Domino's Pizza (DPZ) 10-Q 13 Oct 22 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	8 Months Ended
	Sep. 11, 2022	Oct. 06, 2022
Cover [Abstract]
Document Type	10-Q
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Entity Central Index Key	0001286681
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Document Period End Date	Sep. 11, 2022
Entity Registrant Name	Domino’s Pizza, Inc.
Entity File Number	001-32242
Current Fiscal Year End Date	--01-01
Entity Tax Identification Number	38-2511577
Entity Incorporation, State or Country Code	DE
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Address, Address Line One	30 Frank Lloyd Wright Drive
Entity Address, City or Town	Ann Arbor
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48105
City Area Code	734
Local Phone Number	930-3030
Trading Symbol	DPZ
Security Exchange Name	NYSE
Title of 12(b) Security	Common Stock
Entity Common Stock, Shares Outstanding		35,399,379

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 11, 2022	Jan. 02, 2022	[1]
Current assets:
Cash and cash equivalents	$ 114,776	$ 148,160
Restricted cash and cash equivalents	184,564	180,579
Accounts receivable, net	242,775	255,327
Inventories	72,586	68,328
Prepaid expenses and other	30,497	27,242
Advertising fund assets, restricted	181,200	180,904
Total current assets	826,398	860,540
Property, plant and equipment:
Land and buildings	106,907	108,372
Leasehold and other improvements	197,462	193,572
Equipment	329,687	312,772
Construction in progress	26,874	27,815
Property, plant and equipment, Gross	660,930	642,531
Accumulated depreciation and amortization	(349,643)	(318,466)
Property, plant and equipment, net	311,287	324,065
Other assets:
Operating lease right-of-use assets	217,739	210,702
Goodwill	16,153	15,034
Capitalized software, net	105,541	95,558
Investments	125,840	125,840
Other assets	41,260	37,968
Deferred income taxes	2,191	2,109
Total other assets	508,724	487,211
Total assets	1,646,409	1,671,816
Current liabilities:
Current portion of long-term debt	55,787	55,588
Accounts payable	91,299	91,547
Operating lease liabilities	40,823	37,155
Insurance reserves	32,971	32,588
Dividends payable	39,632	918
Advertising fund liabilities	173,345	173,737
Other accrued liabilities	144,880	199,208
Total current liabilities	578,737	590,741
Long-term liabilities:
Long-term debt, less current portion	5,097,292	5,014,638
Operating lease liabilities	190,248	184,471
Insurance reserves	38,145	36,913
Other accrued liabilities	49,455	50,667
Deferred income taxes	9,077	3,922
Total long-term liabilities	5,384,217	5,290,611
Stockholders' deficit
Common stock	354	361
Additional paid-in capital	587	840
Retained deficit	(4,313,643)	(4,207,917)
Accumulated other comprehensive loss	(3,843)	(2,820)
Total stockholders' deficit	(4,316,545)	(4,209,536)
Total liabilities and stockholders' deficit	$ 1,646,409	$ 1,671,816
[1] The condensed consolidated balance sheet at January 2, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Revenues:
Revenue	$ 1,068,596	$ 997,990	$ 3,144,927	$ 3,014,160
Cost of sales:
Cost of sales	686,746	612,790	2,008,188	1,832,119
Operating margin	381,850	385,200	1,136,739	1,182,041
General and administrative	91,205	96,342	285,769	288,043
U.S. franchise advertising	114,193	108,578	331,863	336,278
Income from operations	176,452	180,280	519,107	557,720
Other Income	0	0	0	2,500
Interest income	833	48	1,101	138
Interest expense	(45,437)	(45,523)	(137,160)	(130,822)
Income before provision for income taxes	131,848	134,805	383,048	429,536
Provision for income taxes	31,344	14,403	89,087	74,754
Net income	$ 100,504	$ 120,402	$ 293,961	$ 354,782
Earnings per share:
Common stock - basic	$ 2.82	$ 3.29	$ 8.20	$ 9.43
Common stock - diluted	$ 2.79	$ 3.24	$ 8.11	$ 9.30
U.S. Stores [Member] | U.S. Company-owned stores [Member]
Revenues:
Revenue	$ 112,388	$ 108,416	$ 328,785	$ 337,749
Cost of sales:
Cost of sales	98,589	86,932	280,029	260,693
U.S. Stores [Member] | U.S. franchise stores [Member]
Revenues:
Revenue	128,878	121,624	379,261	372,946
U.S. Stores [Member] | U.S. franchise advertising [Member]
Revenues:
Revenue	114,193	108,578	331,863	336,278
Supply Chain [Member] | Supply Chain Center [Member]
Revenues:
Revenue	646,082	588,819	1,902,215	1,760,119
Cost of sales:
Cost of sales	588,157	525,858	1,728,159	1,571,426
International Franchise [Member] | International franchise royalties and fees [Member]
Revenues:
Revenue	$ 67,055	$ 70,553	$ 202,803	$ 207,068

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 100,504	$ 120,402	$ 293,961	$ 354,782
Currency translation adjustment	47	(404)	(1,023)	12
Comprehensive income	$ 100,551	$ 119,998	$ 292,938	$ 354,794

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	8 Months Ended
	Sep. 11, 2022		Sep. 12, 2021
Cash flows from operating activities:
Net income	$ 293,961		$ 354,782
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	56,026		50,219
Loss on sale/disposal of assets	475		493
Amortization of debt issuance costs	3,937		5,770
Provision for deferred income taxes	5,912		4,831
Non-cash equity-based compensation expense	21,590		19,453
Excess tax benefits from equity-based compensation	(907)		(18,258)
Provision for losses on accounts and notes receivable	2,870		532
Unrealized gain on investments	0		(2,500)
Changes in operating assets and liabilities	(49,288)		20,212
Changes in advertising fund assets and liabilities, restricted	(4,422)		49,067
Net cash provided by operating activities	330,154		484,601
Cash flows from investing activities:
Capital expenditures	(50,508)		(50,652)
Purchase of investments	0		(40,000)
Purchases of franchise operations and other assets	(6,814)		0
Other	(1,375)		306
Net cash used in investing activities	(58,697)		(90,346)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	120,000		1,850,000
Repayments of long-term debt and finance lease obligations	(41,441)		(896,193)
Proceeds from exercise of stock options	1,296		15,948
Purchases of common stock	(293,739)		(1,104,687)
Tax payments for restricted stock upon vesting	(10,691)		(6,817)
Payments of common stock dividends and equivalents	(79,689)		(71,218)
Cash paid for financing costs	0		(14,938)
Other	0		(244)
Net cash used in financing activities	(304,264)		(228,149)
Effect of exchange rate changes on cash	(611)		58
Change in cash and cash equivalents, restricted cash and cash equivalents	(33,418)		166,164
Cash and cash equivalents, beginning of period	148,160	[1]	168,821
Restricted cash and cash equivalents, beginning of period	180,579	[1]	217,453
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period	161,741		115,872
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period	490,480		502,146
Cash and cash equivalents, end of period	114,776		295,352
Restricted cash and cash equivalents, end of period	184,564		206,274
Cash and cash equivalents included in advertising fund assets, restricted, end of period	157,722		166,684
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period	$ 457,062		$ 668,310
[1] The condensed consolidated balance sheet at January 2, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

Basis of Presentation

Basis of Presentation	8 Months Ended
	Sep. 11, 2022
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, refer to the consolidated financial statements and footnotes for the fiscal year ended January 2, 2022 included in the Company’s 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 1, 2022 (the “2021 Form 10-K”). In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair statement have been included. Operating results for the fiscal quarter and three fiscal quarters ended September 11, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending January 1, 2023 .

Segment Information

Segment Information	8 Months Ended
	Sep. 11, 2022
Segment Reporting [Abstract]
Segment Information	2. Segment Information The following tables summarize revenues and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Fiscal Quarters Ended September 11, 2022 and September 12, 2021 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2022 $ 355,459 $ 683,267 $ 67,055 $ ( 37,185 ) $ — $ 1,068,596 2021 338,618 619,840 70,553 ( 31,021 ) — 997,990 Segment Income 2022 $ 100,529 $ 49,892 $ 53,762 N/A $ ( 2,919 ) $ 201,264 2021 101,968 53,579 57,311 N/A ( 10,010 ) 202,848 Three Fiscal Quarters Ended September 11, 2022 and September 12, 2021 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2022 $ 1,039,909 $ 2,008,526 $ 202,803 $ ( 106,311 ) $ — $ 3,144,927 2021 1,046,973 1,854,609 207,068 ( 94,490 ) — 3,014,160 Segment Income 2022 $ 301,876 $ 149,874 $ 161,698 N/A $ ( 16,250 ) $ 597,198 2021 321,252 164,723 168,145 N/A ( 25,726 ) 628,394 The following table reconciles total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Total Segment Income $ 201,264 $ 202,848 $ 597,198 $ 628,394 Depreciation and amortization ( 18,933 ) ( 16,578 ) ( 56,026 ) ( 50,219 ) Loss on sale/disposal of assets ( 27 ) ( 37 ) ( 475 ) ( 493 ) Non-cash equity-based compensation expense ( 5,852 ) ( 5,953 ) ( 21,590 ) ( 19,453 ) Recapitalization-related expenses — — — ( 509 ) Income from operations 176,452 180,280 519,107 557,720 Other income — — — 2,500 Interest income 833 48 1,101 138 Interest expense ( 45,437 ) ( 45,523 ) ( 137,160 ) ( 130,822 ) Income before provision for income taxes $ 131,848 $ 134,805 $ 383,048 $ 429,536

Earnings Per Share

Earnings Per Share	8 Months Ended
	Sep. 11, 2022
Earnings Per Share [Abstract]
Earnings Per Share	3. Earnings Per Share Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Net income available to common stockholders - basic and diluted $ 100,504 $ 120,402 $ 293,961 $ 354,782 Basic weighted average number of shares 35,692,744 36,627,660 35,869,581 37,639,418 Earnings per share – basic $ 2.82 $ 3.29 $ 8.20 $ 9.43 Diluted weighted average number of shares 36,062,316 37,130,209 36,265,918 38,144,509 Earnings per share – diluted $ 2.79 $ 3.24 $ 8.11 $ 9.30 The denominators used in calculating diluted earnings per share for common stock for the fiscal quarters and three fiscal quarters each ended September 11, 2022 and September 12, 2021 do not include the following because the effect of including these shares would be anti-dilutive or because the performance condition for these awards had not yet been met: Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Anti-dilutive shares underlying stock-based awards Stock options 116,641 625 117,328 80,103 Restricted stock awards and units 1,561 — 1,285 5,641 Performance condition not met Restricted stock awards and units 41,800 62,131 41,800 62,131

Stockholders' Deficit

Stockholders' Deficit	8 Months Ended
	Sep. 11, 2022
Federal Home Loan Banks [Abstract]
Stockholders' Deficit	4. Stockholders’ Deficit The following table summarizes the changes in stockholders’ deficit for the third quarter of 2022: Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 ) Net income — — — 100,504 — Dividends declared on common stock and equivalents 1.10 per share) — — — ( 39,035 ) — Issuance and cancellation of stock awards, net 1,569 — — — — Tax payments for restricted stock upon vesting ( 20,787 ) — ( 7,925 ) ( 371 ) — Purchases of common stock ( 490,789 ) ( 5 ) ( 1,699 ) ( 194,374 ) — Exercise of stock options 8,573 — 770 — — Non-cash equity-based compensation expense — — 5,852 — — Currency translation adjustment — — — — 47 Balance at September 11, 2022 35,398,212 $ 354 $ 587 $ ( 4,313,643 ) $ ( 3,843 ) The following table summarizes the changes in stockholders’ deficit for the three fiscal quarters of 2022: Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 2, 2022 36,138,273 $ 361 $ 840 $ ( 4,207,917 ) $ ( 2,820 ) Net income — — — 293,961 — Dividends declared on common stock and equivalents 3.30 per share) — — — ( 118,403 ) — Issuance and cancellation of stock awards, net 15,775 — — — — Tax payments for restricted stock upon vesting ( 26,612 ) — ( 10,320 ) ( 371 ) — Purchases of common stock ( 739,847 ) ( 7 ) ( 12,819 ) ( 280,913 ) — Exercise of stock options 10,623 — 1,296 — — Non-cash equity-based compensation expense — — 21,590 — — Currency translation adjustment — — — — ( 1,023 ) Balance at September 11, 2022 35,398,212 $ 354 $ 587 $ ( 4,313,643 ) $ ( 3,843 ) Subsequent to the end of the third quarter of 2022 , on October 11, 2022 , the Company’s Board of Directors declared a $ 1.10 per share quarterly dividend on its outstanding common stock for shareholders of record as of December 15, 2022 to be paid on December 30, 2022 . The following table summarizes the changes in stockholders’ deficit for the third quarter of 2021: Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 20, 2021 36,853,571 $ 369 $ 7,771 $ ( 4,146,702 ) $ ( 2,008 ) Net income — — — 120,402 — Dividends declared on common stock and equivalents 0.94 per share) — — — ( 34,400 ) — Issuance and cancellation of stock awards, net 938 — — — — Tax payments for restricted stock upon vesting ( 11,918 ) — ( 5,730 ) — — Purchases of common stock ( 391,007 ) ( 4 ) ( 14,801 ) ( 64,882 ) — Exercise of stock options 113,903 1 6,922 — — Non-cash equity-based compensation expense — — 5,953 — — Currency translation adjustment — — — — ( 404 ) Balance at September 12, 2021 36,565,487 $ 366 $ 115 $ ( 4,125,582 ) $ ( 2,412 ) The following table summarizes the changes in stockholders’ deficit for the three fiscal quarters of 2021: Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 3, 2021 38,868,350 $ 389 $ 5,122 $ ( 3,303,492 ) $ ( 2,424 ) Net income — — — 354,782 — Dividends declared on common stock and equivalents 2.82 per share) — — — ( 105,555 ) — Issuance and cancellation of stock awards, net ( 980 ) — — — — Tax payments for restricted stock upon vesting ( 14,819 ) — ( 6,817 ) — — Purchases of common stock ( 2,469,473 ) ( 25 ) ( 33,345 ) ( 1,071,317 ) — Exercise of stock options 182,409 2 15,946 — — Non-cash equity-based compensation expense — — 19,453 — — Other — — ( 244 ) — — Currency translation adjustment — — — — 12 Balance at September 12, 2021 36,565,487 $ 366 $ 115 $ ( 4,125,582 ) $ ( 2,412 )

