(State or other jurisdiction of | (I.R.S. Employer Identification | |||||||
incorporation or organization) | number) |
Title of each class: | Trading Symbol | Name of each exchange on which registered: | ||||||||||||
Accelerated filer o | ||||||||
Non-accelerated filer o | Smaller reporting company | |||||||
Emerging growth company |
Page No. | ||||||||
(In thousands, except per share amounts) | September 25, 2022 | December 26, 2021 | ||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable, net | ||||||||||||||
Notes receivable, current portion | ||||||||||||||
Income tax receivable | ||||||||||||||
Inventories | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property and equipment, net | ||||||||||||||
Finance lease right-of-use assets, net | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Notes receivable, less current portion, net | ||||||||||||||
Goodwill | ||||||||||||||
Deferred income taxes | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities, Redeemable noncontrolling interests and Stockholders’ deficit | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Income and other taxes payable | ||||||||||||||
Accrued expenses and other current liabilities | ||||||||||||||
Current deferred revenue | ||||||||||||||
Current finance lease liabilities | ||||||||||||||
Current operating lease liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Deferred revenue | ||||||||||||||
Long-term finance lease liabilities | ||||||||||||||
Long-term operating lease liabilities | ||||||||||||||
Long-term debt, less current portion, net | ||||||||||||||
Deferred income taxes | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Redeemable noncontrolling interests | ||||||||||||||
Stockholders’ deficit: | ||||||||||||||
Common stock ($ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Treasury stock ( | ( | ( | ||||||||||||
Total stockholders’ deficit | ( | ( | ||||||||||||
Noncontrolling interests in subsidiaries | ||||||||||||||
Total Stockholders’ deficit | ( | ( | ||||||||||||
Total liabilities, Redeemable noncontrolling interests and Stockholders’ deficit | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(In thousands, except per share amounts) | September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Domestic Company-owned restaurant sales | $ | $ | $ | $ | ||||||||||||||||||||||
North America franchise royalties and fees | ||||||||||||||||||||||||||
North America commissary revenues | ||||||||||||||||||||||||||
International revenues | ||||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization shown separately below): | ||||||||||||||||||||||||||
Domestic Company-owned restaurant expenses | ||||||||||||||||||||||||||
North America commissary expenses | ||||||||||||||||||||||||||
International expenses | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||
General and administrative expenses | ||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Total costs and expenses | ||||||||||||||||||||||||||
Refranchising and impairment loss | ( | ( | ||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Net interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||
Net income before attribution to noncontrolling interests | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
Net income attributable to the Company | $ | $ | $ | $ | ||||||||||||||||||||||
Calculation of net income (loss) for earnings per share: | ||||||||||||||||||||||||||
Net income attributable to the Company | $ | $ | $ | $ | ||||||||||||||||||||||
Dividends on redemption of Series B Convertible Preferred Stock | ( | |||||||||||||||||||||||||
Dividends paid to participating securities | ( | ( | ( | ( | ||||||||||||||||||||||
Net income attributable to participating securities | ( | ( | ||||||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | $ | $ | $ | ( | |||||||||||||||||||||
Basic earnings (loss) per common share | $ | $ | $ | $ | ( | |||||||||||||||||||||
Diluted earnings (loss) per common share | $ | $ | $ | $ | ( | |||||||||||||||||||||
Basic weighted average common shares outstanding | ||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | ||||||||||||||||||||||||||
Dividends declared per common share | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(In thousands) | September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||||
Net income before attribution to noncontrolling interests | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive (loss) income, before tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | |||||||||||||||||||||||
Interest rate swaps (1) | ||||||||||||||||||||||||||
Other comprehensive (loss) income, before tax | ( | ( | ||||||||||||||||||||||||
Income tax effect: | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | |||||||||||||||||||||||||
Interest rate swaps (2) | ( | ( | ( | ( | ||||||||||||||||||||||
Income tax effect | ( | ( | ||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ||||||||||||||||||||||||
Comprehensive income before attribution to noncontrolling interests | ||||||||||||||||||||||||||
Less: comprehensive (income), redeemable noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
Less: comprehensive (income), nonredeemable noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||||||||
Comprehensive income attributable to the Company | $ | $ | $ | $ |
(1) | |||||
(2) |
Papa John’s International, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Common Stock Shares Outstanding | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interests in Subsidiaries | Total Stockholders’ Deficit | ||||||||||||||||||||||||||||||||||||||||||
For the three months ended September 25, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 26, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||
Net income (1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss), net of tax | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Company common stock | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Tax payments for equity award issuances | ( | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Other | — | ( | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 25, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 25, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 26, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||
Net income (1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss), net of tax | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 1 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Company common stock | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Tax payments for equity award issuances | ( | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Other | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 25, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Papa John’s International, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Common Stock Shares Outstanding | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interests in Subsidiaries | Total Stockholders’ Deficit | ||||||||||||||||||||||||||||||||||||||||||
For the three months ended September 26, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 27, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||
Net income (1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Company common stock | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Tax payments for equity award issuances | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Other | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 26, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 26, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 27, 2020 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||
Net income (1) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase and conversion of Series B Convertible Preferred Stock | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on common stock | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Cash dividends on preferred stock | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Company common stock | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Tax payments for equity award issuances | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 26, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Nine Months Ended | ||||||||||||||
(In thousands) | September 25, 2022 | September 26, 2021 | ||||||||||||
Operating activities | ||||||||||||||
Net income before attribution to noncontrolling interests | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Provision (benefit) for allowance for credit losses on accounts and notes receivable | ( | |||||||||||||
Depreciation and amortization | ||||||||||||||
Refranchising and impairment loss | ||||||||||||||
Deferred income taxes | ( | |||||||||||||
Stock-based compensation expense | ||||||||||||||
Other | ( | |||||||||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||||
Accounts receivable | ( | |||||||||||||
Income tax receivable | ( | |||||||||||||
Inventories | ( | ( | ||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Other assets and liabilities | ( | ( | ||||||||||||
Accounts payable | ||||||||||||||
Income and other taxes payable | ( | |||||||||||||
Accrued expenses and other current liabilities | ( | |||||||||||||
Deferred revenue | ( | ( | ||||||||||||
Net cash provided by operating activities | ||||||||||||||
Investing activities | ||||||||||||||
Purchases of property and equipment | ( | ( | ||||||||||||
Notes issued | ( | ( | ||||||||||||
Repayments of notes issued | ||||||||||||||
Acquisitions, net of cash acquired | ( | ( | ||||||||||||
Proceeds from refranchising, net of cash transferred | ||||||||||||||
Other | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Financing activities | ||||||||||||||
Proceeds from issuance of senior notes | ||||||||||||||
Net proceeds of revolving credit facilities | ||||||||||||||
Debt issuance costs | ( | |||||||||||||
Proceeds from exercise of stock options | ||||||||||||||
Repurchase of Series B Convertible Preferred Stock | ( | |||||||||||||
Acquisition of Company common stock | ( | ( | ||||||||||||
Dividends paid to common stockholders | ( | ( | ||||||||||||
Dividends paid to preferred stockholders | ( | |||||||||||||
Tax payments for equity award issuances | ( | ( | ||||||||||||
Distributions to noncontrolling interests | ( | ( | ||||||||||||
Repayments of term loan | ( | |||||||||||||
Other | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | |||||||||||||
Change in cash and cash equivalents | ( | ( | ||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||
Papa John’s International, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Noncontrolling interests | |||||||||||||||||||||||
Total net income | $ | $ | $ | $ |
Type of Joint Venture Arrangement | Location within the Balance Sheets | Recorded Value | ||||||||||||
Joint ventures with no redemption feature | Permanent equity | Carrying value | ||||||||||||
Joint ventures with option to require the Company to purchase the noncontrolling interest - not currently redeemable or redemption not probable | Temporary equity | Carrying value |
Fair Value Measurements | ||||||||||||||||||||||||||
(in thousands) | Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
September 25, 2022 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Cash surrender value of life insurance policies(a) | $ | $ | $ | $ | ||||||||||||||||||||||
Interest rate swaps(b) | $ | $ | $ | $ | ||||||||||||||||||||||
December 26, 2021 | ||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Cash surrender value of life insurance policies(a) | $ | $ | $ | $ | ||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Interest rate swaps(b) | $ | $ | $ | $ |
September 25, 2022 | December 26, 2021 | |||||||||||||||||||||||||
(in thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||
$ | $ | $ | $ |
(in thousands) | Accounts Receivable | Notes Receivable | ||||||||||||
Balance at December 26, 2021 | $ | $ | ||||||||||||
Current period provision for expected credit losses (a) | ||||||||||||||
Write-offs charged against the allowance | ( | |||||||||||||
Recoveries collected | ( | |||||||||||||
Balance at September 25, 2022 | $ | $ |
(a) | The Company recorded $ |
Nine Months Ended | ||||||||||||||
(in thousands) | September 25, 2022 | September 26, 2021 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from finance leases | $ | $ | ||||||||||||
Financing cash flows from finance leases | ||||||||||||||
Operating cash flows from operating leases (a) | ||||||||||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | ||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities (b) | ||||||||||||||
Cash received from sublease income | ||||||||||||||
(a)Included within the change in Other assets and liabilities within the Condensed Consolidated Statements of Cash Flows offset by non-cash operating lease right-of-use asset amortization and lease liability accretion. | ||||||||||||||
(b)Includes right-of-use assets of approximately $ |
September 25, 2022 | December 26, 2021 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable, net | ||||||||||||||
Income tax receivable | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Deferred income taxes | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Income and other taxes payable | ||||||||||||||
Accrued expenses and other current liabilities | ||||||||||||||
Current deferred revenue | ||||||||||||||
Total current liabilities | ||||||||||||||
Deferred revenue | ||||||||||||||
Total liabilities | $ | $ |
Contract Liabilities | ||||||||||||||||||||
September 25, 2022 | December 26, 2021 | Change | ||||||||||||||||||
Franchise fees and unredeemed gift card liabilities | $ | $ | $ | |||||||||||||||||
Customer loyalty program obligations | ( | |||||||||||||||||||
Total contract liabilities | $ | $ | $ |
Performance Obligations by Period | ||||||||||||||||||||||||||||||||||||||||||||
Less than 1 Year | 1-2 Years | 2-3 Years | 3-4 Years | 4-5 Years | Thereafter | Total | ||||||||||||||||||||||||||||||||||||||
Franchise fees | $ | $ | $ | $ | $ | $ | $ |
(in thousands, except average price per share) | Total Number of Shares Purchased | Average Price Paid per Share | Aggregate Cost of Shares Purchased | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
September 25, 2022 | $ | $ | $ | |||||||||||||||||||||||
September 26, 2021 | $ | $ | $ | |||||||||||||||||||||||
(in thousands, except average price per share) | Total Number of Shares Purchased | Average Price Paid per Share | Aggregate Cost of Shares Purchased | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
September 25, 2022 | $ | $ | $ | |||||||||||||||||||||||
September 26, 2021 | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||
Basic earnings (loss) per common share (in thousands, except per share data) | |||||||||||||||||||||||
