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Segment Information
 9 Months Ended
Sep. 24, 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 consists of the operations of all Company-owned restaurants located in the UK, as well as 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 EndedNine Months Ended
(In thousands)September 24,
2023		September 25,
2022		September 24,
2023		September 25,
2022
Revenues:
Domestic Company-owned restaurants$177,195$166,050$532,841$536,226
North America franchising35,04133,712105,824102,897
North America commissaries204,887216,115624,433645,177
International48,48137,707128,539119,696
All others57,20856,928172,754171,873
Total revenues $522,812$510,512$1,564,391$1,575,869
Intersegment revenues:
North America franchising$1,040$996$3,117$3,097
North America commissaries51,23751,330154,640162,591
All others16,18015,56249,36350,830
Total intersegment revenues$68,457$67,888$207,120$216,518
Operating income:
Domestic Company-owned restaurants (a)
$6,147$3,667$19,438$11,579
North America franchising32,23431,46497,74596,225
North America commissaries10,6918,42531,81828,717
International (b)
2,2701,13613,26512,897
All others2,3792,0376,8797,943
Unallocated corporate expenses (c)
(20,792)(27,684)(63,859)(84,138)
Elimination of intersegment (profits) losses(1,061)416(710)(423)
Total operating income$31,868$19,461$104,576$72,800
Property and equipment, net:
Domestic Company-owned restaurants$249,211
North America commissaries157,056
International29,403
All others142,905
Unallocated corporate assets251,104
Accumulated depreciation and amortization(561,592)
Total property and equipment, net$268,087
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(a)    The nine months ended September 25, 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 and nine months ended September 24, 2023 includes $1.2 million and $2.5 million of costs associated with repositioning the UK portfolio as well as transaction costs related to the acquisition of stores from franchisees. The three and nine 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 franchise in the United Kingdom. The three and 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. Significant Accounting Policies”, “10. Divestitures” and “12. Acquisitions” for additional information.
(c)    The nine months ended September 24, 2023 includes $2.0 million of severance and related costs associated with the transition of certain executives. The three and nine months ended September 24, 2023 includes $0.6 million for certain legal settlements. Unallocated corporate expenses includes $10.0 million for certain legal settlements for the three months ended September 25, 2022. The nine months ended September 25, 2022 includes $13.9 million of one-time, non-cash reserves of certain notes receivable, $15.0 million for certain legal settlements, and $1.5 million of advisory fees and severance costs associated with the transition of certain
executives. 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 September 24, 2023
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$177,195 $— $— $14,013 $— $191,208 
Franchise royalties and fees— 36,081 — 12,219 — 48,300 
Commissary sales— — 256,124 16,695 — 272,819 
Other revenues— — — 5,554 73,388 78,942 
Eliminations— (1,040)(51,237)— (16,180)(68,457)
Total segment revenues177,195 35,041 204,887 48,481 57,208 522,812 
International other revenues (a)
— — — (5,554)5,554 — 
Total revenues$177,195 $35,041 $204,887 $42,927 $62,762 $522,812 
Reportable Segments
Three Months Ended September 25, 2022
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
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 revenues166,050 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
Nine Months Ended September 24, 2023
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$532,841 $— $— $17,031 $— $549,872 
Franchise royalties and fees— 108,941 — 36,906 — 145,847 
Commissary sales— — 779,073 55,061 — 834,134 
Other revenues— — — 19,541 222,117 241,658 
Eliminations— (3,117)(154,640)— (49,363)(207,120)
Total segment revenues532,841 105,824 624,433 128,539 172,754 1,564,391 
International other revenues (a)
— — — (19,541)19,541 — 
Total revenues$532,841 $105,824 $624,433 $108,998 $192,295 $1,564,391 
Reportable Segments
Nine Months Ended September 25, 2022
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
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 revenues536,226 102,897 645,177 119,696 171,873 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 
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(a)    Other revenues as reported in the Condensed Consolidated Statements of Operations include $5.6 million and $19.5 million of revenues for the three and nine months ended September 24, 2023, respectively, and $7.0 million and $22.4 million for the three and nine months ended September 25, 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.