| Schedule of segment information |
The following tables present our segment information. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine 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 franchising | | 35,041 | | 33,712 | | 105,824 | | 102,897 | | North America commissaries | | 204,887 | | 216,115 | | 624,433 | | 645,177 | | International | | 48,481 | | 37,707 | | 128,539 | | 119,696 | | All others | | 57,208 | | 56,928 | | 172,754 | | 171,873 | | 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 commissaries | | 51,237 | | 51,330 | | 154,640 | | 162,591 | | | | | | | | | | | All others | | 16,180 | | 15,562 | | 49,363 | | 50,830 | | 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 franchising | | 32,234 | | 31,464 | | 97,745 | | 96,225 | | North America commissaries | | 10,691 | | 8,425 | | 31,818 | | 28,717 | International (b) | | 2,270 | | 1,136 | | 13,265 | | 12,897 | | All others | | 2,379 | | 2,037 | | 6,879 | | 7,943 | 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 commissaries | | 157,056 | | | | | | | | International | | 29,403 | | | | | | | | All others | | 142,905 | | | | | | | | Unallocated corporate assets | | 251,104 | | | | | | | | Accumulated depreciation and amortization | | (561,592) | | | | | | | | | Total property and equipment, net | | $ | 268,087 | | | | | | |
___________________________________(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.
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| 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 24, 2023 | | Major Products/Services Lines | | Domestic Company-owned restaurants | | North America franchising | | North America commissaries | | International | | All others | | Total | | 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 revenues | | 177,195 | | | 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 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 | | | Nine Months Ended September 24, 2023 | | Major Products/Services Lines | | Domestic Company-owned restaurants | | North America franchising | | North America commissaries | | International | | All others | | Total | | 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 revenues | | 532,841 | | | 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 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 | |
___________________________________(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.
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