Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes is set forth below:

	Year Ended
	2023		2022		2021
Domestic	$	264,423	$	231,862	$	228,756
Foreign (a)	14,995		11,643		11,822
	$	279,418	$	243,505	$	240,578

_______________

(a)Excludes foreign income of domestic subsidiaries.

Schedule of Components of Income Tax (Expense) Benefit

The (provision for) benefit from income taxes is set forth below:

	Year Ended
	2023		2022		2021
Current:
U.S. federal	$	(50,435)	$	(43,141)	$	(38,416)
State	(13,730)		(9,152)		(7,039)
Foreign	(11,620)		(9,537)		(8,512)
Current tax provision	(75,785)		(61,830)		(53,967)
Deferred:
U.S. federal	2,163		(3,868)		(52)
State	564		(2,629)		15,993
Foreign	(1,920)		2,192		(2,160)
Deferred tax benefit (provision)	807		(4,305)		13,781
Income tax provision	$	(74,978)	$	(66,135)	$	(40,186)

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets (liabilities) are set forth below:

	Year End
	December 31, 2023		January 1, 2023
Deferred tax assets:
Operating and finance lease liabilities	$	339,655	$	355,653
Net operating loss and credit carryforwards	58,170		58,030
Deferred revenue	23,848		23,617
Unfavorable leases	17,104		19,085
Accrued compensation and related benefits	15,786		14,577
Accrued expenses and reserves	6,802		7,012
Other	11,243		8,275
Valuation allowances	(39,346)		(35,680)
Total deferred tax assets	433,262		450,569
Deferred tax liabilities:
Operating and finance lease assets	(310,011)		(326,646)
Intangible assets	(290,782)		(285,688)
Fixed assets	(62,673)		(66,830)
Other	(40,149)		(41,826)
Total deferred tax liabilities	(703,615)		(720,990)
	$	(270,353)	$	(270,421)

Summary of Net Operating Loss and Tax Credit Carryforwards

The amounts and expiration dates of net operating loss and tax credit carryforwards are as follows:

	Amount		Expiration
Tax credit carryforwards:
U.S. federal foreign tax credits	$	17,111	2027-2033
Foreign tax credits of non-U.S. subsidiaries	3,973		Indefinite
Total	$	21,084
Net operating loss carryforwards (pre-tax):
State and local net operating loss carryforwards	$	744,363	2024-2035
State and local net operating loss carryforwards	219,652		Indefinite
Foreign net operating loss carryforwards	11,609		Indefinite
Total	$	975,624

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of income tax computed at the U.S. federal statutory rate of 21% to reported income tax is set forth below:

	Year Ended
	2023		2022		2021
Income tax provision at the U.S. federal statutory rate	$	(58,678)	$	(51,136)	$	(50,521)
State income tax provision, net of U.S. federal income tax effect	(11,400)		(11,616)		(6,256)
Prior years’ tax matters	(2,250)		2,290		1,820
Excess federal tax benefits from share-based compensation	845		402		7,160
Foreign and U.S. tax effects of foreign operations	1,799		(3,744)		(5)
Valuation allowances (a)	(3,533)		2,127		11,807
Non-deductible goodwill (b)	—		—		(947)
Tax credits	1,050		1,385		1,028
Non-deductible executive compensation	(2,863)		(3,154)		(3,810)
Unrepatriated earnings	(387)		(294)		(282)
Non-deductible expenses and other	439		(2,395)		(180)
	$	(74,978)	$	(66,135)	$	(40,186)

_______________

(a)2021 primarily relates to a $12,606 benefit resulting from a change in state tax law.

(b)Related to the sale of the New York Company-operated restaurants (including Manhattan). See Note 4 for further information.

Schedule of Unrecognized Tax Benefits Roll Forward

As of December 31, 2023, the Company had unrecognized tax benefits of $16,719, which, if resolved favorably, would reduce income tax expense by $13,208. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:

	Year Ended
	2023		2022		2021
Beginning balance	$	17,404	$	18,849	$	20,973
Additions:
Tax positions of current year	836		178		157
Reductions:
Tax positions of prior years	(690)		(662)		(2,015)
Settlements	(249)		(8)		(46)
Lapse of statute of limitations	(582)		(953)		(220)
Ending balance	$	16,719	$	17,404	$	18,849