Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DNKN | |
Entity Registrant Name | DUNKIN' BRANDS GROUP, INC. | |
Entity Central Index Key | 1,357,204 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 82,967,712 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 338,461 | $ 1,018,317 |
Restricted cash | 82,605 | 94,047 |
Accounts receivable, net of allowance for doubtful accounts of $4,306 and $4,390 as of March 31, 2018 and December 30, 2017, respectively | 73,927 | 69,517 |
Notes and other receivables, net of allowance for doubtful accounts of $721 and $600 as of March 31, 2018 and December 30, 2017, respectively | 32,409 | 52,332 |
Prepaid income taxes | 28,907 | 21,927 |
Prepaid expenses and other current assets | 59,533 | 48,193 |
Total current assets | 615,842 | 1,304,333 |
Property, equipment, and software, net of accumulated depreciation of $146,346 and $143,319 as of March 31, 2018 and December 30, 2017, respectively | 180,959 | 181,542 |
Equity method investments | 140,944 | 140,615 |
Goodwill | 888,293 | 888,308 |
Other intangible assets, net of accumulated amortization of $254,367 and $250,142 as of March 31, 2018 and December 30, 2017, respectively | 1,351,272 | 1,357,157 |
Other assets | 66,798 | 65,478 |
Total assets | 3,244,108 | 3,937,433 |
Current liabilities: | ||
Current portion of long-term debt | 31,500 | 31,500 |
Capital lease obligations | 613 | 596 |
Accounts payable | 60,851 | 53,417 |
Deferred revenue | 43,935 | 44,876 |
Other current liabilities | 272,391 | 355,110 |
Total current liabilities | 409,290 | 485,499 |
Long-term debt, net | 3,029,232 | 3,035,857 |
Capital lease obligations | 7,016 | 7,180 |
Unfavorable operating leases acquired | 9,402 | 9,780 |
Deferred revenue | 362,125 | 361,458 |
Deferred income taxes, net | 210,090 | 214,345 |
Other long-term liabilities | 77,234 | 77,853 |
Total long-term liabilities | 3,695,099 | 3,706,473 |
Commitments and contingencies (note 9) | ||
Stockholders’ deficit: | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 82,747,841 shares issued and 82,721,064 shares outstanding as of March 31, 2018; 90,404,022 shares issued and 90,377,245 shares outstanding as of December 30, 2017 | 83 | 90 |
Additional paid-in capital | 522,052 | 724,114 |
Treasury stock, at cost; 26,777 shares as of March 31, 2018 and December 30, 2017 | (1,060) | (1,060) |
Accumulated deficit | (1,373,996) | (968,148) |
Accumulated other comprehensive loss | (7,360) | (9,535) |
Total stockholders’ deficit | (860,281) | (254,539) |
Total liabilities and stockholders’ deficit | $ 3,244,108 | $ 3,937,433 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 4,752 | $ 4,778 |
Notes and other receivables, allowance for doubtful accounts | 328 | 339 |
Property and equipment, accumulated depreciation | 128,255 | 124,675 |
Other intangible assets, accumulated amortization | $ 235,357 | $ 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) | 92,116,173 | 90,404,022 |
Common stock, shares outstanding (in shares) | 92,089,396 | 90,377,245 |
Treasury Stock, Shares | 26,777 | 26,777 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Revenues: | ||
Franchise fees and royalty income | $ 132,507 | $ 127,715 |
Advertising fees and related income | 111,007 | 110,203 |
Rental income | 24,478 | 24,422 |
Sales of ice cream and other products | 21,777 | 22,506 |
Other revenues | 11,573 | 11,512 |
Total revenues | 301,342 | 296,358 |
Operating costs and expenses: | ||
Occupancy expenses—franchised restaurants | 13,980 | 14,138 |
Cost of ice cream and other products | 16,864 | 16,922 |
Advertising expenses | 111,972 | 111,072 |
General and administrative expenses, net | 59,824 | 60,369 |
Depreciation | 5,033 | 5,084 |
Amortization of other intangible assets | 5,375 | 5,327 |
Long-lived asset impairment charges | 501 | 47 |
Total operating costs and expenses | 213,549 | 212,959 |
Net income of equity method investments | 2,033 | 2,819 |
Other operating income, net | 5 | 555 |
Operating income | 89,831 | 86,773 |
Other income (expense), net: | ||
Interest income | 1,642 | 321 |
Interest expense | (32,477) | (24,871) |
Other income (losses), net | (327) | 187 |
Total other expense, net | (31,162) | (24,363) |
Income before income taxes | 58,669 | 62,410 |
Provision for income taxes | 8,517 | 18,117 |
Net income | $ 50,152 | $ 44,293 |
Earnings per share: | ||
Common-basic (in dollars per share) | $ 0.58 | $ 0.48 |
Common-diluted (in dollars per share) | 0.57 | 0.48 |
Dividend per share of common stock declared (in usd per share) | $ 0.3475 | $ 0.3225 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Other comprehensive income (loss), net: | ||
Net income | $ 50,152 | $ 44,293 |
Effect of foreign currency translation, net of deferred tax expense of $20 and $537 for the three months ended March 31, 2018 and April 1, 2017, respectively | 1,547 | 8,740 |
Effect of interest rate swaps, net of deferred tax benefit of $217 for the three months ended April 1, 2017 | 0 | (318) |
Other, net | 628 | 654 |
Total other comprehensive income, net | 2,175 | 9,076 |
Comprehensive income | $ 52,327 | $ 53,369 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Deferred tax effect, foreign currency translation | $ 537 | $ (198) |
Income tax effect, Amount of net gain (loss) reclassified into earnings | $ (217) | $ (217) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 50,152 | $ 44,293 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 10,408 | 10,411 |
Amortization of debt issuance costs | 1,249 | 1,610 |
Deferred income taxes | (4,251) | (5,930) |
Provision for bad debt | 358 | 200 |
Share-based compensation expense | 3,204 | 3,494 |
Net income of equity method investments | (2,033) | (2,819) |
Dividends received from equity method investments | 3,947 | 3,950 |
Other, net | 1,230 | (30) |
Change in operating assets and liabilities: | ||
Accounts, notes, and other receivables, net | 15,531 | 13,309 |
Prepaid income taxes, net | (6,962) | 1,332 |
Prepaid expenses and other current assets | (11,352) | (22,139) |
Accounts payable | 7,891 | 9,474 |
Other current liabilities | (82,685) | (70,903) |
Deferred revenue | (477) | 4,619 |
Other, net | (2,413) | 629 |
Net cash used in operating activities | (16,203) | (8,500) |
Cash flows from investing activities: | ||
Additions to property, equipment, and software | (5,803) | (3,581) |
Other, net | 0 | (98) |
Net cash used in investing activities | (5,803) | (3,679) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (7,875) | (6,250) |
Dividends paid on common stock | (28,639) | (29,621) |
Accelerated share repurchases of common stock | (650,368) | 0 |
Exercise of stock options | 18,175 | 14,807 |
Other, net | (731) | (645) |
Net cash used in financing activities | (669,438) | (21,709) |
Effect of exchange rates on cash, cash equivalents, and restricted cash | 64 | 219 |
Decrease in cash, cash equivalents, and restricted cash | (691,380) | (33,669) |
Cash, cash equivalents, and restricted cash, beginning of period | 1,114,099 | 431,832 |
Cash, cash equivalents, and restricted cash, end of period | 422,719 | 398,163 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 19,929 | 22,934 |
Cash paid for interest | 34,917 | 23,405 |
Noncash investing activities: | ||
Property, equipment, and software included in accounts payable and other current liabilities | $ 2,133 | $ 1,131 |
Description of Business and Org
Description of Business and Organization | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Description of Business and Organization | Description of business and organization Dunkin’ Brands Group, Inc. (“DBGI”), together with its consolidated subsidiaries, is one of the world’s leading franchisors of restaurants serving coffee and baked goods, as well as ice cream, within the quick service restaurant segment of the restaurant industry. We franchise and license a system of both traditional and nontraditional quick service restaurants and, in limited circumstances, have owned and operated locations. Through our Dunkin’ 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 | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and the consolidated statements of operations, comprehensive income, and cash flows for the three months ended March 31, 2018 and April 1, 2017 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 30, 2017 , 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-month periods ended March 31, 2018 and April 1, 2017 reflect the results of operations for the 13-week periods ended on those dates. Operating results for the three-month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 29, 2018 . (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. Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of March 31, 2018 and December 30, 2017 were as follows (in thousands): March 31, December 30, Cash and cash equivalents $ 338,461 1,018,317 Restricted cash 82,605 94,047 Restricted cash, included in Other assets 1,653 1,735 Total cash, cash equivalents, and restricted cash $ 422,719 1,114,099 (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 March 31, 2018 and December 30, 2017 are summarized as follows (in thousands): March 31, 2018 December 30, 2017 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 10,807 10,807 10,836 10,836 Total assets $ 10,807 10,807 10,836 10,836 Liabilities: Deferred compensation liabilities $ 13,644 13,644 13,543 13,543 Total liabilities $ 13,644 13,644 13,543 13,543 The deferred compensation liabilities relate to the Dunkin’ Brands, Inc. non-qualified deferred compensation plans (“NQDC Plans”), which allow for pre-tax deferral of compensation for certain qualifying employees and directors. 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 values. 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 March 31, 2018 and December 30, 2017 were as follows (in thousands): March 31, 2018 December 30, 2017 Carrying value Estimated fair value Carrying value Estimated fair value Financial liabilities Long-term debt $ 3,060,732 3,104,801 3,067,357 3,156,099 The estimated fair value of our long-term debt is estimated primarily based on current market rates for debt with similar terms and remaining maturities or current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, the fair value of 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, advertising fees, and sales of ice cream and other products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. As of March 31, 2018 and December 30, 2017 , one master licensee, including its majority-owned subsidiaries, accounted for approximately 14% and 11% , respectively, of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for either of the three month periods ended March 31, 2018 or April 1, 2017 . (f) Advertising expenses Advertising expenses in the consolidated statements of operations includes advertising expenses incurred by the Company, including those expenses incurred by the advertising funds. The Company expenses production costs of commercial advertising upon first airing and expenses the costs of communicating the advertising in the period in which the advertising occurs. Costs of print advertising and certain promotion-related items are deferred and expensed the first time the advertising is displayed. Prepaid expenses and other current assets in the consolidated balance sheets include $19.9 million and $15.5 million at March 31, 2018 and December 30, 2017, respectively, that was related to advertising. Advertising expenses are allocated to interim periods in relation to the related revenues. When revenues of the advertising fund exceed the related advertising expenses, advertising costs are accrued up to the amount of revenues. (g) Recent accounting pronouncements Recently adopted accounting pronouncements In February 2018, the Financial Accounting Standards Board (the “FASB”) issued new guidance allowing companies the option to reclassify from accumulated other comprehensive loss to accumulated deficit the stranded income tax effects resulting from the Tax Cuts and Jobs Act that was enacted on December 22, 2017. The Company early adopted this standard during the first quarter of fiscal year 2018 and has elected to present the change in the period of adoption. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued new guidance for revenue recognition related to contracts with customers (“ASC 606”), except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. We adopted this new guidance in fiscal year 2018. See note 3 for further disclosure of the impact of the new guidance. Recent accounting pronouncements not yet adopted In February 2016, the FASB issued new guidance for lease accounting, which replaces existing lease accounting guidance. The new guidance aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This guidance is effective for the Company in fiscal year 2019 with early adoption permitted, and modified retrospective application is required. The Company expects to adopt this new guidance in fiscal year 2019 and is currently evaluating the impact that 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. (h) Subsequent events Subsequent events have been evaluated through the date these consolidated financial statements were filed. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue recognition (a) Updated revenue recognition policies Franchise fees and royalty income Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. The franchise agreements and SDAs typically require the franchisee to pay initial nonrefundable franchise fees prior to opening the respective restaurants and continuing fees, or royalty income, on a weekly basis based upon a percentage of franchisee gross sales. The initial term of domestic franchise agreements is typically 20 years. Prior to the end of the franchise term or as otherwise provided by the Company, a franchisee may elect to renew the term of a franchise agreement, and, if approved, will typically pay a renewal fee upon execution of the renewal term. If approved, a franchisee may transfer a franchise agreement or SDA to a new or existing franchisee, at which point a transfer fee is paid. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise/license agreement, territory agreement, or renewal agreement. Internationally, the Company sells master franchise agreements that grant the master franchisee the right to develop and operate, and in some instances sub-franchise, a certain number of restaurants within a particular geographic area. The master franchisee is typically required to pay an upfront market entry fee upon entering into the master franchise agreement and an upfront initial franchise fee for each developed restaurant prior to each respective opening. For the Dunkin’ Donuts brand and in certain Baskin-Robbins international markets, the master franchisee will also pay continuing fees, or royalty income, generally on a monthly basis based upon a percentage of sales. Generally, the master franchise agreement serves as the franchise agreement for the underlying restaurants, and the initial franchise term provided for each restaurant typically ranges between 10 and 20 years. Generally, the franchise license granted for each individual restaurant within an arrangement represents a single performance obligation. Therefore, initial franchise fees and market entry fees for each arrangement are allocated to each individual restaurant and recognized over the term of the respective franchise agreement from the date of the restaurant opening. Royalty income is also recognized over the term of the respective franchise agreement based on the royalties earned each period as the underlying sales occur. Renewal fees are generally recognized over the renewal term for the respective restaurant from the start of the renewal period. Transfer fees are recognized over the remaining term of the franchise agreement beginning at the time of transfer. Additionally, for Baskin-Robbins international markets that do not pay a royalty, a portion of the consideration from sales of ice cream and other products is allocated to royalty income as consideration for the use of the franchise license, which is recognized when the related sales occur and is estimated based on royalty rates in effect for markets where the franchise license is sold on a standalone basis. Fees received or receivable that are expected to be recognized as revenue within one year are classified as current deferred revenue in the consolidated balance sheets. Advertising fees and related income Domestically and in limited international markets, franchise agreements typically require the franchisee to pay continuing advertising fees on a weekly basis based on a percentage of franchisee gross sales, which are recognized over the term of the respective franchise agreement based on the fees earned each period as the underlying sales occur. The Company and its franchisees sell gift cards that are redeemable for products in our Dunkin’ Donuts and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets. There are no expiration dates or service fees charged on the gift cards. While the franchisees continue to honor all gift cards presented for payment, the likelihood of redemption may be determined to be remote for certain cards due to long periods of inactivity. In these circumstances, the Company may recognize revenue from unredeemed gift cards (“breakage revenue”) if they are not subject to unclaimed property laws. For Dunkin’ Donuts gift cards enrolled in the DD Perks® Rewards loyalty program and other cards with expected similar redemption behavior, breakage is estimated and recognized at the point in time when the likelihood of redemption of any remaining card balance becomes remote, generally after a period of sufficient inactivity. Breakage on all other Dunkin’ Donuts gift cards and all Baskin-Robbins gift cards is estimated and recognized over time in proportion to actual gift card redemptions, based on historical redemption rates. Rental income Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement dollars paid. The differences between the straight-line rent amounts and amounts receivable under the leases are recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such thresholds are actually achieved. Deferred contingent rentals are recorded as deferred revenue in current liabilities in the consolidated balance sheets. Sales of ice cream and other products We distribute Baskin-Robbins ice cream products and, in limited cases, Dunkin’ Donuts products to franchisees in certain international locations. Revenue from the sale of ice cream and other products is recognized when title and risk of loss transfers to the buyer, which is generally upon delivery. Payment for ice cream and other products is generally due within a relatively short period of time subsequent to delivery. Other revenues Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of restaurants that were not company-operated to new or existing franchisees. Licensing fees are recognized over the term of the expected license agreement, with sales-based license fees being recognized based on the amount earned each period as the underlying sales occur. Gains on the refranchise or sale of a restaurant are recognized over the term of the related agreement. (b) Disaggregation of revenue Revenues are disaggregated by timing of revenue recognition and reconciled to reportable segment revenues as follows (in thousands): Three months ended March 31, 2018 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 110,833 6,409 4,938 1,543 — 123,723 3,134 126,857 Franchise fees 4,707 289 448 206 — 5,650 — 5,650 Advertising fees and related income — — — — 104,167 104,167 259 104,426 Other revenues 535 2,277 2 — — 2,814 8,154 10,968 Total revenues recognized over time 116,075 8,975 5,388 1,749 104,167 236,354 11,547 247,901 Revenues recognized at a point in time: Sales of ice cream and other products — 678 — 23,972 — 24,650 (2,873 ) 21,777 Other revenues 245 93 (23 ) 47 — 362 243 605 Total revenues recognized at a point in time 245 771 (23 ) 24,019 — 25,012 (2,630 ) 22,382 Total revenues recognized under ASC 606 116,320 9,746 5,365 25,768 104,167 261,366 8,917 270,283 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 6,581 6,581 Rental income 23,591 767 — 120 — 24,478 — 24,478 Total revenues not subject to ASC 606 23,591 767 — 120 — 24,478 6,581 31,059 Total revenues $ 139,911 10,513 5,365 25,888 104,167 285,844 15,498 301,342 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and gift card breakage revenue, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." Three months ended April 1, 2017 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 107,175 6,684 4,412 1,431 — 119,702 2,791 122,493 Franchise fees 4,298 206 433 285 — 5,222 — 5,222 Advertising fees and related income — — — — 102,321 102,321 55 102,376 Other revenues 540 2,313 4 — — 2,857 7,909 10,766 Total revenues recognized over time 112,013 9,203 4,849 1,716 102,321 230,102 10,755 240,857 Revenues recognized at a point in time: Sales of ice cream and other products — 526 — 24,404 — 24,930 (2,424 ) 22,506 Other revenues 503 64 (16 ) 46 — 597 149 746 Total revenues recognized at a point in time 503 590 (16 ) 24,450 — 25,527 (2,275 ) 23,252 Total revenues recognized under ASC 606 112,516 9,793 4,833 26,166 102,321 255,629 8,480 264,109 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 7,827 7,827 Rental income 23,524 784 — 114 — 24,422 — 24,422 Total revenues not subject to ASC 606 23,524 784 — 114 — 24,422 7,827 32,249 Total revenues $ 136,040 10,577 4,833 26,280 102,321 280,051 16,307 296,358 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and gift card breakage revenue, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." (c) Contract balances Information about receivables and deferred revenue subject to ASC 606 is as follows (in thousands): March 31, December 30, Balance Sheet Classification Receivables $ 80,681 76,455 Accounts receivable, net and Notes and other receivables, net Deferred revenue: Current $ 29,404 27,724 Deferred revenue—current Long-term 362,125 361,458 Deferred revenue—long term Total $ 391,529 389,182 Receivables relate primarily to payments due for royalties, franchise fees, advertising fees, sales of ice cream and other products, and licensing fees. Deferred revenue primarily represents the Company’s remaining performance obligations under its franchise and license agreements for which consideration has been received or is receivable, and is generally recognized on a straight-line basis over the remaining term of the related agreement. The increase in the deferred revenue balance for the three months ended March 31, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $8.3 million of revenues recognized that were included in the deferred revenue balance as of December 30, 2017. As of March 31, 2018 and December 30, 2017 , there were no contract assets from contracts with customers. (d) Transaction price allocated to remaining performance obligations Estimated revenue expected to be recognized in the future related to performance obligations that are either unsatisfied or partially satisfied at March 31, 2018 is as follows (in thousands): Fiscal year: 2018 (a) $ 22,541 2019 23,727 2020 23,521 2021 23,295 2022 23,028 Thereafter 238,689 Total $ 354,801 (a) Represents the estimate for remainder of fiscal year 2018 which excludes the three months ended March 31, 2018. The estimated revenue in the table above does not contemplate future franchise renewals or new franchise agreements for restaurants for which a franchise agreement or SDA does not exist at March 31, 2018 . Additionally, the table above excludes $64.9 million of consideration allocated to restaurants that are not yet open as of March 31, 2018 . The Company has applied the sales-based royalty exemption which permits exclusion of variable consideration in the form of sales-based royalties from the disclosure of remaining performance obligations in the table above. Additionally, the Company has applied the transition practical expedient that allows the Company to omit the above disclosures for the fiscal year ended December 30, 2017 . (e) Change in accounting principle In fiscal year 2018, the Company adopted new revenue recognition guidance which provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The Company adopted the guidance using the full retrospective transition method which results in restating each prior reporting period presented. The restated amounts include the application of a practical expedient that permitted the Company to reflect the aggregate effect of all modifications that occurred prior to fiscal year 2016 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. The Company implemented new business processes, internal controls, and modified information technology systems to assist in the ongoing application of the new guidance. Franchise Fees The adoption of the new guidance changed the timing of recognition of initial franchise fees, including master license and territory fees for our international business, and renewal and transfer fees. Previously, these fees were generally recognized upfront upon either opening of the respective restaurant, when a renewal agreement became effective, or upon transfer of a franchise agreement. The new guidance generally requires these fees to be recognized over the term of the related franchise license for the respective restaurant. Additionally, transfer fees were previously included within other revenues, but are now included within franchise fees and royalty income in the consolidated statements of operations. The new guidance did not materially impact the recognition of royalty income. Advertising The adoption of the new guidance changed the reporting of advertising fund contributions from franchisees and the related advertising fund expenditures, which were not previously included in the consolidated statements of operations. The new guidance requires these advertising fund contributions and expenditures to be reported on a gross basis in the consolidated statements of operations. The assets and liabilities held by the advertising funds, which were previously reported as restricted assets and liabilities of advertising funds, respectively, are now included within the respective balance sheet caption to which the assets and liabilities relate. Additionally, advertising costs that have been incurred by the Company outside of the advertising funds were previously included within general and administrative expenses, net, but are now included within advertising expenses in the consolidated statements of operations. Previously, breakage from Dunkin’ Donuts and Baskin-Robbins gift cards was recorded as a reduction to general and administrative expenses, net, to offset the related gift card program costs. In accordance with the new guidance, breakage revenue is now reported on a gross basis in the consolidated statements of operations within advertising fees and related income, and the related gift card program costs are included in advertising expenses. Ice Cream Royalty Allocation The adoption of the new guidance requires a portion of sales of ice cream products to be allocated to royalty income as consideration for the use of the franchise license. As such, a portion of sales of ice cream and other products has been reclassified to franchise fees and royalty income in the consolidated statements of operations under the new guidance. This allocation has no impact on the timing of recognition of the related sales of ice cream products or royalty income. Other Revenue Transactions The adoption of the new guidance requires certain fees generated by licensing of our brand names and other intellectual property to be recognized over the term of the related agreement, including a one-time upfront license fee recognized in connection with the Dunkin’ K-Cup® pod licensing agreement in fiscal year 2015. Additionally, gains associated with the refranchise, sale, or transfer of restaurants that were not company-operated to new or existing franchisees are recognized over the term of the related agreement under the new guidance, instead of upon closing of the sale transaction or transfer. Impacts to Prior Period Information The new guidance for revenue recognition impacted the Company's previously reported financial statements as follows: Consolidated Balance Sheets December 30, 2017 (In thousands) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Other revenue transactions Restated Assets Current assets: Cash and cash equivalents $ 1,018,317 — — — 1,018,317 Restricted cash 94,047 — — — 94,047 Accounts receivables, net 51,442 — 18,075 — 69,517 Notes and other receivables, net 51,082 — 1,250 — 52,332 Restricted assets of advertising funds 47,373 — (47,373 ) — — Prepaid income taxes 21,879 — 48 — 21,927 Prepaid expenses and other current assets 32,695 — 15,498 — 48,193 Total current assets 1,316,835 — (12,502 ) — 1,304,333 Property and equipment, net 169,005 — 12,537 — 181,542 Equity method investments 140,615 — — — 140,615 Goodwill 888,308 — — — 888,308 Other intangibles assets, net 1,357,157 — — — 1,357,157 Other assets 65,464 — 14 — 65,478 Total assets $ 3,937,384 — 49 — 3,937,433 Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Current portion of long-term debt $ 31,500 — — — 31,500 Capital lease obligations 596 — — — 596 Accounts payable 16,307 — 37,110 — 53,417 Liabilities of advertising funds 58,014 — (58,014 ) — — Deferred revenue 39,395 1,502 (550 ) 4,529 44,876 Other current liabilities 326,078 — 29,032 — 355,110 Total current liabilities 471,890 1,502 7,578 4,529 485,499 Long-term debt, net 3,035,857 — — — 3,035,857 Capital lease obligations 7,180 — — — 7,180 Unfavorable operating leases acquired 9,780 — — — 9,780 Deferred revenue 11,158 328,183 (7,518 ) 29,635 361,458 Deferred income taxes, net 315,249 (91,488 ) — (9,416 ) 214,345 Other long-term liabilities 77,823 — 30 — 77,853 Total long-term liabilities 3,457,047 236,695 (7,488 ) 20,219 3,706,473 Stockholders’ equity (deficit) Preferred stock — — — — — Common stock 90 — — — 90 Additional paid-in-capital 724,114 — — — 724,114 Treasury stock, at cost (1,060 ) — — — (1,060 ) Accumulated deficit (705,007 ) (238,197 ) (196 ) (24,748 ) (968,148 ) Accumulated other comprehensive loss (9,690 ) — 155 — (9,535 ) Stockholders’ equity (deficit) 8,447 (238,197 ) (41 ) (24,748 ) (254,539 ) Total liabilities and stockholders’ equity (deficit) $ 3,937,384 — 49 — 3,937,433 Consolidated Statements of Operations Three months ended April 1, 2017 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 130,069 (5,145 ) — 2,791 — 127,715 Advertising fees and related income — — 110,203 — — 110,203 Rental income 24,422 — — — — 24,422 Sales of ice cream and other products 25,297 — — (2,791 ) — 22,506 Other revenues 10,884 (1,122 ) — — 1,750 11,512 Total revenues 190,672 (6,267 ) 110,203 — 1,750 296,358 Operating costs and expenses: Occupancy expenses—franchised restaurants 14,138 — — — — 14,138 Cost of ice cream and other products 16,922 — — — — 16,922 Advertising expenses — — 111,072 — — 111,072 General and administrative expenses, net 61,235 — (866 ) — — 60,369 Depreciation 5,084 — — — — 5,084 Amortization of other intangible assets 5,327 — — — — 5,327 Long-lived asset impairment charges 47 — — — — 47 Total operating costs and expenses 102,753 — 110,206 — — 212,959 Net income of equity method investments 2,819 — — — — 2,819 Other operating income, net 555 — — — — 555 Operating income 91,293 (6,267 ) (3 ) — 1,750 86,773 Other income (expense), net: Interest income 321 — — — — 321 Interest expense (24,871 ) — — — — (24,871 ) Other gains, net 187 — — — — 187 Total other expense, net (24,363 ) — — — — (24,363 ) Income before income taxes 66,930 (6,267 ) (3 ) — 1,750 62,410 Provision (benefit) for income taxes 19,463 (1,854 ) — — 508 18,117 Net income $ 47,467 (4,413 ) (3 ) — 1,242 44,293 Earnings per share—basic $ 0.52 0.48 Earnings per share—diluted 0.51 0.48 The adoption of the new revenue recognition guidance had no impact on the Company’s total cash flows. Adjustments presented in the cash flow information below result from full consolidation of the advertising funds, and reflect the investing activities, consisting solely of additions to property and equipment, of such funds. Select Cash Flow Information (In thousands) Three months ended April 1, 2017 Previously reported Adjustments for new revenue recognition guidance Restated Net cash used in operating activities $ (9,924 ) 1,424 (8,500 ) Net cash used in investing activities (2,255 ) (1,424 ) (3,679 ) Net cash used in financing activities (21,709 ) — (21,709 ) Decrease in cash, cash equivalents, and restricted cash (33,669 ) — (33,669 ) |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at March 31, 2018 and December 30, 2017 consisted of the following (in thousands): March 31, December 30, 2015 Class A-2-II Notes $ 1,697,500 1,701,875 2017 Class A-2-I Notes 598,500 600,000 2017 Class A-2-II Notes 798,000 800,000 Debt issuance costs, net of amortization (33,268 ) (34,518 ) Total debt 3,060,732 3,067,357 Less current portion of long-term debt 31,500 31,500 Total long-term debt $ 3,029,232 3,035,857 The Company's outstanding debt consists of Series 2015-1 3.980% Fixed Rate Senior Secured Notes, Class A-2-II (the “2015 Class A-2-II Notes”), Series 2017-1 3.629% Fixed Rate Senior Secured Notes, Class A-2-I (the “2017 Class A-2-I Notes”), 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”) issued by DB Master Finance LLC (the “Master Issuer”), a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of DBGI. In addition, the Master Issuer issued Series 2017-1 Variable Funding Senior Secured Notes, Class A-1 (the “2017 Variable Funding Notes” and, together with the 2017 Class A-2 Notes, the “2017 Notes”), which allow for the issuance of up to $150.0 million of 2017 Variable Funding Notes and certain other credit instruments, including letters of credit. As of March 31, 2018 and December 30, 2017 , $32.4 million and $32.3 million , respectively, of letters of credit were outstanding against the 2017 Variable Funding Notes which relate primarily to interest reserves required under the base indenture and related supplemental indentures. There were no amounts drawn down on these letters of credit as of March 31, 2018 or December 30, 2017 . The 2015 Class A-2-II 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 Class A-2-II Notes and 2017 Notes and that have pledged substantially all of their assets to secure the 2015 Class A-2-II Notes and 2017 Notes. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other current liabilities Other current liabilities consisted of the following (in thousands): March 31, December 30, Gift card/certificate liability $ 169,944 228,783 Accrued payroll and benefits 18,402 30,768 Accrued interest 13,823 17,902 Accrued professional costs 5,746 5,527 Accrued advertising expenses 32,778 35,210 Franchisee profit-sharing liability 4,617 13,243 Other 27,081 23,677 Total other current liabilities $ 272,391 355,110 The decrease in the gift card/certificate liability was driven by the seasonality of our gift card program. The decrease in accrued payroll and benefits was primarily due to incentive compensation payments made during the three months ended March 31, 2018 related to fiscal year 2017. The franchisee profit-sharing liability represents amounts owed to franchisees from the net profits primarily on the sale of Dunkin’ K-Cup® pods, retail packaged coffee, and ready-to-drink bottled iced coffee in certain retail outlets. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
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. Additionally, the Company administers and directs the development of all advertising and promotional programs in the U.S. advertising funds. As such, the Company has determined that it has five reportable segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins U.S., Baskin-Robbins International, and U.S. Advertising Funds. 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. Baskin-Robbins International primarily derives its revenues from sales of ice cream products, as well as royalty income, franchise fees, and license fees. U.S. Advertising Funds primarily derive revenues through continuing advertising fees from Dunkin’ Donuts and Baskin-Robbins franchisees. The operating results of each segment are regularly reviewed and evaluated separately by the Company’s senior management, which includes, but is not limited to, the chief executive officer. Senior management primarily evaluates the performance of its segments and allocates resources to them based on operating income adjusted for amortization of intangible assets, long-lived asset impairment charges, impairment of our equity method investments, and other infrequent or unusual charges, which does not reflect the allocation of any corporate charges. This profitability measure is referred to as segment profit. When senior management reviews a balance sheet, it is at a consolidated level. The accounting policies applicable to each segment are generally consistent with those used in the consolidated financial statements. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues. Revenues reported as “Other” include revenues earned through certain licensing arrangements with third parties in which our brand names are used, including the licensing fees earned from the Dunkin’ K-Cup® pod licensing agreement and sales of Dunkin' Donuts branded ready-to-drink bottled iced coffee and retail packaged coffee, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and gift card breakage revenue, all of which are not allocated to a specific segment. Revenues by segment were as follows (in thousands): Revenues Three months ended March 31, April 1, Dunkin’ Donuts U.S. $ 139,911 136,040 Dunkin’ Donuts International 5,365 4,833 Baskin-Robbins U.S. 10,513 10,577 Baskin-Robbins International 25,888 26,280 U.S. Advertising Funds 104,167 102,321 Total reportable segment revenues 285,844 280,051 Other 15,498 16,307 Total revenues $ 301,342 296,358 Amounts included in “Corporate and other” in the segment profit table below include corporate overhead costs, such as payroll and related benefit costs and professional services, net of “Other” revenues reported above. Segment profit by segment was as follows (in thousands): Segment profit Three months ended March 31, April 1, Dunkin’ Donuts U.S. $ 105,063 101,694 Dunkin’ Donuts International 3,206 1,427 Baskin-Robbins U.S. 7,235 7,383 Baskin-Robbins International 7,441 8,171 U.S. Advertising Funds — — Total reportable segments 122,945 118,675 Corporate and other (27,238 ) (26,528 ) Interest expense, net (30,835 ) (24,550 ) Amortization of other intangible assets (5,375 ) (5,327 ) Long-lived asset impairment charges (501 ) (47 ) Other income (losses), net (327 ) 187 Income before income taxes $ 58,669 62,410 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 March 31, April 1, Dunkin’ Donuts International $ (444 ) (90 ) Baskin-Robbins International 1,727 2,026 Total reportable segments 1,283 1,936 Other 750 883 Total net income of equity method investments $ 2,033 2,819 |
Stockholders_ Deficit
Stockholders’ Deficit | 3 Months Ended |
Mar. 31, 2018 | |
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 30, 2017 $ (254,539 ) Net income 50,152 Other comprehensive income, net 2,175 Dividends paid on common stock (28,639 ) Exercise of stock options 18,175 Accelerated share repurchases of common stock (650,368 ) Share-based compensation expense 3,204 Other, net (441 ) Balance as of March 31, 2018 $ (860,281 ) (a) Treasury stock In February 2018, the Company entered into two accelerated share repurchase agreements (the “February 2018 ASR Agreements”) with two third-party financial institutions. Pursuant to the terms of the February 2018 ASR Agreements, the Company paid the financial institutions $650.0 million from cash on hand and received an initial delivery of 8,478,722 shares of the Company's common stock in February 2018, representing an estimate of 80% of the total shares expected to be delivered under the February 2018 ASR Agreements. At settlement, the financial institutions may be required to deliver additional shares of common stock to the Company or, under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make cash payment to the financial institutions. Final settlement of each of the February 2018 ASR Agreements is expected to be completed in the third quarter of fiscal year 2018, although the settlement may be accelerated at each financial institution’s option. The Company accounts for treasury stock under the cost method based on the cost of the shares on the dates of repurchase plus any direct costs incurred. During the three months ended March 31, 2018 , the Company retired 8,478,722 shares of treasury stock repurchased under the February 2018 ASR Agreements. The repurchase and retirement of these shares of treasury stock resulted in a decrease in additional paid-in capital of $65.2 million and an increase in accumulated deficit of $455.1 million . Additionally, the Company recorded a decrease in additional paid-in capital of $130.0 million related to the remaining cash paid under the February 2018 ASR Agreements since the final settlement was not completed as of March 31, 2018 . (b) Equity incentive plans During the three months ended March 31, 2018 , the Company granted stock options to purchase 909,027 shares of common stock and 50,838 restricted stock units (“RSUs”) to certain employees. 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 an exercise price of $59.60 per share and have a weighted average grant-date fair value of $10.44 per share. The RSUs granted to employees vest in equal annual amounts over a three -year period subsequent to the grant date and have a weighted average grant-date fair value of $56.76 per share. In addition, the Company granted 67,993 performance stock units (“PSUs”) to certain employees during the three months ended March 31, 2018 . These PSUs are generally eligible to cliff-vest approximately three years from the grant date. Of the total PSUs granted, 30,974 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 37,019 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 grant-date fair value of $65.52 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 grant-date fair value of $57.10 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 $3.2 million and $3.5 million for the three months ended March 31, 2018 and April 1, 2017 , 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 Other Accumulated other comprehensive income (loss) Balance as of December 30, 2017 $ (8,084 ) (1,451 ) (9,535 ) Other comprehensive income, net 1,547 628 2,175 Balance as of March 31, 2018 $ (6,537 ) (823 ) (7,360 ) (d) Dividends The Company paid a quarterly dividend of $0.3475 per share of common stock on March 21, 2018 , totaling approximately $28.6 million . On April 26, 2018 , the Company announced that its board of directors approved the next quarterly dividend of $0.3475 per share of common stock payable June 6, 2018 to shareholders of record as of the close of business on May 29, 2018 . |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per share The computation of basic and diluted earnings per common share is as follows (in thousands, except for share and per share data): Three months ended March 31, April 1, Net income—basic and diluted $ 50,152 44,293 Weighted average number of common shares: Common—basic 86,451,167 91,656,559 Common—diluted 87,877,254 93,120,231 Earnings per common share: Common—basic $ 0.58 0.48 Common—diluted 0.57 0.48 The weighted average number of common shares in the common diluted earnings per share calculation includes the dilutive effect of 1,426,087 and 1,463,672 equity awards for the three months ended March 31, 2018 and April 1, 2017 , 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 March 31, 2018 and April 1, 2017 , there were 258,019 and 150,000 shares, respectively, related to equity awards that were contingently issuable and for which the contingent vesting criteria were not yet met as of the fiscal period end. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation excludes 1,883,298 and 2,135,477 shares related to equity awards for the three months ended March 31, 2018 and April 1, 2017 , respectively, as they would be antidilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 30, 2017 , the Company was contingently liable under such supply chain agreements for approximately $129.9 million and $116.7 million , respectively. For certain supply chain commitments, as product is purchased by the Company’s franchisees over the term of the agreement, the amount of the guarantee is reduced. The Company assesses the risk of performing under each of these guarantees on a quarterly basis, and, based on various factors including internal forecasts, prior history, and ability to extend contract terms, we accrued an immaterial amount of reserves related to supply chain commitments as of March 31, 2018 and December 30, 2017 . (b) Letters of credit As of March 31, 2018 and December 30, 2017 , the Company had standby letters of credit outstanding for a total of $32.4 million and $32.3 million , respectively. There were no amounts drawn down on these letters of credit. (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 March 31, 2018 and December 30, 2017 , $1.6 million and $3.6 million , respectively, was included in other current liabilities in the consolidated balance sheets to reflect the Company’s estimate of the probable losses which may be incurred in connection with all outstanding litigation. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-party transactions The Company recognized revenues from its equity method investees, consisting of royalty income and sales of ice cream and other products, as follows (in thousands): Three months ended March 31, April 1, B-R 31 Ice Cream Company., Ltd. $ 345 289 BR-Korea Co., Ltd. 946 1,017 Palm Oasis Ventures Pty. Ltd. 705 1,009 $ 1,996 2,315 As of March 31, 2018 and December 30, 2017 , the Company had $4.2 million and $5.1 million , respectively, of receivables from its equity method investees, which were recorded in accounts receivable, net of allowance for doubtful accounts, in the consolidated balance sheets. The Company made net payments to its equity method investees totaling approximately $1.0 million and $1.1 million during the three months ended March 31, 2018 and April 1, 2017 , respectively, primarily for the purchase of ice cream products. |
Advertising Funds
Advertising Funds | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Advertising funds | Advertising funds Assets and liabilities of the advertising funds, which are restricted in their use, included in the consolidated balance sheets were as follows (in thousands): March 31, December 30, Accounts receivable, net $ 19,896 18,075 Notes and other receivables, net 1,393 1,250 Prepaid income taxes 62 48 Prepaid expenses and other current assets 19,875 15,498 Total current assets 41,226 34,871 Property, equipment, and software, net 12,380 12,537 Other assets 1,346 14 Total assets $ 54,952 47,422 Accounts payable $ 46,294 37,110 Deferred revenue—current (a) (453 ) (550 ) Other current liabilities 26,036 29,032 Total current liabilities 71,877 65,592 Deferred revenue—long-term (a) (7,345 ) (7,518 ) Other long-term liabilities 27 30 Total liabilities $ 64,559 58,104 (a) Amounts represent franchisee incentives that have been deferred and are being recognized over the terms of the respective franchise agreements. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes On December 22, 2017, the U.S. federal government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly changes U.S. tax law by, among other things, reducing the corporate income tax rate from 35% to 21% effective January 1, 2018, establishing a territorial-style system for taxing foreign-source income of domestic multinational corporations, and imposing a one-time mandatory transition tax on deemed repatriated earnings of certain foreign joint ventures and subsidiaries. As a result of the Tax Act, the Company recorded a provisional net tax benefit of $143.4 million during fiscal year 2017. The provisional amount included a $145.1 million tax benefit for the remeasurement of certain U.S. deferred tax assets and liabilities. In addition, the provisional amount included a $1.7 million tax expense for the income tax on the deemed repatriation of unremitted foreign earnings, net of estimated foreign tax credits. The provisional net tax benefit was computed based on information available to the Company at the time. There have been no material changes to these provisional amounts during the three months ended March 31, 2018 , and there is still uncertainty as to the application of the Tax Act, including as it relates to state income taxes, because regulations and interpretations have not been released. In addition, certain estimates were used in computing the provisional amount, which will be finalized upon the filing of the Company’s 2017 U.S. federal tax return. As we complete our analysis of U.S. tax reform in fiscal year 2018, we may make adjustments to the provisional amounts, which may impact our provision for income taxes in the period in which the adjustments are made. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | |
Unaudited consolidated financial statements | Unaudited consolidated financial statements The consolidated balance sheet as of March 31, 2018 and the consolidated statements of operations, comprehensive income, and cash flows for the three months ended March 31, 2018 and April 1, 2017 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 30, 2017 , 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-month periods ended March 31, 2018 and April 1, 2017 reflect the results of operations for the 13-week periods ended on those dates. Operating results for the three-month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 29, 2018 . |
Cash, cash equivalents, and 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. Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of March 31, 2018 and December 30, 2017 were as follows (in thousands): March 31, December 30, Cash and cash equivalents $ 338,461 1,018,317 Restricted cash 82,605 94,047 Restricted cash, included in Other assets 1,653 1,735 Total cash, cash equivalents, and restricted cash $ 422,719 1,114,099 |
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 March 31, 2018 and December 30, 2017 are summarized as follows (in thousands): March 31, 2018 December 30, 2017 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 10,807 10,807 10,836 10,836 Total assets $ 10,807 10,807 10,836 10,836 Liabilities: Deferred compensation liabilities $ 13,644 13,644 13,543 13,543 Total liabilities $ 13,644 13,644 13,543 13,543 The deferred compensation liabilities relate to the Dunkin’ Brands, Inc. non-qualified deferred compensation plans (“NQDC Plans”), which allow for pre-tax deferral of compensation for certain qualifying employees and directors. 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 values. 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 March 31, 2018 and December 30, 2017 were as follows (in thousands): March 31, 2018 December 30, 2017 Carrying value Estimated fair value Carrying value Estimated fair value Financial liabilities Long-term debt $ 3,060,732 3,104,801 3,067,357 3,156,099 The estimated fair value of our long-term debt is estimated primarily based on current market rates for debt with similar terms and remaining maturities or current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, the fair value of 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, advertising fees, and sales of ice cream and other products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. As of March 31, 2018 and December 30, 2017 , one master licensee, including its majority-owned subsidiaries, accounted for approximately 14% and 11% , respectively, of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for either of the three month periods ended March 31, 2018 or April 1, 2017 . |
Advertising expenses | Advertising expenses Advertising expenses in the consolidated statements of operations includes advertising expenses incurred by the Company, including those expenses incurred by the advertising funds. The Company expenses production costs of commercial advertising upon first airing and expenses the costs of communicating the advertising in the period in which the advertising occurs. Costs of print advertising and certain promotion-related items are deferred and expensed the first time the advertising is displayed. Prepaid expenses and other current assets in the consolidated balance sheets include $19.9 million and $15.5 million at March 31, 2018 and December 30, 2017, respectively, that was related to advertising. Advertising expenses are allocated to interim periods in relation to the related revenues. When revenues of the advertising fund exceed the related advertising expenses, advertising costs are accrued up to the amount of revenues. |
Recent accounting pronouncements | Recent accounting pronouncements Recently adopted accounting pronouncements In February 2018, the Financial Accounting Standards Board (the “FASB”) issued new guidance allowing companies the option to reclassify from accumulated other comprehensive loss to accumulated deficit the stranded income tax effects resulting from the Tax Cuts and Jobs Act that was enacted on December 22, 2017. The Company early adopted this standard during the first quarter of fiscal year 2018 and has elected to present the change in the period of adoption. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued new guidance for revenue recognition related to contracts with customers (“ASC 606”), except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. We adopted this new guidance in fiscal year 2018. See note 3 for further disclosure of the impact of the new guidance. Recent accounting pronouncements not yet adopted In February 2016, the FASB issued new guidance for lease accounting, which replaces existing lease accounting guidance. The new guidance aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This guidance is effective for the Company in fiscal year 2019 with early adoption permitted, and modified retrospective application is required. The Company expects to adopt this new guidance in fiscal year 2019 and is currently evaluating the impact that 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. |
Subsequent events | Subsequent events Subsequent events have been evaluated through the date these consolidated financial statements were filed. |
Revenue recognition | (a) Updated revenue recognition policies Franchise fees and royalty income Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. The franchise agreements and SDAs typically require the franchisee to pay initial nonrefundable franchise fees prior to opening the respective restaurants and continuing fees, or royalty income, on a weekly basis based upon a percentage of franchisee gross sales. The initial term of domestic franchise agreements is typically 20 years. Prior to the end of the franchise term or as otherwise provided by the Company, a franchisee may elect to renew the term of a franchise agreement, and, if approved, will typically pay a renewal fee upon execution of the renewal term. If approved, a franchisee may transfer a franchise agreement or SDA to a new or existing franchisee, at which point a transfer fee is paid. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise/license agreement, territory agreement, or renewal agreement. Internationally, the Company sells master franchise agreements that grant the master franchisee the right to develop and operate, and in some instances sub-franchise, a certain number of restaurants within a particular geographic area. The master franchisee is typically required to pay an upfront market entry fee upon entering into the master franchise agreement and an upfront initial franchise fee for each developed restaurant prior to each respective opening. For the Dunkin’ Donuts brand and in certain Baskin-Robbins international markets, the master franchisee will also pay continuing fees, or royalty income, generally on a monthly basis based upon a percentage of sales. Generally, the master franchise agreement serves as the franchise agreement for the underlying restaurants, and the initial franchise term provided for each restaurant typically ranges between 10 and 20 years. Generally, the franchise license granted for each individual restaurant within an arrangement represents a single performance obligation. Therefore, initial franchise fees and market entry fees for each arrangement are allocated to each individual restaurant and recognized over the term of the respective franchise agreement from the date of the restaurant opening. Royalty income is also recognized over the term of the respective franchise agreement based on the royalties earned each period as the underlying sales occur. Renewal fees are generally recognized over the renewal term for the respective restaurant from the start of the renewal period. Transfer fees are recognized over the remaining term of the franchise agreement beginning at the time of transfer. Additionally, for Baskin-Robbins international markets that do not pay a royalty, a portion of the consideration from sales of ice cream and other products is allocated to royalty income as consideration for the use of the franchise license, which is recognized when the related sales occur and is estimated based on royalty rates in effect for markets where the franchise license is sold on a standalone basis. Fees received or receivable that are expected to be recognized as revenue within one year are classified as current deferred revenue in the consolidated balance sheets. Advertising fees and related income Domestically and in limited international markets, franchise agreements typically require the franchisee to pay continuing advertising fees on a weekly basis based on a percentage of franchisee gross sales, which are recognized over the term of the respective franchise agreement based on the fees earned each period as the underlying sales occur. The Company and its franchisees sell gift cards that are redeemable for products in our Dunkin’ Donuts and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets. There are no expiration dates or service fees charged on the gift cards. While the franchisees continue to honor all gift cards presented for payment, the likelihood of redemption may be determined to be remote for certain cards due to long periods of inactivity. In these circumstances, the Company may recognize revenue from unredeemed gift cards (“breakage revenue”) if they are not subject to unclaimed property laws. For Dunkin’ Donuts gift cards enrolled in the DD Perks® Rewards loyalty program and other cards with expected similar redemption behavior, breakage is estimated and recognized at the point in time when the likelihood of redemption of any remaining card balance becomes remote, generally after a period of sufficient inactivity. Breakage on all other Dunkin’ Donuts gift cards and all Baskin-Robbins gift cards is estimated and recognized over time in proportion to actual gift card redemptions, based on historical redemption rates. Rental income Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement dollars paid. The differences between the straight-line rent amounts and amounts receivable under the leases are recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such thresholds are actually achieved. Deferred contingent rentals are recorded as deferred revenue in current liabilities in the consolidated balance sheets. Sales of ice cream and other products We distribute Baskin-Robbins ice cream products and, in limited cases, Dunkin’ Donuts products to franchisees in certain international locations. Revenue from the sale of ice cream and other products is recognized when title and risk of loss transfers to the buyer, which is generally upon delivery. Payment for ice cream and other products is generally due within a relatively short period of time subsequent to delivery. Other revenues Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of restaurants that were not company-operated to new or existing franchisees. Licensing fees are recognized over the term of the expected license agreement, with sales-based license fees being recognized based on the amount earned each period as the underlying sales occur. Gains on the refranchise or sale of a restaurant are recognized over the term of the related agreement. (e) Change in accounting principle In fiscal year 2018, the Company adopted new revenue recognition guidance which provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The Company adopted the guidance using the full retrospective transition method which results in restating each prior reporting period presented. The restated amounts include the application of a practical expedient that permitted the Company to reflect the aggregate effect of all modifications that occurred prior to fiscal year 2016 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. The Company implemented new business processes, internal controls, and modified information technology systems to assist in the ongoing application of the new guidance. Franchise Fees The adoption of the new guidance changed the timing of recognition of initial franchise fees, including master license and territory fees for our international business, and renewal and transfer fees. Previously, these fees were generally recognized upfront upon either opening of the respective restaurant, when a renewal agreement became effective, or upon transfer of a franchise agreement. The new guidance generally requires these fees to be recognized over the term of the related franchise license for the respective restaurant. Additionally, transfer fees were previously included within other revenues, but are now included within franchise fees and royalty income in the consolidated statements of operations. The new guidance did not materially impact the recognition of royalty income. Advertising The adoption of the new guidance changed the reporting of advertising fund contributions from franchisees and the related advertising fund expenditures, which were not previously included in the consolidated statements of operations. The new guidance requires these advertising fund contributions and expenditures to be reported on a gross basis in the consolidated statements of operations. The assets and liabilities held by the advertising funds, which were previously reported as restricted assets and liabilities of advertising funds, respectively, are now included within the respective balance sheet caption to which the assets and liabilities relate. Additionally, advertising costs that have been incurred by the Company outside of the advertising funds were previously included within general and administrative expenses, net, but are now included within advertising expenses in the consolidated statements of operations. Previously, breakage from Dunkin’ Donuts and Baskin-Robbins gift cards was recorded as a reduction to general and administrative expenses, net, to offset the related gift card program costs. In accordance with the new guidance, breakage revenue is now reported on a gross basis in the consolidated statements of operations within advertising fees and related income, and the related gift card program costs are included in advertising expenses. Ice Cream Royalty Allocation The adoption of the new guidance requires a portion of sales of ice cream products to be allocated to royalty income as consideration for the use of the franchise license. As such, a portion of sales of ice cream and other products has been reclassified to franchise fees and royalty income in the consolidated statements of operations under the new guidance. This allocation has no impact on the timing of recognition of the related sales of ice cream products or royalty income. Other Revenue Transactions The adoption of the new guidance requires certain fees generated by licensing of our brand names and other intellectual property to be recognized over the term of the related agreement, including a one-time upfront license fee recognized in connection with the Dunkin’ K-Cup® pod licensing agreement in fiscal year 2015. Additionally, gains associated with the refranchise, sale, or transfer of restaurants that were not company-operated to new or existing franchisees are recognized over the term of the related agreement under the new guidance, instead of upon closing of the sale transaction or transfer. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 30, 2017 were as follows (in thousands): March 31, December 30, Cash and cash equivalents $ 338,461 1,018,317 Restricted cash 82,605 94,047 Restricted cash, included in Other assets 1,653 1,735 Total cash, cash equivalents, and restricted cash $ 422,719 1,114,099 |
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 March 31, 2018 and December 30, 2017 are summarized as follows (in thousands): March 31, 2018 December 30, 2017 Significant other observable inputs (Level 2) Total Significant other observable inputs (Level 2) Total Assets: Company-owned life insurance $ 10,807 10,807 10,836 10,836 Total assets $ 10,807 10,807 10,836 10,836 Liabilities: Deferred compensation liabilities $ 13,644 13,644 13,543 13,543 Total liabilities $ 13,644 13,644 13,543 13,543 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying value and estimated fair value of long-term debt as of March 31, 2018 and December 30, 2017 were as follows (in thousands): March 31, 2018 December 30, 2017 Carrying value Estimated fair value Carrying value Estimated fair value Financial liabilities Long-term debt $ 3,060,732 3,104,801 3,067,357 3,156,099 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of revenue | Revenues are disaggregated by timing of revenue recognition and reconciled to reportable segment revenues as follows (in thousands): Three months ended March 31, 2018 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 110,833 6,409 4,938 1,543 — 123,723 3,134 126,857 Franchise fees 4,707 289 448 206 — 5,650 — 5,650 Advertising fees and related income — — — — 104,167 104,167 259 104,426 Other revenues 535 2,277 2 — — 2,814 8,154 10,968 Total revenues recognized over time 116,075 8,975 5,388 1,749 104,167 236,354 11,547 247,901 Revenues recognized at a point in time: Sales of ice cream and other products — 678 — 23,972 — 24,650 (2,873 ) 21,777 Other revenues 245 93 (23 ) 47 — 362 243 605 Total revenues recognized at a point in time 245 771 (23 ) 24,019 — 25,012 (2,630 ) 22,382 Total revenues recognized under ASC 606 116,320 9,746 5,365 25,768 104,167 261,366 8,917 270,283 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 6,581 6,581 Rental income 23,591 767 — 120 — 24,478 — 24,478 Total revenues not subject to ASC 606 23,591 767 — 120 — 24,478 6,581 31,059 Total revenues $ 139,911 10,513 5,365 25,888 104,167 285,844 15,498 301,342 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and gift card breakage revenue, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." Three months ended April 1, 2017 Dunkin' Donuts U.S. Baskin-Robbins U.S. Dunkin' Donuts International Baskin-Robbins International U.S. Advertising Funds Total reportable segment revenues Other (a) Total revenues Revenues recognized under ASC 606 Revenues recognized over time: Royalty income $ 107,175 6,684 4,412 1,431 — 119,702 2,791 122,493 Franchise fees 4,298 206 433 285 — 5,222 — 5,222 Advertising fees and related income — — — — 102,321 102,321 55 102,376 Other revenues 540 2,313 4 — — 2,857 7,909 10,766 Total revenues recognized over time 112,013 9,203 4,849 1,716 102,321 230,102 10,755 240,857 Revenues recognized at a point in time: Sales of ice cream and other products — 526 — 24,404 — 24,930 (2,424 ) 22,506 Other revenues 503 64 (16 ) 46 — 597 149 746 Total revenues recognized at a point in time 503 590 (16 ) 24,450 — 25,527 (2,275 ) 23,252 Total revenues recognized under ASC 606 112,516 9,793 4,833 26,166 102,321 255,629 8,480 264,109 Revenues not subject to ASC 606 Advertising fees and related income — — — — — — 7,827 7,827 Rental income 23,524 784 — 114 — 24,422 — 24,422 Total revenues not subject to ASC 606 23,524 784 — 114 — 24,422 7,827 32,249 Total revenues $ 136,040 10,577 4,833 26,280 102,321 280,051 16,307 296,358 (a) Revenues reported as “Other” include revenues earned through certain licensing revenues, revenues generated from online training programs for franchisees, advertising fees and related income from international advertising funds, and gift card breakage revenue, all of which are not allocated to a specific segment. Additionally, the allocation of royalty income from sales of ice cream and other products is reported as "Other." |
Contract balances | Information about receivables and deferred revenue subject to ASC 606 is as follows (in thousands): March 31, December 30, Balance Sheet Classification Receivables $ 80,681 76,455 Accounts receivable, net and Notes and other receivables, net Deferred revenue: Current $ 29,404 27,724 Deferred revenue—current Long-term 362,125 361,458 Deferred revenue—long term Total $ 391,529 389,182 |
Estimated revenue expected to be recognized in the future related to performance obligations | Estimated revenue expected to be recognized in the future related to performance obligations that are either unsatisfied or partially satisfied at March 31, 2018 is as follows (in thousands): Fiscal year: 2018 (a) $ 22,541 2019 23,727 2020 23,521 2021 23,295 2022 23,028 Thereafter 238,689 Total $ 354,801 (a) Represents the estimate for remainder of fiscal year 2018 which excludes the three months ended March 31, 2018. |
Impacts to prior period information, revenue recognition | Select Cash Flow Information (In thousands) Three months ended April 1, 2017 Previously reported Adjustments for new revenue recognition guidance Restated Net cash used in operating activities $ (9,924 ) 1,424 (8,500 ) Net cash used in investing activities (2,255 ) (1,424 ) (3,679 ) Net cash used in financing activities (21,709 ) — (21,709 ) Decrease in cash, cash equivalents, and restricted cash (33,669 ) — (33,669 ) The new guidance for revenue recognition impacted the Company's previously reported financial statements as follows: Consolidated Balance Sheets December 30, 2017 (In thousands) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Other revenue transactions Restated Assets Current assets: Cash and cash equivalents $ 1,018,317 — — — 1,018,317 Restricted cash 94,047 — — — 94,047 Accounts receivables, net 51,442 — 18,075 — 69,517 Notes and other receivables, net 51,082 — 1,250 — 52,332 Restricted assets of advertising funds 47,373 — (47,373 ) — — Prepaid income taxes 21,879 — 48 — 21,927 Prepaid expenses and other current assets 32,695 — 15,498 — 48,193 Total current assets 1,316,835 — (12,502 ) — 1,304,333 Property and equipment, net 169,005 — 12,537 — 181,542 Equity method investments 140,615 — — — 140,615 Goodwill 888,308 — — — 888,308 Other intangibles assets, net 1,357,157 — — — 1,357,157 Other assets 65,464 — 14 — 65,478 Total assets $ 3,937,384 — 49 — 3,937,433 Liabilities and Stockholders’ Equity (Deficit) Current liabilities: Current portion of long-term debt $ 31,500 — — — 31,500 Capital lease obligations 596 — — — 596 Accounts payable 16,307 — 37,110 — 53,417 Liabilities of advertising funds 58,014 — (58,014 ) — — Deferred revenue 39,395 1,502 (550 ) 4,529 44,876 Other current liabilities 326,078 — 29,032 — 355,110 Total current liabilities 471,890 1,502 7,578 4,529 485,499 Long-term debt, net 3,035,857 — — — 3,035,857 Capital lease obligations 7,180 — — — 7,180 Unfavorable operating leases acquired 9,780 — — — 9,780 Deferred revenue 11,158 328,183 (7,518 ) 29,635 361,458 Deferred income taxes, net 315,249 (91,488 ) — (9,416 ) 214,345 Other long-term liabilities 77,823 — 30 — 77,853 Total long-term liabilities 3,457,047 236,695 (7,488 ) 20,219 3,706,473 Stockholders’ equity (deficit) Preferred stock — — — — — Common stock 90 — — — 90 Additional paid-in-capital 724,114 — — — 724,114 Treasury stock, at cost (1,060 ) — — — (1,060 ) Accumulated deficit (705,007 ) (238,197 ) (196 ) (24,748 ) (968,148 ) Accumulated other comprehensive loss (9,690 ) — 155 — (9,535 ) Stockholders’ equity (deficit) 8,447 (238,197 ) (41 ) (24,748 ) (254,539 ) Total liabilities and stockholders’ equity (deficit) $ 3,937,384 — 49 — 3,937,433 Consolidated Statements of Operations Three months ended April 1, 2017 (In thousands, except per share data) Adjustments for new revenue recognition guidance Previously reported Franchise fees Advertising Ice cream royalty allocation Other revenue transactions Restated Revenues: Franchise fees and royalty income $ 130,069 (5,145 ) — 2,791 — 127,715 Advertising fees and related income — — 110,203 — — 110,203 Rental income 24,422 — — — — 24,422 Sales of ice cream and other products 25,297 — — (2,791 ) — 22,506 Other revenues 10,884 (1,122 ) — — 1,750 11,512 Total revenues 190,672 (6,267 ) 110,203 — 1,750 296,358 Operating costs and expenses: Occupancy expenses—franchised restaurants 14,138 — — — — 14,138 Cost of ice cream and other products 16,922 — — — — 16,922 Advertising expenses — — 111,072 — — 111,072 General and administrative expenses, net 61,235 — (866 ) — — 60,369 Depreciation 5,084 — — — — 5,084 Amortization of other intangible assets 5,327 — — — — 5,327 Long-lived asset impairment charges 47 — — — — 47 Total operating costs and expenses 102,753 — 110,206 — — 212,959 Net income of equity method investments 2,819 — — — — 2,819 Other operating income, net 555 — — — — 555 Operating income 91,293 (6,267 ) (3 ) — 1,750 86,773 Other income (expense), net: Interest income 321 — — — — 321 Interest expense (24,871 ) — — — — (24,871 ) Other gains, net 187 — — — — 187 Total other expense, net (24,363 ) — — — — (24,363 ) Income before income taxes 66,930 (6,267 ) (3 ) — 1,750 62,410 Provision (benefit) for income taxes 19,463 (1,854 ) — — 508 18,117 Net income $ 47,467 (4,413 ) (3 ) — 1,242 44,293 Earnings per share—basic $ 0.52 0.48 Earnings per share—diluted 0.51 0.48 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other current liabilities consisted of the following (in thousands): March 31, December 30, Gift card/certificate liability $ 169,944 228,783 Accrued payroll and benefits 18,402 30,768 Accrued interest 13,823 17,902 Accrued professional costs 5,746 5,527 Accrued advertising expenses 32,778 35,210 Franchisee profit-sharing liability 4,617 13,243 Other 27,081 23,677 Total other current liabilities $ 272,391 355,110 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues by Segment | Revenues by segment were as follows (in thousands): Revenues Three months ended March 31, April 1, Dunkin’ Donuts U.S. $ 139,911 136,040 Dunkin’ Donuts International 5,365 4,833 Baskin-Robbins U.S. 10,513 10,577 Baskin-Robbins International 25,888 26,280 U.S. Advertising Funds 104,167 102,321 Total reportable segment revenues 285,844 280,051 Other 15,498 16,307 Total revenues $ 301,342 296,358 |
Segment Profit by Segment | Segment profit by segment was as follows (in thousands): Segment profit Three months ended March 31, April 1, Dunkin’ Donuts U.S. $ 105,063 101,694 Dunkin’ Donuts International 3,206 1,427 Baskin-Robbins U.S. 7,235 7,383 Baskin-Robbins International 7,441 8,171 U.S. Advertising Funds — — Total reportable segments 122,945 118,675 Corporate and other (27,238 ) (26,528 ) Interest expense, net (30,835 ) (24,550 ) Amortization of other intangible assets (5,375 ) (5,327 ) Long-lived asset impairment charges (501 ) (47 ) Other income (losses), net (327 ) 187 Income before income taxes $ 58,669 62,410 |
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 March 31, April 1, Dunkin’ Donuts International $ (444 ) (90 ) Baskin-Robbins International 1,727 2,026 Total reportable segments 1,283 1,936 Other 750 883 Total net income of equity method investments $ 2,033 2,819 Assets and liabilities of the advertising funds, which are restricted in their use, included in the consolidated balance sheets were as follows (in thousands): March 31, December 30, Accounts receivable, net $ 19,896 18,075 Notes and other receivables, net 1,393 1,250 Prepaid income taxes 62 48 Prepaid expenses and other current assets 19,875 15,498 Total current assets 41,226 34,871 Property, equipment, and software, net 12,380 12,537 Other assets 1,346 14 Total assets $ 54,952 47,422 Accounts payable $ 46,294 37,110 Deferred revenue—current (a) (453 ) (550 ) Other current liabilities 26,036 29,032 Total current liabilities 71,877 65,592 Deferred revenue—long-term (a) (7,345 ) (7,518 ) Other long-term liabilities 27 30 Total liabilities $ 64,559 58,104 (a) Amounts represent franchisee incentives that have been deferred and are being recognized over the terms of the respective franchise agreements. |
Stockholders_ Deficit (Tables)
Stockholders’ Deficit (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 30, 2017 $ (254,539 ) Net income 50,152 Other comprehensive income, net 2,175 Dividends paid on common stock (28,639 ) Exercise of stock options 18,175 Accelerated share repurchases of common stock (650,368 ) Share-based compensation expense 3,204 Other, net (441 ) Balance as of March 31, 2018 $ (860,281 ) |
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 Other Accumulated other comprehensive income (loss) Balance as of December 30, 2017 $ (8,084 ) (1,451 ) (9,535 ) Other comprehensive income, net 1,547 628 2,175 Balance as of March 31, 2018 $ (6,537 ) (823 ) (7,360 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows (in thousands, except for share and per share data): Three months ended March 31, April 1, Net income—basic and diluted $ 50,152 44,293 Weighted average number of common shares: Common—basic 86,451,167 91,656,559 Common—diluted 87,877,254 93,120,231 Earnings per common share: Common—basic $ 0.58 0.48 Common—diluted 0.57 0.48 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | The Company recognized revenues from its equity method investees, consisting of royalty income and sales of ice cream and other products, as follows (in thousands): Three months ended March 31, April 1, B-R 31 Ice Cream Company., Ltd. $ 345 289 BR-Korea Co., Ltd. 946 1,017 Palm Oasis Ventures Pty. Ltd. 705 1,009 $ 1,996 2,315 |
Advertising Funds (Tables)
Advertising Funds (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Assets and Liabilities of Adverting Funds | Net income of equity method investments by reportable segment was as follows (in thousands): Net income (loss) of equity method investments Three months ended March 31, April 1, Dunkin’ Donuts International $ (444 ) (90 ) Baskin-Robbins International 1,727 2,026 Total reportable segments 1,283 1,936 Other 750 883 Total net income of equity method investments $ 2,033 2,819 Assets and liabilities of the advertising funds, which are restricted in their use, included in the consolidated balance sheets were as follows (in thousands): March 31, December 30, Accounts receivable, net $ 19,896 18,075 Notes and other receivables, net 1,393 1,250 Prepaid income taxes 62 48 Prepaid expenses and other current assets 19,875 15,498 Total current assets 41,226 34,871 Property, equipment, and software, net 12,380 12,537 Other assets 1,346 14 Total assets $ 54,952 47,422 Accounts payable $ 46,294 37,110 Deferred revenue—current (a) (453 ) (550 ) Other current liabilities 26,036 29,032 Total current liabilities 71,877 65,592 Deferred revenue—long-term (a) (7,345 ) (7,518 ) Other long-term liabilities 27 30 Total liabilities $ 64,559 58,104 (a) Amounts represent franchisee incentives that have been deferred and are being recognized over the terms of the respective franchise agreements. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)customer | Apr. 01, 2017customer | Dec. 30, 2017USD ($) | |
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Financial reporting and operating period, quarter | 91 days | 91 days | |
Prepaid advertising | $ 19,900 | $ 15,500 | |
Carrying Value and Estimated Fair Value Of Long Term Debt [Abstract] | |||
Term loans, Carrying Value | 3,060,732 | 3,067,357 | |
Term loans, Estimated fair value | $ 3,104,801 | $ 3,156,099 | |
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 | 14.00% | 11.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Concentration Risk, Customer | 1 | 0 | |
Customer Concentration Risk [Member] | Sales [Member] | |||
Summary of Significant Accounting Policies, Narrative [Line Items] | |||
Concentration risk, number of customers | customer | 0 | 0 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Schedule of cash, cash equivalents, and restricted cash (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 | Apr. 01, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 338,461 | $ 1,018,317 | ||
Restricted cash | 82,605 | 94,047 | ||
Restricted cash, included in Other assets | 1,653 | 1,735 | ||
Total cash, cash equivalents, and restricted cash | $ 422,719 | $ 1,114,099 | $ 398,163 | $ 431,832 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | $ 10,807 | $ 10,836 |
Liabilities | 13,644 | 13,543 |
Company-owned life insurance | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 10,807 | 10,836 |
Deferred compensation liabilities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Liabilities | 13,644 | 13,543 |
Significant other observable inputs (Level 2) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 10,807 | 10,836 |
Liabilities | 13,644 | 13,543 |
Significant other observable inputs (Level 2) | Company-owned life insurance | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets | 10,807 | 10,836 |
Significant other observable inputs (Level 2) | Deferred compensation liabilities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Liabilities | $ 13,644 | $ 13,543 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Disclosure Summary Of Significant Accounting Policies Additional Information [Abstract] | ||
Change in diluted earnings per share (in dollars per share) | $ 0.57 | $ 0.48 |
Franchisee contributions, U.S. advertising funds | $ 132,507 | $ 127,715 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Franchise agreements initial term, domestic | P20Y |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Mar. 31, 2018 | Apr. 01, 2017 |
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 301,342 | $ 296,358 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 15,498 | 16,307 | |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 285,844 | 280,051 | |
United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 139,911 | 136,040 | |
United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,513 | 10,577 | |
United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 104,167 | 102,321 | |
International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,365 | 4,833 | |
International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 25,888 | 26,280 | |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 31,059 | 32,249 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,581 | 7,827 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,478 | 24,422 | |
Calculated under Revenue Guidance in Effect before Topic 606 | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 23,591 | 23,524 | |
Calculated under Revenue Guidance in Effect before Topic 606 | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 767 | 784 | |
Calculated under Revenue Guidance in Effect before Topic 606 | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 120 | 114 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,581 | 7,827 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,581 | 7,827 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Advertising fees and related income | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,478 | 24,422 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,478 | 24,422 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 23,591 | 23,524 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 767 | 784 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Calculated under Revenue Guidance in Effect before Topic 606 | Rental income | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 120 | 114 | |
Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 270,283 | 264,109 | |
Accounting Standards Update 2014-09 | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 8,917 | 8,480 | |
Accounting Standards Update 2014-09 | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 261,366 | 255,629 | |
Accounting Standards Update 2014-09 | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 116,320 | 112,516 | |
Accounting Standards Update 2014-09 | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,746 | 9,793 | |
Accounting Standards Update 2014-09 | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 104,167 | 102,321 | |
Accounting Standards Update 2014-09 | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,365 | 4,833 | |
Accounting Standards Update 2014-09 | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 25,768 | 26,166 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 247,901 | 240,857 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 11,547 | 10,755 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 236,354 | 230,102 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 116,075 | 112,013 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 8,975 | 9,203 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 104,167 | 102,321 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,388 | 4,849 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,749 | 1,716 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 126,857 | 122,493 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,134 | 2,791 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 123,723 | 119,702 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 110,833 | 107,175 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,409 | 6,684 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,938 | 4,412 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Royalty income | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,543 | 1,431 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,650 | 5,222 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,650 | 5,222 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,707 | 4,298 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 289 | 206 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 448 | 433 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Franchise fees | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 206 | 285 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 104,426 | 102,376 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 259 | 55 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 104,167 | 102,321 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 104,167 | 102,321 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Advertising fees and related income | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,968 | 10,766 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 8,154 | 7,909 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,814 | 2,857 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 535 | 540 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,277 | 2,313 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2 | 4 | |
Revenues recognized over time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | $ 0 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 23,252 | 22,382 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (2,275) | (2,630) | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 25,527 | 25,012 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 503 | 245 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 590 | 771 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (16) | (23) | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,450 | 24,019 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 746 | 605 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 149 | 243 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 597 | 362 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 503 | 245 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 64 | 93 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (16) | (23) | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Other revenues | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 46 | 47 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 22,506 | 21,777 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (2,424) | (2,873) | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,930 | 24,650 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | United States | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | United States | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 526 | 678 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | United States | Operating Segments | U.S. Advertising Funds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | International | Operating Segments | Dunkin' Donuts | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Revenues recognized at a point in time: | Accounting Standards Update 2014-09 | Sales of ice cream and other products | International | Operating Segments | Baskin-Robbins | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 24,404 | $ 23,972 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 30, 2017 | |
Revenue Recognition [Abstract] | ||
Receivables | $ 80,681,000 | $ 76,455,000 |
Current | 29,404,000 | 27,724,000 |
Long-term | 362,125,000 | 361,458,000 |
Total | 391,529,000 | 389,182,000 |
Deferred revenue, revenue recognized | 8,300,000 | |
Contract with customer, asset | $ 0 | $ 0 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 354,801 |
2018(a) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 22,541 |
2,019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 23,727 |
2,020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 23,521 |
2,021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 23,295 |
2,022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 23,028 |
Thereafter | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | 238,689 |
Restaurants, not yet open | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 64,900 |
Revenue Recognition - Impacts o
Revenue Recognition - Impacts of Revenue Guidance, Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 338,461 | $ 1,018,317 |
Restricted cash | 82,605 | 94,047 |
Accounts receivables, net | 73,927 | 69,517 |
Notes and other receivables, net | 32,409 | 52,332 |
Restricted assets of advertising funds | 0 | |
Prepaid income taxes | 28,907 | 21,927 |
Prepaid expenses and other current assets | 59,533 | 48,193 |
Total current assets | 615,842 | 1,304,333 |
Property and equipment, net | 180,959 | 181,542 |
Equity method investments | 140,944 | 140,615 |
Goodwill | 888,293 | 888,308 |
Other intangibles assets, net | 1,351,272 | 1,357,157 |
Other assets | 66,798 | 65,478 |
Total assets | 3,244,108 | 3,937,433 |
Current liabilities: | ||
Current portion of long-term debt | 31,500 | 31,500 |
Capital lease obligations | 613 | 596 |
Accounts payable | 60,851 | 53,417 |
Liabilities of advertising funds | 0 | |
Deferred revenue | 43,935 | 44,876 |
Other current liabilities | 272,391 | 355,110 |
Total current liabilities | 409,290 | 485,499 |
Long-term debt, net | 3,029,232 | 3,035,857 |
Capital lease obligations | 7,016 | 7,180 |
Unfavorable operating leases acquired | 9,402 | 9,780 |
Deferred revenue | 362,125 | 361,458 |
Deferred income taxes, net | 210,090 | 214,345 |
Other long-term liabilities | 77,234 | 77,853 |
Total long-term liabilities | 3,695,099 | 3,706,473 |
Stockholders’ deficit: | ||
Preferred stock | 0 | 0 |
Common stock | 83 | 90 |
Additional paid-in capital | 522,052 | 724,114 |
Treasury stock, at cost; 26,777 shares as of March 31, 2018 and December 30, 2017 | (1,060) | (1,060) |
Accumulated deficit | (1,373,996) | (968,148) |
Accumulated other comprehensive loss | (7,360) | (9,535) |
Total stockholders’ deficit | (860,281) | (254,539) |
Total liabilities and stockholders’ deficit | $ 3,244,108 | 3,937,433 |
Previously reported | ||
Current assets: | ||
Cash and cash equivalents | 1,018,317 | |
Restricted cash | 94,047 | |
Accounts receivables, net | 51,442 | |
Notes and other receivables, net | 51,082 | |
Restricted assets of advertising funds | 47,373 | |
Prepaid income taxes | 21,879 | |
Prepaid expenses and other current assets | 32,695 | |
Total current assets | 1,316,835 | |
Property and equipment, net | 169,005 | |
Equity method investments | 140,615 | |
Goodwill | 888,308 | |
Other intangibles assets, net | 1,357,157 | |
Other assets | 65,464 | |
Total assets | 3,937,384 | |
Current liabilities: | ||
Current portion of long-term debt | 31,500 | |
Capital lease obligations | 596 | |
Accounts payable | 16,307 | |
Liabilities of advertising funds | 58,014 | |
Deferred revenue | 39,395 | |
Other current liabilities | 326,078 | |
Total current liabilities | 471,890 | |
Long-term debt, net | 3,035,857 | |
Capital lease obligations | 7,180 | |
Unfavorable operating leases acquired | 9,780 | |
Deferred revenue | 11,158 | |
Deferred income taxes, net | 315,249 | |
Other long-term liabilities | 77,823 | |
Total long-term liabilities | 3,457,047 | |
Stockholders’ deficit: | ||
Preferred stock | 0 | |
Common stock | 90 | |
Additional paid-in capital | 724,114 | |
Treasury stock, at cost; 26,777 shares as of March 31, 2018 and December 30, 2017 | (1,060) | |
Accumulated deficit | (705,007) | |
Accumulated other comprehensive loss | (9,690) | |
Total stockholders’ deficit | 8,447 | |
Total liabilities and stockholders’ deficit | 3,937,384 | |
Accounting Standards Update 2014-09 | Adjustments for new revenue recognition guidance | Franchise fees | ||
Current liabilities: | ||
Deferred revenue | 1,502 | |
Total current liabilities | 1,502 | |
Deferred revenue | 328,183 | |
Deferred income taxes, net | (91,488) | |
Total long-term liabilities | 236,695 | |
Stockholders’ deficit: | ||
Accumulated deficit | (238,197) | |
Total stockholders’ deficit | (238,197) | |
Accounting Standards Update 2014-09 | Adjustments for new revenue recognition guidance | Advertising | ||
Current assets: | ||
Accounts receivables, net | 18,075 | |
Notes and other receivables, net | 1,250 | |
Restricted assets of advertising funds | (47,373) | |
Prepaid income taxes | 48 | |
Prepaid expenses and other current assets | 15,498 | |
Total current assets | (12,502) | |
Property and equipment, net | 12,537 | |
Other assets | 14 | |
Total assets | 49 | |
Current liabilities: | ||
Accounts payable | 37,110 | |
Liabilities of advertising funds | (58,014) | |
Deferred revenue | (550) | |
Other current liabilities | 29,032 | |
Total current liabilities | 7,578 | |
Deferred revenue | (7,518) | |
Other long-term liabilities | 30 | |
Total long-term liabilities | (7,488) | |
Stockholders’ deficit: | ||
Accumulated deficit | (196) | |
Accumulated other comprehensive loss | 155 | |
Total stockholders’ deficit | (41) | |
Total liabilities and stockholders’ deficit | 49 | |
Accounting Standards Update 2014-09 | Adjustments for new revenue recognition guidance | Other revenue transactions | ||
Current liabilities: | ||
Deferred revenue | 4,529 | |
Total current liabilities | 4,529 | |
Deferred revenue | 29,635 | |
Deferred income taxes, net | (9,416) | |
Total long-term liabilities | 20,219 | |
Stockholders’ deficit: | ||
Accumulated deficit | (24,748) | |
Total stockholders’ deficit | $ (24,748) |
Revenue Recognition - Impacts38
Revenue Recognition - Impacts of Revenue Guidance, Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Revenues: | ||
Franchise fees and royalty income | $ 132,507 | $ 127,715 |
Advertising fees and related income | 110,203 | |
Rental income | 24,478 | 24,422 |
Sales of ice cream and other products | 21,777 | 22,506 |
Other revenues | 11,573 | 11,512 |
Revenues | 301,342 | 296,358 |
Operating costs and expenses: | ||
Occupancy expenses—franchised restaurants | 13,980 | 14,138 |
Cost of ice cream and other products | 16,864 | 16,922 |
Advertising expenses | 111,972 | 111,072 |
General and administrative expenses, net | 59,824 | 60,369 |
Depreciation | 5,033 | 5,084 |
Amortization of other intangible assets | 5,375 | 5,327 |
Long-lived asset impairment charges | 501 | 47 |
Total operating costs and expenses | 213,549 | 212,959 |
Net income of equity method investments | 2,033 | 2,819 |
Other operating income, net | 5 | 555 |
Operating income | 89,831 | 86,773 |
Other income (expense), net: | ||
Interest income | 1,642 | 321 |
Interest expense | (32,477) | (24,871) |
Other income (losses), net | (327) | 187 |
Total other expense, net | (31,162) | (24,363) |
Income before income taxes | 58,669 | 62,410 |
Provision for income taxes | 8,517 | 18,117 |
Net income | $ 50,152 | $ 44,293 |
Common-basic (in dollars per share) | $ 0.58 | $ 0.48 |
Common-diluted (in dollars per share) | $ 0.57 | $ 0.48 |
Previously reported | ||
Revenues: | ||
Franchise fees and royalty income | $ 130,069 | |
Advertising fees and related income | 0 | |
Rental income | 24,422 | |
Sales of ice cream and other products | 25,297 | |
Other revenues | 10,884 | |
Revenues | 190,672 | |
Operating costs and expenses: | ||
Occupancy expenses—franchised restaurants | 14,138 | |
Cost of ice cream and other products | 16,922 | |
Advertising expenses | 0 | |
General and administrative expenses, net | 61,235 | |
Depreciation | 5,084 | |
Amortization of other intangible assets | 5,327 | |
Long-lived asset impairment charges | 47 | |
Total operating costs and expenses | 102,753 | |
Net income of equity method investments | 2,819 | |
Other operating income, net | 555 | |
Operating income | 91,293 | |
Other income (expense), net: | ||
Interest income | 321 | |
Interest expense | (24,871) | |
Other income (losses), net | 187 | |
Total other expense, net | (24,363) | |
Income before income taxes | 66,930 | |
Provision for income taxes | 19,463 | |
Net income | $ 47,467 | |
Common-basic (in dollars per share) | $ 0.52 | |
Common-diluted (in dollars per share) | $ 0.51 | |
Accounting Standards Update 2014-09 | Franchise fees | Adjustments for new revenue recognition guidance | ||
Revenues: | ||
Franchise fees and royalty income | $ (5,145) | |
Other revenues | (1,122) | |
Revenues | (6,267) | |
Operating costs and expenses: | ||
Operating income | (6,267) | |
Other income (expense), net: | ||
Income before income taxes | (6,267) | |
Provision for income taxes | (1,854) | |
Net income | (4,413) | |
Accounting Standards Update 2014-09 | Ice cream royalty allocation | Adjustments for new revenue recognition guidance | ||
Revenues: | ||
Franchise fees and royalty income | 2,791 | |
Sales of ice cream and other products | (2,791) | |
Accounting Standards Update 2014-09 | Other revenue transactions | Adjustments for new revenue recognition guidance | ||
Revenues: | ||
Other revenues | 1,750 | |
Revenues | 1,750 | |
Operating costs and expenses: | ||
Operating income | 1,750 | |
Other income (expense), net: | ||
Income before income taxes | 1,750 | |
Provision for income taxes | 508 | |
Net income | 1,242 | |
Accounting Standards Update 2014-09 | Advertising | Adjustments for new revenue recognition guidance | ||
Revenues: | ||
Advertising fees and related income | 110,203 | |
Revenues | 110,203 | |
Operating costs and expenses: | ||
Advertising expenses | 111,072 | |
General and administrative expenses, net | (866) | |
Total operating costs and expenses | 110,206 | |
Operating income | (3) | |
Other income (expense), net: | ||
Income before income taxes | (3) | |
Net income | $ (3) |
Revenue Recognition - Impacts39
Revenue Recognition - Impacts of Revenue Guidance, Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net cash used in operating activities | $ (16,203) | $ (8,500) |
Net cash used in investing activities | (5,803) | (3,679) |
Net cash used in financing activities | (669,438) | (21,709) |
Decrease in cash, cash equivalents, and restricted cash | $ (691,380) | (33,669) |
Previously reported | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net cash used in operating activities | (9,924) | |
Net cash used in investing activities | (2,255) | |
Net cash used in financing activities | (21,709) | |
Decrease in cash, cash equivalents, and restricted cash | (33,669) | |
Accounting Standards Update 2014-09 | Adjustments for new revenue recognition guidance | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net cash used in operating activities | 1,424 | |
Net cash used in investing activities | $ (1,424) |
Debt - Debt Schedule (Details)
Debt - Debt Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Debt issuance costs, net of amortization | $ (33,268) | $ (34,518) |
Total debt | 3,060,732 | 3,067,357 |
Current portion of long-term debt | 31,500 | 31,500 |
Long-term debt, net | 3,029,232 | 3,035,857 |
2015 Class A-2-II Notes | ||
Debt Instrument [Line Items] | ||
Debt, gross | 1,697,500 | 1,701,875 |
2017 Class A-2-I Notes | ||
Debt Instrument [Line Items] | ||
Debt, gross | 598,500 | 600,000 |
2017 Class A-2-II Notes | ||
Debt Instrument [Line Items] | ||
Debt, gross | $ 798,000 | $ 800,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Standby letters of credit | $ 32,400,000 | $ 32,300,000 |
Amounts drawn on letters of credit | $ 0 | $ 0 |
2015 Class A-2-II Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, debt | 3.98% | |
2017 Class A-2-I Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, debt | 3.629% | |
2017 Class A-2-II Notes | ||
Debt Instrument [Line Items] | ||
Interest rate, debt | 4.03% | |
Variable Funding Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, face | $ 150,000,000 |
Other Current Liabilities (Deta
Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Other Liabilities, Current [Abstract] | ||
Gift card/certificate liability | $ 169,944 | $ 228,783 |
Accrued payroll and benefits | 18,402 | 30,768 |
Accrued interest | 13,823 | 17,902 |
Accrued professional costs | 5,746 | 5,527 |
Accrued Advertising, Current | 32,778 | 35,210 |
Franchisee profit-sharing liability | 4,617 | 13,243 |
Other | 27,081 | 23,677 |
Total other current liabilities | $ 272,391 | $ 355,110 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Segment Information - Revenues
Segment Information - Revenues by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ 301,342 | $ 296,358 |
Other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 15,498 | 16,307 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 285,844 | 280,051 |
Operating Segments | Dunkin' Donuts | United States | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 139,911 | 136,040 |
Operating Segments | Dunkin' Donuts | International | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 5,365 | 4,833 |
Operating Segments | Baskin-Robbins | United States | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 10,513 | 10,577 |
Operating Segments | Baskin-Robbins | International | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | 25,888 | 26,280 |
Operating Segments | U.S. Advertising Funds | United States | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total revenues | $ 104,167 | $ 102,321 |
Segment Information - Segment P
Segment Information - Segment Profit by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Corporate and other | $ (27,238) | $ (26,528) |
Interest expense, net | (30,835) | (24,550) |
Amortization of other intangible assets | (5,375) | (5,327) |
Long-lived asset impairment charges | (501) | (47) |
Other income (losses), net | (327) | 187 |
Income before income taxes | 58,669 | 62,410 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reportable segment profit | 122,945 | 118,675 |
Operating Segments | Dunkin' Donuts | United States | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reportable segment profit | 105,063 | 101,694 |
Operating Segments | Dunkin' Donuts | International | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reportable segment profit | 3,206 | 1,427 |
Operating Segments | Baskin-Robbins | United States | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reportable segment profit | 7,235 | 7,383 |
Operating Segments | Baskin-Robbins | International | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reportable segment profit | 7,441 | 8,171 |
Operating Segments | U.S. Advertising Funds | United States | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Reportable segment profit | $ 0 | $ 0 |
Segment Information - Equity in
Segment Information - Equity in Net Income of Joint Ventures Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments | $ 2,033 | $ 2,819 |
Other | ||
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments | 750 | 883 |
Operating Segments | ||
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments | 1,283 | 1,936 |
Operating Segments | Dunkin' Donuts | International | ||
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments | (444) | (90) |
Operating Segments | Baskin-Robbins | International | ||
Segment Reporting Disclosure [Line Items] | ||
Net income of equity method investments | $ 1,727 | $ 2,026 |
Stockholders_ Deficit - Additio
Stockholders’ Deficit - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Apr. 01, 2017 | |
Class of Stock [Line Items] | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 650,368,000 | |||
Payments for Repurchase of Common Stock | $ 650,368,000 | $ 0 | ||
Dividend per share of common stock paid (in usd per share) | $ 0.3475 | |||
Dividends paid on common stock | $ 28,639,000 | $ 29,621,000 | ||
Dividend per share of common stock declared (in usd per share) | $ 0.3475 | $ 0.3225 | ||
Subsequent Event [Member] | ||||
Class of Stock [Line Items] | ||||
Dividend per share of common stock declared (in usd per share) | $ 0.3475 | |||
2011 Plan | ||||
Class of Stock [Line Items] | ||||
Options granted | 909,027 | |||
Restricted stock units granted (in shares) | 30,974 | |||
Options, grant date fair value (in usd per share) | $ 10.44 | |||
Grant price (in usd per share) | 59.60 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 65.52 | |||
Compensation expense related to share-based awards | $ 3,200,000 | $ 3,500,000 | ||
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) | 50,838 | |||
Share-based compensations, vesting period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 56.76 | |||
2011 Plan | Phantom Share Units (PSUs) [Member] | ||||
Class of Stock [Line Items] | ||||
Restricted stock units granted (in shares) | 67,993 | |||
2011 Plan | Performance Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Restricted stock units granted (in shares) | 37,019 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 57.10 | |||
Accelerated Share Repurchase Agreement [Member] | ||||
Class of Stock [Line Items] | ||||
Payments for Repurchase of Common Stock | $ 650,000,000 | |||
Treasury Stock, Shares, Acquired | 8,478,722 | |||
ASR repurchase one | Additional Paid-in Capital [Member] | Accelerated Share Repurchase Agreement [Member] | ||||
Class of Stock [Line Items] | ||||
Stockholders' equity, period increase (decrease) | $ (65,200,000) | |||
ASR repurchase one | Accumulated Deficit [Member] | Accelerated Share Repurchase Agreement [Member] | ||||
Class of Stock [Line Items] | ||||
Stockholders' equity, period increase (decrease) | $ 455,100,000 | |||
ASR repurchase one | Treasury Stock [Member] | Accelerated Share Repurchase Agreement [Member] | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Retired | 8,478,722 | |||
ASR repurchase two | Additional Paid-in Capital [Member] | Accelerated Share Repurchase Agreement [Member] | ||||
Class of Stock [Line Items] | ||||
Stockholders' equity, period increase (decrease) | $ 130,000,000 |
Stockholders_ Deficit - Changes
Stockholders’ Deficit - Changes in Total Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance as of December 30, 2017 | $ (254,539) | |
Net income attributable to Dunkin' Brands | 50,152 | |
Other comprehensive income, net | 2,175 | $ 9,076 |
Dividends paid on common stock | (28,639) | |
Exercise of stock options | 18,175 | |
Share-based compensation expense | 3,204 | |
Other, net | (441) | |
Balance as of March 31, 2018 | $ (860,281) |
Stockholders_ Deficit - Chang49
Stockholders’ Deficit - Changes in Components of Accumulated Other Comprehensive Income (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 30, 2017 | $ (9,535) |
Other comprehensive income, net | 2,175 |
Balance as of March 31, 2018 | (7,360) |
Effect of foreign currency translation | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 30, 2017 | (8,084) |
Other comprehensive income, net | 1,547 |
Balance as of March 31, 2018 | (6,537) |
Other | |
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance as of December 30, 2017 | (1,451) |
Other comprehensive income, net | 628 |
Balance as of March 31, 2018 | $ (823) |
Earnings Per Shares - Additiona
Earnings Per Shares - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Dilutive securities, effect on basic earnings per share, including options and restrictive units | 1,426,087 | 1,463,672 |
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) | 258,019 | 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 | 1,883,298 | 2,135,477 |
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 | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Dunkin' Brands-basic and diluted | $ 50,152 | $ 44,293 |
Weighted average number of common shares: | ||
Common-basic (in shares) | 86,451,167 | 91,656,559 |
Common-diluted (in shares) | 87,877,254 | 93,120,231 |
Earnings (loss) per common share: | ||
Common-basic (in dollars per share) | $ 0.58 | $ 0.48 |
Common-diluted (in dollars per share) | $ 0.57 | $ 0.48 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Dec. 30, 2017 |
Commitments and Contingencies Disclosure [Line Items] | ||
Standby letters of credit | $ 32,400,000 | $ 32,300,000 |
Amounts drawn on letters of credit | 0 | 0 |
Contingent liabilities related to legal matters | 1,600,000 | 3,600,000 |
Supply Commitment | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Guarantee obligation, maximum exposure | $ 129,900,000 | $ 116,700,000 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Sep. 26, 2015 | Dec. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 1,996 | $ 2,315 | ||
Accounts receivable, related-parties | 4,200 | $ 5,100 | ||
Payments to related-parties | 1,000 | 1,100 | ||
B-R 31 Ice Cream Company., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 345 | 289 | ||
BR-Korea Co., Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 946 | $ 1,017 | ||
Palm Oasis Ventures Pty. Ltd. | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 705 | $ 1,009 |
Advertising Funds (Details)
Advertising Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Accounts receivables, net | $ 73,927 | $ 69,517 |
Notes and other receivables, net | 32,409 | 52,332 |
Prepaid income taxes | 28,907 | 21,927 |
Prepaid expenses and other current assets | 59,533 | 48,193 |
Total current assets | 615,842 | 1,304,333 |
Property and equipment, net | 180,959 | 181,542 |
Other assets | 66,798 | 65,478 |
Total assets | 3,244,108 | 3,937,433 |
Accounts payable | 60,851 | 53,417 |
Deferred revenue | 43,935 | 44,876 |
Other current liabilities | 272,391 | 355,110 |
Total current liabilities | 409,290 | 485,499 |
Deferred revenue | 362,125 | 361,458 |
Other long-term liabilities | 77,234 | 77,853 |
Total long-term liabilities | 3,695,099 | 3,706,473 |
U.S. Advertising Funds | ||
Segment Reporting Information [Line Items] | ||
Accounts receivables, net | 19,896 | 18,075 |
Notes and other receivables, net | 1,393 | 1,250 |
Prepaid income taxes | 62 | 48 |
Prepaid expenses and other current assets | 19,875 | 15,498 |
Total current assets | 41,226 | 34,871 |
Property and equipment, net | 12,380 | 12,537 |
Other assets | 1,346 | 14 |
Total assets | 54,952 | 47,422 |
Accounts payable | 46,294 | 37,110 |
Deferred revenue | (453) | (550) |
Other current liabilities | 26,036 | 29,032 |
Total current liabilities | 71,877 | 65,592 |
Deferred revenue | (7,345) | (7,518) |
Other long-term liabilities | 27 | 30 |
Total long-term liabilities | $ 64,559 | $ 58,104 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Tax Cuts And Jobs Act Of 2017, Income tax benefit provision | $ 143.4 |
Tax Cuts And Jobs Act Of 2017, incomplete accounting, change in tax rate, deferred tax asset, provisional income tax expense | 145.1 |
Tax Cuts And Jobs Act Of 2017, incomplete accounting, transition tax for accumulated foreign earnings, provisional liability | $ 1.7 |