Segment Information (Tables)

12 Months Ended

Dec. 29, 2024

The tables below present our operating results by segment (in thousands). The significant expense categories and amounts presented in the tables below align with the segment-level information that is regularly provided to the CODM. A reconciliation to Company results is included in the following section.


	Year Ended December 29, 2024
	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		Total
Revenues from external customers	$	692,736	$	139,091	$	831,774	$	174,054	$	1,837,655
Intersegment revenues	—		4,150		205,234		—		209,384
Revenues	$	692,736	$	143,241	$	1,037,008	$	174,054	$	2,047,039

Less costs and expenses(a):
COS - Product Costs	$	207,704	$	—	$	756,170	$	51,889	$	1,015,763
COS - Salaries & Benefits	226,325		—		116,645		13,759		356,729
General & Administrative (b)	39,822		35,064		37,690		38,379		150,955
Other Segment Expenses (c)	194,216		—		77,945		56,259		328,420
Adjusted operating income	$	24,669	$	108,177	$	48,558	$	13,768	$	195,172

	Year Ended December 31, 2023
	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		Total
Revenues from external customers	$	726,362	$	144,550	$	852,361	$	182,487	$	1,905,760
Intersegment revenues	—		4,267		210,614		—		214,881
Revenues	$	726,362	$	148,817	$	1,062,975	$	182,487	$	2,120,641

Less costs and expenses(a):
COS - Product Costs	$	215,545	$	—	$	787,966	$	54,514	$	1,058,025
COS - Salaries & Benefits	238,434		—		118,678		17,853		374,965
General & Administrative	40,714		15,017		36,960		31,271		123,962
Other Segment Expenses (c)	198,199		—		76,055		59,794		334,048
Adjusted operating income	$	33,470	$	133,800	$	43,316	$	19,055	$	229,641

	Year Ended December 25, 2022
	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		Total
Revenues from external customers	$	708,389	$	137,399	$	869,634	$	158,682	$	1,874,104
Intersegment revenues	—		4,122		217,570		—		221,692
Revenues	$	708,389	$	141,521	$	1,087,204	$	158,682	$	2,095,796

Less costs and expenses(a):
COS - Product Costs	$	218,732	$	—	$	820,636	$	57,781	$	1,097,149
COS - Salaries & Benefits	237,095		—		113,357		4,117		354,569
General & Administrative	29,510		13,639		33,291		21,889		98,329
Other Segment Expenses (c)	198,674		—		77,389		47,360		323,423
Adjusted operating income	$	24,378	$	127,882	$	42,531	$	27,535	$	222,326

______________________________

(a) Costs and expenses excludes certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business (see reconciliation table that follows).

(b) As noted in the commentary above, the Company prospectively adjusted for updates in internal cost allocation methodologies in 2024, which increased the amount of internal general and administrative expenses allocated to the segments from Unallocated corporate expenses. The allocation updates resulted in the following increases to segment G&A in 2024: $0.4 million to Domestic Company-Owned restaurants, $22.9 million to North America franchising, $3.3 million to International and $0.1 million to North America commissaries. There was no impact on overall company profitability, as the change was offset within Unallocated corporate expenses (see reconciliation table below).

(c) Other Segment Expenses represents all operating expenses that are not included in the significant segment expense categories. The components of Other Segment Expenses are: other cost of sales that are not included in “COS - Product Costs” or “COS - Salaries & Benefits” (including, but not limited to, delivery expenses, Company-owned restaurant advertising costs, insurance, rent, utilities, and aggregator fees), advertising costs, depreciation and amortization costs, and other operating expenses.

Reconciliation of Segment Results to Company Results

The following table reconciles Total Revenues from our segments to Total Revenues and Total Adjusted operating income from our segments to Income before income taxes (in thousands):


	Year Ended
	2024		2023		2022
Total Revenues from our segments	$	2,047,039	$	2,120,641	$	2,095,796
All Other revenue (a)	279,385		296,440		298,282
Elimination of intersegment revenue	(267,037)		(281,368)		(291,975)
Total Revenues	$	2,059,387	$	2,135,713	$	2,102,103

