Segment Information (Tables)

6 Months Ended

Jun. 26, 2022

Our segment information is as follows:


	Three Months Ended				Six Months Ended
(In thousands)	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Revenues:
Domestic Company-owned restaurants	$	171,411	$	196,124	$	370,176	$	393,358
North America franchising	34,917		32,475		69,185		65,190
North America commissaries	219,383		186,641		429,062		371,519
International	39,282		46,277		81,989		88,881
All others	57,672		53,491		114,945		107,806
Total revenues	$	522,665	$	515,008	$	1,065,357	$	1,026,754

Intersegment revenues:
North America franchising	$	1,048	$	1,041	$	2,101	$	2,101
North America commissaries	52,754		53,428		111,261		105,498
All others	15,889		18,943		35,268		38,091
Total intersegment revenues	$	69,691	$	73,412	$	148,630	$	145,690

Operating income:
Domestic Company-owned restaurants (1)	$	5,924	$	15,361	$	7,912	$	30,685
North America franchising	32,624		30,518		64,761		60,961
North America commissaries	10,957		9,778		20,292		19,491
International (2)	7,306		8,683		11,761		17,047
All others	2,187		4,894		5,906		11,012
Unallocated corporate expenses (3)	(19,344)		(24,617)		(56,454)		(47,779)
Elimination of intersegment (profits) losses	(750)		20		(839)		82
Total operating income	$	38,904	$	44,637	$	53,339	$	91,499

Property and equipment, net:
Domestic Company-owned restaurants	$	225,755
North America commissaries	151,648
International	15,157
All others	118,496
Unallocated corporate assets	240,431
Accumulated depreciation and amortization	(526,105)
Total property and equipment, net	$	225,382


(1)			Includes a one-time, non-cash charge of $8.4 million associated with the refranchising of the Company’s ownership interest in a 90-restaurant joint venture, recorded as Refranchising and impairment loss for the six months ended June 26, 2022. See Note 10 for additional information.


(2)			Includes $3.5 million of one-time, non-cash reserves for certain accounts receivable and impairments of reacquired franchise rights for the six months ended June 26, 2022. See Notes 2 and 10 for additional information.


(3)			Unallocated corporate expenses include $13.9 million of one-time, non-cash reserves of certain notes receivable, $5.0 million for the Legal Settlement, and $1.5 million of advisory fees and severance costs associated with the transition of certain executives for the six months ended June 26, 2022. Unallocated corporate expense includes $3.3 million and $7.2 million of reorganization costs for the three and six months ended June 27, 2021. See Notes 2 and 9 for additional information.

Schedule of revenue disaggregated by major product line

In the following tables, revenues are disaggregated by major product/service line. The tables also include a reconciliation of the disaggregated revenues by the reportable segment (in thousands):


	Reportable Segments
	Three Months Ended June 26, 2022
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	171,411	$	—	$	—	$	—	$	—	$	171,411
Franchise royalties and fees	—		35,965		—		12,043		—		48,008
Commissary sales	—		—		272,137		19,915		—		292,052
Other revenues	—		—		—		7,324		73,561		80,885
Eliminations	—		(1,048)		(52,754)		—		(15,889)		(69,691)
Total segment revenues	$	171,411	$	34,917	$	219,383	$	39,282	$	57,672	$	522,665
International other revenues (1)	—		—		—		(7,324)		7,324		—
Total revenues	$	171,411	$	34,917	$	219,383	$	31,958	$	64,996	$	522,665

	Reportable Segments
	Three Months Ended June 27, 2021
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	196,124	$	—	$	—	$	—	$	—	$	196,124
Franchise royalties and fees	—		33,516		—		13,156		—		46,672
Commissary sales	—		—		240,069		24,458		—		264,527
Other revenues	—		—		—		8,663		72,434		81,097
Eliminations	—		(1,041)		(53,428)		—		(18,943)		(73,412)
Total segment revenues	$	196,124	$	32,475	$	186,641	$	46,277	$	53,491	$	515,008
International other revenues (1)	—		—		—		(8,663)		8,663		—
Total revenues	$	196,124	$	32,475	$	186,641	$	37,614	$	62,154	$	515,008

	Reportable Segments
	Six Months Ended June 26, 2022
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	370,176	$	—	$	—	$	—	$	—	$	370,176
Franchise royalties and fees	—		71,286		—		25,478		—		96,764
Commissary sales	—		—		540,323		41,097		—		581,420
Other revenues	—		—		—		15,414		150,213		165,627
Eliminations	—		(2,101)		(111,261)		—		(35,268)		(148,630)
Total segment revenues	$	370,176	$	69,185	$	429,062	$	81,989	$	114,945	$	1,065,357
International other revenues (1)	—		—		—		(15,414)		15,414		—
Total revenues	$	370,176	$	69,185	$	429,062	$	66,575	$	130,359	$	1,065,357



	Reportable Segments
	Six Months Ended June 27, 2021
Major Products/Services Lines	Domestic Company-owned restaurants		North America franchising		North America commissaries		International		All others		Total
Company-owned restaurant sales	$	393,358	$	—	$	—	$	—	$	—	$	393,358
Franchise royalties and fees	—		67,291		—		25,364		—		92,655
Commissary sales	—		—		477,017		46,857		—		523,874
Other revenues	—		—		—		16,660		145,897		162,557
Eliminations	—		(2,101)		(105,498)		—		(38,091)		(145,690)
Total segment revenues	$	393,358	$	65,190	$	371,519	$	88,881	$	107,806	$	1,026,754
International other revenues (1)	—		—		—		(16,660)		16,660		—
Total revenues	$	393,358	$	65,190	$	371,519	$	72,221	$	124,466	$	1,026,754


(1)			Other revenues as reported in the Condensed Consolidated Statements of Operations include $7.3 million and $15.4 million of revenue for the three and six months ended June 26, 2022, respectively, and $8.7 million and $16.7 million for the three and six months ended June 27, 2021, respectively, that are part of the international reporting segment. These amounts include marketing fund contributions and sublease rental income from international franchisees in the United Kingdom that provide no significant contribution to operating income but must be reported on a gross basis under accounting requirements. The related expenses for these Other revenues are reported in Other expenses in the Condensed Consolidated Statements of Operations.