ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 84-1573084 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
6312 S. Fiddler’s Green Circle, Suite 200 N | ||
Greenwood Village, CO | 80111 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ý | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) |
Class | Outstanding at August 9, 2016 | |
Common Stock, $0.001 par value per share | 13,287,567 |
Page | ||
(Unaudited) | ||||||||
July 10, 2016 | December 27, 2015 | |||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 25,942 | $ | 22,705 | ||||
Accounts receivable, net | 15,630 | 27,760 | ||||||
Inventories | 28,674 | 28,223 | ||||||
Prepaid expenses and other current assets | 17,684 | 18,052 | ||||||
Total current assets | 87,930 | 96,740 | ||||||
Property and equipment, net | 673,063 | 603,686 | ||||||
Goodwill | 97,118 | 81,957 | ||||||
Intangible assets, net | 43,897 | 39,573 | ||||||
Other assets, net | 24,516 | 18,023 | ||||||
Total assets | $ | 926,524 | $ | 839,979 | ||||
Liabilities and stockholders’ equity: | ||||||||
Current liabilities: | ||||||||
Trade accounts payable | $ | 19,408 | $ | 23,392 | ||||
Construction related payables | 26,211 | 28,692 | ||||||
Accrued payroll and payroll-related liabilities | 37,363 | 47,587 | ||||||
Unearned revenue | 33,480 | 48,392 | ||||||
Accrued liabilities and other | 37,870 | 29,610 | ||||||
Total current liabilities | 154,332 | 177,673 | ||||||
Deferred rent | 69,973 | 66,470 | ||||||
Long-term debt | 293,375 | 202,875 | ||||||
Long-term portion of capital lease obligations | 11,092 | 7,441 | ||||||
Other non-current liabilities | 16,845 | 11,209 | ||||||
Total liabilities | 545,617 | 465,668 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $0.001 par value: 45,000 shares authorized; 17,851 and 17,851 shares issued; 13,292 and 13,628 shares outstanding | 18 | 18 | ||||||
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Treasury stock 4,559 and 4,223 shares, at cost | (185,228 | ) | (167,339 | ) | ||||
Paid-in capital | 207,565 | 205,995 | ||||||
Accumulated other comprehensive loss, net of tax | (4,241 | ) | (5,379 | ) | ||||
Retained earnings | 362,793 | 341,016 | ||||||
Total stockholders’ equity | 380,907 | 374,311 | ||||||
Total liabilities and stockholders’ equity | $ | 926,524 | $ | 839,979 |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||||||
July 10, 2016 | July 12, 2015 | July 10, 2016 | July 12, 2015 | |||||||||||||
Revenues: | ||||||||||||||||
Restaurant revenue | $ | 302,117 | $ | 288,704 | $ | 698,887 | $ | 677,213 | ||||||||
Franchise royalties, fees, and other revenues | 3,432 | 4,275 | 8,788 | 10,667 | ||||||||||||
Total revenues | 305,549 | 292,979 | 707,675 | 687,880 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||||||||||||||
Cost of sales | 70,831 | 71,665 | 163,156 | 169,615 | ||||||||||||
Labor | 102,847 | 93,513 | 235,831 | 217,869 | ||||||||||||
Other operating | 40,275 | 35,356 | 89,983 | 81,940 | ||||||||||||
Occupancy | 24,905 | 23,210 | 57,403 | 53,357 | ||||||||||||
Depreciation and amortization | 19,159 | 17,260 | 43,110 | 40,263 | ||||||||||||
Selling, general, and administrative expenses | 31,019 | 34,126 | 78,307 | 82,187 | ||||||||||||
Pre-opening and acquisition costs | 2,238 | 1,369 | 4,610 | 2,324 | ||||||||||||
Asset impairment | 3,860 | — | 4,685 | — | ||||||||||||
Total costs and expenses | 295,134 | 276,499 | 677,085 | 647,555 | ||||||||||||
Income from operations | 10,415 | 16,480 | 30,590 | 40,325 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense, net and other | 1,486 | 904 | 3,124 | 1,964 | ||||||||||||
Income before income taxes | 8,929 | 15,576 | 27,466 | 38,361 | ||||||||||||
Provision for income taxes | 1,377 | 4,410 | 5,689 | 10,630 | ||||||||||||
Net income | $ | 7,552 | $ | 11,166 | $ | 21,777 | $ | 27,731 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.56 | $ | 0.79 | $ | 1.60 | $ | 1.96 | ||||||||
Diluted | $ | 0.55 | $ | 0.78 | $ | 1.59 | $ | 1.94 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 13,511 | 14,142 | 13,582 | 14,134 | ||||||||||||
Diluted | 13,644 | 14,311 | 13,724 | 14,322 |
Twelve Weeks Ended | Twenty-eight Weeks Ended | ||||||||||||||
July 10, 2016 | July 12, 2015 | July 10, 2016 | July 12, 2015 | ||||||||||||
Net income | $ | 7,552 | $ | 11,166 | $ | 21,777 | $ | 27,731 | |||||||
Changes in derivative instrument: | |||||||||||||||
Net change in fair value of interest rate swap | — | — | — | (3 | ) | ||||||||||
Net loss reclassified into interest expense | — | 13 | — | 36 | |||||||||||
Tax expense | — | (5 | ) | — | (13 | ) | |||||||||
Net change in derivative instrument | $ | — | $ | 8 | $ | — | $ | 20 | |||||||
Foreign currency translation adjustment | $ | (342 | ) | (694 | ) | $ | 1,138 | (1,811 | ) | ||||||
Other comprehensive income (loss), net of tax | $ | (342 | ) | $ | (686 | ) | $ | 1,138 | $ | (1,791 | ) | ||||
Total comprehensive income | $ | 7,210 | $ | 10,480 | $ | 22,915 | $ | 25,940 |
Twenty-eight Weeks Ended | ||||||||
July 10, 2016 | July 12, 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 21,777 | $ | 27,731 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 43,110 | 40,263 | ||||||
Asset impairment | 4,685 | — | ||||||
Stock-based compensation expense | 3,079 | 2,849 | ||||||
Other, net | (1,619 | ) | (3,949 | ) | ||||
Changes in operating assets and liabilities, net of business acquisition: | ||||||||
Accounts receivable and other current assets | 11,923 | 9,285 | ||||||
Trade accounts payable and accrued liabilities | (3,240 | ) | (344 | ) | ||||
Unearned revenue | (13,206 | ) | (10,051 | ) | ||||
Other operating assets and liabilities, net | 546 | 1,564 | ||||||
Net cash provided by operating activities | 67,055 | 67,348 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property, equipment, and intangible assets | (96,175 | ) | (64,507 | ) | ||||
Deposit on equipment purchase | — | (5,479 | ) | |||||
Acquisition of franchise restaurants, net of cash acquired | (39,977 | ) | — | |||||
Proceeds from sales of real estate and property, plant, and equipment | 1,944 | — | ||||||
Other investing activities | — | 3 | ||||||
Net cash used in investing activities | (134,208 | ) | (69,983 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings of long-term debt | 211,500 | 248,500 | ||||||
Payments of long-term debt and capital leases | (121,299 | ) | (251,327 | ) | ||||
Purchase of treasury stock | (20,000 | ) | — | |||||
Debt issuance costs | (1,058 | ) | — | |||||
Tax benefit from exercise of stock options | 61 | 1,840 | ||||||
Proceeds from exercise of stock options and employee stock purchase plan | 1,005 | 3,987 | ||||||
Net cash provided by financing activities | 70,209 | 3,000 | ||||||
Effect of exchange rate changes on cash | 181 | (158 | ) | |||||
Net change in cash and cash equivalents | 3,237 | 207 | ||||||
Cash and cash equivalents, beginning of period | 22,705 | 22,408 | ||||||
Cash and cash equivalents, end of period | $ | 25,942 | $ | 22,615 | ||||
Supplemental disclosure of cash flow information | ||||||||
Income taxes paid | $ | 2,231 | $ | 4,094 | ||||
Interest paid, net of amounts capitalized | $ | 3,057 | $ | 2,342 | ||||
Change in construction related payables | $ | (2,481 | ) | $ | 9,009 |
Balance, December 27, 2015 | $ | 81,957 | ||
Acquisition | 14,355 | |||
Translation adjustment | $ | 806 | ||
Balance, July 10, 2016 | $ | 97,118 |
July 10, 2016 | December 27, 2015 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Intangible assets subject to amortization: | ||||||||||||||||||||||||
Franchise rights | $ | 56,157 | $ | (25,674 | ) | $ | 30,483 | $ | 50,878 | $ | (23,904 | ) | $ | 26,974 | ||||||||||
Favorable leases | 13,931 | (7,067 | ) | 6,864 | 12,991 | (6,643 | ) | 6,348 | ||||||||||||||||
Liquor licenses | 10,203 | (9,812 | ) | 391 | 10,168 | (9,751 | ) | 417 | ||||||||||||||||
$ | 80,291 | $ | (42,553 | ) | $ | 37,738 | $ | 74,037 | $ | (40,298 | ) | $ | 33,739 | |||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Liquor licenses and other | $ | 6,159 | $ | — | $ | 6,159 | $ | 5,834 | $ | — | $ | 5,834 | ||||||||||||
Intangible assets, net | $ | 86,450 | $ | (42,553 | ) | $ | 43,897 | $ | 79,871 | $ | (40,298 | ) | $ | 39,573 |
Remainder of 2016 | $ | 2,108 | ||
2017 | 4,510 | |||
2018 | 4,297 | |||
2019 | 4,249 | |||
2020 | 3,724 | |||
Thereafter | 18,850 | |||
$ | 37,738 |
Twelve Weeks Ended | Twenty-eight Weeks Ended | ||||||||||||||
July 10, 2016 | July 12, 2015 | July 10, 2016 | July 12, 2015 | ||||||||||||
Risk-free interest rate | 1.1 | % | 1.6 | % | 1.2 | % | 1.4 | % | |||||||
Expected years until exercise | 4.3 | 4.8 | 4.7 | 4.8 | |||||||||||
Expected stock volatility | 37.2 | % | 39.4 | % | 39.2 | % | 40.6 | % | |||||||
Dividend yield | — | % | — | % | — | % | — | % | |||||||
Weighted average Black-Scholes fair value per share at date of grant | $ | 19.56 | $ | 30.86 | $ | 21.81 | $ | 29.71 |
Stock Options | Restricted Stock Units | ||||
Outstanding, December 27, 2015 | 395 | 75 | |||
Granted | 132 | 55 | |||
Forfeited/expired | (15 | ) | (5 | ) | |
Exercised/vested | (7 | ) | (36 | ) | |
Outstanding, July 10, 2016 | 505 | 89 |
Twelve Weeks Ended | Twenty-eight Weeks Ended | ||||||||||||||
July 10, 2016 | July 12, 2015 | July 10, 2016 | July 12, 2015 | ||||||||||||
Net income | $ | 7,552 | $ | 11,166 | $ | 21,777 | $ | 27,731 | |||||||
Basic weighted average shares outstanding | 13,511 | 14,142 | 13,582 | 14,134 | |||||||||||
Dilutive effect of stock options and awards | 133 | 169 | 142 | 188 | |||||||||||
Diluted weighted average shares outstanding | 13,644 | 14,311 | 13,724 | 14,322 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.56 | $ | 0.79 | $ | 1.60 | $ | 1.96 | |||||||
Diluted | $ | 0.55 | $ | 0.78 | $ | 1.59 | $ | 1.94 |
Fair Value at Acquisition Date | |||
Property and equipment | 18,762 | ||
Intangible assets | 6,540 | ||
Deferred tax assets | 2,950 | ||
Deferred tax liabilities | (2,791 | ) | |
Goodwill | 14,355 | ||
Other assets and liabilities, net | 197 | ||
Total purchase price | 40,013 |
July 10, 2016 | December 27, 2015 | ||||||
Revolving credit facility and other long-term debt | $ | 293,375 | $ | 202,875 | |||
Capital lease obligations | 11,733 | 7,972 | |||||
Total debt | 305,108 | 210,847 | |||||
Less: Current portion | (641 | ) | (531 | ) | |||
Long-term debt | $ | 304,467 | $ | 210,316 |
July 10, 2016 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Investments in rabbi trust | $ | 8,699 | $ | 8,699 | $ | — | $ | — | ||||||||
Total assets measured at fair value | $ | 8,699 | $ | 8,699 | $ | — | $ | — | ||||||||
December 27, 2015 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Investments in rabbi trust | $ | 6,863 | $ | 6,863 | $ | — | $ | — | ||||||||
Total assets measured at fair value | $ | 6,863 | $ | 6,863 | $ | — | $ | — |
July 10, 2016 | December 27, 2015 | |||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||||
Credit facility | $ | 292,500 | $ | 292,330 | $ | 202,000 | $ | 201,829 | ||||||||
Capital lease obligations | 11,733 | 13,951 | 7,972 | 9,177 | ||||||||||||
Total | $ | 304,233 | $ | 306,281 | $ | 209,972 | $ | 211,006 |
• | Financial performance. |
◦ | Restaurant revenues increased $13.4 million or 4.6% to $302.1 million for the twelve weeks ended July 10, 2016, as compared to the twelve weeks ended July 12, 2015, primarily due to a $23.7 million increase in revenue from newly opened and acquired restaurants, offset by a $9.0 million or 3.2% decrease in comparable restaurant revenue, $0.8 million from closed restaurants, and a $0.5 million unfavorable foreign exchange impact related to our Canadian restaurants. For the twenty-eight weeks ended July 10, 2016, restaurant revenues increased $21.7 million or 3.2% to $698.9 million as compared to the twenty-eight weeks ended July 12, 2015, primarily due to a $42.5 million increase in revenue from newly opened and acquired restaurants, offset by a $18.0 million or 2.7% decrease in comparable restaurant revenue, a $1.7 million unfavorable foreign exchange impact related to our Canadian restaurants, and $1.1 million from closed restaurants. We expect total revenues to grow around 5.0% in 2016, driven by increased operating weeks associated with locations opened and acquired in 2015 and 2016, partially offset by lower comparable restaurant revenue of almost 2.0%. |
◦ | Restaurant operating costs, as a percentage of restaurant revenue, increased 160 basis points to 79.1% for the twelve weeks ended July 10, 2016, as compared to 77.5% for the twelve weeks ended July 12, 2015. For the twenty-eight weeks ended July 10, 2016, restaurant operating costs increased 100 basis points to 78.2% as compared to 77.2% for the twenty-eight weeks ended July 12, 2015. These increases were primarily due to higher labor costs, other restaurant operating costs, and occupancy, as a percentage of restaurant revenue, and were partially offset by a reduction in food and beverage costs. |
◦ | Net income decreased to $7.6 million for the twelve weeks ended July 10, 2016 from $11.2 million for the twelve weeks ended July 12, 2015. Diluted earnings per share was $0.55 for the twelve weeks ended July 10, 2016, as compared to $0.78 for the twelve weeks ended July 12, 2015. For the twenty-eight weeks ended July 10, 2016, net income decreased to $21.8 million from $27.7 million for the twenty-eight weeks ended July 12, 2015. Diluted earnings per share decreased to $1.59 for the twenty-eight weeks ended July 10, 2016, as compared to $1.94 for the twenty-eight weeks ended July 12, 2015. Excluding the impact of $0.20 per diluted share related to the impairment of six restaurants, net income per diluted share for the twelve weeks ended July 10, 2016 was $0.75. Excluding the impact of $0.24 per diluted share related to the impairment of seven restaurants and $0.20 per diluted share related to litigation contingencies, net income per diluted share for the twenty-eight weeks ended July 10, 2016 was $2.03. |
