Leases

4 Months Ended

Jan. 17, 2021

Leases [Abstract]

Leases

LEASES

As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees subsequent to refranchising transactions. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying condensed consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.”

The following table presents rental income (in thousands):

	Sixteen Weeks Ended
	January 17, 2021		January 19, 2020
Operating lease income - franchise	$	72,242	$	72,663
Variable lease income - franchise	31,507		23,421
Franchise rental revenues	$	103,749	$	96,084
Operating lease income - closed restaurants and other (1)	$	1,865	$	2,057

____________________________

(1)Primarily relates to closed restaurant properties included in “Impairment and other gains, net” in our condensed consolidated statements of earnings.