Domino's Pizza (DPZ) 10-Q 24 Jul 23 2024 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 18, 2023	Jul. 17, 2023
Cover [Abstract]
Document Type	10-Q
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Entity Central Index Key	0001286681
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Document Period End Date	Jun. 18, 2023
Entity Registrant Name	Domino’s Pizza, Inc.
Securities Act 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		35,094,304

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 18, 2023	Jan. 01, 2023	[1]
Current assets:
Cash and cash equivalents	$ 77,020	$ 60,356
Restricted cash and cash equivalents	189,694	191,289
Accounts receivable, net	260,024	257,492
Inventories	65,627	81,570
Prepaid expenses and other	53,201	37,287
Advertising fund assets, restricted	154,052	162,660
Total current assets	799,618	790,654
Property, plant and equipment:
Land and buildings	105,847	105,659
Leasehold and other improvements	175,944	172,725
Equipment	351,927	333,787
Construction in progress	15,089	22,536
Property, plant and equipment, Gross	648,807	634,707
Accumulated depreciation and amortization	(352,872)	(332,472)
Property, plant and equipment, net	295,935	302,235
Other assets:
Operating lease right-of-use assets	213,817	219,202
Goodwill	11,688	11,763
Capitalized software, net	119,299	108,354
Investment in DPC Dash	110,876	125,840
Deferred income tax assets, net	2,492	1,926
Other assets	42,445	42,247
Total other assets	500,617	509,332
Total assets	1,596,170	1,602,221
Current liabilities:
Current portion of long-term debt	55,745	54,813
Accounts payable	90,688	89,715
Operating lease liabilities	37,611	34,877
Insurance reserves	30,197	31,435
Dividends payable	43,586	866
Advertising fund liabilities	150,365	157,909
Other accrued liabilities	139,336	167,006
Total current liabilities	547,528	536,621
Long-term liabilities:
Long-term debt, less current portion	4,944,678	4,967,420
Operating lease liabilities	188,694	195,244
Insurance reserves	36,507	40,179
Other accrued liabilities	44,087	44,061
Deferred income tax liabilities	1,242	7,761
Total long-term liabilities	5,215,208	5,254,665
Stockholders' deficit
Common stock	351	354
Additional paid-in capital	3,370	9,693
Retained deficit	(4,166,520)	(4,194,418)
Accumulated other comprehensive loss	(3,767)	(4,694)
Total stockholders' deficit	(4,166,566)	(4,189,065)
Total liabilities and stockholders' deficit	$ 1,596,170	$ 1,602,221
[1] The condensed consolidated balance sheet at January 1, 2023 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.

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Revenues:
Revenue	$ 1,024,627	$ 1,065,182	$ 2,049,025	$ 2,076,331
Cost of sales:
Cost of sales	619,971	678,917	1,258,822	1,321,442
Gross margin	404,656	386,265	790,203	754,889
General and administrative	97,794	97,070	192,983	194,564
U.S. franchise advertising	111,459	111,081	224,185	217,670
Income from operations	195,403	178,114	372,886	342,655
Other expense	(14,964)		(14,964)
Refranchising loss			149
Interest income	2,537	219	4,928	268
Interest expense	(44,932)	(44,851)	(91,479)	(91,723)
Income before provision for income taxes	138,044	133,482	271,371	251,200
Provision for income taxes	28,664	30,989	57,221	57,743
Net income	$ 109,380	$ 102,493	$ 214,150	$ 193,457
Earnings per share:
Common stock - basic	$ 3.11	$ 2.85	$ 6.07	$ 5.38
Common stock - diluted	$ 3.08	$ 2.82	$ 6.02	$ 5.32
U.S. Stores [Member] | U.S. Company-owned stores [Member]
Revenues:
Revenue	$ 87,694	$ 112,502	$ 172,605	$ 216,397
Cost of sales:
Cost of sales	71,423	94,065	141,995	181,440
U.S. Stores [Member] | U.S. franchise stores [Member]
Revenues:
Revenue	139,268	128,098	272,132	250,383
U.S. Stores [Member] | U.S. franchise advertising [Member]
Revenues:
Revenue	111,459	111,081	224,185	217,670
Supply Chain [Member] | Supply Chain Center [Member]
Revenues:
Revenue	615,711	646,586	1,239,937	1,256,133
Cost of sales:
Cost of sales	548,548	584,852	1,116,827	1,140,002
International Franchise [Member] | International franchise royalties and fees [Member]
Revenues:
Revenue	$ 70,495	$ 66,915	$ 140,166	$ 135,748

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 109,380	$ 102,493	$ 214,150	$ 193,457
Currency translation adjustment	1,378	(1,684)	927	(1,070)
Comprehensive income	$ 110,758	$ 100,809	$ 215,077	$ 192,387

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023		Jun. 19, 2022
Cash flows from operating activities:
Net income	$ 109,380	$ 102,493	$ 214,150		$ 193,457
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,561	18,117	36,731		37,093
Refranchising loss			149		0
Loss on sale/disposal of assets	127	253	402		448
Amortization of debt issuance costs			2,578		2,631
(Benefit) provision for deferred income taxes			(7,596)		2,490
Non-cash equity-based compensation expense	(9,527)	(8,473)	17,065		15,738
Excess tax benefits from equity-based compensation			(133)		(174)
Provision for losses on accounts and notes receivable			1,166		2,326
Unrealized loss on investments			14,964		0
Changes in operating assets and liabilities			(33,794)		(102,935)
Changes in advertising fund assets and liabilities, restricted			(3,391)		2,341
Net cash provided by operating activities			242,291		153,415
Cash flows from investing activities:
Capital expenditures			(37,980)		(32,664)
Purchases of franchise operations and other assets			0		(6,814)
Other			(1,211)		(435)
Net cash used in investing activities			(39,191)		(39,913)
Cash flows from financing activities:
Repayments of long-term debt and finance lease obligations			(27,186)		(27,528)
Proceeds from exercise of stock options			1,051		526
Purchases of common stock			(120,847)		(97,661)
Tax payments for restricted stock upon vesting			(3,068)		(2,395)
Payments of common stock dividends and equivalents			(42,930)		(39,662)
Net cash used in financing activities			(192,980)		(166,720)
Effect of exchange rate changes on cash			494		(635)
Change in cash and cash equivalents, restricted cash and cash equivalents			10,614		(53,853)
Cash and cash equivalents, beginning of period			60,356	[1]	148,160
Restricted cash and cash equivalents, beginning of period			191,289	[1]	180,579
Cash and cash equivalents included in advertising fund assets, restricted, beginning of period			143,559		161,741
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, beginning of period			395,204		490,480
Cash and cash equivalents, end of period	77,020	114,353	77,020		114,353
Restricted cash and cash equivalents, end of period	189,694	158,215	189,694		158,215
Cash and cash equivalents included in advertising fund assets, restricted, end of period	139,104	164,059	139,104		164,059
Cash and cash equivalents, restricted cash and cash equivalents and cash and cash equivalents included in advertising fund assets, restricted, end of period	$ 405,818	$ 436,627	$ 405,818		$ 436,627
[1] The condensed consolidated balance sheet at January 1, 2023 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 18, 2023
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 1, 2023 included in the Company’s 2022 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 23, 2023 (the “2022 Form 10-K”). In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair statement have been included. Operating results for the fiscal quarter and two fiscal quarters ended June 18, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023 .

