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Restructuring
 9 Months Ended
Sep. 28, 2025
Restructuring and Related Activities [Abstract]  
Restructuring
9. Restructuring

International Restructuring
In December 2023, the Company announced international transformation initiatives (the “International Transformation Plan”) designed to evolve our business structure to deliver an enhanced value proposition to our International customers and franchisees, ensure targeted investments and efficient resource management, and better position our largest markets, including the UK, for long-term profitable growth and brand strength. During fiscal 2023 and 2024, the Company implemented approved initiatives under the International Transformation Plan related to establishing new regional hubs across APAC (Asia Pacific), EMEA (Europe, Middle East and Africa), and Latin America.
During 2024, the Company commenced the next phase of the International Transformation Plan, which involved strategic restaurant closures and divestitures in the UK in order to optimize the Company’s UK restaurant portfolio and improve overall profitability by closing unprofitable locations and mitigating remaining occupancy costs at closed locations, as well as enhancing profitability across the remaining portfolio of Company-owned restaurants. Execution on this phase resulted in the closure of 43 underperforming UK Company-owned restaurants and 32 franchised locations during 2024 and 2025. We recognized impairment charges of $1.1 million and $10.1 million during the three and nine months ended September 29, 2024, respectively, for the amount by which the carrying value exceeded the estimated fair value of the asset groups.
During 2024, the Company also completed the refranchising of 60 formerly Company-owned restaurants to primarily existing franchisees. We have completed substantially all of the strategic restaurant closures in the UK market and the Company’s efforts during 2025 have turned towards growth opportunities and mitigating closure-related costs as we complete optimization of the portfolio.
The following table summarizes restructuring related costs recorded for the three and nine months ended September 28, 2025 and September 29, 2024 (in thousands):

Three Months EndedNine Months Ended
September 28,
2025		September 29,
2024		September 28,
2025		September 29,
2024
Professional services and other related costs$416 $2,029 $2,630 $4,730 
Loss on franchisee notes receivable(10)171 2,151 1,735 
Long-lived asset impairment charges33 1,145 834 10,121 
Lease terminations and other lease related costs(215)426 (775)732 
Employee termination costs7 98 22 542 
Loss on refranchising Company-owned restaurants— 7 — 1,744 
Total international transformation costs$231 $3,876 $4,862 $19,604 
Stock-based compensation expense/(forfeitures on unvested awards)— (14)(21)(90)
Total international transformation costs, inclusive of stock-based award expense/forfeitures$231 $3,862 $4,841 $19,514 
The Company has incurred total restructuring related costs of $34.3 million since commencement of the International Transformation Plan, all of which were included in General and administrative expenses in the Condensed Consolidated Statements of Operations. Total estimated pre-tax costs associated with the International Transformation Plan are approximately $35 million (inclusive of the $34.3 million incurred through the third quarter of 2025), substantially all of which will be recorded within our International segment, and we expect to incur the remainder of these costs through 2025.
The following table presents changes in the balance of accrued expenses relating to approved initiatives, which are recorded in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets (in thousands):
Employee termination costsProfessional services and other related costsLease terminations and other lease related costsTotal
Balance as of December 29, 2024$133 $2,335 $2,073 $4,541 
Charges22 2,630 — 2,652 
Payments (136)(4,577)(1,149)(5,862)
Balance as of September 28, 2025$19 $388 $924 $1,331