Net income attributable to the Company | $ | $ | $ | $ | |||||||||||||||||||
Dividends on redemption of Series B Convertible Preferred Stock | ( | ||||||||||||||||||||||
Dividends paid to participating securities | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to participating securities | ( | ( | |||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | $ | $ | $ | ( | ||||||||||||||||||
Basic weighted average common shares outstanding | |||||||||||||||||||||||
Basic earnings (loss) per common share | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted earnings (loss) per common share (in thousands, except per share data) | |||||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | $ | $ | $ | ( | ||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Dilutive effect of outstanding equity awards(a) | |||||||||||||||||||||||
Diluted weighted average common shares outstanding | |||||||||||||||||||||||
Diluted earnings (loss) per common share | $ | $ | $ | $ | ( |
(a) | Excludes |
September 25, 2022 | December 26, 2021 | ||||||||||
Senior notes | $ | $ | |||||||||
Revolving facilities | |||||||||||
Outstanding debt | $ | $ | |||||||||
Unamortized debt issuance costs | ( | ( | |||||||||
Total long-term debt, net | $ | $ |
Effective Dates | Floating Rate Debt | Fixed Rates | ||||||||||||
April 30, 2018 through April 30, 2023 | $ | |||||||||||||
April 30, 2018 through April 30, 2023 | $ | |||||||||||||
April 30, 2018 through April 30, 2023 | $ |
Interest Rate Swap Derivatives | ||||||||||||||
Balance Sheet Location | Fair Value September 25, 2022 | Fair Value December 26, 2021 | ||||||||||||
Other current assets | $ | $ | ||||||||||||
Other current and long-term liabilities | $ | $ |
Derivatives - Cash Flow Hedging Relationships | Amount of Gain or (Loss) Recognized in AOCL on Derivative | Location of (Loss) or Gain Reclassified from AOCL into Income | Amount of (Loss) or Gain Reclassified from AOCL into Income | Total Net Interest Expense on Condensed Consolidated Statements of Operations | ||||||||||||||||||||||
Interest rate swaps for the three months ended: | ||||||||||||||||||||||||||
September 25, 2022 | $ | Interest expense | ( | $ | ( | |||||||||||||||||||||
September 26, 2021 | $ | Interest expense | ( | $ | ( | |||||||||||||||||||||
Interest rate swaps for the nine months ended: | ||||||||||||||||||||||||||
September 25, 2022 | $ | Interest Expense | ( | $ | ( | |||||||||||||||||||||
September 26, 2021 | $ | Interest Expense | ( | $ | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands) | September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Domestic Company-owned restaurants | $ | $ | $ | $ | |||||||||||||||||||
North America franchising | |||||||||||||||||||||||
North America commissaries | |||||||||||||||||||||||
International | |||||||||||||||||||||||
All others | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Intersegment revenues: | |||||||||||||||||||||||
North America franchising | $ | $ | $ | $ | |||||||||||||||||||
North America commissaries | |||||||||||||||||||||||
All others | |||||||||||||||||||||||
Total intersegment revenues | $ | $ | $ | $ | |||||||||||||||||||
Operating income: | |||||||||||||||||||||||
Domestic Company-owned restaurants(a) | $ | $ | $ | $ | |||||||||||||||||||
North America franchising | |||||||||||||||||||||||
North America commissaries | |||||||||||||||||||||||
International(b) | |||||||||||||||||||||||
All others | |||||||||||||||||||||||
Unallocated corporate expenses(c) | ( | ( | ( | ( | |||||||||||||||||||
Elimination of intersegment (profits) losses | ( | ( | ( | ||||||||||||||||||||
Total operating income | $ | $ | $ | $ | |||||||||||||||||||
Property and equipment, net: | |||||||||||||||||||||||
Domestic Company-owned restaurants | $ | ||||||||||||||||||||||
North America commissaries | |||||||||||||||||||||||
International | |||||||||||||||||||||||
All others | |||||||||||||||||||||||
Unallocated corporate assets | |||||||||||||||||||||||
Accumulated depreciation and amortization | ( | ||||||||||||||||||||||
Total property and equipment, net | $ |
(a) | Includes a one-time, non-cash charge of $ |
(b) | The three months ended September 25, 2022 includes a charge of $ |
(c) | Unallocated corporate expenses includes $ |
Reportable Segments | |||||||||||||||||||||||||||||||||||
Three Months Ended September 25, 2022 | |||||||||||||||||||||||||||||||||||
Major Products/Services Lines | Domestic Company-owned restaurants | North America franchising | North America commissaries | International | All others | Total | |||||||||||||||||||||||||||||
Company-owned restaurant sales | $ | $ | — | $ | — | $ | — | $ | — | $ | |||||||||||||||||||||||||
Franchise royalties and fees | — | — | — | ||||||||||||||||||||||||||||||||
Commissary sales | — | — | — | ||||||||||||||||||||||||||||||||
Other revenues | — | — | — | ||||||||||||||||||||||||||||||||
Eliminations | — | ( | ( | — | ( | ( | |||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
International other revenues(a) | — | — | — | ( | — | ||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Reportable Segments | |||||||||||||||||||||||||||||||||||
Three Months Ended September 26, 2021 | |||||||||||||||||||||||||||||||||||
Major Products/Services Lines | Domestic Company-owned restaurants | North America franchising | North America commissaries | International | All others | Total | |||||||||||||||||||||||||||||
Company-owned restaurant sales | $ | $ | — | $ | — | $ | — | $ | — | $ | |||||||||||||||||||||||||
Franchise royalties and fees | — | — | — | ||||||||||||||||||||||||||||||||
Commissary sales | — | — | — | ||||||||||||||||||||||||||||||||
Other revenues | — | — | — | ||||||||||||||||||||||||||||||||
Eliminations | — | ( | ( | — | ( | ( | |||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
International other revenues(a) | — | — | — | ( | — | ||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Reportable Segments | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 25, 2022 | |||||||||||||||||||||||||||||||||||
Major Products/Services Lines | Domestic Company-owned restaurants | North America franchising | North America commissaries | International | All others | Total | |||||||||||||||||||||||||||||
Company-owned restaurant sales | $ | $ | — | $ | — | $ | — | $ | — | $ | |||||||||||||||||||||||||
Franchise royalties and fees | — | — | — | ||||||||||||||||||||||||||||||||
Commissary sales | — | — | — | ||||||||||||||||||||||||||||||||
Other revenues | — | — | — | ||||||||||||||||||||||||||||||||
Eliminations | — | ( | ( | — | ( | ( | |||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
International other revenues(a) | — | — | — | ( | — | ||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Reportable Segments | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 26, 2021 | |||||||||||||||||||||||||||||||||||
Major Products/Services Lines | Domestic Company-owned restaurants | North America franchising | North America commissaries | International | All others | Total | |||||||||||||||||||||||||||||
Company-owned restaurant sales | $ | $ | — | $ | — | $ | — | $ | — | $ | |||||||||||||||||||||||||
Franchise royalties and fees | — | — | — | ||||||||||||||||||||||||||||||||
Commissary sales | — | — | — | ||||||||||||||||||||||||||||||||
Other revenues | — | — | — | ||||||||||||||||||||||||||||||||
Eliminations | — | ( | ( | — | ( | ( | |||||||||||||||||||||||||||||
Total segment revenues | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
International other revenues(a) | — | — | — | ( | — | ||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | $ |
(a) | Other revenues as reported in the Condensed Consolidated Statements of Operations include $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||
Comparable sales (decline) growth: | |||||||||||||||||||||||
Domestic Company-owned restaurants | (2.2)% | 7.4% | (1.6)% | 11.6% | |||||||||||||||||||
North America franchised restaurants | (0.5)% | 6.8% | 1.2% | 12.3% | |||||||||||||||||||
North America restaurants | (0.8)% | 6.9% | 0.6% | 12.1% | |||||||||||||||||||
International restaurants | (10.1)% | 8.3% | (5.8)% | 17.1% | |||||||||||||||||||
Total comparable sales (decline) growth | (3.4)% | 7.3% | (1.1)% | 13.4% | |||||||||||||||||||
System-wide restaurant sales growth (decline): | |||||||||||||||||||||||
(excluding the impact of foreign currency) | |||||||||||||||||||||||
Domestic Company-owned restaurants | 0.5% | 7.3% | 0.8% | 11.1% | |||||||||||||||||||
North America franchised restaurants | 0.9% | 8.0% | 2.5% | 13.1% | |||||||||||||||||||
North America restaurants | 0.8% | 7.9% | 2.2% | 12.7% | |||||||||||||||||||
International restaurants | (0.4)% | 21.4% | 5.3% | 28.2% | |||||||||||||||||||
Total global system-wide restaurant sales growth | 0.5% | 11.2% | 2.9% | 16.2% |
Restaurant Progression | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||
North America Company-owned: | |||||||||||||||||||||||
Beginning of period | 519 | 589 | 600 | 588 | |||||||||||||||||||
Opened | 1 | 2 | 9 | 2 | |||||||||||||||||||
Acquired | 1 | — | 2 | 1 | |||||||||||||||||||
Refranchised | — | — | (90) | — | |||||||||||||||||||
End of period | 521 | 591 | 521 | 591 | |||||||||||||||||||
North America franchised: | |||||||||||||||||||||||
Beginning of period | 2,837 | 2,720 | 2,739 | 2,701 | |||||||||||||||||||
Opened | 17 | 21 | 49 | 57 | |||||||||||||||||||
Closed | (16) | (9) | (39) | (25) | |||||||||||||||||||
Refranchised | — | — | 90 | — | |||||||||||||||||||
Sold | (1) | — | (2) | (1) | |||||||||||||||||||
End of period | 2,837 | 2,732 | 2,837 | 2,732 | |||||||||||||||||||
International franchised: | |||||||||||||||||||||||
Beginning of period | 2,215 | 2,214 | 2,311 | 2,111 | |||||||||||||||||||
Opened | 48 | 71 | 175 | 210 | |||||||||||||||||||
Closed(a) | (32) | (39) | (67) | (75) | |||||||||||||||||||
Suspended(b) | — | — | (188) | — | |||||||||||||||||||
End of period | 2,231 | 2,246 | 2,231 | 2,246 | |||||||||||||||||||
Total restaurants – end of period | 5,589 | 5,569 | 5,589 | 5,569 | |||||||||||||||||||
Trailing four quarters net store growth(c) | 208 | 209 |
Three Months Ended | ||||||||||||||||||||||||||||||||
September 25, 2022 | September 26, 2021 | |||||||||||||||||||||||||||||||
($ in thousands) | % of Related Revenues | % of Related Revenues | Increase (Decrease) | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Domestic Company-owned restaurant sales | $ | 166,050 | $ | 191,584 | (13.3) | % | ||||||||||||||||||||||||||
North America franchise royalties and fees | 33,712 | 31,933 | 5.6 | % | ||||||||||||||||||||||||||||
North America commissary revenues | 216,115 | 189,224 | 14.2 | % | ||||||||||||||||||||||||||||
International revenues | 30,735 | 38,408 | (20.0) | % | ||||||||||||||||||||||||||||
Other revenues | 63,900 | 61,633 | 3.7 | % | ||||||||||||||||||||||||||||
Total revenues | 510,512 | 512,782 | (0.4) | % | ||||||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization shown separately below): | ||||||||||||||||||||||||||||||||
Domestic Company-owned restaurant expenses | 138,299 | 83.3% | 155,477 | 81.2% | 2.1% | |||||||||||||||||||||||||||
North America commissary expenses | 203,129 | 94.0% | 175,399 | 92.7% | 1.3% | |||||||||||||||||||||||||||
International expenses | 18,196 | 59.2% | 21,743 | 56.6% | 2.6% | |||||||||||||||||||||||||||
Other expenses | 59,249 | 92.7% | 56,039 | 90.9% | 1.8% | |||||||||||||||||||||||||||
General and administrative expenses | 57,935 | 11.3% | 54,070 | 10.5% | 0.8% | |||||||||||||||||||||||||||
Depreciation and amortization | 13,338 | 2.6% | 11,477 | 2.2% | 0.4% | |||||||||||||||||||||||||||
Total costs and expenses | 490,146 | 96.0% | 474,205 | 92.5% | 3.5% | |||||||||||||||||||||||||||
Refranchising and impairment loss | (905) | (0.2) | % | — | — | % | (0.2) | % | ||||||||||||||||||||||||
Operating income | 19,461 | 3.8% | 38,577 | 7.5% | (3.7)% | |||||||||||||||||||||||||||
Net interest expense | (7,623) | (1.5) | % | (3,979) | (0.8) | % | (0.7) | % | ||||||||||||||||||||||||
Income before income taxes | $ | 11,838 | 2.3% | $ | 34,598 | 6.7% | (4.4)% |
Nine months ended | ||||||||||||||||||||||||||||||||
September 25, 2022 | September 26, 2021 | |||||||||||||||||||||||||||||||
($ in thousands) | % of Related Revenues | % of Related Revenues | Increase (Decrease) | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Domestic Company-owned restaurant sales | $ | 536,226 | $ | 584,942 | (8.3) | % | ||||||||||||||||||||||||||
North America franchise royalties and fees | 102,897 | 97,123 | 5.9 | % | ||||||||||||||||||||||||||||
North America commissary revenues | 645,177 | 560,743 | 15.1 | % | ||||||||||||||||||||||||||||
International revenues | 97,310 | 110,629 | (12.0) | % | ||||||||||||||||||||||||||||
Other revenues | 194,259 | 186,099 | 4.4 | % | ||||||||||||||||||||||||||||
Total revenues | 1,575,869 | 1,539,536 | 2.4 | % | ||||||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||
Operating costs (excluding depreciation and amortization shown separately below): | ||||||||||||||||||||||||||||||||
Domestic Company-owned restaurant expenses | 441,986 | 82.4% | 465,658 | 79.6% | 2.8% | |||||||||||||||||||||||||||
North America commissary expenses | 604,689 | 93.7% | 518,310 | 92.4% | 1.3% | |||||||||||||||||||||||||||
International expenses | 57,346 | 58.9% | 62,791 | 56.8% | 2.1% | |||||||||||||||||||||||||||
Other expenses | 180,452 | 92.9% | 168,092 | 90.3% | 2.6% | |||||||||||||||||||||||||||
General and administrative expenses | 168,519 | 10.7% | 157,779 | 10.2% | 0.5% | |||||||||||||||||||||||||||
Depreciation and amortization | 38,012 | 2.4% | 36,830 | 2.4% | —% | |||||||||||||||||||||||||||
Total costs and expenses | 1,491,004 | 94.6% | 1,409,460 | 91.6% | 3.0% | |||||||||||||||||||||||||||
Refranchising and impairment loss | (12,065) | (0.8) | % | — | — | % | (0.8) | % | ||||||||||||||||||||||||
Operating income | 72,800 | 4.6% | 130,076 | 8.4% | (3.8)% | |||||||||||||||||||||||||||
Net interest expense | (17,967) | (1.1) | % | (11,275) | (0.7) | % | (0.4) | % | ||||||||||||||||||||||||
Income before income taxes | $ | 54,833 | 3.5% | $ | 118,801 | 7.7% | (4.2)% |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||
Administrative expenses(a) | $ | 44,391 | $ | 51,398 | $ | 133,370 | $ | 148,533 | |||||||||||||||
Special items(b, c) | 13,227 | 2,153 | 34,370 | 9,364 | |||||||||||||||||||
Other general expenses | 317 | 519 | 779 | (118) | |||||||||||||||||||
General and administrative expenses | $ | 57,935 | $ | 54,070 | $ | 168,519 | $ | 157,779 |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Reported Sep. 25, 2022 | Special items in 2022 (a) | Adjusted Sep. 25, 2022 | Reported Sep. 26, 2021 | Special items in 2021 (b) | Adjusted Sep. 26, 2021 | Adjusted Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Domestic Company-owned restaurants | $ | 3,667 | $ | — | $ | 3,667 | $ | 9,480 | $ | — | $ | 9,480 | $ | (5,813) | ||||||||||||||||||||||||||||||
North America franchising | 31,464 | — | 31,464 | 29,830 | — | 29,830 | 1,634 | |||||||||||||||||||||||||||||||||||||
North America commissaries | 8,425 | — | 8,425 | 9,598 | — | 9,598 | (1,173) | |||||||||||||||||||||||||||||||||||||
International | 1,136 | 4,132 | 5,268 | 9,618 | — | 9,618 | (4,350) | |||||||||||||||||||||||||||||||||||||
All others | 2,037 | — | 2,037 | 3,848 | — | 3,848 | (1,811) | |||||||||||||||||||||||||||||||||||||
Unallocated corporate expenses | (27,684) | 10,000 | (17,684) | (23,158) | 2,153 | (21,005) | 3,321 | |||||||||||||||||||||||||||||||||||||
Elimination of intersegment losses (profits) | 416 | — | 416 | (639) | — | (639) | 1,055 | |||||||||||||||||||||||||||||||||||||
Total | $ | 19,461 | $ | 14,132 | $ | 33,593 | $ | 38,577 | $ | 2,153 | $ | 40,730 | $ | (7,137) |
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Reported Sep. 25, 2022 | Special items in 2022 (a) | Adjusted Sep. 25, 2022 | Reported Sep. 26, 2021 | Special items in 2021 (b) | Adjusted Sep. 26, 2021 | Adjusted Increase (Decrease) | |||||||||||||||||||||||||||||||||||||
Domestic Company-owned restaurants | $ | 11,579 | $ | 8,412 | $ | 19,991 | $ | 40,165 | $ | — | $ | 40,165 | $ | (20,174) | ||||||||||||||||||||||||||||||
North America franchising | 96,225 | — | 96,225 | 90,791 | — | 90,791 | 5,434 | |||||||||||||||||||||||||||||||||||||
North America commissaries | 28,717 | — | 28,717 | 29,089 | — | 29,089 | (372) | |||||||||||||||||||||||||||||||||||||
International | 12,897 | 7,647 | 20,544 | 26,665 | — | 26,665 | (6,121) | |||||||||||||||||||||||||||||||||||||
All others | 7,943 | — | 7,943 | 14,860 | — | 14,860 | (6,917) | |||||||||||||||||||||||||||||||||||||
Unallocated corporate expenses | (84,138) | 30,376 | (53,762) | (70,937) | 9,364 | (61,573) | 7,811 | |||||||||||||||||||||||||||||||||||||
Elimination of intersegment losses (profits) | (423) | — | (423) | (557) | — | (557) | 134 | |||||||||||||||||||||||||||||||||||||
Total | $ | 72,800 | $ | 46,435 | $ | 119,235 | $ | 130,076 | $ | 9,364 | $ | 139,440 | $ | (20,205) |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||
September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||
Income before income taxes | $ | 11,838 | $ | 34,598 | $ | 54,833 | $ | 118,801 | |||||||||||||||
Income tax expense | $ | 3,374 | $ | 4,057 | $ | 9,212 | $ | 19,387 | |||||||||||||||
Effective tax rate | 28.5 | % | 11.7 | % | 16.8 | % | 16.3 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(In thousands, except per share amounts) | September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||||
GAAP operating income | $ | 19,461 | $ | 38,577 | $ | 72,800 | $ | 130,076 | ||||||||||||||||||
Refranchising and impairment losses(a) | 905 | — | 26,701 | — | ||||||||||||||||||||||
Legal settlements(b) | 10,000 | — | 15,000 | — | ||||||||||||||||||||||
Provision for uncollectible accounts and notes receivable(c) | 3,227 | — | 3,227 | |||||||||||||||||||||||
Strategic corporate reorganization costs(d) | — | 2,153 | — | 9,364 | ||||||||||||||||||||||
Other costs(e) | — | — | 1,507 | — | ||||||||||||||||||||||
Adjusted operating income | $ | 33,593 | $ | 40,730 | $ | 119,235 | $ | 139,440 | ||||||||||||||||||
GAAP net income (loss) attributable to common shareholders | $ | 8,245 | $ | 28,961 | $ | 43,996 | $ | (20,423) | ||||||||||||||||||
Refranchising and impairment losses(a) | 905 | — | 26,701 | — | ||||||||||||||||||||||
Legal settlements(b) | 10,000 | — | 15,000 | — | ||||||||||||||||||||||
Provision for uncollectible accounts and notes receivable(c) | 3,227 | — | 3,227 | — | ||||||||||||||||||||||
Strategic corporate reorganization costs(d) | — | 2,153 | — | 9,364 | ||||||||||||||||||||||
Other costs(e) | — | — | 1,507 | — | ||||||||||||||||||||||
Repurchase and conversion of Series B Preferred Stock(f) | — | — | — | 109,852 | ||||||||||||||||||||||
Tax effect of Non-GAAP adjustments on special items(g) | (3,180) | (483) | (10,449) | (2,098) | ||||||||||||||||||||||
Adjusted net income attributable to common shareholders | $ | 19,197 | $ | 30,631 | $ | 79,982 | $ | 96,695 | ||||||||||||||||||
GAAP diluted earnings (loss) per common share | $ | 0.23 | $ | 0.79 | $ | 1.22 | $ | (0.59) | ||||||||||||||||||
Refranchising and impairment losses(a) | 0.03 | — | 0.75 | — | ||||||||||||||||||||||
Legal settlements(b) | 0.28 | — | 0.42 | — | ||||||||||||||||||||||
Provision for uncollectible accounts and notes receivable(c) | 0.09 | — | 0.09 | — | ||||||||||||||||||||||
Strategic corporate reorganization costs(d) | — | 0.05 | — | 0.27 | ||||||||||||||||||||||
Other costs(e) | — | — | 0.04 | — | ||||||||||||||||||||||
Repurchase and conversion of Series B Preferred Stock(f) | — | — | — | 3.14 | ||||||||||||||||||||||
Tax effect of Non-GAAP adjustments on special items(g) | (0.09) | (0.01) | (0.29) | (0.06) | ||||||||||||||||||||||
Adjusted diluted earnings per common share | $ | 0.54 | $ | 0.83 | $ | 2.23 | $ | 2.76 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(In thousands) | September 25, 2022 | September 26, 2021 | September 25, 2022 | September 26, 2021 | ||||||||||||||||||||||
Refranchising impairment loss(1) | $ | — | $ | — | $ | 8,412 | $ | — | ||||||||||||||||||
Ukraine-related charge(2) | — | — | 17,385 | — | ||||||||||||||||||||||
PJUK lease impairment(3) | 905 | — | 905 | — | ||||||||||||||||||||||
Total adjustment | $ | 905 | $ | — | $ | 26,702 | $ | — |
Nine Months Ended | |||||||||||
September 25, 2022 | September 26, 2021 | ||||||||||
Total cash provided by (used in): | |||||||||||
Operating activities | $ | 76,553 | $ | 193,624 | |||||||
Investing activities | (30,229) | (41,191) | |||||||||
Financing activities | (79,216) | (177,058) | |||||||||
Change in cash and cash equivalents, excluding the impact of foreign currency | $ | (32,892) | $ | (24,625) |
Permitted Ratio | Actual Ratio as of Sept. 25, 2022 | ||||||||||
Leverage ratio | Not to exceed 5.25 to 1.0 | 2.4 to 1.0 | |||||||||
Interest coverage ratio | Not less than 2.00 to 1.0 | 4.2 to 1.0 |
(in thousands, except average price per share) | Total Number of Shares Purchased | Average Price Paid per Share | Aggregate Cost of Shares Purchased | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
September 25, 2022 | 229 | $ | 85.15 | $ | 19,529 | $ | 329,800 | |||||||||||||||||||
September 26, 2021 | 104 | $ | 119.47 | $ | 12,367 | $ | 51,743 | |||||||||||||||||||
(in thousands, except average price per share) | Total Number of Shares Purchased | Average Price Paid per Share | Aggregate Cost of Shares Purchased | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
September 25, 2022 | 982 | $ | 96.71 | $ | 95,000 | $ | 329,800 | |||||||||||||||||||
September 26, 2021 | 187 | $ | 110.00 | $ | 20,555 | $ | 51,743 |
Nine Months Ended | |||||||||||
September 25, 2022 | September 26, 2021 | ||||||||||
Net cash provided by operating activities | $ | 76,553 | $ | 193,624 | |||||||
Purchases of property and equipment | (48,424) | (41,328) | |||||||||
Dividends paid to preferred stockholders | — | (6,394) | |||||||||
Free cash flow | $ | 28,129 | $ | 145,902 |
2022 | 2021 | |||||||||||||
Projected Block Price | Actual Block Price | |||||||||||||
Quarter 1 | $ | 1.966 | $ | 1.676 | ||||||||||
Quarter 2 | 2.296 | 1.680 | ||||||||||||
Quarter 3 | 1.938 | 1.676 | ||||||||||||
Quarter 4 | 1.974 | 1.786 | ||||||||||||
Full Year | $ | 2.043 | (a) | $ | 1.705 |
(a) | The full year estimate is based on futures prices and does not include the impact of forward pricing agreements we have for a portion of our cheese purchases for our domestic Company-owned restaurants. Additionally, the price charged to restaurants can vary somewhat by quarter from the actual block price based upon our monthly pricing mechanism. |
Fiscal Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
6/27/2022 - 7/24/2022 | 167 | $ | 84.60 | 167 | $ | 335,169 | ||||||||||||||||||||
7/25/2022 - 8/21/2022 | 62 | $ | 86.63 | 62 | $ | 329,800 | ||||||||||||||||||||
8/22/2022 - 9/25/2022 | — | $ | — | — | $ | 329,800 | ||||||||||||||||||||
Total | 229 | $ | 85.15 | 229 | $ | 329,800 |
Exhibit Number | Description | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | Financial statements from the quarterly report on Form 10-Q of Papa John’s International, Inc. for the quarter ended September 25, 2022, filed on November 3, 2022, formatted in iXBRL: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Stockholders’ Deficit, (v) the Condensed Consolidated Statements of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
PAPA JOHN’S INTERNATIONAL, INC. | |||||
(Registrant) | |||||
Date: November 3, 2022 | /s/ Ann B. Gugino | ||||
Ann B. Gugino | |||||
Chief Financial Officer |
Date: November 3, 2022 | /s/ Robert Lynch | ||||
Robert Lynch | |||||
President and Chief Executive Officer | |||||
Date: November 3, 2022 | /s/ Ann B. Gugino | ||||
Ann B. Gugino | |||||
Chief Financial Officer |
Date: November 3, 2022 | /s/ Robert Lynch | ||||
Robert Lynch | |||||
President and Chief Executive Officer |
Date: November 3, 2022 | /s/ Ann B. Gugino | ||||
Ann B. Gugino | |||||
Chief Financial Officer |
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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands |
Sep. 25, 2022 |
Dec. 26, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 49,112 | 49,002 |
Treasury stock (in shares) | 14,047 | 13,205 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
|||||
Statement of Comprehensive Income [Abstract] | ||||||||
Net income before attribution to noncontrolling interests | $ 8,464 | $ 30,541 | $ 45,621 | $ 99,414 | ||||
Other comprehensive (loss) income, before tax: | ||||||||
Foreign currency translation adjustments | (4,849) | (1,113) | (9,819) | 383 | ||||
Interest rate swaps | [1] | 1,169 | 1,535 | 4,758 | 5,147 | |||
Other comprehensive (loss) income, before tax | (3,680) | 422 | (5,061) | 5,530 | ||||
Income tax effect: | ||||||||
Foreign currency translation adjustments | 1,114 | 256 | 2,258 | (88) | ||||
Interest rate swaps | [2] | (268) | (353) | (1,094) | (1,184) | |||
Income tax effect | 846 | (97) | 1,164 | (1,272) | ||||
Other comprehensive (loss) income, net of tax | (2,834) | 325 | (3,897) | 4,258 | ||||
Comprehensive income before attribution to noncontrolling interests | 5,630 | 30,866 | 41,724 | 103,672 | ||||
Less: comprehensive (income), redeemable noncontrolling interests | (31) | (692) | (559) | (2,192) | ||||
Less: comprehensive (income), nonredeemable noncontrolling interests | (102) | (593) | (804) | (1,829) | ||||
Comprehensive income attributable to the Company | $ 5,497 | $ 29,581 | $ 40,361 | $ 99,651 | ||||
|
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Consolidated Statements of Comprehensive Income (Unaudited) | ||||
Income tax effects | $ 3,374 | $ 4,057 | $ 9,212 | $ 19,387 |
Interest Rate Swap | Reclassification out of Accumulated Other Comprehensive Loss | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||||
Consolidated Statements of Comprehensive Income (Unaudited) | ||||
Income tax effects | 371 | 368 | 416 | 1,139 |
Interest Rate Swap | Interest Expense | Reclassification out of Accumulated Other Comprehensive Loss | ||||
Consolidated Statements of Comprehensive Income (Unaudited) | ||||
Amounts reclassified out of accumulated other comprehensive loss | $ 1,650 | $ 1,644 | $ 1,850 | $ 5,084 |
Condensed Consolidated Statements of Stockholders' Deficit (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Stockholders' deficit | $ 258,619 | $ 137,046 | $ 258,619 | $ 137,046 |
Accumulated other comprehensive loss | ||||
Stockholders' deficit | 13,868 | 9,910 | 13,868 | 9,910 |
Net unrealized foreign currency translation loss | ||||
Stockholders' deficit | 12,430 | 3,499 | 12,430 | 3,499 |
Net unrealized loss on interest rate swap agreements | ||||
Stockholders' deficit | 1,438 | 6,411 | 1,438 | 6,411 |
Corporate Joint Venture | ||||
Net income allocable to the redeemable noncontrolling interest for joint venture arrangements | $ 31 | $ 692 | $ 559 | $ 2,192 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Operating activities | ||
Net income before attribution to noncontrolling interests | $ 45,621 | $ 99,414 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (benefit) for allowance for credit losses on accounts and notes receivable | 18,576 | (920) |
Depreciation and amortization | 38,012 | 36,830 |
Refranchising and impairment loss | 12,065 | 0 |
Deferred income taxes | 519 | (5,113) |
Stock-based compensation expense | 14,246 | 12,519 |
Other | (466) | 1,052 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (19,584) | 5,955 |
Income tax receivable | (1,146) | 674 |
Inventories | (8,185) | (3,217) |
Prepaid expenses and other current assets | 2,065 | 11,277 |
Other assets and liabilities | (4,919) | (8,627) |
Accounts payable | 16,188 | 5,014 |
Income and other taxes payable | (1,789) | 15,958 |
Accrued expenses and other current liabilities | (32,404) | 24,001 |
Deferred revenue | (2,246) | (1,193) |
Net cash provided by operating activities | 76,553 | 193,624 |
Investing activities | ||
Purchases of property and equipment | (48,424) | (41,328) |
Notes issued | (2,248) | (14,637) |
Repayments of notes issued | 8,125 | 15,352 |
Acquisitions, net of cash acquired | (1,346) | (699) |
Proceeds from refranchising, net of cash transferred | 13,588 | 0 |
Other | 76 | 121 |
Net cash used in investing activities | (30,229) | (41,191) |
Financing activities | ||
Proceeds from issuance of senior notes | 0 | 400,000 |
Net proceeds of revolving credit facilities | 66,999 | 15,000 |
Debt issuance costs | 0 | (9,179) |
Proceeds from exercise of stock options | 2,730 | 11,211 |
Repurchase of Series B Convertible Preferred Stock | 0 | (188,647) |
Acquisition of Company common stock | (95,000) | (20,555) |
Dividends paid to common stockholders | (39,949) | (27,640) |
Dividends paid to preferred stockholders | 0 | (6,394) |
Tax payments for equity award issuances | (9,426) | (5,310) |
Distributions to noncontrolling interests | (1,090) | (2,914) |
Repayments of term loan | 0 | (340,000) |
Other | (3,480) | (2,630) |
Net cash used in financing activities | (79,216) | (177,058) |
Effect of exchange rate changes on cash and cash equivalents | (1,100) | 234 |
Change in cash and cash equivalents | (33,992) | (24,391) |
Cash and cash equivalents at beginning of period | 70,610 | 130,204 |
Cash and cash equivalents at end of period | $ 36,618 | $ 105,813 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 25, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 25, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 25, 2022. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K for Papa John’s International, Inc. (referred to as the “Company”, “Papa John’s” or in the first-person notations of “we”, “us” and “our”) for the year ended December 26, 2021. |
