Segment Information (Tables)

9 Months Ended

Sep. 29, 2024

The following tables present our segment information.


	Three Months Ended				Nine 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 franchising	33,831		35,041		103,937		105,824
North America commissaries	210,389		204,887		611,873		624,433
International	39,098		48,481		132,318		128,539
All others	54,817		57,208		162,386		172,754
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 commissaries	52,063		51,237		151,633		154,640

All others	13,472		16,180		40,422		49,363
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 franchising	31,865		32,234		97,985		97,745
North America commissaries (b)	53,599		10,691		77,337		31,818
International (c)	42		2,270		(8,612)		13,265
All others	2,834		2,379		8,202		6,879
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 commissaries	150,527
International	26,902
All others	140,900
Unallocated corporate assets	248,855
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.

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 September 29, 2024
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
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 revenues	168,672		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 Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
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 revenues	177,195		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 Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
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 revenues	518,103		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 Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
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 revenues	532,841		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.