2022 Variable Funding Notes

2022 Variable Funding Notes	8 Months Ended
	Sep. 11, 2022
Debt Disclosure [Abstract]
2022 Variable Funding Notes	5. 2022 Variable Funding Notes Subsequent to the end of the third quarter of 2022 , on September 16, 2022 (the “Closing Date”), certain of the Company’s subsidiaries issued a new variable funding note facility which allows for advances of up to $ 120.0 million of Series 2022-1 Variable Funding Senior Secured Notes, Class A-1 Notes (the “2022 Variable Funding Notes”). The 2022 Variable Funding Notes were undrawn on the Closing Date. The Company's existing $ 200.0 million Series 2021-1 Variable Funding Senior Secured Notes, Class A-1 Notes (the “2021 Variable Funding Notes”) also remain in place.

Fair Value Measurements

Fair Value Measurements	8 Months Ended
	Sep. 11, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	6. Fair Value Measurements Fair value measurements enable the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair Value of Cash Equivalents and Investments The fair values of the Company’s cash equivalents and investments in marketable securities are based on quoted prices in active markets for identical assets. The fair value of the Company’s Level 3 investment is not readily determinable. The fair value represents its cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairments. The following tables summarize the carrying amounts and fair values of certain assets at September 11, 2022 and January 2, 2022: At September 11, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 73,258 $ 73,258 $ — $ — Restricted cash equivalents 117,195 117,195 — — Investments in marketable securities 13,498 13,498 — — Advertising fund cash equivalents, restricted 146,235 146,235 — — Investments 125,840 — — 125,840 At January 2, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 87,384 $ 87,384 $ — $ — Restricted cash equivalents 115,185 115,185 — — Investments in marketable securities 15,433 15,433 — — Advertising fund cash equivalents, restricted 140,115 140,115 — — Investments 125,840 — — 125,840 The Company holds a non-controlling interest in DPC Dash Ltd, a privately-held business company limited by shares incorporated with limited liability under the laws of the British Virgin Islands (“DPC Dash”). Through its subsidiaries, DPC Dash serves as the Company’s master franchisee in China that owns and operates Domino’s Pizza stores in that market. The Company’s investment in DPC Dash’s senior ordinary shares, which are not in-substance common stock, represents an equity investment without a readily determinable fair value and is recorded at cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairments. The Company did not record any adjustments to the carrying amount of $ 125.8 million in the third quarter or three fiscal quarters of 2022 . The following table summarizes the reconciliation of the carrying amount of the Company’s investment in DPC Dash from the opening balance at January 3, 2021 to the closing balance at September 12, 2021 as a result of the additional investment made in the first quarter of 2021: Three Fiscal Quarters Ended September 12, 2021 Carrying Amount Carrying Amount January 3, Unrealized September 12, 2021 Purchases Gain 2021 Investments $ 40,000 $ 40,000 $ 2,500 $ 82,500 Fair Value of Debt The estimated fair values of the Company’s fixed rate notes are classified as Level 2 measurements, as the Company estimates the fair value amount by using available market information. The Company obtained quotes from two separate brokerage firms that are knowledgeable about the Company’s fixed rate notes and, at times, trade these notes. The Company also performed its own internal analysis based on the information gathered from public markets, including information on notes that are similar to those of the Company. However, considerable judgment is required to interpret market data to estimate fair value. Accordingly, the fair value estimates presented are not necessarily indicative of the amount that the Company or the debtholders could realize in a current market exchange. The use of different assumptions and/or estimation methodologies may have a material effect on the estimated fair values stated below. M anagement estimated the approximate fair values of the Company's 2015, 2017, 2018, 2019 and 2021 fixed rate notes as follows: September 11, 2022 January 2, 2022 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year Notes $ 754,000 $ 734,396 $ 760,000 $ 777,480 2017 Ten-Year Notes 955,000 899,610 962,500 1,000,038 2018 7.5-Year Notes 409,063 394,336 412,250 420,907 2018 9.25-Year Notes 385,000 365,750 388,000 407,788 2019 Ten-Year Notes 658,125 590,996 663,188 693,031 2021 7.5-Year Notes 839,375 722,702 845,750 849,133 2021 Ten-Year Notes 987,500 834,438 995,000 1,017,885 The Company’s 2021 Variable Funding Notes are a variable rate loan and the fair value of this loan approximates book value based on the borrowing rates currently available for variable rate loans obtained from third party lending institutions. This fair value represents a Level 2 measurement. The Company had $ 120.0 million of outstanding borrowings under its 2021 Variable Funding Notes at September 11, 2022 and, subsequent to the end of the third quarter of 2022 , repaid $ 60.0 million of these outstanding borrowings. The Company did not have any outstanding borrowings under its 2021 Variable Funding Notes as of January 2, 2022 .

