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Segment Information
 3 Months Ended
Mar. 26, 2023
Segment Reporting [Abstract]  
Segment Information
11. 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 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 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 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 International segment principally consists of distribution sales to franchised Papa John’s restaurants located in the UK 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. 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. 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.
The following tables present our segment information.
Three Months Ended
(In thousands)March 26,
2023		March 27,
2022
Revenues:
Domestic Company-owned restaurants$179,866$198,765
North America franchising36,07234,268
North America commissaries212,566209,679
International38,70442,707
All others59,84157,273
Total revenues $527,049$542,692
Intersegment revenues:
North America franchising$1,052$1,053
North America commissaries51,81758,507
All others16,83519,379
Total intersegment revenues$69,704$78,939
Operating income:
Domestic Company-owned restaurants (a)
$6,650$1,989
North America franchising33,40032,137
North America commissaries10,7309,334
International (b)
7,2324,455
All others3,1573,719
Unallocated corporate expenses (c)
(23,366)(37,111)
Elimination of intersegment (profits) losses(7)(88)
Total operating income$37,796$14,435
(In thousands)As of March 26, 2023
Property and equipment, net:
Domestic Company-owned restaurants$242,755
North America commissaries152,411
International17,118
All others135,467
Unallocated corporate assets257,368
Accumulated depreciation and amortization(551,975)
Total property and equipment, net$253,144
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(a)    The three months ended March 27, 2022 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. See “Note 10. Divestitures” for additional information.
(b)    The three months ended March 27, 2022 includes $3.5 million of one-time, non-cash reserves for certain accounts receivable and impairments of reacquired franchise rights. See “Notes 2. Significant Accounting Policies” and “10. Divestitures” for additional information.
(c)    The three months ended March 26, 2023 includes $1.4 million of severance and related costs associated with the transition of certain executives. For the three months ended March 27, 2022, Unallocated corporate expenses includes $13.9 million of one-time, non-cash reserves of certain notes receivable and $5.0 million for certain legal settlements. See “Notes 2. Significant Accounting Policies” and “9. Litigation, Commitments and Contingencies” for additional information.
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):
Reportable Segments
Three Months Ended March 26, 2023
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$179,866 $— $— $— $— $179,866 
Franchise royalties and fees— 37,124 — 12,491 — 49,615 
Commissary sales— — 264,383 18,972 — 283,355 
Other revenues— — — 7,241 76,676 83,917 
Eliminations— (1,052)(51,817)— (16,835)(69,704)
Total segment revenues179,866 36,072 212,566 38,704 59,841 527,049 
International other revenues (a)
— — — (7,241)7,241 — 
Total revenues$179,866 $36,072 $212,566 $31,463 $67,082 $527,049 
Reportable Segments
Three Months Ended March 27, 2022
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$198,765 $— $— $— $— $198,765 
Franchise royalties and fees— 35,321 — 13,435 — 48,756 
Commissary sales— — 268,186 21,182 — 289,368 
Other revenues— — — 8,090 76,652 84,742 
Eliminations— (1,053)(58,507)— (19,379)(78,939)
Total segment revenues198,765 34,268 209,679 42,707 57,273 542,692 
International other revenues (a)
— — — (8,090)8,090 — 
Total revenues$198,765 $34,268 $209,679 $34,617 $65,363 $542,692 
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(a)    Other revenues as reported in the Condensed Consolidated Statements of Operations include $7.2 million and $8.1 million of revenues for the three months ended March 26, 2023 and March 27, 2022, 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.