Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 22, 2019 | Jun. 30, 2018 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 29, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Entity Registrant Name | DUNKIN' BRANDS GROUP, INC. | ||
Entity Central Index Key | 1,357,204 | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 82,636,134 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 5,740 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Trading Symbol | DNKN |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 517,594 | $ 1,018,317 |
Restricted cash | 79,008 | 94,047 |
Accounts receivable, net | 75,963 | 69,517 |
Notes and other receivables, net | 64,412 | 52,332 |
Prepaid income taxes | 27,005 | 21,927 |
Prepaid expenses and other current assets | 49,491 | 48,193 |
Total current assets | 813,473 | 1,304,333 |
Property, equipment, and software, net | 209,202 | 181,542 |
Equity method investments | 146,395 | 140,615 |
Goodwill | 888,265 | 888,308 |
Other intangible assets, net | 1,334,767 | 1,357,157 |
Other assets | 64,479 | 65,478 |
Total assets | 3,456,581 | 3,937,433 |
Current liabilities: | ||
Current portion of long-term debt | 31,650 | 31,500 |
Capital lease obligations | 476 | 596 |
Accounts payable | 80,037 | 53,417 |
Deferred revenue | 38,082 | 44,876 |
Other current liabilities | 389,336 | 355,110 |
Total current liabilities | 539,581 | 485,499 |
Long-term debt, net | 3,010,626 | 3,035,857 |
Capital lease obligations | 6,998 | 7,180 |
Unfavorable operating leases acquired | 8,236 | 9,780 |
Deferred revenue | 327,333 | 361,458 |
Deferred income taxes, net | 204,027 | 214,345 |
Other long-term liabilities | 72,577 | 77,853 |
Total long-term liabilities | 3,629,797 | 3,706,473 |
Commitments and contingencies (note 17) | ||
Stockholders’ deficit: | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 82,587,373 shares issued and 82,560,596 shares outstanding at December 29, 2018; 90,404,022 shares issued and 90,377,245 shares outstanding at December 30, 2017 | 82 | 90 |
Additional paid-in capital | 642,017 | 724,114 |
Treasury stock, at cost; 26,777 shares at December 29, 2018 and December 30, 2017 | (1,060) | (1,060) |
Accumulated deficit | (1,338,709) | (968,148) |
Accumulated other comprehensive loss | (15,127) | (9,535) |
Total stockholders’ deficit | (712,797) | (254,539) |
Total liabilities and stockholders’ deficit | $ 3,456,581 | $ 3,937,433 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, shares issued (in shares) | 82,587,373 | 90,404,022 |
Common stock, shares outstanding (in shares) | 82,560,596 | 90,377,245 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Total revenues | $ 1,321,617 | $ 1,275,551 | $ 1,248,355 |
Operating costs and expenses: | |||
Company-operated restaurant expenses | 0 | 0 | 13,591 |
Advertising Expense | 498,019 | 476,157 | 458,568 |
General and administrative expenses, net | 246,792 | 243,828 | 241,824 |
Depreciation | 19,932 | 20,084 | 20,458 |
Amortization of other intangible assets | 21,113 | 21,335 | 22,079 |
Long-lived asset impairment charges | 1,648 | 1,617 | 149 |
Total operating costs and expenses | 923,018 | 900,334 | 891,686 |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Net income (loss) of equity method investments | 14,903 | 15,198 | 14,552 |
Other operating income (loss), net | (1,670) | 627 | 9,381 |
Operating income | 411,832 | 391,042 | 380,602 |
Other income (expense), net: | |||
Interest income | 7,200 | 3,313 | 582 |
Interest expense | (128,748) | (104,423) | (100,852) |
Loss on debt extinguishment and refinancing transactions | 0 | (6,996) | 0 |
Other income (loss), net | (1,083) | 391 | (1,195) |
Total other expense, net | (122,631) | (107,715) | (101,465) |
Income before income taxes | 289,201 | 283,327 | 279,137 |
Provision for income taxes | 59,295 | 12,118 | 103,848 |
Net income | 229,906 | 271,209 | 175,289 |
Net income attributable to Dunkin’ Brands | $ 229,906 | $ 271,209 | $ 175,289 |
Earnings per share: | |||
Common-basic (in dollars per share) | $ 2.75 | $ 2.99 | $ 1.91 |
Common-diluted (in dollars per share) | 2.71 | 2.94 | 1.89 |
Cash dividends declared per common share (in dollars per share) | $ 1.39 | $ 1.29 | $ 1.2 |
Franchise fees and royalty income | |||
Revenues: | |||
Total revenues | $ 578,342 | $ 555,206 | $ 536,396 |
Advertising fees and related income | |||
Revenues: | |||
Total revenues | 493,590 | 470,984 | 453,553 |
Rental income | |||
Revenues: | |||
Total revenues | 104,413 | 104,643 | 101,020 |
Ice cream and other products | |||
Revenues: | |||
Total revenues | 95,197 | 96,388 | 100,542 |
Operating costs and expenses: | |||
Cost of ice cream and other products | 77,412 | 77,012 | 77,608 |
Sales at company-operated restaurants | |||
Revenues: | |||
Total revenues | 0 | 0 | 11,975 |
Other revenues | |||
Revenues: | |||
Total revenues | 50,075 | 48,330 | 44,869 |
Occupancy expenses—franchised restaurants | |||
Operating costs and expenses: | |||
Cost of ice cream and other products | $ 58,102 | $ 60,301 | $ 57,409 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 229,906 | $ 271,209 | $ 175,289 |
Other comprehensive income (loss), net: | |||
Effect of foreign currency translation, net of deferred tax expense (benefit) of $(93), $621, and $(638) for the fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016, respectively | (6,223) | 14,824 | (2,557) |
Effect of interest rate swaps, net of deferred tax benefit of $778 and $882 for the fiscal years ended December 30, 2017 and December 31, 2016, respectively | 0 | (1,144) | (1,299) |
Other | 631 | 658 | (79) |
Total other comprehensive income (loss), net | (5,592) | 14,338 | (3,935) |
Comprehensive income | $ 224,314 | $ 285,547 | $ 171,354 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation, deferred tax effect | $ (93) | $ 621 | $ (638) |
Unrealized gains (losses) on interest rate swaps, deferred tax effect | 0 | (778) | (882) |
Unrealized loss on pension plan, deferred tax effect | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock, at cost | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interests |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of the adoption of ASC 606 | $ (163,046) | $ (163,154) | $ 108 | ||||
Balance, shares at Dec. 26, 2015 | 92,470,000 | ||||||
Balance at Dec. 26, 2015 | (220,743) | $ 92 | $ 876,557 | $ (1,075) | (1,076,479) | (20,046) | $ 208 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 175,289 | $ 0 | 0 | 0 | 175,289 | 0 | 0 |
Other comprehensive income (loss), net | (3,935) | (3,935) | |||||
Exercise of stock options, shares | 433,000 | ||||||
Exercise of stock options | 10,647 | $ 1 | 10,646 | ||||
Deconsolidation of noncontrolling interest | (208) | (208) | |||||
Dividends paid on common stock | (109,703) | (109,703) | |||||
Share-based compensation expense, shares | 68,000 | ||||||
Share-based compensation expense | 17,181 | 17,181 | |||||
Repurchases of common stock | (55,000) | 25,000 | (80,000) | ||||
Retirement of treasury stock (shares) | (1,707,000) | ||||||
Retirement of treasury stock | 0 | $ (2) | (15,874) | 80,000 | (64,124) | ||
Excess tax benefits from share-based compensation | 2,735 | 2,735 | |||||
Other, shares | (29,000) | ||||||
Other | 195 | $ 0 | 950 | 15 | (770) | ||
Balance, shares at Dec. 31, 2016 | 91,293,000 | ||||||
Balance at Dec. 31, 2016 | (346,588) | $ 91 | 807,492 | (1,060) | (1,129,238) | (23,873) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 271,209 | 271,209 | 0 | ||||
Other comprehensive income (loss), net | 14,338 | 14,338 | |||||
Exercise of stock options, shares | 1,158,000 | ||||||
Exercise of stock options | 36,495 | $ 1 | 36,494 | ||||
Dividends paid on common stock | (117,003) | (117,003) | |||||
Share-based compensation expense, shares | 46,000 | ||||||
Share-based compensation expense | 14,926 | 14,926 | |||||
Repurchases of common stock | (127,186) | 0 | (127,186) | ||||
Retirement of treasury stock (shares) | (2,271,448) | ||||||
Retirement of treasury stock | 0 | $ (2) | (18,861) | 127,186 | (108,323) | ||
Other, shares | 28,000 | ||||||
Other | $ (730) | 1,066 | 0 | (1,796) | |||
Balance, shares at Dec. 30, 2017 | 90,377,245 | 90,254,000 | |||||
Balance at Dec. 30, 2017 | $ (254,539) | $ 90 | 724,114 | (1,060) | (968,148) | (9,535) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 229,906 | 229,906 | 0 | ||||
Other comprehensive income (loss), net | (5,592) | (5,592) | |||||
Exercise of stock options, shares | 2,721,000 | ||||||
Exercise of stock options | 95,180 | $ 3 | 95,177 | ||||
Dividends paid on common stock | (114,828) | (114,828) | |||||
Share-based compensation expense, shares | 61,000 | ||||||
Share-based compensation expense | 14,879 | 14,879 | |||||
Repurchases of common stock | (680,368) | 0 | (680,368) | ||||
Retirement of treasury stock (shares) | (10,629,000) | ||||||
Retirement of treasury stock | 0 | $ (11) | (81,160) | 680,368 | (599,197) | ||
Other, shares | 30,000 | ||||||
Other | $ 2,565 | 3,835 | 0 | (1,270) | |||
Balance, shares at Dec. 29, 2018 | 82,560,596 | 82,437,000 | |||||
Balance at Dec. 29, 2018 | $ (712,797) | $ 82 | $ 642,017 | $ (1,060) | $ (1,338,709) | $ (15,127) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 229,906 | $ 271,209 | $ 175,289 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 45,031 | 45,239 | 46,267 |
Amortization of debt issuance costs | 5,019 | 6,179 | 6,398 |
Loss on debt extinguishment and refinancing transactions | 0 | 6,996 | 0 |
Deferred income taxes | (9,897) | (121,247) | (26,362) |
Provision for bad debt | 631 | 457 | 53 |
Share-based compensation expense | 14,879 | 14,926 | 17,181 |
Net income of equity method investments | (14,903) | (15,198) | (14,552) |
Dividends received from equity method investments | 4,509 | 4,711 | 5,247 |
Gain on sale of real estate and company-operated restaurants | 0 | (1) | (9,373) |
Other, net | 2,791 | (1,766) | (2,172) |
Change in operating assets and liabilities: | |||
Accounts, notes, and other receivables, net | (19,776) | (18,496) | 40,607 |
Prepaid income taxes, net | (4,996) | (2,441) | 5,022 |
Prepaid expenses and other current assets | (1,561) | (6,481) | (3,695) |
Accounts payable | 26,974 | 5,066 | 5,374 |
Other current liabilities | 34,144 | 30,031 | (2,696) |
Deferred revenue | (41,071) | 59,606 | 33,651 |
Other, net | (2,725) | 4,567 | 6,240 |
Net cash provided by operating activities | 268,955 | 283,357 | 282,479 |
Cash flows from investing activities: | |||
Additions to property, equipment, and software | (51,855) | (21,055) | (20,826) |
Proceeds from sale of real estate and company-operated restaurants | 0 | 854 | 20,523 |
Other, net | 20 | (102) | (4,006) |
Net cash used in investing activities | (51,835) | (20,303) | (4,309) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 1,400,000 | ||
Repayment of long-term debt | (31,600) | (754,375) | (25,000) |
Payment of debt issuance and other debt-related costs | (18,441) | ||
Repurchases of common stock, including accelerated share repurchases | (680,368) | (127,186) | (55,000) |
Dividends paid on common stock | (114,828) | (117,003) | (109,703) |
Exercise of stock options | 95,331 | 36,344 | 10,647 |
Other, net | (895) | (698) | (122) |
Net cash provided by (used in) financing activities | (732,360) | 418,641 | (179,178) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (538) | 572 | (275) |
Increase (decrease) in cash, cash equivalents, and restricted cash | (515,778) | 682,267 | 98,717 |
Cash, cash equivalents, and restricted cash, beginning of year | 1,114,099 | 431,832 | 333,115 |
Cash, cash equivalents, and restricted cash, end of year | 598,321 | 1,114,099 | 431,832 |
Supplemental cash flow information: | |||
Cash paid for income taxes | 74,775 | 135,927 | 125,681 |
Cash paid for interest | 126,868 | 91,606 | 94,212 |
Noncash investing activities: | |||
Property, equipment, and software included in accounts payable and other current liabilities | 2,713 | 2,637 | 1,847 |
Purchase of leaseholds in exchange for capital lease obligations | 325 | 449 | 624 |
Purchase of property, equipment, and software in exchange for note payable | 1,500 | 0 | 0 |
Receivable from exercise of stock options included in notes and other receivables, net | $ 0 | $ 151 | $ 0 |
Description of business and org
Description of business and organization | 12 Months Ended |
Dec. 29, 2018 | |
Text Block [Abstract] | |
Description of business and organization | Description of business and organization Dunkin’ Brands Group, Inc. (“DBGI”), together with its consolidated subsidiaries, is one of the world’s leading franchisors of restaurants serving coffee and baked goods, as well as ice cream, within the quick service restaurant segment of the restaurant industry. We franchise and license a system of both traditional and nontraditional quick service restaurants and, in limited circumstances, have owned and operated locations. Through our Dunkin’ brand, we franchise restaurants featuring coffee, donuts, bagels, breakfast sandwiches, and related products. Additionally, we license Dunkin’ brand products sold in certain retail outlets such as retail packaged coffee, Dunkin’ K-Cup® pods, and ready-to-drink bottled iced coffee. Through our Baskin-Robbins brand, we franchise restaurants featuring ice cream, frozen beverages, and related products. Additionally, we distribute Baskin-Robbins ice cream products to certain international markets for sale in Baskin-Robbins restaurants and certain retail outlets. Throughout these consolidated financial statements, “Dunkin’ Brands,” “the Company,” “we,” “us,” “our,” and “management” refer to DBGI and its consolidated subsidiaries taken as a whole. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies (a) Fiscal year The Company operates and reports financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within fiscal years 2018 and 2017 reflect the results of operations for the 52-week periods ended December 29, 2018 and December 30, 2017 , respectively, and fiscal year 2016 reflects the results of operations for the 53-week period ended December 31, 2016 . (b) Basis of presentation and consolidation The accompanying consolidated financial statements include the accounts of DBGI and subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. In fiscal year 2018, we adopted new guidance for revenue recognition related to contracts with customers and restated all financial statement amounts for fiscal years 2017 and 2016 (see note 3 ). We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The principal entities in which we possess a variable interest include franchise entities and our equity method investees. We do not possess any ownership interests in franchise entities, except for our investments in various entities that are accounted for under the equity method. Additionally, we generally do not provide financial support to franchise entities in a typical franchise relationship. As our franchise and license arrangements provide our franchisee and licensee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. The Company’s maximum exposure to loss resulting from involvement with potential franchise VIEs is attributable to aged trade and notes receivable balances, outstanding loan guarantees, and future lease payments due from franchisees (see note 11 ). Noncontrolling interests included within total stockholders’ deficit as of December 26, 2015 represented interests in a franchise entity that was deemed a variable interest entity and for which the Company was the primary beneficiary. During fiscal year 2016, the Company deconsolidated the noncontrolling interests from the Company's consolidated financial statements as it was no longer the primary beneficiary of the franchise entity. (c) Accounting estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. Significant estimates are made in the calculations and assessments of the following: (a) allowance for doubtful accounts and notes receivables, (b) impairment of tangible and intangible assets, (c) other-than-temporary impairment of equity method investments, (d) income taxes, (e) share-based compensation, (f) lease accounting estimates, (g) gift card/certificate breakage, and (h) contingencies. Estimates are based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when they are not readily apparent from other sources. We adjust such estimates and assumptions when facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. (d) Cash, cash equivalents, and restricted cash The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 29, 2018 and December 30, 2017 , we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents. Cash held related to the advertising funds and the Company’s gift card/certificate programs are classified as unrestricted cash as there are no legal restrictions on the use of these funds; however, the Company intends to use these funds solely to support the advertising funds and gift card/certificate programs rather than to fund operations. Total cash balances related to the advertising funds and gift card/certificate programs as of December 29, 2018 and December 30, 2017 were $207.3 million and $175.7 million , respectively. In accordance with the Company’s securitized financing facility, certain cash accounts have been established in the name of Citibank, N.A. (the “Trustee”) for the benefit of the Trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents (i) cash collections held by the Trustee, (ii) interest, principal, and commitment fee reserves held by the Trustee related to the Company’s notes (see note 8 ), and (iii) real estate reserves used to pay real estate obligations. Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of December 29, 2018 and December 30, 2017 were as follows (in thousands): December 29, December 30, Cash and cash equivalents $ 517,594 1,018,317 Restricted cash 79,008 94,047 Restricted cash, included in Other assets 1,719 1,735 Total cash, cash equivalents, and restricted cash $ 598,321 1,114,099 (e) Fair value of financial instruments The carrying amounts of accounts receivable, notes and other receivables, accounts payable, and other current liabilities approximate fair value because of their short-term nature. For long-term receivables, we review the creditworthiness of the counterparty on a quarterly basis, and adjust the carrying value as necessary. We believe the carrying value of long-term receivables of $5.0 million and $4.9 million as of December 29, 2018 and December 30, 2017 , respectively, approximates fair value. Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Financial assets and liabilities measured at fair value on a recurring basis as of December 29, 2018 and December 30, 2017 are summarized as follows (in thousands): December 29, 2018 December 30, 2017 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 9,906 9,906 10,836 10,836 Total assets $ 9,906 9,906 10,836 10,836 Liabilities: Deferred compensation liabilities $ 9,759 9,759 13,543 13,543 Total liabilities $ 9,759 9,759 13,543 13,543 The deferred compensation liabilities relate to the Dunkin’ Brands, Inc. non-qualified deferred compensation plans (“NQDC Plans”), which allow for pre-tax deferral of compensation for certain qualifying employees and directors (see note 18 ). Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to hypothetical investments. The Company holds company-owned life insurance policies to partially offset the Company’s liabilities under the NQDC Plans. The changes in the fair value of any company-owned life insurance policies are derived using determinable cash surrender value. As such, the company-owned life insurance policies are classified within Level 2, as defined under U.S. GAAP. The carrying value and estimated fair value of long-term debt as of December 29, 2018 and December 30, 2017 were as follows (in thousands): December 29, 2018 December 30, 2017 Financial liabilities Carrying value Estimated fair value Carrying value Estimated fair value Long-term debt $ 3,042,276 3,011,843 3,067,357 3,156,099 The estimated fair value of our long-term debt is estimated primarily based on current market rates for debt with similar terms and remaining maturities or current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, the estimated fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP. (f) Inventories Inventories consist primarily of ice cream products sold to certain international markets that are in-transit from our third-party manufacturer to our international licensees, during which time we hold title to such products. The majority of ice cream products are purchased from one supplier. Inventories are valued at the lower of cost or estimated net realizable value, and cost is generally determined based on the actual cost of the specific inventory sold. An immaterial amount of inventories are included within prepaid expenses and other current assets in the consolidated balance sheets. (g) Property, equipment, and software Property, equipment, and software are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or the remaining lease term of the related asset. Estimated useful lives are as follows: Years Buildings 20 – 35 Leasehold improvements 5 – 20 Store, production, and other equipment 3 – 10 Software 3 – 7 Depreciation related to the U.S. Advertising Funds segment is included within advertising expenses in the consolidated statements of operations. Routine maintenance and repair costs are charged to expense as incurred. Major improvements, additions, or replacements that extend the life, increase capacity, or improve the safety or the efficiency of property are capitalized at cost and depreciated. Major improvements to leased property are capitalized as leasehold improvements and depreciated. Interest costs incurred during the acquisition period of capital assets are capitalized as part of the cost of the asset and depreciated. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell. (h) Leases When determining lease terms, we begin with the point at which the Company obtains control and possession of the leased properties. We include option periods for which failure to renew the lease imposes a penalty on the Company in such an amount that the renewal appears, at the inception of the lease, to be reasonably assured, which generally includes option periods through the end of the related franchise agreement term. We also include any rent holidays in the determination of the lease term. We record rent expense and rental income for leases and subleases, respectively, that contain scheduled rent increases on a straight-line basis over the lease term as defined above. In certain cases, contingent rentals are based on sales levels of our franchisees, in excess of stipulated amounts. Contingent rentals are included in rental income and rent expense as they are earned or accrued, respectively. We occasionally provide to our sublessees, or receive from our landlords, tenant improvement allowances. Tenant improvement allowances paid to our sublessees are recorded as a deferred rent asset. For fixed asset and/or leasehold purchases for which we receive tenant improvement allowances from our landlords, we record the property and equipment and/or leasehold improvements gross and establish a deferred rent obligation. The deferred lease assets and obligations are amortized on a straight-line basis over the determined sublease and lease terms, respectively. Management regularly reviews sublease arrangements, where we are the lessor, for losses on sublease arrangements. We recognize a loss, discounted using credit-adjusted risk-free rates, when costs expected to be incurred under an operating prime lease exceed the anticipated future revenue stream of the operating sublease. Furthermore, for properties where we do not currently have an operational franchise or other third-party sublessee and are under long-term lease agreements, the present value of any remaining liability under the lease, discounted using credit-adjusted risk-free rates and net of estimated sublease recovery, is recognized as a liability and recorded as an operating expense at the time we cease use of the property. The value of any equipment and leasehold improvements related to a closed store is assessed for potential impairment (see note 2(i)). (i) Impairment of long-lived assets Long-lived assets that are used in operations are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through undiscounted future cash flows. Recognition and measurement of a potential impairment is performed on assets grouped with other assets and liabilities at the lowest level where identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment loss is the amount by which the carrying amount of a long-lived asset or asset group exceeds its estimated fair value. Fair value is generally estimated by internal specialists based on the present value of anticipated future cash flows or, if required, with the assistance of independent third-party valuation specialists, depending on the nature of the assets or asset group. (j) Equity method investments The Company’s equity method investments consist of interests in B-R 31 Ice Cream Co., Ltd. (“Japan JV”), BR-Korea Co., Ltd. (“South Korea JV”), and Palm Oasis Pty. Ltd. (“Australia JV”), which are accounted for in accordance with the equity method. The Company also previously accounted for an ownership interest in Coffee Alliance, S.L. (“Spain JV”) in accordance with the equity method, which interest was sold during fiscal year 2016 (see note 6 ). The Company evaluates its equity method investments for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the fair value of the investment. If a loss in value has occurred and is deemed to be other than temporary, an impairment loss is recorded. Several factors are reviewed to determine whether a loss has occurred that is other than temporary, including absence of an ability to recover the carrying amount of the investment, the length and extent of the fair value decline, and the financial condition and future prospects of the investee. (k) Goodwill and other intangible assets Goodwill and trade names (“indefinite-lived intangibles”) have been assigned to our reporting units, which are also our operating segments, for purposes of impairment testing. Dunkin' U.S., Dunkin' International, Baskin-Robbins U.S., and Baskin-Robbins International have indefinite-lived intangibles associated with them. We evaluate the remaining useful life of our trade names to determine whether current events and circumstances continue to support an indefinite useful life. In addition, all of our indefinite-lived intangible assets are tested for impairment annually. We first assess qualitative factors to determine whether it is more likely than not that a trade name is impaired. In the event we were to determine that the carrying value of a trade name would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of the fair value of each trade name with its carrying value, with any excess of carrying value over fair value being recognized as an impairment loss. For goodwill, we first perform a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. In the event we were to determine that a reporting unit’s carrying value would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of each reporting unit’s fair value to its carrying value. The fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties. If the carrying value of a reporting unit exceeds its fair value, goodwill impairment is calculated as the difference between the carrying value of the reporting unit and its fair value, but not exceeding the carrying amount of goodwill allocated to that reporting unit. We have selected the first day of our fiscal third quarter as the date on which to perform our annual impairment test for all indefinite-lived intangible assets. We also test for impairment whenever events or circumstances indicate that the fair value of such indefinite-lived intangibles has been impaired. Other intangible assets consist primarily of franchise and international license rights (“franchise rights”) and operating lease interests acquired related to our prime leases and subleases (“operating leases acquired”). Franchise rights and favorable operating leases acquired recorded in the consolidated balance sheets were valued using an appropriate valuation method as of the date of acquisition. Amortization of franchise rights and favorable operating leases acquired is recorded as amortization expense in the consolidated statements of operations and amortized over the respective franchise and lease terms using the straight-line method. Unfavorable operating leases acquired related to our prime and subleases are recorded in the liability section of the consolidated balance sheets and are amortized into rental expense and rental income, respectively, over the base lease term of the respective leases using the straight-line method. The weighted average amortization period for all unfavorable operating leases acquired is 18 years. Management makes adjustments to the carrying amount of such intangible assets and unfavorable operating leases acquired if they are deemed to be impaired using the methodology for long-lived assets (see note 2(i)), or when such license or lease agreements are reduced or terminated. (l) Contingencies The Company records reserves for legal and other contingencies when information available to the Company indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Predicting the outcomes of claims and litigation and estimating the related costs and exposures involve substantial uncertainties that could cause actual costs to vary materially from estimates. Legal costs incurred in connection with legal and other contingencies are expensed as the costs are incurred. (m) Foreign currency translation We translate assets and liabilities of non-U.S. operations into U.S. dollars at rates of exchange in effect at the balance sheet date, and revenues and expenses at the average exchange rates prevailing during the period. Resulting translation adjustments are recorded as a separate component of other comprehensive income (loss) and stockholders’ deficit, net of deferred taxes. Foreign currency translation adjustments primarily result from our equity method investments, as well as subsidiaries located in Canada, the UK, Australia, and other foreign jurisdictions. Transactions resulting in foreign exchange gains and losses are included in the consolidated statements of operations. (n) Revenue recognition Revenue is recognized in accordance with a five-step revenue model, as follows: identifying the contract with the customer; identifying the performance obligations in the contract; determining the transaction price; allocating the transaction price to the performance obligations; and recognizing revenue when (or as) the entity satisfies a performance obligation. Franchise fees and royalty income Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. The franchise agreements and SDAs typically require the franchisee to pay initial nonrefundable franchise fees prior to opening the respective restaurants and continuing fees, or royalty income, on a weekly basis based upon a percentage of franchisee gross sales. The initial term of domestic franchise agreements is typically 20 years. Prior to the end of the franchise term or as otherwise provided by the Company, a franchisee may elect to renew the term of a franchise agreement and, if approved, will typically pay a renewal fee upon execution of the renewal term. If approved, a franchisee may transfer a franchise agreement or SDA to a new or existing franchisee, at which point a transfer fee is paid. