Revenue (Tables)

6 Months Ended

Jun. 30, 2019

The following tables disaggregate revenue by primary geographical market and source:



	U.S.		Canada		Other International			Total
Three Months Ended June 30, 2019
Sales at Company-operated restaurants	$	181,050	$	—	$	—		$	181,050
Franchise royalty revenue	91,430		6,304		5,087			102,821
Franchise fees	5,716		708		(120		)	6,304
Franchise rental income	50,041		8,520		—			58,561
Advertising funds revenue	81,437		5,175		—			86,612
Total revenues	$	409,674	$	20,707	$	4,967		$	435,348

Six Months Ended June 30, 2019
Sales at Company-operated restaurants	$	348,747	$	—	$	—		$	348,747
Franchise royalty revenue	175,808		11,812		10,044			197,664
Franchise fees	11,725		1,120		569			13,414
Franchise rental income	100,706		16,307		—			117,013
Advertising funds revenue	157,418		9,675		—			167,093
Total revenues	$	794,404	$	38,914	$	10,613		$	843,931

Three Months Ended July 1, 2018
Sales at Company-operated restaurants	$	167,344	$	—	$	—		$	167,344
Franchise royalty revenue	87,224		6,073		4,861			98,158
Franchise fees	7,011		2,275		115			9,401
Franchise rental income	44,881		6,648		—			51,529
Advertising funds revenue	79,485		5,085		—			84,570
Total revenues	$	385,945	$	20,081	$	4,976		$	411,002

Six Months Ended July 1, 2018
Sales at Company-operated restaurants	$	320,993	$	—	$	—		$	320,993
Franchise royalty revenue	167,446		11,436		9,219			188,101
Franchise fees	14,096		2,921		349			17,366
Franchise rental income	89,146		12,490		—			101,636
Advertising funds revenue	153,899		9,571		—			163,470
Total revenues	$	745,580	$	36,418	$	9,568		$	791,566

Contract balances, assets and liabilities

The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:



	June 30, 2019 (a)		December 30, 2018 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	43,398	$	40,300
Receivables, which are included in “Advertising funds restricted assets”	49,308		47,332
Deferred franchise fees (c)	101,267		102,205

_______________


(a)	Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s condensed consolidated statements of operations.


(b)	Includes receivables related to “Sales” and “Franchise royalty revenue and fees.”

(c)

Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $9,679 and $91,588 as of June 30, 2019, respectively, and $9,973 and $92,232 as of December 30, 2018, respectively.

Deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:



	Six Months Ended
	June 30, 2019			July 1, 2018
Deferred franchise fees at beginning of period	$	102,205		$	102,492
Revenue recognized during the period	(4,609		)	(5,127		)
New deferrals due to cash received and other	3,671			6,358
Deferred franchise fees at end of period	$	101,267		$	103,723

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:



Estimate for fiscal year:
2019 (a)	$	4,260
2020	7,025
2021	5,985
2022	5,782
2023	5,527
Thereafter	72,688
	$	101,267

_______________

(a)

Represents franchise fees expected to be recognized for the remainder of 2019, which includes development-related franchise fees expected to be recognized over a duration of one year or less.