Leases (Tables)

9 Months Ended

Oct. 02, 2022

Leases [Abstract]

Lease, Cost

The components of lease cost are as follows:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Finance lease cost:
Amortization of finance lease assets	$	4,053	$	3,543	$	12,223	$	10,302
Interest on finance lease liabilities	10,717		10,371		32,055		30,931
	14,770		13,914		44,278		41,233
Operating lease cost	21,929		22,388		64,914		68,761
Variable lease cost (a)	16,367		16,635		47,626		48,406
Short-term lease cost	1,116		1,125		3,954		3,721
Total operating lease cost (b)	39,412		40,148		116,494		120,888
Total lease cost	$	54,182	$	54,062	$	160,772	$	162,121

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(a)Includes expenses for executory costs of $8,943 and $10,016 for the three months ended October 2, 2022 and October 3, 2021, respectively, and $27,796 and $30,166 for the nine months ended October 2, 2022 and October 3, 2021, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $31,559 and $34,396 for the three months ended October 2, 2022 and October 3, 2021, respectively, and $92,555 and $101,011 for the nine months ended October 2, 2022 and October 3, 2021, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,357 and $5,213 for the three months ended October 2, 2022 and October 3, 2021, respectively, and $22,130 and $18,005 for the nine months ended October 2, 2022 and October 3, 2021, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.

Lease, Income

The components of lease income are as follows:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Sales-type and direct-financing leases:
Selling profit	$	711	$	705	$	2,868	$	4,244
Interest income (a)	7,784		7,786		23,277		22,861
Operating lease income	42,351		45,834		127,839		134,312
Variable lease income	16,112		16,612		47,105		47,878
Franchise rental income (b)	$	58,463	$	62,446	$	174,944	$	182,190

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

(b)Includes sublease income of $43,540 and $46,102 recognized during the three months ended October 2, 2022 and October 3, 2021, respectively, and $130,394 and $134,597 recognized during the nine months ended October 2, 2022 and October 3, 2021, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $8,947 and $10,087 for the three months ended October 2, 2022 and October 3, 2021, respectively, and $27,732 and $30,156 for the nine months ended October 2, 2022 and October 3, 2021, respectively.