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise/license agreement, territory agreement, or renewal agreement. Internationally, the Company sells master franchise agreements that grant the master franchisee the right to develop and operate, and in some instances sub-franchise, a certain number of restaurants within a particular geographic area. The master franchisee is typically required to pay an upfront market entry fee upon entering into the master franchise agreement and an upfront initial franchise fee for each developed restaurant prior to each respective opening. For the Dunkin' brand and in certain Baskin-Robbins international markets, the master franchisee will also pay continuing fees, or royalty income, generally on a monthly basis based upon a percentage of sales. Generally, the master franchise agreement serves as the franchise agreement for the underlying restaurants, and the initial franchise term provided for each restaurant typically ranges between 10 and 20 years. Generally, the franchise license granted for each individual restaurant within an arrangement represents a single performance obligation. Therefore, initial franchise fees and market entry fees for each arrangement are allocated to each individual restaurant and recognized over the term of the respective franchise agreement from the date of the restaurant opening. Royalty income is also recognized over the term of the respective franchise agreement based on the royalties earned each period as the underlying sales occur. Renewal fees are generally recognized over the renewal term for the respective restaurant from the start of the renewal period. Transfer fees are recognized over the remaining term of the franchise agreement beginning at the time of transfer. Incentives provided to franchisees in conjunction with a franchise/license agreement, territory agreement, or renewal agreement are recognized over the remaining term of the respective agreement. Additionally, for Baskin-Robbins international markets that do not pay a royalty, a portion of the consideration from the sales of ice cream and other products is allocated to royalty income as consideration for the use of the franchise license, which is recognized when the related sales occur and is estimated based on royalty rates in effect for markets where the franchise license is sold on a standalone basis. Fees received or receivable that are expected to be recognized as revenue within one year are classified as current deferred revenue in the consolidated balance sheets. Advertising fees and related income Domestically and in limited international markets, franchise agreements typically require the franchisee to pay continuing advertising fees on a weekly basis based on a percentage of franchisee gross sales, which represents a portion of the consideration received for the single performance obligation of the franchise license. Continuing advertising fees are recognized over the term of the respective franchise agreement based on the fees earned each period as the underlying sales occur. The Company and its franchisees sell gift cards that are redeemable for products in our Dunkin’ and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets. There are no expiration dates or service fees charged on the gift cards. While the franchisees continue to honor all gift cards presented for payment, the likelihood of redemption may be determined to be remote for certain cards due to long periods of inactivity. In these circumstances, the Company may recognize revenue from unredeemed gift cards (“breakage revenue”) if they are not subject to unclaimed property laws. For Dunkin’ gift cards enrolled in the DD Perks® Rewards loyalty program and other cards with expected similar redemption behavior, breakage is estimated and recognized at the point in time when the likelihood of redemption of any remaining card balance becomes remote, generally after a period of sufficient inactivity. Breakage revenue on all other Dunkin’ gift cards and all Baskin-Robbins gift cards is estimated and recognized over time in proportion to actual gift card redemptions, based on historical redemption rates. Significant judgment is required in estimating breakage rates and in determining whether to recognize breakage revenue over time or when the likelihood of redemption becomes remote. The Company also collects gift card program service fees from franchisees to offset the costs to administer the gift card program. The gift card program service fees are based on the volume of gift card transactions processed and are recognized as the underlying transactions occur. Rental income Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement allowances paid (see note 2(h)). The differences between the straight-line rent amounts and amounts receivable under the leases are recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such thresholds are actually achieved. Deferred contingent rentals are recorded as deferred revenue in current liabilities in the consolidated balance sheets. Sales of ice cream and other products We distribute Baskin-Robbins ice cream products and, in limited cases, Dunkin’ products to franchisees and licensees in certain international locations. Revenue from the sale of ice cream and other products, including distribution fees, is recognized when title and risk of loss transfers to the buyer, which is generally upon delivery. Payment for ice cream and other products is generally due within a relatively short period of time subsequent to delivery. Sales at company-operated restaurants Retail store revenues at company-operated restaurants were recognized when payments were tendered at the point of sale, net of sales tax and other sales-related taxes. As of December 29, 2018, December 30, 2017, and December 31, 2016, the Company did not own or operate any restaurants. Other revenues Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of restaurants that were not company-operated to new or existing franchisees. Licensing fees are recognized over the term of the expected license agreement, with sales-based license fees being recognized based on the amount earned each period as the underlying sales occur. Gains on the refranchise or sale of a restaurant are recognized over the term of the related agreement. (o) Allowance for doubtful accounts We monitor the financial condition of our franchisees and licensees and record provisions for estimated losses on receivables when we believe that our franchisees or licensees are unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Included in the allowance for doubtful notes and accounts receivables is a provision for uncollectible royalty, advertising fee, lease, ice cream, and licensing fee receivables. (p) Share-based payments We measure compensation cost at fair value on the date of grant for all share-based awards and recognize compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award. Forfeitures are estimated based on historical and forecasted turnover. As a result of the required adoption of new accounting guidance, the Company began recording excess tax benefits to the provision for income taxes in the consolidated statements of operations beginning in fiscal year 2017, instead of additional paid-in capital in the consolidated balance sheets. As a result, the Company recorded excess tax benefits of $19.7 million and $7.8 million for fiscal years 2018 and 2017, respectively, to provision for income taxes in the consolidated statements of operations, and recorded $2.7 million for fiscal year 2016 to additional paid-in capital in the consolidated balance sheets. (q) Income taxes Deferred tax assets and liabilities are recorded for the expected future tax consequences of items that have been included in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of assets and liabilities and the respective tax bases of assets and liabilities using enacted tax rates that are expected to apply in years in which the temporary differences are expected to reverse. The effects of changes in tax rates and changes in apportionment of income between tax jurisdictions on deferred tax assets and liabilities are recognized in the consolidated statements of operations in the year in which the law is enacted or change in apportionment occurs (see note 16 ). Valuation allowances are provided when the Company does not believe it is more likely than not that it will realize the benefit of identified tax assets. We have made an accounting policy election to treat taxes due under the global intangible low-taxed income provision as a current period expense. A tax position taken or expected to be taken in a tax return is recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Estimates of interest and penalties on unrecognized tax benefits are recorded in the provision f |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue recognition (a) Disaggregation of revenue Revenues are disaggregated by timing of revenue recognition and reconciled to reportable segment revenues as follows (in thousands): Fiscal year ended ended December 29, 2018 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 483,883 29,375 20,111 7,532 — 540,901 15,096 555,997 Franchise fees 18,029 1,276 2,196 844 — 22,345 — 22,345 Advertising fees and related income — — — — 454,608 454,608 18,516 473,124 Other revenues 2,287 10,278 5 8 — 12,578 34,358 46,936 Total revenues recognized over time 504,199 40,929 22,312 8,384 454,608 1,030,432 67,970 1,098,402 Revenues recognized at a point in time: Sales of ice cream and other products — 3,261 — 106,284 — 109,545 (14,348 ) 95,197 Sales at company-operated restaurants — — — — — — — — Other revenues 1,698 257 29 170 — 2,154 985 3,139 Total revenues recognized at a point in time 1,698 3,518 29 106,454 — 111,699 (13,363 ) 98,336 Total revenues recognized under ASC 606 505,897 44,447 22,341 114,838 454,608 1,142,131 54,607 1,196,738 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 20,466 20,466 Rental income 100,913 2,971 — 529 — 104,413 — 104,413 Total revenues not subject to ASC 606 100,913 2,971 — 529 — 104,413 20,466 124,879 Total revenues $ 606,810 47,418 22,341 115,367 454,608 1,246,544 75,073 1,321,617 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.” Fiscal year ended December 30, 2017 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 463,874 29,724 17,965 7,009 — 518,572 14,271 532,843 Franchise fees 18,455 978 1,853 1,077 — 22,363 — 22,363 Advertising fees and related income — — — — 440,441 440,441 1,542 441,983 Other revenues 2,185 10,564 7 8 — 12,764 32,893 45,657 Total revenues recognized over time 484,514 41,266 19,825 8,094 440,441 994,140 48,706 1,042,846 Revenues recognized at a point in time: Sales of ice cream and other products — 3,448 — 106,036 — 109,484 (13,096 ) 96,388 Sales at company-operated restaurants — — — — — — — — Other revenues 1,446 405 (55 ) 238 — 2,034 639 2,673 Total revenues recognized at a point in time 1,446 3,853 (55 ) 106,274 — 111,518 (12,457 ) 99,061 Total revenues recognized under ASC 606 485,960 45,119 19,770 114,368 440,441 1,105,658 36,249 1,141,907 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 29,001 29,001 Rental income 101,073 3,089 — 481 — 104,643 — 104,643 Total revenues not subject to ASC 606 101,073 3,089 — 481 — 104,643 29,001 133,644 Total revenues $ 587,033 48,208 19,770 114,849 440,441 1,210,301 65,250 1,275,551 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.” Fiscal year ended December 31, 2016 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 448,609 28,909 16,791 6,618 — 500,927 14,315 515,242 Franchise fees 16,608 734 1,849 1,963 — 21,154 — 21,154 Advertising fees and related income — — — — 429,952 429,952 1,484 431,436 Other revenues 2,057 11,107 5 15 — 13,184 28,519 41,703 Total revenues recognized over time 467,274 40,750 18,645 8,596 429,952 965,217 44,318 1,009,535 Revenues recognized at a point in time: Sales of ice cream and other products — 2,632 — 110,628 — 113,260 (12,718 ) 100,542 Sales at company-operated restaurants 11,975 — — — — 11,975 — 11,975 Other revenues 1,296 529 (17 ) 357 — 2,165 1,001 3,166 Total revenues recognized at a point in time 13,271 3,161 (17 ) 110,985 — 127,400 (11,717 ) 115,683 Total revenues recognized under ASC 606 480,545 43,911 18,628 119,581 429,952 1,092,617 32,601 1,125,218 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 22,117 22,117 Rental income 97,540 2,994 — 458 — 100,992 28 101,020 Total revenues not subject to ASC 606 97,540 2,994 — 458 — 100,992 22,145 123,137 Total revenues $ 578,085 46,905 18,628 120,039 429,952 1,193,609 54,746 1,248,355 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.” (b) Contract balances Information about receivables and deferred revenue subject to ASC 606 is as follows (in thousands): December 29, December 30, Balance Sheet Classification Receivables $ 81,609 76,455 Accounts receivable, net and Notes and other receivables, net Deferred revenue: Current $ 24,002 27,724 Deferred revenue—current Long-term 327,333 361,458 Deferred revenue—long term Total $ 351,335 389,182 Receivables relate primarily to payments due for royalties, franchise fees, advertising fees, sales of ice cream and other products, and licensing fees. Deferred revenue primarily represents the Company’s remaining performance obligations under its franchise and license agreements for which consideration has been received or is receivable, and is generally recognized on a straight-line basis over the remaining term of the related agreement. The decrease in the deferred revenue balance as of December 29, 2018 was primarily driven by $30.0 million of revenues recognized that were included in the deferred revenue balance as of December 30, 2017 , as well as franchisee incentives provided during fiscal year 2018, offset by cash payments received or due in advance of satisfying our performance obligations. As of December 29, 2018 and December 30, 2017 , there were no contract assets from contracts with customers. (c) Transaction price allocated to remaining performance obligations Estimated revenue expected to be recognized in the future related to performance obligations that are either unsatisfied or partially satisfied at December 29, 2018 is as follows (in thousands): Fiscal year: 2019 $ 22,627 2020 18,996 2021 19,058 2022 18,981 2023 18,872 Thereafter 217,348 Total $ 315,882 The estimated revenue in the table above does not contemplate future franchise renewals or new franchise agreements for restaurants for which a franchise agreement or SDA does not exist at December 29, 2018 . Additionally, the table above excludes $61.0 million of consideration allocated to restaurants that are not yet open as of December 29, 2018 . The Company has applied the sales-based royalty exemption which permits exclusion of variable consideration in the form of sales-based royalties from the disclosure of remaining performance obligations in the table above. Additionally, the Company has applied the transition practical expedient that allows the Company to omit the above disclosures for the fiscal year ended December 30, 2017 . (d) Systemwide points of distribution The changes in franchised and company-operated points of distribution were as follows: Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Systemwide points of distribution: Franchised points of distribution in operation—beginning of year 20,520 20,080 19,308 Franchised points of distribution—opened 1,213 1,339 1,540 Franchised points of distribution—closed (821 ) (899 ) (819 ) Net transfers from company-operated points of distribution — — 51 Franchised points of distribution in operation—end of year 20,912 20,520 20,080 Company-operated points of distribution—end of year — — — Total systemwide points of distribution—end of year 20,912 20,520 20,080 During fiscal year 2016, the Company sold all remaining company-operated restaurants and recognized gains on sales of $7.6 million , which are included in other operating income, net in our consolidated statement of operations. As of December 29, 2018, December 30, 2017, and December 31, 2016, the Company did not own or operate any restaurants. (e) Change in accounting principle In fiscal year 2018, the Company adopted new revenue recognition guidance which provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The Company adopted the guidance using the full retrospective transition method which results in restating each prior reporting period presented, including the notes to the consolidated financial statements herein. The restated amounts include the application of a practical expedient that permitted the Company to reflect the aggregate effect of all modifications that occurred prior to fiscal year 2016 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. The Company implemented new business processes, internal controls, and modified information technology systems to assist in the ongoing application of the new guidance. Franchise Fees The adoption of the new guidance changed the timing of recognition of initial franchise fees, including master license and territory fees for our international business, and renewal and transfer fees. Previously, these fees were generally recognized upfront upon either opening of the respective restaurant, when a renewal agreement became effective, or upon transfer of a franchise agreement. The new guidance generally requires these fees to be recognized over the term of the related franchise license for the respective restaurant. Additionally, transfer fees were previously included within other revenues, but are now included within franchise fees and royalty income in the consolidated statements of operations. The new guidance did not materially impact the recognition of royalty income. Advertising The adoption of the new guidance changed the reporting of advertising fund contributions from franchisees and the related advertising fund expenditures, which were not previously included in the consolidated statements of operations. The new guidance requires these advertising fund contributions and expenditures to be reported on a gross basis in the consolidated statements of operations. The assets and liabilities held by the advertising funds, which were previously reported as restricted assets and liabilities of advertising funds, respectively, are now included within the respective balance sheet caption to which the assets and liabilities relate. Additionally, advertising costs that have been incurred by the Company outside of the advertising funds were previously included within general and administrative expenses, net, but are now included within advertising expenses in the consolidated statements of operations. Previously, breakage from Dunkin’ and Baskin-Robbins gift cards was recorded as a reduction to general and administrative expenses, net, to offset the related gift card program costs. In accordance with the new guidance, breakage revenue is now reported on a gross basis in the consolidated statements of operations within advertising fees and related income, and the related gift card program costs are included in advertising expenses. Ice Cream Royalty Allocation The adoption of the new guidance requires a portion of sales of ice cream products to be allocated to royalty income as consideration for the use of the franchise license. As such, a portion of sales of ice cream and other products has been reclassified to franchise fees and royalty income in the consolidated statements of operations under the new guidance. This allocation has no impact on the timing of recognition of the related sales of ice cream products or royalty income. Other Revenue Transactions The adoption of the new guidance requires certain fees generated by licensing of our brand names and other intellectual property to be recognized over the term of the related agreement, including a one-time upfront license fee recognized in connection with the Dunkin’ K-Cup® pod licensing agreement in fiscal year 2015. Additionally, gains associated with the refranchise, sale, or transfer of restaurants that were not company-operated to new or existing franchisees are recognized over the term of the related agreement under the new guidance, instead of upon closing of the sale transaction or transfer. Impacts to Prior Period Information The new guidance for revenue recognition impacted the Company's previously reported financial statements as follows: Consolidated Balance Sheets December 30, 2017 (In thousands) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Other revenue transactions Restated Assets Current assets: Cash and cash equivalents $ 1,018,317 — — — 1,018,317 Restricted cash 94,047 — — — 94,047 Accounts receivables, net 51,442 — 18,075 — 69,517 Notes and other receivables, net 51,082 — 1,250 — 52,332 Restricted assets of advertising funds 47,373 — (47,373 ) — — Prepaid income taxes 21,879 — 48 — 21,927 Prepaid expenses and other current assets 32,695 — 15,498 — 48,193 Total current assets 1,316,835 — (12,502 ) — 1,304,333 Property, equipment, and software, net 169,005 — 12,537 — 181,542 Equity method investments 140,615 — — — 140,615 Goodwill 888,308 — — — 888,308 Other intangibles assets, net 1,357,157 — — — 1,357,157 Other assets 65,464 — 14 — 65,478 Total assets $ 3,937,384 — 49 — 3,937,433 Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Current portion of long-term debt $ 31,500 — — — 31,500 Capital lease obligations 596 — — — 596 Accounts payable 16,307 — 37,110 — 53,417 Liabilities of advertising funds 58,014 — (58,014 ) — — Deferred revenue 39,395 1,502 (550 ) 4,529 44,876 Other current liabilities 326,078 — 29,032 — 355,110 Total current liabilities 471,890 1,502 7,578 4,529 485,499 Long-term debt, net 3,035,857 — — — 3,035,857 Capital lease obligations 7,180 — — — 7,180 Unfavorable operating leases acquired 9,780 — — — 9,780 Deferred revenue 11,158 328,183 (7,518 ) 29,635 361,458 Deferred income taxes, net 315,249 (91,488 ) — (9,416 ) 214,345 Other long-term liabilities 77,823 — 30 — 77,853 Total long-term liabilities 3,457,047 236,695 (7,488 ) 20,219 3,706,473 Stockholders’ equity (deficit) Preferred stock — — — — — Common stock 90 — — — 90 Additional paid-in-capital 724,114 — — — 724,114 Treasury stock, at cost (1,060 ) — — — (1,060 ) Accumulated deficit (705,007 ) (238,197 ) (196 ) (24,748 ) (968,148 ) Accumulated other comprehensive loss (9,690 ) — 155 — (9,535 ) Stockholders’ equity (deficit) 8,447 (238,197 ) (41 ) (24,748 ) (254,539 ) Total liabilities and stockholders’ equity (deficit) $ 3,937,384 — 49 — 3,937,433 Consolidated Statements of Operations Fiscal year ended December 30, 2017 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 592,689 (51,754 ) — 14,271 — 555,206 Advertising fees and related income — — 470,984 — — 470,984 Rental income 104,643 — — — — 104,643 Sales of ice cream and other products 110,659 — — (14,271 ) — 96,388 Other revenues 52,510 (5,838 ) — — 1,658 48,330 Total revenues 860,501 (57,592 ) 470,984 — 1,658 1,275,551 Operating costs and expenses: Occupancy expenses—franchised restaurants 60,301 — — — — 60,301 Cost of ice cream and other products 77,012 — — — — 77,012 Advertising expenses — — 476,157 — — 476,157 General and administrative expenses, net 248,975 — (5,147 ) — — 243,828 Depreciation 20,084 — — — — 20,084 Amortization of other intangible assets 21,335 — — — — 21,335 Long-lived asset impairment charges 1,617 — — — — 1,617 Total operating costs and expenses 429,324 — 471,010 — — 900,334 Net income of equity method investments 15,198 — — — — 15,198 Other operating income, net 627 — — — — 627 Operating income 447,002 (57,592 ) (26 ) — 1,658 391,042 Other income (expense), net: Interest income 3,313 — — — — 3,313 Interest expense (104,423 ) — — — — (104,423 ) Loss on debt extinguishment and refinancing transactions (6,996 ) — — — — (6,996 ) Other income, net 391 — — — — 391 Total other expense, net (107,715 ) — — — — (107,715 ) Income before income taxes 339,287 (57,592 ) (26 ) — 1,658 283,327 Provision (benefit) for income taxes (a) (11,622 ) 18,656 — — 5,084 12,118 Net income $ 350,909 (76,248 ) (26 ) — (3,426 ) 271,209 Earnings per share—basic $ 3.86 2.99 Earnings per share—diluted 3.80 2.94 (a) Adjustments for “Franchise fees” and “Other revenue transactions” include tax expense of $42.2 million and $4.3 million , respectively, related to the enactment of the Tax Cuts and Jobs Act, consisting of the re-measurement of the related deferred tax balances using the lower enacted corporate tax rate. Consolidated Statements of Operations Fiscal year ended December 31, 2016 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 549,571 (27,490 ) — 14,315 — 536,396 Advertising fees and related income — — 453,553 — — 453,553 Rental income 101,020 — — — — 101,020 Sales of ice cream and other products 114,857 — — (14,315 ) — 100,542 Sales at company-operated restaurants 11,975 — — — — 11,975 Other revenues 51,466 (5,072 ) — — (1,525 ) 44,869 Total revenues 828,889 (32,562 ) 453,553 — (1,525 ) 1,248,355 Operating costs and expenses: Occupancy expenses—franchised restaurants 57,409 — — — — 57,409 Cost of ice cream and other products 77,608 — — — — 77,608 Company-operated restaurant expenses 13,591 — — — — 13,591 Advertising expenses — — 458,568 — — 458,568 General and administrative expenses, net 246,814 — (4,990 ) — — 241,824 Depreciation 20,458 — — — — 20,458 Amortization of other intangible assets 22,079 — — — — 22,079 Long-lived asset impairment charges 149 — — — — 149 Total operating costs and expenses 438,108 — 453,578 — — 891,686 Net income of equity method investments 14,552 — — — — 14,552 Other operating income, net 9,381 — — — — 9,381 Operating income 414,714 (32,562 ) (25 ) — (1,525 ) 380,602 Other income (expense), net: Interest income 582 — — — — 582 Interest expense (100,852 ) — — — — (100,852 ) Other loss, net (1,195 ) — — — — (1,195 ) Total other expense, net (101,465 ) — — — — (101,465 ) Income before income taxes 313,249 (32,562 ) (25 ) — (1,525 ) 279,137 Provision for income taxes 117,673 (13,205 ) — — (620 ) 103,848 Net income $ 195,576 (19,357 ) (25 ) — (905 ) 175,289 Earnings per share—basic $ 2.14 1.91 Earnings per share—diluted 2.11 1.89 The adoption of the new revenue recognition guidance had no impact on the Company’s total cash flows. Adjustments presented in the cash flow information below result from full consolidation of the advertising funds, and reflect the investing activities, consisting solely of additions to property, equipment, and software, of such funds. Select Cash Flow Information (In thousands) Fiscal year ended December 30, 2017 Previously reported Adjustments for new revenue recognition guidance Restated Net cash provided by operating activities $ 276,908 6,449 283,357 Net cash used in investing activities (13,854 ) (6,449 ) (20,303 ) Net cash provided by financing activities 418,641 — 418,641 Increase in cash, cash equivalents, and restricted cash 682,267 — 682,267 Fiscal year ended December 31, 2016 Previously reported Adjustments for new revenue recognition guidance Restated Net cash provided by operating activities $ 276,827 5,652 282,479 Net cash provided by (used in) investing activities 1,343 (5,652 ) (4,309 ) Net cash used in financing activities (179,178 ) — (179,178 ) Increase in cash, cash equivalents, and restricted cash 98,717 — 98,717 |
Advertising funds
Advertising funds | 12 Months Ended |
Dec. 29, 2018 | |
Advertising Funds [Abstract] | |
Advertising funds | Advertising funds Assets and liabilities of the advertising funds, which are restricted in their use, included in the consolidated balance sheets were as follows (in thousands): December 29, December 30, Accounts receivable, net $ 19,501 18,075 Notes and other receivables, net 16,050 1,250 Prepaid income taxes 11 48 Prepaid expenses and other current assets 14,978 15,498 Total current assets 50,540 34,871 Property, equipment, and software, net 15,187 12,537 Other assets 1,255 14 Total assets $ 66,982 47,422 Accounts payable $ 60,302 37,110 Deferred revenue—current (a) (743 ) (550 ) Other current liabilities 43,198 29,032 Total current liabilities 102,757 65,592 Deferred revenue—long-term (a) (6,775 ) (7,518 ) Other long-term liabilities 15 30 Total liabilities $ 95,997 58,104 (a) Amounts represent franchisee incentives that have been deferred and are being recognized over the terms of the respective franchise agreements. |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property, equipment, and software, net Property, equipment, and software at December 29, 2018 and December 30, 2017 consisted of the following (in thousands): December 29, 2018 December 30, 2017 Land $ 40,394 35,673 Buildings 55,771 50,640 Leasehold improvements 157,976 157,310 Software, store, production, and other equipment 72,165 64,491 Construction in progress and software under development 30,446 7,270 Property, equipment, and software, gross 356,752 315,384 Accumulated depreciation (147,550 ) (133,842 ) Property, equipment, and software, net $ 209,202 181,542 |
Equity method investments
Equity method investments | 12 Months Ended |
Dec. 29, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investments | Equity method investments The Company’s ownership interests in its equity method investments as of December 29, 2018 and December 30, 2017 were as follows: Entity Ownership Japan JV 43.3% South Korea JV 33.3% Australia JV 20.0% The Company previously held a 33.3% ownership interest in the Spain JV, which was sold during fiscal year 2016 for nominal consideration. Summary financial information for the equity method investments on an aggregated basis was as follows (in thousands): December 29, December 30, Current assets $ 399,776 363,277 Current liabilities 143,689 140,113 Working capital 256,087 223,164 Property, plant, and equipment, net 162,718 165,442 Other assets 123,165 139,958 Long-term liabilities 55,830 48,429 Equity of equity method investments $ 486,140 480,135 Fiscal year ended December 29, December 30, December 31, Revenues $ 699,981 646,269 629,717 Gross profit 371,274 345,302 329,206 Net income 35,570 33,791 32,529 The comparison between the carrying value of the Company’s investments in the Japan JV and the South Korea JV and the underlying equity in net assets of those investments is presented in the table below (in thousands): Japan JV South Korea JV December 29, December 30, December 29, December 30, Carrying value of investment $ 16,517 13,886 130,580 127,225 Underlying equity in net assets of investment 35,428 35,045 135,275 133,161 Carrying value less than the underlying equity in net assets (a) $ (18,911 ) (21,159 ) (4,695 ) (5,936 ) (a) The deficits of carrying value relative to the underlying equity in net assets of the Japan JV and the South Korea JV as of December 29, 2018 and December 30, 2017 are primarily comprised of impairments of long-lived assets, net of tax, recorded in fiscal years 2015 and 2011, respectively. The carrying values of our investments in the Australia JV for any period presented were not material. |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets The changes and carrying amounts of goodwill by reporting unit were as follows (in thousands): Dunkin’ U.S. Dunkin’ International Baskin-Robbins International Total Goodwill Accumulated impairment charges Net Balance Goodwill Accumulated impairment charges Net Balance Goodwill Accumulated impairment charges Net Balance Goodwill Accumulated impairment charges Net Balance Balances at December 31, 2016 $ 1,148,579 (270,441 ) 878,138 10,134 — 10,134 24,037 (24,037 ) — 1,182,750 (294,478 ) 888,272 Effects of foreign currency adjustments — — — 36 — 36 — — — 36 — 36 Balances at December 30, 2017 1,148,579 (270,441 ) 878,138 10,170 — 10,170 24,037 (24,037 ) — 1,182,786 (294,478 ) 888,308 Effects of foreign currency adjustments — — — (43 ) — (43 ) — — — (43 ) — (43 ) Balances at December 29, 2018 $ 1,148,579 (270,441 ) 878,138 10,127 — 10,127 24,037 (24,037 ) — 1,182,743 (294,478 ) 888,265 Other intangible assets at December 29, 2018 consisted of the following (in thousands): Weighted average amortization period (years) Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangibles: Franchise rights 20 $ 358,154 (229,764 ) 128,390 Favorable operating leases acquired 18 51,405 (35,998 ) 15,407 Indefinite-lived intangible: Trade names N/A 1,190,970 — 1,190,970 $ 1,600,529 (265,762 ) 1,334,767 Other intangible assets at December 30, 2017 consisted of the following (in thousands): Weighted average amortization period (years) Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangibles: Franchise rights 20 $ 358,228 (211,892 ) 146,336 Favorable operating leases acquired 18 58,101 (38,250 ) 19,851 Indefinite-lived intangible: Trade names N/A 1,190,970 — 1,190,970 $ 1,607,299 (250,142 ) 1,357,157 The change in the gross carrying amount of favorable operating leases from December 30, 2017 to December 29, 2018 is primarily due to the impairment of favorable operating leases acquired resulting from lease terminations. Total estimated amortization expense for other intangible assets for fiscal years 2019 through 2023 is as follows (in thousands): Fiscal year (a) : 2019 $ 20,536 2020 20,106 2021 19,734 2022 19,451 2023 19,098 (a) Amortization expense for fiscal years 2019 through 2023 includes estimated amortization of favorable leaserights of $2.1 million , $1.8 million , $1.5 million , $1.3 million , and $1.1 million , respectively, that will be included in Occupancy expenses—franchised restaurants upon adoption of the new lease accounting guidance in fiscal year 2019 (see note 2 (v)). |
Debt
