Nature of Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 27, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Number of Restaurants

The following table summarizes the number of restaurants as of the end of each fiscal year:

	2020	2019	2018
Company-operated	144	137	137
Franchise	2,097	2,106	2,100
Total system	2,241	2,243	2,237

The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year (dollars in thousands):

	2020		2019		2018
Restaurants sold to franchisees	—		—		135
Proceeds from the sale of company-operated restaurants:
Cash (1)	$	3,395	$	1,280	$	26,486
Notes receivable	—		—		70,461
	$	3,395	$	1,280	$	96,947
Net assets sold (primarily property and equipment)	$	—	$	—	$	(21,329)
Goodwill related to the sale of company-operated restaurants	—		(2)		(4,663)
Other (2)	(134)		88		(24,791)
Gains on the sale of company-operated restaurants	$	3,261	$	1,366	$	46,164

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(1)Amounts in 2020, 2019, and 2018 include additional proceeds of $3.4 million, $1.3 million, and $1.4 million, respectively, related to the extension of the underlying franchise and lease agreements from the sale of restaurants in prior years.

(2)Amounts in 2018 primarily represent $9.2 million of costs related to franchise remodel incentives, $8.7 million reduction of gains related to the modification of certain 2017 refranchising transactions, $2.3 million of maintenance and repair expenses and $3.7 million of other miscellaneous non-capital charges.

Summary of New Accounting Standard Impact

The effects of the changes made to the Company's consolidated balance sheet as of September 29, 2019 for the adoption of the new lease guidance were as follows (in thousands):

	Balance at September 29, 2019		Adjustments due to ASC 842 adoption		Balance at September 30, 2019
Assets
Other assets:
Operating lease ROU assets	$	—	$	880,564	$	880,564
Intangible assets, net	$	425	$	(386)	$	39
Deferred tax assets	$	85,564	$	1,006	$	86,570
Liabilities and Stockholders’ Deficit
Current liabilities:
Current operating lease liabilities	$	—	$	159,821	$	159,821
Accrued liabilities	$	120,083	$	(4,702)	$	115,381
Long-term liabilities:
Long-term operating lease liabilities, net of current portion	$	—	$	770,818	$	770,818
Other long-term liabilities	$	263,770	$	(41,883)	$	221,887
Stockholders’ deficit:
Retained earnings	$	1,577,034	$	(2,870)	$	1,574,164