Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 19, 2022 | Jul. 14, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Central Index Key | 0001286681 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Document Period End Date | Jun. 19, 2022 | |
Entity Registrant Name | Domino’s Pizza, Inc. | |
Entity File Number | 001-32242 | |
Current Fiscal Year End Date | --01-01 | |
Entity Tax Identification Number | 38-2511577 | |
Entity Incorporation, State or Country Code | DE | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, Address Line One | 30 Frank Lloyd Wright Drive | |
Entity Address, City or Town | Ann Arbor | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48105 | |
City Area Code | 734 | |
Local Phone Number | 930-3030 | |
Trading Symbol | DPZ | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock | |
Entity Common Stock, Shares Outstanding | 35,885,105 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 19, 2022 | Jan. 02, 2022 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 114,353 | $ 148,160 | |
Restricted cash and cash equivalents | 158,215 | 180,579 | |
Accounts receivable, net | 274,957 | 255,327 | |
Inventories | 70,201 | 68,328 | |
Prepaid expenses and other | 45,645 | 27,242 | |
Advertising fund assets, restricted | 182,499 | 180,904 | |
Total current assets | 845,870 | 860,540 | |
Property, plant and equipment: | |||
Land and buildings | 108,245 | 108,372 | |
Leasehold and other improvements | 195,834 | 193,572 | |
Equipment | 322,079 | 312,772 | |
Construction in progress | 27,161 | 27,815 | |
Property, plant and equipment, Gross | 653,319 | 642,531 | |
Accumulated depreciation and amortization | (339,507) | (318,466) | |
Property, plant and equipment, net | 313,812 | 324,065 | |
Other assets: | |||
Operating lease right-of-use assets | 222,780 | 210,702 | |
Goodwill | 16,153 | 15,034 | |
Capitalized software, net | 103,137 | 95,558 | |
Investments | 125,840 | 125,840 | |
Other assets | 40,652 | 37,968 | |
Deferred income taxes | 2,386 | 2,109 | |
Total other assets | 510,948 | 487,211 | |
Total assets | 1,670,630 | 1,671,816 | |
Current liabilities: | |||
Current portion of long-term debt | 55,654 | 55,588 | |
Accounts payable | 99,465 | 91,547 | |
Operating lease liabilities | 41,682 | 37,155 | |
Insurance reserves | 32,157 | 32,588 | |
Dividends payable | 40,624 | 918 | |
Advertising fund liabilities | 175,069 | 173,737 | |
Other accrued liabilities | 130,798 | 199,208 | |
Total current liabilities | 575,449 | 590,741 | |
Long-term liabilities: | |||
Long-term debt, less current portion | 4,989,578 | 5,014,638 | |
Operating lease liabilities | 194,674 | 184,471 | |
Insurance reserves | 36,213 | 36,913 | |
Other accrued liabilities | 48,724 | 50,667 | |
Deferred income taxes | 6,301 | 3,922 | |
Total long-term liabilities | 5,275,490 | 5,290,611 | |
Stockholders' deficit | |||
Common stock | 359 | 361 | |
Additional paid-in capital | 3,589 | 840 | |
Retained deficit | (4,180,367) | (4,207,917) | |
Accumulated other comprehensive loss | (3,890) | (2,820) | |
Total stockholders' deficit | (4,180,309) | (4,209,536) | |
Total liabilities and stockholders' deficit | $ 1,670,630 | $ 1,671,816 | |
[1] The condensed consolidated balance sheet at January 2, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Revenues: | ||||
Revenue | $ 1,065,182 | $ 1,032,472 | $ 2,076,331 | $ 2,016,170 |
Cost of sales: | ||||
Cost of sales | 678,917 | 624,782 | 1,321,442 | 1,219,329 |
Operating margin | 386,265 | 407,690 | 754,889 | 796,841 |
General and administrative | 97,070 | 100,448 | 194,564 | 191,701 |
U.S. franchise advertising | 111,081 | 116,340 | 217,670 | 227,700 |
Income from operations | 178,114 | 190,902 | 342,655 | 377,440 |
Other Income | 0 | 0 | 0 | 2,500 |
Interest income | 219 | 68 | 268 | 90 |
Interest expense | (44,851) | (45,877) | (91,723) | (85,299) |
Income before provision for income taxes | 133,482 | 145,093 | 251,200 | 294,731 |
Provision for income taxes | 30,989 | 28,474 | 57,743 | 60,351 |
Net income | $ 102,493 | $ 116,619 | $ 193,457 | $ 234,380 |
Earnings per share: | ||||
Common stock - basic | $ 2.85 | $ 3.10 | $ 5.38 | $ 6.14 |
Common stock - diluted | $ 2.82 | $ 3.06 | $ 5.32 | $ 6.06 |
U.S. Stores [Member] | U.S. Company-owned stores [Member] | ||||
Revenues: | ||||
Revenue | $ 112,502 | $ 116,589 | $ 216,397 | $ 229,333 |
Cost of sales: | ||||
Cost of sales | 94,065 | 88,019 | 181,440 | 173,761 |
U.S. Stores [Member] | U.S. franchise stores [Member] | ||||
Revenues: | ||||
Revenue | 128,098 | 126,836 | 250,383 | 251,322 |
U.S. Stores [Member] | U.S. franchise advertising [Member] | ||||
Revenues: | ||||
Revenue | 111,081 | 116,340 | 217,670 | 227,700 |
Supply Chain [Member] | Supply Chain Center [Member] | ||||
Revenues: | ||||
Revenue | 646,586 | 602,962 | 1,256,133 | 1,171,300 |
Cost of sales: | ||||
Cost of sales | 584,852 | 536,763 | 1,140,002 | 1,045,568 |
International Franchise [Member] | International franchise royalties and fees [Member] | ||||
Revenues: | ||||
Revenue | $ 66,915 | $ 69,745 | $ 135,748 | $ 136,515 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 102,493 | $ 116,619 | $ 193,457 | $ 234,380 |
Currency translation adjustment | (1,684) | 230 | (1,070) | 416 |
Comprehensive income | $ 100,809 | $ 116,849 | $ 192,387 | $ 234,796 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | ||
Cash flows from operating activities: | |||||
Net income | $ 102,493 | $ 116,619 | $ 193,457 | $ 234,380 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 18,117 | 17,176 | 37,093 | 33,641 | |
Loss on sale/disposal of assets | 253 | 295 | 448 | 456 | |
Amortization of debt issuance costs | 2,631 | 4,438 | |||
Provision for deferred income taxes | 2,490 | 2,561 | |||
Non-cash equity-based compensation expense | 8,473 | 8,296 | 15,738 | 13,500 | |
Excess tax benefits from equity-based compensation | (174) | (4,264) | |||
Provision for losses on accounts and notes receivable | 2,326 | 296 | |||
Unrealized gain on investments | 0 | (2,500) | |||
Changes in operating assets and liabilities | (102,935) | (17,098) | |||
Changes in advertising fund assets and liabilities, restricted | 2,341 | 30,005 | |||
Net cash provided by operating activities | 153,415 | 295,415 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (32,664) | (33,163) | |||
Purchase of investments | 0 | (40,000) | |||
Purchases of franchise operations and other assets | (6,814) | 0 | |||
Other | (435) | 293 | |||