• | Marketing. Our Red Robin Royalty™ loyalty program operates in all of our U.S. and Canadian Company-owned Red Robin restaurants and has been rolled out to most of our franchised restaurants. We engage our guests through Red Robin Royalty with offers designed to increase frequency of visits as a key part of our overall marketing strategy. We also inform enrolled guests early about new menu items to generate awareness and trial of |
• | Brand Transformation Initiative. In 2012, we began investing in our brand transformation program to enhance our service, food presentation, atmosphere, and other guest experiences. Key elements of the restaurant remodel associated with our brand transformation include greater separation of the bar and family dining area and refreshed exteriors including signage. We completed 30 restaurant remodels during the twelve weeks ended July 10, 2016 towards our goal of completing 70 remodels in 2016. We expect to substantially complete our brand transformation initiative for Company-owned restaurants by the end of 2016. |
• | Restaurant Development. During the twelve weeks ended July 10, 2016, we opened seven Red Robin restaurants, including one Red Robin restaurant in Canada, and relocated one restaurant. We plan to open 14 Red Robin restaurants and one Red Robin Burger Works, and relocate one Red Robin restaurant during the remainder of 2016. |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||
July 10, 2016 | July 12, 2015 | July 10, 2016 | July 12, 2015 | |||||||||
Company-owned: | ||||||||||||
Beginning of period | 454 | 418 | 439 | 415 | ||||||||
Opened during the period | 7 | 4 | 10 | 8 | ||||||||
Acquired from franchisees | — | — | 13 | — | ||||||||
Closed during the period | (1 | ) | — | (2 | ) | (1 | ) | |||||
End of period | 460 | 422 | 460 | 422 | ||||||||
Franchised: | ||||||||||||
Beginning of period | 86 | 99 | 99 | 99 | ||||||||
Opened during the period | — | — | — | — | ||||||||
Sold or closed during the period | — | — | (13 | ) | — | |||||||
End of period | 86 | 99 | 86 | 99 | ||||||||
Total number of restaurants | 546 | 521 | 546 | 521 |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||
July 10, 2016 | July 12, 2015 | July 10, 2016 | July 12, 2015 | |||||||||
Revenues: | ||||||||||||
Restaurant revenue | 98.9 | % | 98.5 | % | 98.8 | % | 98.4 | % | ||||
Franchise royalties, fees, and other revenues | 1.1 | 1.5 | 1.2 | 1.6 | ||||||||
Total revenues | 100.0 | 100.0 | 100.0 | 100.0 | ||||||||
Costs and expenses: | ||||||||||||
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||||||||||||
Cost of sales | 23.4 | 24.8 | 23.3 | 25.0 | ||||||||
Labor | 34.0 | 32.4 | 33.7 | 32.2 | ||||||||
Other operating | 13.4 | 12.3 | 13.0 | 12.1 | ||||||||
Occupancy | 8.3 | 8.0 | 8.2 | 7.9 | ||||||||
Total restaurant operating costs | 79.1 | 77.5 | 78.2 | 77.2 | ||||||||
Depreciation and amortization | 6.3 | 5.9 | 6.1 | 5.9 | ||||||||
Selling, general, and administrative | 10.1 | 11.7 | 11.1 | 11.9 | ||||||||
Pre-opening and acquisition costs | 0.7 | 0.5 | 0.7 | 0.3 | ||||||||
Asset impairment | 1.3 | — | 0.7 | — | ||||||||
Income from operations | 3.4 | 5.6 | 4.3 | 5.9 | ||||||||
Interest expense, net and other | 0.5 | 0.3 | 0.4 | 0.3 | ||||||||
Income before income taxes | 2.9 | 5.3 | 3.9 | 5.6 | ||||||||
Provision for income taxes | 0.4 | 1.5 | 0.8 | 1.6 | ||||||||
Net income | 2.5 | % | 3.8 | % | 3.1 | % | 4.0 | % |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||||||||||||
(Revenues in thousands) | July 10, 2016 | July 12, 2015 | Percent Change | July 10, 2016 | July 12, 2015 | Percent Change | ||||||||||||||||
Restaurant revenue | $ | 302,117 | $ | 288,704 | 4.6 | % | $ | 698,887 | $ | 677,213 | 3.2 | % | ||||||||||
Franchise royalties, fees, and other revenue | 3,432 | 4,275 | (19.7 | )% | 8,788 | 10,667 | (17.6 | )% | ||||||||||||||
Total revenues | $ | 305,549 | $ | 292,979 | 4.3 | % | $ | 707,675 | $ | 687,880 | 2.9 | % | ||||||||||
Average weekly sales volumes in Company-owned restaurants(1)(2) | $ | 55,912 | $ | 58,208 | (3.9 | )% | $ | 56,497 | $ | 58,677 | (3.7 | )% | ||||||||||
Total operating weeks | 5,504 | 5,036 | 9.3 | % | 12,592 | 11,696 | 7.7 | % | ||||||||||||||
Restaurant revenue per square foot | $ | 106 | $ | 109 | (2.8 | )% | $ | 249 | $ | 255 | (2.4 | )% |
(1) | Excludes Red Robin Burger Works. |
(2) | Calculated using constant currency rates. Using historical currency rates, the average weekly sales per unit in for twelve and twenty-eight weeks ended July 12, 2015 for Company-owned restaurants was $58,321 and $58,829. |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||||||||||||
(In thousands, except percentages) | July 10, 2016 | July 12, 2015 | Percent Change | July 10, 2016 | July 12, 2015 | Percent Change | ||||||||||||||||
Cost of sales | $ | 70,831 | $ | 71,665 | (1.2 | )% | $ | 163,156 | $ | 169,615 | (3.8 | )% | ||||||||||
As a percent of restaurant revenue | 23.4 | % | 24.8 | % | (1.4 | )% | 23.3 | % | 25.0 | % | (1.7 | )% |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||||||||||||
(In thousands, except percentages) | July 10, 2016 | July 12, 2015 | Percent Change | July 10, 2016 | July 12, 2015 | Percent Change | ||||||||||||||||
Labor | $ | 102,847 | $ | 93,513 | 10.0 | % | $ | 235,831 | $ | 217,869 | 8.2 | % | ||||||||||
As a percent of restaurant revenue | 34.0 | % | 32.4 | % | 1.6 | % | 33.7 | % | 32.2 | % | 1.5 | % |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||||||||||||
(In thousands, except percentages) | July 10, 2016 | July 12, 2015 | Percent Change | July 10, 2016 | July 12, 2015 | Percent Change | ||||||||||||||||
Other operating | $ | 40,275 | $ | 35,356 | 13.9 | % | $ | 89,983 | $ | 81,940 | 9.8 | % | ||||||||||
As a percent of restaurant revenue | 13.4 | % | 12.3 | % | 1.1 | % | 13.0 | % | 12.1 | % | 0.9 | % |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||||||||||||
(In thousands, except percentages) | July 10, 2016 | July 12, 2015 | Percent Change | July 10, 2016 | July 12, 2015 | Percent Change | ||||||||||||||||
Occupancy | $ | 24,905 | $ | 23,210 | 7.3 | % | $ | 57,403 | $ | 53,357 | 7.6 | % | ||||||||||
As a percent of restaurant revenue | 8.3 | % | 8.0 | % | 0.3 | % | 8.2 | % | 7.9 | % | 0.3 | % |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||||||||||||
(In thousands, except percentages) | July 10, 2016 | July 12, 2015 | Percent Change | July 10, 2016 | July 12, 2015 | Percent Change | ||||||||||||||||
Depreciation and amortization | $ | 19,159 | $ | 17,260 | 11.0 | % | $ | 43,110 | $ | 40,263 | 7.1 | % | ||||||||||
As a percent of total revenues | 6.3 | % | 5.9 | % | 0.4 | % | 6.1 | % | 5.9 | % | 0.2 | % |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||||||||||||
(In thousands, except percentages) | July 10, 2016 | July 12, 2015 | Percent Change | July 10, 2016 | July 12, 2015 | Percent Change | ||||||||||||||||
Selling, general, and administrative | $ | 31,019 | $ | 34,126 | (9.1 | )% | $ | 78,307 | $ | 82,187 | (4.7 | )% | ||||||||||
As a percent of total revenues | 10.1 | % | 11.7 | % | (1.6 | )% | 11.1 | % | 11.9 | % | (0.8 | )% |
Twelve Weeks Ended | Twenty-eight Weeks Ended | |||||||||||||||||||||
(In thousands, except percentages) | July 10, 2016 | July 12, 2015 | Percent Change | July 10, 2016 | July 12, 2015 | Percent Change | ||||||||||||||||
Pre-opening and acquisition costs | $ | 2,238 | $ | 1,369 | 63.5 | % | $ | 4,610 | $ | 2,324 | 98.4 | % | ||||||||||
As a percent of total revenues | 0.7 | % | 0.5 | % | 0.2 | % | 0.7 | % | 0.3 | % | 0.4 | % |
Twenty-eight Weeks Ended | ||||||||
July 10, 2016 | July 12, 2015 | |||||||
Net cash provided by operating activities | $ | 67,055 | $ | 67,348 | ||||
Net cash used in investing activities | (134,208 | ) | (69,983 | ) | ||||
Net cash provided by financing activities | 70,209 | 3,000 | ||||||
Effect of exchange rate changes on cash | 181 | (158 | ) | |||||
Net change in cash and cash equivalents | $ | 3,237 | $ | 207 |
Twenty-eight Weeks Ended July 10, 2016 | |||
New restaurants | $ | 41,213 | |
Restaurant remodels | 40,940 | ||
Investment in technology infrastructure and other | 8,454 | ||
Restaurant maintenance capital | 5,568 | ||
Purchase of franchised restaurants | 39,977 | ||
Total capital expenditures | $ | 136,152 |
Period (1) | Total Number of Shares (or Units) Purchases | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet be Purchased Under the Plan (in thousands) | ||||||||||
5/20/16-6/12/16 | 158,378 | $ | 50.05 | 158,378 | $ | 92,074 | ||||||||
6/13/16-7/10/16 | 230,535 | $ | 52.37 | 388,913 | $ | 80,000 | ||||||||
Pursuant to Publicly Announced Plans or Programs (2) | 388,913 |
Exhibit Number | Description | |
10.1 | Credit Agreement, dated June 30, 2016. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on July 5, 2016. | |
10.2 | Security Agreement, dated June 30, 2016. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on July 5, 2016. | |
10.3 | First Amendment to Employment Agreement between Red Robin Gourmet Burgers, Inc. and Stephen E. Carley, dated August 8, 2016. Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on August 8, 2016. | |
10.4 | Amended & Restated Employment Agreement by and between Red Robin Gourmet Burgers, Inc. and Denny M. Post, dated August 8, 2016. Incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K filed on August 8, 2016. | |
31.1 | Rule 13a-14(a) Certification of Chief Executive Officer | |
31.2 | Rule 13a-14(a) Certification of Chief Accounting Officer and Interim Chief Financial Officer | |
32.1 | Section 1350 Certifications of Chief Executive Officer and Chief Accounting Officer and Interim Chief Financial Officer | |
101 | The following financial information from the Quarterly Report on Form 10-Q of Red Robin Gourmet Burgers, Inc. for the quarter ended July 10, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at July 10, 2016 and December 27, 2015; (ii) Condensed Consolidated Statements of Operations for the twelve and twenty-eight weeks ended July 10, 2016 and July 12, 2015; (iii) Condensed Consolidated Statements of Comprehensive Income for the twelve and twenty-eight weeks ended July 10, 2016 and July 12, 2015; (iv) Condensed Consolidated Statements of Cash Flows for the twenty-eight weeks ended July 10, 2016 and July 12, 2015; and (v) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text. |
RED ROBIN GOURMET BURGERS, INC. (Registrant) | ||||
August 10, 2016 | By: | /s/ Terry D. Harryman | ||
(Date) | Terry D. Harryman (Chief Accounting Officer and Interim Chief Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Red Robin Gourmet Burgers, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 10, 2016 | /s/ Denny Marie Post | |
(Date) | Denny Marie Post Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Red Robin Gourmet Burgers, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
August 10, 2016 | /s/ Terry D. Harryman | |
(Date) | Terry D. Harryman Chief Accounting Officer and Interim Chief Financial Officer |
(a) | the Quarterly Report on Form 10-Q for the period ended July 10, 2016 of the Company (the "Periodic Report") fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(b) | the information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | August 10, 2016 | /s/ Denny Marie Post | |
Denny Marie Post Chief Executive Officer | |||
Dated: | August 10, 2016 | /s/ Terry D. Harryman | |
Terry D. Harryman Chief Accounting Officer and Interim Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
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Jul. 10, 2016 |
Aug. 09, 2016 |
|
Document and Entity Information | ||
Entity Registrant Name | RED ROBIN GOURMET BURGERS INC | |
Entity Central Index Key | 0001171759 | |
Current Fiscal Year End Date | --12-25 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 10, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 13,287,567 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jul. 10, 2016 |
Dec. 27, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 17,851,000 | 17,851,000 |
Common stock, shares outstanding | 13,292,000 | 13,628,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 4,559,000 | 4,223,000 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 10, 2016 |
Jul. 12, 2015 |
Jul. 10, 2016 |
Jul. 12, 2015 |
|
Revenues: | ||||
Restaurant revenue | $ 302,117,000 | $ 288,704,000 | $ 698,887,000 | $ 677,213,000 |
Franchise royalties, fees, and other revenues | 3,432,000 | 4,275,000 | 8,788,000 | 10,667,000 |
Total revenues | 305,549,000 | 292,979,000 | 707,675,000 | 687,880,000 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||
Cost of sales | 70,831,000 | 71,665,000 | 163,156,000 | 169,615,000 |
Labor | 102,847,000 | 93,513,000 | 235,831,000 | 217,869,000 |
Other operating | 40,275,000 | 35,356,000 | 89,983,000 | 81,940,000 |
Occupancy | 24,905,000 | 23,210,000 | 57,403,000 | 53,357,000 |
Depreciation and amortization | 19,159,000 | 17,260,000 | 43,110,000 | 40,263,000 |
Selling, general, and administrative expenses | 31,019,000 | 34,126,000 | 78,307,000 | 82,187,000 |
Pre-opening and acquisition costs | 2,238,000 | 1,369,000 | 4,610,000 | 2,324,000 |
Asset impairment | 3,860,000 | 0 | 4,685,000 | 0 |
Total costs and expenses | 295,134,000 | 276,499,000 | 677,085,000 | 647,555,000 |
Income from operations | 10,415,000 | 16,480,000 | 30,590,000 | 40,325,000 |
Other expense: | ||||
Interest expense, net and other | 1,486,000 | 904,000 | 3,124,000 | 1,964,000 |
Income before income taxes | 8,929,000 | 15,576,000 | 27,466,000 | 38,361,000 |
Provision for income taxes | 1,377,000 | 4,410,000 | 5,689,000 | 10,630,000 |
Net income | $ 7,552,000 | $ 11,166,000 | $ 21,777,000 | $ 27,731,000 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.56 | $ 0.79 | $ 1.60 | $ 1.96 |
Diluted (in dollars per share) | $ 0.55 | $ 0.78 | $ 1.59 | $ 1.94 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 13,511 | 14,142 | 13,582 | 14,134 |
Diluted (in shares) | 13,644 | 14,311 | 13,724 | 14,322 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 10, 2016 |
Jul. 12, 2015 |
Jul. 10, 2016 |