Debt | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at December 29, 2018 and December 30, 2017 consisted of the following (in thousands): December 29, December 30, 2015 Class A-2-II Notes $ 1,684,375 1,701,875 2017 Class A-2-I Notes 594,000 600,000 2017 Class A-2-II Notes 792,000 800,000 Other 1,400 — Debt issuance costs, net of amortization (29,499 ) (34,518 ) Total debt 3,042,276 3,067,357 Less current portion of long-term debt 31,650 31,500 Total long-term debt $ 3,010,626 3,035,857 Securitized Financing Facility In January 2015, DB Master Finance LLC (the “Master Issuer”), a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of DBGI, issued Series 2015-1 3.262% Fixed Rate Senior Secured Notes, Class A-2-I (the “2015 Class A-2-I Notes”) with an initial principal amount of $750.0 million and Series 2015-1 3.980% Fixed Rate Senior Secured Notes, Class A-2-II (the “2015 Class A-2-II Notes” and, together with the 2015 Class A-2-I Notes, the “2015 Class A-2 Notes”) with an initial principal amount of $1.75 billion . In addition, the Master Issuer issued Series 2015-1 Variable Funding Senior Secured Notes, Class A-1 (the “2015 Variable Funding Notes” and, together with the 2015 Class A-2 Notes, the “2015 Notes”), which allowed the Master Issuer to borrow up to $100.0 million on a revolving basis. The 2015 Variable Funding Notes could also be used to issue letters of credit. In October 2017, the Master Issuer issued Series 2017-1 3.629% Fixed Rate Senior Secured Notes, Class A-2-I (the “2017 Class A-2-I Notes”) with an initial principal amount of $600.0 million and Series 2017-1 4.030% Fixed Rate Senior Secured Notes, Class A-2-II (the “2017 Class A-2-II Notes” and, together with the 2017 Class A-2-I Notes, the “2017 Class A-2 Notes”) with an initial principal amount of $800.0 million . In addition, the Master Issuer issued Series 2017-1 Variable Funding Senior Secured Notes, Class A-1 (the “2017 Variable Funding Notes” and, together with the 2017 Class A-2 Notes, the “2017 Notes”), which allow for the issuance of up to $150.0 million of 2017 Variable Funding Notes and certain other credit instruments, including letters of credit. A portion of the proceeds of the 2017 Notes was used to repay the remaining $731.3 million of principal outstanding on the 2015 Class A-2-I Notes and to pay related transaction fees. The additional net proceeds were used for general corporate purposes, which included a return of capital to the Company’s shareholders in 2018 (see note 13 (b)). In connection with the issuance of the 2017 Variable Funding Notes, the Master Issuer terminated the commitments with respect to its existing 2015 Variable Funding Notes. The 2015 Notes and 2017 Notes were each issued in a securitization transaction pursuant to which most of the Company’s domestic and certain of its foreign revenue-generating assets, consisting principally of franchise-related agreements, real estate assets, and intellectual property and license agreements for the use of intellectual property, are held by the Master Issuer and certain other limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiaries of the Company that act as guarantors of the 2015 Notes and 2017 Notes and that have pledged substantially all of their assets to secure the 2015 Notes and 2017 Notes. The 2015 Notes and 2017 Notes were issued pursuant to a base indenture and related supplemental indentures (collectively, the “Indenture”) under which the Master Issuer may issue multiple series of notes. The legal final maturity date of the 2015 Class A-2-II Notes and 2017 Class A-2 Notes is in February 2045 and November 2047 , respectively, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2015 Class A-2-II Notes will be repaid by February 2022 , the 2017 Class A-2-I Notes will be repaid by November 2024 , and the 2017 Class A-2-II Notes will be repaid by November 2027 (the “Anticipated Repayment Dates”). If the 2015 Class A-2-II Notes or the 2017 Class A-2 Notes have not been repaid or refinanced by their respective Anticipated Repayment Dates, a rapid amortization event will occur in which residual net cash flows of the Master Issuer, after making certain required payments, will be applied to the outstanding principal of the 2015 Class A-2-II Notes and the 2017 Class A-2 Notes. Various other events, including failure to maintain a minimum ratio of net cash flows to debt service (“DSCR”), may also cause a rapid amortization event. Borrowings under the 2015 Class A-2-II Notes, 2017 Class A-2-I Notes, and 2017 Class A-2-II Notes bear interest at fixed rates equal to 3.980% , 3.629% , and 4.030% , respectively. If the 2015 Class A-2-II Notes or the 2017 Class A-2 Notes are not repaid or refinanced prior to their respective Anticipated Repayment Dates, incremental interest will accrue. Principal payments are required to be made on the 2015 Class A-2-II Notes, 2017 Class A-2-I Notes, and 2017 Class A-2-II Notes equal to $17.5 million , $6.0 million , and $8.0 million , respectively, per calendar year, payable in quarterly installments. No principal payments are required if a specified leverage ratio, which is a measure of long-term debt, net of cash to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as specified in the Indenture), is less than or equal to 5.0 to 1.0, though the Company intends to make the scheduled principal payments. Other events and transactions, such as certain asset sales and receipt of various insurance or indemnification proceeds, may trigger additional mandatory prepayments. It is anticipated that the principal and interest on the 2017 Variable Funding Notes will be repaid in full on or prior to November 2022 , subject to two additional one -year extensions. Borrowings under the 2017 Variable Funding Notes bear interest at a rate equal to a LIBOR rate plus 1.50% , or the lenders’ commercial paper funding rate plus 1.50% . If the 2017 Variable Funding Notes are not repaid prior to November 2022 or prior to the end of an extension period, if applicable, incremental interest will accrue. In addition, the Company is required to pay a 1.50% fee for letters of credit amounts outstanding and a commitment fee on the unused portion of the 2017 Variable Funding Notes which ranges from 0.50% to 1.00% based on utilization. Total debt issuance costs incurred and capitalized in connection with the issuance of the 2015 Notes were $41.3 million . During the fourth quarter of fiscal year 2017, as a result of the repayment of the remaining $731.3 million of principal outstanding on the 2015 Class A-2-I Notes, the Company recorded a loss on debt extinguishment of $7.0 million , consisting of a $6.3 million write-off of the remaining debt issuance costs related to the 2015 Class A-2-I Notes and $726 thousand of make-whole interest premium costs associated with the early repayment of the 2015 Class A-2-I Notes. Total debt issuance costs incurred and capitalized in connection with the issuance of the 2017 Notes were $17.7 million . The effective interest rate, including the amortization of debt issuance costs, was 4.1% , 3.8% , and 4.2% for the 2015 Class A-2-II Notes, 2017 Class A-2-I Notes, and 2017 Class A-2-II Notes, respectively, at December 29, 2018 . Total amortization of debt issuance costs related to the securitized financing facility was $5.0 million , $6.2 million , and $6.4 million for fiscal years 2018 , 2017 , and 2016 , respectively, which is included in interest expense in the consolidated statements of operations. As of December 29, 2018 and December 30, 2017 , $32.4 million and $32.3 million , respectively, of letters of credit were outstanding against the 2017 Variable Funding Notes, which relate primarily to interest reserves required under the Indenture. There were no amounts drawn down on these letters of credit as of December 29, 2018 or December 30, 2017 . The 2015 Class A-2-II Notes and 2017 Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the 2015 Class A-2-II Notes and 2017 Notes, (ii) provisions relating to optional and mandatory prepayments, including mandatory prepayments in the event of a change of control as defined in the Indenture and the related payment of specified amounts, including specified make-whole payments in the case of the 2015 Class A-2-II Notes and 2017 Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the 2015 Class A-2-II Notes and 2017 Notes are in stated ways defective or ineffective, and (iv) covenants relating to recordkeeping, access to information, and similar matters. As noted above, the 2015 Class A-2-II Notes and 2017 Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated DSCR, failure to maintain an aggregate level of Dunkin’ U.S. retail sales on certain measurement dates, certain manager termination events, an event of default, and the failure to repay or refinance the 2015 Class A-2-II Notes or the 2017 Notes on the applicable Anticipated Repayment Dates. The 2015 Class A-2-II Notes and 2017 Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the 2015 Class A-2-II Notes and 2017 Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. Maturities of long-term debt Based on the Company's intention to make quarterly repayments and assuming repayment by the Anticipated Repayment Dates, the aggregate contractual principal payments of the 2017 Class A-2 Notes, the 2015 Class A-2-II Notes, and other long term debt for 2019 through 2023 are as follows (in thousands): 2017 Class A-2-I Notes 2017 Class A-2-II Notes 2015 Class A-2-II Notes Other Total 2019 $ 6,000 8,000 17,500 150 31,650 2020 6,000 8,000 17,500 150 31,650 2021 6,000 8,000 17,500 150 31,650 2022 6,000 8,000 1,631,875 150 1,646,025 2023 6,000 8,000 — 150 14,150 |
Derivative instruments and hedg
Derivative instruments and hedging transactions | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging transactions | Derivative instruments and hedging transactions The Company’s hedging instruments have historically consisted solely of interest rate swaps to hedge the Company’s variable-rate term loans. In September 2012, the Company entered into variable-to-fixed interest rate swap agreements to hedge the risk of increases in cash flows (interest payments) attributable to increases in three-month LIBOR above the designated benchmark interest rate being hedged, through November 2017. As a result of an amendment in February 2014 to the senior credit facility, the Company amended the interest rate swap agreements to align the embedded floors with the amended term loans. As of the date of the amendment, a pre-tax gain of $5.8 million was recorded in accumulated other comprehensive loss. Effective December 23, 2014 , the Company terminated all interest rate swap agreements with its counterparties in anticipation of the 2015 securitization transaction and related repayment of the outstanding term loans. In fiscal years 2014 and 2015, the Company received total cash proceeds equivalent to fair value of the interest rate swaps at the termination date of $5.3 million , which was net of accrued interest owed to the counterparties of $1.0 million . Upon termination, cash flow hedge accounting was discontinued and the cumulative pre-tax gain of $1.8 million was recorded in accumulated other comprehensive loss. As of December 27, 2014 , a pre-tax gain of $6.2 million was recorded in accumulated other comprehensive loss, which included the gain related to both the February 2014 amendment and December 2014 termination. This pre-tax gain was amortized on a straight-line basis to interest expense in the consolidated statements of operations through November 23, 2017, the original maturity date of the swaps. The table below summarizes the effects of derivative instruments in the consolidated statements of operations and comprehensive income for fiscal year 2017 : Derivatives designated as cash flow hedging instruments Amount of net gain (loss) reclassified into earnings Consolidated statement of operations classification Total effect on other comprehensive income (loss) Interest rate swaps $ 1,922 Interest expense (1,922 ) Income tax effect (778 ) Provision for income taxes 778 Net of income taxes $ 1,144 (1,144 ) The table below summarizes the effects of derivative instruments in the consolidated statements of operations and comprehensive income for fiscal year 2016 : Derivatives designated as cash flow hedging instruments Amount of net gain (loss) reclassified into earnings Consolidated statement of operations classification Total effect on other comprehensive income (loss) Interest rate swaps $ 2,181 Interest expense (2,181 ) Income tax effect (882 ) Provision for income taxes 882 Net of income taxes $ 1,299 (1,299 ) |
Other current liabilities
Other current liabilities | 12 Months Ended |
Dec. 29, 2018 | |
Other Liabilities, Current [Abstract] | |
Other current liabilities | Other current liabilities Other current liabilities at December 29, 2018 and December 30, 2017 consisted of the following (in thousands): December 29, December 30, Gift card/certificate liability $ 239,531 228,783 Accrued payroll and benefits 26,544 30,768 Accrued interest 13,274 17,902 Accrued advertising expenses 52,536 35,210 Franchisee profit-sharing liability 13,764 13,243 Other 43,687 29,204 Total other current liabilities $ 389,336 355,110 The franchisee profit-sharing liability represents amounts owed to franchisees from the net profits primarily on the sale of Dunkin’ K-Cup® pods, retail packaged coffee, and ready-to-drink bottled iced coffee in certain retail outlets. |
Leases
Leases | 12 Months Ended |
Dec. 29, 2018 | |
Leases [Abstract] | |
Leases | Leases The Company is the lessee on certain land leases (the Company leases the land and erects a building) or improved leases (lessor owns the land and building) covering restaurants and other properties. In addition, the Company has leased and subleased land and buildings to others. Many of these leases and subleases provide for future rent escalation and renewal options. In addition, contingent rentals, determined as a percentage of annual sales by our franchisees, are stipulated in certain prime lease and sublease agreements. The Company is generally obligated for the cost of property taxes, insurance, and maintenance relating to these leases. Such costs are typically charged to the sublessee based on the terms of the sublease agreements. The Company also leases certain office equipment and a fleet of automobiles under noncancelable operating leases. Included in the Company’s consolidated balance sheets are the following amounts related to capital leases (in thousands): December 29, December 30, Leased property under capital leases (included in property, equipment, and software) $ 10,282 10,097 Accumulated depreciation (5,018 ) (4,442 ) Net leased property under capital leases $ 5,264 5,655 Capital lease obligations: Current $ 476 596 Long-term 6,998 7,180 Total capital lease obligations $ 7,474 7,776 Included in the Company’s consolidated balance sheets are the following amounts related to assets leased to others under operating leases, where the Company is the lessor (in thousands): December 29, December 30, Land $ 38,151 33,430 Buildings 52,285 47,792 Leasehold improvements 147,515 147,743 Store, production, and other equipment 150 150 Construction in progress 1,606 1,741 Assets leased to others, gross 239,707 230,856 Accumulated depreciation (101,338 ) (94,450 ) Assets leased to others, net $ 138,369 136,406 Future minimum rental commitments to be paid and received by the Company at December 29, 2018 for all noncancelable leases and subleases are as follows (in thousands): Payments Receipts Net leases Capital leases Operating leases Subleases Fiscal year: 2019 $ 1,535 60,166 (72,751 ) (11,050 ) 2020 1,327 58,389 (69,704 ) (9,988 ) 2021 1,361 56,107 (66,154 ) (8,686 ) 2022 1,398 51,968 (60,282 ) (6,916 ) 2023 1,427 46,340 (51,532 ) (3,765 ) Thereafter 11,770 329,641 (304,954 ) 36,457 Total minimum rental commitments 18,818 $ 602,611 (625,377 ) (3,948 ) Less amount representing interest 11,344 Present value of minimum capital lease obligations $ 7,474 Rental expense under operating leases associated with franchised locations and company-operated locations is included in occupancy expenses—franchised restaurants and company-operated restaurant expenses, respectively, in the consolidated statements of operations. Rental expense under operating leases for all other locations, including corporate facilities, is included in general and administrative expenses, net, in the consolidated statements of operations. Total rental expense for all operating leases consisted of the following (in thousands): Fiscal year ended December 29, December 30, December 31, Base rentals $ 54,914 55,019 54,517 Contingent rentals 6,322 6,664 6,182 Total rental expense $ 61,236 61,683 60,699 Total rental income for all leases and subleases consisted of the following (in thousands): Fiscal year ended December 29, December 30, December 31, Base rentals $ 74,419 73,597 70,962 Contingent rentals 29,994 31,046 30,058 Total rental income $ 104,413 104,643 101,020 |
Segment information
Segment information | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information The Company is strategically aligned into two global brands, Dunkin’ and Baskin-Robbins, which are further segregated between U.S. operations and international operations. Additionally, the Company administers and directs the development of all advertising and promotional programs in the U.S. As such, the Company has determined that it has five reportable segments: Dunkin’ U.S., Dunkin’ International, Baskin-Robbins U.S., Baskin-Robbins International, and U.S. Advertising Funds. Dunkin’ U.S., Baskin-Robbins U.S., and Dunkin’ International primarily derive their revenues through royalty income and franchise fees. Baskin-Robbins U.S. also derives revenue through license fees from a third-party license agreement and rental income. Dunkin’ U.S. also derives revenue through rental income. Prior to the sale of remaining company-operated restaurants in fiscal year 2016, Dunkin’ U.S. also derived revenue through retail sales at company-operated restaurants. Baskin-Robbins International primarily derives its revenues from sales of ice cream products, as well as royalty income, franchise fees, and license fees. U.S. Advertising Funds primarily derive revenues through continuing advertising fees from Dunkin' and Baskin-Robbins franchisees. The operating results of each segment are regularly reviewed and evaluated separately by the Company’s senior management, which includes, but is not limited to, the chief executive officer. Senior management primarily evaluates the performance of its segments and allocates resources to them based on operating income adjusted for amortization of intangible assets, long-lived asset impairment charges, impairment of our equity method investments, and other infrequent or unusual charges, which does not reflect the allocation of any corporate charges. This profitability measure is referred to as segment profit. When senior management reviews a balance sheet, it is at a consolidated level. The accounting policies applicable to each segment are generally consistent with those used in the consolidated financial statements. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues. Revenues reported as “Other” include revenues earned through certain licensing arrangements with third parties in which our brand names are used, including the licensing fees earned from the Dunkin’ K-Cup® pod licensing agreement and sales of Dunkin' branded ready-to-drink bottled iced coffee and retail packaged coffee, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Revenues by segment were as follows (in thousands): Revenues Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Dunkin’ U.S. $ 606,810 587,033 578,085 Dunkin’ International 22,341 19,770 18,628 Baskin-Robbins U.S. 47,418 48,208 46,905 Baskin-Robbins International 115,367 114,849 120,039 U.S. Advertising Funds 454,608 440,441 429,952 Total reportable segment revenues 1,246,544 1,210,301 1,193,609 Other 75,073 65,250 54,746 Total revenues $ 1,321,617 1,275,551 1,248,355 Revenues for foreign countries are represented by the Dunkin’ International and Baskin-Robbins International segments above. No individual foreign country accounted for more than 10% of total revenues for any fiscal year presented. Amounts included in “Corporate and other” in the segment profit table below include corporate overhead costs, such as payroll and related benefit costs and professional services, net of “Other” revenues reported above. Segment profit by segment was as follows (in thousands): Segment profit Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Dunkin’ U.S. $ 466,094 445,118 435,734 Dunkin’ International 14,398 6,167 5,382 Baskin-Robbins U.S. 31,958 33,216 33,634 Baskin-Robbins International 36,189 39,505 39,990 U.S. Advertising Funds — — — Total reportable segments 548,639 524,006 514,740 Corporate and other (114,046 ) (110,012 ) (111,910 ) Interest expense, net (121,548 ) (101,110 ) (100,270 ) Amortization of other intangible assets (21,113 ) (21,335 ) (22,079 ) Long-lived asset impairment charges (1,648 ) (1,617 ) (149 ) Loss on debt extinguishment and refinancing transactions — (6,996 ) — Other income (loss), net (1,083 ) 391 (1,195 ) Income before income taxes $ 289,201 283,327 279,137 Net income of equity method investments is included in segment profit for the Dunkin’ International and Baskin-Robbins International reportable segments. Amounts reported as “Other” in the segment profit table below include the reduction in depreciation and amortization, net of tax, reported by our equity method investees as a result of previously recorded impairment charges. Net income of equity method investments by reportable segment was as follows (in thousands): Net income (loss) of equity method investments Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Dunkin’ International $ (86 ) (83 ) 622 Baskin-Robbins International 11,711 11,117 9,803 Total reportable segments 11,625 11,034 10,425 Other 3,278 4,164 4,127 Total net income of equity method investments $ 14,903 15,198 14,552 Depreciation is reflected in segment profit for each reportable segment. Depreciation by reportable segment was as follows (in thousands): Depreciation Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Dunkin’ U.S. $ 10,953 11,296 11,378 Dunkin’ International 41 31 27 Baskin-Robbins U.S. 282 320 272 Baskin-Robbins International 12 53 74 U.S. Advertising Funds 3,986 3,820 3,730 Total reportable segments 15,274 15,520 15,481 Corporate 8,644 8,384 8,707 Total depreciation $ 23,918 23,904 24,188 Depreciation related to the U.S. Advertising Funds is included within advertising expenses in the consolidated statements of operations. Property, equipment, and software, net by geographic region as of December 29, 2018 and December 30, 2017 is based on the physical locations within the indicated geographic regions and are as follows (in thousands): December 29, 2018 December 30, 2017 United States $ 209,106 181,470 International 96 72 Total property, equipment, and software, net $ 209,202 181,542 |
Stockholders' equity (deficit)
Stockholders' equity (deficit) | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Stockholders' equity (deficit) | Stockholders’ deficit (a) Common stock Common shares issued and outstanding included in the consolidated balance sheets include vested and unvested restricted shares. Common stock in the consolidated statements of stockholders’ deficit excludes unvested restricted shares. (b) Treasury stock In October 2015, the Company entered into an accelerated share repurchase agreement (the “October 2015 ASR Agreement”) with a third-party financial institution. Pursuant to the terms of the October 2015 ASR Agreement, the Company paid the financial institution $125.0 million from cash on hand and received an initial delivery of 2,527,167 shares of the Company’s common stock in October 2015, representing an estimate of 80% of the total shares expected to be delivered under the October 2015 ASR Agreement. Upon the final settlement of the October 2015 ASR Agreement in fiscal year 2016, the Company received an additional delivery of 483,913 shares of its common stock based on a weighted average cost per share of $41.51 over the term of the October 2015 ASR Agreement. During fiscal year 2016, the Company entered into and completed an accelerated share repurchase agreement (the “2016 ASR Agreement”) with a third-party financial institution. Pursuant to the terms of the 2016 ASR Agreement, the Company paid the financial institution $30.0 million in cash and received 702,239 shares of the Company’s common stock in fiscal year 2016 based on a weighted average cost per share of $42.72 over the term of the 2016 ASR Agreement. Additionally, during fiscal year 2016, the Company repurchased a total of 520,631 shares of common stock in the open market at a weighted average cost per share of $48.02 from existing stockholders. The Company accounts for treasury stock under the cost method, and as such recorded an increase in treasury stock of $55.0 million during fiscal year 2016 for the shares repurchased under the 2016 ASR Agreement and in the open market, based on the fair market value of the shares on the dates of repurchase and direct costs incurred. Additionally, during fiscal year 2016, the Company reclassified $25.0 million from additional paid-in capital to treasury stock upon final settlement of the October 2015 ASR. During fiscal year 2016, the Company retired 1,706,783 shares of treasury stock, resulting in decreases in treasury stock and additional paid-in capital of $80.0 million and $15.9 million , respectively, and an increase in accumulated deficit of $64.1 million . During fiscal year 2017, the Company entered into and completed an accelerated share repurchase agreement (the “2017 ASR Agreement”) with a third-party financial institution. Pursuant to the terms of the 2017 ASR Agreement, the Company paid the financial institution $100.0 million in cash and received 1,757,568 shares of the Company’s common stock during fiscal year 2017 based on a weighted average cost per share of $56.90 over the term of the 2017 ASR Agreement. Additionally, during fiscal year 2017, the Company repurchased a total of 513,880 shares of common stock in the open market at a weighted average cost per share of $52.90 from existing stockholders. During fiscal year 2017, the Company retired 2,271,448 shares of treasury stock repurchased under the 2017 ASR Agreement and in the open market, based on the fair market value of the shares on the dates of repurchase and direct costs incurred. The repurchase and retirement of these shares of treasury stock resulted in a decrease in additional paid-in capital of $18.9 million and an increase in accumulated deficit of $108.3 million . In February 2018, the Company entered into two accelerated share repurchase agreements (the “February 2018 ASR Agreements”) with two third-party financial institutions. Pursuant to the terms of the February 2018 ASR Agreements, the Company paid the financial institutions $650.0 million from cash on hand and received initial deliveries totaling 8,478,722 shares of the Company's common stock in February 2018, representing an estimate of 80% of the total shares expected to be delivered under the February 2018 ASR Agreements. Upon final settlement of the February 2018 ASR Agreements in August 2018, the Company received additional deliveries totaling 1,691,832 shares of its common stock based on a weighted average cost per share of $63.91 over the term of the February 2018 ASR Agreements. Additionally, during fiscal year 2018, the Company repurchased a total of 458,465 shares of common stock in the open market at a weighted average cost per share of $65.44 from existing stockholders. During fiscal year 2018, the Company retired 10,629,019 shares of treasury stock repurchased under the February 2018 ASR Agreements and in the open market, based on the fair market value of the shares on the dates of repurchase and direct costs incurred. The repurchase and retirement of these shares of treasury stock resulted in a decrease in additional paid-in capital of $81.2 million and an increase in accumulated deficit of $599.2 million . (c) Accumulated other comprehensive loss The components of accumulated other comprehensive loss were as follows (in thousands): Effect of foreign currency translation Other Accumulated other comprehensive loss Balances at December 30, 2017 $ (8,084 ) (1,451 ) (9,535 ) Other comprehensive income (loss) (6,223 ) 631 (5,592 ) Balances at December 29, 2018 $ (14,307 ) (820 ) (15,127 ) (d) Dividends During fiscal year 2018 , the Company paid dividends on common stock as follows: Dividend per share Total amount (in thousands) Payment date Fiscal year 2018: First quarter $ 0.3475 $ 28,639 March 21, 2018 Second quarter 0.3475 28,800 June 6, 2018 Third quarter 0.3475 28,596 September 5, 2018 Fourth quarter 0.3475 28,793 December 5, 2018 During fiscal year 2017 , the Company paid dividends on common stock as follows: Dividend per share Total amount (in thousands) Payment date Fiscal year 2017: First quarter $ 0.3225 $ 29,621 March 22, 2017 Second quarter 0.3225 29,226 June 14, 2017 Third quarter 0.3225 29,064 September 6, 2017 Fourth quarter 0.3225 29,092 December 6, 2017 On February 7, 2019 , the Company announced that its board of directors approved an increase to the next quarterly dividend to $0.3750 per share of common stock, payable on March 20, 2019 to shareholders of record as of the close of business on March 11, 2019 . |
Equity incentive plans
Equity incentive plans | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity incentive plans | Equity incentive plans The Dunkin’ Brands Group, Inc. 2015 Omnibus Long-Term Incentive Plan (the “2015 Plan”) was adopted in May 2015, and is the only plan under which the Company currently grants awards. A maximum of 6,200,000 shares of common stock may be delivered in satisfaction of awards under the 2015 Plan. Prior to the 2015 Plan, the Company granted awards under the Dunkin’ Brands Group, Inc. 2011 Omnibus Long-Term Incentive Plan (the “2011 Plan”) and the 2006 Executive Incentive Plan, as amended (the “2006 Plan”). Total share-based compensation expense, which is included in general and administrative expenses, net, consisted of the following (in thousands): Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Time-vested stock options $ 7,575 8,611 10,654 Restricted stock units 4,569 4,337 3,608 2011 Plan restricted shares 1,172 701 1,793 Performance stock units 1,563 1,277 1,086 Other — — 40 Total share-based compensation $ 14,879 14,926 17,181 Total related tax benefit $ 22,749 8,339 6,955 The actual tax benefit realized from stock options exercised during fiscal years 2018 , 2017 , and 2016 was $24.7 million , $11.1 million , and $4.1 million , respectively. Time-vested stock options Time-vested stock options granted under the 2011 Plan and 2015 Plan generally vest in equal annual amounts over a 4 -year period subsequent to the grant date, and as such are subject to a service condition, and also fully vest upon a change of control. The requisite service period over which compensation cost is being recognized is 4 years. The maximum contractual term of the stock options is 7 or 10 years. The fair value of time-vested stock options was estimated on the date of grant using the Black-Scholes option pricing model. This model is impacted by the Company’s stock price and certain assumptions related to the Company’s stock and employees’ exercise behavior. The following weighted average assumptions were utilized in determining the fair value of the 2015 Plan options granted during fiscal years 2018 , 2017 , and 2016 : Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Weighted average grant-date fair value of share options granted $ 10.44 $ 9.87 $ 7.41 Weighted average assumptions: Risk-free interest rate 2.5 % 1.9 % 1.2 % Expected volatility 23.0 % 24.0 % 25.0 % Dividend yield 2.3 % 2.3 % 2.7 % Expected term (years) 4.40 4.88 4.90 The expected term for stock options granted during fiscal year 2018 is based on historical exercise behavior for similar awards, giving consideration to the contractual terms, vesting schedules, and expectations of future employee behavior. The expected term for stock options granted during fiscal years 2017 and 2016 was estimated utilizing the simplified method. We utilized the simplified method because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free interest rate assumption was based on yields of U.S. Treasury securities in effect at the date of grant with terms similar to the expected term. Expected volatility was estimated based on the Company’s historical volatility, and also considering historical volatility of peer companies over a period equivalent to the expected term. Additionally, the dividend yield was estimated based on dividends currently being paid on the underlying common stock at the date of grant. Estimated and actual forfeitures have not had a material impact on share-based compensation expense. A summary of the status of the time-vested stock options as of December 29, 2018 and changes during fiscal year 2018 is presented below: Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Share options outstanding at December 30, 2017 4,367,527 $ 47.63 4.6 Granted 909,027 59.60 Exercised (2,002,848 ) 46.36 Forfeited or expired (277,570 ) 51.92 Share options outstanding at December 29, 2018 2,996,136 51.71 4.7 $ 35.1 Share options exercisable at December 29, 2018 935,868 46.43 3.7 15.9 The total grant-date fair value of the time-vested options vested during fiscal years 2018 , 2017 , and 2016 was $8.2 million , $9.9 million , and $10.6 million , respectively. The total intrinsic value of the time-vested stock options exercised was $44.8 million , $13.0 million , and $5.3 million for fiscal years 2018 , 2017 , and 2016 , respectively. As of December 29, 2018 , there was $12.3 million of total unrecognized compensation cost related to the time-vested stock options. Unrecognized compensation cost is expected to be recognized over a weighted average period of approximately 2.5 years. Restricted stock units The Company typically grants restricted stock units to certain employees and non-employee members of our board of directors. Restricted stock units granted to employees generally vest in three equal installments on each of the first three annual anniversaries of the grant date. Restricted stock units granted to non-employee members of our board of directors generally vest in one installment on the first anniversary of the grant date. A summary of the changes in the Company’s restricted stock units during fiscal year 2018 is presented below: Number of shares Weighted average grant-date fair value Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Nonvested restricted stock units at December 30, 2017 175,426 $ 48.51 1.5 Granted 87,585 60.87 Vested (93,524 ) 48.52 Forfeited (9,605 ) 49.92 Nonvested restricted stock units at December 29, 2018 159,882 55.19 1.4 $ 10.1 The fair value of each restricted stock unit is determined on the date of grant based on our closing stock price, less the present value of expected dividends not received during the vesting period. The weighted average grant-date fair value of restricted stock units granted during fiscal years 2018 , 2017 , and 2016 was $60.87 , $52.44 , and $44.34 , respectively. As of December 29, 2018 , there was $5.5 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted average period of approximately 1.7 years. The total grant-date fair value of restricted stock units vested during fiscal years 2018 , 2017 , and 2016 was $4.5 million , $4.1 million , and $3.5 million , respectively. 