Net cash used in investing activities | (39,913) | (72,870) | |||
Cash flows from financing activities: | |||||
Proceeds from issuance of long-term debt | 0 | 1,850,000 | |||
Repayments of long-term debt and finance lease obligations | (27,528) | (882,547) | |||
Proceeds from exercise of stock options | 526 | 9,025 | |||
Purchases of common stock | (97,661) | (1,025,000) | |||
Tax payments for restricted stock upon vesting | (2,395) | (1,087) | |||
Payments of common stock dividends and equivalents | (39,662) | (36,432) | |||
Cash paid for financing costs | 0 | (14,938) | |||
Other | 0 | (244) | |||
Net cash used in financing activities | (166,720) | (101,223) | |||
Effect of exchange rate changes on cash | (635) | 302 | |||
Change in cash and cash equivalents, restricted cash and cash equivalents | (53,853) | 121,624 | |||
Cash and cash equivalents, beginning of period | [1] | 148,160 | |||
Restricted cash and cash equivalents, beginning of period | [1] | 180,579 | |||
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 161,741 | 115,872 | |||
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period | 490,480 | 502,146 | |||
Cash and cash equivalents, end of period | 114,353 | 292,095 | 114,353 | 292,095 | |
Restricted cash and cash equivalents, end of period | 158,215 | 184,695 | 158,215 | 184,695 | |
Cash and cash equivalents included in advertising fund assets, restricted, end of period | 164,059 | 146,980 | 164,059 | 146,980 | |
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period | $ 436,627 | $ 623,770 | $ 436,627 | $ 623,770 | |
[1] The condensed consolidated balance sheet at January 2, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 19, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, refer to the consolidated financial statements and footnotes for the fiscal year ended January 2, 2022 included in the Company’s 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 1, 2022 (the “2021 Form 10-K”). In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair statement have been included. Operating results for the fiscal quarter and two fiscal quarters ended June 19, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending January 1, 2023 . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 19, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The following tables summarize revenues and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Fiscal Quarters Ended June 19, 2022 and June 20, 2021 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2022 $ 351,681 $ 683,298 $ 66,915 $ ( 36,712 ) $ — $ 1,065,182 2021 359,765 635,592 69,745 ( 32,630 ) — 1,032,472 Segment Income 2022 $ 104,055 $ 53,633 $ 52,890 N/A $ ( 5,621 ) $ 204,957 2021 111,847 58,593 56,365 N/A ( 9,627 ) 217,178 Two Fiscal Quarters Ended June 19, 2022 and June 20, 2021 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2022 $ 684,450 $ 1,325,260 $ 135,748 $ ( 69,127 ) $ — $ 2,076,331 2021 708,355 1,234,769 136,515 ( 63,469 ) — 2,016,170 Segment Income 2022 $ 201,347 $ 99,982 $ 107,936 N/A $ ( 13,331 ) $ 395,934 2021 219,283 111,145 110,833 N/A ( 15,715 ) 425,546 The following table reconciles total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Total Segment Income $ 204,957 $ 217,178 $ 395,934 $ 425,546 Depreciation and amortization ( 18,117 ) ( 17,176 ) ( 37,093 ) ( 33,641 ) Loss on sale/disposal of assets ( 253 ) ( 295 ) ( 448 ) ( 456 ) Non-cash equity-based compensation expense ( 8,473 ) ( 8,296 ) ( 15,738 ) ( 13,500 ) Recapitalization-related expenses — ( 509 ) — ( 509 ) Income from operations 178,114 190,902 342,655 377,440 Other income — — — 2,500 Interest income 219 68 268 90 Interest expense ( 44,851 ) ( 45,877 ) ( 91,723 ) ( 85,299 ) Income before provision for income taxes $ 133,482 $ 145,093 $ 251,200 $ 294,731 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 19, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Net income available to common stockholders - basic and diluted $ 102,493 $ 116,619 $ 193,457 $ 234,380 Basic weighted average number of shares 35,915,102 37,590,369 35,957,999 38,145,297 Earnings per share – basic $ 2.85 $ 3.10 $ 5.38 $ 6.14 Diluted weighted average number of shares 36,296,277 38,122,515 36,368,297 38,665,325 Earnings per share – diluted $ 2.82 $ 3.06 $ 5.32 $ 6.06 The denominators used in calculating diluted earnings per share for common stock for the fiscal quarters and two fiscal quarters each ended June 19, 2022 and June 20, 2021 do not include the following because the effect of including these shares would be anti-dilutive or because the performance condition for these awards had not yet been met: Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Anti-dilutive shares underlying stock-based awards Stock options 120,540 84,955 120,540 92,689 Restricted stock awards and units 67,677 — 346 — Performance condition not met Restricted stock awards and units 42,710 64,110 42,710 64,110 |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 19, 2022 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Deficit | 4. Stockholders’ Deficit The following table summarizes the changes in stockholders’ deficit for the second quarter of 2022. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 27, 2022 36,037,373 $ 360 $ 3,545 $ ( 4,200,341 ) $ ( 2,206 ) Net income — — — 102,493 — Dividends declared on common stock and equivalents 1.10 per share) — — — ( 39,603 ) — Issuance and cancellation of stock awards, net 13,866 — — — — Tax payments for restricted stock upon vesting ( 3,950 ) — ( 1,606 ) — — Purchases of common stock ( 148,248 ) ( 1 ) ( 7,083 ) ( 42,916 ) — Exercise of stock options 605 — 260 — — Non-cash equity-based compensation expense — — 8,473 — — Currency translation adjustment — — — — ( 1,684 ) Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 ) The following table summarizes the changes in stockholders’ deficit for the two fiscal quarters of 2022. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 2, 2022 36,138,273 $ 361 $ 840 $ ( 4,207,917 ) $ ( 2,820 ) Net income — — — 193,457 — Dividends declared on common stock and equivalents 2.20 per share) — — — ( 79,368 ) — Issuance and cancellation of stock awards, net 14,206 — — — — Tax payments for restricted stock upon vesting ( 5,825 ) — ( 2,395 ) — — Purchases of common stock ( 249,058 ) ( 2 ) ( 11,120 ) ( 86,539 ) — Exercise of stock options 2,050 — 526 — — Non-cash equity-based compensation expense — — 15,738 — — Currency translation adjustment — — — — ( 1,070 ) Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 ) Subsequent to the end of the second quarter of 2022 , on July 19, 2022 , the Company’s Board of Directors declared a $ 1.10 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2022 to be paid on September 30, 2022 . The following table summarizes the changes in stockholders’ deficit for the second quarter of 2021. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 28, 2021 38,818,197 $ 388 $ 6,612 $ ( 3,240,842 ) $ ( 2,238 ) Net income — — — 116,619 — Dividends declared on common stock and equivalents 0.94 per share) — — — ( 34,680 ) — Issuance and cancellation of stock awards, net 837 — — — — Tax payments for restricted stock upon vesting ( 110 ) — ( 43 ) — — Purchases of common stock ( 2,012,596 ) ( 20 ) ( 12,181 ) ( 987,799 ) — Exercise of stock options 47,243 1 5,331 — — Non-cash equity-based compensation expense — — 8,296 — — Other — — ( 244 ) — — Currency translation adjustment — — — — 230 Balance at June 20, 2021 36,853,571 $ 369 $ 7,771 $ ( 4,146,702 ) $ ( 2,008 ) The following table summarizes the changes in stockholders’ deficit for the two fiscal quarters of 2021. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 3, 2021 38,868,350 $ 389 $ 5,122 $ ( 3,303,492 ) $ ( 2,424 ) Net income — — — 234,380 — Dividends declared on common stock and equivalents 1.88 per share) — — — ( 71,155 ) — Issuance and cancellation of stock awards, net ( 1,918 ) — — — — Tax payments for restricted stock upon vesting ( 2,901 ) — ( 1,087 ) — — Purchases of common stock ( 2,078,466 ) ( 21 ) ( 18,544 ) ( 1,006,435 ) — Exercise of stock options 68,506 1 9,024 — — Non-cash equity-based compensation expense — — 13,500 — — Other — — ( 244 ) — — Currency translation adjustment — — — — 416 Balance at June 20, 2021 36,853,571 $ 369 $ 7,771 $ ( 4,146,702 ) $ ( 2,008 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 19, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value measurements enable the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair Value of Cash Equivalents and Investments The fair values of the Company’s cash equivalents and investments in marketable securities are based on quoted prices in active markets for identical assets. The fair value of the Company’s Level 3 investment is not readily determinable. The fair value represents its cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairments. The following tables summarize the carrying amounts and fair values of certain assets at June 19, 2022 and January 2, 2022: At June 19, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 76,381 $ 76,381 $ — $ — Restricted cash equivalents 117,426 117,426 — — Investments in marketable securities 13,740 13,740 — — Advertising fund cash equivalents, restricted 150,752 150,752 — — Investments 125,840 — — 125,840 At January 2, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 87,384 $ 87,384 $ — $ — Restricted cash equivalents 115,185 115,185 — — Investments in marketable securities 15,433 15,433 — — Advertising fund cash equivalents, restricted 140,115 140,115 — — Investments 125,840 — — 125,840 The Company holds a non-controlling interest in DPC Dash Ltd, a privately-held business company limited by shares incorporated with limited liability under the laws of the British Virgin Islands (“DPC Dash”). Through its subsidiaries, DPC Dash serves as the Company’s master franchisee in China that owns and operates Domino’s Pizza stores in that market. The Company’s investment in DPC Dash’s senior ordinary shares, which are not in-substance common stock, represents an equity investment without a readily determinable fair value and is recorded at cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairments. The Company did not record any adjustments to the carrying amount of $ 125.8 million in the second quarter or two fiscal quarters of 2022 . The following table summarizes the reconciliation of the carrying amount of the Company’s investment in DPC Dash from the opening balance at January 3, 2021 to the closing balance at June 20, 2021 as a result of the additional investment made in the first quarter of 2021. Two Fiscal Quarters Ended June 20, 2021 Carrying Amount Carrying Amount January 3, Unrealized June 20, 2021 Purchases Gain 2021 Investments $ 40,000 $ 40,000 $ 2,500 $ 82,500 F air Value of Debt The estimated fair values of the Company’s fixed rate notes are classified as Level 2 measurements, as the Company estimates the fair value amount by using available market information. The Company obtained quotes from two separate brokerage firms that are knowledgeable about the Company’s fixed rate notes and, at times, trade these notes. The Company also performed its own internal analysis based on the information gathered from public markets, including information on notes that are similar to those of the Company. However, considerable judgment is required to interpret market data to estimate fair value. Accordingly, the fair value estimates presented are not necessarily indicative of the amount that the Company or the debtholders could realize in a current market exchange. The use of different assumptions and/or estimation methodologies may have a material effect on the estimated fair values stated below. M anagement estimated the approximate fair values of the Company's 2015, 2017, 2018, 2019 and 2021 notes as follows: June 19, 2022 January 2, 2022 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year Notes $ 756,000 $ 737,856 $ 760,000 $ 777,480 2017 Ten-Year Notes 957,500 901,008 962,500 1,000,038 2018 7.5-Year Notes 410,125 395,361 412,250 420,907 2018 9.25-Year Notes 386,000 368,244 388,000 407,788 2019 Ten-Year Notes 659,813 589,872 663,188 693,031 2021 7.5-Year Notes 841,500 720,324 845,750 849,133 2021 Ten-Year Notes 990,000 832,590 995,000 1,017,885 The Company did not have any outstanding borrowings under its variable funding notes at June 19, 2022 or January 2, 2022 . |
Revenue Disclosures
Revenue Disclosures | 6 Months Ended |
