Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DNKN | |
Entity Registrant Name | DUNKIN' BRANDS GROUP, INC. | |
Entity Central Index Key | 1,357,204 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 90,322,903 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 266,981 | $ 361,425 |
Restricted cash | 76,141 | 69,746 |
Accounts receivable, net of allowance for doubtful accounts of $4,616 and $4,778 as of September 30, 2017 and December 31, 2016, respectively | 47,136 | 44,512 |
Notes and other receivables, net of allowance for doubtful accounts of $500 and $339 as of September 30, 2017 and December 31, 2016, respectively | 30,274 | 40,672 |
Restricted assets of advertising funds | 57,873 | 40,338 |
Prepaid income taxes | 9,843 | 20,926 |
Prepaid expenses and other current assets | 33,605 | 28,739 |
Total current assets | 521,853 | 606,358 |
Property and equipment, net of accumulated depreciation of $135,284 and $124,675 as of September 30, 2017 and December 31, 2016, respectively | 170,269 | 176,662 |
Equity method investments | 128,633 | 114,738 |
Goodwill | 888,311 | 888,272 |
Other intangible assets, net of accumulated amortization of $245,569 and $230,364 as of September 30, 2017 and December 31, 2016, respectively | 1,362,586 | 1,378,720 |
Other assets | 67,674 | 62,632 |
Total assets | 3,139,326 | 3,227,382 |
Current liabilities: | ||
Current portion of long-term debt | 25,000 | 25,000 |
Capital lease obligations | 584 | 589 |
Accounts payable | 12,416 | 12,682 |
Liabilities of advertising funds | 57,935 | 52,271 |
Deferred income | 37,595 | 35,393 |
Other current liabilities | 230,487 | 298,266 |
Total current liabilities | 364,017 | 424,201 |
Long-term debt, net | 2,388,091 | 2,401,998 |
Capital lease obligations | 7,209 | 7,550 |
Unfavorable operating leases acquired | 10,164 | 11,378 |
Deferred income | 10,729 | 12,154 |
Deferred income taxes, net | 459,524 | 461,810 |
Other long-term liabilities | 73,680 | 71,549 |
Total long-term liabilities | 2,949,397 | 2,966,439 |
Commitments and contingencies (note 9) | ||
Stockholders’ equity (deficit): | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 90,290,628 shares issued and 90,263,851 shares outstanding as of September 30, 2017; 91,464,229 shares issued and 91,437,452 shares outstanding as of December 31, 2016 | 90 | 91 |
Additional paid-in capital | 746,052 | 807,492 |
Treasury stock, at cost; 26,777 shares as of September 30, 2017 and December 31, 2016 | (1,060) | (1,060) |
Accumulated deficit | (900,217) | (945,797) |
Accumulated other comprehensive loss | (18,953) | (23,984) |
Total stockholders’ deficit | (174,088) | (163,258) |
Total liabilities and stockholders’ deficit | $ 3,139,326 | $ 3,227,382 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 4,616 | $ 4,778 |
Notes and other receivables, allowance for doubtful accounts | 500 | 339 |
Property and equipment, accumulated depreciation | 135,284 | 124,675 |
Other intangible assets, accumulated amortization | $ 245,569 | $ 230,364 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, shares issued (in shares) | 90,290,628 | 91,464,229 |
Common stock, shares outstanding (in shares) | 90,263,851 | 91,437,452 |
Treasury Stock, Shares | 26,777 | 26,777 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Revenues: | ||||
Franchise fees and royalty income | $ 151,809 | $ 138,639 | $ 426,944 | $ 399,617 |
Rental income | 27,713 | 26,880 | 79,543 | 75,874 |
Sales of ice cream and other products | 27,551 | 26,568 | 85,710 | 86,425 |
Sales at company-operated restaurants | 0 | 1,611 | 0 | 11,924 |
Other revenues | 17,095 | 13,401 | 41,165 | 39,344 |
Total revenues | 224,168 | 207,099 | 633,362 | 613,184 |
Operating costs and expenses: | ||||
Occupancy expenses—franchised restaurants | 15,333 | 15,881 | 43,758 | 42,691 |
Cost of ice cream and other products | 19,457 | 18,384 | 58,578 | 58,445 |
Company-operated restaurant expenses | 0 | 1,682 | 0 | 13,472 |
General and administrative expenses, net | 61,996 | 59,374 | 185,613 | 184,028 |
Depreciation | 4,941 | 5,050 | 15,096 | 15,361 |
Amortization of other intangible assets | 5,341 | 5,397 | 16,001 | 16,726 |
Long-lived asset impairment charges | 536 | 7 | 643 | 104 |
Total operating costs and expenses | 107,604 | 105,775 | 319,689 | 330,827 |
Net income of equity method investments | 5,466 | 5,467 | 12,612 | 12,148 |
Other operating income, net | 3 | 2,569 | 591 | 6,329 |
Operating income | 122,033 | 109,360 | 326,876 | 300,834 |
Other income (expense), net: | ||||
Interest income | 624 | 161 | 1,370 | 434 |
Interest expense | (24,436) | (24,603) | (74,192) | (74,456) |
Other income (losses), net | 155 | (124) | 370 | (596) |
Total other expense, net | (23,657) | (24,566) | (72,452) | (74,618) |
Income before income taxes | 98,376 | 84,794 | 254,424 | 226,216 |
Provision for income taxes | 46,130 | 32,082 | 99,007 | 86,760 |
Net income | $ 52,246 | $ 52,712 | $ 155,417 | $ 139,456 |
Earnings per share: | ||||
Common-basic (in dollars per share) | $ 0.58 | $ 0.58 | $ 1.71 | $ 1.52 |
Common-diluted (in dollars per share) | 0.57 | 0.57 | 1.68 | 1.51 |
Dividend per share of common stock declared (in usd per share) | $ 0.3225 | $ 0.30 | $ 0.9675 | $ 0.90 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Other comprehensive income (loss), net: | ||||
Net income | $ 52,246 | $ 52,712 | $ 155,417 | $ 139,456 |
Effect of foreign currency translation, net of deferred tax expense (benefit) of $6 and $(59) for the three months ended September 30, 2017 and September 24, 2016, respectively, and $579 and $(488) for the nine months ended September 30, 2017 and September 24, 2016, respectively | (662) | 6,161 | 5,309 | 8,730 |
Effect of interest rate swaps, net of deferred tax benefit of $216 for each of the three months ended September 30, 2017 and September 24, 2016 and $650 for each of the nine months ended September 30, 2017 and September 24, 2016 | (319) | (319) | (955) | (955) |
Other, net | 24 | (27) | 677 | (230) |
Total other comprehensive income (loss), net | (957) | 5,815 | 5,031 | 7,545 |
Comprehensive income | $ 51,289 | $ 58,527 | $ 160,448 | $ 147,001 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Deferred tax effect, foreign currency translation | $ 6 | $ (59) | $ 579 | $ (488) |
Income tax effect, Amount of net gain (loss) reclassified into earnings | $ (216) | $ (216) | $ (650) | $ (650) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 24, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 155,417 | $ 139,456 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 31,097 | 32,087 |
Amortization of debt issuance costs | 4,843 | 4,700 |
Deferred income taxes | (1,516) | (5,595) |
Provision for bad debt | 599 | 681 |
Share-based compensation expense | 10,896 | 12,548 |
Net income of equity method investments | (12,612) | (12,148) |
Dividends received from equity method investments | 4,711 | 5,247 |
Gain on sale of real estate and company-operated restaurants | (29) | (6,322) |
Other, net | (2,299) | (1,554) |
Change in operating assets and liabilities: | ||
Accounts, notes, and other receivables, net | 7,712 | 43,482 |
Prepaid income taxes, net | 10,884 | 6,569 |
Prepaid expenses and other current assets | (4,600) | (3,552) |
Accounts payable | (1,501) | (1,635) |
Other current liabilities | (68,274) | (91,651) |
Liabilities of advertising funds, net | (11,232) | 896 |
Deferred income | 722 | 3,800 |
Other, net | (3,289) | 4,250 |
Net cash provided by operating activities | 121,529 | 131,259 |
Cash flows from investing activities: | ||
Additions to property and equipment | (8,998) | (10,358) |
Proceeds from sale of real estate and company-operated restaurants | 0 | 15,479 |
Other, net | (101) | (1,014) |
Net cash provided by (used in) investing activities | (9,099) | 4,107 |
Cash flows from financing activities: | ||
Repayment of long-term debt | (18,750) | (18,750) |
Payment of debt issuance and other debt-related costs | (312) | 0 |
Dividends paid on common stock | (87,911) | (82,326) |
Repurchases of common stock, including accelerated share repurchases | (127,186) | (30,000) |
Exercise of stock options | 33,267 | 4,937 |
Other, net | (214) | (690) |
Net cash used in financing activities | (201,106) | (126,829) |
Effect of exchange rates on cash, cash equivalents, and restricted cash | 576 | 20 |
Increase (decrease) in cash, cash equivalents, and restricted cash | (88,100) | 8,557 |
Cash, cash equivalents, and restricted cash, beginning of period | 431,832 | 333,115 |
Cash, cash equivalents, and restricted cash, end of period | 343,732 | 341,672 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 89,882 | 86,460 |
Cash paid for interest | 70,038 | 70,749 |
Noncash investing activities: | ||
Property and equipment included in accounts payable and other current liabilities | 1,919 | 1,121 |
Purchase of leaseholds in exchange for capital lease obligations | $ 330 | $ 389 |
Description of Business and Org
Description of Business and Organization | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Description of Business and Organization | Description of business and organization Dunkin’ Brands Group, Inc. (“DBGI”), together with its consolidated subsidiaries, is one of the world’s leading franchisors of restaurants serving coffee and baked goods, as well as ice cream, within the quick service restaurant segment of the restaurant industry. We franchise and license a system of both traditional and nontraditional quick service restaurants and, in limited circumstances, have owned and operated locations. Through our Dunkin’ Donuts brand, we franchise restaurants featuring coffee, donuts, bagels, breakfast sandwiches, and related products. Additionally, we license Dunkin’ Donuts brand products sold in certain retail outlets such as retail packaged coffee, Dunkin’ K-Cup® pods, and ready-to-drink bottled iced coffee. Through our Baskin-Robbins brand, we franchise restaurants featuring ice cream, frozen beverages, and related products. Additionally, we distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international markets. Throughout these unaudited consolidated financial statements, “Dunkin’ Brands,” “the Company,” “we,” “us,” “our,” and “management” refer to DBGI and its consolidated subsidiaries taken as a whole. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | |
Summary of Significant Accounting Policies | Summary of significant accounting policies (a) Unaudited consolidated financial statements The consolidated balance sheet as of September 30, 2017 , the consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2017 and September 24, 2016 , and the consolidated statements of cash flows for the nine months ended September 30, 2017 and September 24, 2016 are unaudited. The accompanying unaudited consolidated financial statements include the accounts of DBGI and its consolidated subsidiaries and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. In the opinion of management, all adjustments necessary for a fair presentation of such financial statements in accordance with U.S. GAAP have been recorded. Such adjustments consisted only of normal recurring items. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2016 , included in the Company’s Annual Report on Form 10-K. (b) Fiscal year The Company operates and reports financial information on a 52 - or 53 -week year on a 13 -week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within the three- and nine-month periods ended September 30, 2017 and September 24, 2016 reflect the results of operations for the 13-week and 39-week periods ended on those dates, respectively. Operating results for the three- and nine-month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 30, 2017 . (c) Cash, cash equivalents, and restricted cash In accordance with the Company’s securitized financing facility, certain cash accounts have been established in the name of Citibank, N.A. (the “Trustee”) for the benefit of the Trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents (i) cash collections held by the Trustee, (ii) interest, principal, and commitment fee reserves held by the Trustee related to the Company’s Notes (see note 4 ), and (iii) real estate reserves used to pay real estate obligations. Pursuant to new accounting guidance for fiscal year 2017, restricted cash is combined with cash and cash equivalents when reconciling the beginning and end of period balances in the consolidated statements of cash flows (see note 2 (f)). Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of September 30, 2017 and December 31, 2016 were as follows (in thousands): September 30, December 31, Cash and cash equivalents $ 266,981 361,425 Restricted cash 76,141 69,746 Restricted cash, included in Other assets 610 661 Total cash, cash equivalents, and restricted cash $ 343,732 431,832 (d) Fair value of financial instruments Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 10,389 10,389 9,271 9,271 Total assets $ 10,389 10,389 9,271 9,271 Liabilities: Deferred compensation liabilities $ 12,851 12,851 11,126 11,126 Total liabilities $ 12,851 12,851 11,126 11,126 The deferred compensation liabilities relate to the Dunkin’ Brands, Inc. non-qualified deferred compensation plans (“NQDC Plans”), which allow for pre-tax deferral of compensation for certain qualifying employees and directors. Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to hypothetical investments. The Company holds company-owned life insurance policies to partially offset the Company’s liabilities under the NQDC Plans. The changes in the fair value of any company-owned life insurance policies are derived using determinable cash surrender value. As such, the company-owned life insurance policies are classified within Level 2, as defined under U.S. GAAP. The carrying value and estimated fair value of long-term debt as of September 30, 2017 and December 31, 2016 were as follows (in thousands): September 30, 2017 December 31, 2016 Carrying value Estimated fair value Carrying value Estimated fair value Financial liabilities Long-term debt $ 2,413,091 2,474,291 2,426,998 2,460,544 The estimated fair value of our long-term debt is estimated primarily based on current market rates for debt with similar terms and remaining maturities or current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, our long-term debt is classified within Level 2, as defined under U.S. GAAP. (e) Concentration of credit risk The Company is subject to credit risk through its accounts receivable consisting primarily of amounts due from franchisees and licensees for franchise fees, royalty income, and sales of ice cream and other products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. As of September 30, 2017 and December 31, 2016 , one master licensee, including its majority-owned subsidiaries, accounted for approximately 18% and 15% , respectively, of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for each of the three and nine months ended September 30, 2017 and September 24, 2016 . Additionally, the Company engages various third parties to manufacture and/or distribute certain Dunkin’ Donuts and Baskin-Robbins products under licensing arrangements. As of September 30, 2017 , one of these third parties accounted for approximately 13% of total accounts and notes receivable. No individual third party accounted for more than 10% of total accounts and notes receivable as of December 31, 2016 . (f) Recent accounting pronouncements Recently adopted accounting pronouncements In January 2017, the Financial Accounting Standards Board (the “FASB”) issued new guidance for goodwill impairment which requires only a single-step quantitative test to identify and measure impairment and record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The option to perform a qualitative assessment first for a reporting unit to determine if a quantitative impairment test is necessary does not change under the new guidance. The Company early adopted this guidance in fiscal year 2017. The adoption of this guidance had no impact on the Company’s consolidated financial statements, and did not impact our annual goodwill impairment test performed as of the first day of the third quarter of fiscal year 2017. In November 2016, the FASB issued new guidance addressing diversity in practice that exists in the classification and presentation of changes in restricted cash in the statements of cash flows. The Company early adopted this guidance retrospectively in fiscal year 2017. Accordingly, changes in restricted cash that have historically been included within operating and financing activities have been eliminated, and restricted cash is combined with cash and cash equivalents when reconciling the beginning and end of period balances for all periods presented. The adoption of this guidance primarily resulted in a decrease of $1.1 million in net cash provided by operating activities for the nine months ended September 24, 2016 and had no impact on the consolidated statements of operations and balance sheets. In March 2016, the FASB issued new guidance for employee share-based compensation which simplifies several aspects of accounting for share-based payment transactions, including excess tax benefits, forfeiture estimates, statutory tax withholding requirements, and classification in the statements of cash flows. The Company adopted this guidance in fiscal year 2017, which had the following impact on the consolidated financial statements: • On a prospective basis, as required, the Company recorded excess tax benefits of $524 thousand and $7.3 million to the provision for income taxes in the consolidated statements of operations for the three and nine months ended September 30, 2017 , respectively, instead of additional paid-in capital in the consolidated balance sheets. As a result, net income increased $524 thousand and $7.3 million , for the three and nine months ended September 30, 2017 , respectively, and basic and diluted earnings per share increased $0.01 and $0.08 for the three and nine months ended September 30, 2017 , respectively. • Excess tax benefits are presented as operating cash inflows instead of financing cash inflows in the consolidated statements of cash flows, which the Company elected to apply on a retrospective basis. As a result, the Company classified $7.3 million and $2.0 million for the nine months ended September 30, 2017 and September 24, 2016 , respectively, of excess tax benefits as operating cash inflows included within the change in prepaid income taxes, net in the consolidated statements of cash flows. The retrospective reclassification resulted in increases in cash provided by operating activities and cash used in financing activities of $2.0 million for the nine months ended September 24, 2016 . • The Company prospectively excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share under the treasury stock method, which did not have a material impact on diluted earnings per share for the three and nine months ended September 30, 2017. Recent accounting pronouncements not yet adopted Leases In February 2016, the FASB issued new guidance for lease accounting, which replaces existing lease accounting guidance. The new guidance aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This guidance is effective for the Company in fiscal year 2019 with early adoption permitted, and modified retrospective application is required. The Company expects to adopt this new guidance in fiscal year 2019 and is currently evaluating the impact the adoption of this new guidance will have on the Company’s consolidated financial statements and related disclosures. The Company expects that substantially all of its operating lease commitments will be subject to the new guidance and will be recognized as operating lease liabilities and right-of-use assets upon adoption, thereby having a material impact to its consolidated balance sheet. Revenue from Contracts with Customers In May 2014, the FASB issued new guidance for revenue recognition related to contracts with customers, except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. The new guidance provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new guidance is effective for the Company in fiscal year 2018. The Company intends to adopt this new guidance in fiscal year 2018 using the full retrospective transition method, which will result in restating each prior reporting period presented, fiscal years 2016 and 2017, in the year of adoption. Additionally, a cumulative effect adjustment will be recorded to the opening balance of accumulated deficit as of the first day of fiscal year 2016, the earliest period presented. Based on the expected impacts described below, the Company expects such cumulative effect adjustment to be material to the opening balance of accumulated deficit. The Company expects the adoption of the new guidance to change the timing of recognition of initial franchise fees, including master license and territory fees for our international business, and renewal fees. Currently, these fees are generally recognized upfront upon either opening of the respective restaurant or when a renewal agreement becomes effective. The new guidance will generally require these fees to be recognized over the term of the related franchise license for the respective restaurant, which we expect will result in a material impact to revenue recognized for initial franchise fees and renewal fees. The Company does not expect this new guidance to materially impact the recognition of royalty income. Additionally, rental income is outside the scope of this new guidance, and therefore will not be impacted. The Company also expects the adoption of this new guidance to change the reporting of advertising fund contributions from franchisees and the related advertising fund expenditures, which are not currently included in the consolidated statements of operations. The Company expects the new guidance to require these advertising fund contributions and expenditures to be reported on a gross basis in the consolidated statements of operations. For the fiscal year ended December 31, 2016, franchisee contributions to the U.S. advertising funds were $430.3 million , and therefore we expect this change to have a material impact to our total revenues and expenses. However, we expect such contributions and expenditures to be largely offsetting and therefore do not expect a significant impact on our reported net income. Though the majority of the assessment phase is complete, the Company continues to evaluate the impact the adoption of this new guidance will have on these and other revenue transactions, in addition to the impact on accounting policies and related disclosures. Additionally, the Company is in the process of implementing new accounting systems, business processes, and internal controls related to revenue recognition to assist in the application of the new guidance. (g) Subsequent events Subsequent events have been evaluated through the date these consolidated financial statements were filed. |