Segment Information

Segment Information	6 Months Ended
	Jun. 18, 2023
Segment Reporting [Abstract]
Segment Information	2. Segment Information The following tables summarize revenues and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Fiscal Quarters Ended June 18, 2023 and June 19, 2022 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2023 $ 338,421 $ 641,481 $ 70,495 $ ( 25,770 ) $ — $ 1,024,627 2022 351,681 683,298 66,915 ( 36,712 ) — 1,065,182 Segment Income 2023 $ 123,592 $ 60,026 $ 58,865 N/A $ ( 18,865 ) $ 223,618 2022 104,055 53,633 52,890 N/A ( 5,621 ) 204,957 Two Fiscal Quarters Ended June 18, 2023 and June 19, 2022 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2023 $ 668,922 $ 1,291,605 $ 140,166 $ ( 51,668 ) $ — $ 2,049,025 2022 684,450 1,325,260 135,748 ( 69,127 ) — 2,076,331 Segment Income 2023 $ 236,275 $ 108,541 $ 117,004 N/A $ ( 34,587 ) $ 427,233 2022 201,347 99,982 107,936 N/A ( 13,331 ) 395,934 In the first quarter of 2023, the Company changed its allocation methodology for certain costs which support certain internally developed software used across the Company’s franchise system. This allocation methodology change was implemented in order to reflect the way the chief operating decision maker allocates resources to the Company’s reportable segments and evaluates segment profitability, including the costs of internally developed software. The change in allocation methodology of certain software development costs resulted in an estimated increase in U.S. stores Segment Income of $ 15.8 million , an estimated increase in international franchise Segment Income of $ 1.9 million and an estimated decrease in other Segment Income of $ 17.7 million in the second quarter of 2023. The change in allocation methodology of certain software development costs resulted in an estimated increase in U.S. stores Segment Income of $ 25.9 million , an estimated increase in international franchise Segment Income of $ 3.8 million and an estimated decrease in other Segment Income of $ 29.7 million in the two fiscal quarters of 2023. The change in allocation methodology of certain software development costs had no impact on revenues, supply chain Segment Income or total Segment Income. The change in allocation methodology for certain software development costs is a prospective change and the comparative information has not been restated. The following table reconciles total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Total Segment Income $ 223,618 $ 204,957 $ 427,233 $ 395,934 Depreciation and amortization ( 18,561 ) ( 18,117 ) ( 36,731 ) ( 37,093 ) Refranchising loss — — ( 149 ) — Loss on sale/disposal of assets ( 127 ) ( 253 ) ( 402 ) ( 448 ) Non-cash equity-based compensation expense ( 9,527 ) ( 8,473 ) ( 17,065 ) ( 15,738 ) Income from operations 195,403 178,114 372,886 342,655 Other expense ( 14,964 ) — ( 14,964 ) — Interest income 2,537 219 4,928 268 Interest expense ( 44,932 ) ( 44,851 ) ( 91,479 ) ( 91,723 ) Income before provision for income taxes $ 138,044 $ 133,482 $ 271,371 $ 251,200

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 18, 2023
Earnings Per Share [Abstract]
Earnings Per Share	3. Earnings Per Share Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Net income available to common stockholders - basic and diluted $ 109,380 $ 102,493 $ 214,150 $ 193,457 Basic weighted average number of shares 35,199,067 35,915,102 35,295,346 35,957,999 Earnings per share – basic $ 3.11 $ 2.85 $ 6.07 $ 5.38 Diluted weighted average number of shares 35,492,423 36,296,277 35,601,335 36,368,297 Earnings per share – diluted $ 3.08 $ 2.82 $ 6.02 $ 5.32 The denominators used in calculating diluted earnings per share for common stock for the fiscal quarters and two fiscal quarters each ended June 18, 2023 and June 19, 2022 do not include the following because the effect of including these shares would be anti-dilutive or because the performance targets for these awards had not yet been met: Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Anti-dilutive shares underlying stock-based awards Stock options 227,276 120,540 229,156 120,540 Restricted stock awards and units 35,064 67,677 36,378 346 Performance condition not met Restricted stock awards and units 59,675 42,710 59,675 42,710

Stockholders' Deficit

Stockholders' Deficit	6 Months Ended
	Jun. 18, 2023
Federal Home Loan Banks [Abstract]
Stockholders' Deficit	4. Stockholders’ Deficit The following table summarizes the changes in stockholders’ deficit for the second quarter of 2023. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 26, 2023 35,330,133 $ 353 $ 1,474 $ ( 4,148,455 ) $ ( 5,145 ) Net income — — — 109,380 — Dividends declared on common stock and equivalents 1.21 per share) — — — ( 42,645 ) — Issuance and cancellation of stock awards, net 14,078 — — — — Tax payments for restricted stock upon vesting ( 4,596 ) — ( 1,515 ) — — Purchases of common stock ( 292,030 ) ( 2 ) ( 6,824 ) ( 84,800 ) — Exercise of stock options 10,000 — 708 — — Non-cash equity-based compensation expense — — 9,527 — — Currency translation adjustment — — — — 1,378 Balance at June 18, 2023 35,057,585 $ 351 $ 3,370 $ ( 4,166,520 ) $ ( 3,767 ) The following table summarizes the changes in stockholders’ deficit for the two fiscal quarters of 2023. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 1, 2023 35,419,718 $ 354 $ 9,693 $ ( 4,194,418 ) $ ( 4,694 ) Net income — — — 214,150 — Dividends declared on common stock and equivalents 2.42 per share) — — — ( 85,650 ) — Issuance and cancellation of stock awards, net 28,573 — — — — Tax payments for restricted stock upon vesting ( 9,669 ) — ( 3,068 ) — — Purchases of common stock ( 392,545 ) ( 3 ) ( 21,371 ) ( 100,602 ) — Exercise of stock options 11,508 — 1,051 — — Non-cash equity-based compensation expense — — 17,065 — — Currency translation adjustment — — — — 927 Balance at June 18, 2023 35,057,585 $ 351 $ 3,370 $ ( 4,166,520 ) $ ( 3,767 ) Subsequent to the end of the second quarter of 2023, on July 20, 2023 , the Company’s Board of Directors declared a $ 1.21 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2023 to be paid on September 29, 2023 . The following table summarizes the changes in stockholders’ deficit for the second quarter of 2022. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 27, 2022 36,037,373 $ 360 $ 3,545 $ ( 4,200,341 ) $ ( 2,206 ) Net income — — — 102,493 — Dividends declared on common stock and equivalents 1.10 per share) — — — ( 39,603 ) — Issuance and cancellation of stock awards, net 13,866 — — — — Tax payments for restricted stock upon vesting ( 3,950 ) — ( 1,606 ) — — Purchases of common stock ( 148,248 ) ( 1 ) ( 7,083 ) ( 42,916 ) — Exercise of stock options 605 — 260 — — Non-cash equity-based compensation expense — — 8,473 — — Currency translation adjustment — — — — ( 1,684 ) Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 ) The following table summarizes the changes in stockholders’ deficit for the two fiscal quarters of 2022. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 2, 2022 36,138,273 $ 361 $ 840 $ ( 4,207,917 ) $ ( 2,820 ) Net income — — — 193,457 — Dividends declared on common stock and equivalents 2.20 per share) — — — ( 79,368 ) — Issuance and cancellation of stock awards, net 14,206 — — — — Tax payments for restricted stock upon vesting ( 5,825 ) — ( 2,395 ) — — Purchases of common stock ( 249,058 ) ( 2 ) ( 11,120 ) ( 86,539 ) — Exercise of stock options 2,050 — 526 — — Non-cash equity-based compensation expense — — 15,738 — — Currency translation adjustment — — — — ( 1,070 ) Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 )

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 18, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	. 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 Marketable Securities 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. Fair Value of Investments The Company holds a non-controlling interest in DPC Dash Ltd (“DPC Dash”), the Company’s master franchisee in China that owns and operates Domino’s Pizza stores in that market. Prior to March 28, 2023, the Company’s investment in DPC Dash’s senior ordinary shares, which were not in-substance common stock, represented an equity investment without a readily determinable fair value and was 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. On March 28, 2023, DPC Dash completed its initial public offering on the Hong Kong Exchange (HK: 1405), at which point the Company’s 18,101,019 DPC Dash senior ordinary shares automatically converted to DPC Dash ordinary shares pursuant to the terms of the investment. The Company is required to hold the DPC Dash ordinary shares for at least 360 days from the date of the initial public offering. Beginning in the second quarter of 2023, the Company accounts for its investment in DPC Dash as a trading security and records it at fair value at the end of each reporting period, with gains and losses recorded in other income or expense in its condensed consolidated statements of income. As of June 18, 2023 , the fair value of the Company’s investment in DPC Dash is based on the active exchange quoted price for the equity security of HK$ 47.90 per share. The Company recorded an adjustment to the carrying amount of its investment in DPC Dash of $ 15.0 million in the second quarter of 2023, with the loss recorded in other expense in its condensed consolidated statements of income. As of January 1, 2023, the fair value of the Company’s investment in DPC Dash was not readily determinable and was categorized in Level 3 of the fair value hierarchy. The Company did not record any adjustments to the carrying amount of its investment in the first quarter of 2023 or the two fiscal quarters of 2022. The Company transferred its investment from Level 3 to Level 1 on March 28, 2023, concurrent with DPC Dash’s initial public offering. The following tables summarize the carrying amounts and fair values of certain assets at June 18, 2023 and January 1, 2023: At June 18, 2023 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 32,110 $ 32,110 $ — $ — Restricted cash equivalents 119,501 119,501 — — Investments in marketable securities 14,742 14,742 — — Advertising fund cash equivalents, restricted 118,505 118,505 — — Investment in DPC Dash 110,876 110,876 — — At January 1, 2023 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 23,779 $ 23,779 $ — $ — Restricted cash equivalents 117,212 117,212 — — Investments in marketable securities 13,395 13,395 — — Advertising fund cash equivalents, restricted 124,496 124,496 — — Investment in DPC Dash 125,840 — — 125,840 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. Management estimated the approximate fair values of the Company ’s 2015, 2017, 2018, 2019 and 2021 notes as follows: June 18, 2023 January 1, 2023 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year Notes $ 748,000 $ 715,088 $ 752,000 $ 717,408 2017 Ten-Year Notes 947,500 878,333 952,500 875,348 2018 7.5-Year Notes 405,875 384,770 408,000 385,968 2018 9.25-Year Notes 382,000 357,170 384,000 355,584 2019 Ten-Year Notes 653,063 572,736 656,438 564,536 2021 7.5-Year Notes 833,000 706,384 837,250 695,755 2021 Ten-Year Notes 980,000 803,600 985,000 792,925 The Company did not have any outstanding borrowings under its variable funding notes at June 18, 2023 or January 1, 2023 .

Revenue Disclosures

Revenue Disclosures	6 Months Ended
	Jun. 18, 2023
Revenue from Contract with Customer [Abstract]
Revenue Disclosures	6. Revenue Disclosures Contract Liabilities Contract liabilities primarily consist of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $ 5.5 million and $ 5.5 million were included in current other accrued liabilities as of June 18, 2023 and January 1, 2023, respectively. Deferred franchise fees and deferred development fees of $ 21.4 million and $ 22.7 million were included in long-term other accrued liabilities as of June 18, 2023 and January 1, 2023, respectively. Changes in deferred franchise fees and deferred development fees for the two fiscal quarters of 2023 and the two fiscal quarters of 2022 were as follows: Two Fiscal Quarters Ended June 18, June 19, 2023 2022 Deferred franchise fees and deferred development fees, beginning of period $ 28,225 $ 29,694 Revenue recognized during the period ( 2,716 ) ( 2,855 ) New deferrals due to cash received and other 1,400 2,448 Deferred franchise fees and deferred development fees, end of period $ 26,909 $ 29,287 Advertising Fund Assets As of June 18, 2023, advertising fund assets, restricted of $ 154.1 million consisted of $ 139.1 million of cash and cash equivalents, $ 10.0 million of accounts receivable and $ 5.0 million of prepaid expenses. As of June 18, 2023, advertising fund cash and cash equivalents included $ 3.7 million of cash contributed from U.S. Company-owned stores that had not yet been expended. As of January 1, 2023, advertising fund assets, restricted of $ 162.7 million consisted of $ 143.6 million of cash and cash equivalents, $ 13.1 million of accounts receivable and $ 6.0 million of prepaid expenses. As of January 1, 2023, advertising fund cash and cash equivalents included $ 4.8 million of cash contributed from U.S. Company-owned stores that had not yet been expended. Change in Advertising Fund Contributions and Technology Fees Beginning in the second quarter of 2023 , as of March 27, 2023, Domino's National Advertising Fund Inc., the Company’s consolidated not-for-profit advertising subsidiary, effectuated a temporary reduction of 0.25 % to its standard 6.0 % advertising contribution, which is anticipated to be in effect for at least one year from the effective date. Concurrently, the Company also increased the U.S. digital per-transaction technology fees that are recognized as the related U.S. franchise retail sales occur by $ 0.08 to $ 0.395 for the same time period. Subsequent Events Subsequent to the end of the second quarter of 2023, the Company entered into a new global agreement with Uber (NYSE:UBER) to allow customers to order Domino’s products through the Uber Eats and Postmates apps with delivery by the Company and its franchisees’ delivery experts. The Company expects the U.S. rollout of this agreement to be enabled by the end of fiscal 2023.

Leases

Leases	6 Months Ended
	Jun. 18, 2023
Leases [Abstract]
Leases	7. Leases The Company leases certain retail store and supply chain center locations, vehicles, equipment and its corporate headquarters with expiration dates through 2041. The components of operating and finance lease cost for the second quarter and two fiscal quarters of 2023, and the second quarter and two fiscal quarters of 2022 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Operating lease cost $ 10,867 $ 10,789 $ 21,675 $ 21,064 Finance lease cost: Amortization of right-of-use assets 1,313 1,195 2,512 2,403 Interest on lease liabilities 1,015 732 1,998 1,836 Total finance lease cost $ 2,328 $ 1,927 $ 4,510 $ 4,239 Rent expense totaled $ 19.7 million and $ 39.0 million in the second quarter and two fiscal quarters of 2023, respectively. Rent expense totaled $ 19.0 million and $ 37.9 million in the second quarter and two fiscal quarters of 2022, respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and insurance 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 $ 2.7 million in the second quarter and two fiscal quarters of 2023, respectively. Rent expense for certain short-term supply chain center tractor and trailer rentals was $ 1.6 million and $ 3.8 million in the second quarter and two fiscal quarters of 2022, respectively. Variable rent expense and rent expense for other short-term leases were immaterial in both the second quarter and two fiscal quarters of 2023 and 2022. Supplemental balance sheet information related to the Company’s finance leases as of June 18, 2023 and January 1, 2023 was as follows: June 18, January 1, 2023 2023 Land and buildings $ 83,982 $ 83,902 Equipment 3,951 1,606 Finance lease assets 87,933 85,508 Accumulated depreciation and amortization ( 21,468 ) ( 19,405 ) Finance lease assets, net $ 66,465 $ 66,103 Current portion of long-term debt $ 4,245 $ 3,313 Long-term debt , less current portion 71,316 70,886 Total principal payable on finance leases $ 75,561 $ 74,199 As of June 18, 2023 and January 1, 2023, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: June 18, 2023 January 1, 2023 Operating Finance Operating Finance Leases Leases Leases Leases Weighted average remaining lease term 7 years 14 years 7 years 14 years Weighted average discount rate 4.0 % 6.0 % 3.9 % 6.0 % Supplemental cash flow information related to leases for the second quarter and two fiscal quarters of 2023 and the second quarter and two fiscal quarters of 2022 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,771 $ 7,858 $ 20,092 $ 18,495 Operating cash flows from finance leases 1,015 732 1,998 1,836 Financing cash flows from finance leases 412 792 1,436 1,778 Right-of-use assets obtained in exchange for lease obligations: Operating leases 2,870 23,407 12,175 31,164 Finance leases 2,183 — 3,054 — Maturities of lease liabilities as of June 18, 2023 were as follows: Operating Finance Leases Leases 2023 $ 25,474 $ 4,485 2024 44,198 8,670 2025 39,406 8,749 2026 37,763 9,350 2027 30,955 8,181 Thereafter 86,873 68,816 Total future minimum rental commitments 264,669 108,251 Less, amounts representing interest ( 38,364 ) ( 32,690 ) Total lease liabilities $ 226,305 $ 75,561 As of June 18, 2023, the Company had additional leases for certain supply chain real estate and certain supply chain and U.S. Company-owned store vehicles that had not yet commenced with estimated future minimum rental commitments of $ 43.1 million. These leases are expected to commence in 2023 and 2024 with lease terms of up to 11 years . These undiscounted amounts are not included in the table above. The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees was $ 21.6 million and $ 24.5 million as of June 18, 2023 and January 1, 2023 , respectively. The Company does not believe these arrangements have or are likely to have a material effect on its results of operations, financial condition, revenues, expenses or liquidity.

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information	6 Months Ended
	Jun. 18, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Disclosures of Cash Flow Information	8. Supplemental Disclosures of Cash Flow Information The Company had non-cash investing activities related to accruals for capital expenditures of $ 7.2 million at June 18, 2023 and $ 6.9 million at January 1, 2023. As of June 18, 2023, the Company also had $ 1.1 million in non-cash financing activity related to accruals for excise taxes on share repurchases.

Company-owned Store Transaction

Company-owned Store Transactions	6 Months Ended
	Jun. 18, 2023
Business Combinations [Abstract]
Company-owned Store Transactions	9. Company-owned Store Transactions During the first quarter of 2023, the Company refranchised one U.S. Company-owned store for proceeds of less than $ 0.1 million. The pre-tax refranchising loss associated with the sale of the related assets and liabilities, including goodwill, was approximately $ 0.1 million and was recorded in refranchising loss in the Company’s condensed consolidated statements of income. During the first quarter of 2022, the Company purchased 23 U.S. franchised stores in Michigan from certain of the Company’s existing U.S. franchisees for $ 6.8 million, which included $ 4.0 million of intangibles, $ 1.7 million of equipment and leasehold improvements and $ 1.1 million of goodwill.