Jul. 12, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,552 | $ 11,166 | $ 21,777 | $ 27,731 |
Changes in derivative instrument: | ||||
Net change in fair value of interest rate swap | 0 | 0 | 0 | (3) |
Net loss reclassified into interest expense | 0 | 13 | 0 | 36 |
Tax expense | 0 | (5) | 0 | (13) |
Net change in derivative instrument | 0 | 8 | 0 | 20 |
Foreign currency translation adjustment | (342) | (694) | 1,138 | (1,811) |
Other comprehensive income (loss), net of tax | (342) | (686) | 1,138 | (1,791) |
Total comprehensive income | $ 7,210 | $ 10,480 | $ 22,915 | $ 25,940 |
Basis of Presentation and Recent Accounting Pronouncements |
6 Months Ended |
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Jul. 10, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Recent Accounting Pronouncements | Basis of Presentation and Recent Accounting Pronouncements Red Robin Gourmet Burgers, Inc., a Delaware corporation, together with its subsidiaries (“Red Robin” or the “Company”), primarily develops, operates, and franchises casual-dining and fast-casual restaurants in North America. As of July 10, 2016, the Company owned and operated 460 restaurants located in 39 states, the District of Columbia, and two Canadian provinces. The Company also had 86 franchised casual-dining restaurants in 15 states as of July 10, 2016. The Company operates its business as one operating and one reportable segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Red Robin and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. The accompanying condensed consolidated financial statements of Red Robin have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 27, 2015 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. For further information, please refer to and read these interim condensed consolidated financial statements in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2015, filed with the SEC on February 19, 2016. The Company’s quarter that ended July 10, 2016 is referred to as second quarter 2016, or the twelve weeks ended July 10, 2016; the first quarter ended April 17, 2016 is referred to as first quarter 2016, or the sixteen weeks ended April 17, 2016; and together the first and second quarters of 2016 are referred to as the twenty-eight weeks ended July 10, 2016. The quarter ended July 12, 2015 is referred to as second quarter 2015, or the twelve weeks ended July 12, 2015; the first quarter ended April 19, 2015 is referred to as first quarter 2015, or the sixteen weeks ended April 19, 2015; and together the first and second quarters of 2015 are referred to as the twenty-eight weeks ended July 12, 2015. Recently Issued Accounting Standards In March 2016, the FASB issued guidance on stock-based compensation, which changes the accounting for, and classification of, excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification, and the classification of those taxes paid on the statement of cash flows. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016 with early adoption permitted. The guidance will be applied either prospectively, retrospectively, or using a cumulative effect transition method, depending on the area covered in this update. The Company expects to adopt this guidance when required, beginning with its fiscal first quarter 2017, and is currently evaluating its expected method of adoption along with the effect this guidance will have on the Company’s consolidated financial statements and related disclosures. In February 2016, the FASB issued new guidance on accounting for leases. This guidance requires the recognition of liabilities for lease obligations and corresponding right-of-use assets on the balance sheet and disclosure of key information about leasing arrangements. This guidance is effective for annual and interim reporting periods beginning after December 15, 2018 using a modified retrospective adoption method. Early adoption is permitted. We are evaluating the impact this guidance will have on our consolidated financial statements but expect this adoption will result in a significant increase in the assets and liabilities on our consolidated balance sheet. We are evaluating new lease management systems which will facilitate our transition to this guidance. In May 2014, the FASB issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The guidance is effective for reporting periods beginning after December 15, 2017 with early adoption permitted. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. In March 2016, the FASB issued an Accounting Standards Update (“ASU”) that amends the principal versus agent guidance in the new revenue recognition standard. The ASU clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. In April 2016, the FASB issued an ASU to clarify the guidance on accounting for licenses or intellectual property and identifying performance obligations in the new revenue recognition standard. The ASU clarifies how an entity should evaluate the nature of its promise in grants of a license of intellectual property and when promised goods or services are distinct within the context of a contract. In addition, in May 2016, the FASB issued an ASU that clarifies several narrow-scope improvements and practical expedients for adopting the new revenue guidance, including defining a completed contract at transition, clarifying how contract changes occurring prior to the earliest period presented may be recognized, and elaborating on the collectibility criterion in Step 1 of the new revenue model. We do not believe the new revenue recognition standard will impact our recognition of food and beverage sales from Company-owned restaurants or our recognition of royalty fees from franchisees. We are continuing to evaluate the impact the adoption of this standard will have on the recognition of other infrequent transactions, including the initial franchise fees we recognized when the franchise restaurants opened and franchise contributions to our two national media advertising funds, as well as the expected timing and method of adoption. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents goodwill as of July 10, 2016 and December 27, 2015 (in thousands):
The Company had no goodwill impairment losses in the period presented in the table above or any prior periods. During the first quarter of 2016, the Company acquired 13 restaurants from a franchisee. Refer to Note 5, Acquisition of Red Robin Franchised Restaurants, for details of the acquisition. The following table presents intangible assets as of July 10, 2016 and December 27, 2015 (in thousands):
There was an immaterial impairment to franchise rights during the twenty-eight weeks ended July 10, 2016 related to one of the restaurants impaired in the second quarter of 2016. There were no impairments to intangible assets during the twenty-eight weeks ended July 12, 2015. The aggregate amortization expense related to intangible assets subject to amortization was $1.2 million and $2.6 million for the twelve and twenty-eight weeks ended July 10, 2016. The estimated aggregate future amortization expense as of July 10, 2016 is as follows (in thousands):
