What changed in this filing

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Item 2. Properties

2021-02-18 compared with 2020-02-19 · 7 added, 54 removed, 8 unchanged (88% of the section changed)

During fiscal year 2019, we purchased an office building in Addison, Texas, which contains approximately 78,000 square feet of office space.

The building is currently undergoing renovation in order to prepare it for use as our corporate headquarters.

We also lease approximately 43,000 square feet of office space located in Dallas, Texas under an operating lease with a third-party landlord.

All company-owned restaurants are leased by us, typically under five- to ten-year leases with one or two five-year renewal options, often contain rent escalation provisions, and generally require us to pay a proportionate share of real estate taxes, insurance and common area and other operating costs in addition to base or fixed rent.

All domestic and international franchise restaurants are leased or owned directly by the respective franchisees.

We believe that our existing headquarters and other leased and owned facilities are adequate to meet our current requirements.

Due to lower square footage requirements, our restaurants can be located in a variety of locations.

They tend to be located primarily in shopping centers, as in-line or end-cap locations.

Our restaurants tend to occupy between 1,300 and 2,900 square feet (average 1,700 square feet) of leased retail space.

Our restaurants generally occupy approximately 1,700 square feet of leased retail space.

As of December 26, 2020, we and our franchisees operated 1,538 restaurants in 44 states and 10 countries.

The chart below shows the locations of our restaurants as of December 28, 2019:

State Franchise restaurants Company-owned restaurants Total restaurants

Alabama 6 — 6

Arizona 35 — 35

Arkansas 10 — 10

California 273 — 273

Colorado 29 — 29

Connecticut 4 — 4

Delaware 2 — 2

Florida 69 — 69

Georgia 35 — 35

Illinois 68 — 68

Indiana 14 — 14

Kentucky 6 — 6

Louisiana 22 — 22

Maryland 22 — 22

Massachusetts 6 — 6

Michigan 13 — 13

Minnesota 2 — 2

Mississippi 11 — 11

Missouri 15 1 16

Nebraska 3 — 3

Nevada 12 5 17

New Hampshire 2 — 2

New Jersey 14 — 14

New Mexico 10 — 10

New York 19 — 19

North Carolina 19 — 19

Oklahoma 15 — 15

Pennsylvania 10 — 10

South Carolina 10 — 10

South Dakota 1 — 1

Tennessee 17 — 17

Texas 330 22 352

Virginia 22 — 22

Washington 14 — 14

West Virginia 1 — 1

Wisconsin 9 — 9

Domestic Total 1,200 31 1,231

International

Colombia 4 — 4

Indonesia 33 — 33

Malaysia 4 — 4

Mexico 91 — 91

Singapore 7 — 7

United Arab Emirates 8 — 8

United Kingdom 3 — 3

International Total 154 — 154

Worldwide Total 1,354 31 1,385

We are obligated under non-cancelable leases for our company-owned restaurants and our current corporate office.

Lease terms for company-owned restaurants are generally between five to ten years of original term with an additional five to ten years of tenant option period, often contain rent escalation provisions, and generally require us to pay a proportionate share of real estate taxes, insurance and common area and other operating costs in addition to base or fixed rent.

On June 19, 2019, we entered into an agreement to purchase an office building in Addison, Texas for a purchase price of $18.3 million, which closed in the third quarter of 2019 and was funded with cash on hand.

The building, which contains approximately 78,000 square feet of office space, will be used for our headquarters.

Legal Proceedings

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties