6. Segment Information

The Company represents a single, integrated operation with two related and substantially integrated product lines. The operating expenses of the restaurant and retail product lines of a store are shared and are indistinguishable in many respects. As such, the Company has determined it operates as one operating segment and one reportable segment. All of the Company’s operations are located within the United States.

The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The CODM uses consolidated net income to evaluate performance and as a basis for allocating resources. The CODM uses consolidated net income primarily in the forecasting process and periodic reviews of actual performance as compared to forecasts. The CODM reviews balance sheet and capital expenditure information at a consolidated level and, as such, the measure of total assets is reflected at the consolidated balance sheet level.

The following table presents information on the Company’s reportable segment and consolidated net income:

    

2025

    

2024

    

2023

Total revenue

$

3,483,684

$

3,470,762

$

3,442,808

Restaurant cost of goods sold (exclusive of depreciation and rent)

 

748,455

 

743,390

 

769,295

Retail cost of goods sold (exclusive of depreciation and rent)

332,574

344,241

358,322

Labor and other related expenses

 

1,254,668

 

1,271,555

 

1,208,669

Other store operating expenses (a)

394,621

375,789

361,876

Advertising expense

119,397

112,793

89,798

Store-level supplies expense

121,972

122,778

123,722

Store-level maintenance expense

119,658

118,585

116,552

Store-level utilities expense

99,741

101,818

105,867

General and administrative expenses

 

217,510

 

207,062

 

174,091

Other segment items (b)

 

20,059

 

27,632

 

13,999

Gain on extinguishment of debt

(3,186)

Interest expense, net

 

20,489

 

20,933

 

17,006

Income before income taxes

 

37,726

 

24,186

 

103,611

Provision for income taxes (income tax benefit)

 

(8,653)

 

(16,744)

 

4,561

Segment profit and consolidated net income

$

46,379

$

40,930

$

99,050

(a)Excludes advertising, store-level supplies, store-level maintenance and store-level utilities expenses which are disclosed separately.
(b)Consists of impairment costs including goodwill impairment and store closing costs.

Historical Timeline

Fiscal YearFiled
2025Sep 26, 2025Showing above
2023Sep 26, 2023
2022Sep 27, 2022
2020Sep 25, 2020
2019Sep 27, 2019
2017Sep 22, 2017
2016Sep 26, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.