v3.26.3
REVENUE RECOGNITION
 9 Months Ended
Sep. 27, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
The following table represents a disaggregation of revenue for the following periods:

SuccessorPredecessor
Thirteen Weeks EndedThirty-Nine Weeks Ended September 27, 2026Period from January 16 to September 28, 2025Period from January 1 to January 15, 2025
September 27, 2026September 28, 2025
Royalties$76 $69 $219 $192 $10 
Advertising revenue57 53 165 147 7 
System support revenue60 53 174 143 9 
Company-owned stores sales9 9 34 27 2 
Other revenues7 6 10 9 — 
Total revenues$209 $190 $602 $518 $28 
Deferred Revenues
Deferred revenue, or contract liabilities, consists of unearned fees resulting from initial franchise fees and upfront area development fees received from franchise owners, which are generally recognized on a straight-line basis over the term of the franchise agreement, and deferred revenue related to system support revenues, with changes in the balance primarily driven by annual contract renegotiations and the timing of revenue recognition. The Company may also recognize unamortized franchise fees and upfront fees when a contract with a franchise owner is modified and is accounted for as a termination of the existing contract. The Company classifies these contract liabilities within Accrued expenses and other current liabilities and Other non-current liabilities on the Condensed Consolidated Balance Sheets.
The following table reflects the change in deferred revenues on a consolidated basis:

SuccessorPredecessor
Thirty-Nine Weeks Ended September 27, 2026Period from January 16 to September 28, 2025Period from January 1 to January 15, 2025
Beginning balance$20 $19 $18 
Recognized during period and included in the contract liability balance at the beginning of the year(3)(3)— 
Cash receipts, net of amounts recognized during the period22 13 1 
Ending balance$39 $29 $19 
Less: current portion(14)(14)(4)
Deferred revenue, net of current portion$25 $15 $15 
The Company expects $11 million of Deferred revenue included in the contract liability balance as of September 27, 2026 to be recognized in 2026. The remaining balance will be recognized ratably over varying periods over the next 10 years, consistent with the underlying franchise agreement terms.
Gift Cards
The Company administers a gift card program and records amounts loaded onto gift cards as a liability until the cards are redeemed or the balances qualify for recognition as gift card income. Upon redemption, the Company reimburses the store that fulfills the purchase and reduces the liability. Gift card income primarily represents breakage, the portion of gift card balances that is not expected to be redeemed and that the Company is entitled to retain under applicable unclaimed property laws, which is based on historical redemption patterns. These gift cards do not have an expiration date, and no service fees are charged on them.
The Company recognized gift card income of $6 million for the thirteen and thirty-nine weeks ended September 27, 2026 within Royalties and other revenues on the Condensed Consolidated Statements of Operations. Gift card income recognized for the period from January 1 to January 15, 2025 and January 16 to September 28, 2025 was zero and $5 million, respectively.
The gift card liability as of September 27, 2026 was $63 million and was included in Accrued expenses and other current liabilities. The vast majority of this balance will be used to reimburse stores upon redemption by the consumer.