesticks, boneless chicken wings and bone-in chicken wings, dessert items and canned or bottled beverages. The North America franchising segment consists of our franchise sales and support activities and derives its revenues from sales of franchise and development rights and collection of royalties from our franchisees located in the United States and Canada. The North America commissary segment consists of the operations of our regional dough production and product distribution centers and derives its revenues principally from the sale and distribution of food and paper products to Domestic Company-owned and franchised restaurants in the United States and Canada. The International segment consists of the operations of all Company-owned restaurants located in the UK, as well as distribution sales to franchised Papa Johns restaurants located in the UK and our franchise sales and support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from our International franchisees. All other business units that do not meet the quantitative thresholds for determining reportable segments, which are not operating segments, we refer to as “all other,” which consists of operations that derive revenues from the sale, principally to Company-owned and franchised restaurants, of information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms, as well as franchise contributions to marketing funds.
Generally, we evaluate performance and allocate resources based on operating income. Certain administrative and capital costs are allocated to segments based upon predetermined rates or estimated resource usage. We account for intercompany sales and transfers as if the sales or transfers were to third parties and eliminate the activity in consolidation.
Our reportable segments are business units that provide different products or services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies. No single external customer accounted for 10% or more of our consolidated revenues.
The following tables present our segment information.
Three Months EndedNine Months Ended
(In thousands)September 29,
2024		September 24,
2023		September 29,
2024		September 24,
2023
Revenues:
Domestic Company-owned restaurants$168,672$177,195$518,103$532,841
North America franchising33,83135,041103,937105,824
North America commissaries210,389204,887611,873624,433
International39,09848,481132,318128,539
All others54,81757,208162,386172,754
Total revenues $506,807$522,812$1,528,617$1,564,391
Intersegment revenues:
North America franchising$1,011$1,040$3,101$3,117
North America commissaries52,06351,237151,633154,640
All others13,47216,18040,42249,363
Total intersegment revenues$66,546$68,457$195,156$207,120
Operating income:
Domestic Company-owned restaurants (a)
$(1,748)$6,147$13,388$19,438
North America franchising31,86532,23497,98597,745
North America commissaries (b)
53,59910,69177,33731,818
International (c)
422,270(8,612)13,265
All others2,8342,3798,2026,879
Unallocated corporate expenses (d)
(21,106)(20,792)(60,346)(63,859)
Elimination of intersegment (profits) losses(257)(1,061)(781)(710)
Total operating income$65,229$31,868$127,173$104,576
Property and equipment, net:
Domestic Company-owned restaurants$265,002
North America commissaries150,527
International26,902
All others140,900
Unallocated corporate assets248,855
Accumulated depreciation and amortization(565,678)
Total property and equipment, net$266,508
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(a)    The three and nine months ended September 29, 2024 includes $1.5 million and $5.5 million, respectively, of non-cash impairment and remeasurement charges related primarily to fixed and intangible assets from the refranchising of 15 Domestic restaurants. See “Note 11. Divestitures”.
(b)    The three and nine months ended September 29, 2024 includes $41.3 million pre-tax gain on sale of Texas and Florida QC Center properties, net of transaction costs. See “Note 11. Divestitures”.
(c)    The three and nine months ended September 29, 2024 includes $3.9 million and $19.5 million, respectively, of costs related to the International Transformation Plan. See “Note 9. Restructuring” for additional information. The three and nine months ended September 24, 2023 includes $1.2 million and $2.5 million of costs associated with repositioning the UK portfolio as well as transaction costs related to the acquisition of restaurants from franchisees.
(d)    The nine months ended September 24, 2023 includes $2.0 million of severance and related costs associated with the transition of certain executives. The three and nine months ended September 24, 2023 includes $0.6 million for certain legal settlements.
Disaggregation of Revenue
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 September 29, 2024
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$168,672 $— $— $2,425 $— $171,097 
Franchise royalties and fees— 34,842 — 11,999 — 46,841 
Commissary sales— — 262,452 18,600 — 281,052 
Other revenues— — — 6,074 68,289 74,363 
Eliminations— (1,011)(52,063)— (13,472)(66,546)
Total segment revenues168,672 33,831 210,389 39,098 54,817 506,807 
International other revenues (a)
— — — (6,074)6,074 — 
Total revenues$168,672 $33,831 $210,389 $33,024 $60,891 $506,807 
Reportable Segments
Three Months Ended September 24, 2023
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$177,195 $— $— $14,013 $— $191,208 
Franchise royalties and fees— 36,081 — 12,219 — 48,300 
Commissary sales— — 256,124 16,695 — 272,819 
Other revenues— — — 5,554 73,388 78,942 
Eliminations— (1,040)(51,237)— (16,180)(68,457)
Total segment revenues177,195 35,041 204,887 48,481 57,208 522,812 
International other revenues (a)
— — — (5,554)5,554 — 
Total revenues$177,195 $35,041 $204,887 $42,927 $62,762 $522,812 
Reportable Segments
Nine Months Ended September 29, 2024
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$518,103 $— $— $28,885 $— $546,988 
Franchise royalties and fees— 107,038 — 35,598 — 142,636 
Commissary sales— — 763,506 48,950 — 812,456 
Other revenues— — — 18,885 202,808 221,693 
Eliminations— (3,101)(151,633)— (40,422)(195,156)
Total segment revenues518,103 103,937 611,873 132,318 162,386 1,528,617 
International other revenues (a)
— — — (18,885)18,885 — 
Total revenues$518,103 $103,937 $611,873 $113,433 $181,271 $1,528,617 
Reportable Segments
Nine Months Ended September 24, 2023
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$532,841 $— $— $17,031 $— $549,872 
Franchise royalties and fees— 108,941 — 36,906 — 145,847 
Commissary sales— — 779,073 55,061 — 834,134 
Other revenues— — — 19,541 222,117 241,658 
Eliminations— (3,117)(154,640)— (49,363)(207,120)
Total segment revenues532,841 105,824 624,433 128,539 172,754 1,564,391 
International other revenues (a)
— — — (19,541)19,541 — 
Total revenues$532,841 $105,824 $624,433 $108,998 $192,295 $1,564,391 
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(a)    Other revenues as reported in the Condensed Consolidated Statements of Operations include $6.1 million and $18.9 million of revenues for the three and nine months ended September 29, 2024, respectively, and $5.6 million and $19.5 million of revenues for the three and nine months ended September 24, 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.