Information on segments and a reconciliation of operating profit to income before income taxes is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | Franchise | | Company Restaurants | | Rental | | Financing | | Total | | (In millions) | | Revenues | $ | 174.7 | | | $ | 28.2 | | | $ | 27.5 | | | $ | 0.3 | | | $ | 230.8 | | | Less: Advertising revenue | 73.5 | | — | | — | | — | | 73.5 | | Revenues excluding advertising revenue | 101.2 | | | 28.2 | | | 27.5 | | | 0.3 | | | 157.3 | | | | | | | | | | | | | Less: | | | | | | | | | | | Interest expense from finance leases | — | | — | | 0.7 | | — | | 0.7 | | Depreciation and amortization | 0.2 | | 0.8 | | 2.5 | | — | | 3.4 | Other segment items(a) | 12.8 | | 30.2 | | 18.0 | | 0.1 | | 61.0 | | Segment profit | 88.3 | | (2.7) | | 6.4 | | 0.2 | | 92.2 | | Stock based compensation (direct) | 1.0 | | — | | — | | — | | 1.0 | | Gain on disposition of assets | 0.0 | | — | | — | | — | | 0.0 | | Other G&A expenses (direct and allocated) | 32.0 | | 1.9 | | — | | — | | 33.9 | | Segment operating profit (loss) | $ | 55.3 | | | $ | (4.6) | | | $ | 6.4 | | | $ | 0.2 | | | $ | 57.3 | | | | | | | | | | | | | Reconciliation of segment operating profit | | | | | | | | | | | Segment operating profit | | | | | | | | | $ | 57.3 | | | Depreciation and amortization (unallocated) | | | | | | | | | 4.4 | | Stock based compensation (unallocated) | | | | | | | | | 2.2 | | Other G&A expenses (unallocated) | | | | | | | | | 9.2 | | Interest expense, net | | | | | | | | | 17.8 | | Closure and impairment charges | | | | | | | | | 1.2 | | Amortization of intangible assets | | | | | | | | | 2.7 | | Loss on extinguishment of debt | | | | | | | | | 0.9 | | Income before income taxes | | | | | | | | | $ | 18.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | Franchise | | Company Restaurants | | Rental | | Financing | | Total | | (In millions) | | Revenues | $ | 340.9 | | | $ | 49.8 | | | $ | 54.2 | | | $ | 0.6 | | | $ | 445.6 | | | Less: Advertising revenue | 144.0 | | — | | — | | — | | 144.0 | | Revenues excluding advertising revenue | 196.9 | | | 49.8 | | | 54.2 | | | 0.6 | | | 301.6 | | | | | | | | | | | | | Less: | | | | | | | | | | | Interest expense from finance leases | — | | — | | 1.4 | | — | | 1.4 | | Depreciation and amortization | 0.3 | | 1.3 | | 4.9 | | — | | 6.5 | Other segment items(a) | 23.3 | | 51.6 | | 36.1 | | 0.1 | | 111.2 | | Segment profit | 173.3 | | (3.1) | | 11.8 | | 0.5 | | 182.5 | | Stock based compensation (direct) | 2.1 | | — | | — | | — | | 2.1 | | Gain on disposition of assets | (0.1) | | — | | — | | — | | (0.1) | | Other G&A expenses (direct and allocated) | 63.2 | | 3.3 | | — | | — | | 66.5 | | Segment operating profit (loss) | $ | 108.1 | | | $ | (6.4) | | | $ | 11.8 | | | $ | 0.5 | | | $ | 114.1 | | | | | | | | | | | | | Reconciliation of segment operating profit | | | | | | | | | | | Segment operating profit | | | | | | | | | $ | 114.1 | | | Depreciation and amortization (unallocated) | | | | | | | | | 8.9 | | Stock based compensation (unallocated) | | | | | | | | | 4.6 | | Other G&A expenses (unallocated) | | | | | | | | | 20.1 | | Interest expense, net | | | | | | | | | 35.5 | | Closure and impairment charges | | | | | | | | | 7.0 | | Amortization of intangible assets | | | | | | | | | 5.4 | | Loss on extinguishment of debt | | | | | | | | | 0.9 | | Income before income taxes | | | | | | | | | $ | 31.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2024 | | Franchise | | Company Restaurants | | Rental | | Financing | | Total | | (In millions) | | Revenues | $ | 176.5 | | | $ | 0.3 | | | $ | 29.0 | | | $ | 0.5 | | | $ | 206.3 | | | Less: Advertising revenue | 74.5 | | — | | — | | — | | 74.5 | | Revenues excluding advertising revenue | 102.0 | | 0.3 | | 29.0 | | 0.5 | | 131.7 | | | | | | | | | | | | Less: | | | | | | | | | | | Interest expense from finance leases | — | | — | | 0.7 | | — | | 0.7 | | Depreciation and amortization | 0.1 | | 0.0 | | 2.6 | | — | | 2.7 | Other segment items(a) | 10.3 | | 0.3 | | 18.3 | | 0.1 | | 29.0 | | Segment profit | 91.5 | | 0.0 | | 7.4 | | 0.4 | | 99.3 | | Stock based compensation (direct) | 1.5 | | — | | — | | — | | 1.5 | | Loss on disposition of assets | 0.2 | | — | | — | | — | | 0.2 | | Other G&A expenses (direct and allocated) | 29.6 | | — | | — | | — | | 29.6 | | Segment operating profit | $ | 60.3 | | | $ | 0.0 | | | $ | 7.4 | | | $ | 0.4 | | | $ | 68.0 | | | | | | | | | | | | | Reconciliation of segment operating profit | | | | | | | | | | | Segment operating profit | | | | | | | | | $ | 68.0 | | | Depreciation and amortization (unallocated) | | | | | | | | | 4.2 | | Stock based compensation (unallocated) | | | | | | | | | 2.4 | | Other G&A expenses (unallocated) | | | | | | | | | 9.2 | | Interest expense, net | | | | | | | | | 17.8 | | Closure and impairment charges | | | | | | | | | 0.4 | | Amortization of intangible assets | | | | | | | | | 2.7 | | Loss on extinguishment of debt | | | | | | | | | — | | Income before income taxes | | | | | | | | | $ | 31.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2024 | | Franchise | | Company Restaurants | | Rental | | Financing | | Total | | (In millions) | | Revenues | $ | 352.4 | | | $ | 0.6 | | | $ | 58.6 | | | $ | 1.0 | | | $ | 412.5 | | | Less: Advertising revenue | 149.8 | | — | | — | | — | | 149.8 | | Revenues excluding advertising revenue | 202.6 | | 0.6 | | 58.6 | | 1.0 | | 262.7 | | | | | | | | | | | | Less: | | | | | | | | | | | Interest expense from finance leases | — | | — | | 1.5 | | — | | 1.5 | | Depreciation and amortization | 0.2 | | 0.0 | | 5.2 | | — | | 5.5 | Other segment items(a) | 21.4 | | 0.6 | | 36.9 | | 0.2 | | 59.1 | | Segment profit | 180.9 | | 0.0 | | 14.9 | | 0.8 | | 196.7 | | Stock based compensation (direct) | 3.3 | | — | | — | | — | | 3.3 | | Gain on disposition of assets | (0.1) | | — | | — | | — | | (0.1) | | Other G&A expenses (direct and allocated) | 60.1 | | 0.0 | | — | | — | | 60.1 | | Segment operating profit | $ | 117.7 | | | $ | 0.0 | | | $ | 14.9 | | | $ | 0.8 | | | $ | 133.4 | | | | | | | | | | | | | Reconciliation of segment operating profit | | | | | | | | | | | Segment operating profit | | | | | | | | | $ | 133.4 | | | Depreciation and amortization (unallocated) | | | | | | | | | 8.5 | | Stock based compensation (unallocated) | | | | | | | | | 5.5 | | Other G&A expenses (unallocated) | | | | | | | | | 21.7 | | Interest expense, net | | | | | | | | | 35.9 | | Closure and impairment charges | | | | | | | | | 1.1 | | Amortization of intangible assets | | | | | | | | | 5.4 | | Loss on extinguishment of debt | | | | | | | | | — | | Income before income taxes | | | | | | | | | $ | 55.3 | |
(a) For each reportable segment, the other segment item category includes: Franchise: Costs of proprietary products, bad debt expense, pre-opening training expenses and other franchise-related costs. Company Restaurants: Operating expenses at company-owned restaurants and include food, beverage, labor, benefits, utilities, rent and other operating costs. Rental: Costs of operating leases and interest expense of finance leases on franchisee-operated restaurants. Financing: Costs of restaurant equipment.
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