(3) Revenue

The following table disaggregates our revenue by major source:

Fiscal Year Ended

December 30, 2025

December 31, 2024

December 26, 2023

Restaurant and other sales

$

5,847,234

$

5,341,853

$

4,604,554

Royalties

28,183

28,342

24,169

Franchise fees

2,658

3,137

2,949

Total revenue

$

5,878,075

$

5,373,332

$

4,631,672

The following table presents a rollforward of deferred revenue-gift cards:

Fiscal Year Ended

December 30, 2025

December 31, 2024

Beginning balance

$

401,198

$

373,913

Gift card activations, net of third-party fees

514,276

479,244

Gift card redemptions and breakage

(466,730)

(451,959)

Ending balance

$

448,744

$

401,198

We recognized restaurant sales of $253.2 million for the year ended December 30, 2025 related to amounts in deferred revenue as of December 31, 2024. We recognized restaurant sales of $234.0 million for the year ended December 31, 2024 related to amounts in deferred revenue as of December 26, 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 22, 2019

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.