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Leases (Tables)
 9 Months Ended
Oct. 03, 2021
Leases [Abstract]  
Lease, Cost
The components of lease cost are as follows:
Three Months EndedNine Months Ended
October 3,
2021		September 27,
2020		October 3,
2021		September 27,
2020
Finance lease cost:
Amortization of finance lease assets$3,543 $3,471 $10,302 $9,995 
Interest on finance lease liabilities10,371 10,244 30,931 30,462 
13,914 13,715 41,233 40,457 
Operating lease cost22,388 23,170 68,761 68,304 
Variable lease cost (a)16,635 15,548 48,406 43,766 
Short-term lease cost1,125 1,006 3,721 3,327 
Total operating lease cost (b)40,148 39,724 120,888 115,397 
Total lease cost$54,062 $53,439 $162,121 $155,854 
_______________

(a)Includes expenses for executory costs of $10,016 and $9,326 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $30,166 and $28,526 for the nine months ended October 3, 2021 and September 27, 2020, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $34,396 and $32,421 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $101,011 and $92,975 for the nine months ended October 3, 2021 and September 27, 2020, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $5,213 and $6,651 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $18,005 and $20,315 for the nine months ended October 3, 2021 and September 27, 2020, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
Schedule of Supplemental Cash Flow and Non-Cash Information Related to Leases The following table includes supplemental cash flow and non-cash information related to leases:
Nine Months Ended
October 3,
2021		September 27,
2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$31,608 $28,689 
Operating cash flows from operating leases69,476 62,026 
Financing cash flows from finance leases9,021 5,850 
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities43,277 24,617 
Operating lease liabilities11,404 12,149 
Schedule of Supplemental Information Related to Leases
The following table includes supplemental information related to leases:
October 3,
2021		January 3,
2021
Weighted-average remaining lease term (years):
Finance leases15.816.2
Operating leases14.214.6
Weighted average discount rate:
Finance leases9.19 %9.54 %
Operating leases5.01 %5.06 %
Supplemental balance sheet information:
Finance lease assets, gross$271,075 $261,308 
Accumulated amortization(60,415)(55,155)
Finance lease assets210,660 206,153 
Operating lease assets783,986 821,480 
Finance Lease, Liability, Maturity
The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of October 3, 2021:
Finance
Leases		Operating
Leases
Fiscal YearCompany-OperatedFranchise
and Other		Company-OperatedFranchise
and Other
2021 (a) (b)$1,398 $13,934 $3,504 $18,313 
20223,699 51,912 14,412 73,572 
20233,644 53,569 14,726 73,226 
20243,712 54,001 14,738 73,145 
20253,787 54,496 14,633 72,829 
Thereafter46,140 682,798 141,258 732,276 
Total minimum payments$62,380 $910,710 $203,271 $1,043,361 
Less interest
(22,694)(405,706)(58,455)(312,148)
Present value of minimum lease payments (c) (d)$39,686 $505,004 $144,816 $731,213 
_______________
(a)Represents future minimum rental payments for non-cancelable leases for the remainder of 2021.

(b)In addition to the 2021 future minimum rental payments, the Company expects to pay $1,038 primarily during 2021 related to rent deferrals obtained due to the COVID-19 pandemic. The related payable is included in “Accrued expenses and other current liabilities.”

(c)The present value of minimum finance lease payments of $15,915 and $528,775 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.

(d)The present value of minimum operating lease payments of $45,541 and $830,488 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.
Lessee, Operating Lease, Liability, Maturity
The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of October 3, 2021:
Finance
Leases		Operating
Leases
Fiscal YearCompany-OperatedFranchise
and Other		Company-OperatedFranchise
and Other
2021 (a) (b)$1,398 $13,934 $3,504 $18,313 
20223,699 51,912 14,412 73,572 
20233,644 53,569 14,726 73,226 
20243,712 54,001 14,738 73,145 
20253,787 54,496 14,633 72,829 
Thereafter46,140 682,798 141,258 732,276 
Total minimum payments$62,380 $910,710 $203,271 $1,043,361 
Less interest
(22,694)(405,706)(58,455)(312,148)
Present value of minimum lease payments (c) (d)$39,686 $505,004 $144,816 $731,213 
_______________
(a)Represents future minimum rental payments for non-cancelable leases for the remainder of 2021.

(b)In addition to the 2021 future minimum rental payments, the Company expects to pay $1,038 primarily during 2021 related to rent deferrals obtained due to the COVID-19 pandemic. The related payable is included in “Accrued expenses and other current liabilities.”

(c)The present value of minimum finance lease payments of $15,915 and $528,775 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.

(d)The present value of minimum operating lease payments of $45,541 and $830,488 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.
Lease, Income
The components of lease income are as follows:
Three Months EndedNine Months Ended
October 3,
2021		September 27,
2020		October 3,
2021		September 27,
2020
Sales-type and direct-financing leases:
Selling profit$705 $182 $4,244 $1,379 
Interest income (a)7,786 7,296 22,861 21,804 
Operating lease income45,834 43,510 134,312 130,514 
Variable lease income16,612 15,211 47,878 42,920 
Franchise rental income (b)$62,446 $58,721 $182,190 $173,434 
_______________

(a)Included in “Interest expense, net.”

(b)Includes sublease income of $46,102 and $43,122 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $134,597 and $126,653 for the nine months ended October 3, 2021 and September 27, 2020, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,087 and $9,379 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $30,156 and $28,538 for the nine months ended October 3, 2021 and September 27, 2020, respectively.
Sales-type and Direct Financing Leases, Lease Receivable, Maturity
The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of October 3, 2021:
Sales-Type and
Direct Financing Leases		Operating
Leases
Fiscal YearSubleasesOwned PropertiesSubleasesOwned Properties
2021 (a) (b)$8,409 $1,407 $28,841 $13,942 
202234,188 2,610 116,068 56,305 
202335,247 2,656 116,795 56,614 
202437,248 2,667 116,962 57,720 
202536,149 2,784 116,443 58,323 
Thereafter479,695 32,057 1,172,444 748,781 
Total future minimum receipts630,936 44,181 $1,667,553 $991,685 
Unearned interest income(341,031)(21,892)
Net investment in sales-type and direct financing leases (c)$289,905 $22,289 
_______________

(a)Represents future minimum rental receipts for non-cancelable leases for the remainder of 2021.

(b)In addition to the 2021 future minimum rental receipts, the Company expects to collect $273 primarily during 2021 related to its offer to franchisees to defer base rent payments in response to the COVID-19 pandemic. The related receivable is included in “Accounts and notes receivable, net.”

(c)The present value of minimum sales-type and direct financing rental receipts of $6,952 and $305,242 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $535.
Lessor, Operating Lease, Payment to be Received, Maturity
The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of October 3, 2021:
Sales-Type and
Direct Financing Leases		Operating
Leases
Fiscal YearSubleasesOwned PropertiesSubleasesOwned Properties
2021 (a) (b)$8,409 $1,407 $28,841 $13,942 
202234,188 2,610 116,068 56,305 
202335,247 2,656 116,795 56,614 
202437,248 2,667 116,962 57,720 
202536,149 2,784 116,443 58,323 
Thereafter479,695 32,057 1,172,444 748,781 
Total future minimum receipts630,936 44,181 $1,667,553 $991,685 
Unearned interest income(341,031)(21,892)
Net investment in sales-type and direct financing leases (c)$289,905 $22,289 
_______________

(a)Represents future minimum rental receipts for non-cancelable leases for the remainder of 2021.

(b)In addition to the 2021 future minimum rental receipts, the Company expects to collect $273 primarily during 2021 related to its offer to franchisees to defer base rent payments in response to the COVID-19 pandemic. The related receivable is included in “Accounts and notes receivable, net.”

(c)The present value of minimum sales-type and direct financing rental receipts of $6,952 and $305,242 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $535.
Schedule of Property Subject To Operating Lease
Properties owned by the Company and leased to franchisees and other third parties under operating leases include:
October 3,
2021		January 3,
2021
Land$280,767 $279,956 
Buildings and improvements307,593 309,605 
Restaurant equipment1,701 1,701 
590,061 591,262 
Accumulated depreciation and amortization(179,439)(170,722)
$410,622 $420,540