2011 Plan restricted shares During fiscal year 2014, the Company granted 27,096 restricted shares. The restricted shares vested in full during fiscal year 2016 based on a service condition, and had a grant-date fair value of $51.67 per share, which was determined on the date of grant based on the Company ’ s closing stock price. Additionally, the Company granted 150,000 contingently issuable restricted shares during fiscal year 2014. The contingently issuable restricted shares became eligible to vest on December 31, 2018 , subject to a service condition and a market vesting condition linked to the level of total shareholder return received by the Company’s shareholders during the performance period measured against the median total shareholder return of the companies in the S&P 500 Composite Index. The contingently issuable restricted shares were valued based on a Monte Carlo simulation model to reflect the impact of the total shareholder return market condition, resulting in a grant-date fair value of $37.94 per share. As of December 29, 2018 , there was an immaterial amount of unrecognized compensation cost related to these restricted shares. On December 31, 2018, or in fiscal year 2019, the contingently issuable restricted shares realized a 52.2% vesting percentage based upon level of performance achieved against the market vesting condition, and 78,300 restricted shares vested. The total grant-date fair value of 2011 Plan restricted shares vested during fiscal year 2016 was $1.4 million . No shares vested during fiscal years 2018 and 2017 . Performance stock units The Company granted 67,993 , 84,705 , and 121,030 performance stock units (“PSUs”) to certain employees during fiscal years 2018 , 2017 , and 2016 , respectively, which are generally eligible to cliff-vest approximately three years from the grant date. Of the total PSUs granted in 2018 , 2017 , and 2016 , 30,974 , 37,027 , and 39,684 PSUs, respectively, are subject to a service condition and a market vesting condition linked to the level of total shareholder return received by the Company ’ s shareholders during the performance period measured against the companies in the S&P 500 Composite Index (“TSR PSUs”). The remaining 37,019 , 47,678 , and 81,346 PSUs granted in 2018 , 2017 , and 2016 , respectively, are subject to a service condition and a performance vesting condition based on the level of adjusted operating income growth achieved over the performance period (“AOI PSUs”). The maximum vesting percentage that could be realized for each of the TSR PSUs and the AOI PSUs is 200% based on the level of performance achieved for the respective awards. All of the PSUs are also subject to a one-year post-vesting holding period. The TSR PSUs were valued based on a Monte Carlo simulation model to reflect the impact of the total shareholder return market condition, resulting in a weighted average grant-date fair value of $65.52 , $67.52 , and $55.36 per unit granted in 2018 , 2017 , and 2016 , respectively. The probability of satisfying a market condition is considered in the estimation of the grant-date fair value for TSR PSUs and the compensation cost is not reversed if the market condition is not achieved, provided the requisite service has been provided. The AOI PSUs granted in 2018 , 2017 , and 2016 have a weighted average grant-date fair value of $57.10 , $52.44 , and $44.22 per unit, respectively. Total compensation cost for the AOI PSUs is determined based on the most likely outcome of the performance condition and the number of awards expected to vest based on the outcome. A summary of the changes in the Company’s PSUs during fiscal year 2018 is presented below: Number of shares Weighted average grant-date fair value Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Nonvested performance stock units at December 30, 2017 148,586 $ 52.72 1.7 Granted 67,993 60.94 Forfeited (22,010 ) 57.35 Nonvested performance stock units at December 29, 2018 194,569 55.07 1.1 $ 12.3 As of December 29, 2018 , there was $3.8 million of total unrecognized compensation cost related to PSUs, which is expected to be recognized over a weighted average period of approximately 1.8 years. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts): Fiscal year ended December 29, December 30, December 31, Net income—basic and diluted $ 229,906 271,209 175,289 Weighted average number of common shares: Common—basic 83,697,610 90,857,168 91,568,942 Common—diluted 84,960,791 92,231,436 92,538,282 Earnings per common share: Common—basic $ 2.75 2.99 1.91 Common—diluted 2.71 2.94 1.89 The weighted average number of common shares in the common diluted earnings per share calculation includes the dilutive effect of 1,263,181 , 1,374,268 , and 969,340 equity awards for fiscal years 2018 , 2017 , and 2016 , respectively, using the treasury stock method. The weighted average number of common shares in the common diluted earnings per share calculation for all periods excludes all contingently issuable equity awards outstanding for which the contingent vesting criteria were not yet met as of the fiscal period end. As of December 29, 2018 , there were 184,744 shares, and at each of December 30, 2017 and December 31, 2016 , there were 150,000 shares related to equity awards that were contingently issuable and for which the contingent vesting criteria were not yet met as of the fiscal period end. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation excludes 726,203 , 1,382,486 , and 3,498,229 equity awards for fiscal years 2018 , 2017 , and 2016 , respectively, as they would be antidilutive. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Income before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands): Fiscal year ended December 29, December 30, December 31, Domestic operations $ 266,080 261,760 252,815 Foreign operations 23,121 21,567 26,322 Income before income taxes $ 289,201 283,327 279,137 The components of the provision for income taxes were as follows (in thousands): Fiscal year ended December 29, December 30, December 31, Current: Federal $ 43,992 102,349 97,972 State 21,270 27,922 28,430 Foreign 3,930 3,094 3,808 Current tax provision $ 69,192 133,365 130,210 Deferred: Federal $ (7,262 ) (117,054 ) (20,891 ) State (2,967 ) (5,900 ) (6,069 ) Foreign 332 1,707 598 Deferred tax benefit (9,897 ) (121,247 ) (26,362 ) Provision for income taxes $ 59,295 12,118 103,848 Tax Reform On December 22, 2017, the U.S. federal government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly changed U.S. tax law by, among other things, reducing the corporate income tax rate from 35% to 21% effective January 1, 2018, establishing a modified territorial-style system for taxing foreign-source income of domestic multinational corporations, and imposing a one-time mandatory transition tax on deemed repatriated earnings of certain foreign joint ventures and subsidiaries. As a result of the Tax Act, the Company recorded a provisional net tax benefit of $96.8 million during fiscal year 2017 primarily related to the remeasurement of certain U.S. deferred tax assets and liabilities, partially offset by the tax effects associated with mandatory repatriation. During fiscal year 2018 , all of the Company’s 2017 U.S. federal and state tax returns were filed and the provisional net tax benefit from the Tax Act was finalized. There was no material change to the provisional amount recorded in fiscal year 2017 . Tax Rate The provision for income taxes differed from the expense computed using the statutory federal income tax rate of 21% for fiscal year 2018 and 35% for each of the fiscal years 2017 and 2016 due to the following: Fiscal year ended December 29, December 30, December 31, Computed federal income tax expense, at statutory rate 21.0 % 35.0 % 35.0 % State income taxes 6.6 5.2 5.1 Benefits and taxes related to foreign operations (1.5 ) (1.7 ) (3.1 ) Excess tax benefits (6.8 ) (2.8 ) — Change in valuation allowance 0.6 3.2 — Other permanent differences 0.6 (0.5 ) 0.1 Impact of Tax Act — (34.9 ) — Other, net — 0.8 0.1 Effective tax rate 20.5 % 4.3 % 37.2 % Deferred Tax Assets and Liabilities The components of deferred tax assets and liabilities were as follows (in thousands): December 29, 2018 December 30, 2017 Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Allowance for doubtful accounts $ 2,134 — 2,013 — Capital leases 2,074 — 2,158 — Rent 9,332 — 9,452 — Property, equipment, and software 1,984 — 375 — Deferred compensation liabilities 10,789 — 15,033 — Deferred gift cards and certificates 17,402 — 16,676 — Deferred revenue 111,668 — 109,953 — Real estate reserves 980 — 1,153 — Franchise rights and other intangibles — 368,277 — 372,988 Unused net operating losses and foreign tax credits 3,270 — 1,912 — Other current liabilities 5,581 — 4,697 — Interest limitation carryforward 5,134 — — — Other 162 — 224 — 170,510 368,277 163,646 372,988 Valuation allowance (2,827 ) — (899 ) — Total $ 167,683 368,277 162,747 372,988 Deferred tax assets and liabilities are presented on a net basis by jurisdiction in the consolidated balance sheets. Deferred tax assets for certain foreign jurisdictions totaling $3.4 million and $4.1 million as of December 29, 2018 and December 30, 2017 , respectively, are included in other assets in the consolidated balance sheets. At December 29, 2018 , the Company had net operating and capital loss carryforwards in certain international jurisdictions of approximately $6.5 million , and recorded deferred tax assets of $0.9 million , net of valuation allowance, related to such loss carryforwards. All unused net operating losses, capital losses, and interest limitations may be carried forward indefinitely, subject to certain restrictions on their use. In addition, the Company had $1.8 million of foreign tax credit carryforwards that expire in 2028 on which a full valuation allowance has been recorded. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income, and projections for future taxable income over the periods for which the deferred tax assets are deductible, management believes, as of December 29, 2018 , with the exception of a foreign tax credit carryforward and net operating loss carryforwards attributable to certain of our foreign subsidiaries for which valuation allowances have been recorded, it is more likely than not that the Company will realize the benefits of the deferred tax assets. The Company has not recognized a deferred tax liability of $10.3 million for potential foreign withholding taxes on the undistributed earnings, net of foreign tax credits, relating to our foreign joint ventures that arose in fiscal year 2018 and prior years because the Company currently does not expect those unremitted earnings to be distributed and become taxable to the Company in the future. In addition, the previously untaxed accumulated earnings and profits of our joint ventures were subject to U.S. tax in the one-time mandatory transition tax provision in fiscal year 2017 . A deferred tax liability will be recognized when the Company is no longer able to demonstrate that it plans to indefinitely reinvest undistributed earnings. As of December 29, 2018 and December 30, 2017 , the undistributed earnings of these joint ventures were approximately $159.6 million and $147.4 million , respectively. The Company has not recognized a deferred tax liability for the undistributed earnings of our foreign subsidiaries since the previously untaxed accumulated earnings and profits of those subsidiaries were subject to tax in the one-time mandatory transition tax provision in fiscal year 2017 . Beginning in fiscal year 2018 , the income from these subsidiaries is considered global intangible low-taxed income and a portion of those earnings are included in taxable income in the year earned. In addition, such earnings are considered indefinitely reinvested outside the United States. As of December 29, 2018 and December 30, 2017 , the amount of cash associated with indefinitely reinvested foreign earnings was approximately $22.7 million and $21.7 million , respectively. If in the future we decide to repatriate such foreign earnings, we could incur incremental U.S. federal and state income tax. However, our intention is to keep these funds indefinitely reinvested outside of the United States and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations. Unrecognized Tax Benefits At December 29, 2018 and December 30, 2017 , the total amount of unrecognized tax benefits related to uncertain tax positions was $2.4 million and $1.5 million , respectively. At December 29, 2018 and December 30, 2017 , the Company had approximately $0.7 million and $0.6 million , respectively, of accrued interest and penalties related to uncertain tax positions. During fiscal year 2018 , the Company recorded an uncertain tax position of $1.1 million due to uncertainty in the application of provisions of the Tax Act. The Company did not record a material amount related to potential interest and penalties for uncertain tax positions during fiscal years 2018 , 2017 , or 2016 . As of December 29, 2018 and December 30, 2017 , there was $ 1.2 million and $1.3 million , respectively, of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate. The Company’s major tax jurisdiction subject to income tax is the United States, where periods dating back to tax years ended December 2015 remain open and subject to examination. A summary of the changes in the Company’s unrecognized tax benefits is as follows (in thousands): Fiscal year ended December 29, December 30, December 31, Balance at beginning of year $ 1,529 2,290 2,653 Increases related to prior year tax positions 3 206 267 Increases related to current year tax positions 1,121 65 161 Decreases related to prior year tax positions (170 ) (94 ) (33 ) Decreases related to settlements — (871 ) (191 ) Lapses of statutes of limitations — (140 ) (597 ) Effect of foreign currency adjustments (91 ) 73 30 Balance at end of year $ 2,392 1,529 2,290 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Text Block [Abstract] | |
Commitments and Contingencies | Commitments and contingencies (a) Lease commitments The Company is party to various leases for property, including land and buildings, leased automobiles, and office equipment under noncancelable operating and capital lease arrangements (see note 11 ). (b) Supply chain guarantees The Company has various supply chain agreements that provide for purchase commitments, the majority of which result in the Company being contingently liable upon early termination of the agreement. As of December 29, 2018 and December 30, 2017 , the Company was contingently liable under such supply chain agreements for approximately $119.4 million and $116.7 million , respectively. For certain supply chain commitments, as product is purchased by the Company’s franchisees over the term of the agreement, the amount of the guarantee is reduced. The Company assesses the risk of performing under each of these guarantees on a quarterly basis, and, based on various factors including internal forecasts, prior history, and ability to extend contract terms, we accrued an immaterial amount of reserves related to supply chain commitments as of December 29, 2018 and December 30, 2017 . (c) Letters of credit At December 29, 2018 and December 30, 2017 , the Company had standby letters of credit outstanding for a total of $32.4 million and $32.3 million , respectively. There were no amounts drawn down on these letters of credit. (d) Legal matters The Company is engaged in several matters of litigation arising in the ordinary course of its business as a franchisor. Such matters include disputes related to compliance with the terms of franchise and development agreements, including claims or threats of claims of breach of contract, negligence, and other alleged violations by the Company. At December 30, 2017 , $3.6 million was included in other current liabilities in the consolidated balance sheets to reflect the Company’s estimate of the probable losses incurred in connection with all outstanding litigation. At December 29, 2018 , an inconsequential amount was accrued related to outstanding litigation. |
Retirement plans
Retirement plans | 12 Months Ended |
Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |
Retirement plans | Retirement plans 401(k) Plan Employees of the Company, excluding employees of certain international subsidiaries, are eligible to participate in a defined contribution retirement plan, the Dunkin’ Brands 401(k) Retirement Plan (“401(k) Plan”), under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees may contribute up to 80% of their pre-tax eligible compensation, not to exceed the annual limits set by the IRS. The 401(k) Plan allows the Company to match participants’ contributions in an amount determined at the sole discretion of the Company. The Company matched participants’ contributions during fiscal years 2018 , 2017 , and 2016 , up to a maximum of 4% of the employee’s eligible compensation. Employer contributions totaled $3.5 million , $3.4 million , and $3.3 million for fiscal years 2018 , 2017 , and 2016 , respectively. NQDC Plans The Company also offers certain qualifying individuals, as defined by the Employee Retirement Income Security Act (“ERISA”), the ability to participate in the NQDC Plans. The NQDC Plans allow for pre-tax contributions of up to 50% of a participant’s base annual salary and other forms of compensation, as defined. The Company credits the amounts deferred with earnings and holds investments in company-owned life insurance policies to partially offset the Company’s liabilities under the NQDC Plans. The NQDC Plans liability, included in other long-term liabilities in the consolidated balance sheets, was $9.8 million and $13.5 million at December 29, 2018 and December 30, 2017 , respectively. As of December 29, 2018 and December 30, 2017 , total investments held for the NQDC Plans were $9.9 million and $10.8 million , respectively, and are included in other assets in the consolidated balance sheets. |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure Related Party Transactions [Abstract] | |
Related-party transactions | Related-party transactions The Company recognized revenues from its equity method investees, consisting of royalty income and sales of ice cream and other products, as follows (in thousands): Fiscal year ended December 29, December 30, December 31, Japan JV $ 1,874 1,745 1,873 South Korea JV 4,569 4,525 4,030 Australia JV 6,002 4,242 4,277 $ 12,445 10,512 10,180 At December 29, 2018 and December 30, 2017 , the Company had $5.5 million and $5.1 million , respectively, of receivables from its equity method investees, which were recorded in accounts receivable, net of allowance for doubtful accounts, in the consolidated balance sheets. The Company made net payments to its equity method investees totaling approximately $3.8 million , $3.3 million , and $3.2 million during fiscal years 2018 , 2017 , and 2016 , respectively, primarily for the purchase of ice cream products. Upon sale of the Company's ownership interest in the Spain JV in fiscal year 2016 (see note 6 ), the Company recovered approximately $1.0 million in notes receivable repayments. |
Allowance for doubtful accounts
Allowance for doubtful accounts | 12 Months Ended |
Dec. 29, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for doubtful accounts | Allowance for doubtful accounts The changes in the allowance for doubtful accounts were as follows (in thousands): Accounts receivable Short-term notes and other receivables Long-term notes and other Balance at December 26, 2015 $ 5,627 1,007 4,075 Provision for (recovery of) doubtful accounts, net 1,202 (189 ) (960 ) Write-offs and other (2,051 ) (479 ) (1,027 ) Balance at December 31, 2016 4,778 339 2,088 Provision for doubtful accounts, net 123 264 70 Write-offs and other (968 ) — (335 ) Balance at December 30, 2017 3,933 603 1,823 Provision for (recovery of) doubtful accounts, net 606 281 (256 ) Write-offs and other (955 ) — (81 ) Balance at December 29, 2018 $ 3,584 884 1,486 |
Quarterly financial data (unaud
Quarterly financial data (unaudited) | 12 Months Ended |
Dec. 29, 2018 | |
Income Statement [Abstract] | |
Quarterly financial data (unaudited) | Quarterly financial data (unaudited) Three months ended March 31, June 30, September 29, December 29, (In thousands, except per share data) Total revenues $ 301,342 350,640 350,011 319,624 Operating income 89,831 113,850 111,592 96,559 Net income 50,152 60,498 66,067 53,189 Earnings per share: Common—basic 0.58 0.73 0.80 0.64 Common—diluted 0.57 0.72 0.79 0.64 Three months ended April 1, July 1, September 30, December 30, (In thousands, except per share data) Total revenues $ 296,358 334,176 330,071 314,946 Operating income 86,773 106,836 105,272 92,161 Net income 44,293 51,092 41,170 134,654 Earnings per share: Common—basic 0.48 0.56 0.46 1.49 Common—diluted 0.48 0.55 0.45 1.47 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal year The Company operates and reports financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within fiscal years 2018 and 2017 reflect the results of operations for the 52-week periods ended December 29, 2018 and December 30, 2017 , respectively, and fiscal year 2016 reflects the results of operations for the 53-week period ended December 31, 2016 . |
Basis of Presentation and Consolidation | (b) Basis of presentation and consolidation The accompanying consolidated financial statements include the accounts of DBGI and subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. In fiscal year 2018, we adopted new guidance for revenue recognition related to contracts with customers and restated all financial statement amounts for fiscal years 2017 and 2016 (see note 3 ). We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The principal entities in which we possess a variable interest include franchise entities and our equity method investees. We do not possess any ownership interests in franchise entities, except for our investments in various entities that are accounted for under the equity method. Additionally, we generally do not provide financial support to franchise entities in a typical franchise relationship. As our franchise and license arrangements provide our franchisee and licensee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. The Company’s maximum exposure to loss resulting from involvement with potential franchise VIEs is attributable to aged trade and notes receivable balances, outstanding loan guarantees, and future lease payments due from franchisees (see note 11 ). Noncontrolling interests included within total stockholders’ deficit as of December 26, 2015 represented interests in a franchise entity that was deemed a variable interest entity and for which the Company was the primary beneficiary. During fiscal year 2016, the Company deconsolidated the noncontrolling interests from the Company's consolidated financial statements as it was no longer the primary beneficiary of the franchise entity. |
Accounting Estimates | Accounting estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. Significant estimates are made in the calculations and assessments of the following: (a) allowance for doubtful accounts and notes receivables, (b) impairment of tangible and intangible assets, (c) other-than-temporary impairment of equity method investments, (d) income taxes, (e) share-based compensation, (f) lease accounting estimates, (g) gift card/certificate breakage, and (h) contingencies. Estimates are based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when they are not readily apparent from other sources. We adjust such estimates and assumptions when facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. |
Cash and Cash Equivalents and Restricted Cash | Cash, cash equivalents, and restricted cash The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 29, 2018 and December 30, 2017 , we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents. Cash held related to the advertising funds and the Company’s gift card/certificate programs are classified as unrestricted cash as there are no legal restrictions on the use of these funds; however, the Company intends to use these funds solely to support the advertising funds and gift card/certificate programs rather than to fund operations. Total cash balances related to the advertising funds and gift card/certificate programs as of December 29, 2018 and December 30, 2017 were $207.3 million and $175.7 million , respectively. |
Fair Value of Financial Instruments | Fair value of financial instruments The carrying amounts of accounts receivable, notes and other receivables, accounts payable, and other current liabilities approximate fair value because of their short-term nature. For long-term receivables, we review the creditworthiness of the counterparty on a quarterly basis, and adjust the carrying value as necessary. We believe the carrying value of long-term receivables of $5.0 million and $4.9 million as of December 29, 2018 and December 30, 2017 , respectively, approximates fair value. Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Financial assets and liabilities measured at fair value on a recurring basis as of December 29, 2018 and December 30, 2017 are summarized as follows (in thousands): December 29, 2018 December 30, 2017 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 9,906 9,906 10,836 10,836 Total assets $ 9,906 9,906 10,836 10,836 Liabilities: Deferred compensation liabilities $ 9,759 9,759 13,543 13,543 Total liabilities $ 9,759 9,759 13,543 13,543 The deferred compensation liabilities relate to the Dunkin’ Brands, Inc. non-qualified deferred compensation plans (“NQDC Plans”), which allow for pre-tax deferral of compensation for certain qualifying employees and directors (see note 18 ). Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to hypothetical investments. The Company holds company-owned life insurance policies to partially offset the Company’s liabilities under the NQDC Plans. The changes in the fair value of any company-owned life insurance policies are derived using determinable cash surrender value. As such, the company-owned life insurance policies are classified within Level 2, as defined under U.S. GAAP. The carrying value and estimated fair value of long-term debt as of December 29, 2018 and December 30, 2017 were as follows (in thousands): December 29, 2018 December 30, 2017 Financial liabilities Carrying value Estimated fair value Carrying value Estimated fair value Long-term debt $ 3,042,276 3,011,843 3,067,357 3,156,099 The estimated fair value of our long-term debt is estimated primarily based on current market rates for debt with similar terms and remaining maturities or current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, the estimated fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP. |
Inventories | Inventories Inventories consist primarily of ice cream products sold to certain international markets that are in-transit from our third-party manufacturer to our international licensees, during which time we hold title to such products. The majority of ice cream products are purchased from one supplier. Inventories are valued at the lower of cost or estimated net realizable value, and cost is generally determined based on the actual cost of the specific inventory sold. An immaterial amount of inventories are included within prepaid expenses and other current assets in the consolidated balance sheets. |
Property and Equipment | Property, equipment, and software Property, equipment, and software are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or the remaining lease term of the related asset. Estimated useful lives are as follows: Years Buildings 20 – 35 Leasehold improvements 5 – 20 Store, production, and other equipment 3 – 10 Software 3 – 7 Depreciation related to the U.S. Advertising Funds segment is included within advertising expenses in the consolidated statements of operations. Routine maintenance and repair costs are charged to expense as incurred. Major improvements, additions, or replacements that extend the life, increase capacity, or improve the safety or the efficiency of property are capitalized at cost and depreciated. Major improvements to leased property are capitalized as leasehold improvements and depreciated. Interest costs incurred during the acquisition period of capital assets are capitalized as part of the cost of the asset and depreciated. |
Leases | Leases When determining lease terms, we begin with the point at which the Company obtains control and possession of the leased properties. We include option periods for which failure to renew the lease imposes a penalty on the Company in such an amount that the renewal appears, at the inception of the lease, to be reasonably assured, which generally includes option periods through the end of the related franchise agreement term. We also include any rent holidays in the determination of the lease term. We record rent expense and rental income for leases and subleases, respectively, that contain scheduled rent increases on a straight-line basis over the lease term as defined above. In certain cases, contingent rentals are based on sales levels of our franchisees, in excess of stipulated amounts. Contingent rentals are included in rental income and rent expense as they are earned or accrued, respectively. We occasionally provide to our sublessees, or receive from our landlords, tenant improvement allowances. Tenant improvement allowances paid to our sublessees are recorded as a deferred rent asset. For fixed asset and/or leasehold purchases for which we receive tenant improvement allowances from our landlords, we record the property and equipment and/or leasehold improvements gross and establish a deferred rent obligation. The deferred lease assets and obligations are amortized on a straight-line basis over the determined sublease and lease terms, respectively. Management regularly reviews sublease arrangements, where we are the lessor, for losses on sublease arrangements. We recognize a loss, discounted using credit-adjusted risk-free rates, when costs expected to be incurred under an operating prime lease exceed the anticipated future revenue stream of the operating sublease. Furthermore, for properties where we do not currently have an operational franchise or other third-party sublessee and are under long-term lease agreements, the present value of any remaining liability under the lease, discounted using credit-adjusted risk-free rates and net of estimated sublease recovery, is recognized as a liability and recorded as an operating expense at the time we cease use of the property. The value of any equipment and leasehold improvements related to a closed store is assessed for potential impairment (see note 2(i)). ( |
Impairment of Long-Lived Assets | Impairment of long-lived assets Long-lived assets that are used in operations are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through undiscounted future cash flows. Recognition and measurement of a potential impairment is performed on assets grouped with other assets and liabilities at the lowest level where identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment loss is the amount by which the carrying amount of a long-lived asset or asset group exceeds its estimated fair value. Fair value is generally estimated by internal specialists based on the present value of anticipated future cash flows or, if required, with the assistance of independent third-party valuation specialists, depending on the nature of the assets or asset group. |
Equity method investments | Equity method investments The Company’s equity method investments consist of interests in B-R 31 Ice Cream Co., Ltd. (“Japan JV”), BR-Korea Co., Ltd. (“South Korea JV”), and Palm Oasis Pty. Ltd. (“Australia JV”), which are accounted for in accordance with the equity method. The Company also previously accounted for an ownership interest in Coffee Alliance, S.L. (“Spain JV”) in accordance with the equity method, which interest was sold during fiscal year 2016 (see note 6 ). The Company evaluates its equity method investments for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the fair value of the investment. If a loss in value has occurred and is deemed to be other than temporary, an impairment loss is recorded. Several factors are reviewed to determine whether a loss has occurred that is other than temporary, including absence of an ability to recover the carrying amount of the investment, the length and extent of the fair value decline, and the financial condition and future prospects of the investee. |
