Revenue Recognition
Disaggregation of Revenue
Our revenue consists of the following:
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| | | | Year ended December 31, |
| | | | 2025 | | 2024 | | 2023 | | |
| Revenue Stream | | Segment | | Total Revenue |
| Restaurant revenue: | | | | (In millions) |
| Restaurant sales | | Restaurant Group | | $ | 390.5 | | | $ | 419.6 | | | $ | 535.6 | | | |
| | | | | | | | | | |
| Other | | Restaurant Group | | — | | | — | | | 0.4 | | | |
| Total restaurant revenue | | | | 390.5 | | | 419.6 | | | 536.0 | | | |
| Other operating revenue: | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Real estate and resort | | Corporate and Other | | 33.0 | | | 32.4 | | | 33.5 | | | |
| Other | | Corporate and Other | | 0.1 | | | 0.5 | | | 0.5 | | | |
| Total other operating revenue | | | | 33.1 | | | 32.9 | | | 34.0 | | | |
| Total operating revenue | | | | $ | 423.6 | | | $ | 452.5 | | | $ | 570.0 | | | |
Restaurant revenue consists of restaurant sales and, to a lesser extent, franchise revenue. Restaurant sales include food and beverage sales, are net of applicable state and local sales taxes and discounts, and are recognized at a point in time as services are performed and goods are provided.
Other operating revenue consists of income generated by our resort operations, which includes sales of real estate, lodging rentals, food and beverage sales, and other income from various resort services offered. Revenue is recognized at a point in time upon closing of the sale of real estate or once goods and services have been provided and billed to the customer.
All of our revenues are generated in the United States. Refer to Note A - Revenue Recognition for further discussion.
Contract Balances
The following table provides information about receivables and deferred revenue:
| | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| | (In millions) |
| Trade receivables, net | $ | 7.6 | | | $ | 8.1 | |
| Deferred revenue (contract liabilities) | 16.1 | | | 16.2 | |
Trade receivables, net are included in Other current assets on our Consolidated Balance Sheets.
Deferred revenue is recorded primarily for restaurant gift card sales. The unrecognized portion of such revenue is recorded as Deferred revenue in the Consolidated Balance Sheets. Revenue of $8.7 million and $9.4 million was recognized in the years ended December 31, 2025 and 2024, respectively, which was included in Deferred revenue at the beginning of the period.
There was no impairment related to contract balances.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.