Jun. 19, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disclosures | 6. Revenue Disclosures Contract Liabilities Contract liabilities primarily consist of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $ 5.5 million and $ 5.4 million were included in current other accrued liabilities as of June 19, 2022 and January 2, 2022 , respectively. Deferred franchise fees and deferred development fees of $ 23.8 million and $ 24.3 million were included in long-term other accrued liabilities as of June 19, 2022 and January 2, 2022, respectively. Changes in deferred franchise fees and deferred development fees for the two fiscal quarters of 2022 and the two fiscal quarters of 2021 were as follows: Two Fiscal Quarters Ended June 19, June 20, 2022 2021 Deferred franchise fees and deferred development fees at beginning of period $ 29,694 $ 19,090 Revenue recognized during the period ( 2,855 ) ( 2,691 ) New deferrals due to cash received and other 2,448 3,805 Deferred franchise fees and deferred development fees at end of period $ 29,287 $ 20,204 Advertising Fund Assets As of June 19, 2022, advertising fund assets, restricted of $ 182.5 million consisted of $ 164.1 million of cash and cash equivalents, $ 13.5 million of accounts receivable and $ 4.9 million of prepaid expenses. As of June 19, 2022, advertising fund cash and cash equivalents included $ 7.4 million of cash contributed from U.S. Company-owned stores that had not yet been expended. As of January 2, 2022 , advertising fund assets, restricted of $ 180.9 million consisted of $ 161.7 million of cash and cash equivalents, $ 14.5 million of accounts receivable and $ 4.7 million of prepaid expenses. As of January 2, 2022 , advertising fund cash and cash equivalents included $ 7.2 million of cash contributed from U.S. Company-owned stores that had not yet been expended. |
Leases
Leases | 6 Months Ended |
Jun. 19, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles, equipment and its corporate headquarters with expiration dates through 2041. The components of operating and finance lease cost for the second quarter and two fiscal quarters of 2022 and the second quarter and two fiscal quarters of 2021 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Operating lease cost $ 10,789 $ 10,326 $ 21,064 $ 20,750 Finance lease cost: Amortization of right-of-use assets 1,195 1,003 2,403 1,922 Interest on lease liabilities 732 722 1,836 1,748 Total finance lease cost $ 1,927 $ 1,725 $ 4,239 $ 3,670 Rent expense totaled $ 19.0 million and $ 37.9 million in the second quarter and two fiscal quarters of 2022 , respectively. Rent expense totaled $ 17.9 million and $ 36.1 million in the second quarter and two fiscal quarters of 2021 , respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and other costs for the Company’s real estate leases. Rent expense also includes the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers and expense for short-term rentals. Rent expense for certain short-term supply chain center tractor and trailer rentals was $ 1.6 million and $ 3.8 million in the second quarter and two fiscal quarters of 2022 , respectively. Rent expense for short-term supply chain center tractor and trailer rentals was $ 2.0 million and $ 3.8 million in the second quarter and two fiscal quarters of 2021, respectively. Variable rent expense and rent expense for other short-term leases were immaterial in both the second quarter and two fiscal quarters of 2022 and 2021. Supplemental balance sheet information related to the Company’s finance leases as of June 19, 2022 and January 2, 2022 was as follows: June 19, January 2, 2022 2022 Land and buildings $ 86,839 $ 86,965 Accumulated depreciation and amortization ( 16,804 ) ( 14,423 ) Finance lease assets, net $ 70,035 $ 72,542 Current portion of long-term debt $ 4,154 $ 4,088 Long-term debt , less current portion 70,309 72,250 Total principal payable on finance leases $ 74,463 $ 76,338 As of June 19, 2022 and January 2, 2022, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: June 19, 2022 January 2, 2022 Operating Finance Operating Finance Leases Leases Leases Leases Weighted average remaining lease term 7 years 15 years 7 years 15 years Weighted average discount rate 3.6 % 5.8 % 3.5 % 5.8 % Supplemental cash flow information related to leases for the second quarter and two fiscal quarters of 2022 and the second quarter and two fiscal quarters of 2021 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,858 $ 9,105 $ 18,495 $ 19,292 Operating cash flows from finance leases 732 722 1,836 1,748 Financing cash flows from finance leases 792 593 1,778 1,297 Right-of-use assets obtained in exchange for lease obligations: Operating leases 23,407 6,681 31,164 11,353 Finance leases — 5,261 — 5,660 Maturities of lease liabilities as of June 19, 2022 were as follows: Operating Finance Leases Leases 2022 $ 29,410 $ 4,722 2023 43,207 7,523 2024 42,579 8,100 2025 37,063 7,919 2026 34,410 8,615 Thereafter 79,923 77,842 Total future minimum rental commitments 266,592 114,721 Less – amounts representing interest ( 30,236 ) ( 40,258 ) Total lease liabilities $ 236,356 $ 74,463 As of June 19, 2022 , the Company had additional leases for one supply chain center, one storage warehouse facility and certain supply chain tractors and trailers that had not yet commenced with estimated future minimum rental commitments of approximately $ 61.1 million. These leases are expected to commence in 2022 and 2023 with lease terms of up to 16 years . These undiscounted amounts are not included in the table above. The Company has guaranteed lease payments related to certain franchisees’ and others' lease arrangements. The maximum amount of potential future payments under these guarantees was $ 7.9 million and $ 9.1 million as of June 19, 2022 and January 2, 2022 , respectively. The Company does not believe these arrangements have or are likely to have a material effect on its results of operations, financial condition, revenues, expenses or liquidity. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 6 Months Ended |
Jun. 19, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | 8. Supplemental Disclosures of Cash Flow Information The Company had non-cash investing activities related to accruals for capital expenditures of $ 5.8 million at June 19, 2022 and $ 5.4 million at January 2, 2022 . The Company also had less than $ 0.1 million of non-cash investing activities related to lease incentives in the two fiscal quarters of both 2022 and 2021 . |
Company-owned Store Transaction
Company-owned Store Transactions | 6 Months Ended |
Jun. 19, 2022 | |
Business Combinations [Abstract] | |