Goodwill and Other Intangible Assets | Goodwill and other intangible assets Goodwill and trade names (“indefinite-lived intangibles”) have been assigned to our reporting units, which are also our operating segments, for purposes of impairment testing. Dunkin' U.S., Dunkin' International, Baskin-Robbins U.S., and Baskin-Robbins International have indefinite-lived intangibles associated with them. We evaluate the remaining useful life of our trade names to determine whether current events and circumstances continue to support an indefinite useful life. In addition, all of our indefinite-lived intangible assets are tested for impairment annually. We first assess qualitative factors to determine whether it is more likely than not that a trade name is impaired. In the event we were to determine that the carrying value of a trade name would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of the fair value of each trade name with its carrying value, with any excess of carrying value over fair value being recognized as an impairment loss. For goodwill, we first perform a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. In the event we were to determine that a reporting unit’s carrying value would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of each reporting unit’s fair value to its carrying value. The fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties. If the carrying value of a reporting unit exceeds its fair value, goodwill impairment is calculated as the difference between the carrying value of the reporting unit and its fair value, but not exceeding the carrying amount of goodwill allocated to that reporting unit. We have selected the first day of our fiscal third quarter as the date on which to perform our annual impairment test for all indefinite-lived intangible assets. We also test for impairment whenever events or circumstances indicate that the fair value of such indefinite-lived intangibles has been impaired. Other intangible assets consist primarily of franchise and international license rights (“franchise rights”) and operating lease interests acquired related to our prime leases and subleases (“operating leases acquired”). Franchise rights and favorable operating leases acquired recorded in the consolidated balance sheets were valued using an appropriate valuation method as of the date of acquisition. Amortization of franchise rights and favorable operating leases acquired is recorded as amortization expense in the consolidated statements of operations and amortized over the respective franchise and lease terms using the straight-line method. Unfavorable operating leases acquired related to our prime and subleases are recorded in the liability section of the consolidated balance sheets and are amortized into rental expense and rental income, respectively, over the base lease term of the respective leases using the straight-line method. The weighted average amortization period for all unfavorable operating leases acquired is 18 years. Management makes adjustments to the carrying amount of such intangible assets and unfavorable operating leases acquired if they are deemed to be impaired using the methodology for long-lived assets (see note 2(i)), or when such license or lease agreements are reduced or terminated. |
Contingencies | Contingencies The Company records reserves for legal and other contingencies when information available to the Company indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Predicting the outcomes of claims and litigation and estimating the related costs and exposures involve substantial uncertainties that could cause actual costs to vary materially from estimates. Legal costs incurred in connection with legal and other contingencies are expensed as the costs are incurred. |
Foreign Currency Translation | Foreign currency translation We translate assets and liabilities of non-U.S. operations into U.S. dollars at rates of exchange in effect at the balance sheet date, and revenues and expenses at the average exchange rates prevailing during the period. Resulting translation adjustments are recorded as a separate component of other comprehensive income (loss) and stockholders’ deficit, net of deferred taxes. Foreign currency translation adjustments primarily result from our equity method investments, as well as subsidiaries located in Canada, the UK, Australia, and other foreign jurisdictions. Transactions resulting in foreign exchange gains and losses are included in the consolidated statements of operations. |
Revenue Recognition | Revenue recognition Revenue is recognized in accordance with a five-step revenue model, as follows: identifying the contract with the customer; identifying the performance obligations in the contract; determining the transaction price; allocating the transaction price to the performance obligations; and recognizing revenue when (or as) the entity satisfies a performance obligation. Franchise fees and royalty income Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. The franchise agreements and SDAs typically require the franchisee to pay initial nonrefundable franchise fees prior to opening the respective restaurants and continuing fees, or royalty income, on a weekly basis based upon a percentage of franchisee gross sales. The initial term of domestic franchise agreements is typically 20 years. Prior to the end of the franchise term or as otherwise provided by the Company, a franchisee may elect to renew the term of a franchise agreement and, if approved, will typically pay a renewal fee upon execution of the renewal term. If approved, a franchisee may transfer a franchise agreement or SDA to a new or existing franchisee, at which point a transfer fee is paid. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise/license agreement, territory agreement, or renewal agreement. Internationally, the Company sells master franchise agreements that grant the master franchisee the right to develop and operate, and in some instances sub-franchise, a certain number of restaurants within a particular geographic area. The master franchisee is typically required to pay an upfront market entry fee upon entering into the master franchise agreement and an upfront initial franchise fee for each developed restaurant prior to each respective opening. For the Dunkin' brand and in certain Baskin-Robbins international markets, the master franchisee will also pay continuing fees, or royalty income, generally on a monthly basis based upon a percentage of sales. Generally, the master franchise agreement serves as the franchise agreement for the underlying restaurants, and the initial franchise term provided for each restaurant typically ranges between 10 and 20 years. Generally, the franchise license granted for each individual restaurant within an arrangement represents a single performance obligation. Therefore, initial franchise fees and market entry fees for each arrangement are allocated to each individual restaurant and recognized over the term of the respective franchise agreement from the date of the restaurant opening. Royalty income is also recognized over the term of the respective franchise agreement based on the royalties earned each period as the underlying sales occur. Renewal fees are generally recognized over the renewal term for the respective restaurant from the start of the renewal period. Transfer fees are recognized over the remaining term of the franchise agreement beginning at the time of transfer. Incentives provided to franchisees in conjunction with a franchise/license agreement, territory agreement, or renewal agreement are recognized over the remaining term of the respective agreement. Additionally, for Baskin-Robbins international markets that do not pay a royalty, a portion of the consideration from the sales of ice cream and other products is allocated to royalty income as consideration for the use of the franchise license, which is recognized when the related sales occur and is estimated based on royalty rates in effect for markets where the franchise license is sold on a standalone basis. Fees received or receivable that are expected to be recognized as revenue within one year are classified as current deferred revenue in the consolidated balance sheets. Advertising fees and related income Domestically and in limited international markets, franchise agreements typically require the franchisee to pay continuing advertising fees on a weekly basis based on a percentage of franchisee gross sales, which represents a portion of the consideration received for the single performance obligation of the franchise license. Continuing advertising fees are recognized over the term of the respective franchise agreement based on the fees earned each period as the underlying sales occur. The Company and its franchisees sell gift cards that are redeemable for products in our Dunkin’ and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets. There are no expiration dates or service fees charged on the gift cards. While the franchisees continue to honor all gift cards presented for payment, the likelihood of redemption may be determined to be remote for certain cards due to long periods of inactivity. In these circumstances, the Company may recognize revenue from unredeemed gift cards (“breakage revenue”) if they are not subject to unclaimed property laws. For Dunkin’ gift cards enrolled in the DD Perks® Rewards loyalty program and other cards with expected similar redemption behavior, breakage is estimated and recognized at the point in time when the likelihood of redemption of any remaining card balance becomes remote, generally after a period of sufficient inactivity. Breakage revenue on all other Dunkin’ gift cards and all Baskin-Robbins gift cards is estimated and recognized over time in proportion to actual gift card redemptions, based on historical redemption rates. Significant judgment is required in estimating breakage rates and in determining whether to recognize breakage revenue over time or when the likelihood of redemption becomes remote. The Company also collects gift card program service fees from franchisees to offset the costs to administer the gift card program. The gift card program service fees are based on the volume of gift card transactions processed and are recognized as the underlying transactions occur. Rental income Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement allowances paid (see note 2(h)). The differences between the straight-line rent amounts and amounts receivable under the leases are recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such thresholds are actually achieved. Deferred contingent rentals are recorded as deferred revenue in current liabilities in the consolidated balance sheets. Sales of ice cream and other products We distribute Baskin-Robbins ice cream products and, in limited cases, Dunkin’ products to franchisees and licensees in certain international locations. Revenue from the sale of ice cream and other products, including distribution fees, is recognized when title and risk of loss transfers to the buyer, which is generally upon delivery. Payment for ice cream and other products is generally due within a relatively short period of time subsequent to delivery. Sales at company-operated restaurants Retail store revenues at company-operated restaurants were recognized when payments were tendered at the point of sale, net of sales tax and other sales-related taxes. As of December 29, 2018, December 30, 2017, and December 31, 2016, the Company did not own or operate any restaurants. Other revenues Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of restaurants that were not company-operated to new or existing franchisees. Licensing fees are recognized over the term of the expected license agreement, with sales-based license fees being recognized based on the amount earned each period as the underlying sales occur. Gains on the refranchise or sale of a restaurant are recognized over the term of the related agreement. |
Allowance for doubtful accounts | Allowance for doubtful accounts We monitor the financial condition of our franchisees and licensees and record provisions for estimated losses on receivables when we believe that our franchisees or licensees are unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Included in the allowance for doubtful notes and accounts receivables is a provision for uncollectible royalty, advertising fee, lease, ice cream, and licensing fee receivables. |
Share-Based Payment | Share-based payments We measure compensation cost at fair value on the date of grant for all share-based awards and recognize compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award. Forfeitures are estimated based on historical and forecasted turnover. As a result of the required adoption of new accounting guidance, the Company began recording excess tax benefits to the provision for income taxes in the consolidated statements of operations beginning in fiscal year 2017, instead of additional paid-in capital in the consolidated balance sheets. As a result, the Company recorded excess tax benefits of $19.7 million and $7.8 million for fiscal years 2018 and 2017, respectively, to provision for income taxes in the consolidated statements of operations, and recorded $2.7 million for fiscal year 2016 to additional paid-in capital in the consolidated balance sheets. |
Income Taxes | Income taxes Deferred tax assets and liabilities are recorded for the expected future tax consequences of items that have been included in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of assets and liabilities and the respective tax bases of assets and liabilities using enacted tax rates that are expected to apply in years in which the temporary differences are expected to reverse. The effects of changes in tax rates and changes in apportionment of income between tax jurisdictions on deferred tax assets and liabilities are recognized in the consolidated statements of operations in the year in which the law is enacted or change in apportionment occurs (see note 16 ). Valuation allowances are provided when the Company does not believe it is more likely than not that it will realize the benefit of identified tax assets. We have made an accounting policy election to treat taxes due under the global intangible low-taxed income provision as a current period expense. A tax position taken or expected to be taken in a tax return is recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Estimates of interest and penalties on unrecognized tax benefits are recorded in the provision for income taxes. |
Comprehensive Income | Comprehensive income Comprehensive income is primarily comprised of net income, foreign currency translation adjustments, and gains and losses on interest rate swaps, and is reported in the consolidated statements of comprehensive income, net of taxes, for all periods presented. |
Deferred Financing Costs | Debt issuance costs Debt issuance costs represent capitalizable costs incurred related to the issuance and refinancing of the Company’s long-term debt (see note 8 ). As of December 29, 2018 and December 30, 2017 , debt issuance costs of $29.5 million and $34.5 million , respectively, are included in long-term debt, net in the consolidated balance sheets, and are being amortized over the remaining maturities of the debt, based on projected required repayments, using the effective interest rate method |
Concentration of Credit Risk | Concentration of credit risk The Company is subject to credit risk through its accounts receivable consisting primarily of amounts due from franchisees and licensees for franchise fees, royalty income, advertising fees, and sales of ice cream and other products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. As of each of December 29, 2018 and December 30, 2017 , one master licensee, including its majority-owned subsidiaries, accounted for approximately 11% of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for fiscal years 2018 , 2017 , or 2016 . (u) Advertising expenses Advertising expenses in the consolidated statements of operations includes advertising expenses incurred by the Company, primarily through advertising funds, including those expenses for the administration of the gift card program. The Company expenses production costs of commercial advertising upon first airing and expenses the costs of communicating the advertising in the period in which the advertising occurs. Costs of print advertising and certain promotion-related items are deferred and expensed the first time the advertising is displayed. Prepaid expenses and other current assets in the consolidated balance sheets include $15.0 million and $15.5 million at December 29, 2018 and December 30, 2017 , respectively, that was related to advertising. Advertising expenses are allocated to interim periods in relation to the related revenues. When revenues of the advertising fund exceed the related advertising expenses, advertising costs are accrued up to the amount of revenues. |
Recent Accounting Pronouncements | Recent accounting pronouncements Recently adopted accounting pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued new guidance for revenue recognition related to contracts with customers (“ASC 606”), except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. The Company retrospectively adopted this new guidance in fiscal year 2018. See note 3 for further disclosure of the impact of the new guidance. In March 2016, the FASB issued new guidance which aligns recognition of breakage for prepaid stored-value products such as prepaid gift cards with the breakage guidance in ASC 606. The new guidance requires recognition of the estimated breakage amount either proportionally as redemption occurs or when redemption is remote, if the entity does not expect to be entitled to breakage. The Company adopted this guidance in fiscal year 2018. The adoption of this guidance had no impact on the Company's consolidated financial statements. In February 2018, the FASB issued new guidance allowing companies the option to reclassify from accumulated other comprehensive loss to accumulated deficit the stranded income tax effects resulting from the enactment of the tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”) that was enacted on December 22, 2017. The Company early adopted this standard during the first quarter of fiscal year 2018 and has elected to present the change in the period of adoption. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. Recent accounting pronouncements not yet adopted In February 2016, the FASB issued new guidance for lease accounting, which replaces existing lease accounting guidance. The new guidance aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This guidance is effective for the Company in fiscal year 2019 with early adoption permitted, and modified retrospective application is required with an option to not restate comparative periods in the period of adoption. The Company will adopt this new guidance in fiscal year 2019 without restating comparative periods. Substantially all of the Company’s operating lease commitments will be subject to the new guidance and will be recognized as operating lease liabilities and right-of-use assets upon adoption, initially measured as the present value of future lease payments, thereby having a material impact to its consolidated balance sheet. We do not expect the adoption of the new guidance to have a material impact on the Company's consolidated statements of operations or cash flows, or compliance with debt agreements. The Company expects to elect the package of practical expedients permitted under the new guidance, which includes allowing the Company to continue utilizing historical classification of leases. However, the Company does not expect to adopt the hindsight practical expedient, and therefore expects to continue to utilize lease terms determined under existing lease guidance. The Company is party to various operating leases for property, including land and buildings, as well as leases for office equipment and automobiles. The Company expects the adoption of the new guidance will result in the recognition of operating lease assets and liabilities of approximately $390 million to $405 million and $435 million to $450 million , respectively, for these leases. The difference between the assets and liabilities will be attributable to the reclassification of certain existing lease-related assets and liabilities as an adjustment to the right-of-use assets. The Company has not yet finalized quantifying the impact, if any, of leases included in certain other contracts. The accounting guidance for lessors will remain largely unchanged from previous guidance, with the exception of the presentation of certain lease costs that the Company passes through to lessees, including but not limited to, property taxes, insurance, and maintenance. These costs are generally paid by the Company and reimbursed by the lessee. Historically, these costs have been recorded on a net basis in the consolidated statements of operations, but will be presented gross upon adoption of the new guidance. The Company expects the adoption of the new guidance will result in the recognition of additional rental income and occupancy expenses–franchised restaurants of approximately $15 million to $20 million annually beginning in fiscal year 2019. The Company continues to evaluate the impact the adoption of this new guidance will have on financial statement disclosures, in addition to evaluating business processes and internal controls related to lease accounting to assist in the ongoing application of the new guidance. |
Subsequent Events | Subsequent events Subsequent events have been evaluated up through the date that these consolidated financial statements were filed. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of December 29, 2018 and December 30, 2017 were as follows (in thousands): December 29, December 30, Cash and cash equivalents $ 517,594 1,018,317 Restricted cash 79,008 94,047 Restricted cash, included in Other assets 1,719 1,735 Total cash, cash equivalents, and restricted cash $ 598,321 1,114,099 |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis as of December 29, 2018 and December 30, 2017 are summarized as follows (in thousands): December 29, 2018 December 30, 2017 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 9,906 9,906 10,836 10,836 Total assets $ 9,906 9,906 10,836 10,836 Liabilities: Deferred compensation liabilities $ 9,759 9,759 13,543 13,543 Total liabilities $ 9,759 9,759 13,543 13,543 |
Schedule of Carrying Values and Fair Values of Debt | The carrying value and estimated fair value of long-term debt as of December 29, 2018 and December 30, 2017 were as follows (in thousands): December 29, 2018 December 30, 2017 Financial liabilities Carrying value Estimated fair value Carrying value Estimated fair value Long-term debt $ 3,042,276 3,011,843 3,067,357 3,156,099 |
Property and Equipment | Estimated useful lives are as follows: Years Buildings 20 – 35 Leasehold improvements 5 – 20 Store, production, and other equipment 3 – 10 Software 3 – 7 Property, equipment, and software at December 29, 2018 and December 30, 2017 consisted of the following (in thousands): December 29, 2018 December 30, 2017 Land $ 40,394 35,673 Buildings 55,771 50,640 Leasehold improvements 157,976 157,310 Software, store, production, and other equipment 72,165 64,491 Construction in progress and software under development 30,446 7,270 Property, equipment, and software, gross 356,752 315,384 Accumulated depreciation (147,550 ) (133,842 ) Property, equipment, and software, net $ 209,202 181,542 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Revenues are disaggregated by timing of revenue recognition and reconciled to reportable segment revenues as follows (in thousands): Fiscal year ended ended December 29, 2018 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 483,883 29,375 20,111 7,532 — 540,901 15,096 555,997 Franchise fees 18,029 1,276 2,196 844 — 22,345 — 22,345 Advertising fees and related income — — — — 454,608 454,608 18,516 473,124 Other revenues 2,287 10,278 5 8 — 12,578 34,358 46,936 Total revenues recognized over time 504,199 40,929 22,312 8,384 454,608 1,030,432 67,970 1,098,402 Revenues recognized at a point in time: Sales of ice cream and other products — 3,261 — 106,284 — 109,545 (14,348 ) 95,197 Sales at company-operated restaurants — — — — — — — — Other revenues 1,698 257 29 170 — 2,154 985 3,139 Total revenues recognized at a point in time 1,698 3,518 29 106,454 — 111,699 (13,363 ) 98,336 Total revenues recognized under ASC 606 505,897 44,447 22,341 114,838 454,608 1,142,131 54,607 1,196,738 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 20,466 20,466 Rental income 100,913 2,971 — 529 — 104,413 — 104,413 Total revenues not subject to ASC 606 100,913 2,971 — 529 — 104,413 20,466 124,879 Total revenues $ 606,810 47,418 22,341 115,367 454,608 1,246,544 75,073 1,321,617 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.” Fiscal year ended December 30, 2017 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 463,874 29,724 17,965 7,009 — 518,572 14,271 532,843 Franchise fees 18,455 978 1,853 1,077 — 22,363 — 22,363 Advertising fees and related income — — — — 440,441 440,441 1,542 441,983 Other revenues 2,185 10,564 7 8 — 12,764 32,893 45,657 Total revenues recognized over time 484,514 41,266 19,825 8,094 440,441 994,140 48,706 1,042,846 Revenues recognized at a point in time: Sales of ice cream and other products — 3,448 — 106,036 — 109,484 (13,096 ) 96,388 Sales at company-operated restaurants — — — — — — — — Other revenues 1,446 405 (55 ) 238 — 2,034 639 2,673 Total revenues recognized at a point in time 1,446 3,853 (55 ) 106,274 — 111,518 (12,457 ) 99,061 Total revenues recognized under ASC 606 485,960 45,119 19,770 114,368 440,441 1,105,658 36,249 1,141,907 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 29,001 29,001 Rental income 101,073 3,089 — 481 — 104,643 — 104,643 Total revenues not subject to ASC 606 101,073 3,089 — 481 — 104,643 29,001 133,644 Total revenues $ 587,033 48,208 19,770 114,849 440,441 1,210,301 65,250 1,275,551 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.” Fiscal year ended December 31, 2016 Dunkin' U.S. Baskin-Robbins U.S. Dunkin' International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 448,609 28,909 16,791 6,618 — 500,927 14,315 515,242 Franchise fees 16,608 734 1,849 1,963 — 21,154 — 21,154 Advertising fees and related income — — — — 429,952 429,952 1,484 431,436 Other revenues 2,057 11,107 5 15 — 13,184 28,519 41,703 Total revenues recognized over time 467,274 40,750 18,645 8,596 429,952 965,217 44,318 1,009,535 Revenues recognized at a point in time: Sales of ice cream and other products — 2,632 — 110,628 — 113,260 (12,718 ) 100,542 Sales at company-operated restaurants 11,975 — — — — 11,975 — 11,975 Other revenues 1,296 529 (17 ) 357 — 2,165 1,001 3,166 Total revenues recognized at a point in time 13,271 3,161 (17 ) 110,985 — 127,400 (11,717 ) 115,683 Total revenues recognized under ASC 606 480,545 43,911 18,628 119,581 429,952 1,092,617 32,601 1,125,218 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 22,117 22,117 Rental income 97,540 2,994 — 458 — 100,992 28 101,020 Total revenues not subject to ASC 606 97,540 2,994 — 458 — 100,992 22,145 123,137 Total revenues $ 578,085 46,905 18,628 120,039 429,952 1,193,609 54,746 1,248,355 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and breakage and other revenue related to the gift card program, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as “Other.” |
Contract balances | Information about receivables and deferred revenue subject to ASC 606 is as follows (in thousands): December 29, December 30, Balance Sheet Classification Receivables $ 81,609 76,455 Accounts receivable, net and Notes and other receivables, net Deferred revenue: Current $ 24,002 27,724 Deferred revenue—current Long-term 327,333 361,458 Deferred revenue—long term Total $ 351,335 389,182 |
Franchised and company-operated points of distribution | The changes in franchised and company-operated points of distribution were as follows: Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Systemwide points of distribution: Franchised points of distribution in operation—beginning of year 20,520 20,080 19,308 Franchised points of distribution—opened 1,213 1,339 1,540 Franchised points of distribution—closed (821 ) (899 ) (819 ) Net transfers from company-operated points of distribution — — 51 Franchised points of distribution in operation—end of year 20,912 20,520 20,080 Company-operated points of distribution—end of year — — — Total systemwide points of distribution—end of year 20,912 20,520 20,080 |
Estimated revenue expected to be recognized in the future related to performance obligations | Estimated revenue expected to be recognized in the future related to performance obligations that are either unsatisfied or partially satisfied at December 29, 2018 is as follows (in thousands): Fiscal year: 2019 $ 22,627 2020 18,996 2021 19,058 2022 18,981 2023 18,872 Thereafter 217,348 Total $ 315,882 |
Impacts to prior period information, revenue recognition | The new guidance for revenue recognition impacted the Company's previously reported financial statements as follows: Consolidated Balance Sheets December 30, 2017 (In thousands) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Other revenue transactions Restated Assets Current assets: Cash and cash equivalents $ 1,018,317 — — — 1,018,317 Restricted cash 94,047 — — — 94,047 Accounts receivables, net 51,442 — 18,075 — 69,517 Notes and other receivables, net 51,082 — 1,250 — 52,332 Restricted assets of advertising funds 47,373 — (47,373 ) — — Prepaid income taxes 21,879 — 48 — 21,927 Prepaid expenses and other current assets 32,695 — 15,498 — 48,193 Total current assets 1,316,835 — (12,502 ) — 1,304,333 Property, equipment, and software, net 169,005 — 12,537 — 181,542 Equity method investments 140,615 — — — 140,615 Goodwill 888,308 — — — 888,308 Other intangibles assets, net 1,357,157 — — — 1,357,157 Other assets 65,464 — 14 — 65,478 Total assets $ 3,937,384 — 49 — 3,937,433 Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Current portion of long-term debt $ 31,500 — — — 31,500 Capital lease obligations 596 — — — 596 Accounts payable 16,307 — 37,110 — 53,417 Liabilities of advertising funds 58,014 — (58,014 ) — — Deferred revenue 39,395 1,502 (550 ) 4,529 44,876 Other current liabilities 326,078 — 29,032 — 355,110 Total current liabilities 471,890 1,502 7,578 4,529 485,499 Long-term debt, net 3,035,857 — — — 3,035,857 Capital lease obligations 7,180 — — — 7,180 Unfavorable operating leases acquired 9,780 — — — 9,780 Deferred revenue 11,158 328,183 (7,518 ) 29,635 361,458 Deferred income taxes, net 315,249 (91,488 ) — (9,416 ) 214,345 Other long-term liabilities 77,823 — 30 — 77,853 Total long-term liabilities 3,457,047 236,695 (7,488 ) 20,219 3,706,473 Stockholders’ equity (deficit) Preferred stock — — — — — Common stock 90 — — — 90 Additional paid-in-capital 724,114 — — — 724,114 Treasury stock, at cost (1,060 ) — — — (1,060 ) Accumulated deficit (705,007 ) (238,197 ) (196 ) (24,748 ) (968,148 ) Accumulated other comprehensive loss (9,690 ) — 155 — (9,535 ) Stockholders’ equity (deficit) 8,447 (238,197 ) (41 ) (24,748 ) (254,539 ) Total liabilities and stockholders’ equity (deficit) $ 3,937,384 — 49 — 3,937,433 Consolidated Statements of Operations Fiscal year ended December 30, 2017 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 592,689 (51,754 ) — 14,271 — 555,206 Advertising fees and related income — — 470,984 — — 470,984 Rental income 104,643 — — — — 104,643 Sales of ice cream and other products 110,659 — — (14,271 ) — 96,388 Other revenues 52,510 (5,838 ) — — 1,658 48,330 Total revenues 860,501 (57,592 ) 470,984 — 1,658 1,275,551 Operating costs and expenses: Occupancy expenses—franchised restaurants 60,301 — — — — 60,301 Cost of ice cream and other products 77,012 — — — — 77,012 Advertising expenses — — 476,157 — — 476,157 General and administrative expenses, net 248,975 — (5,147 ) — — 243,828 Depreciation 20,084 — — — — 20,084 Amortization of other intangible assets 21,335 — — — — 21,335 Long-lived asset impairment charges 1,617 — — — — 1,617 Total operating costs and expenses 429,324 — 471,010 — — 900,334 Net income of equity method investments 15,198 — — — — 15,198 Other operating income, net 627 — — — — 627 Operating income 447,002 (57,592 ) (26 ) — 1,658 391,042 Other income (expense), net: Interest income 3,313 — — — — 3,313 Interest expense (104,423 ) — — — — (104,423 ) Loss on debt extinguishment and refinancing transactions (6,996 ) — — — — (6,996 ) Other income, net 391 — — — — 391 Total other expense, net (107,715 ) — — — — (107,715 ) Income before income taxes 339,287 (57,592 ) (26 ) — 1,658 283,327 Provision (benefit) for income taxes (a) (11,622 ) 18,656 — — 5,084 12,118 Net income $ 350,909 (76,248 ) (26 ) — (3,426 ) 271,209 Earnings per share—basic $ 3.86 2.99 Earnings per share—diluted 3.80 2.94 (a) Adjustments for “Franchise fees” and “Other revenue transactions” include tax expense of $42.2 million and $4.3 million , respectively, related to the enactment of the Tax Cuts and Jobs Act, consisting of the re-measurement of the related deferred tax balances using the lower enacted corporate tax rate. Consolidated Statements of Operations Fiscal year ended December 31, 2016 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 549,571 (27,490 ) — 14,315 — 536,396 Advertising fees and related income — — 453,553 — — 453,553 Rental income 101,020 — — — — 101,020 Sales of ice cream and other products 114,857 — — (14,315 ) — 100,542 Sales at company-operated restaurants 11,975 — — — — 11,975 Other revenues 51,466 (5,072 ) — — (1,525 ) 44,869 Total revenues 828,889 (32,562 ) 453,553 — (1,525 ) 1,248,355 Operating costs and expenses: Occupancy expenses—franchised restaurants 57,409 — — — — 57,409 Cost of ice cream and other products 77,608 — — — — 77,608 Company-operated restaurant expenses 13,591 — — — — 13,591 Advertising expenses — — 458,568 — — 458,568 General and administrative expenses, net 246,814 — (4,990 ) — — 241,824 Depreciation 20,458 — — — — 20,458 Amortization of other intangible assets 22,079 — — — — 22,079 Long-lived asset impairment charges 149 — — — — 149 Total operating costs and expenses 438,108 — 453,578 — — 891,686 Net income of equity method investments 14,552 — — — — 14,552 Other operating income, net 9,381 — — — — 9,381 Operating income 414,714 (32,562 ) (25 ) — (1,525 ) 380,602 Other income (expense), net: Interest income 582 — — — — 582 Interest expense (100,852 ) — — — — (100,852 ) Other loss, net (1,195 ) — — — — (1,195 ) Total other expense, net (101,465 ) — — — — (101,465 ) Income before income taxes 313,249 (32,562 ) (25 ) — (1,525 ) 279,137 Provision for income taxes 117,673 (13,205 ) — — (620 ) 103,848 Net income $ 195,576 (19,357 ) (25 ) — (905 ) 175,289 Earnings per share—basic $ 2.14 1.91 Earnings per share—diluted 2.11 1.89 The adoption of the new revenue recognition guidance had no impact on the Company’s total cash flows. Adjustments presented in the cash flow information below result from full consolidation of the advertising funds, and reflect the investing activities, consisting solely of additions to property, equipment, and software, of such funds. Select Cash Flow Information (In thousands) Fiscal year ended December 30, 2017 Previously reported Adjustments for new revenue recognition guidance Restated Net cash provided by operating activities $ 276,908 6,449 283,357 Net cash used in investing activities (13,854 ) (6,449 ) (20,303 ) Net cash provided by financing activities 418,641 — 418,641 Increase in cash, cash equivalents, and restricted cash 682,267 — 682,267 Fiscal year ended December 31, 2016 Previously reported Adjustments for new revenue recognition guidance Restated Net cash provided by operating activities $ 276,827 5,652 282,479 Net cash provided by (used in) investing activities 1,343 (5,652 ) (4,309 ) Net cash used in financing activities (179,178 ) — (179,178 ) Increase in cash, cash equivalents, and restricted cash 98,717 — 98,717 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Estimated useful lives are as follows: Years Buildings 20 – 35 Leasehold improvements 5 – 20 Store, production, and other equipment 3 – 10 Software 3 – 7 Property, equipment, and software at December 29, 2018 and December 30, 2017 consisted of the following (in thousands): December 29, 2018 December 30, 2017 Land $ 40,394 35,673 Buildings 55,771 50,640 Leasehold improvements 157,976 157,310 Software, store, production, and other equipment 72,165 64,491 Construction in progress and software under development 30,446 7,270 Property, equipment, and software, gross 356,752 315,384 Accumulated depreciation (147,550 ) (133,842 ) Property, equipment, and software, net $ 209,202 181,542 |