Franchise Fees and Royalty Inco
Franchise Fees and Royalty Income | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Franchise Fees And Royalty Income [Abstract] | |
Franchise Fees and Royalty Income | Franchise fees and royalty income Franchise fees and royalty income consisted of the following (in thousands): Three months ended Nine months ended September 30, September 24, September 30, September 24, Royalty income $ 133,740 127,986 387,634 368,190 Initial franchise fees and renewal income 18,069 10,653 39,310 31,427 Total franchise fees and royalty income $ 151,809 138,639 426,944 399,617 The changes in franchised and company-operated points of distribution were as follows: Three months ended Nine months ended September 30, September 24, September 30, September 24, Systemwide points of distribution: Franchised points of distribution in operation—beginning of period 20,242 19,640 20,080 19,308 Franchised points of distribution—opened 326 310 928 988 Franchised points of distribution—closed (189 ) (195 ) (629 ) (563 ) Net transfers from company-operated points of distribution — 23 — 45 Franchised points of distribution in operation—end of period 20,379 19,778 20,379 19,778 Company-operated points of distribution—end of period — 6 — 6 Total systemwide points of distribution—end of period 20,379 19,784 20,379 19,784 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Securitized Financing Facility In January 2015, DB Master Finance LLC (the “Master Issuer”), a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of DBGI, issued Series 2015-1 3.262% Fixed Rate Senior Secured Notes, Class A-2-I (the “2015 Class A-2-I Notes”) with an initial principal amount of $750.0 million and Series 2015-1 3.980% Fixed Rate Senior Secured Notes, Class A-2-II (the “2015 Class A-2-II Notes” and, together with the 2015 Class A-2-I Notes, the “2015 Class A-2 Notes”) with an initial principal amount of $1.75 billion . In addition, the Master Issuer issued Series 2015-1 Variable Funding Senior Secured Notes, Class A-1 (the “2015 Variable Funding Notes” and, together with the 2015 Class A-2 Notes, the “2015 Notes”), which allowed the Master Issuer to borrow up to $100.0 million on a revolving basis. The 2015 Variable Funding Notes could also be used to issue letters of credit. In October 2017, the Master Issuer issued Series 2017-1 3.629% Fixed Rate Senior Secured Notes, Class A-2-I (the “2017 Class A-2-I Notes”) with an initial principal amount of $600.0 million and Series 2017-1 4.030% Fixed Rate Senior Secured Notes, Class A-2-II (the “2017 Class A-2-II Notes” and, together with the 2017 Class A-2-I Notes, the “2017 Class A-2 Notes”) with an initial principal amount of $800.0 million . In addition, the Master Issuer issued Series 2017-1 Variable Funding Senior Secured Notes, Class A-1 (the “2017 Variable Funding Notes” and, together with the 2017 Class A-2 Notes, the “2017 Notes”), which allows for the issuance of up to $150.0 million of 2017 Variable Funding Notes and certain other credit instruments, including letters of credit. A portion of the proceeds of the 2017 Notes was used to repay the remaining $731.3 million of principal outstanding on the 2015 Class A-2-I Notes and to pay related transaction fees. The additional net proceeds will be used for general corporate purposes, which may include a return of capital to the Company’s shareholders. In connection with the issuance of the 2017 Variable Funding Notes, the Master Issuer terminated the commitments with respect to its existing 2015 Variable Funding Notes. The 2015 Notes and 2017 Notes were each issued in a securitization transaction pursuant to which most of the Company’s domestic and certain of its foreign revenue-generating assets, consisting principally of franchise-related agreements, real estate assets, and intellectual property and license agreements for the use of intellectual property, are held by the Master Issuer and certain other limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiaries of the Company that act as guarantors of the 2015 Notes and 2017 Notes and that have pledged substantially all of their assets to secure the 2015 Notes and 2017 Notes. The 2015 Notes and 2017 Notes were issued pursuant to a base indenture and related supplemental indentures (collectively, the “Indenture”) under which the Master Issuer may issue multiple series of notes. The legal final maturity date of the 2015 Class A-2-II Notes and 2017 Class A-2 Notes is in February 2045 and November 2047 , respectively, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2015 Class A-2-II Notes will be repaid by February 2022 , the 2017 Class A-2-I Notes will be repaid by November 2024 , and the 2017 Class A-2-II Notes will be repaid by November 2027 (the “Anticipated Repayment Dates”). If the 2015 Class A-2-II Notes or the 2017 Class A-2 Notes have not been repaid or refinanced by their respective Anticipated Repayment Dates, a rapid amortization event will occur in which residual net cash flows of the Master Issuer, after making certain required payments, will be applied to the outstanding principal of the 2015 Class A-2-II Notes and the 2017 Class A-2 Notes. Various other events, including failure to maintain a minimum ratio of net cash flows to debt service (“DSCR”), may also cause a rapid amortization event. Borrowings under the 2015 Class A-2-II Notes, 2017 Class A-2-I Notes, and 2017 Class A-2-II Notes bear interest at fixed rates equal to 3.980% , 3.629% , and 4.030% , respectively. If the 2015 Class A-2-II Notes or the 2017 Class A-2 Notes are not repaid or refinanced prior to their respective Anticipated Repayment Dates, incremental interest will accrue. Principal payments are required to be made on the 2015 Class A-2-II Notes, 2017 Class A-2-I Notes, and 2017 Class A-2-II Notes equal to $17.5 million , $6.0 million , and $8.0 million , respectively, per calendar year, payable in quarterly installments. No principal payments are required if a specified leverage ratio, which is a measure of outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as specified in the Indenture), is less than or equal to 5.0 to 1.0. Other events and transactions, such as certain asset sales and receipt of various insurance or indemnification proceeds, may trigger additional mandatory prepayments. It is anticipated that the principal and interest on the 2017 Variable Funding Notes will be repaid in full on or prior to November 2022 , subject to two additional one-year extensions. Borrowings under the 2017 Variable Funding Notes bear interest at a rate equal to a LIBOR rate plus 1.50% , or the lenders’ commercial paper funding rate plus 1.50% . If the 2017 Variable Funding Notes are not repaid prior to November 2022 or prior to the end of an extension period, if applicable, incremental interest will accrue. In addition, the Company is required to pay a 1.50% fee for letters of credit amounts outstanding and a commitment fee on the unused portion of the 2017 Variable Funding Notes which ranges from 0.50% to 1.00% based on utilization. As of September 30, 2017 , approximately $731.3 million and $1.71 billion of principal were outstanding on the 2015 Class A-2-I Notes and 2015 Class A-2-II Notes, respectively. Total debt issuance costs incurred and capitalized in connection with the issuance of the 2015 Notes were $41.3 million . The effective interest rate, including the amortization of debt issuance costs, was 3.5% and 4.3% for the 2015 Class A-2-I Notes and 2015 Class A-2-II Notes, respectively, as of September 30, 2017 . As noted above, subsequent to September 30, 2017 , a portion of the net proceeds of the 2017 Notes was used to repay the remaining $731.3 million of principal outstanding on the 2015 Class A-2-I Notes. As of each of September 30, 2017 and December 31, 2016 , $25.9 million of letters of credit were outstanding against the 2015 Variable Funding Notes, which relate primarily to interest reserves required under the Indenture. There were no amounts drawn down on these letters of credit as of September 30, 2017 or December 31, 2016 . The 2015 Class A-2-II Notes and 2017 Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the 2015 Class A-2-II Notes and 2017 Notes, (ii) provisions relating to optional and mandatory prepayments, including mandatory prepayments in the event of a change of control as defined in the Indenture and the related payment of specified amounts, including specified make-whole payments in the case of the 2015 Class A-2-II Notes and 2017 Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the 2015 Class A-2-II Notes and 2017 Notes are in stated ways defective or ineffective, and (iv) covenants relating to recordkeeping, access to information, and similar matters. As noted above, the 2015 Class A-2-II Notes and 2017 Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated DSCR, failure to maintain an aggregate level of Dunkin’ Donuts U.S. retail sales on certain measurement dates, certain manager termination events, an event of default, and the failure to repay or refinance the 2015 Class A-2-II Notes or the 2017 Notes on the applicable Anticipated Repayment Dates. The 2015 Class A-2-II Notes and 2017 Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the 2015 Class A-2-II Notes and 2017 Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other current liabilities Other current liabilities consisted of the following (in thousands): September 30, December 31, Gift card/certificate liability $ 142,020 207,628 Gift card breakage liability 2,668 13,301 Accrued payroll and benefits 29,120 25,071 Accrued legal liabilities (see note 9 (c)) 6,342 5,555 Accrued interest 10,621 10,702 Accrued professional costs 3,012 2,170 Franchisee profit-sharing liability 8,497 11,083 Other 28,207 22,756 Total other current liabilities $ 230,487 298,266 The decrease in the gift card/certificate liability was driven by the seasonality of our gift card program. The franchisee profit-sharing liability represents amounts owed to franchisees from the net profits primarily on the sale of Dunkin’ Donuts brand products such as Dunkin’ K-Cup® pods, retail packaged coffee, and ready-to-drink bottled iced coffee in certain retail outlets. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information The Company is strategically aligned into two global brands, Dunkin’ Donuts and Baskin-Robbins, which are further segregated between U.S. operations and international operations. As such, the Company has determined that it has four operating segments, which are its reportable segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins U.S., and Baskin-Robbins International. Dunkin’ Donuts U.S., Baskin-Robbins U.S., and Dunkin’ Donuts International primarily derive their revenues through royalty income and franchise fees. Baskin-Robbins U.S. also derives revenue through license fees from a third-party license agreement and rental income. Dunkin’ Donuts U.S. also derives revenue through rental income. Prior to the sale of all remaining company-operated restaurants in the fourth quarter of fiscal year 2016, Dunkin’ Donuts U.S. also derived revenue through retail sales at company-operated restaurants. Baskin-Robbins International primarily derives its revenues from sales of ice cream products, as well as royalty income, franchise fees, and license fees. The operating results of each segment are regularly reviewed and evaluated separately by the Company’s senior management, which includes, but is not limited to, the chief executive officer. Senior management primarily evaluates the performance of its segments and allocates resources to them based on operating income adjusted for amortization of intangible assets, long-lived asset impairment charges, impairment of our equity method investments, and other infrequent or unusual charges, which does not reflect the allocation of any corporate charges. This profitability measure is referred to as segment profit. When senior management reviews a balance sheet, it is at a consolidated level. The accounting policies applicable to each segment are generally consistent with those used in the consolidated financial statements. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues. Revenues reported as “Other” include revenues earned through certain licensing arrangements with third parties in which our brand names are used, including the licensing fees earned from the Dunkin’ K-Cup® pod licensing agreement and sales of Dunkin’ Donuts branded ready-to-drink bottled iced coffee, revenues generated from online training programs for franchisees, and revenues from the sale of Dunkin’ Donuts products in certain international markets, all of which are not allocated to a specific segment. Revenues by segment were as follows (in thousands): Revenues Three months ended Nine months ended September 30, September 24, September 30, September 24, Dunkin’ Donuts U.S. $ 165,106 152,425 464,148 444,898 Dunkin’ Donuts International 5,157 4,449 14,947 16,917 Baskin-Robbins U.S. 13,751 13,781 38,645 38,080 Baskin-Robbins International 28,810 27,904 88,876 89,578 Total reportable segment revenues 212,824 198,559 606,616 589,473 Other 11,344 8,540 26,746 23,711 Total revenues $ 224,168 207,099 633,362 613,184 Amounts included in “Corporate” in the segment profit table below include corporate overhead costs, such as payroll and related benefit costs and professional services, net of “Other” revenues reported above. Segment profit by segment was as follows (in thousands): Segment profit Three months ended Nine months ended September 30, September 24, September 30, September 24, Dunkin’ Donuts U.S. $ 129,719 119,434 360,241 335,963 Dunkin’ Donuts International 1,439 705 4,782 6,438 Baskin-Robbins U.S. 10,466 11,085 28,773 29,123 Baskin-Robbins International 11,420 11,154 31,900 30,617 Total reportable segments 153,044 142,378 425,696 402,141 Corporate (25,134 ) (27,614 ) (82,176 ) (84,477 ) Interest expense, net (23,812 ) (24,442 ) (72,822 ) (74,022 ) Amortization of other intangible assets (5,341 ) (5,397 ) (16,001 ) (16,726 ) Long-lived asset impairment charges (536 ) (7 ) (643 ) (104 ) Other income (losses), net 155 (124 ) 370 (596 ) Income before income taxes $ 98,376 84,794 254,424 226,216 Net income of equity method investments is included in segment profit for the Dunkin’ Donuts International and Baskin-Robbins International reportable segments. Amounts reported as “Other” in the segment profit table below include the reduction in depreciation and amortization, net of tax, reported by our equity method investees as a result of previously recorded impairment charges. Net income of equity method investments by reportable segment was as follows (in thousands): Net income (loss) of equity method investments Three months ended Nine months ended September 30, September 24, September 30, September 24, Dunkin’ Donuts International $ 9 351 (68 ) 829 Baskin-Robbins International 4,492 4,266 9,468 8,644 Total reportable segments 4,501 4,617 9,400 9,473 Other 965 850 3,212 2,675 Total net income of equity method investments $ 5,466 5,467 12,612 12,148 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ deficit The changes in total stockholders’ deficit were as follows (in thousands): Total stockholders’ deficit Balance as of December 31, 2016 $ (163,258 ) Net income 155,417 Other comprehensive income 5,031 Dividends paid on common stock (87,911 ) Exercise of stock options 33,267 Repurchases of common stock (127,186 ) Share-based compensation expense 10,896 Other, net (344 ) Balance as of September 30, 2017 $ (174,088 ) (a) Treasury stock During the nine months ended September 30, 2017 , the Company entered into and completed an accelerated share repurchase agreement (the “May 2017 ASR Agreement”) with a third-party financial institution. Pursuant to the terms of the May 2017 ASR Agreement, the Company paid the financial institution $100.0 million in cash and received 1,757,568 shares of the Company’s common stock during the nine months ended September 30, 2017 based on a weighted average cost per share of $56.90 over the term of the May 2017 ASR Agreement. Additionally, during the nine months ended September 30, 2017 , the Company repurchased a total of 513,880 shares of common stock in the open market at a weighted average cost per share of $52.90 from existing stockholders. The Company accounts for treasury stock under the cost method based on the cost of the shares on the dates of repurchase and any direct costs incurred. During the nine months ended September 30, 2017 , the Company retired 2,271,448 shares of treasury stock repurchased under the May 2017 ASR Agreement and in the open market. The repurchase and retirement of these shares of treasury stock resulted in a decrease in additional paid-in capital of $18.9 million and an increase in accumulated deficit of $108.3 million . (b) Equity incentive plans During the nine months ended September 30, 2017 , the Company granted stock options to purchase 1,181,777 shares of common stock and 90,342 restricted stock units (“RSUs”) to certain employees and members of our board of directors. The stock options generally vest in equal annual amounts over a four -year period subsequent to the grant date, and have a maximum contractual term of seven years. The stock options were granted with a weighted average exercise price of $55.04 per share and have a weighted average grant-date fair value of $9.87 per share. The RSUs granted to employees and members of our board of directors vest in equal annual amounts over a three -year period and a one -year period, respectively, subsequent to the grant date and have a weighted average grant-date fair value of $52.41 per share. In addition, the Company granted 84,705 performance stock units (“PSUs”) to certain employees during the nine months ended September 30, 2017 . These PSUs are generally eligible to cliff-vest approximately three years from the grant date. Of the total PSUs granted, 37,027 PSUs are subject to a service condition and a market vesting condition linked to the level of total shareholder return received by the Company’s shareholders during the performance period measured against the companies in the S&P 500 Composite Index (“TSR PSUs”). The remaining 47,678 PSUs granted are subject to a service condition and a performance vesting condition based on the level of adjusted operating income growth achieved over the performance period (“AOI PSUs”). The maximum vesting percentage that could be realized for each of the TSR PSUs and the AOI PSUs is 200% based on the level of performance achieved for the respective awards. All of the PSUs are also subject to a one -year post-vesting holding period. The TSR PSUs were valued based on a Monte Carlo simulation model to reflect the impact of the total shareholder return market condition, resulting in a weighted average grant-date fair value of $67.52 per share. The probability of satisfying a market condition is considered in the estimation of the grant-date fair value for TSR PSUs and the compensation cost is not reversed if the market condition is not achieved, provided the requisite service has been provided. The AOI PSUs have a weighted average grant-date fair value of $52.44 per share. Total compensation cost for the AOI PSUs is determined based on the most likely outcome of the performance condition and the number of awards expected to vest based on the outcome. Total compensation expense related to all share-based awards was $3.6 million and $4.2 million for the three months ended September 30, 2017 and September 24, 2016 , respectively, and $10.9 million and $12.5 million for the nine months ended September 30, 2017 and September 24, 2016 , respectively, and is included in general and administrative expenses, net in the consolidated statements of operations. (c) Accumulated other comprehensive loss The changes in the components of accumulated other comprehensive loss were as follows (in thousands): Effect of foreign currency translation Unrealized gains on interest rate swaps Other Accumulated other comprehensive gain (loss) Balance as of December 31, 2016 $ (23,019 ) 1,144 (2,109 ) (23,984 ) Other comprehensive income (loss), net 5,309 (955 ) 677 5,031 Balance as of September 30, 2017 $ (17,710 ) 189 (1,432 ) (18,953 ) (d) Dividends The Company paid a quarterly dividend of $0.3225 per share of common stock on March 22, 2017 , June 14, 2017 , and September 6, 2017 totaling approximately $29.6 million , $29.2 million , and $29.1 million respectively. On October 26, 2017 , the Company announced that its board of directors approved the next quarterly dividend of $0.3225 per share of common stock payable December 6, 2017 to shareholders of record as of the close of business on November 27, 2017 . |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per share The computation of basic and diluted earnings per common share is as follows (in thousands, except for share and per share data): Three months ended Nine months ended September 30, September 24, September 30, September 24, Net income—basic and diluted $ 52,246 52,712 155,417 139,456 Weighted average number of common shares: Common—basic 90,290,361 91,621,553 91,051,458 91,603,653 Common—diluted 91,433,076 92,565,695 92,386,611 92,545,292 Earnings per common share: Common—basic $ 0.58 0.58 1.71 1.52 Common—diluted 0.57 0.57 1.68 1.51 The weighted average number of common shares in the common diluted earnings per share calculation includes the dilutive effect of 1,142,715 and 944,142 equity awards for the three months ended September 30, 2017 and September 24, 2016 , respectively, and includes the dilutive effect of 1,335,153 and 941,639 equity awards for the nine months ended September 30, 2017 and September 24, 2016 , respectively, using the treasury stock method. The weighted average number of common shares in the common diluted earnings per share calculation for all periods excludes all contingently issuable equity awards for which the contingent vesting criteria were not yet met as of the fiscal period end. As of September 30, 2017 and September 24, 2016 , there were 150,000 restricted shares that were contingently issuable and for which the contingent vesting criteria were not yet met as of the fiscal period end. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation excludes 1,315,258 and 4,048,878 equity awards for the three months ended September 30, 2017 and September 24, 2016 , respectively, and 1,524,739 and 4,257,237 equity awards for the nine months ended September 30, 2017 and September 24, 2016 , respectively, as they would be antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and contingencies (a) S upply chain guarantees The Company has various supply chain agreements that provide for purchase commitments, the majority of which result in the Company being contingently liable upon early termination of the agreement. As of September 30, 2017 and December 31, 2016 , the Company was contingently liable under such supply chain agreements for approximately $118.0 million and $136.2 million , respectively. For certain supply chain commitments, as product is purchased by the Company’s franchisees over the term of the agreement, the amount of the guarantee is reduced. The Company assesses the risk of performing under each of these guarantees on a quarterly basis, and, based on various factors including internal forecasts, prior history, and ability to extend contract terms, we accrued an immaterial amount of reserves related to supply chain commitments as of September 30, 2017 and December 31, 2016 . (b) Letters of credit As of each of September 30, 2017 and December 31, 2016 , the Company had standby letters of credit outstanding for a total of $25.9 million . There were no amounts drawn down on these letters of credit. (c) Legal matters The Company is engaged in several matters of litigation arising in the ordinary course of its business as a franchisor. Such matters include disputes related to compliance with the terms of franchise and development agreements, including claims or threats of claims of breach of contract, negligence, and other alleged violations by the Company. As of September 30, 2017 and December 31, 2016 , $6.3 million and $5.6 million , respectively, was included in other current liabilities in the consolidated balance sheets to reflect the Company’s estimate of the probable losses incurred in connection with all outstanding litigation. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-party transactions (a) Advertising funds As of September 30, 2017 and December 31, 2016 , the Company had a net payable of $62 thousand and $11.9 million , respectively, to the various advertising funds. To cover administrative expenses of the advertising funds, the Company charges each advertising fund a management fee for items such as facilities, accounting services, information technology, data processing, product development, legal, administrative support services, and other operating expenses, as well as share-based compensation expense for employees that provide services directly to the advertising funds. Management fees totaled $2.8 million and $2.4 million for the three months ended September 30, 2017 and September 24, 2016 , respectively, and $8.5 million and $7.3 million for the nine months ended September 30, 2017 and September 24, 2016 , respectively. Such management fees are included in the consolidated statements of operations as a reduction in general and administrative expenses, net. The Company made discretionary contributions to certain advertising funds for the purpose of supplementing national and regional advertising in certain markets of $33 thousand and $1.1 million during the three months ended September 30, 2017 and September 24, 2016 , respectively, and $2.3 million and $1.1 million during the nine months ended September 30, 2017 and September 24, 2016 , respectively. Additionally, the Company made contributions to the advertising funds based on retail sales at company-operated restaurants of $80 thousand and $594 thousand during the three and nine months ended September 24, 2016 , respectively, which are included in company-operated restaurant expenses in the consolidated statements of operations. No such contributions were made during the three and nine months ended September 30, 2017 , as the Company did not have any company-operated restaurants during these periods. The Company also funded advertising fund initiatives of $700 thousand and $762 thousand during the three months ended September 30, 2017 and September 24, 2016 , respectively, and $1.9 million and $1.8 million during the nine months ended September 30, 2017 and September 24, 2016 , respectively, which were contributed from the gift card breakage liability included within other current liabilities in the consolidated balance sheets (see note 5 ). (b) Equity method investments The Company recognized royalty income from its equity method investees as follows (in thousands): Three months ended Nine months ended September 30, September 24, September 30, September 24, B-R 31 Ice Cream Company., Ltd. $ 588 686 1,464 1,577 BR-Korea Co., Ltd. 1,122 1,192 3,174 3,053 $ 1,710 1,878 4,638 4,630 As of each of September 30, 2017 and December 31, 2016 , the Company had $1.1 million of royalties receivable from its equity method investees, which were recorded in accounts receivable, net of allowance for doubtful accounts, in the consolidated balance sheets. The Company made net payments to its equity method investees totaling approximately $958 thousand and $713 thousand during the three months ended September 30, 2017 and September 24, 2016 , respectively, and $2.8 million and $2.3 million during the nine months ended September 30, 2017 and September 24, 2016 , respectively, primarily for the purchase of ice cream products. The Company recognized $702 thousand and $790 thousand during the three months ended September 30, 2017 and September 24, 2016 , respectively, and $2.7 million and $2.5 million during the nine months ended September 30, 2017 and September 24, 2016 , respectively, in the consolidated statements of operations from the sale of ice cream and other products to Palm Oasis Ventures Pty. Ltd. (“Australia JV”). As of September 30, 2017 and December 31, 2016 , the Company had $2.4 million and $2.6 million , respectively, of net receivables from the Australia JV, consisting of accounts and notes receivable, net of current liabilities. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes In conjunction with the anticipated closing of the debt refinancing transaction and related issuance of the 2017 Notes (see note 4 ), management assessed the realizability of its unused foreign tax credits by considering whether it is more likely than not that some portion or all of the unused foreign tax credits will not be realized. The ultimate realization of these unused foreign tax credits is dependent upon the generation of future taxable income available to apply such foreign tax credits prior to their expiration in fiscal years 2021 through 2026. In making this assessment, management considered all relevant factors, including projected future taxable income and tax planning strategies. Based upon the level of historical and projected future taxable income over the periods prior to expiration, including the expected incremental interest expense from the 2017 Notes, management does not believe it is more likely than not that the Company will realize the benefit of the unused foreign tax credits. As such, a valuation allowance of $8.9 million was recorded to the provision for income taxes for the three and nine months ended September 30, 2017. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | |
Unaudited Financial Statements | Unaudited consolidated financial statements The consolidated balance sheet as of September 30, 2017 , the consolidated statements of operations and comprehensive income for the three and nine months ended September 30, 2017 and September 24, 2016 , and the consolidated statements of cash flows for the nine months ended September 30, 2017 and September 24, 2016 are unaudited. The accompanying unaudited consolidated financial statements include the accounts of DBGI and its consolidated subsidiaries and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. All significant transactions and balances between subsidiaries and affiliates have been eliminated in consolidation. In the opinion of management, all adjustments necessary for a fair presentation of such financial statements in accordance with U.S. GAAP have been recorded. Such adjustments consisted only of normal recurring items. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 31, 2016 , included in the Company’s Annual Report on Form 10-K. |
Fiscal Year | Fiscal year The Company operates and reports financial information on a 52 - or 53 -week year on a 13 -week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within the three- and nine-month periods ended September 30, 2017 and September 24, 2016 reflect the results of operations for the 13-week and 39-week periods ended on those dates, respectively. Operating results for the three- and nine-month periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 30, 2017 . |
Restricted Cash | Cash, cash equivalents, and restricted cash In accordance with the Company’s securitized financing facility, certain cash accounts have been established in the name of Citibank, N.A. (the “Trustee”) for the benefit of the Trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents (i) cash collections held by the Trustee, (ii) interest, principal, and commitment fee reserves held by the Trustee related to the Company’s Notes (see note 4 ), and (iii) real estate reserves used to pay real estate obligations. Pursuant to new accounting guidance for fiscal year 2017, restricted cash is combined with cash and cash equivalents when reconciling the beginning and end of period balances in the consolidated statements of cash flows (see note 2 (f)). Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of September 30, 2017 and December 31, 2016 were as follows (in thousands): September 30, December 31, Cash and cash equivalents $ 266,981 361,425 Restricted cash 76,141 69,746 Restricted cash, included in Other assets 610 661 Total cash, cash equivalents, and restricted cash $ 343,732 431,832 |
Fair Value of Financial Instruments | Fair value of financial instruments Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 10,389 10,389 9,271 9,271 Total assets $ 10,389 10,389 9,271 9,271 Liabilities: Deferred compensation liabilities $ 12,851 12,851 11,126 11,126 Total liabilities $ 12,851 12,851 11,126 11,126 The deferred compensation liabilities relate to the Dunkin’ Brands, Inc. non-qualified deferred compensation plans (“NQDC Plans”), which allow for pre-tax deferral of compensation for certain qualifying employees and directors. Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to hypothetical investments. The Company holds company-owned life insurance policies to partially offset the Company’s liabilities under the NQDC Plans. The changes in the fair value of any company-owned life insurance policies are derived using determinable cash surrender value. As such, the company-owned life insurance policies are classified within Level 2, as defined under U.S. GAAP. The carrying value and estimated fair value of long-term debt as of September 30, 2017 and December 31, 2016 were as follows (in thousands): September 30, 2017 December 31, 2016 Carrying value Estimated fair value Carrying value Estimated fair value Financial liabilities Long-term debt $ 2,413,091 2,474,291 2,426,998 2,460,544 The estimated fair value of our long-term debt is estimated primarily based on current market rates for debt with similar terms and remaining maturities or current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, our long-term debt is classified within Level 2, as defined under U.S. GAAP. |
