System Optimization Gains, Net (Tables)

3 Months Ended

Apr. 02, 2023

System Optimization

System optimization gains, net

Summary of Disposition Activity

The following is a summary of the disposition activity recorded as a result of our system optimization initiative:

	Three Months Ended
	April 2, 2023		April 3, 2022
Post-closing adjustments on sales of restaurants (a)	$	—	$	3,447
Gain on sales of other assets, net (b)	5		87
System optimization gains, net	$	5	$	3,534

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(a)Represents the recognition of deferred gains as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees.

(b)During the three months ended April 2, 2023 and April 3, 2022, the Company received net cash proceeds of $287 and $168, respectively, primarily from the sale of surplus and other properties.

The Company also received cash proceeds of $95 during the three months ended April 3, 2022 related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants.