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Segment Information
3 Months Ended
Mar. 31, 2024
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, and side items, including breadsticks, Papa Bites, cheesesticks, boneless chicken wings and bone-in chicken 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 Johns 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 31,
2024
March 26,
2023
Revenues:
Domestic Company-owned restaurants$176,224$179,866
North America franchising35,69736,072
North America commissaries203,287212,566
International46,67338,704
All others52,03559,841
Total revenues $513,916$527,049
Intersegment revenues:
North America franchising$1,049$1,052
North America commissaries49,26751,817
All others13,17216,835
Total intersegment revenues$63,488$69,704
Operating income:
Domestic Company-owned restaurants$10,359$6,650
North America franchising33,71133,400
North America commissaries12,33510,730
International (a)
(5,989)7,232
All others3,1983,157
Unallocated corporate expenses (b)
(19,642)(23,366)
Elimination of intersegment (profits) losses(254)(7)
Total operating income$33,718$37,796
Property and equipment, net:
Domestic Company-owned restaurants$263,832
North America commissaries162,491
International28,456
All others138,346
Unallocated corporate assets254,290
Accumulated depreciation and amortization(574,112)
Total property and equipment, net$273,303
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(a)    The three months ended March 31, 2024 includes $9.5 million of costs related to the International Transformation Plan. See “Note 9. Restructuring” for additional information.
(b)    The three months ended March 26, 2023 includes $1.4 million of severance and related costs associated with the transition of certain executives.
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 31, 2024
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$176,224 $— $— $15,027 $— $191,251 
Franchise royalties and fees— 36,746 — 11,456 — 48,202 
Commissary sales— — 252,554 14,225 — 266,779 
Other revenues— — — 5,965 65,207 71,172 
Eliminations— (1,049)(49,267)— (13,172)(63,488)
Total segment revenues176,224 35,697 203,287 46,673 52,035 513,916 
International other revenues (a)
— — — (5,965)5,965 — 
Total revenues$176,224 $35,697 $203,287 $40,708 $58,000 $513,916 
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 
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(a)    Other revenues as reported in the Condensed Consolidated Statements of Operations include $6.0 million and $7.2 million of revenues for the three months ended March 31, 2024 and March 26, 2023, 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 income before income taxes 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.