Revenues (Tables)
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6 Months Ended |
Jun. 28, 2023 |
Revenue from Contract with Customer [Abstract] |
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Schedule of Disaggregation of Revenue |
The following table disaggregates our revenue by sales channel and type of good or service: | | | | | | | | | | | | | | | | | | | | | | | | | Quarter Ended | | Two Quarters Ended | | June 28, 2023 | | June 29, 2022 | | June 28, 2023 | | June 29, 2022 | | (In thousands) | Company restaurant sales | $ | 54,881 | | | $ | 49,167 | | | $ | 108,333 | | | $ | 93,143 | | Franchise and license revenue: | | | | | | | | Royalties | 30,376 | | | 28,759 | | | 60,403 | | | 55,284 | | Advertising revenue | 19,853 | | | 19,486 | | | 39,521 | | | 37,692 | | Initial and other fees | 2,616 | | | 7,779 | | | 7,606 | | | 12,286 | | Occupancy revenue | 9,189 | | | 9,826 | | | 18,523 | | | 19,719 | | Franchise and license revenue | 62,034 | | | 65,850 | | | 126,053 | | | 124,981 | | Total operating revenue | $ | 116,915 | | | $ | 115,017 | | | $ | 234,386 | | | $ | 218,124 | |
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Schedule of Components of Lease Income |
Franchise occupancy revenue consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | Quarter Ended | | Two Quarters Ended | | June 28, 2023 | | June 29, 2022 | | June 28, 2023 | | June 29, 2022 | | (In thousands) | Operating lease revenue | $ | 6,683 | | | $ | 7,253 | | | $ | 13,554 | | | $ | 14,671 | | Variable lease revenue | 2,506 | | | 2,573 | | | 4,969 | | | 5,048 | | Total occupancy revenue | $ | 9,189 | | | $ | 9,826 | | | $ | 18,523 | | | $ | 19,719 | |
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Schedule of Components of the Change in Contract Asset and Contract Liability |
The components of the change in deferred franchise revenue are as follows: | | | | | | | (In thousands) | Balance, December 28, 2022 | $ | 20,751 | | Fees received from franchisees | 990 | | | | Revenue recognized (1) | (1,608) | | Balance, June 28, 2023 | 20,133 | | Less current portion included in other current liabilities | 2,204 | | Deferred franchise revenue included in other noncurrent liabilities | $ | 17,929 | | (1) Of this amount $1.4 million was included in the deferred franchise revenue balance as of December 28, 2022. The components of the change in contract assets are as follows: | | | | | | | (In thousands) | Balance, December 28, 2022 | $ | 5,361 | | Franchisee deferred costs | 1,103 | | Contract asset amortization | (740) | | Balance, June 28, 2023 | 5,724 | | Less current portion included in other current assets | 915 | | Contract assets included in other noncurrent assets | $ | 4,809 | |
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