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 18, 2023
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	. New Accounting Pronouncements The Company has considered all new accounting standards issued by the Financial Accounting Standards Board (“FASB”) and adopted the following accounting standards during the second quarter of 2023. Recently Adopted Accounting Standards Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, updated by ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) 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. On May 15, 2023, certain of the Company’s subsidiaries executed an amendment to the Company’s 2021 variable funding notes to affect the transition from LIBOR to the Secured Overnight Financing Rate (“Term SOFR”), plus a spread adjustment. In connection with this contract amendment, the Company adopted ASU 2020-04 (as updated by ASU 2022-06) in the second quarter of 2023. The amendment to the Company’s 2021 variable funding notes and the adoption of this accounting standard did not have a material impact on the Company’s condensed consolidated financial statements. ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) , which clarifies and amends the guidance of measuring the fair value of equity securities subject to contractual sale restrictions. ASU 2022-03 also requires disclosure of the fair value of equity securities subject to contractual sale restrictions, the nature and remaining duration of the restrictions and the circumstances that could cause a lapse in the restrictions. The Company’s investment in DPC Dash (Note 5) is subject to contractual restrictions that prohibit the Company from selling the security for 360 days following DPC Dash’s initial public offering. The Company early adopted ASU 2022-03 in the second quarter of 2023 and the adoption of this accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 18, 2023
Segment Reporting [Abstract]
Financial Information by Operating Segment	The following tables summarize revenues and earnings before interest, taxes, depreciation, amortization and other, which is the measure by which the Company allocates resources to its segments and which the Company refers to as Segment Income, for each of its reportable segments. Intersegment revenues are comprised of sales of food, equipment and supplies from the supply chain segment to the Company-owned stores in the U.S. stores segment. Intersegment sales prices are market based. The “Other” column as it relates to Segment Income below primarily includes corporate administrative costs that are not allocable to a reportable segment, including labor, computer expenses, professional fees, travel and entertainment, rent, insurance and other corporate administrative costs. Fiscal Quarters Ended June 18, 2023 and June 19, 2022 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2023 $ 338,421 $ 641,481 $ 70,495 $ ( 25,770 ) $ — $ 1,024,627 2022 351,681 683,298 66,915 ( 36,712 ) — 1,065,182 Segment Income 2023 $ 123,592 $ 60,026 $ 58,865 N/A $ ( 18,865 ) $ 223,618 2022 104,055 53,633 52,890 N/A ( 5,621 ) 204,957 Two Fiscal Quarters Ended June 18, 2023 and June 19, 2022 U.S. Supply International Intersegment Stores Chain Franchise Revenues Other Total Revenues 2023 $ 668,922 $ 1,291,605 $ 140,166 $ ( 51,668 ) $ — $ 2,049,025 2022 684,450 1,325,260 135,748 ( 69,127 ) — 2,076,331 Segment Income 2023 $ 236,275 $ 108,541 $ 117,004 N/A $ ( 34,587 ) $ 427,233 2022 201,347 99,982 107,936 N/A ( 13,331 ) 395,934 In the first quarter of 2023, the Company changed its allocation methodology for certain costs which support certain internally
Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes	The following table reconciles total Segment Income to consolidated income before provision for income taxes. Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Total Segment Income $ 223,618 $ 204,957 $ 427,233 $ 395,934 Depreciation and amortization ( 18,561 ) ( 18,117 ) ( 36,731 ) ( 37,093 ) Refranchising loss — — ( 149 ) — Loss on sale/disposal of assets ( 127 ) ( 253 ) ( 402 ) ( 448 ) Non-cash equity-based compensation expense ( 9,527 ) ( 8,473 ) ( 17,065 ) ( 15,738 ) Income from operations 195,403 178,114 372,886 342,655 Other expense ( 14,964 ) — ( 14,964 ) — Interest income 2,537 219 4,928 268 Interest expense ( 44,932 ) ( 44,851 ) ( 91,479 ) ( 91,723 ) Income before provision for income taxes $ 138,044 $ 133,482 $ 271,371 $ 251,200

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 18, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Net income available to common stockholders - basic and diluted $ 109,380 $ 102,493 $ 214,150 $ 193,457 Basic weighted average number of shares 35,199,067 35,915,102 35,295,346 35,957,999 Earnings per share – basic $ 3.11 $ 2.85 $ 6.07 $ 5.38 Diluted weighted average number of shares 35,492,423 36,296,277 35,601,335 36,368,297 Earnings per share – diluted $ 3.08 $ 2.82 $ 6.02 $ 5.32
Schedule of Denominators Used in Calculating Earning Per Common Share	The denominators used in calculating diluted earnings per share for common stock for the fiscal quarters and two fiscal quarters each ended June 18, 2023 and June 19, 2022 do not include the following because the effect of including these shares would be anti-dilutive or because the performance targets for these awards had not yet been met: Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Anti-dilutive shares underlying stock-based awards Stock options 227,276 120,540 229,156 120,540 Restricted stock awards and units 35,064 67,677 36,378 346 Performance condition not met Restricted stock awards and units 59,675 42,710 59,675 42,710

