Income Taxes (Tables)

12 Months Ended

Dec. 28, 2025

Schedule of Income (Loss) Before Income Taxes

(Loss)/income before income taxes consists of:


	Fiscal Years Ended
	December 28, 2025		December 29, 2024		December 31, 2023
Domestic	$	(452,522)	$	20,439	$	(59,174)
Foreign	(92,077)		(670)		18,180
(Loss)/income before income taxes	$	(544,599)	$	19,769	$	(40,994)

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes are as follows:


	Fiscal Years Ended
	December 28, 2025		December 29, 2024		December 31, 2023
Current:
Federal	$	(4)	$	112	$	(2,213)
State	341		(147)		138
Foreign	14,395		12,922		16,214
Total current	$	14,732	$	12,887	$	14,139
Deferred and other:
Federal	$	(26,003)	$	6,232	$	(10,971)
State	(1,125)		(619)		(2,552)
Foreign	(8,424)		(2,546)		(4,963)
Total deferred and other	$	(35,552)	$	3,067	$	(18,486)
Income tax (benefit)/expense	$	(20,820)	$	15,954	$	(4,347)

Schedule of Effective Income Tax Rate Reconciliation

Following the adoption of ASU 2023-09, the reconciliation of income taxes at the U.S. federal statutory income tax rate to the Company’s income tax provision (benefit) is as follows:


	December 28, 2025
	Amount		Percent
U.S. federal statutory rate	$	(114,366)	21.0	%
State and local income taxes, net of federal income tax effect(1)	(620)		0.1	%
Foreign tax effects:
United Kingdom
Goodwill impairment	14,485		(2.7)	%
Other	813		(0.1)	%
Other foreign jurisdictions	10,096		(1.9)	%
Effect of cross-border tax laws	(396)		0.1	%
Tax credits	(404)		0.1	%
Changes in valuation allowances	8,873		(1.6)	%
Nontaxable or nondeductible items:
Goodwill impairment	52,216		(9.6)	%
Other	4,873		(0.9)	%
Changes in unrecognized tax benefits	222		(0.1)	%
Other adjustments	3,388		(0.6)	%
Effective tax rate	$	(20,820)	3.8	%

(1)State taxes in California, Florida, Georgia, New York City, South Carolina, Tennessee, and Virginia made up the majority (greater than 50 percent) of the tax effect in this category.

A reconciliation of the statutory U.S. federal income tax rate and the Company’s effective tax rate for years prior to the adoption of ASU 2023-09 is as follows:



	December 29, 2024		December 31, 2023
Statutory federal rate	21.0	%	21.0	%
State income taxes, net of federal benefit	0.2		6.3
Foreign operations	22.5		(11.0)
Change in valuation allowance	13.6		(2.0)
Noncontrolling interest	1.1		(0.2)
Impact of uncertain tax positions	(3.3)		6.2
Other permanent differences	4.2		(0.6)
Deferred adjustments	0.5		(3.8)
Share-based compensation	25.4		(6.3)
Other	(4.5)		1.0
Effective tax rate	80.7	%	10.6	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences are as follows:


	As of
	December 28, 2025		December 29, 2024
Deferred income tax assets:
Disallowed interest expense	44,764		35,291
Lease liabilities	115,016		117,619
Foreign net operating loss carryforward	5,955		3,024
Federal net operating loss carryforward	19,110		10,541
Federal tax credits	13,606		18,058
State net operating loss and credit carryforwards	11,446		10,702
Other	30,600		35,033
Gross deferred income tax assets	240,497		230,268
Valuation allowance	(41,665)		(30,617)
Deferred income tax assets, net of valuation allowance	$	198,832	$	199,651
Deferred income tax liabilities:
Intangible assets	$	(150,145)	$	(157,245)
Subsidiary investments	—		(19,070)
Property and equipment	(16,955)		(20,484)
Foreign reacquired franchise rights	(27,500)		(23,112)
Lease right of use assets	(97,956)		(106,592)
Other	(1,601)		(1,824)
Gross deferred income tax liabilities	(294,157)		(328,327)
Net deferred income tax liabilities	$	(95,325)	$	(128,676)

The components of the deferred tax assets and liabilities as of December 28, 2025 exclude $2.3 million of deferred tax assets classified as held for sale.

The presentation of deferred income taxes on the Consolidated Balance Sheets is as follows:


	As of
	December 28, 2025		December 29, 2024
Included in:
Other assets	$	911	$	2,069
Deferred income taxes, net	(96,236)		(130,745)
Net deferred income tax liabilities	$	(95,325)	$	(128,676)

Schedule of Components of Income Taxes Paid, Net of Refunds

The amounts of cash income taxes paid by the Company were as follows:


	As of
	December 28, 2025
Federal	$	152
State	724
Foreign:
Australia	1,275
Canada	1,478
Japan	2,019
Mexico	3,302
New Zealand	545
South Korea	861
United Kingdom	(3,623)
Other	3,082
Total	$	9,815

Schedule of Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:


	As of
	December 28, 2025		December 29, 2024
Unrecognized tax benefits at beginning of year	$	9,903	$	10,536

Decreases related to positions taken in prior years	(74)		(559)
Decreases related to positions taken in prior years due to lapse of statute	(226)		(74)
Unrecognized tax benefits at end of year	$	9,603	$	9,903