Significant Accounting Policies |
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Sep. 25, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant items that are subject to such estimates and assumptions include allowance for credit losses on accounts and notes receivable, contract assets and contract liabilities, including the online customer loyalty program obligation and gift card breakage, right-of-use assets and lease liabilities, insurance reserves, and tax reserves. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could significantly differ from these estimates. Variable Interest Entity Papa John’s domestic restaurants, both Company-owned and franchised, participate in Papa John’s Marketing Fund, Inc. (“PJMF”), a nonstock corporation designed to operate at break-even as it spends all annual contributions received from the system. PJMF collects a percentage of revenues from Company-owned and franchised restaurants in the United States for the purpose of designing and administering advertising and promotional programs. PJMF is a variable interest entity (“VIE”) that funds its operations with ongoing financial support and contributions from the domestic restaurants, of which approximately 85 percent are franchised, and does not have sufficient equity to fund its operations without these ongoing financial contributions. Based on an assessment of the governance structure and operating procedures of PJMF, the Company determined it has the power to control certain significant activities of PJMF, and therefore, is the primary beneficiary. The Company has consolidated PJMF in its financial results in accordance with Accounting Standards Codification (“ASC”) 810, “Consolidations.” Noncontrolling Interests Papa John’s has joint venture arrangements in which there are noncontrolling interests held by third parties that include 98 and 188 restaurants at September 25, 2022 and September 26, 2021, respectively. As further described in Note 10, we divested our 51 percent interest in one joint venture that owned 90-restaurants in the second quarter of 2022. The assets and liabilities associated with this joint venture arrangement were classified as held for sale at the end of the first quarter of 2022. Consolidated net income is required to be reported separately at amounts attributable to both the Company and the noncontrolling interests. Additionally, disclosures are required to clearly identify and distinguish between the interests of the Company and the interests of the noncontrolling owners, including a disclosure on the face of the Condensed Consolidated Statements of Operations of net income attributable to noncontrolling interests. Net income attributable to these joint ventures for the three and nine months ended September 25, 2022 and September 26, 2021 was as follows (in thousands):
The following summarizes the redemption feature, location and related accounting within the Condensed Consolidated Balance Sheets for these joint venture arrangements:
Deferred Income Tax Accounts and Tax Reserves We are subject to income taxes in the United States and several foreign jurisdictions. Significant judgment is required in determining Papa John’s provision for income taxes and the related assets and liabilities. The provision for income taxes includes income taxes paid, currently payable or receivable and those deferred. We use an estimated annual effective rate based on expected annual income to determine our quarterly provision for income taxes. The effective income tax rate includes the estimated domestic state effective income tax rate and applicable foreign income tax rates. The effective income tax rate is also impacted by various permanent items and credits, net of any related valuation allowances, and can vary based on changes in estimated annual income. Discrete items are recorded in the quarter in which they occur. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax attribute carryforwards (e.g., net operating losses, capital losses, and foreign tax credits). The effect on deferred taxes of changes in tax rates is recognized in the period in which the new tax rate is enacted. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts we expect to realize. Tax authorities periodically audit the Company. We record reserves and related interest and penalties for identified exposures as income tax expense. We evaluate these issues on a quarterly basis to adjust for events, such as statute of limitations expirations, court or state rulings or audit settlements, which may impact our ultimate payment for such exposures. Fair Value Measurements and Disclosures The Company determines the fair value of financial assets and liabilities based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. Certain assets and liabilities are measured at fair value on a recurring basis and are required to be classified and disclosed in one of the following three categories: •Level 1: Quoted market prices in active markets for identical assets or liabilities. •Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. •Level 3: Unobservable inputs that are not corroborated by market data. Fair value is a market-based measurement, not an entity-specific measurement. Considerable judgment is required to interpret market data to estimate fair value; accordingly, the fair values presented do not necessarily indicate what the Company or its debtholders could realize in a current market exchange. Our financial assets and liabilities that were measured at fair value on a recurring basis as of September 25, 2022 and December 26, 2021 are as follows:
_______________ (a)Represents life insurance policies held in our non-qualified deferred compensation plan. (b)The fair value of our interest rate swaps is based on the sum of all future net present value cash flows. The future cash flows are derived based on the terms of our interest rate swaps, as well as considering published discount factors, and projected London Interbank Offered Rates (“LIBOR”). The fair value of certain assets and liabilities approximates carrying value because of the short-term nature of the accounts, including cash and cash equivalents, accounts receivable, net of allowances, and accounts payable. The carrying value of notes receivable, net of allowances, also approximates fair value. The Company’s revolving credit facilities under its credit agreement approximate carrying value due to its variable market-based interest rate. The Company’s 3.875% senior notes are classified as a Level 2 fair value measurement since the Company estimates the fair value by using recent trading transactions, and has the following estimated fair values and carrying values (excluding the impact of unamortized debt issuance costs) as of September 25, 2022 and December 26, 2021, respectively:
Allowance for Credit Losses Estimates of expected credit losses, even if remote, are based upon historical account write-off trends, facts about the current financial condition of the debtor, forecasts of future operating results based upon current trends of select operating metrics, and macroeconomic factors. Credit quality is monitored through the timing of payments compared to the prescribed payment terms and known facts regarding the financial condition of the franchisee or customer. Account and note balances are charged off against the allowance after recovery efforts have ceased. The following table summarizes changes in our allowances for credit losses for accounts receivable and notes receivable:
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessor Operating Leases At September 25, 2022, we leased and subleased approximately 444 Papa John’s restaurant properties to franchisees in the United Kingdom. The initial lease terms on the franchised sites in the United Kingdom are generally 15 years. The Company has the option to negotiate an extension toward the end of the lease term at the landlord’s discretion. Rental income, primarily derived from properties leased and subleased to franchisees in the United Kingdom, is recognized on a straight-line basis over the respective operating lease terms. We recognized total sublease income of $3.0 million and $9.0 million for the three and nine months ended September 25, 2022, respectively, and $2.9 million and $9.0 million for the three and nine months ended September 26, 2021, respectively, within Other revenues in the Condensed Consolidated Statements of Operations. Lease Guarantees As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants, we are contingently liable for payment of approximately 55 domestic leases. These leases have varying terms, the latest of which expires in 2036. As of September 25, 2022, the estimated maximum amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessees was $9.8 million. This contingent liability is not included in the Condensed Consolidated Balance Sheet as it is not probable to occur. The fair value of the guarantee is not material. Supplemental Cash Flow & Other Information Supplemental cash flow information related to leases for the periods reported is as follows:
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Leases | Leases Lessor Operating Leases At September 25, 2022, we leased and subleased approximately 444 Papa John’s restaurant properties to franchisees in the United Kingdom. The initial lease terms on the franchised sites in the United Kingdom are generally 15 years. The Company has the option to negotiate an extension toward the end of the lease term at the landlord’s discretion. Rental income, primarily derived from properties leased and subleased to franchisees in the United Kingdom, is recognized on a straight-line basis over the respective operating lease terms. We recognized total sublease income of $3.0 million and $9.0 million for the three and nine months ended September 25, 2022, respectively, and $2.9 million and $9.0 million for the three and nine months ended September 26, 2021, respectively, within Other revenues in the Condensed Consolidated Statements of Operations. Lease Guarantees As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants, we are contingently liable for payment of approximately 55 domestic leases. These leases have varying terms, the latest of which expires in 2036. As of September 25, 2022, the estimated maximum amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessees was $9.8 million. This contingent liability is not included in the Condensed Consolidated Balance Sheet as it is not probable to occur. The fair value of the guarantee is not material. Supplemental Cash Flow & Other Information Supplemental cash flow information related to leases for the periods reported is as follows:
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Leases | Leases Lessor Operating Leases At September 25, 2022, we leased and subleased approximately 444 Papa John’s restaurant properties to franchisees in the United Kingdom. The initial lease terms on the franchised sites in the United Kingdom are generally 15 years. The Company has the option to negotiate an extension toward the end of the lease term at the landlord’s discretion. Rental income, primarily derived from properties leased and subleased to franchisees in the United Kingdom, is recognized on a straight-line basis over the respective operating lease terms. We recognized total sublease income of $3.0 million and $9.0 million for the three and nine months ended September 25, 2022, respectively, and $2.9 million and $9.0 million for the three and nine months ended September 26, 2021, respectively, within Other revenues in the Condensed Consolidated Statements of Operations. Lease Guarantees As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants, we are contingently liable for payment of approximately 55 domestic leases. These leases have varying terms, the latest of which expires in 2036. As of September 25, 2022, the estimated maximum amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessees was $9.8 million. This contingent liability is not included in the Condensed Consolidated Balance Sheet as it is not probable to occur. The fair value of the guarantee is not material. Supplemental Cash Flow & Other Information Supplemental cash flow information related to leases for the periods reported is as follows:
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Papa John's Marketing Fund, Inc. |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Papa John's Marketing Fund, Inc. | Papa John’s Marketing Fund, Inc. PJMF collects a percentage of revenues from Company-owned and franchised restaurants in the United States, for the purpose of designing and administering advertising and promotional programs for all participating domestic restaurants. Contributions and expenditures are reported on a gross basis in the Condensed Consolidated Statements of Operations within Other revenues and Other expenses. Assets and liabilities of PJMF, which are restricted in their use, included in the Condensed Consolidated Balance Sheets were as follows (in thousands):
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Contract Balances Our contract liabilities primarily relate to franchise fees, unredeemed gift card liabilities, and loyalty program obligations, which we classify as Deferred revenue on the Condensed Consolidated Balance Sheets. During the three and nine months ended September 25, 2022, the Company recognized $8.0 million and $25.6 million in revenue, respectively, related to deferred revenue, compared to $9.2 million and $27.3 million for the three and nine months ended September 26, 2021. The following table includes a breakout of contract liability balances (in thousands):
Our contract assets consist primarily of equipment incentives provided to franchisees. Equipment incentives are related to the future value of commissary revenue the Company will receive over the term of the incentive agreement. As of September 25, 2022 and December 26, 2021, the contract assets were approximately $5.1 million and $5.8 million, respectively. For the three and nine months ended September 25, 2022, revenue was reduced approximately $0.8 million and $2.7 million for the amortization of contract assets over the applicable contract terms. Contract assets are included in Prepaid expenses and other current assets and Other assets on the Condensed Consolidated Balance Sheets. Transaction Price Allocated to the Remaining Performance Obligations The following table (in thousands) includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period.