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	6 Months Ended
	Jun. 18, 2023
Federal Home Loan Banks [Abstract]
Changes in Stockholders' Deficit	The following table summarizes the changes in stockholders’ deficit for the second quarter of 2023. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 26, 2023 35,330,133 $ 353 $ 1,474 $ ( 4,148,455 ) $ ( 5,145 ) Net income — — — 109,380 — Dividends declared on common stock and equivalents 1.21 per share) — — — ( 42,645 ) — Issuance and cancellation of stock awards, net 14,078 — — — — Tax payments for restricted stock upon vesting ( 4,596 ) — ( 1,515 ) — — Purchases of common stock ( 292,030 ) ( 2 ) ( 6,824 ) ( 84,800 ) — Exercise of stock options 10,000 — 708 — — Non-cash equity-based compensation expense — — 9,527 — — Currency translation adjustment — — — — 1,378 Balance at June 18, 2023 35,057,585 $ 351 $ 3,370 $ ( 4,166,520 ) $ ( 3,767 ) The following table summarizes the changes in stockholders’ deficit for the two fiscal quarters of 2023. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 1, 2023 35,419,718 $ 354 $ 9,693 $ ( 4,194,418 ) $ ( 4,694 ) Net income — — — 214,150 — Dividends declared on common stock and equivalents 2.42 per share) — — — ( 85,650 ) — Issuance and cancellation of stock awards, net 28,573 — — — — Tax payments for restricted stock upon vesting ( 9,669 ) — ( 3,068 ) — — Purchases of common stock ( 392,545 ) ( 3 ) ( 21,371 ) ( 100,602 ) — Exercise of stock options 11,508 — 1,051 — — Non-cash equity-based compensation expense — — 17,065 — — Currency translation adjustment — — — — 927 Balance at June 18, 2023 35,057,585 $ 351 $ 3,370 $ ( 4,166,520 ) $ ( 3,767 ) The following table summarizes the changes in stockholders’ deficit for the second quarter of 2022. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at March 27, 2022 36,037,373 $ 360 $ 3,545 $ ( 4,200,341 ) $ ( 2,206 ) Net income — — — 102,493 — Dividends declared on common stock and equivalents 1.10 per share) — — — ( 39,603 ) — Issuance and cancellation of stock awards, net 13,866 — — — — Tax payments for restricted stock upon vesting ( 3,950 ) — ( 1,606 ) — — Purchases of common stock ( 148,248 ) ( 1 ) ( 7,083 ) ( 42,916 ) — Exercise of stock options 605 — 260 — — Non-cash equity-based compensation expense — — 8,473 — — Currency translation adjustment — — — — ( 1,684 ) Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 ) The following table summarizes the changes in stockholders’ deficit for the two fiscal quarters of 2022. Accumulated Additional Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Deficit Loss Balance at January 2, 2022 36,138,273 $ 361 $ 840 $ ( 4,207,917 ) $ ( 2,820 ) Net income — — — 193,457 — Dividends declared on common stock and equivalents 2.20 per share) — — — ( 79,368 ) — Issuance and cancellation of stock awards, net 14,206 — — — — Tax payments for restricted stock upon vesting ( 5,825 ) — ( 2,395 ) — — Purchases of common stock ( 249,058 ) ( 2 ) ( 11,120 ) ( 86,539 ) — Exercise of stock options 2,050 — 526 — — Non-cash equity-based compensation expense — — 15,738 — — Currency translation adjustment — — — — ( 1,070 ) Balance at June 19, 2022 35,899,646 $ 359 $ 3,589 $ ( 4,180,367 ) $ ( 3,890 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 18, 2023
Fair Value Disclosures [Abstract]
Carrying Amounts and Fair Values of Certain Assets	The following tables summarize the carrying amounts and fair values of certain assets at June 18, 2023 and January 1, 2023: At June 18, 2023 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 32,110 $ 32,110 $ — $ — Restricted cash equivalents 119,501 119,501 — — Investments in marketable securities 14,742 14,742 — — Advertising fund cash equivalents, restricted 118,505 118,505 — — Investment in DPC Dash 110,876 110,876 — — At January 1, 2023 Fair Value Estimated Using Carrying Level 1 Level 2 Level 3 Amount Inputs Inputs Inputs Cash equivalents $ 23,779 $ 23,779 $ — $ — Restricted cash equivalents 117,212 117,212 — — Investments in marketable securities 13,395 13,395 — — Advertising fund cash equivalents, restricted 124,496 124,496 — — Investment in DPC Dash 125,840 — — 125,840
Schedule of Estimated Fair Value	Management estimated the approximate fair values of the Company ’s 2015, 2017, 2018, 2019 and 2021 notes as follows: June 18, 2023 January 1, 2023 Principal Amount Fair Value Principal Amount Fair Value 2015 Ten-Year Notes $ 748,000 $ 715,088 $ 752,000 $ 717,408 2017 Ten-Year Notes 947,500 878,333 952,500 875,348 2018 7.5-Year Notes 405,875 384,770 408,000 385,968 2018 9.25-Year Notes 382,000 357,170 384,000 355,584 2019 Ten-Year Notes 653,063 572,736 656,438 564,536 2021 7.5-Year Notes 833,000 706,384 837,250 695,755 2021 Ten-Year Notes 980,000 803,600 985,000 792,925

Revenue Disclosures (Tables)

Revenue Disclosures (Tables)	6 Months Ended
	Jun. 18, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees	Changes in deferred franchise fees and deferred development fees for the two fiscal quarters of 2023 and the two fiscal quarters of 2022 were as follows: Two Fiscal Quarters Ended June 18, June 19, 2023 2022 Deferred franchise fees and deferred development fees, beginning of period $ 28,225 $ 29,694 Revenue recognized during the period ( 2,716 ) ( 2,855 ) New deferrals due to cash received and other 1,400 2,448 Deferred franchise fees and deferred development fees, end of period $ 26,909 $ 29,287

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 18, 2023
Leases [Abstract]
Components Of Operating And Finance Lease Cost	The components of operating and finance lease cost for the second quarter and two fiscal quarters of 2023, and the second quarter and two fiscal quarters of 2022 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Operating lease cost $ 10,867 $ 10,789 $ 21,675 $ 21,064 Finance lease cost: Amortization of right-of-use assets 1,313 1,195 2,512 2,403 Interest on lease liabilities 1,015 732 1,998 1,836 Total finance lease cost $ 2,328 $ 1,927 $ 4,510 $ 4,239
Schedule of Supplemental Balance Sheet Information Related To Finance Leases	Supplemental balance sheet information related to the Company’s finance leases as of June 18, 2023 and January 1, 2023 was as follows: June 18, January 1, 2023 2023 Land and buildings $ 83,982 $ 83,902 Equipment 3,951 1,606 Finance lease assets 87,933 85,508 Accumulated depreciation and amortization ( 21,468 ) ( 19,405 ) Finance lease assets, net $ 66,465 $ 66,103 Current portion of long-term debt $ 4,245 $ 3,313 Long-term debt , less current portion 71,316 70,886 Total principal payable on finance leases $ 75,561 $ 74,199 As of June 18, 2023 and January 1, 2023, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows: June 18, 2023 January 1, 2023 Operating Finance Operating Finance Leases Leases Leases Leases Weighted average remaining lease term 7 years 14 years 7 years 14 years Weighted average discount rate 4.0 % 6.0 % 3.9 % 6.0 %
Schedule Of Supplemental Cash Flow Information Related To Leases	Supplemental cash flow information related to leases for the second quarter and two fiscal quarters of 2023 and the second quarter and two fiscal quarters of 2022 were as follows: Fiscal Quarter Ended Two Fiscal Quarters Ended June 18, June 19, June 18, June 19, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,771 $ 7,858 $ 20,092 $ 18,495 Operating cash flows from finance leases 1,015 732 1,998 1,836 Financing cash flows from finance leases 412 792 1,436 1,778 Right-of-use assets obtained in exchange for lease obligations: Operating leases 2,870 23,407 12,175 31,164 Finance leases 2,183 — 3,054 —
Schedule Of Maturities Of Operating And Finance Leases Liabilities	Maturities of lease liabilities as of June 18, 2023 were as follows: Operating Finance Leases Leases 2023 $ 25,474 $ 4,485 2024 44,198 8,670 2025 39,406 8,749 2026 37,763 9,350 2027 30,955 8,181 Thereafter 86,873 68,816 Total future minimum rental commitments 264,669 108,251 Less, amounts representing interest ( 38,364 ) ( 32,690 ) Total lease liabilities $ 226,305 $ 75,561