Revenue Disclosures

Revenue Disclosures	8 Months Ended
	Sep. 11, 2022
Revenue from Contract with Customer [Abstract]
Revenue Disclosures	7. Revenue Disclosures Contract Liabilities Contract liabilities primarily consist of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $ 5.5 million and $ 5.4 million were included in current other accrued liabilities as of September 11, 2022 and January 2, 2022 , respectively. Deferred franchise fees and deferred development fees of $ 23.3 million and $ 24.3 million were included in long-term other accrued liabilities as of September 11, 2022 and January 2, 2022, respectively. Changes in deferred franchise fees and deferred development fees for the three fiscal quarters of 2022 and the three fiscal quarters of 2021 were as follows: Three Fiscal Quarters Ended September 11, September 12, 2022 2021 Deferred franchise fees and deferred development fees at beginning of period $ 29,694 $ 19,090 Revenue recognized during the period ( 4,688 ) ( 3,944 ) New deferrals due to cash received and other 3,774 4,784 Deferred franchise fees and deferred development fees at end of period $ 28,780 $ 19,930 Advertising Fund Assets As of September 11, 2022, advertising fund assets, restricted of $ 181.2 million consisted of $ 157.7 million of cash and cash equivalents, $ 16.4 million of accounts receivable and $ 7.1 million of prepaid expenses. As of September 11, 2022, advertising fund cash and cash equivalents included $ 7.9 million of cash contributed from U.S. Company-owned stores that had not yet been expended. As of January 2, 2022 , advertising fund assets, restricted of $ 180.9 million consisted of $ 161.7 million of cash and cash equivalents, $ 14.5 million of accounts receivable and $ 4.7 million of prepaid expenses. As of January 2, 2022 , advertising fund cash and cash equivalents included $ 7.2 million of cash contributed from U.S. Company-owned stores that had not yet been expended.

Leases

Leases	8 Months Ended
	Sep. 11, 2022
Leases [Abstract]
Leases	8. Leases The Company leases certain retail store and supply chain center locations, supply chain vehicles, equipment and its corporate headquarters with expiration dates through 2041. The components of operating and finance lease cost for the third quarter and three fiscal quarters of 2022 and the third quarter and three fiscal quarters of 2021 were as follows: Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Operating lease cost $ 11,302 $ 10,451 $ 32,366 $ 31,201 Finance lease cost: Amortization of right-of-use assets 1,228 1,022 3,631 2,944 Interest on lease liabilities 1,086 1,050 2,922 2,798 Total finance lease cost $ 2,314 $ 2,072 $ 6,553 $ 5,742 Rent expense totaled $ 17.5 million and $ 55.4 million in the third quarter and three fiscal quarters of 2022 , respectively. Rent expense totaled $ 18.3 million and $ 54.4 million in the third quarter and three fiscal quarters of 2021 , respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and other costs for the Company’s real estate leases. Rent expense also includes the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers and expense for short-term rentals. Rent expense for certain short-term supply chain center tractor and trailer rentals was $ 1.3 million and $ 5.1 million in the third quarter and three fiscal quarters of 2022 , respectively. Rent expense for short-term supply chain center tractor and trailer rentals was $ 1.8 million and $ 5.6 million in the third quarter and three fiscal quarters of 2021, respectively. Variable rent expense and rent expense for other short-term leases were immaterial in both the third quarter and three fiscal quarters of 2022 and 2021. Supplemental balance sheet information related to the Company’s finance leases as of September 11, 2022 and January 2, 2022 was as follows: September 11, January 2, 2022 2022 Land and buildings $ 85,489 $ 86,965 Equipment 1,802 — Finance lease assets 87,291 86,965 Accumulated depreciation and amortization ( 18,031 ) ( 14,423 ) Finance lease assets, net $ 69,260 $ 72,542 Current portion of long-term debt $ 4,287 $ 4,088 Long-term debt , less current portion 69,591 72,250 Total principal payable on finance leases $ 73,878 $ 76,338 As of September 11, 2022 and January 2, 2022, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: September 11, 2022 January 2, 2022 Operating Finance Operating Finance Leases Leases Leases Leases Weighted average remaining lease term 6 years 14 years 7 years 15 years Weighted average discount rate 3.6 % 5.8 % 3.5 % 5.8 % Supplemental cash flow information related to leases for the third quarter and three fiscal quarters of 2022 and the third quarter and three fiscal quarters of 2021 were as follows: Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,581 $ 10,236 $ 30,076 $ 29,528 Operating cash flows from finance leases 1,086 1,050 2,922 2,798 Financing cash flows from finance leases 1,038 771 2,816 2,068 Right-of-use assets obtained in exchange for lease obligations: Operating leases 4,241 7,785 35,405 19,138 Finance leases 453 390 453 6,050 Maturities of lease liabilities as of September 11, 2022 were as follows: Operating Finance Leases Leases 2022 $ 18,493 $ 2,745 2023 43,705 7,623 2024 43,399 8,209 2025 37,856 8,028 2026 35,257 8,724 Thereafter 81,564 77,868 Total future minimum rental commitments 260,274 113,197 Less – amounts representing interest ( 29,203 ) ( 39,319 ) Total lease liabilities $ 231,071 $ 73,878 As of September 11, 2022 , the Company had additional leases for one supply chain center, one storage warehouse facility and certain supply chain and U.S. Company-owned store vehicles that had not yet commenced with estimated future minimum rental commitments of approximately $ 72.3 million. These leases are expected to commence in 2022 and 2023 with lease terms of up to 16 years . These undiscounted amounts are not included in the table above. The Company has guaranteed lease payments related to certain franchisees’ and others’ lease arrangements. The maximum amount of potential future payments under these guarantees was $ 7.1 million and $ 9.1 million as of September 11, 2022 and January 2, 2022 , respectively. The Company does not believe these arrangements have had or are likely to have a material effect on its results of operations, financial condition, revenues, expenses or liquidity.

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information	8 Months Ended
	Sep. 11, 2022
Supplemental Cash Flow Elements [Abstract]
Supplemental Disclosures of Cash Flow Information	9. Supplemental Disclosures of Cash Flow Information The Company had non-cash investing activities related to accruals for capital expenditures of $ 6.0 million at September 11, 2022 and $ 5.4 million at January 2, 2022 . The Company also had $ 0.1 million of non-cash investing activities related to lease incentives in the three fiscal quarters of both 2022 and 2021 .

Company-owned Store Transaction

Company-owned Store Transactions	8 Months Ended
	Sep. 11, 2022
Business Combinations [Abstract]
Company-owned Store Transactions	10. Company-owned Store Transactions During the first quarter of 2022, the Company purchased 23 U.S. franchised stores from certain of the Company ’ s existing U.S. franchisees for $ 6.8 million, which included $ 4.0 million of intangibles, $ 1.7 million of equipment and leasehold improvements and $ 1.1 million of goodwill. Subsequent to the end of the third quarter of 2022 , the Company sold 114 U.S. Company-owned stores in Arizona and Utah to certain of its franchisees for $ 41.1 million, and the Company expects to record a gain on this transaction in the fourth quarter of 2022. The accounting for this transaction is still in process as of the date these condensed consolidated financial statements were issued and therefore the Company is unable to make any additional disclosures.