Company-owned Store Transactions | 9. Company-owned Store Transactions During the first quarter of 2022, the Company purchased 23 U.S. franchised stores from certain of the Company ’ s existing U.S. franchisees for $ 6.8 million, which included $ 4.0 million of intangibles, $ 1.7 million of equipment and leasehold improvements and $ 1.1 million of goodwill. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 19, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 10. New Accounting Pronouncements Accounting Standards Not Yet Adopted The Company has considered all new accounting standards issued by the Financial Accounting Standards Board (“FASB”). The Company has not yet adopted the following standard. Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. The Company’s variable funding notes bear interest at fluctuating interest rates based on LIBOR. However, the associated loan documents contemplate a transition from LIBOR to secured overnight financing rate (“SOFR”) in the event that LIBOR ceases to exist. ASU 2020-04 may currently be adopted and may be applied prospectively to contract modifications made on or before December 31, 2022. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 19, 2022 | |
Segment Reporting [Abstract] | |
Financial Information by Operating Segment | The following tables summarize revenues and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Fiscal Quarters Ended June 19, 2022 and June 20, 2021 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2022 $ 351,681 $ 683,298 $ 66,915 $ ( 36,712 ) $ — $ 1,065,182 2021 359,765 635,592 69,745 ( 32,630 ) — 1,032,472 Segment Income 2022 $ 104,055 $ 53,633 $ 52,890 N/A $ ( 5,621 ) $ 204,957 2021 111,847 58,593 56,365 N/A ( 9,627 ) 217,178 Two Fiscal Quarters Ended June 19, 2022 and June 20, 2021 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2022 $ 684,450 $ 1,325,260 $ 135,748 $ ( 69,127 ) $ — $ 2,076,331 2021 708,355 1,234,769 136,515 ( 63,469 ) — 2,016,170 Segment Income 2022 $ 201,347 $ 99,982 $ 107,936 N/A $ ( 13,331 ) $ 395,934 2021 219,283 111,145 110,833 N/A ( 15,715 ) 425,546 |
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes | The following table reconciles total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Total Segment Income $ 204,957 $ 217,178 $ 395,934 $ 425,546 Depreciation and amortization ( 18,117 ) ( 17,176 ) ( 37,093 ) ( 33,641 ) Loss on sale/disposal of assets ( 253 ) ( 295 ) ( 448 ) ( 456 ) Non-cash equity-based compensation expense ( 8,473 ) ( 8,296 ) ( 15,738 ) ( 13,500 ) Recapitalization-related expenses — ( 509 ) — ( 509 ) Income from operations 178,114 190,902 342,655 377,440 Other income — — — 2,500 Interest income 219 68 268 90 Interest expense ( 44,851 ) ( 45,877 ) ( 91,723 ) ( 85,299 ) Income before provision for income taxes $ 133,482 $ 145,093 $ 251,200 $ 294,731 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 19, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Net income available to common stockholders - basic and diluted $ 102,493 $ 116,619 $ 193,457 $ 234,380 Basic weighted average number of shares 35,915,102 37,590,369 35,957,999 38,145,297 Earnings per share – basic $ 2.85 $ 3.10 $ 5.38 $ 6.14 Diluted weighted average number of shares 36,296,277 38,122,515 36,368,297 38,665,325 Earnings per share – diluted $ 2.82 $ 3.06 $ 5.32 $ 6.06 |
Schedule of Denominators Used in Calculating Earning Per Common Share | The denominators used in calculating diluted earnings per share for common stock for the fiscal quarters and two fiscal quarters each ended June 19, 2022 and June 20, 2021 do not include the following because the effect of including these shares would be anti-dilutive or because the performance condition for these awards had not yet been met: Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Anti-dilutive shares underlying stock-based awards Stock options 120,540 84,955 120,540 92,689 Restricted stock awards and units 67,677 — 346 — Performance condition not met Restricted stock awards and units 42,710 64,110 42,710 64,110 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 6 Months Ended |
Jun. 19, 2022 | |
Federal Home Loan Banks [Abstract] | |
Changes in Stockholders' Deficit | The following table summarizes the changes in stockholders’ deficit for the second quarter of 2022. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 27, 2022 36,037,373 $ 360 $ 3,545 $ ( 4,200,341 ) $ ( 2,206 ) Net income — — — 102,493 — Dividends declared on common stock and equivalents 1.10 per share) — — — ( 39,603 ) — Issuance and cancellation of stock awards, net 13,866 — — — — Tax payments for restricted stock upon vesting ( 3,950 ) — ( 1,606 ) — — Purchases of common stock ( 148,248 ) ( 1 ) ( 7,083 ) ( 42,916 ) — Exercise of stock options 605 — 260 — — Non-cash equity-based compensation expense — — 8,473 — — Currency translation adjustment — — — — ( 1,684 ) Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 ) The following table summarizes the changes in stockholders’ deficit for the two fiscal quarters of 2022. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 2, 2022 36,138,273 $ 361 $ 840 $ ( 4,207,917 ) $ ( 2,820 ) Net income — — — 193,457 — Dividends declared on common stock and equivalents 2.20 per share) — — — ( 79,368 ) — Issuance and cancellation of stock awards, net 14,206 — — — — Tax payments for restricted stock upon vesting ( 5,825 ) — ( 2,395 ) — — Purchases of common stock ( 249,058 ) ( 2 ) ( 11,120 ) ( 86,539 ) — Exercise of stock options 2,050 — 526 — — Non-cash equity-based compensation expense — — 15,738 — — Currency translation adjustment — — — — ( 1,070 ) Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 ) The following table summarizes the changes in stockholders’ deficit for the second quarter of 2021. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 28, 2021 38,818,197 $ 388 $ 6,612 $ ( 3,240,842 ) $ ( 2,238 ) Net income — — — 116,619 — Dividends declared on common stock and equivalents 0.94 per share) — — — ( 34,680 ) — Issuance and cancellation of stock awards, net 837 — — — — Tax payments for restricted stock upon vesting ( 110 ) — ( 43 ) — — Purchases of common stock ( 2,012,596 ) ( 20 ) ( 12,181 ) ( 987,799 ) — Exercise of stock options 47,243 1 5,331 — — Non-cash equity-based compensation expense — — 8,296 — — Other — — ( 244 ) — — Currency translation adjustment — — — — 230 Balance at June 20, 2021 36,853,571 $ 369 $ 7,771 $ ( 4,146,702 ) $ ( 2,008 ) The following table summarizes the changes in stockholders’ deficit for the two fiscal quarters of 2021. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 3, 2021 38,868,350 $ 389 $ 5,122 $ ( 3,303,492 ) $ ( 2,424 ) Net income — — — 234,380 — Dividends declared on common stock and equivalents 1.88 per share) — — — ( 71,155 ) — Issuance and cancellation of stock awards, net ( 1,918 ) — — — — Tax payments for restricted stock upon vesting ( 2,901 ) — ( 1,087 ) — — Purchases of common stock ( 2,078,466 ) ( 21 ) ( 18,544 ) ( 1,006,435 ) — Exercise of stock options 68,506 1 9,024 — — Non-cash equity-based compensation expense — — 13,500 — — Other — — ( 244 ) — — Currency translation adjustment — — — — 416 Balance at June 20, 2021 36,853,571 $ 369 $ 7,771 $ ( 4,146,702 ) $ ( 2,008 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 19, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Certain Assets | The following tables summarize the carrying amounts and fair values of certain assets at June 19, 2022 and January 2, 2022: At June 19, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 76,381 $ 76,381 $ — $ — Restricted cash equivalents 117,426 117,426 — — Investments in marketable securities 13,740 13,740 — — Advertising fund cash equivalents, restricted 150,752 150,752 — — Investments 125,840 — — 125,840 At January 2, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 87,384 $ 87,384 $ — $ — Restricted cash equivalents 115,185 115,185 — — Investments in marketable securities 15,433 15,433 — — Advertising fund cash equivalents, restricted 140,115 140,115 — — Investments 125,840 — — 125,840 |
Summary of reconciliation of the carrying amount of the Company's investment in DPC Dash | The following table summarizes the reconciliation of the carrying amount of the Company’s investment in DPC Dash from the opening balance at January 3, 2021 to the closing balance at June 20, 2021 as a result of the additional investment made in the first quarter of 2021. Two Fiscal Quarters Ended June 20, 2021 Carrying Amount Carrying Amount January 3, Unrealized June 20, 2021 Purchases Gain 2021 Investments $ 40,000 $ 40,000 $ 2,500 $ 82,500 F |
Schedule of Estimated Fair Value | anagement estimated the approximate fair values of the Company's 2015, 2017, 2018, 2019 and 2021 notes as follows: June 19, 2022 January 2, 2022 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year Notes $ 756,000 $ 737,856 $ 760,000 $ 777,480 2017 Ten-Year Notes 957,500 901,008 962,500 1,000,038 2018 7.5-Year Notes 410,125 395,361 412,250 420,907 2018 9.25-Year Notes 386,000 368,244 388,000 407,788 2019 Ten-Year Notes 659,813 589,872 663,188 693,031 2021 7.5-Year Notes 841,500 720,324 845,750 849,133 2021 Ten-Year Notes 990,000 832,590 995,000 1,017,885 |
Revenue Disclosures (Tables)
Revenue Disclosures (Tables) | 6 Months Ended |
Jun. 19, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees | Changes in deferred franchise fees and deferred development fees for the two fiscal quarters of 2022 and the two fiscal quarters of 2021 were as follows: Two Fiscal Quarters Ended June 19, June 20, 2022 2021 Deferred franchise fees and deferred development fees at beginning of period $ 29,694 $ 19,090 Revenue recognized during the period ( 2,855 ) ( 2,691 ) New deferrals due to cash received and other 2,448 3,805 Deferred franchise fees and deferred development fees at end of period $ 29,287 $ 20,204 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 19, 2022 | |
Leases [Abstract] | |
Components Of Operating And Finance Lease Cost | The components of operating and finance lease cost for the second quarter and two fiscal quarters of 2022 and the second quarter and two fiscal quarters of 2021 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Operating lease cost $ 10,789 $ 10,326 $ 21,064 $ 20,750 Finance lease cost: Amortization of right-of-use assets 1,195 1,003 2,403 1,922 Interest on lease liabilities 732 722 1,836 1,748 Total finance lease cost $ 1,927 $ 1,725 $ 4,239 $ 3,670 |
Schedule of Supplemental Balance Sheet Information Related To Finance Leases | Supplemental balance sheet information related to the Company’s finance leases as of June 19, 2022 and January 2, 2022 was as follows: June 19, January 2, 2022 2022 Land and buildings $ 86,839 $ 86,965 Accumulated depreciation and amortization ( 16,804 ) ( 14,423 ) Finance lease assets, net $ 70,035 $ 72,542 Current portion of long-term debt $ 4,154 $ 4,088 Long-term debt , less current portion 70,309 72,250 Total principal payable on finance leases $ 74,463 $ 76,338 As of June 19, 2022 and January 2, 2022, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: June 19, 2022 January 2, 2022 Operating Finance Operating Finance Leases Leases Leases Leases Weighted average remaining lease term 7 years 15 years 7 years 15 years Weighted average discount rate 3.6 % 5.8 % 3.5 % 5.8 % |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for the second quarter and two fiscal quarters of 2022 and the second quarter and two fiscal quarters of 2021 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 19, June 20, June 19, June 20, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,858 $ 9,105 $ 18,495 $ 19,292 Operating cash flows from finance leases 732 722 1,836 1,748 Financing cash flows from finance leases 792 593 1,778 1,297 Right-of-use assets obtained in exchange for lease obligations: Operating leases 23,407 6,681 31,164 11,353 Finance leases — 5,261 — 5,660 |
Schedule Of Maturities Of Operating And Finance Leases Liabilities | Maturities of lease liabilities as of June 19, 2022 were as follows: Operating Finance Leases Leases 2022 $ 29,410 $ 4,722 2023 43,207 7,523 2024 42,579 8,100 2025 37,063 7,919 2026 34,410 8,615 Thereafter 79,923 77,842 Total future minimum rental commitments 266,592 114,721 Less – amounts representing interest ( 30,236 ) ( 40,258 ) Total lease liabilities $ 236,356 $ 74,463 |
Financial Information by Operat
Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,065,182 | $ 1,032,472 | $ 2,076,331 | $ 2,016,170 |
Segment Income | 204,957 | 217,178 | 395,934 | 425,546 |
Operating Segments [Member] | U.S. Stores [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 351,681 | 359,765 | 684,450 | 708,355 |
Segment Income | 104,055 | 111,847 | 201,347 | 219,283 |
Operating Segments [Member] | Supply Chain [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 683,298 | 635,592 | 1,325,260 | 1,234,769 |
Segment Income | 53,633 | 58,593 | 99,982 | 111,145 |
Operating Segments [Member] | International Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 66,915 | 69,745 | 135,748 | 136,515 |
Segment Income | 52,890 | 56,365 | 107,936 | 110,833 |
