| Financial Information by Operating Segment |
The tables below summarize the financial information, including revenues, significant segment expenses, Segment Income and capital expenditures, concerning the Company’s reportable segments for the first quarters ended March 23, 2025 and March 24, 2024. Intersegment revenues are comprised of sales of food and, to a lesser extent, other products, from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The Company adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) in the fourth quarter of 2024. The Company has included the relevant interim disclosures retrospectively for all periods presented in the condensed consolidated financial statements.
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Fiscal Quarter Ended March 23, 2025 |
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U.S.
Stores |
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Supply
Chain |
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International
Franchise |
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Total |
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U.S. Company-owned stores |
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$ |
91,598 |
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$ |
— |
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$ |
— |
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$ |
91,598 |
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U.S. franchise royalties and fees |
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151,000 |
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— |
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— |
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151,000 |
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Supply chain |
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— |
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697,910 |
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— |
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697,910 |
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Supply chain - intersegment revenues |
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— |
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(27,986 |
) |
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— |
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(27,986 |
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International franchise royalties and fees |
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— |
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— |
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75,559 |
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75,559 |
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U.S. franchise advertising |
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123,975 |
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— |
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— |
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123,975 |
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Segment revenues |
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$ |
366,573 |
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$ |
669,924 |
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$ |
75,559 |
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$ |
1,112,056 |
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Cost of sales - food |
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27,211 |
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471,616 |
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— |
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498,827 |
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Cost of sales - labor |
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29,181 |
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61,882 |
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— |
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91,063 |
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Cost of sales - other (1) |
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17,752 |
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49,347 |
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— |
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67,099 |
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U.S. franchise advertising |
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123,975 |
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— |
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— |
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123,975 |
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General and administrative (2) |
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36,636 |
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14,259 |
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11,780 |
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62,675 |
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Segment Income |
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$ |
131,818 |
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$ |
72,820 |
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$ |
63,779 |
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$ |
268,417 |
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Segment capital expenditures (3) |
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$ |
976 |
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$ |
5,510 |
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$ |
— |
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$ |
6,486 |
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Fiscal Quarter Ended March 24, 2024 |
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U.S.
Stores |
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Supply
Chain |
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International
Franchise |
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Total |
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U.S. Company-owned stores |
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$ |
92,649 |
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$ |
— |
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$ |
— |
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$ |
92,649 |
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U.S. franchise royalties and fees |
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150,518 |
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— |
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— |
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150,518 |
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Supply chain |
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— |
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686,642 |
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— |
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686,642 |
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Supply chain - intersegment revenues |
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— |
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(27,428 |
) |
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— |
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(27,428 |
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International franchise royalties and fees |
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— |
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— |
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71,966 |
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71,966 |
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U.S. franchise advertising |
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110,300 |
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— |
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— |
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110,300 |
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Segment revenues |
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$ |
353,467 |
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$ |
659,214 |
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$ |
71,966 |
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$ |
1,084,647 |
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Cost of sales - food |
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26,642 |
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469,937 |
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— |
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496,579 |
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Cost of sales - labor |
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29,674 |
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62,218 |
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— |
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91,892 |
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Cost of sales - other (1) |
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17,186 |
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46,016 |
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— |
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63,202 |
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U.S. franchise advertising |
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110,300 |
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— |
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— |
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110,300 |
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General and administrative (2) |
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33,557 |
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16,467 |
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12,634 |
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62,658 |
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Segment Income |
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$ |
136,108 |
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$ |
64,576 |
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$ |
59,332 |
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$ |
260,016 |
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Segment capital expenditures (3) |
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$ |
2,597 |
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$ |
2,775 |
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$ |
— |
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$ |
5,372 |
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(1) |
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Cost of sales - other, includes delivery, occupancy costs (including rent, telephone and utilities) and insurance expense. Depreciation and amortization is not included in the measurement of Segment Income. |
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(2) |
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General and administrative expense consists primarily of labor cost (including variable performance-based compensation expense), computer expenses, professional fees, travel and entertainment, rent, insurance and other. Depreciation and amortization, non-cash equity-based compensation expense and gains and losses from the sale of assets are not included in the measurement of Segment Income. |
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(3) |
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The Company also had $8.7 million and $14.2 million of other capital expenditures not attributable to the reportable segments primarily representing capitalized software in the first quarters of 2025 and 2024, respectively. |
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| Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes |
The following table reconciles total Segment Income to income before provision for income taxes:
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Fiscal Quarter Ended |
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March 23,
2025 |
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March 24,
2024 |
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Total Segment Income |
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$ |
268,417 |
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$ |
260,016 |
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General and administrative - other (1) |
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(27,313 |
) |
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(18,173 |
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Depreciation and amortization |
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(20,362 |
) |
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(19,869 |
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Non-cash equity-based compensation expense |
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(10,381 |
) |
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(11,338 |
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Loss on sale/disposal of assets |
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(266 |
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(90 |
) |
Refranchising loss |
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— |
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(133 |
) |
Income from operations |
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210,095 |
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210,413 |
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Other income (expense) |
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24,027 |
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(18,699 |
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Interest income |
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3,945 |
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3,739 |
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Interest expense |
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(45,585 |
) |
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(45,846 |
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Income before provision for income taxes |
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$ |
192,482 |
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$ |
149,607 |
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(1) |
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Represents corporate administrative costs that have not been allocated to a reportable segment including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. |
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