New Accounting Pronouncements

New Accounting Pronouncements	8 Months Ended
	Sep. 11, 2022
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	11. New Accounting Pronouncements Accounting Standards Not Yet Adopted The Company has considered all new accounting standards issued by the Financial Accounting Standards Board (“FASB”). The Company has not yet adopted the following standard. Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) , which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. The Company’s 2021 Variable Funding Notes bear interest at fluctuating interest rates based on LIBOR. However, the associated loan documents contemplate a transition from LIBOR to secured overnight financing rate (“SOFR”) in the event that LIBOR ceases to exist. The Company’s 2022 Variable Funding Notes bear interest at fluctuating interest rates based on SOFR. ASU 2020-04 may currently be adopted and may be applied prospectively to contract modifications made on or before December 31, 2022. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements.

Segment Information (Tables)

Segment Information (Tables)	8 Months Ended
	Sep. 11, 2022
Segment Reporting [Abstract]
Financial Information by Operating Segment	The following tables summarize revenues and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Fiscal Quarters Ended September 11, 2022 and September 12, 2021 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2022 $ 355,459 $ 683,267 $ 67,055 $ ( 37,185 ) $ — $ 1,068,596 2021 338,618 619,840 70,553 ( 31,021 ) — 997,990 Segment Income 2022 $ 100,529 $ 49,892 $ 53,762 N/A $ ( 2,919 ) $ 201,264 2021 101,968 53,579 57,311 N/A ( 10,010 ) 202,848 Three Fiscal Quarters Ended September 11, 2022 and September 12, 2021 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2022 $ 1,039,909 $ 2,008,526 $ 202,803 $ ( 106,311 ) $ — $ 3,144,927 2021 1,046,973 1,854,609 207,068 ( 94,490 ) — 3,014,160 Segment Income 2022 $ 301,876 $ 149,874 $ 161,698 N/A $ ( 16,250 ) $ 597,198 2021 321,252 164,723 168,145 N/A ( 25,726 ) 628,394
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes	The following table reconciles total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Total Segment Income $ 201,264 $ 202,848 $ 597,198 $ 628,394 Depreciation and amortization ( 18,933 ) ( 16,578 ) ( 56,026 ) ( 50,219 ) Loss on sale/disposal of assets ( 27 ) ( 37 ) ( 475 ) ( 493 ) Non-cash equity-based compensation expense ( 5,852 ) ( 5,953 ) ( 21,590 ) ( 19,453 ) Recapitalization-related expenses — — — ( 509 ) Income from operations 176,452 180,280 519,107 557,720 Other income — — — 2,500 Interest income 833 48 1,101 138 Interest expense ( 45,437 ) ( 45,523 ) ( 137,160 ) ( 130,822 ) Income before provision for income taxes $ 131,848 $ 134,805 $ 383,048 $ 429,536

Earnings Per Share (Tables)

Earnings Per Share (Tables)	8 Months Ended
	Sep. 11, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Net income available to common stockholders - basic and diluted $ 100,504 $ 120,402 $ 293,961 $ 354,782 Basic weighted average number of shares 35,692,744 36,627,660 35,869,581 37,639,418 Earnings per share – basic $ 2.82 $ 3.29 $ 8.20 $ 9.43 Diluted weighted average number of shares 36,062,316 37,130,209 36,265,918 38,144,509 Earnings per share – diluted $ 2.79 $ 3.24 $ 8.11 $ 9.30
Schedule of Denominators Used in Calculating Earning Per Common Share	The denominators used in calculating diluted earnings per share for common stock for the fiscal quarters and three fiscal quarters each ended September 11, 2022 and September 12, 2021 do not include the following because the effect of including these shares would be anti-dilutive or because the performance condition for these awards had not yet been met: Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Anti-dilutive shares underlying stock-based awards Stock options 116,641 625 117,328 80,103 Restricted stock awards and units 1,561 — 1,285 5,641 Performance condition not met Restricted stock awards and units 41,800 62,131 41,800 62,131

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	8 Months Ended
	Sep. 11, 2022
Federal Home Loan Banks [Abstract]
Changes in Stockholders' Deficit	The following table summarizes the changes in stockholders’ deficit for the third quarter of 2022: Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 ) Net income — — — 100,504 — Dividends declared on common stock and equivalents 1.10 per share) — — — ( 39,035 ) — Issuance and cancellation of stock awards, net 1,569 — — — — Tax payments for restricted stock upon vesting ( 20,787 ) — ( 7,925 ) ( 371 ) — Purchases of common stock ( 490,789 ) ( 5 ) ( 1,699 ) ( 194,374 ) — Exercise of stock options 8,573 — 770 — — Non-cash equity-based compensation expense — — 5,852 — — Currency translation adjustment — — — — 47 Balance at September 11, 2022 35,398,212 $ 354 $ 587 $ ( 4,313,643 ) $ ( 3,843 ) The following table summarizes the changes in stockholders’ deficit for the three fiscal quarters of 2022: Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 2, 2022 36,138,273 $ 361 $ 840 $ ( 4,207,917 ) $ ( 2,820 ) Net income — — — 293,961 — Dividends declared on common stock and equivalents 3.30 per share) — — — ( 118,403 ) — Issuance and cancellation of stock awards, net 15,775 — — — — Tax payments for restricted stock upon vesting ( 26,612 ) — ( 10,320 ) ( 371 ) — Purchases of common stock ( 739,847 ) ( 7 ) ( 12,819 ) ( 280,913 ) — Exercise of stock options 10,623 — 1,296 — — Non-cash equity-based compensation expense — — 21,590 — — Currency translation adjustment — — — — ( 1,023 ) Balance at September 11, 2022 35,398,212 $ 354 $ 587 $ ( 4,313,643 ) $ ( 3,843 ) The following table summarizes the changes in stockholders’ deficit for the third quarter of 2021: Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at June 20, 2021 36,853,571 $ 369 $ 7,771 $ ( 4,146,702 ) $ ( 2,008 ) Net income — — — 120,402 — Dividends declared on common stock and equivalents 0.94 per share) — — — ( 34,400 ) — Issuance and cancellation of stock awards, net 938 — — — — Tax payments for restricted stock upon vesting ( 11,918 ) — ( 5,730 ) — — Purchases of common stock ( 391,007 ) ( 4 ) ( 14,801 ) ( 64,882 ) — Exercise of stock options 113,903 1 6,922 — — Non-cash equity-based compensation expense — — 5,953 — — Currency translation adjustment — — — — ( 404 ) Balance at September 12, 2021 36,565,487 $ 366 $ 115 $ ( 4,125,582 ) $ ( 2,412 ) The following table summarizes the changes in stockholders’ deficit for the three fiscal quarters of 2021: Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 3, 2021 38,868,350 $ 389 $ 5,122 $ ( 3,303,492 ) $ ( 2,424 ) Net income — — — 354,782 — Dividends declared on common stock and equivalents 2.82 per share) — — — ( 105,555 ) — Issuance and cancellation of stock awards, net ( 980 ) — — — — Tax payments for restricted stock upon vesting ( 14,819 ) — ( 6,817 ) — — Purchases of common stock ( 2,469,473 ) ( 25 ) ( 33,345 ) ( 1,071,317 ) — Exercise of stock options 182,409 2 15,946 — — Non-cash equity-based compensation expense — — 19,453 — — Other — — ( 244 ) — — Currency translation adjustment — — — — 12 Balance at September 12, 2021 36,565,487 $ 366 $ 115 $ ( 4,125,582 ) $ ( 2,412 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	8 Months Ended
	Sep. 11, 2022
Fair Value Disclosures [Abstract]
Carrying Amounts and Fair Values of Certain Assets	The following tables summarize the carrying amounts and fair values of certain assets at September 11, 2022 and January 2, 2022: At September 11, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 73,258 $ 73,258 $ — $ — Restricted cash equivalents 117,195 117,195 — — Investments in marketable securities 13,498 13,498 — — Advertising fund cash equivalents, restricted 146,235 146,235 — — Investments 125,840 — — 125,840 At January 2, 2022 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 87,384 $ 87,384 $ — $ — Restricted cash equivalents 115,185 115,185 — — Investments in marketable securities 15,433 15,433 — — Advertising fund cash equivalents, restricted 140,115 140,115 — — Investments 125,840 — — 125,840
Summary of reconciliation of the carrying amount of the Company's investment in DPC Dash	The following table summarizes the reconciliation of the carrying amount of the Company’s investment in DPC Dash from the opening balance at January 3, 2021 to the closing balance at September 12, 2021 as a result of the additional investment made in the first quarter of 2021: Three Fiscal Quarters Ended September 12, 2021 Carrying Amount Carrying Amount January 3, Unrealized September 12, 2021 Purchases Gain 2021 Investments $ 40,000 $ 40,000 $ 2,500 $ 82,500
Schedule of Estimated Fair Value	anagement estimated the approximate fair values of the Company's 2015, 2017, 2018, 2019 and 2021 fixed rate notes as follows: September 11, 2022 January 2, 2022 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year Notes $ 754,000 $ 734,396 $ 760,000 $ 777,480 2017 Ten-Year Notes 955,000 899,610 962,500 1,000,038 2018 7.5-Year Notes 409,063 394,336 412,250 420,907 2018 9.25-Year Notes 385,000 365,750 388,000 407,788 2019 Ten-Year Notes 658,125 590,996 663,188 693,031 2021 7.5-Year Notes 839,375 722,702 845,750 849,133 2021 Ten-Year Notes 987,500 834,438 995,000 1,017,885