Intersegment Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (36,712) | (32,630) | (69,127) | (63,469) |
Segment Reconciling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment Income | $ (5,621) | $ (9,627) | $ (13,331) | $ (15,715) |
Reconciliation of Total Segment
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Segment Reconciliation [Abstract] | ||||
Total Segment Income | $ 204,957 | $ 217,178 | $ 395,934 | $ 425,546 |
Depreciation and amortization | (18,117) | (17,176) | (37,093) | (33,641) |
Loss on sale/disposal of assets | (253) | (295) | (448) | (456) |
Non-cash equity-based compensation expense | (8,473) | (8,296) | (15,738) | (13,500) |
Recapitalization-related expenses | (509) | (509) | ||
Income from operations | 178,114 | 190,902 | 342,655 | 377,440 |
Other Income | 0 | 0 | 0 | 2,500 |
Interest income | 219 | 68 | 268 | 90 |
Interest expense | (44,851) | (45,877) | (91,723) | (85,299) |
Income before provision for income taxes | $ 133,482 | $ 145,093 | $ 251,200 | $ 294,731 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computation of Basic and Diluted Earning per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders - basic and diluted | $ 102,493 | $ 116,619 | $ 193,457 | $ 234,380 |
Basic weighted average number of shares | 35,915,102 | 37,590,369 | 35,957,999 | 38,145,297 |
Earnings per share – basic | $ 2.85 | $ 3.10 | $ 5.38 | $ 6.14 |
Diluted weighted average number of shares | 36,296,277 | 38,122,515 | 36,368,297 | 38,665,325 |
Earnings Per Share - Diluted | $ 2.82 | $ 3.06 | $ 5.32 | $ 6.06 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Denominators Used in Calculating Earning Per Common Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 120,540 | 84,955 | 120,540 | 92,689 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | 67,677 | 346 | ||
Restricted Performance Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share, amount unvested | 42,710 | 64,110 | 42,710 | 64,110 |
Stockholders' Deficit - Additio
Stockholders' Deficit - Additional Information (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jul. 19, 2022 | Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Dividends declared per share | $ 1.10 | $ 0.94 | $ 2.20 | $ 1.88 | |
Subsequent Event [Member] | |||||
Dividends declared per share | $ 1.10 | ||||
Record date of dividend | Sep. 15, 2022 | ||||
Dividend declared date | Jul. 19, 2022 | ||||
Dividend payable date | Sep. 30, 2022 |
Stockholders' Deficit (Detail)
Stockholders' Deficit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | ||
Stockholders' Deficit [Line Items] | |||||
Balance | [1] | $ (4,209,536) | |||
Net income | $ 102,493 | $ 116,619 | 193,457 | $ 234,380 | |
Balance | $ (4,180,309) | $ (4,180,309) | |||
Common Stock [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Balance (in shares) | 36,037,373 | 38,818,197 | 36,138,273 | 38,868,350 | |
Balance | $ 360 | $ 388 | $ 361 | $ 389 | |
Issuance and cancellation of stock awards, net (in shares) | 13,866 | 837 | 14,206 | (1,918) | |
Tax payments for restricted stock upon vesting, (in shares) | (3,950) | (110) | (5,825) | (2,901) | |
Purchases of common stock, (in shares) | (148,248) | (2,012,596) | (249,058) | (2,078,466) | |
Purchases of common stock | $ (1) | $ (20) | $ (2) | $ (21) | |
Exercises of stock options, (in shares) | 605 | 47,243 | 2,050 | 68,506 | |
Exercises of stock options | $ 1 | $ 1 | |||
Balance (in shares) | 35,899,646 | 36,853,571 | 35,899,646 | 36,853,571 | |
Balance | $ 359 | $ 369 | $ 359 | $ 369 | |
Additional Paid-in Capital [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Balance | 3,545 | 6,612 | 840 | 5,122 | |
Tax payments for restricted stock upon vesting | (1,606) | (43) | (2,395) | (1,087) | |
Purchases of common stock | (7,083) | (12,181) | (11,120) | (18,544) | |
Exercises of stock options | 260 | 5,331 | 526 | 9,024 | |
Non-cash equity-based compensation expense | 8,473 | 8,296 | 15,738 | 13,500 | |
Other | (244) | (244) | |||
Balance | 3,589 | 7,771 | 3,589 | 7,771 | |
Retained Deficit [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Balance | (4,200,341) | (3,240,842) | (4,207,917) | (3,303,492) | |
Net income | 102,493 | 116,619 | 193,457 | 234,380 | |
Dividends declared on common stock and equivalents | (39,603) | (34,680) | (79,368) | (71,155) | |
Purchases of common stock | (42,916) | (987,799) | (86,539) | (1,006,435) | |
Balance | (4,180,367) | (4,146,702) | (4,180,367) | (4,146,702) | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Stockholders' Deficit [Line Items] | |||||
Balance | (2,206) | (2,238) | (2,820) | (2,424) | |
Currency translation adjustment | (1,684) | 230 | (1,070) | 416 | |
Balance | $ (3,890) | $ (2,008) | $ (3,890) | $ (2,008) | |
[1] The condensed consolidated balance sheet at January 2, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Stockholders' Deficit (Parenthe
Stockholders' Deficit (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Dividends declared per share | $ 1.10 | $ 0.94 | $ 2.20 | $ 1.88 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | Jun. 19, 2022 USD ($) |
Dash Brands Ltd [Member] | |
Investments at carrying value | $ 125.8 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands | Jun. 19, 2022 | Jan. 02, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | $ 76,381 | $ 87,384 |
Restricted cash equivalents, carrying amount | 117,426 | 115,185 |
Investments in marketable securities, carrying amount | 13,740 | 15,433 |
Advertising fund cash equivalents, restricted, carrying amount | 150,752 | 140,115 |
Investments | 125,840 | 125,840 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents, carrying amount | 76,381 | 87,384 |
Restricted cash equivalents, carrying amount | 117,426 | 115,185 |
Investments in marketable securities, carrying amount | 13,740 | 15,433 |
Advertising fund cash equivalents, restricted, carrying amount | 150,752 | 140,115 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 125,840 | $ 125,840 |
Summary of reconciliation of th
Summary of reconciliation of the carrying amount of the Company's investment in DPC Dash - (Detail) - DPC Dash [Member] $ in Thousands | 6 Months Ended |
Jun. 20, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Equity Securities without Readily Determinable Fair Value, Amount | $ 40,000 |
Additional Purchase of Equity Securities Without Readily Determinable Fair Value Amount | 40,000 |
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | 2,500 |
