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Segment Information
 6 Months Ended
Jun. 30, 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 information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms, as well as franchise contributions to marketing funds.
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 EndedSix Months Ended
(In thousands)June 30,
2024		June 25,
2023		June 30,
2024		June 25,
2023
Revenues:
Domestic Company-owned restaurants$173,207$175,780$349,431$355,646
North America franchising34,40934,71170,10670,783
North America commissaries198,197206,980401,484419,546
International46,54741,35493,22080,058
All others55,53455,705107,569115,546
Total revenues $507,894$514,530$1,021,810$1,041,579
Intersegment revenues:
North America franchising$1,041$1,025$2,090$2,077
North America commissaries50,30351,58699,570103,403
International—869—869
All others13,77816,34826,95033,183
Total intersegment revenues$65,122$69,828$128,610$139,532
Operating income:
Domestic Company-owned restaurants (a)
$4,777$6,641$15,136$13,291
North America franchising32,40932,11166,12065,511
North America commissaries11,40310,39723,73821,127
International (b)
(2,665)3,763(8,654)10,995
All others2,1701,3435,3684,500
Unallocated corporate expenses (c)
(19,598)(19,701)(39,240)(43,067)
Elimination of intersegment (profits) losses(270)358(524)351
Total operating income$28,226$34,912$61,944$72,708
Property and equipment, net:
Domestic Company-owned restaurants$261,833
North America commissaries147,643
International25,034
All others137,676
Unallocated corporate assets245,337
Accumulated depreciation and amortization(551,830)
Total property and equipment, net$265,693
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(a)    The three and six months ended June 30, 2024 includes a $4.0 million non-cash impairment charge related to fixed and intangible assets related to certain Domestic restaurants.
(b)    The three and six months ended June 30, 2024 includes $6.1 million and $15.7 million, respectively, of costs related to the International Transformation Plan. See “Note 9. Restructuring” for additional information. The three and six months ended June 25, 2023 includes $1.3 million of costs associated with repositioning the UK portfolio as well as transaction costs related to the acquisition of stores from franchisees.
(c)    The three and six months ended June 25, 2023 includes $0.7 million and $2.0 million, respectively, 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 June 30, 2024
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$173,207 $— $— $11,433 $— $184,640 
Franchise royalties and fees— 35,450 — 12,143 — 47,593 
Commissary sales— — 248,500 16,125 — 264,625 
Other revenues— — — 6,846 69,312 76,158 
Eliminations— (1,041)(50,303)— (13,778)(65,122)
Total segment revenues173,207 34,409 198,197 46,547 55,534 507,894 
International other revenues (a)
— — — (6,846)6,846 — 
Total revenues$173,207 $34,409 $198,197 $39,701 $62,380 $507,894 
Reportable Segments
Three Months Ended June 25, 2023
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$175,780 $— $— $3,018 $— $178,798 
Franchise royalties and fees— 35,736 — 12,196 — 47,932 
Commissary sales— — 258,566 20,263 — 278,829 
Other revenues— — — 6,746 72,053 78,799 
Eliminations— (1,025)(51,586)(869)(16,348)(69,828)
Total segment revenues175,780 34,711 206,980 41,354 55,705 514,530 
International other revenues (a)
— — — (6,746)6,746 — 
Total revenues$175,780 $34,711 $206,980 $34,608 $62,451 $514,530 
Reportable Segments
Six Months Ended June 30, 2024
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$349,431 $— $— $26,460 $— $375,891 
Franchise royalties and fees— 72,196 — 23,599 — 95,795 
Commissary sales— — 501,054 30,350 — 531,404 
Other revenues— — — 12,811 134,519 147,330 
Eliminations— (2,090)(99,570)— (26,950)(128,610)
Total segment revenues349,431 70,106 401,484 93,220 107,569 1,021,810 
International other revenues (a)
— — — (12,811)12,811 — 
Total revenues$349,431 $70,106 $401,484 $80,409 $120,380 $1,021,810 
Reportable Segments
Six Months Ended June 25, 2023
Major Products/Services LinesDomestic Company-owned restaurantsNorth America franchisingNorth America commissariesInternationalAll othersTotal
Company-owned restaurant sales$355,646 $— $— $3,018 $— $358,664 
Franchise royalties and fees— 72,860 — 24,687 — 97,547 
Commissary sales— — 522,949 39,235 — 562,184 
Other revenues— — — 13,987 148,729 162,716 
Eliminations— (2,077)(103,403)(869)(33,183)(139,532)
Total segment revenues355,646 70,783 419,546 80,058 115,546 1,041,579 
International other revenues (a)
— — — (13,987)13,987 — 
Total revenues$355,646 $70,783 $419,546 $66,071 $129,533 $1,041,579 
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(a)    Other revenues as reported in the Condensed Consolidated Statements of Operations include $6.8 million and $12.8 million of revenues for the three and six months ended June 30, 2024, respectively, and $6.7 million and $14.0 million of revenues for the three and six months ended June 25, 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.