Revenue Disclosures (Tables)

Revenue Disclosures (Tables)	8 Months Ended
	Sep. 11, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees	Changes in deferred franchise fees and deferred development fees for the three fiscal quarters of 2022 and the three fiscal quarters of 2021 were as follows: Three Fiscal Quarters Ended September 11, September 12, 2022 2021 Deferred franchise fees and deferred development fees at beginning of period $ 29,694 $ 19,090 Revenue recognized during the period ( 4,688 ) ( 3,944 ) New deferrals due to cash received and other 3,774 4,784 Deferred franchise fees and deferred development fees at end of period $ 28,780 $ 19,930

Leases (Tables)

Leases (Tables)	8 Months Ended
	Sep. 11, 2022
Leases [Abstract]
Components Of Operating And Finance Lease Cost	The components of operating and finance lease cost for the third quarter and three fiscal quarters of 2022 and the third quarter and three fiscal quarters of 2021 were as follows: Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Operating lease cost $ 11,302 $ 10,451 $ 32,366 $ 31,201 Finance lease cost: Amortization of right-of-use assets 1,228 1,022 3,631 2,944 Interest on lease liabilities 1,086 1,050 2,922 2,798 Total finance lease cost $ 2,314 $ 2,072 $ 6,553 $ 5,742
Schedule of Supplemental Balance Sheet Information Related To Finance Leases	Supplemental balance sheet information related to the Company’s finance leases as of September 11, 2022 and January 2, 2022 was as follows: September 11, January 2, 2022 2022 Land and buildings $ 85,489 $ 86,965 Equipment 1,802 — Finance lease assets 87,291 86,965 Accumulated depreciation and amortization ( 18,031 ) ( 14,423 ) Finance lease assets, net $ 69,260 $ 72,542 Current portion of long-term debt $ 4,287 $ 4,088 Long-term debt , less current portion 69,591 72,250 Total principal payable on finance leases $ 73,878 $ 76,338 As of September 11, 2022 and January 2, 2022, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: September 11, 2022 January 2, 2022 Operating Finance Operating Finance Leases Leases Leases Leases Weighted average remaining lease term 6 years 14 years 7 years 15 years Weighted average discount rate 3.6 % 5.8 % 3.5 % 5.8 %
Schedule Of Supplemental Cash Flow Information Related To Leases	Supplemental cash flow information related to leases for the third quarter and three fiscal quarters of 2022 and the third quarter and three fiscal quarters of 2021 were as follows: Fiscal Quarter Ended Three Fiscal Quarters Ended September 11, September 12, September 11, September 12, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11,581 $ 10,236 $ 30,076 $ 29,528 Operating cash flows from finance leases 1,086 1,050 2,922 2,798 Financing cash flows from finance leases 1,038 771 2,816 2,068 Right-of-use assets obtained in exchange for lease obligations: Operating leases 4,241 7,785 35,405 19,138 Finance leases 453 390 453 6,050
Schedule Of Maturities Of Operating And Finance Leases Liabilities	Maturities of lease liabilities as of September 11, 2022 were as follows: Operating Finance Leases Leases 2022 $ 18,493 $ 2,745 2023 43,705 7,623 2024 43,399 8,209 2025 37,856 8,028 2026 35,257 8,724 Thereafter 81,564 77,868 Total future minimum rental commitments 260,274 113,197 Less – amounts representing interest ( 29,203 ) ( 39,319 ) Total lease liabilities $ 231,071 $ 73,878

Financial Information by Operat

Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Segment Reporting Information [Line Items]
Revenues	$ 1,068,596	$ 997,990	$ 3,144,927	$ 3,014,160
Segment Income	201,264	202,848	597,198	628,394
Operating Segments [Member] | U.S. Stores [Member]
Segment Reporting Information [Line Items]
Revenues	355,459	338,618	1,039,909	1,046,973
Segment Income	100,529	101,968	301,876	321,252
Operating Segments [Member] | Supply Chain [Member]
Segment Reporting Information [Line Items]
Revenues	683,267	619,840	2,008,526	1,854,609
Segment Income	49,892	53,579	149,874	164,723
Operating Segments [Member] | International Franchise [Member]
Segment Reporting Information [Line Items]
Revenues	67,055	70,553	202,803	207,068
Segment Income	53,762	57,311	161,698	168,145
Intersegment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	(37,185)	(31,021)	(106,311)	(94,490)
Segment Reconciling [Member]
Segment Reporting Information [Line Items]
Segment Income	$ (2,919)	$ (10,010)	$ (16,250)	$ (25,726)

Reconciliation of Total Segment

Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Segment Reconciliation [Abstract]
Total Segment Income	$ 201,264	$ 202,848	$ 597,198	$ 628,394
Depreciation and amortization	(18,933)	(16,578)	(56,026)	(50,219)
Loss on sale/disposal of assets	(27)	(37)	(475)	(493)
Non-cash equity-based compensation expense	(5,852)	(5,953)	(21,590)	(19,453)
Recapitalization-related expenses				(509)
Income from operations	176,452	180,280	519,107	557,720
Other Income	0	0	0	2,500
Interest income	833	48	1,101	138
Interest expense	(45,437)	(45,523)	(137,160)	(130,822)
Income before provision for income taxes	$ 131,848	$ 134,805	$ 383,048	$ 429,536

Earnings Per Share - Summary of

Earnings Per Share - Summary of Computation of Basic and Diluted Earning per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Earnings Per Share [Abstract]
Net income available to common stockholders - basic and diluted	$ 100,504	$ 120,402	$ 293,961	$ 354,782
Basic weighted average number of shares	35,692,744	36,627,660	35,869,581	37,639,418
Earnings per share – basic	$ 2.82	$ 3.29	$ 8.20	$ 9.43
Diluted weighted average number of shares	36,062,316	37,130,209	36,265,918	38,144,509
Earnings Per Share - Diluted	$ 2.79	$ 3.24	$ 8.11	$ 9.30

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Denominators Used in Calculating Earning Per Common Share (Detail) - shares	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities Excluded from Computation of Earnings Per Share	116,641	625	117,328	80,103
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities Excluded from Computation of Earnings Per Share	1,561		1,285	5,641
Restricted Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share, amount unvested	41,800	62,131	41,800	62,131

Stockholders' Deficit - Additio

Stockholders' Deficit - Additional Information (Detail) - $ / shares		3 Months Ended		8 Months Ended
	Oct. 11, 2022	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Dividends declared per share		$ 1.10	$ 0.94	$ 3.30	$ 2.82
Subsequent Event [Member]
Dividends declared per share	$ 1.10
Record date of dividend	Dec. 15, 2022
Dividend declared date	Oct. 11, 2022
Dividend payable date	Dec. 30, 2022

Stockholders' Deficit (Detail)

Stockholders' Deficit (Detail) - USD ($) $ in Thousands		3 Months Ended		8 Months Ended
		Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Stockholders' Deficit [Line Items]
Balance	[1]			$ (4,209,536)
Net income		$ 100,504	$ 120,402	293,961	$ 354,782
Balance		$ (4,316,545)		$ (4,316,545)
Common Stock [Member]
Stockholders' Deficit [Line Items]
Balance (in shares)		35,899,646	36,853,571	36,138,273	38,868,350
Balance		$ 359	$ 369	$ 361	$ 389
Issuance and cancellation of stock awards, net (in shares)		1,569	938	15,775	(980)
Tax payments for restricted stock upon vesting, (in shares)		(20,787)	(11,918)	(26,612)	(14,819)
Purchases of common stock, (in shares)		(490,789)	(391,007)	(739,847)	(2,469,473)
Purchases of common stock		$ (5)	$ (4)	$ (7)	$ (25)
Exercises of stock options, (in shares)		8,573	113,903	10,623	182,409
Exercises of stock options			$ 1		$ 2
Balance (in shares)		35,398,212	36,565,487	35,398,212	36,565,487
Balance		$ 354	$ 366	$ 354	$ 366
Additional Paid-in Capital [Member]
Stockholders' Deficit [Line Items]
Balance		3,589	7,771	840	5,122
Tax payments for restricted stock upon vesting		(7,925)	(5,730)	(10,320)	(6,817)
Purchases of common stock		(1,699)	(14,801)	(12,819)	(33,345)
Exercises of stock options		770	6,922	1,296	15,946
Non-cash equity-based compensation expense		5,852	5,953	21,590	19,453
Other					(244)
Balance		587	115	587	115
Retained Deficit [Member]
Stockholders' Deficit [Line Items]
Balance		(4,180,367)	(4,146,702)	(4,207,917)	(3,303,492)
Net income		100,504	120,402	293,961	354,782
Dividends declared on common stock and equivalents		(39,035)	(34,400)	(118,403)	(105,555)
Tax payments for restricted stock upon vesting		(371)		(371)
Purchases of common stock		(194,374)	(64,882)	(280,913)	(1,071,317)
Balance		(4,313,643)	(4,125,582)	(4,313,643)	(4,125,582)
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' Deficit [Line Items]
Balance		(3,890)	(2,008)	(2,820)	(2,424)
Currency translation adjustment		47	(404)	(1,023)	12
Balance		$ (3,843)	$ (2,412)	$ (3,843)	$ (2,412)
[1] The condensed consolidated balance sheet at January 2, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

Stockholders' Deficit (Parenthe

Stockholders' Deficit (Parenthetical) (Detail) - $ / shares	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Dividends declared per share	$ 1.10	$ 0.94	$ 3.30	$ 2.82

2022 Variable Funding Notes (Ad

2022 Variable Funding Notes (Additional Information) (Details) - USD ($) $ in Millions	Sep. 16, 2022	Sep. 11, 2022
2022 Variable Funding Notes [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Variable funding notes	$ 120
2021 Variable Funding Notes [Member]
Line of Credit Facility [Line Items]
Variable funding notes		$ 120
Variable funding notes		$ 200

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) $ in Millions	Sep. 11, 2022 USD ($)
2021 Variable Funding Notes [Member]
Remaining borrowing capacity	$ 60
Variable funding notes	120
Dash Brands Ltd [Member]
Investments at carrying value	$ 125.8

Carrying Amounts and Fair Value

Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands	Sep. 11, 2022	Jan. 02, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, carrying amount	$ 73,258	$ 87,384
Restricted cash equivalents, carrying amount	117,195	115,185
Investments in marketable securities, carrying amount	13,498	15,433
Advertising fund cash equivalents, restricted, carrying amount	146,235	140,115
Investments	125,840	125,840
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, carrying amount	73,258	87,384
Restricted cash equivalents, carrying amount	117,195	115,185
Investments in marketable securities, carrying amount	13,498	15,433
Advertising fund cash equivalents, restricted, carrying amount	146,235	140,115
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	$ 125,840	$ 125,840