Equity method investments (Tabl
Equity method investments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The Company’s ownership interests in its equity method investments as of December 29, 2018 and December 30, 2017 were as follows: Entity Ownership Japan JV 43.3% South Korea JV 33.3% Australia JV 20.0% The comparison between the carrying value of the Company’s investments in the Japan JV and the South Korea JV and the underlying equity in net assets of those investments is presented in the table below (in thousands): Japan JV South Korea JV December 29, December 30, December 29, December 30, Carrying value of investment $ 16,517 13,886 130,580 127,225 Underlying equity in net assets of investment 35,428 35,045 135,275 133,161 Carrying value less than the underlying equity in net assets (a) $ (18,911 ) (21,159 ) (4,695 ) (5,936 ) (a) The deficits of carrying value relative to the underlying equity in net assets of the Japan JV and the South Korea JV as of December 29, 2018 and December 30, 2017 are primarily comprised of impairments of long-lived assets, net of tax, recorded in fiscal years 2015 and 2011, respectively. |
Summary Financial Information For Joint Venture Operations | Summary financial information for the equity method investments on an aggregated basis was as follows (in thousands): December 29, December 30, Current assets $ 399,776 363,277 Current liabilities 143,689 140,113 Working capital 256,087 223,164 Property, plant, and equipment, net 162,718 165,442 Other assets 123,165 139,958 Long-term liabilities 55,830 48,429 Equity of equity method investments $ 486,140 480,135 Fiscal year ended December 29, December 30, December 31, Revenues $ 699,981 646,269 629,717 Gross profit 371,274 345,302 329,206 Net income 35,570 33,791 32,529 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes and carrying amounts of goodwill by reporting unit were as follows (in thousands): Dunkin’ U.S. Dunkin’ International Baskin-Robbins International Total Goodwill Accumulated impairment charges Net Balance Goodwill Accumulated impairment charges Net Balance Goodwill Accumulated impairment charges Net Balance Goodwill Accumulated impairment charges Net Balance Balances at December 31, 2016 $ 1,148,579 (270,441 ) 878,138 10,134 — 10,134 24,037 (24,037 ) — 1,182,750 (294,478 ) 888,272 Effects of foreign currency adjustments — — — 36 — 36 — — — 36 — 36 Balances at December 30, 2017 1,148,579 (270,441 ) 878,138 10,170 — 10,170 24,037 (24,037 ) — 1,182,786 (294,478 ) 888,308 Effects of foreign currency adjustments — — — (43 ) — (43 ) — — — (43 ) — (43 ) Balances at December 29, 2018 $ 1,148,579 (270,441 ) 878,138 10,127 — 10,127 24,037 (24,037 ) — 1,182,743 (294,478 ) 888,265 |
Other Intangible Assets | Other intangible assets at December 29, 2018 consisted of the following (in thousands): Weighted average amortization period (years) Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangibles: Franchise rights 20 $ 358,154 (229,764 ) 128,390 Favorable operating leases acquired 18 51,405 (35,998 ) 15,407 Indefinite-lived intangible: Trade names N/A 1,190,970 — 1,190,970 $ 1,600,529 (265,762 ) 1,334,767 Other intangible assets at December 30, 2017 consisted of the following (in thousands): Weighted average amortization period (years) Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangibles: Franchise rights 20 $ 358,228 (211,892 ) 146,336 Favorable operating leases acquired 18 58,101 (38,250 ) 19,851 Indefinite-lived intangible: Trade names N/A 1,190,970 — 1,190,970 $ 1,607,299 (250,142 ) 1,357,157 |
Total Estimated Amortization Expense | The change in the gross carrying amount of favorable operating leases from December 30, 2017 to December 29, 2018 is primarily due to the impairment of favorable operating leases acquired resulting from lease terminations. Total estimated amortization expense for other intangible assets for fiscal years 2019 through 2023 is as follows (in thousands): Fiscal year (a) : 2019 $ 20,536 2020 20,106 2021 19,734 2022 19,451 2023 19,098 (a) Amortization expense for fiscal years 2019 through 2023 includes estimated amortization of favorable leaserights of $2.1 million , $1.8 million , $1.5 million , $1.3 million , and $1.1 million , respectively, that will be included in Occupancy expenses—franchised restaurants upon adoption of the new lease accounting guidance in fiscal year 2019 (see note 2 (v)). |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt at December 29, 2018 and December 30, 2017 consisted of the following (in thousands): December 29, December 30, 2015 Class A-2-II Notes $ 1,684,375 1,701,875 2017 Class A-2-I Notes 594,000 600,000 2017 Class A-2-II Notes 792,000 800,000 Other 1,400 — Debt issuance costs, net of amortization (29,499 ) (34,518 ) Total debt 3,042,276 3,067,357 Less current portion of long-term debt 31,650 31,500 Total long-term debt $ 3,010,626 3,035,857 |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt Based on the Company's intention to make quarterly repayments and assuming repayment by the Anticipated Repayment Dates, the aggregate contractual principal payments of the 2017 Class A-2 Notes, the 2015 Class A-2-II Notes, and other long term debt for 2019 through 2023 are as follows (in thousands): 2017 Class A-2-I Notes 2017 Class A-2-II Notes 2015 Class A-2-II Notes Other Total 2019 $ 6,000 8,000 17,500 150 31,650 2020 6,000 8,000 17,500 150 31,650 2021 6,000 8,000 17,500 150 31,650 2022 6,000 8,000 1,631,875 150 1,646,025 2023 6,000 8,000 — 150 14,150 |
Derivative instruments and he_2
Derivative instruments and hedging transactions (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The table below summarizes the effects of derivative instruments in the consolidated statements of operations and comprehensive income for fiscal year 2017 : Derivatives designated as cash flow hedging instruments Amount of net gain (loss) reclassified into earnings Consolidated statement of operations classification Total effect on other comprehensive income (loss) Interest rate swaps $ 1,922 Interest expense (1,922 ) Income tax effect (778 ) Provision for income taxes 778 Net of income taxes $ 1,144 (1,144 ) The table below summarizes the effects of derivative instruments in the consolidated statements of operations and comprehensive income for fiscal year 2016 : Derivatives designated as cash flow hedging instruments Amount of net gain (loss) reclassified into earnings Consolidated statement of operations classification Total effect on other comprehensive income (loss) Interest rate swaps $ 2,181 Interest expense (2,181 ) Income tax effect (882 ) Provision for income taxes 882 Net of income taxes $ 1,299 (1,299 ) |
Other current liabilities (Tabl
Other current liabilities (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Other Liabilities, Current [Abstract] | |
Other current liabilities | Other current liabilities at December 29, 2018 and December 30, 2017 consisted of the following (in thousands): December 29, December 30, Gift card/certificate liability $ 239,531 228,783 Accrued payroll and benefits 26,544 30,768 Accrued interest 13,274 17,902 Accrued advertising expenses 52,536 35,210 Franchisee profit-sharing liability 13,764 13,243 Other 43,687 29,204 Total other current liabilities $ 389,336 355,110 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Leases [Abstract] | |
Schedule of Capital Leased Assets | Included in the Company’s consolidated balance sheets are the following amounts related to capital leases (in thousands): December 29, December 30, Leased property under capital leases (included in property, equipment, and software) $ 10,282 10,097 Accumulated depreciation (5,018 ) (4,442 ) Net leased property under capital leases $ 5,264 5,655 Capital lease obligations: Current $ 476 596 Long-term 6,998 7,180 Total capital lease obligations $ 7,474 7,776 |
Leases of Lessor in Balance Sheet | Included in the Company’s consolidated balance sheets are the following amounts related to assets leased to others under operating leases, where the Company is the lessor (in thousands): December 29, December 30, Land $ 38,151 33,430 Buildings 52,285 47,792 Leasehold improvements 147,515 147,743 Store, production, and other equipment 150 150 Construction in progress 1,606 1,741 Assets leased to others, gross 239,707 230,856 Accumulated depreciation (101,338 ) (94,450 ) Assets leased to others, net $ 138,369 136,406 |
Schedule of Future Minimum Retal Payments and Receipts for Capital and Operating Leases | Future minimum rental commitments to be paid and received by the Company at December 29, 2018 for all noncancelable leases and subleases are as follows (in thousands): Payments Receipts Net leases Capital leases Operating leases Subleases Fiscal year: 2019 $ 1,535 60,166 (72,751 ) (11,050 ) 2020 1,327 58,389 (69,704 ) (9,988 ) 2021 1,361 56,107 (66,154 ) (8,686 ) 2022 1,398 51,968 (60,282 ) (6,916 ) 2023 1,427 46,340 (51,532 ) (3,765 ) Thereafter 11,770 329,641 (304,954 ) 36,457 Total minimum rental commitments 18,818 $ 602,611 (625,377 ) (3,948 ) Less amount representing interest 11,344 Present value of minimum capital lease obligations $ 7,474 |
Schedule of Rent Expense | Total rental expense for all operating leases consisted of the following (in thousands): Fiscal year ended December 29, December 30, December 31, Base rentals $ 54,914 55,019 54,517 Contingent rentals 6,322 6,664 6,182 Total rental expense $ 61,236 61,683 60,699 |
Schedule of Rental Income | Total rental income for all leases and subleases consisted of the following (in thousands): Fiscal year ended December 29, December 30, December 31, Base rentals $ 74,419 73,597 70,962 Contingent rentals 29,994 31,046 30,058 Total rental income $ 104,413 104,643 101,020 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Information by Segment and Geographical Area | Revenues by segment were as follows (in thousands): Revenues Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Dunkin’ U.S. $ 606,810 587,033 578,085 Dunkin’ International 22,341 19,770 18,628 Baskin-Robbins U.S. 47,418 48,208 46,905 Baskin-Robbins International 115,367 114,849 120,039 U.S. Advertising Funds 454,608 440,441 429,952 Total reportable segment revenues 1,246,544 1,210,301 1,193,609 Other 75,073 65,250 54,746 Total revenues $ 1,321,617 1,275,551 1,248,355 Revenues for foreign countries are represented by the Dunkin’ International and Baskin-Robbins International segments above. No individual foreign country accounted for more than 10% of total revenues for any fiscal year presented. Amounts included in “Corporate and other” in the segment profit table below include corporate overhead costs, such as payroll and related benefit costs and professional services, net of “Other” revenues reported above. Segment profit by segment was as follows (in thousands): Segment profit Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Dunkin’ U.S. $ 466,094 445,118 435,734 Dunkin’ International 14,398 6,167 5,382 Baskin-Robbins U.S. 31,958 33,216 33,634 Baskin-Robbins International 36,189 39,505 39,990 U.S. Advertising Funds — — — Total reportable segments 548,639 524,006 514,740 Corporate and other (114,046 ) (110,012 ) (111,910 ) Interest expense, net (121,548 ) (101,110 ) (100,270 ) Amortization of other intangible assets (21,113 ) (21,335 ) (22,079 ) Long-lived asset impairment charges (1,648 ) (1,617 ) (149 ) Loss on debt extinguishment and refinancing transactions — (6,996 ) — Other income (loss), net (1,083 ) 391 (1,195 ) Income before income taxes $ 289,201 283,327 279,137 Net income of equity method investments is included in segment profit for the Dunkin’ International and Baskin-Robbins International reportable segments. Amounts reported as “Other” in the segment profit table below include the reduction in depreciation and amortization, net of tax, reported by our equity method investees as a result of previously recorded impairment charges. Net income of equity method investments by reportable segment was as follows (in thousands): Net income (loss) of equity method investments Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Dunkin’ International $ (86 ) (83 ) 622 Baskin-Robbins International 11,711 11,117 9,803 Total reportable segments 11,625 11,034 10,425 Other 3,278 4,164 4,127 Total net income of equity method investments $ 14,903 15,198 14,552 Depreciation is reflected in segment profit for each reportable segment. Depreciation by reportable segment was as follows (in thousands): Depreciation Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Dunkin’ U.S. $ 10,953 11,296 11,378 Dunkin’ International 41 31 27 Baskin-Robbins U.S. 282 320 272 Baskin-Robbins International 12 53 74 U.S. Advertising Funds 3,986 3,820 3,730 Total reportable segments 15,274 15,520 15,481 Corporate 8,644 8,384 8,707 Total depreciation $ 23,918 23,904 24,188 Depreciation related to the U.S. Advertising Funds is included within advertising expenses in the consolidated statements of operations. Property, equipment, and software, net by geographic region as of December 29, 2018 and December 30, 2017 is based on the physical locations within the indicated geographic regions and are as follows (in thousands): December 29, 2018 December 30, 2017 United States $ 209,106 181,470 International 96 72 Total property, equipment, and software, net $ 209,202 181,542 |
Stockholders' equity (deficit)
Stockholders' equity (deficit) (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Changes in Components of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive loss were as follows (in thousands): Effect of foreign currency translation Other Accumulated other comprehensive loss Balances at December 30, 2017 $ (8,084 ) (1,451 ) (9,535 ) Other comprehensive income (loss) (6,223 ) 631 (5,592 ) Balances at December 29, 2018 $ (14,307 ) (820 ) (15,127 ) |
Schedule of Dividends Paid | During fiscal year 2018 , the Company paid dividends on common stock as follows: Dividend per share Total amount (in thousands) Payment date Fiscal year 2018: First quarter $ 0.3475 $ 28,639 March 21, 2018 Second quarter 0.3475 28,800 June 6, 2018 Third quarter 0.3475 28,596 September 5, 2018 Fourth quarter 0.3475 28,793 December 5, 2018 During fiscal year 2017 , the Company paid dividends on common stock as follows: Dividend per share Total amount (in thousands) Payment date Fiscal year 2017: First quarter $ 0.3225 $ 29,621 March 22, 2017 Second quarter 0.3225 29,226 June 14, 2017 Third quarter 0.3225 29,064 September 6, 2017 Fourth quarter 0.3225 29,092 December 6, 2017 |
Equity incentive plans (Tables)
Equity incentive plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total share based compensation expense | Total share-based compensation expense, which is included in general and administrative expenses, net, consisted of the following (in thousands): Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Time-vested stock options $ 7,575 8,611 10,654 Restricted stock units 4,569 4,337 3,608 2011 Plan restricted shares 1,172 701 1,793 Performance stock units 1,563 1,277 1,086 Other — — 40 Total share-based compensation $ 14,879 14,926 17,181 Total related tax benefit $ 22,749 8,339 6,955 |
Summary of valuation assumptions | The following weighted average assumptions were utilized in determining the fair value of the 2015 Plan options granted during fiscal years 2018 , 2017 , and 2016 : Fiscal year ended December 29, 2018 December 30, 2017 December 31, 2016 Weighted average grant-date fair value of share options granted $ 10.44 $ 9.87 $ 7.41 Weighted average assumptions: Risk-free interest rate 2.5 % 1.9 % 1.2 % Expected volatility 23.0 % 24.0 % 25.0 % Dividend yield 2.3 % 2.3 % 2.7 % Expected term (years) 4.40 4.88 4.90 |
Summary of status of nonexecutive and 2011 Plan options | A summary of the status of the time-vested stock options as of December 29, 2018 and changes during fiscal year 2018 is presented below: Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Share options outstanding at December 30, 2017 4,367,527 $ 47.63 4.6 Granted 909,027 59.60 Exercised (2,002,848 ) 46.36 Forfeited or expired (277,570 ) 51.92 Share options outstanding at December 29, 2018 2,996,136 51.71 4.7 $ 35.1 Share options exercisable at December 29, 2018 935,868 46.43 3.7 15.9 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of changes in resticted shares | A summary of the changes in the Company’s restricted stock units during fiscal year 2018 is presented below: Number of shares Weighted average grant-date fair value Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Nonvested restricted stock units at December 30, 2017 175,426 $ 48.51 1.5 Granted 87,585 60.87 Vested (93,524 ) 48.52 Forfeited (9,605 ) 49.92 Nonvested restricted stock units at December 29, 2018 159,882 55.19 1.4 $ 10.1 |
Performance shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of share-based compensation arrangement by share-based payment award, performance-based units, vested and expected to vest | A summary of the changes in the Company’s PSUs during fiscal year 2018 is presented below: Number of shares Weighted average grant-date fair value Weighted average remaining contractual term (years) Aggregate intrinsic value (in millions) Nonvested performance stock units at December 30, 2017 148,586 $ 52.72 1.7 Granted 67,993 60.94 Forfeited (22,010 ) 57.35 Nonvested performance stock units at December 29, 2018 194,569 55.07 1.1 $ 12.3 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts): Fiscal year ended December 29, December 30, December 31, Net income—basic and diluted $ 229,906 271,209 175,289 Weighted average number of common shares: Common—basic 83,697,610 90,857,168 91,568,942 Common—diluted 84,960,791 92,231,436 92,538,282 Earnings per common share: Common—basic $ 2.75 2.99 1.91 Common—diluted 2.71 2.94 1.89 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands): Fiscal year ended December 29, December 30, December 31, Domestic operations $ 266,080 261,760 252,815 Foreign operations 23,121 21,567 26,322 Income before income taxes $ 289,201 283,327 279,137 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes were as follows (in thousands): Fiscal year ended December 29, December 30, December 31, Current: Federal $ 43,992 102,349 97,972 State 21,270 27,922 28,430 Foreign 3,930 3,094 3,808 Current tax provision $ 69,192 133,365 130,210 Deferred: Federal $ (7,262 ) (117,054 ) (20,891 ) State (2,967 ) (5,900 ) (6,069 ) Foreign 332 1,707 598 Deferred tax benefit (9,897 ) (121,247 ) (26,362 ) Provision for income taxes $ 59,295 12,118 103,848 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differed from the expense computed using the statutory federal income tax rate of 21% for fiscal year 2018 and 35% for each of the fiscal years 2017 and 2016 due to the following: Fiscal year ended December 29, December 30, December 31, Computed federal income tax expense, at statutory rate 21.0 % 35.0 % 35.0 % State income taxes 6.6 5.2 5.1 Benefits and taxes related to foreign operations (1.5 ) (1.7 ) (3.1 ) Excess tax benefits (6.8 ) (2.8 ) — Change in valuation allowance 0.6 3.2 — Other permanent differences 0.6 (0.5 ) 0.1 Impact of Tax Act — (34.9 ) — Other, net — 0.8 0.1 Effective tax rate 20.5 % 4.3 % 37.2 % |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities were as follows (in thousands): December 29, 2018 December 30, 2017 Deferred tax assets Deferred tax liabilities Deferred tax assets Deferred tax liabilities Allowance for doubtful accounts $ 2,134 — 2,013 — Capital leases 2,074 — 2,158 — Rent 9,332 — 9,452 — Property, equipment, and software 1,984 — 375 — Deferred compensation liabilities 10,789 — 15,033 — Deferred gift cards and certificates 17,402 — 16,676 — Deferred revenue 111,668 — 109,953 — Real estate reserves 980 — 1,153 — Franchise rights and other intangibles — 368,277 — 372,988 Unused net operating losses and foreign tax credits 3,270 — 1,912 — Other current liabilities 5,581 — 4,697 — Interest limitation carryforward 5,134 — — — Other 162 — 224 — 170,510 368,277 163,646 372,988 Valuation allowance (2,827 ) — (899 ) — Total $ 167,683 368,277 162,747 372,988 |
Schedule of Unrecognized Tax Benefits Roll Forward | A summary of the changes in the Company’s unrecognized tax benefits is as follows (in thousands): Fiscal year ended December 29, December 30, December 31, Balance at beginning of year $ 1,529 2,290 2,653 Increases related to prior year tax positions 3 206 267 Increases related to current year tax positions 1,121 65 161 Decreases related to prior year tax positions (170 ) (94 ) (33 ) Decreases related to settlements — (871 ) (191 ) Lapses of statutes of limitations — (140 ) (597 ) Effect of foreign currency adjustments (91 ) 73 30 Balance at end of year $ 2,392 1,529 2,290 |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure Related Party Transactions [Abstract] | |
Related Party Transactions | The Company recognized revenues from its equity method investees, consisting of royalty income and sales of ice cream and other products, as follows (in thousands): Fiscal year ended December 29, December 30, December 31, Japan JV $ 1,874 1,745 1,873 South Korea JV 4,569 4,525 4,030 Australia JV 6,002 4,242 4,277 $ 12,445 10,512 10,180 |
Allowance for doubtful accoun_2
Allowance for doubtful accounts (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts were as follows (in thousands): Accounts receivable Short-term notes and other receivables Long-term notes and other Balance at December 26, 2015 $ 5,627 1,007 4,075 Provision for (recovery of) doubtful accounts, net 1,202 (189 ) (960 ) Write-offs and other (2,051 ) (479 ) (1,027 ) Balance at December 31, 2016 4,778 339 2,088 Provision for doubtful accounts, net 123 264 70 Write-offs and other (968 ) — (335 ) Balance at December 30, 2017 3,933 603 1,823 Provision for (recovery of) doubtful accounts, net 606 281 (256 ) Write-offs and other (955 ) — (81 ) Balance at December 29, 2018 $ 3,584 884 1,486 |
Quarterly financial data (una_2
Quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Statement [Abstract] | |
Schedule of Quarterly Financial Data | Three months ended March 31, June 30, September 29, December 29, (In thousands, except per share data) Total revenues $ 301,342 350,640 350,011 319,624 Operating income 89,831 113,850 111,592 96,559 Net income 50,152 60,498 66,067 53,189 Earnings per share: Common—basic 0.58 0.73 0.80 0.64 Common—diluted 0.57 0.72 0.79 0.64 Three months ended April 1, July 1, September 30, December 30, (In thousands, except per share data) Total revenues $ 296,358 334,176 330,071 314,946 Operating income 86,773 106,836 105,272 92,161 Net income 44,293 51,092 41,170 134,654 Earnings per share: Common—basic 0.48 0.56 0.46 1.49 Common—diluted 0.48 0.55 0.45 1.47 |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Detail) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Dec. 29, 2018USD ($)customer | Dec. 30, 2017USD ($)customer | Dec. 31, 2016USD ($)customer | |
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Provision for income taxes | $ 59,295 | $ 12,118 | $ 103,848 | |
Cash held, advertising funds and gift card/certificate program | 207,300 | 175,700 | ||
Carrying value of long term receivables | 5,000 | 4,900 | ||
Long-term debt | 3,042,276 | 3,067,357 | ||
Fair value of long term debt | $ 3,011,843 | 3,156,099 | ||
Amortization period of unfavorable operating leases | 18 years | |||
Deferred financing costs | $ 29,500 | $ 34,500 | ||
Number of customer that accounted for more than 10% of accounts and notes receivable | customer | 1 | 1 | ||
Number of customer that accounted for more than 10% of revenue | customer | 0 | 0 | 0 | |
Net cash provided by operating activities | $ 268,955 | $ 283,357 | $ 282,479 | |
Net cash provided by (used in) financing activities | (732,360) | 418,641 | $ (179,178) | |
Prepaid Advertising | $ 15,000 | $ 15,500 | ||
Minimum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Franchise agreements initial term, domestic | 10 | |||
Maximum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Franchise agreements initial term, domestic | 20 | |||
Buildings | Minimum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 20 years | |||
Buildings | Maximum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 35 years | |||
Leasehold improvements | Minimum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 5 years | |||
Leasehold improvements | Maximum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 20 years | |||
Software, store, production, and other equipment | Minimum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 3 years | |||
Software, store, production, and other equipment | Maximum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 10 years | |||
Software Development | Minimum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 3 years | |||
Software Development | Maximum | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Useful life of property plant and equipment | 7 years | |||
Customer Concentration Risk | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Concentration risk, percentage | 11.00% | 11.00% | ||
Sales Revenue, Net | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Concentration risk, percentage | 10.00% | 0.00% | 10.00% | |
Restatement Adjustment | Accounting Standards Update 2016-09 | ||||
Significant Accounting Policies Additional Disclosures [Line Items] | ||||
Provision for income taxes | $ 19,700 | $ 7,800 | $ 2,700 |
Summary of significant accoun_5
Summary of significant accounting policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 517,594 | $ 1,018,317 | ||
Restricted cash | 79,008 | 94,047 | ||
Restricted cash, included in Other assets | 1,719 | 1,735 | ||
Total cash, cash equivalents, and restricted cash | $ 598,321 | $ 1,114,099 | $ 431,832 | $ 333,115 |
Summary of significant accoun_6
Summary of significant accounting policies - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Company-owned life insurance | $ 9,906 | $ 10,836 |
Total assets | 9,906 | 10,836 |
Deferred compensation liabilities | 9,759 | 13,543 |
Total liabilities | 9,759 | 13,543 |
Significant other observable inputs (Level 2) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Company-owned life insurance | 9,906 | 10,836 |
Total assets | 9,906 | 10,836 |
Deferred compensation liabilities | 9,759 | 13,543 |
Total liabilities | $ 9,759 | $ 13,543 |
Summary of significant accoun_7
Summary of significant accounting policies - Property, Plant and Equipment (Detail) (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property plant and equipment | 20 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property plant and equipment | 35 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property plant and equipment | 5 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property plant and equipment | 20 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property plant and equipment | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property plant and equipment | 10 years |
Software Development | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property plant and equipment | 3 years |
Software Development | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property plant and equipment | 7 years |
Summary of significant accoun_8
Summary of significant accounting policies Summary of significant accounting policies - Recent accounting pronouncements not yet adopted (Details) - Subsequent event - Restatement Adjustment - Accounting Standards Update 2016-02 $ in Thousands | Jan. 01, 2019USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-use asset | $ 390,000 |
Lease liability | 435,000 |
Additional rent income | 15,000 |
Occupancy expenses-franchised restaurants | 15,000 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-use asset | 405,000 |
Lease liability | 450,000 |
Additional rent income | 20,000 |
Occupancy expenses-franchised restaurants | $ 20,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | ||||
Other operating income (loss), net | $ (1,670) | $ 627 | $ 9,381 | |
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Franchise agreements initial term, domestic | 10 | |||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Franchise agreements initial term, domestic | 20 | |||
Entity Operated Units [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other operating income (loss), net | $ 7,600 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,321,617 | $ 1,275,551 | $ 1,248,355 |
Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,246,544 | 1,210,301 | 1,193,609 |
Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 75,073 | 65,250 | 54,746 |
United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 606,810 | 587,033 | 578,085 |
United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 47,418 | 48,208 | 46,905 |
United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 454,608 | 440,441 | 429,952 |
International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 22,341 | 19,770 | 18,628 |
International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 115,367 | 114,849 | 120,039 |
Advertising fees and related income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 493,590 | 470,984 | 453,553 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 48,330 | 44,869 | |
Sales at company-operated restaurants | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 11,975 |
Rental income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 104,413 | 104,643 | 101,020 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 124,879 | 133,644 | 123,137 |
Calculated under Revenue Guidance in Effect before Topic 606 | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 104,413 | 104,643 | 100,992 |
Calculated under Revenue Guidance in Effect before Topic 606 | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 20,466 | 29,001 | 22,145 |
Calculated under Revenue Guidance in Effect before Topic 606 | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 100,913 | 101,073 | 97,540 |
Calculated under Revenue Guidance in Effect before Topic 606 | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,971 | 3,089 | 2,994 |
