Revenue (Notes)

9 Months Ended

Sep. 29, 2019

Revenue

Disaggregation of Revenue

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



	U.S.		Canada		Other International		Total
Three Months Ended September 29, 2019
Sales at Company-operated restaurants	$	181,977	$	—	$	—	$	181,977
Franchise royalty revenue	90,791		6,529		4,947		102,267
Franchise fees	5,838		877		173		6,888
Franchise rental income	50,987		8,931		—		59,918
Advertising funds revenue	81,386		5,444		—		86,830
Total revenues	$	410,979	$	21,781	$	5,120	$	437,880

Nine Months Ended September 29, 2019
Sales at Company-operated restaurants	$	530,724	$	—	$	—	$	530,724
Franchise royalty revenue	266,599		18,341		14,991		299,931
Franchise fees	17,563		1,997		742		20,302
Franchise rental income	151,693		25,238		—		176,931
Advertising funds revenue	238,804		15,119		—		253,923
Total revenues	$	1,205,383	$	60,695	$	15,733	$	1,281,811

Three Months Ended September 30, 2018
Sales at Company-operated restaurants	$	165,323	$	—	$	—	$	165,323
Franchise royalty revenue	84,648		6,260		4,593		95,501
Franchise fees	5,575		1,855		281		7,711
Franchise rental income	43,900		6,574		—		50,474
Advertising funds revenue	76,492		5,049		—		81,541
Total revenues	$	375,938	$	19,738	$	4,874	$	400,550

Nine Months Ended September 30, 2018
Sales at Company-operated restaurants	$	486,316	$	—	$	—	$	486,316
Franchise royalty revenue	252,094		17,696		13,812		283,602
Franchise fees	19,671		4,776		630		25,077
Franchise rental income	133,046		19,064		—		152,110
Advertising funds revenue	230,391		14,620		—		245,011
Total revenues	$	1,121,518	$	56,156	$	14,442	$	1,192,116

Contract Balances

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



	September 29, 2019 (a)		December 30, 2018 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	39,669	$	40,300
Receivables, which are included in “Advertising funds restricted assets”	49,102		47,332
Deferred franchise fees (c)	100,751		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 $9,314 and $91,437 as of September 29, 2019, respectively, and $9,973 and $92,232 as of December 30, 2018, respectively.

Significant changes in deferred franchise fees are as follows:



	Nine Months Ended
	September 29, 2019			September 30, 2018
Deferred franchise fees at beginning of period	$	102,205		$	102,492
Revenue recognized during the period	(6,635		)	(7,393		)
New deferrals due to cash received and other	5,181			7,913
Deferred franchise fees at end of period	$	100,751		$	103,012

Anticipated Future Recognition of Deferred Franchise Fees

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)	$	2,164
2020	7,399
2021	6,118
2022	5,858
2023	5,633
Thereafter	73,579
	$	100,751

_______________

(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.