Concentration of Credit Risk | Concentration of credit risk The Company is subject to credit risk through its accounts receivable consisting primarily of amounts due from franchisees and licensees for franchise fees, royalty income, and sales of ice cream and other products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. As of September 30, 2017 and December 31, 2016 , one master licensee, including its majority-owned subsidiaries, accounted for approximately 18% and 15% , respectively, of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for each of the three and nine months ended September 30, 2017 and September 24, 2016 . Additionally, the Company engages various third parties to manufacture and/or distribute certain Dunkin’ Donuts and Baskin-Robbins products under licensing arrangements. As of September 30, 2017 , one of these third parties accounted for approximately 13% of total accounts and notes receivable. No individual third party accounted for more than 10% of total accounts and notes receivable as of December 31, 2016 . |
Recent Accounting Pronouncements | Recent accounting pronouncements Recently adopted accounting pronouncements In January 2017, the Financial Accounting Standards Board (the “FASB”) issued new guidance for goodwill impairment which requires only a single-step quantitative test to identify and measure impairment and record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The option to perform a qualitative assessment first for a reporting unit to determine if a quantitative impairment test is necessary does not change under the new guidance. The Company early adopted this guidance in fiscal year 2017. The adoption of this guidance had no impact on the Company’s consolidated financial statements, and did not impact our annual goodwill impairment test performed as of the first day of the third quarter of fiscal year 2017. In November 2016, the FASB issued new guidance addressing diversity in practice that exists in the classification and presentation of changes in restricted cash in the statements of cash flows. The Company early adopted this guidance retrospectively in fiscal year 2017. Accordingly, changes in restricted cash that have historically been included within operating and financing activities have been eliminated, and restricted cash is combined with cash and cash equivalents when reconciling the beginning and end of period balances for all periods presented. The adoption of this guidance primarily resulted in a decrease of $1.1 million in net cash provided by operating activities for the nine months ended September 24, 2016 and had no impact on the consolidated statements of operations and balance sheets. In March 2016, the FASB issued new guidance for employee share-based compensation which simplifies several aspects of accounting for share-based payment transactions, including excess tax benefits, forfeiture estimates, statutory tax withholding requirements, and classification in the statements of cash flows. The Company adopted this guidance in fiscal year 2017, which had the following impact on the consolidated financial statements: • On a prospective basis, as required, the Company recorded excess tax benefits of $524 thousand and $7.3 million to the provision for income taxes in the consolidated statements of operations for the three and nine months ended September 30, 2017 , respectively, instead of additional paid-in capital in the consolidated balance sheets. As a result, net income increased $524 thousand and $7.3 million , for the three and nine months ended September 30, 2017 , respectively, and basic and diluted earnings per share increased $0.01 and $0.08 for the three and nine months ended September 30, 2017 , respectively. • Excess tax benefits are presented as operating cash inflows instead of financing cash inflows in the consolidated statements of cash flows, which the Company elected to apply on a retrospective basis. As a result, the Company classified $7.3 million and $2.0 million for the nine months ended September 30, 2017 and September 24, 2016 , respectively, of excess tax benefits as operating cash inflows included within the change in prepaid income taxes, net in the consolidated statements of cash flows. The retrospective reclassification resulted in increases in cash provided by operating activities and cash used in financing activities of $2.0 million for the nine months ended September 24, 2016 . • The Company prospectively excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share under the treasury stock method, which did not have a material impact on diluted earnings per share for the three and nine months ended September 30, 2017. Recent accounting pronouncements not yet adopted Leases In February 2016, the FASB issued new guidance for lease accounting, which replaces existing lease accounting guidance. The new guidance aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This guidance is effective for the Company in fiscal year 2019 with early adoption permitted, and modified retrospective application is required. The Company expects to adopt this new guidance in fiscal year 2019 and is currently evaluating the impact the adoption of this new guidance will have on the Company’s consolidated financial statements and related disclosures. The Company expects that substantially all of its operating lease commitments will be subject to the new guidance and will be recognized as operating lease liabilities and right-of-use assets upon adoption, thereby having a material impact to its consolidated balance sheet. Revenue from Contracts with Customers In May 2014, the FASB issued new guidance for revenue recognition related to contracts with customers, except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. The new guidance provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new guidance is effective for the Company in fiscal year 2018. The Company intends to adopt this new guidance in fiscal year 2018 using the full retrospective transition method, which will result in restating each prior reporting period presented, fiscal years 2016 and 2017, in the year of adoption. Additionally, a cumulative effect adjustment will be recorded to the opening balance of accumulated deficit as of the first day of fiscal year 2016, the earliest period presented. Based on the expected impacts described below, the Company expects such cumulative effect adjustment to be material to the opening balance of accumulated deficit. The Company expects the adoption of the new guidance to change the timing of recognition of initial franchise fees, including master license and territory fees for our international business, and renewal fees. Currently, these fees are generally recognized upfront upon either opening of the respective restaurant or when a renewal agreement becomes effective. The new guidance will generally require these fees to be recognized over the term of the related franchise license for the respective restaurant, which we expect will result in a material impact to revenue recognized for initial franchise fees and renewal fees. The Company does not expect this new guidance to materially impact the recognition of royalty income. Additionally, rental income is outside the scope of this new guidance, and therefore will not be impacted. The Company also expects the adoption of this new guidance to change the reporting of advertising fund contributions from franchisees and the related advertising fund expenditures, which are not currently included in the consolidated statements of operations. The Company expects the new guidance to require these advertising fund contributions and expenditures to be reported on a gross basis in the consolidated statements of operations. For the fiscal year ended December 31, 2016, franchisee contributions to the U.S. advertising funds were $430.3 million , and therefore we expect this change to have a material impact to our total revenues and expenses. However, we expect such contributions and expenditures to be largely offsetting and therefore do not expect a significant impact on our reported net income. Though the majority of the assessment phase is complete, the Company continues to evaluate the impact the adoption of this new guidance will have on these and other revenue transactions, in addition to the impact on accounting policies and related disclosures. Additionally, the Company is in the process of implementing new accounting systems, business processes, and internal controls related to revenue recognition to assist in the application of the new guidance. |
Subsequent Events | Subsequent events Subsequent events have been evaluated through the date these consolidated financial statements were filed. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | |
Schedule of cash, cash equivalents and restricted cash [Table Text Block] | Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of September 30, 2017 and December 31, 2016 were as follows (in thousands): September 30, December 31, Cash and cash equivalents $ 266,981 361,425 Restricted cash 76,141 69,746 Restricted cash, included in Other assets 610 661 Total cash, cash equivalents, and restricted cash $ 343,732 431,832 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 10,389 10,389 9,271 9,271 Total assets $ 10,389 10,389 9,271 9,271 Liabilities: Deferred compensation liabilities $ 12,851 12,851 11,126 11,126 Total liabilities $ 12,851 12,851 11,126 11,126 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying value and estimated fair value of long-term debt as of September 30, 2017 and December 31, 2016 were as follows (in thousands): September 30, 2017 December 31, 2016 Carrying value Estimated fair value Carrying value Estimated fair value Financial liabilities Long-term debt $ 2,413,091 2,474,291 2,426,998 2,460,544 |
Franchise Fees and Royalty In21
Franchise Fees and Royalty Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Franchise Fees And Royalty Income [Abstract] | |
Schedule Of Franchise Revenue Table | Franchise fees and royalty income consisted of the following (in thousands): Three months ended Nine months ended September 30, September 24, September 30, September 24, Royalty income $ 133,740 127,986 387,634 368,190 Initial franchise fees and renewal income 18,069 10,653 39,310 31,427 Total franchise fees and royalty income $ 151,809 138,639 426,944 399,617 |
Changes in Franchised and Company-Owned Points of Distribution | The changes in franchised and company-operated points of distribution were as follows: Three months ended Nine months ended September 30, September 24, September 30, September 24, Systemwide points of distribution: Franchised points of distribution in operation—beginning of period 20,242 19,640 20,080 19,308 Franchised points of distribution—opened 326 310 928 988 Franchised points of distribution—closed (189 ) (195 ) (629 ) (563 ) Net transfers from company-operated points of distribution — 23 — 45 Franchised points of distribution in operation—end of period 20,379 19,778 20,379 19,778 Company-operated points of distribution—end of period — 6 — 6 Total systemwide points of distribution—end of period 20,379 19,784 20,379 19,784 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other current liabilities consisted of the following (in thousands): September 30, December 31, Gift card/certificate liability $ 142,020 207,628 Gift card breakage liability 2,668 13,301 Accrued payroll and benefits 29,120 25,071 Accrued legal liabilities (see note 9 (c)) 6,342 5,555 Accrued interest 10,621 10,702 Accrued professional costs 3,012 2,170 Franchisee profit-sharing liability 8,497 11,083 Other 28,207 22,756 Total other current liabilities $ 230,487 298,266 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Revenues by Segment | Revenues by segment were as follows (in thousands): Revenues Three months ended Nine months ended September 30, September 24, September 30, September 24, Dunkin’ Donuts U.S. $ 165,106 152,425 464,148 444,898 Dunkin’ Donuts International 5,157 4,449 14,947 16,917 Baskin-Robbins U.S. 13,751 13,781 38,645 38,080 Baskin-Robbins International 28,810 27,904 88,876 89,578 Total reportable segment revenues 212,824 198,559 606,616 589,473 Other 11,344 8,540 26,746 23,711 Total revenues $ 224,168 207,099 633,362 613,184 |
Segment Profit by Segment | Segment profit by segment was as follows (in thousands): Segment profit Three months ended Nine months ended September 30, September 24, September 30, September 24, Dunkin’ Donuts U.S. $ 129,719 119,434 360,241 335,963 Dunkin’ Donuts International 1,439 705 4,782 6,438 Baskin-Robbins U.S. 10,466 11,085 28,773 29,123 Baskin-Robbins International 11,420 11,154 31,900 30,617 Total reportable segments 153,044 142,378 425,696 402,141 Corporate (25,134 ) (27,614 ) (82,176 ) (84,477 ) Interest expense, net (23,812 ) (24,442 ) (72,822 ) (74,022 ) Amortization of other intangible assets (5,341 ) (5,397 ) (16,001 ) (16,726 ) Long-lived asset impairment charges (536 ) (7 ) (643 ) (104 ) Other income (losses), net 155 (124 ) 370 (596 ) Income before income taxes $ 98,376 84,794 254,424 226,216 |
Equity in Net Income of Joint Ventures Reportable Segment | Net income of equity method investments by reportable segment was as follows (in thousands): Net income (loss) of equity method investments Three months ended Nine months ended September 30, September 24, September 30, September 24, Dunkin’ Donuts International $ 9 351 (68 ) 829 Baskin-Robbins International 4,492 4,266 9,468 8,644 Total reportable segments 4,501 4,617 9,400 9,473 Other 965 850 3,212 2,675 Total net income of equity method investments $ 5,466 5,467 12,612 12,148 |
Stockholders_ Equity (Deficit24
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shareholders' Equity | The changes in total stockholders’ deficit were as follows (in thousands): Total stockholders’ deficit Balance as of December 31, 2016 $ (163,258 ) Net income 155,417 Other comprehensive income 5,031 Dividends paid on common stock (87,911 ) Exercise of stock options 33,267 Repurchases of common stock (127,186 ) Share-based compensation expense 10,896 Other, net (344 ) Balance as of September 30, 2017 $ (174,088 ) |
Changes in Components of Accumulated Other Comprehensive Income | The changes in the components of accumulated other comprehensive loss were as follows (in thousands): Effect of foreign currency translation Unrealized gains on interest rate swaps Other Accumulated other comprehensive gain (loss) Balance as of December 31, 2016 $ (23,019 ) 1,144 (2,109 ) (23,984 ) Other comprehensive income (loss), net 5,309 (955 ) 677 5,031 Balance as of September 30, 2017 $ (17,710 ) 189 (1,432 ) (18,953 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows (in thousands, except for share and per share data): Three months ended Nine months ended September 30, September 24, September 30, September 24, Net income—basic and diluted $ 52,246 52,712 155,417 139,456 Weighted average number of common shares: Common—basic 90,290,361 91,621,553 91,051,458 91,603,653 Common—diluted 91,433,076 92,565,695 92,386,611 92,545,292 Earnings per common share: Common—basic $ 0.58 0.58 1.71 1.52 Common—diluted 0.57 0.57 1.68 1.51 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | The Company recognized royalty income from its equity method investees as follows (in thousands): Three months ended Nine months ended September 30, September 24, September 30, September 24, B-R 31 Ice Cream Company., Ltd. $ 588 686 1,464 1,577 BR-Korea Co., Ltd. 1,122 1,192 3,174 3,053 $ 1,710 1,878 4,638 4,630 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017USD ($)customer | Sep. 24, 2016 | Sep. 30, 2017USD ($)customer | Dec. 31, 2016USD ($)customer | |
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Financial reporting and operating period, quarter | 91 days | 91 days | ||
Carrying Value and Estimated Fair Value Of Long Term Debt [Abstract] | ||||
Term loans, Carrying Value | $ 2,413,091 | $ 2,413,091 | $ 2,426,998 | |
Term loans, Estimated fair value | $ 2,474,291 | $ 2,474,291 | $ 2,460,544 | |
Minimum | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Financial reporting and operating period, year | 364 days | |||
Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Percentage of receivable from one master licensee account | 18.00% | 18.00% | 15.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Concentration Risk, Customer | 1 | |||
Customer Concentration Risk [Member] | Sales [Member] | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Concentration Risk, Customer | 1 | |||
Concentration risk, number of customers | customer | 0 | 0 | ||
Supplier Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Percentage of receivable from one master licensee account | 13.00% | 13.00% | ||
Supplier Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Concentration Risk, Customer | 1 | |||
Supplier Concentration Risk [Member] | Sales [Member] | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Concentration risk, number of customers | customer | 0 | |||
Accounting Standards Update 2016-18 | ||||
Summary of Significant Accounting Policies, Narrative [Line Items] | ||||
Reduction in restricted cash for operating activities | $ 1,100 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Schedule of cash, cash equivalents, and restricted cash (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Dec. 26, 2015 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 266,981 | $ 361,425 | ||
Restricted cash | 76,141 | 69,746 | ||
Restricted cash, included in Other assets | 610 | 661 | ||
Total cash, cash equivalents, and restricted cash | $ 343,732 | $ 431,832 | $ 341,672 | $ 333,115 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | $ 10,389 | $ 9,271 |
Liabilities | 12,851 | 11,126 |
Company-owned life insurance | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 10,389 | 9,271 |
Deferred compensation liabilities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Liabilities | 12,851 | 11,126 |
Significant other observable inputs (Level 2) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 10,389 | 9,271 |
Liabilities | 12,851 | 11,126 |
Significant other observable inputs (Level 2) | Company-owned life insurance | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 10,389 | 9,271 |
Significant other observable inputs (Level 2) | Deferred compensation liabilities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Liabilities | $ 12,851 | $ 11,126 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Change in diluted earnings per share (in dollars per share) | $ 0.57 | $ 0.57 | $ 1.68 | $ 1.51 |
Franchisee contributions, U.S. advertising funds | $ 151,809 | $ 138,639 | $ 426,944 | $ 399,617 |
Accounting Standards Update 2016-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 524 | $ 7,300 | $ 2,000 | |
Change in diluted earnings per share (in dollars per share) | $ 0.01 | $ 0.08 | ||
FASB new guidance, lease accounting | Pro Forma | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Franchisee contributions, U.S. advertising funds | $ 430,300 |
Franchise Fees and Royalty In31
Franchise Fees and Royalty Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Disclosure Franchise Fees And Royalty Income [Abstract] | ||||
Royalty income | $ 133,740 | $ 127,986 | $ 387,634 | $ 368,190 |
Initial franchise fees and renewal income | 18,069 | 10,653 | 39,310 | 31,427 |
Total franchise fees and royalty income | $ 151,809 | $ 138,639 | $ 426,944 | $ 399,617 |
Franchise Fees and Royalty In32
Franchise Fees and Royalty Income - Changes in Franchised and Company-Owned Points of Distribution (Detail) - distributor | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Number of Franchises [Roll Forward] | ||||
Franchised points of distribution in operation—beginning of period | 20,242 | 19,640 | 20,080 | 19,308 |
Franchised points of distribution—opened | 326 | 310 | 928 | 988 |
Franchised points of distribution—closed | (189) | (195) | (629) | (563) |
Net transfers from company-operated points of distribution | 0 | 23 | 0 | 45 |
Franchised points of distribution in operation—end of period | 20,379 | 19,778 | 20,379 | 19,778 |
Company-operated points of distribution—end of period | 0 | 6 | 0 | 6 |
Total systemwide points of distribution—end of period | 20,379 | 19,784 | 20,379 | 19,784 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Oct. 23, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 26, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Leverage Ratio Maximum, No Excess Cash Flow Payment | 5 | |||
Long-term debt | $ 2,413,091,000 | $ 2,426,998,000 | ||
Other debt extinguishment and refinancing expense | 41,300,000 | |||
Standby letters of credit | 25,900,000 | 25,900,000 | ||
Amounts drawn on letters of credit | $ 0 | $ 0 | ||
Variable Funding Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 1.50% | |||
Variable Funding Notes [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate components | 1.50% | |||
A-2-I [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.262% | |||
Debt Instrument, Face Amount | $ 750,000,000 | |||
Repayment of credit facility per calendar year | $ 17,500,000 | |||
Long-term debt | $ 731,300,000 | |||
Effective interest rate | 3.50% | |||
A-2-II [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.98% | |||
Debt Instrument, Face Amount | $ 1,750,000,000 | |||
Long-term debt | $ 1,710,000,000 | |||
Effective interest rate | 4.30% | |||
Three Point Six Two Nine Fixed Rate Senior Secured Notes, 2017 Class A-2-I [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayment of credit facility per calendar year | $ 6,000,000 | |||
Four Point Zero Three Zero Percent Fixed Rate Senior Secured Notes, 2017 Class A-2-II [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayment of credit facility per calendar year | $ 8,000,000 | |||
Variable Funding Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 100,000,000 | |||
Variable Funding Notes [Member] | Minimum | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||
Variable Funding Notes [Member] | Maximum | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 1.00% | |||
Subsequent Event [Member] | Three Point Six Two Nine Fixed Rate Senior Secured Notes, 2017 Class A-2-I [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.629% | |||
Debt Instrument, Face Amount | $ 600,000,000 | |||
Subsequent Event [Member] | Four Point Zero Three Zero Percent Fixed Rate Senior Secured Notes, 2017 Class A-2-II [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.03% | |||
Debt Instrument, Face Amount | $ 800,000,000 | |||
Subsequent Event [Member] | Variable Funding Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 150,000,000 |
Other Current Liabilities (Deta
Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Other Liabilities, Current [Abstract] | ||
Gift card/certificate liability | $ 142,020 | $ 207,628 |
Gift card breakage liability | 2,668 | 13,301 |
Accrued payroll and benefits | 29,120 | 25,071 |
Accrued legal liabilities (see note 9(c)) | 6,342 | 5,555 |
Accrued interest | 10,621 | 10,702 |
Accrued professional costs | 3,012 | 2,170 |
Franchisee profit-sharing liability | 8,497 | 11,083 |
Other | 28,207 | 22,756 |
Total other current liabilities | $ 230,487 | $ 298,266 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Information - Revenues
Segment Information - Revenues by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 224,168 | $ 207,099 | $ 633,362 | $ 613,184 |
Other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 11,344 | 8,540 | 26,746 | 23,711 |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 212,824 | 198,559 | 606,616 | 589,473 |
Operating Segments | Dunkin' Donuts | United States | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 165,106 | 152,425 | 464,148 | 444,898 |
Operating Segments | Dunkin' Donuts | International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 5,157 | 4,449 | 14,947 | 16,917 |
Operating Segments | Baskin-Robbins | United States | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | 13,751 | 13,781 | 38,645 | 38,080 |
Operating Segments | Baskin-Robbins | International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenues | $ 28,810 | $ 27,904 | $ 88,876 | $ 89,578 |
Segment Information - Segment P
Segment Information - Segment Profit by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Corporate | $ (25,134) | $ (27,614) | $ (82,176) | $ (84,477) |
Interest expense, net | (23,812) | (24,442) | (72,822) | (74,022) |
Amortization of other intangible assets | (5,341) | (5,397) | (16,001) | (16,726) |
Long-lived asset impairment charges | (536) | (7) | (643) | (104) |
Other income (losses), net | 155 | (124) | 370 | (596) |
Income before income taxes | 98,376 | 84,794 | 254,424 | 226,216 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 153,044 | 142,378 | 425,696 | 402,141 |
Operating Segments | Dunkin' Donuts | United States | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 129,719 | 119,434 | 360,241 | 335,963 |
Operating Segments | Dunkin' Donuts | International | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 1,439 | 705 | 4,782 | 6,438 |
Operating Segments | Baskin-Robbins | United States | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | 10,466 | 11,085 | 28,773 | 29,123 |
Operating Segments | Baskin-Robbins | International | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Reportable segment profit | $ 11,420 | $ 11,154 | $ 31,900 | $ 30,617 |
Segment Information - Equity in
Segment Information - Equity in Net Income of Joint Ventures Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | $ 5,466 | $ 5,467 | $ 12,612 | $ 12,148 |
Other | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | 965 | 850 | 3,212 | 2,675 |
Operating Segments | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | 4,501 | 4,617 | 9,400 | 9,473 |
Operating Segments | Dunkin' Donuts | International | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | 9 | 351 | (68) | 829 |
Operating Segments | Baskin-Robbins | International | ||||
Segment Reporting Disclosure [Line Items] | ||||
Net income of equity method investments, excluding impairment | $ 4,492 | $ 4,266 | $ 9,468 | $ 8,644 |
Stockholders_ Equity (Deficit39
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Sep. 24, 2016 | Jul. 01, 2017 | Sep. 30, 2017 | Sep. 24, 2016 | |
Class of Stock [Line Items] | ||||||||
Payments for repurchase of common stock | $ 127,186,000 | $ 30,000,000 | ||||||
Treasury stock, shares, acquired | 513,880 | |||||||
Treasury stock acquired, average cost per share | $ 52.90 | |||||||
Dividend per share of common stock paid (in usd per share) | $ 0.3225 | $ 0.3225 | $ 0.3225 | |||||
Dividends paid on common stock | $ 29,100,000 | $ 29,200,000 | $ 29,600,000 | $ 87,911,000 | $ 82,326,000 | |||
Dividend per share of common stock declared (in usd per share) | $ 0.3225 | $ 0.30 | $ 0.9675 | $ 0.90 | ||||
Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Dividend per share of common stock declared (in usd per share) | $ 0.3225 | |||||||
2011 Plan | ||||||||
Class of Stock [Line Items] | ||||||||
Options granted | 1,181,777 | |||||||
Restricted stock units granted (in shares) | 37,027 | |||||||
Grant price (in usd per share) | $ 55.04 | |||||||
Options, grant date fair value (in usd per share) | 9.87 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 67.52 | |||||||
Compensation expense related to share-based awards | $ 3,600,000 | $ 4,200,000 | $ 10,900,000 | $ 12,500,000 | ||||
2011 Plan | Employee Stock Option | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensations, vesting period | 4 years | |||||||
Options, maximum contractual term | 7 years | |||||||
2011 Plan | Restricted Stock Units (RSUs) [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted stock units granted (in shares) | 90,342 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 52.41 | |||||||
2011 Plan | Phantom Share Units (PSUs) [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted stock units granted (in shares) | 84,705 | |||||||
Share-based compensations, vesting period | 3 years | |||||||
2011 Plan | Performance Shares [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted stock units granted (in shares) | 47,678 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 52.44 | |||||||
Maximum vesting percentage | 200.00% | |||||||
Post award vesting holding period | 1 year | |||||||
May 2017 Accelerated Share Repurchase Agreement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Payments for repurchase of common stock | $ 100,000,000 | |||||||
Treasury stock, shares, acquired | 1,757,568 | |||||||
Treasury stock acquired, average cost per share | $ 56.90 | |||||||
Treasury Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Treasury stock, shares, retired | 2,271,448 | |||||||
Additional Paid-in Capital [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stockholders' equity, period increase (decrease) | $ 18,900,000 | |||||||
Accumulated Deficit [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stockholders' equity, period increase (decrease) | $ 108,300,000 | |||||||
Employee [Member] | 2011 Plan | Restricted Stock Units (RSUs) [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensations, vesting period | 3 years | |||||||
Board of Directors [Member] | 2011 Plan | Restricted Stock Units (RSUs) [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensations, vesting period | 1 year |
Stockholders_ Equity (Deficit40
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests - Changes in Total Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance as of December 31, 2016 | $ (163,258) | |||
Net income | 155,417 | |||
Other comprehensive income | $ (957) | $ 5,815 | 5,031 | $ 7,545 |
Dividends paid on common stock | (87,911) | |||
Exercise of stock options | 33,267 | |||
Repurchases of common stock | (127,186) | |||
Share-based compensation expense | 10,896 | |||
Other, net | (344) | |||
Balance as of September 30, 2017 | $ (174,088) | $ (174,088) |
Stockholders_ Equity (Deficit41
Stockholders’ Equity (Deficit) and Redeemable Noncontrolling Interests - Changes in Components of Accumulated Other Comprehensive Income (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2016 | $ (23,984) |
Other comprehensive income (loss), net | 5,031 |
Balance as of September 30, 2017 | (18,953) |
Effect of foreign currency translation | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2016 | (23,019) |
Other comprehensive income (loss), net | 5,309 |
Balance as of September 30, 2017 | (17,710) |
Unrealized gains on interest rate swaps | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2016 | 1,144 |
Other comprehensive income (loss), net | (955) |
Balance as of September 30, 2017 | 189 |
Other | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 31, 2016 | (2,109) |
Other comprehensive income (loss), net | 677 |
Balance as of September 30, 2017 | $ (1,432) |
Earnings Per Shares - Additiona
Earnings Per Shares - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities, effect on basic earnings per share, including options and restrictive units | 1,142,715 | 944,142 | 1,335,153 | 941,639 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive security excluded from calculation, restricted stock awards (in shares) | 150,000 | 150,000 | ||
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 1,315,258 | 4,048,878 | 1,524,739 | 4,257,237 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Dunkin' Brands-basic and diluted | $ 52,246 | $ 52,712 | $ 155,417 | $ 139,456 |
Weighted average number of common shares: | ||||
Common-basic (in shares) | 90,290,361 | 91,621,553 | 91,051,458 | 91,603,653 |
Common-diluted (in shares) | 91,433,076 | 92,565,695 | 92,386,611 | 92,545,292 |
Earnings (loss) per common share: | ||||
Common-basic (in dollars per share) | $ 0.58 | $ 0.58 | $ 1.71 | $ 1.52 |
Common-diluted (in dollars per share) | $ 0.57 | $ 0.57 | $ 1.68 | $ 1.51 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Line Items] | ||
Standby letters of credit | $ 25,900,000 | $ 25,900,000 |
Amounts drawn on letters of credit | 0 | 0 |
Contingent liabilities related to legal matters | 6,300,000 | 5,600,000 |
Supply Commitment | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Guarantee obligation, maximum exposure | $ 118,000,000 | $ 136,200,000 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 24, 2016 | Sep. 30, 2017 | Sep. 24, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Net payable of advertising funds | $ 62 | $ 62 | $ 11,900 | ||
Fee for managing advertising funds | 2,800 | $ 2,400 | 8,500 | $ 7,300 | |
Related Party Transaction, Supplemental Advertising Fund Contribution | 33 | 1,100 | 2,300 | 1,100 | |
Advertising funds contribution, company-owned restaurant | 80 | 594 | |||
Advertising funds contribution, prepaid future initiatives | 700 | 762 | 1,900 | 1,800 | |
Royalties receivable from joint ventures | 1,100 | 1,100 | $ 1,100 | ||
B-R 31 Ice Cream Co., Ltd. ("BR Japan") | |||||
Royalty Income | |||||
Royalty received from joint venture | 588 | 686 | 1,464 | 1,577 | |
BR Korea Co., Ltd. ("BR Korea") | |||||
Royalty Income | |||||
Royalty received from joint venture | 1,122 | 1,192 | 3,174 | 3,053 | |
Related Party | |||||
Royalty Income | |||||
Royalty received from joint venture | 1,710 | 1,878 | 4,638 | 4,630 | |
Joint Ventures | |||||
Related Party Transaction [Line Items] | |||||
Payments to joint ventures | 958 | 713 | 2,800 | 2,300 | |
Australia Joint Venture | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 702 | $ 790 | 2,700 | $ 2,500 | |
Ownership percentage | |||||
Due from joint ventures | $ 2,400 | $ 2,400 | $ 2,600 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Tax, valuation allowance | $ 8.9 |