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Stock Incentive Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Incentive Plans | Stock Incentive Plans Under the Company’s Second Amended and Restated 2007 Performance Incentive Plan (the “2007 Stock Plan”), various stock options and stock awards may be granted to employees of the Company and any of its subsidiaries, directors of the Company, and certain consultants and advisors to the Company or any of its subsidiaries. Stock options are granted with an exercise price equal to the fair market value of shares of the Company’s common stock at the grant date. We account for stock-based compensation in accordance with fair value recognition provisions, calculated using the Black-Scholes option pricing model (the “pricing model”). The weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model for periods in which options were granted were as follows:
The following table presents a summary of the Company’s stock-based compensation activity for the twenty-eight weeks ended July 10, 2016 (in thousands):
We recognized stock-based compensation expense of $1.0 million and $1.4 million for the twelve weeks ended July 10, 2016 and July 12, 2015 and $3.1 million and $2.8 million for the twenty-eight weeks ended July 10, 2016 and July 12, 2015. |
Earnings Per Share |
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Earnings Per Share | Earnings Per Share Basic earnings per share amounts are calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share amounts are calculated based upon the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares are excluded from the computation in periods in which they have an anti-dilutive effect. Diluted earnings per share reflect the potential dilution that could occur if holders of options exercised their options into common stock. During the twelve and twenty-eight weeks ended July 10, 2016, weighted average stock options outstanding of 248 thousand shares and 214 thousand shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. During the twelve and twenty-eight weeks ended July 12, 2015, weighted average stock options outstanding of 72 thousand and 48 thousand shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. The Company uses the treasury stock method to calculate the effect of outstanding stock options. The computations for basic and diluted earnings per share are as follows (in thousands, except per share data):
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Acquisitions of Red Robin Franchised Restaurants |
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Jul. 10, 2016 | |||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Acquisitions of Red Robin Franchised Restaurants | Acquisition of Red Robin Franchised Restaurants The Company acquires franchised restaurants from time to time. On March 21, 2016, the Company acquired 13 restaurants, including real estate at four of the locations, from one of its U.S. franchisees for a purchase price of $40.0 million in cash. The pro forma impact of this acquisition and the operating results of the acquired restaurants are not presented as the impact was not material to reported results. The acquisition was accounted for using the acquisition method as defined in ASC 805, Business Combinations. The goodwill arising from the acquisition consists largely of the synergies and economies of scale expected from combining the acquired operations with the Company. The goodwill generated by the acquisition is not amortizable for book purposes but is amortizable and deductible for tax purposes. Including those adjustments made in the second quarter 2016, the Company preliminarily allocated the purchase price to the fair value of the assets acquired and liabilities assumed as follows (in thousands):
Of the $18.8 million in property and equipment, $6.3 million is related to land. Of the $6.5 million of intangible assets, $5.6 million is related to reacquired franchise rights, which will be amortized on a straight-line basis over a weighted average of 15.0 years, and $0.9 million is related to acquired favorable leases. The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date is based on significant inputs not observed in the market and thus represents a level 3 fair value measurement. |
Restaurant Impairments and Closures |
6 Months Ended |
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Jul. 10, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restaurant Impairments and Closures | Restaurant Impairments and Closures During the second quarter of 2016, the Company determined that six Company-owned restaurants were impaired and recognized a non-cash impairment charge of $3.9 million. The Company recognized the impairment charges resulting from the continuing and projected future results of these restaurants, primarily through projected cash flows. During the first quarter of 2016, the Company relocated one restaurant and recognized a $0.8 million asset impairment charge due to the relocation. No impairments were recorded during the twenty-eight weeks ended July 12, 2015. Each restaurant’s past and present operating performance was reviewed combined with projected future results, primarily through projected undiscounted cash flows, which indicated impairment. The Company compared the carrying amount of each restaurant’s assets to its fair value as estimated by management. The impairment charges represent the excess of each restaurant’s carrying amount over its estimated fair value. The Company closed one restaurant at the end of its lease term during the second quarter of 2016. The Company also closed one restaurant during the first quarter of 2016 and sold the property for an immaterial loss. The Company closed one restaurant at the end of its lease term during the twenty-eight weeks ended July 12, 2015. |
Borrowings |
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Jul. 10, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings Borrowings as of July 10, 2016 and December 27, 2015 are summarized below (in thousands):