Approximately $3.1 million of area development fees related to unopened stores and international unearned royalties are included in Deferred revenue. Timing of revenue recognition is dependent upon the timing of store openings and franchisees’ revenues. Gift card liabilities of approximately $5.2 million, included in Deferred revenue, will be recognized in Company-owned restaurant revenues when gift cards are redeemed. The Company will recognize redemption fee revenue in Other revenues when cards are redeemed at franchised restaurant locations. The Company applies the practical expedient in ASC 606, "Revenue Recognition" and does not disclose information about remaining performance obligations that have original expected durations of one year or less.
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Common Stock |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock Shares Authorized and Outstanding The Company has authorized 5.0 million shares of preferred stock (of which none were issued or outstanding at September 25, 2022 and December 26, 2021) and 100.0 million shares of common stock as of September 25, 2022 and December 26, 2021. There were 35.1 million shares of common stock outstanding, net of repurchased shares of common stock at September 25, 2022, compared to 35.8 million shares at December 26, 2021. Share Repurchase Program On October 28, 2021, our Board of Directors approved a share repurchase program with an indefinite duration for up to $425.0 million of the Company’s common stock. This share repurchase program operated alongside our previous $75.0 million share repurchase authorization, which began on November 4, 2020 and expired on December 26, 2021. The following table summarizes our repurchase activity under our share repurchase programs for the three and nine months ended September 25, 2022 and September 26, 2021:
The timing and volume of share repurchases under the Company’s share repurchase programs may be executed at the discretion of management on an opportunistic basis, subject to market and business conditions, regulatory requirements and other factors, or pursuant to trading plans or other arrangements. Repurchases under the programs may be made through open market, block, and privately negotiated transactions, including Rule 10b5-1 plans, at times and in such amounts as management deems appropriate. Repurchases under the Company’s share repurchase programs may be commenced or suspended from time to time at the Company’s discretion without prior notice. Funding for the share repurchase programs will be provided through our credit facility, operating cash flow, stock option exercises and cash and cash equivalents. Dividends The Company recorded dividends of approximately $39.9 million ($1.12 per share) for the nine months ended September 25, 2022. On October 27, 2022, our Board of Directors declared a fourth quarter dividend of $0.42 per common share (approximately $14.9 million in the aggregate), which will be paid on November 25, 2022 to stockholders of record as of the close of business on November 14, 2022. The declaration and payment of any future dividends will be at the discretion of our Board of Directors.
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Earnings (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per ShareWe compute earnings (loss) per share using the two-class method. The two-class method requires an earnings allocation formula that determines earnings (loss) per share for common shareholders and participating security holders according to dividends declared and participating rights in undistributed earnings. The shares of the Company’s former Series B Convertible Preferred Stock ("Series B Preferred Stock"), all of which were repurchased by the Company or converted into shares of common stock during 2021, and time-based restricted stock awards are participating securities because holders of such shares have non-forfeitable dividend rights and participate in undistributed earnings with common stock. Under the two-class method, total dividends provided to the holders of participating securities and undistributed earnings allocated to participating securities, are subtracted from net income attributable to the Company in determining net income attributable to common shareholders. Additionally, any accretion to the redemption value for the Series B Preferred Stock was treated as a deemed dividend in the two-class earnings per share calculation. The calculations of basic and diluted earnings per common share are as follows:
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Long-term debt, net, consists of the following (in thousands):
Senior Notes On September 14, 2021, the Company issued $400.0 million of 3.875% senior notes (the “Notes”) which will mature on September 15, 2029. Interest on the Notes is payable semi-annually in cash in arrears on March 15 and September 15 of each year at a fixed interest rate of 3.875% per annum. The Company may redeem the Notes, in whole or in part, at any time on or after September 15, 2024 at established redemption prices ranging from 97 to 194 basis points depending on when the Notes are redeemed. At any time prior to September 15, 2024, the Company may also redeem up to 40% of the Notes with net cash proceeds of certain equity offerings at a redemption price equal to 103.875% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, excluding the redemption date. In addition, at any time prior to September 15, 2024, the Company may redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest and an applicable “make-whole” premium. The Notes also contain customary redemption provisions related to asset sales and certain change of control transactions. The Indenture governing the Notes contains customary events of default, including, among other things, payment default, failure to comply with covenants or agreements contained in the Indenture or the Notes and certain provisions related to bankruptcy events. The Indenture also contains customary negative covenants. Amended Credit Agreement The Company’s amended and restated credit agreement, dated September 14, 2021 (the “Amended Credit Agreement”) provides for a senior secured revolving credit facility in an aggregate available principal amount of $600.0 million (the “PJI Revolving Facility”), of which up to $40.0 million is available as swingline loans and up to $80.0 million is available as letters of credit. The PJI Revolving Facility will mature on September 14, 2026. The remaining availability under the PJI Revolving Facility was approximately $443.0 million as of September 25, 2022. Up to $50.0 million of the PJI Revolving Facility may be advanced in certain agreed foreign currencies, including Euros, Pounds Sterling, Canadian Dollars, Japanese Yen, and Mexican Pesos. Additionally, the Amended Credit Agreement includes an accordion feature allowing for a future increase of the PJI Revolving Facility and/or incremental term loans in an aggregate amount of up to $500.0 million, subject to certain conditions, including obtaining commitments from one or more new or existing lenders to provide such increased amounts and ongoing compliance with financial covenants. Loans under the PJI Revolving Facility accrue interest at a per annum rate equal to, at the Company’s election, either a LIBOR rate plus a margin ranging from 1.25% to 2.00% or a base rate (generally determined according to the greater of a prime rate, federal funds rate plus 0.50%, or a LIBOR rate plus 1.00%) plus a margin ranging from 0.25% to 1.00%. In each case, the actual margin is determined according to a ratio of the Company’s total indebtedness to earnings before interest, taxes, depreciation, and amortization (“EBITDA”) for the then most recently ended four quarter period (the “Leverage Ratio”). An unused commitment fee ranging from 18 to 30 basis points per annum, determined according to the Leverage Ratio, applies to the underutilized commitments under the PJI Revolving Facility. Loans outstanding under the PJI Revolving Facility may be prepaid at any time without premium or penalty, subject to customary breakage costs in the case of borrowings for which a LIBOR rate election is in effect. The Amended Credit Agreement also contain provisions specifying alternative interest rate calculations to be used at such time as LIBOR ceases to be available as a benchmark for establishing the interest rate on floating interest rate borrowings. The Amended Credit Agreement contains customary affirmative and negative covenants that, among other things, require customary reporting obligations, and restrict, subject to certain exceptions, the occurrence of additional indebtedness and liens, the consummation of certain mergers, consolidations, sales of assets and similar transactions, the making of investments, equity distributions and other restricted payments, and transactions with affiliates. The Company is also subject to the following financial covenants: (1) a maximum Leverage Ratio of 5.25 to 1.00, subject to the Company’s election to increase the maximum Leverage Ratio by 0.50 to 1.00 in connection with material acquisitions if the Company satisfies certain requirements, and (2) a minimum interest coverage ratio defined as EBITDA plus consolidated rental expense to consolidated interest expense plus consolidated rental expense of 2.00 to 1.00. We were in compliance with these financial covenants at September 25, 2022. Obligations under the Amended Credit Agreement are guaranteed by certain direct and indirect material domestic subsidiaries of the Company (the “Guarantors”) and are secured by a security interest in substantially all of the capital stock and equity interests of the Company’s and the Guarantors’ domestic and first tier material foreign subsidiaries. The Amended Credit Agreement contains customary events of default including, among other things, payment defaults, breach of covenants, cross acceleration to material indebtedness, bankruptcy-related defaults, judgment defaults, and the occurrence of certain change of control events. The occurrence of an event of default may result in the termination of the PJI Revolving Facility, acceleration of repayment obligations and the exercise of remedies by the Lenders with respect to the Guarantors. PJMF Revolving Facility PJMF has a $20.0 million revolving line of credit (the “PJMF Revolving Facility”) pursuant to a Revolving Loan Agreement, dated September 30, 2015 with U.S. Bank National Association, as lender. The PJMF Revolving Facility is secured by substantially all assets of PJMF. The PJMF Revolving Facility matures on September 30, 2023. The borrowings under the PJMF Revolving Facility accrue interest at a variable rate of a one month Term Secured Overnight Financing Rate ("SOFR") plus 1.60%. There was no debt outstanding under the PJMF Revolving Facility as of September 25, 2022 or December 26, 2021. The PJMF operating results and the related debt outstanding do not impact the financial covenants under the Amended Credit Agreement. Derivative Financial Instruments As of September 25, 2022, we have the following interest rate swap agreements with a total notional value of $125.0 million:
In the third quarter of 2021, our interest rate swaps were de-designated as cash flow hedges following the issuance of the Notes and remained undesignated as hedges through June 26, 2022. For these de-designated hedges, the portion of gains or losses on the derivative instruments previously recognized in accumulated other comprehensive loss (“AOCL”) will be reclassified into earnings as adjustments to interest expense on a straight-line basis over the remaining life of the originally hedged transactions. As of June 27, 2022, the interest rate swaps were re-designated as cash flow hedges to provide a hedge against changes in variable rate cash flows regarding fluctuations in the LIBOR rate utilized on the revolving credit facility. Therefore, beginning in the third quarter of 2022, our interest rate swaps are accounted for utilizing cash flow hedge accounting treatment. The interest rate swaps are marked to market at each reporting date and any unrealized gains or losses are included in accumulated other comprehensive income and reclassified to interest expense in the same period or periods during which the hedged transactions affect earnings. The following table provides information on the location and amounts of our swaps in the accompanying condensed consolidated financial statements (in thousands):
The effect of derivative instruments on the accompanying condensed consolidated financial statements is as follows (in thousands):
Interest paid, including payments made or received under the swaps, was $9.6 million and $4.1 million for the three months ended September 25, 2022 and September 26, 2021, respectively, and $22.2 million and $11.1 million for the nine months ended September 25, 2022 and September 26, 2021, respectively.