Segment Information - Financial

Segment Information - Financial Information by Operating Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Segment Reporting Information [Line Items]
Revenues	$ 1,024,627	$ 1,065,182	$ 2,049,025	$ 2,076,331
Segment Income	223,618	204,957	427,233	395,934
Operating Segments [Member] | U.S. Stores [Member]
Segment Reporting Information [Line Items]
Revenues	338,421	351,681	668,922	684,450
Segment Income	123,592	104,055	236,275	201,347
Operating Segments [Member] | Supply Chain [Member]
Segment Reporting Information [Line Items]
Revenues	641,481	683,298	1,291,605	1,325,260
Segment Income	60,026	53,633	108,541	99,982
Operating Segments [Member] | International Franchise [Member]
Segment Reporting Information [Line Items]
Revenues	70,495	66,915	140,166	135,748
Segment Income	58,865	52,890	117,004	107,936
Intersegment Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	(25,770)	(36,712)	(51,668)	(69,127)
Segment Reconciling [Member]
Segment Reporting Information [Line Items]
Segment Income	$ (18,865)	$ (5,621)	$ (34,587)	$ (13,331)

Segment Information (Additional

Segment Information (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 18, 2023	Jun. 18, 2023
Segment Reporting Information [Line Items]
Increase Decrease in Segment Income	$ 17.7	$ 29.7
U S Stores [Member]
Segment Reporting Information [Line Items]
Increase Decrease in Segment Income	15.8	25.9
International Franchise [Member]
Segment Reporting Information [Line Items]
Increase Decrease in Segment Income	$ 1.9	$ 3.8

Segment Information - Reconcili

Segment Information - Reconciliation of Total Segment Income to Consolidated Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Segment Reconciliation [Abstract]
Total Segment Income	$ 223,618	$ 204,957	$ 427,233	$ 395,934
Depreciation and amortization	(18,561)	(18,117)	(36,731)	(37,093)
Refranchising loss			(149)	0
Loss on sale/disposal of assets	(127)	(253)	(402)	(448)
Non-cash equity-based compensation expense	9,527	8,473	(17,065)	(15,738)
Income from operations	195,403	178,114	372,886	342,655
Other expense	(14,964)		(14,964)
Interest income	2,537	219	4,928	268
Interest expense	(44,932)	(44,851)	(91,479)	(91,723)
Income before provision for income taxes	$ 138,044	$ 133,482	$ 271,371	$ 251,200

Earnings Per Share - Summary of

Earnings Per Share - Summary of Computation of Basic and Diluted Earning per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Earnings Per Share [Abstract]
Net income available to common stockholders - basic and diluted	$ 109,380	$ 102,493	$ 214,150	$ 193,457
Basic weighted average number of shares	35,199,067	35,915,102	35,295,346	35,957,999
Earnings per share – basic	$ 3.11	$ 2.85	$ 6.07	$ 5.38
Diluted weighted average number of shares	35,492,423	36,296,277	35,601,335	36,368,297
Earnings Per Share - Diluted	$ 3.08	$ 2.82	$ 6.02	$ 5.32

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Denominators Used in Calculating Earning Per Common Share (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities Excluded from Computation of Earnings Per Share	227,276	120,540	229,156	120,540
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive Securities Excluded from Computation of Earnings Per Share	35,064	67,677	36,378	346
Restricted Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share, amount unvested	59,675	42,710	59,675	42,710

Stockholders' Deficit - Additio

Stockholders' Deficit - Additional Information (Detail) - $ / shares		3 Months Ended		6 Months Ended
	Jul. 20, 2023	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Dividends declared per share		$ 1.21	$ 1.1	$ 2.42	$ 2.2
Subsequent Event [Member]
Dividends declared per share	$ 1.21
Record date of dividend	Sep. 15, 2023
Dividend declared date	Jul. 20, 2023
Dividend payable date	Sep. 29, 2023

Stockholders' Deficit (Detail)

Stockholders' Deficit (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Stockholders' Deficit [Line Items]
Balance	[1]			$ (4,189,065)
Net income		$ 109,380	$ 102,493	214,150	$ 193,457
Balance		$ (4,166,566)		$ (4,166,566)
Common Stock [Member]
Stockholders' Deficit [Line Items]
Balance (in shares)		35,330,133	36,037,373	35,419,718	36,138,273
Balance		$ 353	$ 360	$ 354	$ 361
Issuance and cancellation of stock awards, net (in shares)		14,078	13,866	28,573	14,206
Tax payments for restricted stock upon vesting, (in shares)		(4,596)	(3,950)	(9,669)	(5,825)
Purchases of common stock, (in shares)		(292,030)	(148,248)	(392,545)	(249,058)
Purchases of common stock		$ (2)	$ (1)	$ (3)	$ (2)
Exercises of stock options, (in shares)		10,000	605	11,508	2,050
Balance (in shares)		35,057,585	35,899,646	35,057,585	35,899,646
Balance		$ 351	$ 359	$ 351	$ 359
Additional Paid-in Capital [Member]
Stockholders' Deficit [Line Items]
Balance		1,474	3,545	9,693	840
Tax payments for restricted stock upon vesting		(1,515)	(1,606)	(3,068)	(2,395)
Purchases of common stock		(6,824)	(7,083)	(21,371)	(11,120)
Exercises of stock options		708	260	1,051	526
Non-cash equity-based compensation expense		9,527	8,473	17,065	15,738
Balance		3,370	3,589	3,370	3,589
Retained Deficit [Member]
Stockholders' Deficit [Line Items]
Balance		(4,148,455)	(4,200,341)	(4,194,418)	(4,207,917)
Net income		109,380	102,493	214,150	193,457
Dividends declared on common stock and equivalents		(42,645)	(39,603)	(85,650)	(79,368)
Purchases of common stock		(84,800)	(42,916)	(100,602)	(86,539)
Balance		(4,166,520)	(4,180,367)	(4,166,520)	(4,180,367)
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' Deficit [Line Items]
Balance		(5,145)	(2,206)	(4,694)	(2,820)
Currency translation adjustment		1,378	(1,684)	927	(1,070)
Balance		$ (3,767)	$ (3,890)	$ (3,767)	$ (3,890)
[1] The condensed consolidated balance sheet at January 1, 2023 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

Stockholders' Deficit (Parenthe

Stockholders' Deficit (Parenthetical) (Detail) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Dividends declared per share	$ 1.21	$ 1.1	$ 2.42	$ 2.2

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Mar. 28, 2023	Jun. 18, 2023	Jun. 19, 2022
Unrealized loss on investments			$ (14,964)	$ 0
Dash Brands Ltd [Member]
Unrealized loss on investments	$ 15,000
initial public offering, per share	$ 47.9		$ 47.9
senior ordinary shares into ordinary shares		18,101,019

Carrying Amounts and Fair Value

Carrying Amounts and Fair Values of Certain Assets (Detail) - USD ($) $ in Thousands	Jun. 18, 2023	Jan. 01, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, carrying amount	$ 32,110	$ 23,779
Restricted cash equivalents, carrying amount	119,501	117,212
Investments in marketable securities, carrying amount	14,742	13,395
Advertising fund cash equivalents, restricted, carrying amount	118,505	124,496
Investments	110,876	125,840
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, carrying amount	32,110	23,779
Restricted cash equivalents, carrying amount	119,501	117,212
Investments in marketable securities, carrying amount	14,742	13,395
Advertising fund cash equivalents, restricted, fair value	$ 118,505	124,496
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments		$ 125,840

Schedule of Estimated Fair Valu

Schedule of Estimated Fair Value (Detail) - USD ($) $ in Thousands	Jun. 18, 2023	Jan. 01, 2023
2015 Ten-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	$ 748,000	$ 752,000
Fair Value	715,088	717,408
2017 Ten-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	947,500	952,500
Fair Value	878,333	875,348
2018 7.5-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	405,875	408,000
Fair Value	384,770	385,968
2018 9.25-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	382,000	384,000
Fair Value	357,170	355,584
2019 Ten-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	653,063	656,438
Fair Value	572,736	564,536
2021 7.5-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	833,000	837,250
Fair Value	706,384	695,755
2021 Ten-Year Notes [Member]
Debt Instrument [Line Items]
Principal Amount	980,000	985,000
Fair Value	$ 803,600	$ 792,925

Revenue Disclosures - Additiona

Revenue Disclosures - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Mar. 27, 2023	Jun. 18, 2023	Jan. 01, 2023
Contract liability, Current		$ 5,500	$ 5,500
Contract liability, Noncurrent		21,400	22,700
Advertising fund assets, restricted		154,052	162,660	[1]
Temporary reduction	0.25%
Advertising contribution	6%
Maximum [Member]
Digital Per Transaction Technology Fees	$ 0.395
Minimum [Member]
Digital Per Transaction Technology Fees	$ 0.08
U S Stores [Member] | Domestic Franchise [Member] | Cash, cash equivalents and investments [Member]
Advertising fund assets, restricted		139,100	143,600
U S Stores [Member] | Domestic Franchise [Member] | Accounts receivable [Member]
Advertising fund assets, restricted		10,000	13,100
U S Stores [Member] | Domestic Franchise [Member] | Prepaid expenses [Member]
Advertising fund assets, restricted		5,000	6,000
U S Stores [Member] | U.S. Company-owned stores [Member] | Cash, cash equivalents and investments [Member]
Cash contributed from Company-owned stores		$ 3,700	$ 4,800
[1] The condensed consolidated balance sheet at January 1, 2023 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.

Revenue Disclosures - Schedule

Revenue Disclosures - Schedule of Contract Liabilities Consist of Deferred Franchise Fees and Deferred Development Fees (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022
Revenue from Contract with Customer [Abstract]
Deferred franchise fees and deferred development fees at beginning of period	$ 28,225	$ 29,694
Revenue recognized during the period	(2,716)	(2,855)
New deferrals due to cash received and other	1,400	2,448
Deferred franchise fees and deferred development fees at end of period	$ 26,909	$ 29,287

Components of Operating and Fin

Components of Operating and Finance Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Operating lease cost	$ 10,867	$ 10,789	$ 21,675	$ 21,064
Finance lease cost:
Amortization of right-of-use assets	1,313	1,195	2,512	2,403
Interest on lease liabilities	1,015	732	1,998	1,836
Total finance lease cost	$ 2,328	$ 1,927	$ 4,510	$ 4,239

Supplemental balance sheet info

Supplemental balance sheet information related to the Company's leases (Detail) - USD ($) $ in Thousands	Jun. 18, 2023	Jan. 01, 2023
Land and buildings	$ 83,982	$ 83,902
Equipment	3,951	1,606
Finance lease assets	87,933	85,508
Accumulated depreciation and amortization	(21,468)	(19,405)
Finance lease assets, net	66,465	66,103
Current portion of long-term debt	$ 4,245	$ 3,313
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	$ 71,316	$ 70,886
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	$ 75,561	$ 74,199
Finance Lease, Weighted Average Remaining Lease Term	14 years	14 years
Finance Lease, Weighted Average Discount Rate, Percent	6%	6%
Operating Lease, Weighted Average Remaining Lease Term	7 years	7 years
Operating Lease, Weighted Average Discount Rate, Percent	4%	3.90%

Supplemental Cash Flow Informat

Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 9,771	$ 7,858	$ 20,092	$ 18,495
Operating cash flows from finance leases	1,015	732	1,998	1,836
Financing cash flows from finance leases	412	792	1,436	1,778
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	2,870	23,407	12,175	31,164
Finance leases	$ 2,183	$ 0	$ 3,054	$ 0

Maturities of Lease Liabilities

Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands	Jun. 18, 2023	Jan. 01, 2023
Leases [Abstract]
2023	$ 25,474
2024	44,198
2025	39,406
2026	37,763
2027	30,955
Thereafter	86,873
Total future minimum rental commitments	264,669
Less – amounts representing interest	(38,364)
Total lease liabilities	226,305
2023	4,485
2024	8,670
2025	8,749
2026	9,350
2027	8,181
Thereafter	68,816
Total future minimum rental commitments	108,251
Less – amounts representing interest	(32,690)
Total principal payable on finance leases	$ 75,561	$ 74,199

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 18, 2023	Jun. 19, 2022	Jun. 18, 2023	Jun. 19, 2022	Jan. 01, 2023
Rent Expense	$ 19.7	$ 19	$ 39	$ 37.9
Finance Lease	1.3	$ 1.6	2.7	$ 3.8
Lessee, operating lease, lease not yet commenced, future minimum rental commitments	43.1		43.1
Potential future payments	$ 21.6		$ 21.6		$ 24.5
Operating Lease [Member]
Lease Term	11 years		11 years

Supplemental Disclosures of C_2

Supplemental Disclosures of Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 18, 2023	Jan. 01, 2023
Schedule of Cash Flow, Supplemental [Line Items]
Capital expenditure accrual	$ 7.2	$ 6.9
Accruals for Excise Taxes, Non-cash financing activity	$ 1.1

Company-owned Store Transacti_2

Company-owned Store Transactions - Additional Information (Detail) - US Franchisee [Member] $ in Millions	3 Months Ended
	Mar. 26, 2023 USD ($)	Mar. 27, 2022 USD ($) Store
Business Acquisition [Line Items]
Number of stores purchased | Store		23
Receipts from sale of franchisees	$ 0.1
Reduction of goodwill related to sale of stores	$ 0.1
Payments for purchase of franchisees		$ 6.8
Value of intangibles purchased		4
Value of leasehold and other assets purchased		1.7
Value of goodwill purchased		$ 1.1