Calculated under Revenue Guidance in Effect before Topic 606 | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 529 | 481 | 458 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 20,466 | 29,001 | 22,117 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 20,466 | 29,001 | 22,117 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 104,413 | 104,643 | 101,020 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 104,413 | 104,643 | 100,992 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 28 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 100,913 | 101,073 | 97,540 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,971 | 3,089 | 2,994 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 529 | 481 | 458 |
Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,196,738 | 1,141,907 | 1,125,218 |
Accounting Standards Update 2014-09 | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,142,131 | 1,105,658 | 1,092,617 |
Accounting Standards Update 2014-09 | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 54,607 | 36,249 | 32,601 |
Accounting Standards Update 2014-09 | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 505,897 | 485,960 | 480,545 |
Accounting Standards Update 2014-09 | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 44,447 | 45,119 | 43,911 |
Accounting Standards Update 2014-09 | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 454,608 | 440,441 | 429,952 |
Accounting Standards Update 2014-09 | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 22,341 | 19,770 | 18,628 |
Accounting Standards Update 2014-09 | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 114,838 | 114,368 | 119,581 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,098,402 | 1,042,846 | 1,009,535 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,030,432 | 994,140 | 965,217 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 67,970 | 48,706 | 44,318 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 504,199 | 484,514 | 467,274 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 40,929 | 41,266 | 40,750 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 454,608 | 440,441 | 429,952 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 22,312 | 19,825 | 18,645 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 8,384 | 8,094 | 8,596 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 555,997 | 532,843 | 515,242 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 540,901 | 518,572 | 500,927 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 15,096 | 14,271 | 14,315 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 483,883 | 463,874 | 448,609 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 29,375 | 29,724 | 28,909 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 20,111 | 17,965 | 16,791 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 7,532 | 7,009 | 6,618 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 22,345 | 22,363 | 21,154 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 22,345 | 22,363 | 21,154 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 18,029 | 18,455 | 16,608 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,276 | 978 | 734 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,196 | 1,853 | 1,849 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 844 | 1,077 | 1,963 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 473,124 | 441,983 | 431,436 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 454,608 | 440,441 | 429,952 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 18,516 | 1,542 | 1,484 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 454,608 | 440,441 | 429,952 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 46,936 | 45,657 | 41,703 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 12,578 | 12,764 | 13,184 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 34,358 | 32,893 | 28,519 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,287 | 2,185 | 2,057 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 10,278 | 10,564 | 11,107 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 5 | 7 | 5 |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 8 | 8 | 15 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 98,336 | 99,061 | 115,683 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 111,699 | 111,518 | 127,400 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | (13,363) | (12,457) | (11,717) |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,698 | 1,446 | 13,271 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,518 | 3,853 | 3,161 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 29 | (55) | (17) |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 106,454 | 106,274 | 110,985 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,139 | 2,673 | 3,166 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,154 | 2,034 | 2,165 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 985 | 639 | 1,001 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,698 | 1,446 | 1,296 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 257 | 405 | 529 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 29 | (55) | (17) |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 170 | 238 | 357 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 95,197 | 96,388 | 100,542 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 109,545 | 109,484 | 113,260 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | (14,348) | (13,096) | (12,718) |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,261 | 3,448 | 2,632 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 106,284 | 106,036 | 110,628 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales at company-operated restaurants | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 11,975 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales at company-operated restaurants | Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 11,975 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales at company-operated restaurants | Operating segments | Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales at company-operated restaurants | United States | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 11,975 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales at company-operated restaurants | United States | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales at company-operated restaurants | United States | Operating segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales at company-operated restaurants | International | Operating segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales at company-operated restaurants | International | Operating segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Current | $ 38,082,000 | $ 44,876,000 |
Long-term | 327,333,000 | 361,458,000 |
Deferred revenue, revenue recognized | 30,000,000 | |
Contract with customer, asset | 0 | 0 |
Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables | 81,609,000 | 76,455,000 |
Current | 24,002,000 | 27,724,000 |
Long-term | 327,333,000 | 361,458,000 |
Total | $ 351,335,000 | $ 389,182,000 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 22,627 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 18,996 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 19,058 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 18,981 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 18,872 |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 217,348 |
Revenue, remaining performance obligation, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 315,882 |
Restaurants, not yet open | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 61,000 |
Revenue Recognition - Systemwid
Revenue Recognition - Systemwide Points of Distribution (Details) - point | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Change In Franchised And Company-Operated Points of Distribution [Roll Forward] | |||
Franchised points of distribution in operation—beginning of year | 20,520 | 20,080 | 19,308 |
Franchised points of distribution—opened | 1,213 | 1,339 | 1,540 |
Franchised points of distribution—closed | (821) | (899) | (819) |
Net transfers from company-operated points of distribution | 0 | 0 | 51 |
Franchised points of distribution in operation—end of year | 20,912 | 20,520 | 20,080 |
Company-operated points of distribution—end of year | 0 | 0 | 0 |
Total systemwide points of distribution—end of year | 20,912 | 20,520 | 20,080 |
Revenue Recognition - Impacts o
Revenue Recognition - Impacts of Revenue Guidance, Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Current assets: | |||
Cash and cash equivalents | $ 517,594 | $ 1,018,317 | |
Restricted cash | 94,047 | ||
Accounts receivables, net | 75,963 | 69,517 | |
Notes and other receivables, net | 64,412 | 52,332 | |
Restricted assets of advertising funds | 0 | ||
Prepaid income taxes | 27,005 | 21,927 | |
Prepaid expenses and other current assets | 49,491 | 48,193 | |
Total current assets | 813,473 | 1,304,333 | |
Property and equipment, net | 209,202 | 181,542 | |
Equity method investments | 146,395 | 140,615 | |
Goodwill | 888,265 | 888,308 | $ 888,272 |
Other intangibles assets, net | 1,334,767 | 1,357,157 | |
Other assets | 64,479 | 65,478 | |
Total assets | 3,456,581 | 3,937,433 | |
Current liabilities: | |||
Current portion of long-term debt | 31,650 | 31,500 | |
Capital lease obligations | 476 | 596 | |
Accounts payable | 80,037 | 53,417 | |
Liabilities of advertising funds | 0 | ||
Deferred revenue | 44,876 | ||
Other current liabilities | 389,336 | 355,110 | |
Total current liabilities | 539,581 | 485,499 | |
Long-term debt, net | 3,010,626 | 3,035,857 | |
Capital lease obligations | 6,998 | 7,180 | |
Unfavorable operating leases acquired | 9,780 | ||
Deferred revenue | 361,458 | ||
Deferred income taxes, net | 214,345 | ||
Other long-term liabilities | 72,577 | 77,853 | |
Total long-term liabilities | 3,629,797 | 3,706,473 | |
Stockholders’ deficit: | |||
Preferred stock | 0 | 0 | |
Common stock | 82 | 90 | |
Additional paid-in capital | 642,017 | 724,114 | |
Treasury stock, at cost; 26,777 shares as of September 29, 2018 and December 30, 2017 | (1,060) | ||
Accumulated deficit | (1,338,709) | (968,148) | |
Accumulated other comprehensive loss | (15,127) | (9,535) | |
Total stockholders’ deficit | (254,539) | ||
Total liabilities and stockholders’ deficit | $ 3,456,581 | 3,937,433 | |
Previously reported | |||
Current assets: | |||
Cash and cash equivalents | 1,018,317 | ||
Restricted cash | 94,047 | ||
Accounts receivables, net | 51,442 | ||
Notes and other receivables, net | 51,082 | ||
Restricted assets of advertising funds | 47,373 | ||
Prepaid income taxes | 21,879 | ||
Prepaid expenses and other current assets | 32,695 | ||
Total current assets | 1,316,835 | ||
Property and equipment, net | 169,005 | ||
Equity method investments | 140,615 | ||
Goodwill | 888,308 | ||
Other intangibles assets, net | 1,357,157 | ||
Other assets | 65,464 | ||
Total assets | 3,937,384 | ||
Current liabilities: | |||
Current portion of long-term debt | 31,500 | ||
Capital lease obligations | 596 | ||
Accounts payable | 16,307 | ||
Liabilities of advertising funds | 58,014 | ||
Deferred revenue | 39,395 | ||
Other current liabilities | 326,078 | ||
Total current liabilities | 471,890 | ||
Long-term debt, net | 3,035,857 | ||
Capital lease obligations | 7,180 | ||
Unfavorable operating leases acquired | 9,780 | ||
Deferred revenue | 11,158 | ||
Deferred income taxes, net | 315,249 | ||
Other long-term liabilities | 77,823 | ||
Total long-term liabilities | 3,457,047 | ||
Stockholders’ deficit: | |||
Preferred stock | 0 | ||
Common stock | 90 | ||
Additional paid-in capital | 724,114 | ||
Treasury stock, at cost; 26,777 shares as of September 29, 2018 and December 30, 2017 | (1,060) | ||
Accumulated deficit | (705,007) | ||
Accumulated other comprehensive loss | (9,690) | ||
Total stockholders’ deficit | 8,447 | ||
Total liabilities and stockholders’ deficit | 3,937,384 | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Franchise fees | |||
Current assets: | |||
Total current assets | 0 | ||
Total assets | 0 | ||
Current liabilities: | |||
Deferred revenue | 1,502 | ||
Total current liabilities | 1,502 | ||
Deferred revenue | 328,183 | ||
Deferred income taxes, net | (91,488) | ||
Total long-term liabilities | 236,695 | ||
Stockholders’ deficit: | |||
Accumulated deficit | (238,197) | ||
Total stockholders’ deficit | (238,197) | ||
Total liabilities and stockholders’ deficit | 0 | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Advertising fees and related income | |||
Current assets: | |||
Accounts receivables, net | 18,075 | ||
Notes and other receivables, net | 1,250 | ||
Restricted assets of advertising funds | (47,373) | ||
Prepaid income taxes | 48 | ||
Prepaid expenses and other current assets | 15,498 | ||
Total current assets | (12,502) | ||
Property and equipment, net | 12,537 | ||
Other assets | 14 | ||
Total assets | 49 | ||
Current liabilities: | |||
Accounts payable | 37,110 | ||
Liabilities of advertising funds | (58,014) | ||
Deferred revenue | (550) | ||
Other current liabilities | 29,032 | ||
Total current liabilities | 7,578 | ||
Deferred revenue | (7,518) | ||
Other long-term liabilities | 30 | ||
Total long-term liabilities | (7,488) | ||
Stockholders’ deficit: | |||
Accumulated deficit | (196) | ||
Accumulated other comprehensive loss | 155 | ||
Total stockholders’ deficit | (41) | ||
Total liabilities and stockholders’ deficit | 49 | ||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Other revenue transactions | |||
Current assets: | |||
Total current assets | 0 | ||
Total assets | 0 | ||
Current liabilities: | |||
Deferred revenue | 4,529 | ||
Total current liabilities | 4,529 | ||
Deferred revenue | 29,635 | ||
Deferred income taxes, net | (9,416) | ||
Total long-term liabilities | 20,219 | ||
Stockholders’ deficit: | |||
Accumulated deficit | (24,748) | ||
Total stockholders’ deficit | (24,748) | ||
Total liabilities and stockholders’ deficit | $ 0 |
Revenue Recognition - Impacts_2
Revenue Recognition - Impacts of Revenue Guidance, Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Tax Cuts And Jobs Act Of 2017, Income tax benefit provision | $ 96,800 | ||||||||||
Revenues: | |||||||||||
Total revenues | $ 1,321,617 | 1,275,551 | $ 1,248,355 | ||||||||
Operating costs and expenses: | |||||||||||
Company Operated Restaurant Expenses | 13,591 | ||||||||||
Advertising expenses | 498,019 | 476,157 | 458,568 | ||||||||
General and administrative expenses, net | 246,792 | 243,828 | 241,824 | ||||||||
Depreciation | 19,932 | 20,084 | 20,458 | ||||||||
Amortization of other intangible assets | 21,113 | 21,335 | 22,079 | ||||||||
Long-lived asset impairment charges | 1,648 | 1,617 | 149 | ||||||||
Total operating costs and expenses | 923,018 | 900,334 | 891,686 | ||||||||
Net income of equity method investments | 14,903 | 15,198 | 14,552 | ||||||||
Other operating income (loss), net | (1,670) | 627 | 9,381 | ||||||||
Operating income | $ 96,559 | $ 111,592 | $ 113,850 | $ 89,831 | $ 92,161 | $ 105,272 | $ 106,836 | $ 86,773 | 411,832 | 391,042 | 380,602 |
Other income (expense), net: | |||||||||||
Interest income | 7,200 | 3,313 | 582 | ||||||||
Interest expense | (128,748) | (104,423) | (100,852) | ||||||||
Gain (Loss) on Extinguishment of Debt | (6,996) | ||||||||||
Other income (loss), net | (1,083) | 391 | (1,195) | ||||||||
Total other expense, net | (122,631) | (107,715) | (101,465) | ||||||||
Income before income taxes | 289,201 | 283,327 | 279,137 | ||||||||
Provision for income taxes | 59,295 | 12,118 | 103,848 | ||||||||
Net income | $ 53,189 | $ 66,067 | $ 60,498 | $ 50,152 | $ 134,654 | $ 41,170 | $ 51,092 | $ 44,293 | $ 229,906 | $ 271,209 | $ 175,289 |
Common-basic (in dollars per share) | $ 0.64 | $ 0.80 | $ 0.73 | $ 0.58 | $ 1.49 | $ 0.46 | $ 0.56 | $ 0.48 | $ 2.75 | $ 2.99 | $ 1.91 |
Common-diluted (in dollars per share) | $ 0.64 | $ 0.79 | $ 0.72 | $ 0.57 | $ 1.47 | $ 0.45 | $ 0.55 | $ 0.48 | $ 2.71 | $ 2.94 | $ 1.89 |
Franchise fees | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Tax Cuts And Jobs Act Of 2017, Income tax benefit provision | $ 42,200 | ||||||||||
Franchise fees and royalty income | |||||||||||
Revenues: | |||||||||||
Total revenues | 555,206 | $ 536,396 | |||||||||
Advertising fees and related income | |||||||||||
Revenues: | |||||||||||
Total revenues | 470,984 | 453,553 | |||||||||
Rental income | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 104,413 | 104,643 | 101,020 | ||||||||
Ice cream and other products | |||||||||||
Revenues: | |||||||||||
Total revenues | 95,197 | 96,388 | 100,542 | ||||||||
Operating costs and expenses: | |||||||||||
Cost of ice cream and other products | 77,412 | 77,012 | 77,608 | ||||||||
Sales at company-operated restaurants | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 11,975 | ||||||||
Other revenue transactions | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Tax Cuts And Jobs Act Of 2017, Income tax benefit provision | 4,300 | ||||||||||
Other revenues | |||||||||||
Revenues: | |||||||||||
Total revenues | 48,330 | 44,869 | |||||||||
Occupancy expenses—franchised restaurants | |||||||||||
Operating costs and expenses: | |||||||||||
Cost of ice cream and other products | 60,301 | 57,409 | |||||||||
Accounting Standards Update 2014-09 | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 1,196,738 | 1,141,907 | 1,125,218 | ||||||||
Previously reported | |||||||||||
Revenues: | |||||||||||
Total revenues | 860,501 | 828,889 | |||||||||
Operating costs and expenses: | |||||||||||
Company Operated Restaurant Expenses | 13,591 | ||||||||||
Advertising expenses | 0 | 0 | |||||||||
General and administrative expenses, net | 248,975 | 246,814 | |||||||||
Depreciation | 20,084 | 20,458 | |||||||||
Amortization of other intangible assets | 21,335 | 22,079 | |||||||||
Long-lived asset impairment charges | 1,617 | 149 | |||||||||
Total operating costs and expenses | 429,324 | 438,108 | |||||||||
Net income of equity method investments | 15,198 | 14,552 | |||||||||
Other operating income (loss), net | 627 | 9,381 | |||||||||
Operating income | 447,002 | 414,714 | |||||||||
Other income (expense), net: | |||||||||||
Interest income | 3,313 | 582 | |||||||||
Interest expense | (104,423) | (100,852) | |||||||||
Gain (Loss) on Extinguishment of Debt | (6,996) | ||||||||||
Other income (loss), net | 391 | (1,195) | |||||||||
Total other expense, net | (107,715) | (101,465) | |||||||||
Income before income taxes | 339,287 | 313,249 | |||||||||
Provision for income taxes | (11,622) | 117,673 | |||||||||
Net income | $ 350,909 | $ 195,576 | |||||||||
Common-basic (in dollars per share) | $ 3.86 | $ 2.14 | |||||||||
Common-diluted (in dollars per share) | $ 3.80 | $ 2.11 | |||||||||
Previously reported | Franchise fees and royalty income | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 592,689 | $ 549,571 | |||||||||
Previously reported | Rental income | |||||||||||
Revenues: | |||||||||||
Total revenues | 104,643 | 101,020 | |||||||||
Previously reported | Ice cream and other products | |||||||||||
Revenues: | |||||||||||
Total revenues | 110,659 | 114,857 | |||||||||
Operating costs and expenses: | |||||||||||
Cost of ice cream and other products | 77,012 | 77,608 | |||||||||
Previously reported | Sales at company-operated restaurants | |||||||||||
Revenues: | |||||||||||
Total revenues | 11,975 | ||||||||||
Previously reported | Other revenues | |||||||||||
Revenues: | |||||||||||
Total revenues | 52,510 | 51,466 | |||||||||
Previously reported | Occupancy expenses—franchised restaurants | |||||||||||
Operating costs and expenses: | |||||||||||
Cost of ice cream and other products | 60,301 | 57,409 | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Franchise fees | |||||||||||
Revenues: | |||||||||||
Total revenues | (57,592) | (32,562) | |||||||||
Operating costs and expenses: | |||||||||||
Total operating costs and expenses | 0 | 0 | |||||||||
Operating income | (57,592) | (32,562) | |||||||||
Other income (expense), net: | |||||||||||
Total other expense, net | 0 | 0 | |||||||||
Income before income taxes | (57,592) | (32,562) | |||||||||
Provision for income taxes | 18,656 | (13,205) | |||||||||
Net income | (76,248) | (19,357) | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Franchise fees | |||||||||||
Revenues: | |||||||||||
Total revenues | (51,754) | (27,490) | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Ice cream royalty allocation | |||||||||||
Revenues: | |||||||||||
Total revenues | 14,271 | 14,315 | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Advertising | |||||||||||
Revenues: | |||||||||||
Total revenues | 470,984 | 453,553 | |||||||||
Operating costs and expenses: | |||||||||||
Advertising expenses | 476,157 | 458,568 | |||||||||
General and administrative expenses, net | (5,147) | (4,990) | |||||||||
Total operating costs and expenses | 471,010 | 453,578 | |||||||||
Operating income | (26) | (25) | |||||||||
Other income (expense), net: | |||||||||||
Total other expense, net | 0 | 0 | |||||||||
Income before income taxes | (26) | (25) | |||||||||
Net income | (26) | (25) | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Advertising fees and related income | |||||||||||
Revenues: | |||||||||||
Total revenues | 470,984 | 453,553 | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Ice cream royalty allocation | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | |||||||||
Operating costs and expenses: | |||||||||||
Total operating costs and expenses | 0 | 0 | |||||||||
Operating income | 0 | 0 | |||||||||
Other income (expense), net: | |||||||||||
Total other expense, net | 0 | 0 | |||||||||
Income before income taxes | 0 | 0 | |||||||||
Net income | 0 | 0 | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Ice cream and other products | |||||||||||
Revenues: | |||||||||||
Total revenues | (14,271) | (14,315) | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Other revenue transactions | |||||||||||
Revenues: | |||||||||||
Total revenues | 1,658 | (1,525) | |||||||||
Operating costs and expenses: | |||||||||||
Total operating costs and expenses | 0 | 0 | |||||||||
Operating income | 1,658 | (1,525) | |||||||||
Other income (expense), net: | |||||||||||
Total other expense, net | 0 | 0 | |||||||||
Income before income taxes | 1,658 | (1,525) | |||||||||
Provision for income taxes | 5,084 | (620) | |||||||||
Net income | (3,426) | (905) | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Franchise fees | |||||||||||
Revenues: | |||||||||||
Total revenues | (5,838) | (5,072) | |||||||||
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | Other revenue transactions | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 1,658 | $ (1,525) |
Revenue Recognition - Impacts_3
Revenue Recognition - Impacts of Revenue Guidance, Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net cash used in operating activities | $ 268,955 | $ 283,357 | $ 282,479 |
Net cash provided by (used in) investing activities | (51,835) | (20,303) | (4,309) |
Net cash used in financing activities | (732,360) | 418,641 | (179,178) |
Decrease in cash, cash equivalents, and restricted cash | $ (515,778) | 682,267 | 98,717 |
Previously reported | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net cash used in operating activities | 276,908 | 276,827 | |
Net cash provided by (used in) investing activities | (13,854) | 1,343 | |
Net cash used in financing activities | 418,641 | (179,178) | |
Decrease in cash, cash equivalents, and restricted cash | 682,267 | 98,717 | |
Adjustments for new revenue recognition guidance | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net cash used in operating activities | 6,449 | 5,652 | |
Net cash provided by (used in) investing activities | (6,449) | (5,652) | |
Net cash used in financing activities | 0 | 0 | |
Decrease in cash, cash equivalents, and restricted cash | $ 0 | $ 0 |
Property and equipment, net (De
Property and equipment, net (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 356,752 | $ 315,384 |
Accumulated depreciation | (147,550) | (133,842) |
Property and equipment, net | 209,202 | 181,542 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 40,394 | 35,673 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 55,771 | 50,640 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 157,976 | 157,310 |
Software, store, production, and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 72,165 | 64,491 |
Construction in progress and software under development | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 30,446 | $ 7,270 |
Equity method investments Owner
Equity method investments Ownership Percentage (Details) | Dec. 29, 2018 |
Japan JV | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 43.30% |
South Korea JV | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 33.30% |
Australia JV | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 20.00% |
Spain JV | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 33.30% |
Equity method investments Summa
Equity method investments Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Current assets | $ 399,776 | $ 363,277 | |
Current liabilities | 143,689 | 140,113 | |
Working capital | 256,087 | 223,164 | |
Property, plant, and equipment, net | 162,718 | 165,442 | |
Other assets | 123,165 | 139,958 | |
Long-term liabilities | 55,830 | 48,429 | |
Equity of equity method investments | 486,140 | 480,135 | |
Equity method, revenues | 699,981 | 646,269 | $ 629,717 |
Equity method, gross profit | 371,274 | 345,302 | 329,206 |
Equity method, net income | $ 35,570 | $ 33,791 | $ 32,529 |
Equity method investments Compa
Equity method investments Comparison of Carrying Value of Investmetn and Underlying Equity in Net Assets of Investment (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 146,395 | $ 140,615 |
Japan JV | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 16,517 | 13,886 |
Equity Method Investment, Underlying Equity in Net Assets | 35,428 | 35,045 |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | (18,911) | (21,159) |
South Korea JV | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 130,580 | 127,225 |
Equity Method Investment, Underlying Equity in Net Assets | 135,275 | 133,161 |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ (4,695) | $ (5,936) |
Goodwill and other intangible_3
Goodwill and other intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 1,182,743 | $ 1,182,786 | $ 1,182,750 |
Accumulated impairment charges | (294,478) | (294,478) | (294,478) |
Goodwill, Translation and Purchase Accounting Adjustments | (43) | 36 | |
Net Balance | 888,265 | 888,308 | 888,272 |
Dunkin’ U.S. | |||
Goodwill [Roll Forward] | |||
Goodwill | 1,148,579 | 1,148,579 | 1,148,579 |
Accumulated impairment charges | (270,441) | (270,441) | (270,441) |
Effects of foreign currency adjustments | 0 | 0 | |
Goodwill, Translation and Purchase Accounting Adjustments | 0 | 0 | |
Net Balance | 878,138 | 878,138 | 878,138 |
Dunkin’ International | |||
Goodwill [Roll Forward] | |||
Goodwill | 10,127 | 10,170 | 10,134 |
Accumulated impairment charges | 0 | 0 | 0 |
Effects of foreign currency adjustments | (43) | 36 | |
Goodwill, Translation and Purchase Accounting Adjustments | (43) | 36 | |
Net Balance | 10,127 | 10,170 | 10,134 |
Baskin-Robbins International | |||
Goodwill [Roll Forward] | |||
Goodwill | 24,037 | 24,037 | 24,037 |
Accumulated impairment charges | (24,037) | (24,037) | (24,037) |
Effects of foreign currency adjustments | 0 | 0 | |
Net Balance | $ 0 | $ 0 | $ 0 |
Goodwill and other intangible_4
Goodwill and other intangible assets Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Intangible Assets And Goodwill [Line Items] | ||
Gross carrying amount | $ 1,600,529 | $ 1,607,299 |
Accumulated amortization | (265,762) | (250,142) |
Net carrying amount | 1,334,767 | 1,357,157 |
Trade names | Indefinite-lived intangible: | ||
Intangible Assets And Goodwill [Line Items] | ||
Gross carrying amount | 1,190,970 | 1,190,970 |
Net carrying amount | $ 1,190,970 | $ 1,190,970 |
Franchise rights | Definite-lived intangibles: | ||
Intangible Assets And Goodwill [Line Items] | ||
Weighted average amortization period (years) | 20 years | 20 years |
Gross carrying amount | $ 358,154 | $ 358,228 |
Accumulated amortization | (229,764) | (211,892) |
Net carrying amount | $ 128,390 | $ 146,336 |
Favorable operating leases acquired | Definite-lived intangibles: | ||
Intangible Assets And Goodwill [Line Items] | ||
Weighted average amortization period (years) | 18 years | 18 years |
Gross carrying amount | $ 51,405 | $ 58,101 |
Accumulated amortization | (35,998) | (38,250) |
Net carrying amount | $ 15,407 | $ 19,851 |
Total Estimated Amortization Ex
Total Estimated Amortization Expense (Detail) $ in Thousands | Dec. 29, 2018USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,019 | $ 20,536 |
2,020 | 20,106 |
2,021 | 19,734 |
2,022 | 19,451 |
2,023 | 19,098 |
Favorable leaserights | |
Finite-Lived Intangible Assets [Line Items] | |
2,019 | 2,100 |
2,020 | 1,800 |
2,021 | 1,500 |
2,022 | 1,300 |
2,023 | $ 1,100 |
Debt Debt - Disclosure (Details
Debt Debt - Disclosure (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Term loans | $ 3,042,276 | $ 3,067,357 |
Unamortized Debt Issuance Expense | (29,499) | (34,518) |
Less current portion of long-term debt | 31,650 | 31,500 |
Total long-term debt | 3,010,626 | 3,035,857 |
2015 Class A-2-II Notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,684,375 | 1,701,875 |
2017 Class A-2-II Notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 792,000 | 800,000 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,400 | 0 |
2017 Class A-2-I Notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 594,000 | $ 600,000 |
Debt - Securitized Financing Fa
Debt - Securitized Financing Facility (Details) | Jan. 26, 2015USD ($) | Dec. 30, 2017USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2017USD ($) | Oct. 23, 2017USD ($) | Dec. 26, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||
Debt instrument, number of extensions | 2 | |||||||
Debt instrument, extension period | 1 year | |||||||
Loss on debt extinguishment and refinancing transactions | $ 0 | $ (6,996,000) | $ 0 | |||||
Standby letters of credit | $ 32,300,000 | 32,400,000 | 32,300,000 | |||||
Amounts drawn on letters of credit | 0 | 0 | 0 | |||||
3.62% Fixed Rate Senior Secured Noted, Class A-2-I | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, principal | $ 750,000,000 | |||||||
2015 Class A-2-I Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percent | 3.98% | |||||||
Repayments of debt | 731,300,000 | |||||||
Annual principal payments, quarterly installments | 17,500,000 | |||||||
Write off of Deferred Debt Issuance Cost | 6,300,000 | |||||||
Make-whole interest premium | 726,000 | |||||||
3.90% Fixed Rate Senior Secured Notes, Class A-2-II | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, principal | 1,750,000,000 | |||||||
Variable funding notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, principal | $ 100,000,000 | $ 150,000,000 | ||||||
2017 Class A-2-I Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percent | 3.629% | |||||||
Debt instrument, principal | $ 600,000,000 | |||||||
Annual principal payments, quarterly installments | $ 6,000,000 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.80% | |||||||
2017 Class A-2-II Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percent | 4.03% | |||||||
Debt instrument, principal | $ 800,000,000 | |||||||
Annual principal payments, quarterly installments | $ 8,000,000 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.20% | |||||||
2017 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 17,700,000 | 17,700,000 | ||||||
2015 Class A-2-II Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.10% | |||||||
Line of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 41,300,000 | |||||||
Amortization of Debt Discount (Premium) | $ 5,000,000 | $ 6,200,000 | $ 6,400,000 | |||||
Revolving credit facility | Term loan | LIBOR rate loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Revolving credit facility | Term loan | LIBOR rate loans | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Revolving credit facility | Term loan | LIBOR rate loans | Base rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Minimum | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, unused capacity, commitment fee percentage | 0.50% | |||||||
Maximum | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, unused capacity, commitment fee percentage | 1.00% |
Debt - Senior Credit Facility (
Debt - Senior Credit Facility (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disclosure Debt Additional Information [Abstract] | |||
Loss on debt extinguishment and refinancing transactions | $ 0 | $ 6,996 | $ 0 |
Debt - Future Maturities (Detai
Debt - Future Maturities (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 31,650 |
2,019 | 31,650 |
2,020 | 31,650 |
2,022 | 1,646,025 |
2,021 | 14,150 |
2017 Class A-2-I Notes | |
Debt Instrument [Line Items] | |
2,018 | 6,000 |
2,019 | 6,000 |
2,020 | 6,000 |
2,022 | 6,000 |
2,021 | 6,000 |
2017 Class A-2-II Notes | |
Debt Instrument [Line Items] | |
2,018 | 8,000 |
2,019 | 8,000 |
2,020 | 8,000 |
2,022 | 8,000 |
2,021 | 8,000 |
2015 Class A-2-II Notes | |
Debt Instrument [Line Items] | |
2,018 | 17,500 |
2,019 | 17,500 |
2,020 | 17,500 |
2,022 | 1,631,875 |
2,021 | 0 |
Other Debt [Member] | |
Debt Instrument [Line Items] | |
2,018 | $ 150 |
Derivative instruments and he_3
Derivative instruments and hedging transactions - Textuals (Details) - USD ($) $ in Millions | Feb. 28, 2014 | Dec. 26, 2015 | Dec. 27, 2014 |