Equity Securities without Readily Determinable Fair Value, Amount | $ 82,500 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands | Jun. 19, 2022 | Jan. 02, 2022 |
2015 Ten-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 756,000 | $ 760,000 |
Fair Value | 737,856 | 777,480 |
2017 Ten-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 957,500 | 962,500 |
Fair Value | 901,008 | 1,000,038 |
2018 7.5-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 410,125 | 412,250 |
Fair Value | 395,361 | 420,907 |
2018 9.25-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 386,000 | 388,000 |
Fair Value | 368,244 | 407,788 |
2019 Ten-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 659,813 | 663,188 |
Fair Value | 589,872 | 693,031 |
2021 7.5-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 841,500 | 845,750 |
Fair Value | 720,324 | 849,133 |
2021 Ten-Year Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal Amount | 990,000 | 995,000 |
Fair Value | $ 832,590 | $ 1,017,885 |
Revenue Disclosures - Additiona
Revenue Disclosures - Additional Information (Detail) - USD ($) | Jun. 19, 2022 | Jan. 02, 2022 | |
Contract liability, Current | $ 5,500 | $ 5,400 | |
Contract liability, Noncurrent | 23,800,000 | 24,300,000 | |
Advertising fund assets, restricted | 182,499,000 | 180,904,000 | [1] |
U.S. Company-owned stores [Member] | Cash, cash equivalents and investments [Member] | |||
Cash contributed from Company-owned stores | 7,400,000 | ||
U S Stores [Member] | Domestic Franchise [Member] | Cash, cash equivalents and investments [Member] | |||
Advertising fund assets, restricted | 164,100,000 | 161,700,000 | |
U S Stores [Member] | Domestic Franchise [Member] | Accounts receivable [Member] | |||
Advertising fund assets, restricted | 13,500 | 14,500,000 | |
U S Stores [Member] | Domestic Franchise [Member] | Prepaid expenses [Member] | |||
Advertising fund assets, restricted | $ 4,900,000 | 4,700,000 | |
U S Stores [Member] | U.S. Company-owned stores [Member] | Cash, cash equivalents and investments [Member] | |||
Cash contributed from Company-owned stores | $ 7,200,000 | ||
[1] The condensed consolidated balance sheet at January 2, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
Revenue Disclosures - Schedule
Revenue Disclosures - Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 19, 2022 | Jun. 20, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred franchise fees and deferred development fees at beginning of period | $ 29,694 | $ 19,090 |
Revenue recognized during the period | (2,855) | (2,691) |
New deferrals due to cash received and other | 2,448 | 3,805 |
Deferred franchise fees and deferred development fees at end of period | $ 29,287 | $ 20,204 |
Components of Operating and Fin
Components of Operating and Finance Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Operating lease cost | $ 10,789 | $ 10,326 | $ 21,064 | $ 20,750 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 1,195 | 1,003 | 2,403 | 1,922 |
Interest on lease liabilities | 732 | 722 | 1,836 | 1,748 |
Total finance lease cost | $ 1,927 | $ 1,725 | $ 4,239 | $ 3,670 |
Supplemental balance sheet info
Supplemental balance sheet information related to the Company's leases (Detail) - USD ($) $ in Thousands | Jun. 19, 2022 | Jan. 02, 2022 |
Land and buildings | $ 86,839 | $ 86,965 |
Accumulated depreciation and amortization | (16,804) | (14,423) |
Finance lease assets, net | 70,035 | 72,542 |
Current portion of long-term debt | $ 4,154 | $ 4,088 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt and Lease Obligation, Current | Long-Term Debt and Lease Obligation, Current |
Long-term debt, less current portion | $ 70,309 | $ 72,250 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt and Lease Obligation | Long-Term Debt and Lease Obligation |
Total principal payable on finance leases | $ 74,463 | $ 76,338 |
Finance Lease, Weighted Average Remaining Lease Term | 15 years | 15 years |
Finance Lease, Weighted Average Discount Rate, Percent | 5.80% | 5.80% |
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years |
Operating Lease, Weighted Average Discount Rate, Percent | 3.60% | 3.50% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 7,858 | $ 9,105 | $ 18,495 | $ 19,292 |
Operating cash flows from finance leases | 732 | 722 | 1,836 | 1,748 |
Financing cash flows from finance leases | 792 | 593 | 1,778 | 1,297 |
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | 23,407 | 6,681 | 31,164 | 11,353 |
Finance leases | $ 0 | $ 5,261 | $ 0 | $ 5,660 |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 19, 2022 | Jan. 02, 2022 |
Leases [Abstract] | ||
2022 | $ 29,410 | |
2023 | 43,207 | |
2024 | 42,579 | |
2025 | 37,063 | |
2026 | 34,410 | |
Thereafter | 79,923 | |
Total future minimum rental commitments | 266,592 | |
Less – amounts representing interest | (30,236) | |
Total lease liabilities | 236,356 | |
2022 | 4,722 | |
2023 | 7,523 | |
2024 | 8,100 | |
2025 | 7,919 | |
2026 | 8,615 | |
Thereafter | 77,842 | |
Total future minimum rental commitments | 114,721 | |
Less – amounts representing interest | (40,258) | |
Total principal payable on finance leases | $ 74,463 | $ 76,338 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 19, 2022 | Jun. 20, 2021 | Jun. 19, 2022 | Jun. 20, 2021 | Jan. 02, 2022 | |
Rent Expenses | $ 19 | $ 17.9 | $ 37.9 | $ 36.1 | |
Finance Lease | 1.6 | $ 2 | 3.8 | $ 3.8 | |
Lessee, operating lease, lease not yet commenced, future minimum rental commitments | 61.1 | 61.1 | |||
Potential future payments | $ 7.9 | $ 7.9 | $ 9.1 | ||
Operating Lease [Member] | |||||
Lease Term | 16 years | 16 years |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 19, 2022 | Jun. 20, 2021 | Jan. 02, 2022 | |
Schedule of Cash Flow, Supplemental [Line Items] | |||
Capital expenditure accrual | $ 5.8 | $ 5.4 | |
Non cash investing activities lease incentives | $ 0.1 | $ 0.1 |
Company-owned Store Transacti_2
Company-owned Store Transactions - Additional Information (Detail) $ in Thousands | 6 Months Ended | |
Jun. 19, 2022 USD ($) Store | Jun. 20, 2021 USD ($) | |
Business Acquisition [Line Items] | ||
Payments for purchase of franchisees | $ 6,814 | $ 0 |
US Franchisee [Member] | ||
Business Acquisition [Line Items] | ||
Number of stores purchased | Store | 23 | |
Payments for purchase of franchisees | $ 6,800 | |
Value of intangibles purchased | 4,000 | |
Value of leasehold and other assets purchased | 1,700 | |
Value of goodwill purchased | $ 1,100 |