Summary of reconciliation of th

Summary of reconciliation of the carrying amount of the Company's investment in DPC Dash - (Detail) - DPC Dash [Member] $ in Thousands	8 Months Ended
	Sep. 12, 2021 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity Securities without Readily Determinable Fair Value, Amount	$ 40,000
Additional Purchase of Equity Securities Without Readily Determinable Fair Value Amount	40,000
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount	2,500
Equity Securities without Readily Determinable Fair Value, Amount	$ 82,500

Schedule of Estimated Fair Valu

Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands	Sep. 11, 2022	Jan. 02, 2022
2015 Ten-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	$ 754,000	$ 760,000
Fair Value	734,396	777,480
2017 Ten-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	955,000	962,500
Fair Value	899,610	1,000,038
2018 7.5-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	409,063	412,250
Fair Value	394,336	420,907
2018 9.25-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	385,000	388,000
Fair Value	365,750	407,788
2019 Ten-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	658,125	663,188
Fair Value	590,996	693,031
2021 7.5-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	839,375	845,750
Fair Value	722,702	849,133
2021 Ten-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	987,500	995,000
Fair Value	$ 834,438	$ 1,017,885

Revenue Disclosures - Additiona

Revenue Disclosures - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 11, 2022	Jan. 02, 2022
Contract liability, Current	$ 5,500	$ 5,400
Contract liability, Noncurrent	23,300	24,300
Advertising fund assets, restricted	181,200	180,904	[1]
U.S. Company-owned stores [Member] | Cash, cash equivalents and investments [Member]
Cash contributed from Company-owned stores	7,900
U S Stores [Member] | Domestic Franchise [Member] | Cash, cash equivalents and investments [Member]
Advertising fund assets, restricted	157,700	161,700
U S Stores [Member] | Domestic Franchise [Member] | Accounts receivable [Member]
Advertising fund assets, restricted	16,400	14,500
U S Stores [Member] | Domestic Franchise [Member] | Prepaid expenses [Member]
Advertising fund assets, restricted	$ 7,100	4,700
U S Stores [Member] | U.S. Company-owned stores [Member] | Cash, cash equivalents and investments [Member]
Cash contributed from Company-owned stores		$ 7,200
[1] The condensed consolidated balance sheet at January 2, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

Revenue Disclosures - Schedule

Revenue Disclosures - Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees (Detail) - USD ($) $ in Thousands	8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021
Revenue from Contract with Customer [Abstract]
Deferred franchise fees and deferred development fees at beginning of period	$ 29,694	$ 19,090
Revenue recognized during the period	(4,688)	(3,944)
New deferrals due to cash received and other	3,774	4,784
Deferred franchise fees and deferred development fees at end of period	$ 28,780	$ 19,930

Components of Operating and Fin

Components of Operating and Finance Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Operating lease cost	$ 11,302	$ 10,451	$ 32,366	$ 31,201
Finance lease cost:
Amortization of right-of-use assets	1,228	1,022	3,631	2,944
Interest on lease liabilities	1,086	1,050	2,922	2,798
Total finance lease cost	$ 2,314	$ 2,072	$ 6,553	$ 5,742

Supplemental balance sheet info

Supplemental balance sheet information related to the Company's leases (Detail) - USD ($) $ in Thousands	Sep. 11, 2022	Jan. 02, 2022
Land and buildings	$ 85,489	$ 86,965
Equipment	1,802
Finance lease assets	87,291	86,965
Accumulated depreciation and amortization	(18,031)	(14,423)
Finance lease assets, net	69,260	72,542
Current portion of long-term debt	$ 4,287	$ 4,088
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Long-Term Debt and Lease Obligation, Current	Long-Term Debt and Lease Obligation, Current
Long-term debt, less current portion	$ 69,591	$ 72,250
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-Term Debt and Lease Obligation	Long-Term Debt and Lease Obligation
Total principal payable on finance leases	$ 73,878	$ 76,338
Finance Lease, Weighted Average Remaining Lease Term	14 years	15 years
Finance Lease, Weighted Average Discount Rate, Percent	5.80%	5.80%
Operating Lease, Weighted Average Remaining Lease Term	6 years	7 years
Operating Lease, Weighted Average Discount Rate, Percent	3.60%	3.50%

Supplemental Cash Flow Informat

Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 11,581	$ 10,236	$ 30,076	$ 29,528
Operating cash flows from finance leases	1,086	1,050	2,922	2,798
Financing cash flows from finance leases	1,038	771	2,816	2,068
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	4,241	7,785	35,405	19,138
Finance leases	$ 453	$ 390	$ 453	$ 6,050

Maturities of Lease Liabilities

Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands	Sep. 11, 2022	Jan. 02, 2022
Leases [Abstract]
2022	$ 18,493
2023	43,705
2024	43,399
2025	37,856
2026	35,257
Thereafter	81,564
Total future minimum rental commitments	260,274
Less – amounts representing interest	(29,203)
Total lease liabilities	231,071
2022	2,745
2023	7,623
2024	8,209
2025	8,028
2026	8,724
Thereafter	77,868
Total future minimum rental commitments	113,197
Less – amounts representing interest	(39,319)
Total principal payable on finance leases	$ 73,878	$ 76,338

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($)	3 Months Ended		8 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Sep. 11, 2022	Sep. 12, 2021	Jan. 02, 2022
Rent Expenses	$ 17,500,000	$ 18,300,000	$ 55,400,000	$ 54,400
Finance Lease	1,300,000	$ 1,800,000	5,100,000	$ 5,600,000
Lessee, operating lease, lease not yet commenced, future minimum rental commitments	72,300,000		72,300,000
Potential future payments	$ 7,100,000		$ 7,100,000		$ 9,100,000
Operating Lease [Member]
Lease Term	16 years		16 years

Supplemental Disclosures of C_2

Supplemental Disclosures of Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions	8 Months Ended		12 Months Ended
	Sep. 11, 2022	Sep. 12, 2021	Jan. 02, 2022
Schedule of Cash Flow, Supplemental [Line Items]
Capital expenditure accrual	$ 6		$ 5.4
Non cash investing activities lease incentives	$ 0.1	$ 0.1

Company-owned Store Transacti_2

Company-owned Store Transactions - Additional Information (Detail) $ in Thousands	3 Months Ended	8 Months Ended
	Mar. 27, 2022 USD ($) Store	Sep. 11, 2022 USD ($) Store	Sep. 12, 2021 USD ($)
Business Acquisition [Line Items]
Payments for purchase of franchisees		$ 6,814	$ 0
US Franchisee [Member]
Business Acquisition [Line Items]
Number of stores purchased | Store	23
Payments for purchase of franchisees	$ 6,800
Value of intangibles purchased	4,000
Value of leasehold and other assets purchased	1,700
Value of goodwill purchased	$ 1,100
Number of company owned stores sold | Store		114
Receipts from sale of franchisees		$ 41,100