On June 30, 2016, the Company replaced its existing credit facility (“Previous Credit Facility”) with a new credit facility (“New Credit Facility”). The New Credit Facility provides for a $400 million revolving line of credit with a sublimit for the issuance of up to $25 million in letters of credit and swingline loans up to $15 million, and includes an option to increase the amount available under the credit facility up to an additional $100 million in the aggregate, subject to the lenders’ participation. The New Credit Facility also provides a Canadian Dollar borrowing sublimit equivalent to $20 million. Borrowings under the New Credit Facility, if denominated in Dollars, are subject to rates based on the London Interbank Offered Rate (“LIBOR”) plus a spread based on leverage or a base rate plus a spread based on leverage (base rate is the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) LIBOR for an Interest Period of one month plus 1%). Borrowings under the New Credit Facility, if denominated in Canadian Dollars, are subject to rates based on LIBOR plus a spread based on leverage or a base rate plus a spread based on leverage (base rate is the highest of (a) the Canadian Prime Rate and (b) the Canadian Dealer Offered Rate (“CDOR Rate”) for an interest period of one month plus 1%). The New Credit Facility matures on June 30, 2021. Borrowings under the New Credit Facility are secured by first priority liens and security interests in substantially all of the Company’s assets, including the capital stock of certain Company subsidiaries, and are available for financing activities including restaurant construction costs, working capital, and general corporate purposes, including, among other uses, to refinance certain indebtedness, permitted acquisitions, and redemption of capital stock. As of July 10, 2016, the Company had outstanding borrowings under the New Credit Facility of $292.5 million, in addition to amounts issued under letters of credit of $8.5 million, which reduced the amount available under the facility but were not recorded as debt. As of December 27, 2015, the Company had outstanding borrowings under the Previous Credit Facility of $202.0 million, in addition to amounts issued under letters of credit of $7.9 million. Loan origination costs associated with the New Credit Facility are included as deferred costs in Other assets, net in the accompanying condensed consolidated balance sheets. Unamortized debt issuance costs were $2.5 million and $1.7 million as of July 10, 2016 and December 27, 2015. |
Derivative Financial Instruments |
6 Months Ended |
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Jul. 10, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company had no active derivative financial instrument at July 10, 2016 and December 27, 2015. The Company had one interest rate swap which matured on June 30, 2015. The loss on the interest rate swap designated as a cash flow hedge recognized in other comprehensive loss and reclassifications from Accumulated other comprehensive loss to earnings for the twenty-eight weeks ended July 12, 2015 were immaterial. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short term nature or maturity of the instruments. The following tables present the Company’s assets measured at fair value on a recurring basis as of July 10, 2016 and December 27, 2015 (in thousands):
Other than disclosed in Note 5, Acquisition of Red Robin Franchised Restaurants, as of July 10, 2016 and December 27, 2015, the Company had no financial assets or liabilities that were measured using level 3 inputs. The Company also had no non-financial assets or liabilities that were required to be measured on a recurring basis. Disclosures of Fair Value of Other Assets and Liabilities The Company’s liabilities under its credit facility and capital leases are carried at historical cost in the accompanying condensed consolidated balance sheets. For disclosure purposes, the Company estimated the fair value of the credit facility and capital lease obligations using discounted cash flow analysis based on market rates obtained from independent third parties for similar types of debt. Both the credit facility and the Company’s capital lease obligations are considered to be level 2 instruments. The following table presents the carrying value and estimated fair value of the Company’s credit facility and capital lease obligations as of July 10, 2016 and December 27, 2015 (in thousands):
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Commitments and Contingencies |
6 Months Ended |
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Jul. 10, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, there are various claims in process, matters in litigation, and other contingencies. These include employment-related claims and claims alleging illness, injury, or other food quality, health, or operational issues. Evaluating contingencies related to litigation is a complex process involving subjective judgment on the potential outcome of future events, and the ultimate resolution of litigated claims may differ from our current analysis. We review the adequacy of accruals and disclosures pertaining to litigation matters each quarter in consultation with legal counsel, and we assess the probability and range of possible losses associated with contingencies for potential accrual in the consolidated financial statements. While it is not possible to predict the outcome of these claims with certainty, management is of the opinion that adequate provision for potential losses associated with these matters has been made in the financial statements. The Company had $3.9 million and $0.1 million of liabilities recorded for various legal contingencies as of July 10, 2016 and December 27, 2015. During the twenty-eight weeks ended July 10, 2016, the Company recorded $3.9 million of litigation contingencies for employment-related claims. |
Subsequent Event |
6 Months Ended |
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Jul. 10, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On August 8, 2016, the Company announced that Stephen E. Carley resigned from his position as Chief Executive Officer and as a member of the board of directors of the Company (the “Board”). On the same date, Denny Marie Post was appointed to the position of Chief Executive Officer and as a member of the Board. |
Basis of Presentation and Recent Accounting Pronouncements (Policies) |
6 Months Ended |
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Jul. 10, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Red Robin and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. The accompanying condensed consolidated financial statements of Red Robin have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 27, 2015 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. For further information, please refer to and read these interim condensed consolidated financial statements in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2015, filed with the SEC on February 19, 2016. The Company’s quarter that ended July 10, 2016 is referred to as second quarter 2016, or the twelve weeks ended July 10, 2016; the first quarter ended April 17, 2016 is referred to as first quarter 2016, or the sixteen weeks ended April 17, 2016; and together the first and second quarters of 2016 are referred to as the twenty-eight weeks ended July 10, 2016. The quarter ended July 12, 2015 is referred to as second quarter 2015, or the twelve weeks ended July 12, 2015; the first quarter ended April 19, 2015 is referred to as first quarter 2015, or the sixteen weeks ended April 19, 2015; and together the first and second quarters of 2015 are referred to as the twenty-eight weeks ended July 12, 2015. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2016, the FASB issued guidance on stock-based compensation, which changes the accounting for, and classification of, excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification, and the classification of those taxes paid on the statement of cash flows. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016 with early adoption permitted. The guidance will be applied either prospectively, retrospectively, or using a cumulative effect transition method, depending on the area covered in this update. The Company expects to adopt this guidance when required, beginning with its fiscal first quarter 2017, and is currently evaluating its expected method of adoption along with the effect this guidance will have on the Company’s consolidated financial statements and related disclosures. In February 2016, the FASB issued new guidance on accounting for leases. This guidance requires the recognition of liabilities for lease obligations and corresponding right-of-use assets on the balance sheet and disclosure of key information about leasing arrangements. This guidance is effective for annual and interim reporting periods beginning after December 15, 2018 using a modified retrospective adoption method. Early adoption is permitted. We are evaluating the impact this guidance will have on our consolidated financial statements but expect this adoption will result in a significant increase in the assets and liabilities on our consolidated balance sheet. We are evaluating new lease management systems which will facilitate our transition to this guidance. In May 2014, the FASB issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The guidance is effective for reporting periods beginning after December 15, 2017 with early adoption permitted. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. In March 2016, the FASB issued an Accounting Standards Update (“ASU”) that amends the principal versus agent guidance in the new revenue recognition standard. The ASU clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. In April 2016, the FASB issued an ASU to clarify the guidance on accounting for licenses or intellectual property and identifying performance obligations in the new revenue recognition standard. The ASU clarifies how an entity should evaluate the nature of its promise in grants of a license of intellectual property and when promised goods or services are distinct within the context of a contract. In addition, in May 2016, the FASB issued an ASU that clarifies several narrow-scope improvements and practical expedients for adopting the new revenue guidance, including defining a completed contract at transition, clarifying how contract changes occurring prior to the earliest period presented may be recognized, and elaborating on the collectibility criterion in Step 1 of the new revenue model. We do not believe the new revenue recognition standard will impact our recognition of food and beverage sales from Company-owned restaurants or our recognition of royalty fees from franchisees. We are continuing to evaluate the impact the adoption of this standard will have on the recognition of other infrequent transactions, including the initial franchise fees we recognized when the franchise restaurants opened and franchise contributions to our two national media advertising funds, as well as the expected timing and method of adoption. |
Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The following table presents goodwill as of July 10, 2016 and December 27, 2015 (in thousands):
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Schedule of intangible assets subject to amortization | The following table presents intangible assets as of July 10, 2016 and December 27, 2015 (in thousands):
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Schedule of intangible assets not subject to amortization | The following table presents intangible assets as of July 10, 2016 and December 27, 2015 (in thousands):
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Schedule of estimated aggregate future amortization expense | The estimated aggregate future amortization expense as of July 10, 2016 is as follows (in thousands):
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Stock Incentive Plans (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of average assumptions used in estimation of fair value of options | The weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model for periods in which options were granted were as follows:
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Summary of status of the Company's stock option plans | The following table presents a summary of the Company’s stock-based compensation activity for the twenty-eight weeks ended July 10, 2016 (in thousands):
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computations for basic and diluted earnings per share | The computations for basic and diluted earnings per share are as follows (in thousands, except per share data):
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Acquisition of Red Robin Franchised Restaurants (Tables) |
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Jul. 10, 2016 | |||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions | Including those adjustments made in the second quarter 2016, the Company preliminarily allocated the purchase price to the fair value of the assets acquired and liabilities assumed as follows (in thousands):
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Borrowings (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of borrowings | Borrowings as of July 10, 2016 and December 27, 2015 are summarized below (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value assets measured on recurring basis | The following tables present the Company’s assets measured at fair value on a recurring basis as of July 10, 2016 and December 27, 2015 (in thousands):
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Summary of fair value of debt | The following table presents the carrying value and estimated fair value of the Company’s credit facility and capital lease obligations as of July 10, 2016 and December 27, 2015 (in thousands):
|
Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Details) |
6 Months Ended |
---|---|
Jul. 10, 2016
state
province
restaurant
fund
segment
| |
Franchisor Disclosure [Line Items] | |
Number of operating segments | segment | 1 |
Number of reportable segments | segment | 1 |
Number of marketing and national media funds to which the entity and franchisees must contribute a minimum percentage of revenue | fund | 2 |
Company-owned operated restaurants | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | restaurant | 460 |
Number of states in which restaurants are located | state | 39 |
Number of Canadian provinces in which restaurants are located | province | 2 |
Franchised restaurants | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | restaurant | 86 |
Number of states in which restaurants are located | state | 15 |
Goodwill and Intangible Assets - