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Leases (Tables)
 12 Months Ended
Jan. 01, 2023
Leases [Abstract]  
Lease, Cost
The components of lease cost for 2022, 2021 and 2020 are as follows:
Year Ended
202220212020
Finance lease cost:
Amortization of finance lease assets$15,440 $13,992 $13,395 
Interest on finance lease liabilities42,918 41,419 40,682 
58,358 55,411 54,077 
Operating lease cost86,050 89,283 91,475 
Variable lease cost (a)64,473 63,853 59,076 
Short-term lease cost5,439 5,102 4,641 
Total operating lease cost (b)155,962 158,238 155,192 
Total lease cost$214,320 $213,649 $209,269 
_______________

(a)Includes expenses for executory costs of $38,749, $39,646, and $38,652 for 2022, 2021 and 2020, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $123,924, $132,158 and $125,553 for 2022, 2021 and 2020, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $29,648, $23,558 and $26,866 for 2022, 2021 and 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:
Year Ended
202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$42,979 $42,277 $39,349 
Operating cash flows from operating leases88,372 91,930 85,689 
Financing cash flows from finance leases17,312 13,640 8,383 
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities34,478 82,032 34,918 
Operating lease liabilities24,742 58,770 18,327 
Schedule of Supplemental Information Related to Leases
The following table includes supplemental information related to leases:
Year End
January 1, 2023January 2,
2022
Weighted-average remaining lease term (years):
Finance leases15.115.8
Operating leases13.714.1
Weighted average discount rate:
Finance leases8.66 %8.91 %
Operating leases4.90 %4.94 %
Supplemental balance sheet information:
Finance lease assets, gross$310,686 $307,965 
Accumulated amortization(76,116)(63,686)
Finance lease assets234,570 244,279 
Operating lease assets754,498 812,620 
Finance Lease, Liability, Maturity
The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of January 1, 2023:
Finance
Leases		Operating
Leases
Fiscal YearCompany-OperatedFranchise
and Other		Company-OperatedFranchise
and Other
2023$6,590 $54,163 $21,948 $65,838 
20246,683 54,763 21,891 66,211 
20256,883 55,357 21,666 66,072 
20267,028 57,043 22,113 65,314 
20277,072 57,742 22,047 64,901 
Thereafter81,853 603,101 185,694 537,504 
Total minimum payments$116,109 $882,169 $295,359 $865,840 
Less interest
(39,079)(369,006)(78,935)(242,093)
Present value of minimum lease payments (a) (b)$77,030 $513,163 $216,424 $623,747 
_______________

(a)The present value of minimum finance lease payments of $18,316 and $571,877 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.

(b)The present value of minimum operating lease payments of $48,120 and $792,051 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 January 1, 2023:
Finance
Leases		Operating
Leases
Fiscal YearCompany-OperatedFranchise
and Other		Company-OperatedFranchise
and Other
2023$6,590 $54,163 $21,948 $65,838 
20246,683 54,763 21,891 66,211 
20256,883 55,357 21,666 66,072 
20267,028 57,043 22,113 65,314 
20277,072 57,742 22,047 64,901 
Thereafter81,853 603,101 185,694 537,504 
Total minimum payments$116,109 $882,169 $295,359 $865,840 
Less interest
(39,079)(369,006)(78,935)(242,093)
Present value of minimum lease payments (a) (b)$77,030 $513,163 $216,424 $623,747 
_______________

(a)The present value of minimum finance lease payments of $18,316 and $571,877 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.

(b)The present value of minimum operating lease payments of $48,120 and $792,051 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.
Lease, Income
The components of lease income for 2022, 2021 and 2020 are as follows:
Year Ended
202220212020
Sales-type and direct-financing leases:
Selling profit$2,981 $4,244 $1,995 
Interest income (a)31,298 30,648 29,067 
Operating lease income170,633 173,442 174,452 
Variable lease income63,832 63,213 58,196 
Franchise rental income (b)$234,465 $236,655 $232,648 
_______________

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

(b)Includes sublease income of $175,053, $174,327 and $169,921 recognized during 2022, 2021 and 2020, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $38,733, $39,650 and $38,636 for 2022, 2021 and 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 January 1, 2023:
Sales-Type and
Direct Financing Leases		Operating
Leases
Fiscal YearSubleasesOwned PropertiesSubleasesOwned Properties
2023$36,408 $2,512 $107,111 $53,609 
202438,425 2,523 107,832 54,743 
202537,316 2,640 107,923 55,334 
202638,623 2,810 107,843 57,089 
202739,190 2,726 107,967 56,698 
Thereafter428,631 29,035 889,728 593,718 
Total future minimum receipts618,593 42,246 $1,428,404 $871,191 
Unearned interest income(312,508)(22,731)
Net investment in sales-type and direct financing leases (a)$306,085 $19,515 
_______________

(a)The present value of minimum sales-type and direct financing rental receipts of $8,263 and $317,337 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 $611.
Lessor, Operating Lease, Payments to be Received, Maturity
The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of January 1, 2023:
Sales-Type and
Direct Financing Leases		Operating
Leases
Fiscal YearSubleasesOwned PropertiesSubleasesOwned Properties
2023$36,408 $2,512 $107,111 $53,609 
202438,425 2,523 107,832 54,743 
202537,316 2,640 107,923 55,334 
202638,623 2,810 107,843 57,089 
202739,190 2,726 107,967 56,698 
Thereafter428,631 29,035 889,728 593,718 
Total future minimum receipts618,593 42,246 $1,428,404 $871,191 
Unearned interest income(312,508)(22,731)
Net investment in sales-type and direct financing leases (a)$306,085 $19,515 
_______________

(a)The present value of minimum sales-type and direct financing rental receipts of $8,263 and $317,337 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 $611.
Property, Plant, and Equipment, Lessor Asset under Operating Lease
Properties owned by the Company and leased to franchisees and other third parties under operating leases include:
Year End
January 1, 2023January 2, 2022
Land$260,650 $258,513 
Buildings and improvements291,659 288,782 
Restaurant equipment1,701 1,701 
554,010 548,996 
Accumulated depreciation and amortization(187,269)(173,243)
$366,741 $375,753