	Year Ended
	2024		2023		2022
Total Adjusted operating income from our segments	$	195,172	$	229,641	$	222,326
All Other profit (a)	4,065		10,116		10,084
Unallocated corporate expenses (b)	(51,054)		(82,759)		(74,043)
Elimination of intersegment (profit) loss	—		27		(905)


Other income/(expense) adjustments (c)	8,521		(9,883)		(48,432)
Operating income	156,704		147,142		109,030
Net interest expense	(42,578)		(43,469)		(25,261)
Income before income taxes	$	114,126	$	103,673	$	83,769

______________________________

(a) As noted in the commentary above, All Other revenue and profit is derived from business units that do not meet the quantitative or qualitative thresholds for determining reportable segments, including: franchise contributions to marketing funds, information systems and related services used in restaurant operations, and sale of printing and promotional items (principally to Company-owned and franchised restaurants).

(b) Unallocated corporate expenses represent administrative fees incurred by the restaurant support centers, including: information systems and related services, corporate salaries and bonuses, stock compensation expense, and other corporate costs.

(c) Other income/(expense) adjustments represent certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business. As such, management excludes these items from the evaluation of Adjusted operating income. For the periods above, the adjustments include:


	Year Ended
(In thousands)	December 29, 2024		December 31, 2023		December 25, 2022
Gain on sale of QC Center properties (See Note 22)	$	41,289	$	—	$	—
International restructuring costs (See Note 16)	(27,273)		(2,178)		—
Refranchising and impairment losses	(5,495)		—		(26,702)
UK repositioning and acquisition-related costs	—		(4,243)		(5,223)
Legal settlements	—		(577)		(15,000)
Other costs	—		(2,885)		(1,507)
Total adjustments	$	8,521	$	(9,883)	$	(48,432)

Depreciation and Amortization by Segment

The following table presents depreciation and amortization by segment.


(In thousands)	2024		2023		2022
Depreciation and amortization:
Domestic Company-owned restaurants	$	16,560	$	14,184	$	11,495
North America commissaries	15,780		16,046		13,299
International	4,134		3,167		1,774
All Other	22,396		15,572		12,681
Unallocated corporate expenses	10,537		15,121		12,783
Total depreciation and amortization	$	69,407	$	64,090	$	52,032

Schedule of revenue disaggregated by major product line

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



	Year Ended December 29, 2024
	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All Other		Elimination of Intersegment Revenue		Total
Company-owned restaurant sales	$	692,736	$	—	$	—	$	31,930	$	—	$	—	$	724,666
Franchise royalties and fees	—		143,241		—		47,941		—		(4,150)		187,032
Commissary revenues	—		—		1,037,008		67,890		—		(205,234)		899,664
Other revenues	—		—		—		12,701		85,914		(14,933)		83,682
Advertising funds revenue	—		—		—		13,592		193,471		(42,720)		164,343
Total Revenues	$	692,736	$	143,241	$	1,037,008	$	174,054	$	279,385	$	(267,037)	$	2,059,387



	Year Ended December 31, 2023
	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All Other		Elimination of Intersegment Revenue		Total
Company-owned restaurant sales	$	726,362	$	—	$	—	$	34,463	$	—	$	—	$	760,825
Franchise royalties and fees	—		148,817		—		50,437		—		(4,267)		194,987
Commissary revenues	—		—		1,062,975		72,287		—		(210,614)		924,648
Other revenues	—		—		—		12,617		101,789		(16,369)		98,037
Advertising funds revenue	—		—		—		12,683		194,651		(50,118)		157,216
Total Revenues	$	726,362	$	148,817	$	1,062,975	$	182,487	$	296,440	$	(281,368)	$	2,135,713



	Year Ended December 25, 2022
	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All Other		Elimination of Intersegment Revenue		Total
Company-owned restaurant sales	$	708,389	$	—	$	—	$	—	$	—	$	—	$	708,389
Franchise royalties and fees	—		141,521		—		49,422		—		(4,122)		186,821
Commissary revenues	—		—		1,087,204		80,481		—		(217,570)		950,115
Other revenues	—		—		—		14,135		107,194		(19,683)		101,646
Advertising funds revenue	—		—		—		14,644		191,088		(50,600)		155,132
Total Revenues	$	708,389	$	141,521	$	1,087,204	$	158,682	$	298,282	$	(291,975)	$	2,102,103