
(in thousands)	June 30, 2026		December 31, 2025
Gift card and loyalty programs	$	50,155	$	62,014
Initial unearned franchise fees and other1	3,529		2,562

Total deferred revenue	$	53,684	$	64,576

1 Initial unearned franchise fees are recorded as a contract liability, and revenue is recognized ratably over the term of the franchise agreement, which is generally ten years.


	Six Months Ended June 30,
(in thousands)	2026		2025 3
Beginning balance	$	64,576	$	50,883
Revenue deferred 1	221,197		265,623
Revenue recognized 2	(232,412)		(265,111)


Other deferred revenue, net	323		(122)
Ending balance	53,684		51,273
Less: current portion	(47,160)		(43,533)
Deferred revenue, net of current portion	$	6,524	$	7,740

1 Revenue deferred includes gift card activations, loyalty app cash loads and loyalty points/rewards earned.

2 Revenue recognized includes redemptions of gift cards, loyalty app cash loads and rewards, as well as breakage.

3 Beginning in 2026, complimentary birthday drinks and other promotional awards, which are not issued in connection with a purchase, have been excluded from the population of deferred revenue activity. For the six months ended June 30, 2025, complimentary birthday drinks and other promotional awards activity of revenue deferred and revenue recognized was approximately $49.0 million and $48.5 million, respectively. This change did not have a material effect on the ending deferred revenue balance.

Revenue recognized during the three and six months ended June 30, 2026 and 2025, respectively, that was included in the deferred revenue liability balances at the beginning of the period, are shown below.


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Gift card redemptions 1	$	3,078	$	1,315	$	8,640	$	6,407