Derivative [Line Items] | |||
Other comprehensive income (loss), unrealized gain (loss), before tax | $ 5.8 | ||
Derivative, gain | $ 6.2 | ||
Interest rate swap | |||
Derivative [Line Items] | |||
Derivative, fair value | $ 5.3 | ||
Derivative, gain | 1.8 | ||
Other current liabilities | |||
Derivative [Line Items] | |||
Interest payable | $ 1 |
Derivative instruments and he_4
Derivative instruments and hedging transactions - Derivative Effects (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Amount of net gain (loss) reclassified into earnings, interest rate swaps | $ 1,922 | $ (2,181) | |
Amount of net gain (loss) reclassified into earnings, income tax effect | (778) | 882 | |
Amount of net gain (loss) reclassified into earnings, net of income taxes | 1,144 | (1,299) | |
Total effect on other comprehensive income (loss), interest expense | (1,922) | (2,181) | |
Total effect on other comprehensive income (loss), provision (benefit) for income taxes | $ 0 | 778 | 882 |
Total effect on other comprehensive income (loss), net of income taxes | $ 0 | $ (1,144) | $ (1,299) |
Other current liabilities (Deta
Other current liabilities (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Other Liabilities, Current [Abstract] | ||
Gift card/certificate liability | $ 239,531 | $ 228,783 |
Accrued payroll and benefits | 26,544 | 30,768 |
Accrued interest | 13,274 | 17,902 |
Accrued Advertising, Current | 52,536 | 35,210 |
Franchisee profit-sharing liability | 13,764 | 13,243 |
Other | 43,687 | 29,204 |
Total other current liabilities | $ 389,336 | $ 355,110 |
Leases - Capital Leases Include
Leases - Capital Leases Included in Company's Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Leases [Abstract] | ||
Leased property under capital leases (included in property, equipment, and software) | $ 10,282 | $ 10,097 |
Accumulated depreciation | (5,018) | (4,442) |
Net leased property under capital leases | 5,264 | 5,655 |
Current | 476 | 596 |
Long-term | 6,998 | 7,180 |
Total capital lease obligations | $ 7,474 | $ 7,776 |
Leases - Operating Leases Inclu
Leases - Operating Leases Included in Company's Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | $ 239,707 | $ 230,856 |
Accumulated depreciation | (101,338) | (94,450) |
Assets leased to others, net | 138,369 | 136,406 |
Land | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | 38,151 | 33,430 |
Buildings | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | 52,285 | 47,792 |
Leasehold improvements | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | 147,515 | 147,743 |
Store, production, and other equipment | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | 150 | 150 |
Construction in progress and software under development | ||
Operating Leased Assets [Line Items] | ||
Assets leased to others, gross | $ 1,606 | $ 1,741 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments to be Paid and Received (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Capital Leases, Future Minimum Payments Due, 2018 | $ 1,535 |
Capital Leases, Future Minimum Payments Due, 2019 | 1,327 |
Capital Leases, Future Minimum Payments Due, 2020 | 1,361 |
Capital Leases, Future Minimum Payments Due, 2021 | 1,398 |
Capital Leases, Future Minimum Payments Due, 2022 | 1,427 |
Capital Leases, Future Minimum Payments Due Thereafter | 11,770 |
Capital Leases, Future Minimum Payments Due | 18,818 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | 11,344 |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 7,474 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating Leases, Future Minimum Payments Due, 2018 | 60,166 |
Operating Leases, Future Minimum Payments Due, 2019 | 58,389 |
Operating Leases, Future Minimum Payments Due, 2020 | 56,107 |
Operating Leases, Future Minimum Payments Due, 2021 | 51,968 |
Operating Leases, Future Minimum Payments Due, 2022 | 46,340 |
Operating Leases, Future Minimum Payments Due Thereafter | 329,641 |
Operating Leases, Future Minimum Payments Due | 602,611 |
Subleases, Future Minimum Payments Receivable, Fiscal Year Maturity [Abstract] | |
Subleases, Future Minimum Payments Receivable, 2018 | (72,751) |
Subleases, Future Minimum Payments Receivable, 2019 | (69,704) |
Subleases, Future Minimum Payments Receivable, 2020 | (66,154) |
Subleases, Future Minimum Payments Receivable, 2021 | (60,282) |
Subleases, Future Minimum Payments Receivable, 2022 | (51,532) |
Subleases, Future Minimum Payments Receivable, Thereafter | (304,954) |
Subleases, Future Minimum Payments Receivable | (625,377) |
Net Leases, Future Minimum Payments Due (Receivable), Fiscal Year Maturity [Abstract] | |
Leases, Future Minimum Payments Due, Net of Subleases, 2018 | (11,050) |
Leases, Future Minimum Payments Due, Net of Subleases, 2019 | (9,988) |
Leases, Future Minimum Payments Due, Net of Subleases, 2020 | (8,686) |
Leases, Future Minimum Payments Due, Net of Subleases, 2021 | (6,916) |
Leases, Future Minimum Payments Due, Net of Subleases, 2022 | (3,765) |
Leases, Future Minimum Payments Due, Net of Subleases, Thereafter | 36,457 |
Leases, Future Minimum Payments Due, Net of Subleases | $ (3,948) |
Leases - Rent Expense, Operatin
Leases - Rent Expense, Operating (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Base rentals | $ 54,914 | $ 55,019 | $ 54,517 |
Contingent rentals | 6,322 | 6,664 | 6,182 |
Total rental expense | $ 61,236 | $ 61,683 | $ 60,699 |
Leases - Rent Income (Details)
Leases - Rent Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Base rentals | $ 74,419 | $ 73,597 | $ 70,962 |
Contingent rentals | 29,994 | 31,046 | 30,058 |
Total rental income | $ 104,413 | $ 104,643 | $ 101,020 |
Segment information - Additiona
Segment information - Additional Information (Detail) | 12 Months Ended |
Dec. 29, 2018customerbrandsegment | |
Segment Reporting [Abstract] | |
Number of brands | brand | 2 |
Number of reportable segments | segment | 5 |
Number of Customers Accounted for More than 10% of Total Revenues | customer | 0 |
Segment information - Revenues
Segment information - Revenues by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | $ 1,321,617 | $ 1,275,551 | $ 1,248,355 |
Other | 75,073 | 65,250 | 54,746 |
Operating segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 1,246,544 | 1,210,301 | 1,193,609 |
Operating segments | Dunkin' Donuts | United States | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 606,810 | 587,033 | 578,085 |
Operating segments | Dunkin’ International | United States | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 22,341 | 19,770 | 18,628 |
Operating segments | Baskin-Robbins | United States | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 47,418 | 48,208 | 46,905 |
Operating segments | Baskin-Robbins International | United States | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | 115,367 | 114,849 | 120,039 |
Operating segments | U.S. Advertising Funds | United States | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total revenues | $ 454,608 | $ 440,441 | $ 429,952 |
Segment information - Segment P
Segment information - Segment Profit by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total reportable segments | $ 229,906 | $ 271,209 | $ 175,289 |
Corporate and other | (114,046) | (110,012) | (111,910) |
Interest expense, net | (121,548) | (101,110) | (100,270) |
Depreciation and amortization | (21,113) | (21,335) | (22,079) |
Long-lived asset impairment charges | (1,648) | (1,617) | (149) |
Loss on debt extinguishment and refinancing transactions | 0 | (6,996) | 0 |
Other gains, net | (1,083) | 391 | (1,195) |
Income before income taxes | 289,201 | 283,327 | 279,137 |
Operating segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total reportable segments | 548,639 | 524,006 | 514,740 |
Operating segments | Dunkin' Donuts | United States | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total reportable segments | 466,094 | 445,118 | 435,734 |
Operating segments | Dunkin' Donuts | International | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total reportable segments | 14,398 | 6,167 | 5,382 |
Operating segments | Baskin-Robbins | United States | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total reportable segments | 31,958 | 33,216 | 33,634 |
Operating segments | Baskin-Robbins | International | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total reportable segments | 36,189 | 39,505 | 39,990 |
Operating segments | U.S. Advertising Funds | United States | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total reportable segments | $ 0 | $ 0 | $ 0 |
Segment information - Equity in
Segment information - Equity in Net Income of Joint Ventures Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Disclosure [Line Items] | |||
Net income of equity method investments | $ 14,903 | $ 15,198 | $ 14,552 |
Other | |||
Segment Reporting Disclosure [Line Items] | |||
Other | 3,278 | 4,164 | 4,127 |
Operating segments | |||
Segment Reporting Disclosure [Line Items] | |||
Net income of equity method investments | 11,625 | 11,034 | 10,425 |
Operating segments | Dunkin' Donuts | International | |||
Segment Reporting Disclosure [Line Items] | |||
Net income of equity method investments | (86) | (83) | 622 |
Operating segments | Baskin-Robbins | International | |||
Segment Reporting Disclosure [Line Items] | |||
Net income of equity method investments | $ 11,711 | $ 11,117 | $ 9,803 |
Segment information - Depreciat
Segment information - Depreciation and Amortization by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | $ 23,918 | $ 23,904 | $ 24,188 |
Other | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 8,644 | 8,384 | 8,707 |
Operating segments | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 15,274 | 15,520 | 15,481 |
Operating segments | Dunkin' Donuts | United States | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 10,953 | 11,296 | 11,378 |
Operating segments | Dunkin' Donuts | International | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 41 | 31 | 27 |
Operating segments | Baskin-Robbins | United States | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 282 | 320 | 272 |
Operating segments | Baskin-Robbins | International | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 12 | 53 | 74 |
Operating segments | U.S. Advertising Funds | United States | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | $ 3,986 | $ 3,820 | $ 3,730 |
Segment information - Property
Segment information - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment, and software, net | $ 209,202 | $ 181,542 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment, and software, net | 209,106 | 181,470 |
International | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment, and software, net | $ 96 | $ 72 |
Stockholders' equity (deficit_2
Stockholders' equity (deficit) Share Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Aug. 31, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Feb. 01, 2018 | Feb. 29, 2016 | Oct. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock share repurchase program amount | $ 30,000 | ||||||
Number of shares authorized to be repurchased | 702,239 | ||||||
Weighted average price per share (in dollars per share) | $ 42.72 | ||||||
Increase in treasury stock | $ 680,368 | $ 127,186 | $ 55,000 | ||||
Accumulated deficit | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased and retired during period | $ 108,300 | ||||||
Common stock | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Retirement of treasury stock (shares) | 10,629,000 | 2,271,448 | 1,707,000 | ||||
Additional paid-in capital | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Increase in treasury stock | $ 0 | $ 0 | $ (25,000) | ||||
Adjustments to additional paid in capital, other | 25,000 | ||||||
Stock repurchased and retired during period | 18,900 | ||||||
Treasury stock, at cost | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Increase in treasury stock | $ 680,368 | $ 127,186 | $ 80,000 | ||||
Common stock | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Repurchased stock | 458,465 | 513,880 | 520,631 | ||||
Average cost per share | $ 65.44 | $ 52.90 | $ 48.02 | ||||
October 2015 ASR Agreement | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock share repurchase program amount | $ 125,000 | ||||||
Number of shares authorized to be repurchased | 483,913 | 2,527,167 | |||||
Weighted average price per share (in dollars per share) | $ 41.51 | ||||||
Percentage of total shares expected to be repurchased | 80.00% | ||||||
October 2015 ASR Agreement | Accumulated deficit | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased and retired during period | $ 64,100 | ||||||
October 2015 ASR Agreement | Common stock | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased and retired during period | $ 80,000 | ||||||
Retirement of treasury stock (shares) | 1,706,783 | ||||||
October 2015 ASR Agreement | Additional paid-in capital | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchased and retired during period | $ 15,900 | ||||||
October 2015 ASR Agreement | Treasury stock, at cost | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Increase in treasury stock | $ 55,000 | ||||||
May 2017 ASR Agreement | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock share repurchase program amount | $ 100,000 | ||||||
Number of shares authorized to be repurchased | 1,757,568 | ||||||
Weighted average price per share (in dollars per share) | $ 56.90 | ||||||
February 2018 ASR Agreement | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Common stock share repurchase program amount | $ 650,000 | ||||||
Number of shares authorized to be repurchased | 8,478,722 | ||||||
Percentage of total shares expected to be repurchased | 80.00% | ||||||
Repurchased stock | 1,691,832 | ||||||
Average cost per share | $ 63.91 | ||||||
Accelerated Share Repurchases Repurchase One | February 2018 ASR Agreement | Accumulated deficit | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stockholders' Equity, Period Increase (Decrease) | $ 599,200 | ||||||
Accelerated Share Repurchases Repurchase One | February 2018 ASR Agreement | Additional paid-in capital | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stockholders' Equity, Period Increase (Decrease) | $ 81,200 | ||||||
Accelerated Share Repurchases Repurchase One | February 2018 ASR Agreement | Treasury stock, at cost | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Retirement of treasury stock (shares) | 10,629,019,000 |
Stockholders' equity (deficit_3
Stockholders' equity (deficit) Changes in Components of Accumulated Other Comprehensive Income (Detail) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | $ (9,535) |
Other comprehensive income (loss) | (5,592) |
Balance at end of period | (15,127) |
Other | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | (1,451) |
Other comprehensive income (loss) | 631 |
Balance at end of period | (820) |
Effect of foreign currency translation | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at beginning of period | (8,084) |
Other comprehensive income (loss) | (6,223) |
Balance at end of period | $ (14,307) |
Stockholders' equity (deficit_4
Stockholders' equity (deficit) Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||||||||||
Dividend per share of common stock paid (in dollars per share) | $ 0.3475 | $ 0.3475 | $ 0.3475 | $ 0.3475 | $ 0.3225 | $ 0.3225 | $ 0.3225 | $ 0.3225 | |||
Dividends paid on common stock | $ 28,793 | $ 28,596 | $ 28,800 | $ 28,639 | $ 29,092 | $ 29,064 | $ 29,226 | $ 29,621 | $ 114,828 | $ 117,003 | $ 109,703 |
Dividend declared, payment date | Dec. 5, 2018 | Sep. 5, 2018 | Jun. 6, 2018 | Mar. 21, 2018 | Dec. 6, 2017 | Sep. 6, 2017 | Jun. 14, 2017 | Mar. 22, 2017 |
Stockholders' deficit - Additio
Stockholders' deficit - Additional Information (Detail) - $ / shares | Feb. 06, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Disclosure Stockholders Equity Additional Information [Abstract] | ||||
Dividend per share of common stock declared (in dollars per share) | $ 0.3750 | $ 1.39 | $ 1.29 | $ 1.2 |
Equity incentive plans - Textua
Equity incentive plans - Textuals (Details) - USD ($) | Dec. 31, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 24,700,000 | $ 11,100,000 | $ 4,100,000 | |
Grant-date fair value, vested | 8,200,000 | 9,900,000 | 10,600,000 | |
Intrinsic value of options exercised in period | 44,800,000 | 13,000,000 | 5,300,000 | |
Unrecognized compensation costs related to stock options | 12,300,000 | |||
Allocated Share-based compensation expense | $ 14,879,000 | 14,926,000 | 17,181,000 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting period | 4 years | |||
Restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based compensation expense | $ 0 | 0 | 40,000 | |
Employee stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs, weighed average period | 2 years 6 months | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant-date fair value, vested | $ 4,500,000 | $ 4,100,000 | $ 3,500,000 | |
Unrecognized compensation costs related to stock options | $ 5,500,000 | |||
Unrecognized compensation costs, weighed average period | 1 year 8 months 12 days | |||
Granted, weighted average grant-date fair value (in dollars per share) | $ 60.87 | $ 52.44 | $ 44.34 | |
Granted | 87,585 | |||
Allocated Share-based compensation expense | $ 4,569,000 | $ 4,337,000 | $ 3,608,000 | |
Vested (in shares) | 93,524 | |||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs, weighed average period | 1 year 9 months 18 days | |||
Granted, weighted average grant-date fair value (in dollars per share) | $ 60.94 | |||
Granted | 67,993 | 84,705 | 121,030 | |
Unrecognized compensation cost, nonvested awards | $ 3,800,000 | |||
Allocated Share-based compensation expense | $ 1,563,000 | $ 1,277,000 | $ 1,086,000 | |
Award vesting rights, percentage | 200.00% | |||
Equity Incentive Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, weighted average grant-date fair value (in dollars per share) | $ 51.67 | |||
Granted | 27,096 | |||
Grant-date fair value, vested | $ 0 | 0 | $ 1,400,000 | |
Equity Incentive Plan 2011 | Restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, weighted average grant-date fair value (in dollars per share) | $ 37.94 | |||
Granted | 150,000 | |||
Equity Incentive Plan 2011 | Employee stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Granted | 909,027 | |||
Allocated Share-based compensation expense | $ 7,575,000 | $ 8,611,000 | $ 10,654,000 | |
Equity Incentive Plan 2011 | Employee stock option | Common stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 4 years | |||
Maximum contractual term | 7 years | |||
Equity Incentive Plan 2011 | Employee stock option | Common stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum contractual term | 10 years | |||
Performance based shares based on shareholder return | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, weighted average grant-date fair value (in dollars per share) | $ 65.52 | $ 67.52 | $ 55.36 | |
Granted | 30,974 | 37,027 | 39,684 | |
Performance based shares subject to service condition and performance vesting condition | Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, weighted average grant-date fair value (in dollars per share) | $ 57.10 | $ 52.44 | $ 44.22 | |
Granted | 37,019 | 47,678 | 81,346 | |
Nonexecutive | Stock Incentive Plan 2006 | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum shares of common stock that may be delivered in satisfaction of awards (in shares) | 6,200,000 | |||
Subsequent event | Equity Incentive Plan 2011 | Restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 52.20% | |||
Vested (in shares) | 78,300 |
Equity incentive plans Equity i
Equity incentive plans Equity incentive plans - Schedule of Share-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based compensation expense | $ 14,879 | $ 14,926 | $ 17,181 |
Total related tax benefit | 22,749 | 8,339 | 6,955 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based compensation expense | 4,569 | 4,337 | 3,608 |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based compensation expense | 1,563 | 1,277 | 1,086 |
Restricted shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based compensation expense | 0 | 0 | 40 |
Equity Incentive Plan 2011 | Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based compensation expense | 7,575 | 8,611 | 10,654 |
Equity 2011 plan restricted shares | Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based compensation expense | $ 1,172 | $ 701 | $ 1,793 |
Equity incentive plans - Assump
Equity incentive plans - Assumptions In Determining Fair Value of Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Compensation Related Costs [Abstract] | |||
Weighted average grant-date fair value of share options granted | $ 10.44 | $ 9.87 | $ 7.41 |
Weighted average assumptions: Risk-free interest rate | 2.50% | 1.90% | 1.20% |
Weighted average assumptions: Expected Volatility | 23.00% | 24.00% | 25.00% |
Weighted average assumptions: Dividend yield | 2.30% | 2.30% | 0.00% |
Weighted average assumptions: Expected term (years) | 4 years 4 months 24 days | 4 years 10 months 17 days | 4 years 10 months 25 days |
Equity incentive plans - Status
Equity incentive plans - Status of Company Stock Options (Details) - Equity Incentive Plan 2011 - Employee stock option - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of shares, Share options outstanding, beginning balance | 4,367,527 | |
Number of shares, Granted | 909,027 | |
Number of Shares, Exercised | (2,002,848) | |
Number of shares, Forfeited or expired | (277,570) | |
Number of shares, Share options outstanding, ending balance | 2,996,136 | 4,367,527 |
Number of shares, Share options exercisable | 935,868 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, Share options outstanding, beginning balance | $ 47.63 | |
Weighted average exercise price, Granted | 59.60 | |
Weighted average exercise price, Exercised | 46.36 | |
Weighted average exercise price, Forfeited or expired | 51.92 | |
Weighted average exercise price, Share options outstanding, ending balance | 51.71 | $ 47.63 |
Weighted average exercise price, Share options exercisable | $ 46.43 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term (years), Share options outstanding | 4 years 8 months 12 days | 4 years 7 months 6 days |
Weighted average remaining contractual term (years), Share options exercisable | 3 years 8 months 12 days | |
Aggregate intrinsic value (in millions), Share options outstanding | $ 35.1 | |
Aggregate intrinsic value (in millions), Share options exercisable | $ 15.9 |
Equity incentive plans - Restic
Equity incentive plans - Resticted Shares Rollforward (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Number of Shares [Roll Forward] | |||
Number of shares, beginning balance | 175,426 | ||
Granted | 87,585 | ||
Vested | (93,524) | ||
Forfeited | (9,605) | ||
Number of shares, ending balance | 159,882 | 175,426 | |
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Number of shares, beginning balance (usd per share) | $ 48.51 | ||
Granted, weighted average grant-date fair value (in dollars per share) | 60.87 | $ 52.44 | $ 44.34 |
Vested (usd per share) | 48.52 | ||
Forfeited, weighted average grant-date fair value (in dollars per share) | 49.92 | ||
Number of shares, ending balance (usd per share) | $ 55.19 | $ 48.51 | |
Weighted average remaining contractual term (years) | 1 year 4 months 24 days | 1 year 6 months | |
Aggregate intrinsic value (in millions) | $ 10.1 |
Equity incentive plans - Summar
Equity incentive plans - Summary of Changes in Company's PSUs (Details) - Performance shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of shares, beginning balance | 148,586 | ||
Granted (in shares) | 67,993 | 84,705 | 121,030 |
Forfeited (in shares) | (22,010) | ||
Number of shares, ending balance | 194,569 | 148,586 | |
Nonvested performance stock units, weighted average grant-date fair value (in dollars per share) | $ 55.07 | $ 52.72 | |
Granted, weighted average grant-date fair value (in dollars per share) | 60.94 | ||
Forfeited, weighted average grant-date fair value (in dollars per share) | $ 57.35 | ||
Weighted average remaining contractual term (years) | 1 year 1 month 6 days | 1 year 8 months 12 days | |
Aggregate intrinsic value (in millions) | $ 12.3 |
Earnings per Share Computation
Earnings per Share Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Dunkin' Brands-basic and diluted | $ 53,189 | $ 66,067 | $ 60,498 | $ 50,152 | $ 134,654 | $ 41,170 | $ 51,092 | $ 44,293 | $ 229,906 | $ 271,209 | $ 175,289 |
Weighted average number of common shares - basic and diluted: | |||||||||||
Common-basic (in shares) | 83,697,610 | 90,857,168 | 91,568,942 | ||||||||
Common-diluted (in shares) | 84,960,791 | 92,231,436 | 92,538,282 | ||||||||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Common-basic (in dollars per share) | $ 0.64 | $ 0.80 | $ 0.73 | $ 0.58 | $ 1.49 | $ 0.46 | $ 0.56 | $ 0.48 | $ 2.75 | $ 2.99 | $ 1.91 |
Common-diluted (in dollars per share) | $ 0.64 | $ 0.79 | $ 0.72 | $ 0.57 | $ 1.47 | $ 0.45 | $ 0.55 | $ 0.48 | $ 2.71 | $ 2.94 | $ 1.89 |
Earnings Per Shares - Additiona
Earnings Per Shares - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Weighted average number of common shares, dilutive effect (in shares) | 1,263,181 | 1,374,268 | 969,340 |
Anti-dilutive security excluded from calculation, restricted stock awards (in shares) | 184,744 | 150,000 | 150,000 |
Out-of-the-money-stock-options excluded from calculation, common diluted earnings per share (in shares) | 726,203 | 1,382,486 | 3,498,229 |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 29, 2018 | Dec. 31, 2016 | Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Tax Cuts And Jobs Act Of 2017, Income tax benefit provision | $ 96,800 | |||
DTA, foreign jurisdiction | 4,000 | $ 3,400 | ||
Operating loss carryforwards | 6,500 | |||
DTA, operating loss carryforwards | 900 | |||
Operating Loss Carryforwards [Line Items] | ||||
Deferred income taxes, net | 214,345 | 204,027 | ||
Undistributed earnings of foreign operations | 147,400 | 159,600 | ||
Indefinitely reinvested foreign earnings, cash | 21,700 | 22,700 | ||
Unrecognized tax benefits | 1,529 | 2,392 | $ 2,290 | $ 2,653 |
Unrecognized tax benefits, accrued interest and income tax penalties | 600 | 700 | ||
Unrecognized tax benefits, would impact effective tax rate | $ 1,300 | 1,200 | ||
Joint Ventures | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred income taxes, net | 10,300 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforwards, subject to expire 2028 | $ 1,800 |
Income taxes - Income Before Ta
Income taxes - Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 266,080 | $ 261,760 | $ 252,815 |
Foreign operations | 23,121 | 21,567 | 26,322 |
Income before income taxes | $ 289,201 | $ 283,327 | $ 279,137 |
Income taxes - Components of Pr
Income taxes - Components of Provision (Benefit) For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 43,992 | $ 102,349 | $ 97,972 |
State | 21,270 | 27,922 | 28,430 |
Foreign | 3,930 | 3,094 | 3,808 |
Current tax provision | 69,192 | 133,365 | 130,210 |
Deferred: | |||
Federal | (7,262) | (117,054) | (20,891) |
State | (2,967) | (5,900) | (6,069) |
Foreign | 332 | 1,707 | 598 |
Deferred tax benefit | (9,897) | (121,247) | (26,362) |
Provision for income taxes | $ 59,295 | $ 12,118 | $ 103,848 |
Income taxes - Income Tax Rate
Income taxes - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Computed federal income tax expense, at statutory rate | 21.00% | 35.00% | 35.00% |
State income taxes | 6.60% | 5.20% | 5.10% |
Benefits and taxes related to foreign operations | (1.50%) | (1.70%) | (3.10%) |
Excess tax benefits | (6.80%) | (2.80%) | 0.00% |
Change in valuation allowance | 0.60% | 3.20% | 0.00% |
Other permanent differences | 0.60% | (0.50%) | 0.10% |
Impact of Tax Act | 0.00% | (34.90%) | 0.00% |
Other, net | 0.00% | 0.80% | 0.10% |
Effective tax rate | 20.50% | 4.30% | 37.20% |
Income taxes - Components of De
Income taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | $ 2,134 | $ 2,013 |
Deferred tax assets, Capital leases | 2,074 | 2,158 |
Deferred tax assets, Rent, Noncurrent | 9,332 | 9,452 |
Deferred Tax Assets, Property, Plant and Equipment | 1,984 | 375 |
Deferred tax liabilities, Property and equipment | 0 | 0 |
Deferred tax assets, Deferred compensation and long-term incentive accrual | 10,789 | 15,033 |
Deferred Tax Assets, Tax Deferred Expense, Other | 17,402 | 16,676 |
Deferred tax assets, Deferred revenue, Noncurrent | 111,668 | 109,953 |
Deferred tax assets, Real estate rserves, Noncurrent | 980 | 1,153 |
Deferred tax liabilities, Franchise rights and other intangibles | 368,277 | 372,988 |
Deferred tax assets, Unused foreign tax credits | 3,270 | 1,912 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 5,581 | 4,697 |
Deferred Tax Assets, Interest Limitation Carryforward | 5,134 | |
Deferred tax assets, Other, Noncurrent | 162 | 224 |
Deferred tax liabilities, Other, Noncurrent | 0 | 0 |
Deferred tax assets, Gross, Noncurrent | 170,510 | 163,646 |
Deferred tax liabilities, Net, Noncurrent | 368,277 | 372,988 |
Deferred tax assets, Valuation allowance, Noncurrent | (2,827) | (899) |
Deferred tax assets, Total noncurrent | $ 167,683 | $ 162,747 |
Income taxes - Change in Unreco
Income taxes - Change in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 1,529 | $ 2,290 | $ 2,653 |
Increases related to prior year tax positions | 3 | 206 | 267 |
Increases related to current year tax positions | 1,121 | 65 | 161 |
Decreases related to prior year tax positions | (170) | (94) | (33) |
Decreases related to settlements | 0 | (871) | (191) |
Lapses of statutes of limitations | 0 | (140) | (597) |
Effect of foreign currency adjustments, increase | 73 | 30 | |
Effect of foreign currency adjustments, decrease | (91) | ||
Balance at end of year | $ 2,392 | $ 1,529 | $ 2,290 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Commitments and Contingencies Disclosure [Line Items] | ||
Standby letters of credit | $ 32,400 | $ 32,300 |
Amounts drawn on letters of credit | 0 | 0 |
Contingent liabilities related to legal matters | 3,600 | |
Supply commitment | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Guarantee obligation, maximum exposure | $ 119,400 | $ 116,700 |
Retirement plans - Textual (Det
Retirement plans - Textual (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum annual contribution percentage, 401(k) | 80.00% | ||
Employer contributions 401(k) | $ 3.5 | $ 3.4 | $ 3.3 |
NQDC maximum pretax contribution percentage | 50.00% | ||
NQDC plan liability | $ 9.8 | 13.5 | |
NQDC investments held | $ 9.9 | $ 10.8 | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer match percentage 401(k) | 4.00% | 4.00% | 4.00% |
Related-party transactions - Ad
Related-party transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Royalties receivable from joint ventures | $ 5,500 | $ 5,100 | |
Revenue from related parties | 12,445 | ||
B-R 31 Ice Cream Company., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 1,874 | 1,745 | $ 1,873 |
BR-Korea Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 4,569 | 4,525 | 4,030 |
Palm Oasis Ventures Pty. Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 6,002 | 4,242 | 4,277 |
Related Party | |||
Related Party Transaction [Line Items] | |||
Royalty received from joint venture | 10,512 | 10,180 | |
Joint Ventures | |||
Related Party Transaction [Line Items] | |||
Related party transaction, purchases from related party | $ 3,800 | $ 3,300 | 3,200 |
Coffee Alliance, S.L. [Member] | |||
Related Party Transaction [Line Items] | |||
Recovery of note receivables | $ 1,000 |
Allowance for doubtful accoun_3
Allowance for doubtful accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Provision for (recovery of) doubtful accounts, net | $ (631) | $ (457) | $ (53) |
Accounts receivable | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | 3,933 | 4,778 | 5,627 |
Provision for (recovery of) doubtful accounts, net | 606 | 123 | 1,202 |
Write-offs and other | (955) | (968) | (2,051) |
Ending balance | 3,584 | 3,933 | 4,778 |
Short-term notes and other receivables | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | 603 | 339 | 1,007 |
Provision for (recovery of) doubtful accounts, net | 281 | 264 | (189) |
Write-offs and other | 0 | 0 | (479) |
Ending balance | 884 | 603 | 339 |
Long-term notes and other receivables | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | 1,823 | 2,088 | 4,075 |
Provision for (recovery of) doubtful accounts, net | (256) | 70 | (960) |
Write-offs and other | (81) | (335) | (1,027) |
Ending balance | $ 1,486 | $ 1,823 | $ 2,088 |
Quarterly financial data (una_3
Quarterly financial data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||||||||||
Total revenues | $ 319,624 | $ 350,011 | $ 350,640 | $ 301,342 | $ 314,946 | $ 330,071 | $ 334,176 | $ 296,358 | |||
Operating income | 96,559 | 111,592 | 113,850 | 89,831 | 92,161 | 105,272 | 106,836 | 86,773 | $ 411,832 | $ 391,042 | $ 380,602 |
Net income (loss) | $ 53,189 | $ 66,067 | $ 60,498 | $ 50,152 | $ 134,654 | $ 41,170 | $ 51,092 | $ 44,293 | $ 229,906 | $ 271,209 | $ 175,289 |
Common-basic (in dollars per share) | $ 0.64 | $ 0.80 | $ 0.73 | $ 0.58 | $ 1.49 | $ 0.46 | $ 0.56 | $ 0.48 | $ 2.75 | $ 2.99 | $ 1.91 |
Common-diluted (in dollars per share) | $ 0.64 | $ 0.79 | $ 0.72 | $ 0.57 | $ 1.47 | $ 0.45 | $ 0.55 | $ 0.48 | $ 2.71 | $ 2.94 | $ 1.89 |