Segment Information (Tables)

9 Months Ended

Sep. 25, 2022

Our segment information is as follows:


	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	$	166,050	$	191,584	$	536,226	$	584,942
North America franchising	33,712		31,933		102,897		97,123
North America commissaries	216,115		189,224		645,177		560,743
International	37,707		46,880		119,696		135,761
All others	56,928		53,161		171,873		160,967
Total revenues	$	510,512	$	512,782	$	1,575,869	$	1,539,536

Intersegment revenues:
North America franchising	$	996	$	1,037	$	3,097	$	3,138
North America commissaries	51,330		53,454		162,591		158,952
All others	15,562		18,522		50,830		56,613
Total intersegment revenues	$	67,888	$	73,013	$	216,518	$	218,703

Operating income:
Domestic Company-owned restaurants(a)	$	3,667	$	9,480	$	11,579	$	40,165
North America franchising	31,464		29,830		96,225		90,791
North America commissaries	8,425		9,598		28,717		29,089
International(b)	1,136		9,618		12,897		26,665
All others	2,037		3,848		7,943		14,860
Unallocated corporate expenses(c)	(27,684)		(23,158)		(84,138)		(70,937)
Elimination of intersegment (profits) losses	416		(639)		(423)		(557)
Total operating income	$	19,461	$	38,577	$	72,800	$	130,076

Property and equipment, net:
Domestic Company-owned restaurants	$	229,480
North America commissaries	153,604
International	14,601
All others	122,927
Unallocated corporate assets	246,006
Accumulated depreciation and amortization	(535,724)
Total property and equipment, net	$	230,894


(a)			Includes a one-time, non-cash charge of $8.4 million associated with the refranchising of the Company’s ownership interest in a 90-restaurant joint venture, recorded as Refranchising and impairment loss for the nine months ended September 25, 2022. See Note 10 for additional information.


(b)			The three months ended September 25, 2022 includes a charge of $4.1 million related to the reserve of certain accounts and notes receivable and operating lease right-of-use assets impairment associated with the termination of a significant franchisee in the United Kingdom. The nine months ended September 25, 2022 also includes $3.5 million of one-time, non-cash reserves for certain accounts receivable and impairments of reacquired franchise rights. See Notes 2 and 10 for additional information.


(c)			Unallocated corporate expenses includes $10.0 million for certain legal settlements for the three months ended September 25, 2022. For the nine months ended September 25, 2022, Unallocated corporate expenses includes $13.9 million of one-time, non-cash reserves of certain notes receivable, $15.0 million for certain legal settlements (see Note 9 for more information), and $1.5 million of advisory fees and severance costs associated with the transition of certain executives. Unallocated corporate expense includes $2.2 million and $9.4 million of reorganization costs for the three and nine months ended September 26, 2021. See Notes 2 and 9 for additional information.

Schedule of revenue disaggregated by major product line

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


	Reportable Segments
	Three Months Ended 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	$	166,050	$	—	$	—	$	—	$	—	$	166,050
Franchise royalties and fees	—		34,708		—		11,619		—		46,327
Commissary sales	—		—		267,445		19,116		—		286,561
Other revenues	—		—		—		6,972		72,490		79,462
Eliminations	—		(996)		(51,330)		—		(15,562)		(67,888)
Total segment revenues	$	166,050	$	33,712	$	216,115	$	37,707	$	56,928	$	510,512
International other revenues(a)	—		—		—		(6,972)		6,972		—
Total revenues	$	166,050	$	33,712	$	216,115	$	30,735	$	63,900	$	510,512

	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	$	191,584	$	—	$	—	$	—	$	—	$	191,584
Franchise royalties and fees	—		32,970		—		14,031		—		47,001
Commissary sales	—		—		242,678		24,377		—		267,055
Other revenues	—		—		—		8,472		71,683		80,155
Eliminations	—		(1,037)		(53,454)		—		(18,522)		(73,013)
Total segment revenues	$	191,584	$	31,933	$	189,224	$	46,880	$	53,161	$	512,782
International other revenues(a)	—		—		—		(8,472)		8,472		—
Total revenues	$	191,584	$	31,933	$	189,224	$	38,408	$	61,633	$	512,782

	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	$	536,226	$	—	$	—	$	—	$	—	$	536,226
Franchise royalties and fees	—		105,994		—		37,097		—		143,091
Commissary sales	—		—		807,768		60,213		—		867,981
Other revenues	—		—		—		22,386		222,703		245,089
Eliminations	—		(3,097)		(162,591)		—		(50,830)		(216,518)
Total segment revenues	$	536,226	$	102,897	$	645,177	$	119,696	$	171,873	$	1,575,869
International other revenues(a)	—		—		—		(22,386)		22,386		—
Total revenues	$	536,226	$	102,897	$	645,177	$	97,310	$	194,259	$	1,575,869



	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	$	584,942	$	—	$	—	$	—	$	—	$	584,942
Franchise royalties and fees	—		100,261		—		39,396		—		139,657
Commissary sales	—		—		719,695		71,233		—		790,928
Other revenues	—		—		—		25,132		217,580		242,712
Eliminations	—		(3,138)		(158,952)		—		(56,613)		(218,703)
Total segment revenues	$	584,942	$	97,123	$	560,743	$	135,761	$	160,967	$	1,539,536
International other revenues(a)	—		—		—		(25,132)		25,132		—
Total revenues	$	584,942	$	97,123	$	560,743	$	110,629	$	186,099	$	1,539,536


(a)			Other revenues as reported in the Condensed Consolidated Statements of Operations include $7.0 million and $22.4 million of revenue for the three and nine months ended September 25, 2022, respectively, and $8.5 million and $25.1 million for the three and nine months ended September 26, 2021, respectively, that are part of the international reporting segment. These amounts include marketing fund contributions and sublease rental income from international franchisees in the United Kingdom that provide no significant contribution to operating income but must be reported on a gross basis under accounting requirements. The related expenses for these Other revenues are reported in Other expenses in the Condensed Consolidated Statements of Operations.