Quarterly report pursuant to Section 13 or 15(d)

Revenue

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Revenue
 6 Months Ended
Jul. 14, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of revenue
In the following table, revenue is disaggregated by type of good or service (in thousands):
Twelve Weeks Ended Twenty-Eight Weeks Ended
July 14, 2024 July 9, 2023 July 14, 2024 July 9, 2023
Restaurant revenue $ 294,457  $ 293,281  $ 673,025  $ 700,174 
Franchise revenue 4,287  3,544  9,628  8,826 
Gift card breakage 1,025  533  5,188  5,342 
Other revenue 385  1,290  854  2,118 
Total revenues $ 300,154  $ 298,648  $ 688,695  $ 716,460 
Contract Liabilities
Components of Unearned revenue in the Condensed Consolidated Balance Sheets are as follows (in thousands):
July 14, 2024 December 31, 2023
Unearned gift card revenue $ 14,899  $ 28,558 
Unearned Royalty revenue
 1,804  7,509 
Unearned revenue
 $ 16,703  $ 36,067 
Revenue recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the redemption and breakage of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands):
Twenty-Eight Weeks Ended
July 14, 2024 July 9, 2023
Gift card revenue $ 14,539  $ 16,038 
We recognize Royalty revenue within Restaurant revenue in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when a customer redeems an earned reward. Unearned revenue associated with Royalty is included in Unearned revenue in our Condensed Consolidated Balance Sheets.
Changes in our unearned revenue balance related to our Royalty program (in thousands):
Twelve Weeks Ended Twenty-Eight Weeks Ended
July 14, 2024 July 9, 2023 July 14, 2024 July 9, 2023
Unearned Royalty revenue, beginning balance
 $ 8,032  $ 11,356  $ 7,509  $ 11,107 
Revenue deferred 715  2,247  3,039  4,763 
Revenue recognized(1)
(6,943) (1,980) (8,744) (4,247)
Unearned Royalty revenue, ending balance
 $ 1,804  $ 11,623  $ 1,804  $ 11,623 
(1) Restaurant revenue includes an approximately $6.4 million credit related to the transition to the new Royalty program in the second quarter of 2024, primarily due to the cancellation of unused points that were earned more than 365 days prior to the launch of the new program.