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Commitments and Contingencies |
9 Months Ended |
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Sep. 25, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is involved in a number of lawsuits, claims, investigations and proceedings, including those specifically identified below, consisting of intellectual property, employment, consumer, commercial and other matters arising in the ordinary course of business. In accordance with ASC 450, “Contingencies” the Company has made accruals with respect to these matters where appropriate, which are reflected in the Company’s condensed consolidated financial statements. We review these provisions at least quarterly and adjust them to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. In re Papa John’s Employee & Franchise Employee Antitrust Litigation is a putative class action filed in December 2018 in the United States District Court for the Western District of Kentucky. The suit alleges that the “no-poaching” provision previously contained in the Company’s franchise agreement constituted an unlawful agreement or conspiracy in restraint of trade and commerce in violation of Section 1 of the Sherman Antitrust Act. On April 14, 2022, the parties reached a settlement in principle to resolve the case. Pursuant to the terms of the proposed settlement, in exchange for the Company’s payment of a total aggregate settlement amount of $5.0 million and other non-monetary consideration, all claims in the action will be dismissed, the litigation will be terminated, and the Company will receive a release. The settlement amount was recorded in General and administrative expenses in the Condensed Consolidated Statements of Operations in the first quarter of 2022. The proposed settlement is subject to approval by the District Court and contains certain customary contingencies. The Company continues to deny any liability or wrongdoing in this matter. Durling et al v. Papa John’s International, Inc., is a conditionally certified collective action filed in May 2016 in the United States District Court for the Southern District of New York, alleging that corporate restaurant delivery drivers were not properly reimbursed for vehicle mileage and expenses in accordance with the Fair Labor Standards Act. In July 2018, the District Court granted a motion to certify a conditional corporate collective class and the opt-in notice process has been completed. As of the close of the opt-in period on October 29, 2018, 9,571 drivers opted into the collective class. On September 30, 2022, the parties reached a settlement in principle to resolve the case. Pursuant to the terms of the proposed settlement, in exchange for the Company’s payment of a total aggregate settlement amount of no more than $20.0 million subject to a claims-made process, all claims in the action will be dismissed, the litigation will be terminated, and the Company will receive a release. The proposed settlement also includes resolution of a companion case, Hubbard, et al. v. Papa John’s International, Inc., pending in the United States District Court for the Western District of Kentucky. The proposed settlement is subject to a claims-made process whereby unclaimed funds revert to the Company, and the Company is only responsible for payments to class and collective action members who timely submit a claim form. Although the return rate for timely claims is unknown and not within the Company's control, the Company estimates its actual exposure resulting from the settlement to be approximately $10.0 million and this amount was recorded in General and administrative expenses in the Condensed Consolidated Statements of Operations in the third quarter of 2022. The proposed settlement is subject to approval by the District Court and contains certain customary contingencies. The Company continues to deny any liability or wrongdoing in this matter.
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Divestitures |
9 Months Ended |
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Sep. 25, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures Refranchising Loss On March 28, 2022, we refranchised our 51% ownership interest in a 90-restaurant consolidated joint venture in Texas for $14.0 million, net of transaction costs. In connection with the divestiture, we recorded a one-time, non-cash charge of $8.4 million as a Refranchising Loss in the Condensed Consolidated Statement of Operations, which reflects net sale proceeds of $14.0 million, the noncontrolling interest of $4.2 million, and the recognition of an unearned royalty stream of $12.2 million to be recognized as revenue over the 10-year term of the franchise agreement executed concurrent with the disposition in accordance with ASC 810, “Consolidation.” The $8.4 million of the one-time, non-cash refranchising loss was recorded in the first quarter of 2022 and realized upon consummation of the sale in the second quarter. Impairment of Reacquired Master Franchise Rights In the first quarter of 2022, the Company recorded an impairment of $2.8 million for reacquired franchise rights due to the financial and operational impact of the conflict in Ukraine and government actions taken in response to that conflict, including, but not limited to, international sanctions. The reacquired franchise rights were previously acquired from a former master franchisee and capitalized by the Company.
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Segment Information |
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Segment Information | Segment Information We have four reportable segments: Domestic Company-owned restaurants, North America franchising, North America commissaries, and international operations. The domestic Company-owned restaurant segment consists of the operations of all domestic (“domestic” is defined as contiguous United States) Company-owned restaurants and derives its revenues principally from retail sales of pizza, Papadias, which are flatbread-style sandwiches, and side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages. The North America commissary segment consists of the operations of our regional dough production and product distribution centers and derives its revenues principally from the sale and distribution of food and paper products to domestic Company-owned and franchised restaurants in the United States and Canada. The North America franchising segment consists of our franchise sales and support activities and derives its revenues from sales of franchise and development rights and collection of royalties from our franchisees located in the United States and Canada. The international segment principally consists of distribution sales to franchised Papa John’s restaurants located in the United Kingdom and our franchise sales and support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from our international franchisees. International franchisees are defined as all franchise operations outside of the United States and Canada. All other business units that do not meet the quantitative thresholds for determining reportable segments, which are not operating segments, we refer to as “all other,” which consists of operations that derive revenues from the sale, principally to Company-owned and franchised restaurants, of printing and promotional items, franchise contributions to marketing funds and information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms. Generally, we evaluate performance and allocate resources based on operating income and intercompany eliminations. Certain administrative and capital costs are allocated to segments based upon predetermined rates or estimated resource usage. We account for intercompany sales and transfers as if the sales or transfers were to third parties and eliminate the activity in consolidation. Our reportable segments are business units that provide different products or services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies. No single external customer accounted for 10% or more of our consolidated revenues. Our segment information is as follows:
Disaggregation of Revenue 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):
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Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 25, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of EstimatesThe preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant items that are subject to such estimates and assumptions include allowance for credit losses on accounts and notes receivable, contract assets and contract liabilities, including the online customer loyalty program obligation and gift card breakage, right-of-use assets and lease liabilities, insurance reserves, and tax reserves. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could significantly differ from these estimates. |
Variable Interest Entity | Variable Interest Entity Papa John’s domestic restaurants, both Company-owned and franchised, participate in Papa John’s Marketing Fund, Inc. (“PJMF”), a nonstock corporation designed to operate at break-even as it spends all annual contributions received from the system. PJMF collects a percentage of revenues from Company-owned and franchised restaurants in the United States for the purpose of designing and administering advertising and promotional programs. PJMF is a variable interest entity (“VIE”) that funds its operations with ongoing financial support and contributions from the domestic restaurants, of which approximately 85 percent are franchised, and does not have sufficient equity to fund its operations without these ongoing financial contributions. Based on an assessment of the governance structure and operating procedures of PJMF, the Company determined it has the power to control certain significant activities of PJMF, and therefore, is the primary beneficiary. The Company has consolidated PJMF in its financial results in accordance with Accounting Standards Codification (“ASC”) 810, “Consolidations.”
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Noncontrolling Interests | Noncontrolling Interests Papa John’s has joint venture arrangements in which there are noncontrolling interests held by third parties that include 98 and 188 restaurants at September 25, 2022 and September 26, 2021, respectively. As further described in Note 10, we divested our 51 percent interest in one joint venture that owned 90-restaurants in the second quarter of 2022. The assets and liabilities associated with this joint venture arrangement were classified as held for sale at the end of the first quarter of 2022. Consolidated net income is required to be reported separately at amounts attributable to both the Company and the noncontrolling interests. Additionally, disclosures are required to clearly identify and distinguish between the interests of the Company and the interests of the noncontrolling owners, including a disclosure on the face of the Condensed Consolidated Statements of Operations of net income attributable to noncontrolling interests.
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Deferred Income Tax Accounts and Tax Reserves | Deferred Income Tax Accounts and Tax Reserves We are subject to income taxes in the United States and several foreign jurisdictions. Significant judgment is required in determining Papa John’s provision for income taxes and the related assets and liabilities. The provision for income taxes includes income taxes paid, currently payable or receivable and those deferred. We use an estimated annual effective rate based on expected annual income to determine our quarterly provision for income taxes. The effective income tax rate includes the estimated domestic state effective income tax rate and applicable foreign income tax rates. The effective income tax rate is also impacted by various permanent items and credits, net of any related valuation allowances, and can vary based on changes in estimated annual income. Discrete items are recorded in the quarter in which they occur. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax attribute carryforwards (e.g., net operating losses, capital losses, and foreign tax credits). The effect on deferred taxes of changes in tax rates is recognized in the period in which the new tax rate is enacted. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts we expect to realize. Tax authorities periodically audit the Company. We record reserves and related interest and penalties for identified exposures as income tax expense. We evaluate these issues on a quarterly basis to adjust for events, such as statute of limitations expirations, court or state rulings or audit settlements, which may impact our ultimate payment for such exposures.
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Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures The Company determines the fair value of financial assets and liabilities based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. Certain assets and liabilities are measured at fair value on a recurring basis and are required to be classified and disclosed in one of the following three categories: •Level 1: Quoted market prices in active markets for identical assets or liabilities. •Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. •Level 3: Unobservable inputs that are not corroborated by market data. Fair value is a market-based measurement, not an entity-specific measurement. Considerable judgment is required to interpret market data to estimate fair value; accordingly, the fair values presented do not necessarily indicate what the Company or its debtholders could realize in a current market exchange.The fair value of certain assets and liabilities approximates carrying value because of the short-term nature of the accounts, including cash and cash equivalents, accounts receivable, net of allowances, and accounts payable. The carrying value of notes receivable, net of allowances, also approximates fair value. The Company’s revolving credit facilities under its credit agreement approximate carrying value due to its variable market-based interest rate.
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Allowance for Credit Losses | Allowance for Credit Losses Estimates of expected credit losses, even if remote, are based upon historical account write-off trends, facts about the current financial condition of the debtor, forecasts of future operating results based upon current trends of select operating metrics, and macroeconomic factors. Credit quality is monitored through the timing of payments compared to the prescribed payment terms and known facts regarding the financial condition of the franchisee or customer. Account and note balances are charged off against the allowance after recovery efforts have ceased. |
Significant Accounting Policies (Tables) |
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Sep. 25, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net income attributable to joint ventures | Net income attributable to these joint ventures for the three and nine months ended September 25, 2022 and September 26, 2021 was as follows (in thousands):
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Schedule of details for joint venture arrangements | The following summarizes the redemption feature, location and related accounting within the Condensed Consolidated Balance Sheets for these joint venture arrangements:
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Schedule of financial assets and liabilities measured at fair value on a recurring basis | Our financial assets and liabilities that were measured at fair value on a recurring basis as of September 25, 2022 and December 26, 2021 are as follows:
_______________ (a)Represents life insurance policies held in our non-qualified deferred compensation plan. (b)The fair value of our interest rate swaps is based on the sum of all future net present value cash flows. The future cash flows are derived based on the terms of our interest rate swaps, as well as considering published discount factors, and projected London Interbank Offered Rates (“LIBOR”). The Company’s 3.875% senior notes are classified as a Level 2 fair value measurement since the Company estimates the fair value by using recent trading transactions, and has the following estimated fair values and carrying values (excluding the impact of unamortized debt issuance costs) as of September 25, 2022 and December 26, 2021, respectively:
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Schedule of changes of the allowance for credit losses for accounts receivable and notes receivable | The following table summarizes changes in our allowances for credit losses for accounts receivable and notes receivable:
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Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental cash flow information | Supplemental cash flow information related to leases for the periods reported is as follows:
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Papa John's Marketing Fund, Inc. (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities of PJMF | Assets and liabilities of PJMF, which are restricted in their use, included in the Condensed Consolidated Balance Sheets were as follows (in thousands):
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Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of contract liability balances | The following table includes a breakout of contract liability balances (in thousands):
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Schedule of estimated revenue expected to be recognized in the future | The following table (in thousands) includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period.
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Common Stock (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of repurchase activity | The following table summarizes our repurchase activity under our share repurchase programs for the three and nine months ended September 25, 2022 and September 26, 2021:
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Earnings (Loss) Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of basic and diluted earnings per common share | The calculations of basic and diluted earnings per common share are as follows:
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Debt (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 25, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt, net | Long-term debt, net, consists of the following (in thousands):
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Schedule of notional value of derivatives | As of September 25, 2022, we have the following interest rate swap agreements with a total notional value of $125.0 million:
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Schedule of location and amounts of derivatives in the financial statements | The following table provides information on the location and amounts of our swaps in the accompanying condensed consolidated financial statements (in thousands):
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Schedule of effect of derivatives on the financial statements | The effect of derivative instruments on the accompanying condensed consolidated financial statements is as follows (in thousands):
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment information | Our segment information is as follows:
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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):
|
Significant Accounting Policies - Narrative (Details) |
Mar. 28, 2022
restaurant
entity
|
Sep. 25, 2022
restaurant
|
Sep. 26, 2021
restaurant
|
---|---|---|---|
Related Party Transaction [Line Items] | |||
Percentage of domestic restaurants franchised | 85.00% | ||
Number of joint ventures divested | entity | 1 | ||
Corporate Joint Venture | |||
Related Party Transaction [Line Items] | |||
Number of restaurants | 98 | 188 | |
Corporate Joint Venture | Disposal group, disposed of by sale, not discontinued operations | |||
Related Party Transaction [Line Items] | |||
Ownership percentage in divested joint venture | 51.00% | ||
Number of restaurants divested | 90 |
Significant Accounting Policies - Net Income Attributable to Joint Ventures (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Noncontrolling Interest [Line Items] | ||||
Net income attributable to the Company | $ 8,331 | $ 29,256 | $ 44,258 | $ 95,393 |
Corporate Joint Venture | ||||
Noncontrolling Interest [Line Items] | ||||
Papa John’s International, Inc. | 314 | 2,171 | 2,642 | 6,816 |
Noncontrolling interests | 133 | 1,285 | 1,363 | 4,021 |
Net income attributable to the Company | $ 447 | $ 3,456 | $ 4,005 | $ 10,837 |
Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands |
Sep. 25, 2022 |
Dec. 26, 2021 |
---|---|---|
Fair Value, Recurring | Level 1 | ||
Financial assets: | ||
Cash surrender value of life insurance policies | $ 28,488 | $ 41,904 |
Interest rate swaps | 0 | |
Financial liabilities: | ||
Interest rate swaps | 0 | |
Fair Value, Recurring | Level 2 | ||
Financial assets: | ||
Cash surrender value of life insurance policies | 0 | 0 |
Interest rate swaps | 1,355 | |
Financial liabilities: | ||
Interest rate swaps | 5,536 | |
Fair Value, Recurring | Level 3 | ||
Financial assets: | ||
Cash surrender value of life insurance policies | 0 | 0 |
Interest rate swaps | 0 | |
Financial liabilities: | ||
Interest rate swaps | 0 | |
Carrying Value | ||
Financial assets: | ||
Cash surrender value of life insurance policies | 28,488 | 41,904 |
Interest rate swaps | $ 1,355 | |
Financial liabilities: | ||
Interest rate swaps | $ 5,536 |
Significant Accounting Policies - Fair Value Disclosure (Details) - Senior notes - USD ($) $ in Thousands |
Sep. 25, 2022 |
Dec. 26, 2021 |
Sep. 14, 2021 |
---|---|---|---|
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Interest rate | 3.875% | 3.875% | 3.875% |
Level 2 | Fair Value, Recurring | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
3.875% Senior Notes | $ 328,000 | $ 396,000 | |
Carrying Value | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
3.875% Senior Notes | $ 400,000 | $ 400,000 |
Significant Accounting Policies - Rollforward of the Allowance for Credit Losses for Accounts Receivable and Notes Receivable (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2022 |
Mar. 27, 2022 |
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Accounts Receivable | ||||
Current period provision for expected credit losses | $ 18,576 | $ (920) | ||
Russia | ||||
Notes Receivable | ||||
Non-cash reserves | $ 14,600 | |||
United Kingdom | ||||
Notes Receivable | ||||
Non-cash reserves | $ 3,200 | |||
Accounts Receivable | ||||
Accounts Receivable | ||||
Balance at beginning of period | 2,364 | 2,364 | ||
Current period provision for expected credit losses | 5,052 | |||
Write-offs charged against the allowance | (303) | |||
Recoveries collected | 0 | |||
Balance at end of period | 7,113 | 7,113 | ||
Notes Receivable | ||||
Notes Receivable | ||||
Balance at beginning of period | $ 1,500 | 1,500 | ||
Current period provision for expected credit losses | 13,524 | |||
Write-offs charged against the allowance | 0 | |||
Recoveries collected | (14) | |||
Balance at end of period | $ 15,010 | $ 15,010 |
Leases - Narrative (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2022
USD ($)
restaurant
lease
|
Sep. 26, 2021
USD ($)
|
Sep. 25, 2022
USD ($)
restaurant
lease
|
Sep. 26, 2021
USD ($)
|
|
Lessee, Lease, Description [Line Items] | ||||
Sublease income | $ 3.0 | $ 2.9 | $ 9.0 | $ 9.0 |
Number of domestic leases for which the Company is contingently liable | lease | 55 | 55 | ||
Estimated maximum amount of undiscounted payments in the event of nonpayment by primary lessees | $ 9.8 | $ 9.8 | ||
United Kingdom franchise-owned restaurants | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of units leased and subleased | restaurant | 444 | 444 | ||
Initial lease terms on franchised sites | 15 years | 15 years |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from finance leases | $ 754 | $ 864 |
Financing cash flows from finance leases | 3,854 | 3,358 |
Operating cash flows from operating leases | 26,771 | 28,830 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 5,980 | 9,190 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 43,639 | 52,462 |
Cash received from sublease income | $ 8,251 | 8,728 |
Corporate office in Atlanta, Georgia | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 21,800 |
Papa John's Marketing Fund, Inc. (Details) - USD ($) $ in Thousands |
Sep. 25, 2022 |
Dec. 26, 2021 |
---|---|---|
Current assets: | ||
Cash and cash equivalents | $ 36,618 | $ 70,610 |
Accounts receivable, net | 95,855 | 81,370 |
Income tax receivable | 10,533 | 9,386 |
Prepaid expenses and other current assets | 46,514 | 46,310 |
Total current assets | 239,524 | 255,009 |
Deferred income taxes | 4,969 | 5,156 |
Total assets | 829,748 | 885,704 |
Current liabilities: | ||
Accounts payable | 44,263 | 28,092 |
Income and other taxes payable | 18,171 | 19,996 |
Accrued expenses and other current liabilities | 152,893 | 190,116 |
Current deferred revenue | 19,925 | 21,700 |
Total current liabilities | 263,727 | 287,424 |
Deferred revenue | 22,987 | 13,846 |
Total liabilities | 1,087,161 | 1,052,664 |
Papa John's Marketing Fund Inc. | ||
Current assets: | ||
Cash and cash equivalents | 4,349 | 24,481 |
Accounts receivable, net | 23,677 | 14,150 |
Income tax receivable | 44 | 300 |
Prepaid expenses and other current assets | 2,512 | 1,718 |
Total current assets | 30,582 | 40,649 |
Deferred income taxes | 587 | 614 |
Total assets | 31,169 | 41,263 |
Current liabilities: | ||
Accounts payable | 24 | 140 |
Income and other taxes payable | 3 | 2 |
Accrued expenses and other current liabilities | 30,139 | 40,154 |
Current deferred revenue | 3,319 | 4,317 |
Total current liabilities | 33,485 | 44,613 |
Deferred revenue | 1,892 | 2,478 |
Total liabilities | $ 35,377 | $ 47,091 |
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
Dec. 26, 2021 |
|
Disaggregation of Revenue [Line Items] | |||||
Revenue recognized related to deferred revenue and customer loyalty program | $ 8,000 | $ 9,200 | $ 25,600 | $ 27,300 | |
Contract Liabilities | |||||
Beginning balance | 35,546 | ||||
Ending balance | 42,912 | 42,912 | |||
Change | 7,366 | ||||
Contract assets | 5,100 | 5,100 | $ 5,800 | ||
Amortization expense related to contract assets | 800 | 2,700 | |||
Franchise fees and unredeemed gift card liabilities | |||||
Contract Liabilities | |||||
Beginning balance | 20,410 | ||||
Ending balance | 29,469 | 29,469 | |||
Change | 9,059 | ||||
Customer loyalty program obligations | |||||
Contract Liabilities | |||||
Beginning balance | 15,136 | ||||
Ending balance | $ 13,443 | 13,443 | |||
Change | $ (1,693) |
Revenue Recognition - Transaction Price Allocated to Remaining Performance Obligations (Details) - USD ($) $ in Thousands |
Sep. 25, 2022 |
Dec. 26, 2021 |
---|---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract liabilities | $ 42,912 | $ 35,546 |
Franchise fees | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 21,156 | |
Franchise fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-26 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 3,135 | |
Remaining performance obligation period | 1 year | |
Franchise fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-09-25 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 2,945 | |
Remaining performance obligation period | 1 year | |
Franchise fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-30 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 2,768 | |
Remaining performance obligation period | 1 year | |
Franchise fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-09-29 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 2,552 | |
Remaining performance obligation period | 1 year | |
Franchise fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-09-28 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 2,253 | |
Remaining performance obligation period | 1 year | |
Franchise fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-09-27 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 7,503 | |
Remaining performance obligation period | ||
Area development fees | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract liabilities | $ 3,100 | |
Gift Card | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract liabilities | $ 5,200 |
Common Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Nov. 25, 2022 |
Oct. 27, 2022 |
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
Dec. 26, 2021 |
Oct. 28, 2021 |
Nov. 04, 2020 |
|
Subsequent Event [Line Items] | |||||||||
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | ||||||
Preferred stock issued (in shares) | 0 | 0 | 0 | ||||||
Preferred stock outstanding (in shares) | 0 | 0 | 0 | ||||||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||||
Common stock outstanding (in shares) | 35,100,000 | 35,100,000 | 35,800,000 | ||||||
Stock repurchase program, remaining authorized amount | $ 329,800 | $ 51,743 | $ 329,800 | $ 51,743 | |||||
Dividends recorded | $ 39,900 | ||||||||
Dividends recorded (in dollars per share) | $ 1.12 | $ 1.12 | |||||||
Dividends paid | $ 39,949 | 27,640 | |||||||
Dividends declared | $ 14,849 | $ 12,797 | $ 39,949 | $ 27,640 | |||||
Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends recorded (in dollars per share) | $ 0.42 | ||||||||
Dividends declared | $ 14,900 | ||||||||
Subsequent event | Forecast | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends paid | $ 14,900 | ||||||||
Common stock repurchase program | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 425,000 | $ 75,000 |
Common Stock - Repurchase Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Equity [Abstract] | ||||
Total Number of Shares Purchased (in shares) | 229 | 104 | 982 | 187 |
Average price paid per share (in dollars per share) | $ 85.15 | $ 119.47 | $ 96.71 | $ 110.00 |
Aggregate Cost of Shares Purchased | $ 19,529 | $ 12,367 | $ 95,000 | $ 20,555 |
Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | $ 329,800 | $ 51,743 | $ 329,800 | $ 51,743 |
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Basic earnings (loss) per common share (in thousands, except per share data) | ||||
Net income attributable to the Company | $ 8,331 | $ 29,256 | $ 44,258 | $ 95,393 |
Dividends on redemption of Series B Convertible Preferred Stock | 0 | 0 | 0 | (109,852) |
Dividends paid to participating securities | (86) | (137) | (228) | (5,964) |
Net income attributable to participating securities | 0 | (158) | (34) | 0 |
Net income (loss) attributable to common shareholders | $ 8,245 | $ 28,961 | $ 43,996 | $ (20,423) |
Basic weighted average common shares outstanding (in shares) | 35,259,000 | 36,387,000 | 35,602,000 | 34,619,000 |
Basic earnings (loss) per common share (in dollars per share) | $ 0.23 | $ 0.80 | $ 1.23 | $ (0.59) |
Diluted earnings (loss) per common share (in thousands, except per share data) | ||||
Net income (loss) attributable to common shareholders | $ 8,245 | $ 28,961 | $ 43,996 | $ (20,423) |
Weighted average common shares outstanding (in shares) | 35,259,000 | 36,387,000 | 35,602,000 | 34,619,000 |
Dilutive effect of outstanding equity awards (in shares) | 189,000 | 332,000 | 238,000 | 0 |
Diluted weighted average common shares outstanding (in shares) | 35,448,000 | 36,719,000 | 35,840,000 | 34,619,000 |
Diluted earnings (loss) per common share (in dollars per share) | $ 0.23 | $ 0.79 | $ 1.22 | $ (0.59) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 58,000 | 0 | 47,000 | 0 |
Debt - Summary of Long Term Debt (Details) - USD ($) $ in Thousands |
Sep. 25, 2022 |
Dec. 26, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Outstanding debt | $ 557,000 | $ 490,000 |
Unamortized debt issuance costs | (8,247) | (9,270) |
Total long-term debt, net | 548,753 | 480,730 |
Revolving facilities | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 157,000 | 90,000 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 400,000 | $ 400,000 |
Debt - Narrative (Details) |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 14, 2021
USD ($)
qtr
|
Sep. 25, 2022
USD ($)
|
Sep. 26, 2021
USD ($)
|
Sep. 25, 2022
USD ($)
|
Sep. 26, 2021
USD ($)
|
Dec. 26, 2021
USD ($)
|
Sep. 30, 2015
USD ($)
|
|
Debt Instrument [Line Items] | |||||||
Outstanding debt | $ 557,000,000 | $ 557,000,000 | $ 490,000,000 | ||||
Interest paid, including payments made or received under the swaps | $ 9,600,000 | $ 4,100,000 | $ 22,200,000 | $ 11,100,000 | |||
Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 400,000,000 | ||||||
Interest rate | 3.875% | 3.875% | 3.875% | 3.875% | |||
Outstanding debt | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||
Senior notes | Redemption up to 40% at any time prior to September 15, 2024 with net cash proceeds from certain equity offerings | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 103.875% | ||||||
Senior notes | Redemption at any time prior to September 15, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 100.00% | ||||||
Senior notes | Minimum | Redemption at any time on or after September 15, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 0.97% | ||||||
Senior notes | Maximum | Redemption at any time on or after September 15, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 1.94% | ||||||
Senior notes | Maximum | Redemption up to 40% at any time prior to September 15, 2024 with net cash proceeds from certain equity offerings | |||||||
Debt Instrument [Line Items] | |||||||
Redemption percentage | 0.40 | ||||||
PJI Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | ||||||
Line of credit facility, remaining borrowing capacity | 443,000,000.0 | 443,000,000.0 | |||||
Line of credit facility, maximum borrowing capacity in foreign currencies | 50,000,000 | ||||||
Line of credit facility, additional increase to borrowing capacity | $ 500,000,000 | ||||||
Number of quarters in interest margin period | qtr | 4 | ||||||
PJI Revolving Facility | Federal funds rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest margin rate on debt | 0.50% | ||||||
PJI Revolving Facility | London Interbank Offered Rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest margin rate on debt | 1.00% | ||||||
PJI Revolving Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of commitment fee on unused credit facility | 0.18% | ||||||
PJI Revolving Facility | Minimum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest margin rate on debt | 1.25% | ||||||
PJI Revolving Facility | Minimum | Base rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest margin rate on debt | 0.25% | ||||||
PJI Revolving Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of commitment fee on unused credit facility | 0.30% | ||||||
PJI Revolving Facility | Maximum | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Interest margin rate on debt | 2.00% | ||||||
PJI Revolving Facility | Maximum | Base rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest margin rate on debt | 1.00% | ||||||
Swingline loans | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | ||||||
Amendment to Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest coverage ratio | 2.00 | ||||||
Amendment to Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Leverage Ratio | 5.25 | ||||||
Increase to Leverage Ratio | 0.50 | ||||||
PJMF Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | ||||||
Outstanding debt | $ 0 | $ 0 | $ 0 | ||||
PJMF Revolving Facility | SOFR | |||||||
Debt Instrument [Line Items] | |||||||
Interest margin rate on debt | 1.60% | ||||||
Letter of credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 80,000,000 |
Debt - Notional Amounts of Derivatives (Details) - Designated as hedging instrument $ in Millions |
Sep. 25, 2022
USD ($)
|
---|---|
Interest Rate Swap | |
Derivative [Line Items] | |
Notional value | $ 125.0 |
April 30, 2018 through April 30, 2023, 2.33% | |
Derivative [Line Items] | |
Notional value | $ 55.0 |
Fixed Rates | 2.33% |
April 30, 2018 through April 30, 2023, 2.36% | |
Derivative [Line Items] | |
Notional value | $ 35.0 |
Fixed Rates | 2.36% |
April 30, 2018 through April 30, 2023, 2.34% | |
Derivative [Line Items] | |
Notional value | $ 35.0 |
Fixed Rates | 2.34% |
Debt - Location and Amount of Derivatives in the Financial Statements (Details) - Interest Rate Swap - USD ($) $ in Thousands |
Sep. 25, 2022 |
Dec. 26, 2021 |
---|---|---|
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 1,355 | $ 0 |
Other current and long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives liabilities | $ 0 | $ 5,536 |
Debt - Effect of Derivatives on the Financial Statements (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total Net Interest Expense on Condensed Consolidated Statements of Operations | $ (7,623) | $ (3,979) | $ (17,967) | $ (11,275) |
Interest Expense | Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in AOCL on Derivative | 901 | 1,182 | 3,664 | 3,963 |
Interest Expense | Interest Rate Swap | Reclassification out of Accumulated Other Comprehensive Loss | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) or Gain Reclassified from AOCL into Income | $ (1,650) | $ (1,644) | $ (1,850) | $ (5,084) |
Commitments and Contingencies (Details) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2022
USD ($)
|
Apr. 14, 2022
USD ($)
|
Sep. 25, 2022
USD ($)
|
Oct. 29, 2018
employee
|
|
Settled litigation | Papa Johns Employee and Franchise Employee Antitrust Litigation | ||||
Loss Contingencies [Line Items] | ||||
Settlement amount | $ 5.0 | |||
Pending litigation | Durling et al v. Papa John's International, Inc. | ||||
Loss Contingencies [Line Items] | ||||
Number of employees who opted into the class action | employee | 9,571 | |||
Exposure from settlement recorded | $ 10.0 | |||
Pending litigation | Durling et al v. Papa John's International, Inc. | Maximum | Subsequent event | ||||
Loss Contingencies [Line Items] | ||||
Settlement amount | $ 20.0 |
Divestitures (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 28, 2022
USD ($)
restaurant
|
Jun. 26, 2022
USD ($)
|
Mar. 27, 2022
USD ($)
|
|
Assets Held for Sale | |||
Impairment of franchise rights | $ 2.8 | ||
Disposal group, disposed of by sale, not discontinued operations | |||
Assets Held for Sale | |||
Net sale proceeds | $ 14.0 | ||
Non-cash charge | $ 8.4 | ||
Noncontrolling interest | 4.2 | ||
Unearned royalty stream | $ 12.2 | ||
unearned royalty stream recognition period | 10 years | ||
Disposal group, disposed of by sale, not discontinued operations | Corporate Joint Venture | |||
Assets Held for Sale | |||
Ownership percentage in divested joint venture | 51.00% | ||
Number of restaurants divested | restaurant | 90 |
Segment Information - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 25, 2022
segment
entity
| |
Revenue, Major Customer [Line Items] | |
Number of reportable segments | segment | 4 |
Sales | |
Revenue, Major Customer [Line Items] | |
Concentration risk, number | entity | 0 |
Segment Information - Schedule of Segment Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 28, 2022
restaurant
|
Sep. 25, 2022
USD ($)
|
Sep. 26, 2021
USD ($)
|
Sep. 25, 2022
USD ($)
|
Sep. 26, 2021
USD ($)
|
Dec. 26, 2021
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||||
Total revenues | $ 510,512 | $ 512,782 | $ 1,575,869 | $ 1,539,536 | ||
Total operating income | 19,461 | 38,577 | 72,800 | 130,076 | ||
Accumulated depreciation and amortization | (535,724) | (535,724) | ||||
Total property and equipment, net | 230,894 | 230,894 | $ 223,856 | |||
Refranchising loss | 8,400 | |||||
Non-cash reserves | 905 | 0 | 12,065 | 0 | ||
Corporate Joint Venture | Disposal group, disposed of by sale, not discontinued operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of restaurants divested | restaurant | 90 | |||||
Domestic Company-owned restaurants | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 166,050 | 191,584 | 536,226 | 584,942 | ||
North America franchising | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 33,712 | 31,933 | 102,897 | 97,123 | ||
North America commissaries | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 216,115 | 189,224 | 645,177 | 560,743 | ||
International | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 30,735 | 38,408 | 97,310 | 110,629 | ||
All others | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 63,900 | 61,633 | 194,259 | 186,099 | ||
Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 510,512 | 512,782 | 1,575,869 | 1,539,536 | ||
Operating segments | Domestic Company-owned restaurants | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 166,050 | 191,584 | 536,226 | 584,942 | ||
Total operating income | 3,667 | 9,480 | 11,579 | 40,165 | ||
Property and equipment, gross | 229,480 | 229,480 | ||||
Operating segments | North America franchising | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 33,712 | 31,933 | 102,897 | 97,123 | ||
Total operating income | 31,464 | 29,830 | 96,225 | 90,791 | ||
Operating segments | North America commissaries | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 216,115 | 189,224 | 645,177 | 560,743 | ||
Total operating income | 8,425 | 9,598 | 28,717 | 29,089 | ||
Property and equipment, gross | 153,604 | 153,604 | ||||
Operating segments | International | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 37,707 | 46,880 | 119,696 | 135,761 | ||
Total operating income | 1,136 | 9,618 | 12,897 | 26,665 | ||
Property and equipment, gross | 14,601 | 14,601 | ||||
Operating segments | International | United Kingdom | ||||||
Segment Reporting Information [Line Items] | ||||||
Accounts Receivable And Notes Receivable, Credit Loss Expense (Reversal) And Operating Lease, Impairment Loss | 4,100 | |||||
Operating segments | International | Accounts Receivable | ||||||
Segment Reporting Information [Line Items] | ||||||
Non-cash reserves | 3,500 | |||||
Operating segments | All others | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | 56,928 | 53,161 | 171,873 | 160,967 | ||
Total operating income | 2,037 | 3,848 | 7,943 | 14,860 | ||
Property and equipment, gross | 122,927 | 122,927 | ||||
Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | (67,888) | (73,013) | (216,518) | (218,703) | ||
Total operating income | 416 | (639) | (423) | (557) | ||
Eliminations | North America franchising | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | (996) | (1,037) | (3,097) | (3,138) | ||
Eliminations | North America commissaries | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | (51,330) | (53,454) | (162,591) | (158,952) | ||
Eliminations | All others | ||||||
Segment Reporting Information [Line Items] | ||||||
Total revenues | (15,562) | (18,522) | (50,830) | (56,613) | ||
Unallocated corporate expenses | ||||||
Segment Reporting Information [Line Items] | ||||||
Total operating income | (27,684) | (23,158) | (84,138) | (70,937) | ||
Property and equipment, gross | 246,006 | 246,006 | ||||
Legal settlement expense | $ 10,000 | 15,000 | ||||
Reorganization costs | $ 2,200 | $ 9,400 | ||||
Advisory Fees and Severance Costs | 1,500 | |||||
Unallocated corporate expenses | Notes Receivable | ||||||
Segment Reporting Information [Line Items] | ||||||
Non-cash reserves | $ 13,900 |
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2022 |
Sep. 26, 2021 |
Sep. 25, 2022 |
Sep. 26, 2021 |
|
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 510,512 | $ 512,782 | $ 1,575,869 | $ 1,539,536 |
Domestic Company-owned restaurants | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 166,050 | 191,584 | 536,226 | 584,942 |
North America franchising | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 33,712 | 31,933 | 102,897 | 97,123 |
North America commissaries | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 216,115 | 189,224 | 645,177 | 560,743 |
International | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 30,735 | 38,408 | 97,310 | 110,629 |
International | International other revenue | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | (6,972) | (8,472) | (22,386) | (25,132) |
All others | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 63,900 | 61,633 | 194,259 | 186,099 |
All others | International other revenue | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 6,972 | 8,472 | 22,386 | 25,132 |
Operating segments | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 510,512 | 512,782 | 1,575,869 | 1,539,536 |
Operating segments | Company-owned restaurant sales | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 166,050 | 191,584 | 536,226 | 584,942 |
Operating segments | Franchise royalties and fees | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 46,327 | 47,001 | 143,091 | 139,657 |
Operating segments | Commissary sales | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 286,561 | 267,055 | 867,981 | 790,928 |
Operating segments | Other revenues | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 79,462 | 80,155 | 245,089 | 242,712 |
Operating segments | Domestic Company-owned restaurants | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 166,050 | 191,584 | 536,226 | 584,942 |
Operating segments | Domestic Company-owned restaurants | Company-owned restaurant sales | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 166,050 | 191,584 | 536,226 | 584,942 |
Operating segments | North America franchising | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 33,712 | 31,933 | 102,897 | 97,123 |
Operating segments | North America franchising | Franchise royalties and fees | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 34,708 | 32,970 | 105,994 | 100,261 |
Operating segments | North America commissaries | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 216,115 | 189,224 | 645,177 | 560,743 |
Operating segments | North America commissaries | Commissary sales | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 267,445 | 242,678 | 807,768 | 719,695 |
Operating segments | International | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 37,707 | 46,880 | 119,696 | 135,761 |
Operating segments | International | Franchise royalties and fees | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 11,619 | 14,031 | 37,097 | 39,396 |
Operating segments | International | Commissary sales | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 19,116 | 24,377 | 60,213 | 71,233 |
Operating segments | International | Other revenues | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 6,972 | 8,472 | 22,386 | 25,132 |
Operating segments | All others | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 56,928 | 53,161 | 171,873 | 160,967 |
Operating segments | All others | Other revenues | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 72,490 | 71,683 | 222,703 | 217,580 |
Eliminations | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | (67,888) | (73,013) | (216,518) | (218,703) |
Eliminations | North America franchising | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | (996) | (1,037) | (3,097) | (3,138) |
Eliminations | North America commissaries | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | (51,330) | (53,454) | (162,591) | (158,952) |
Eliminations | All others | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ (15,562) | $ (18,522) | $ (50,830) | $ (56,613) |
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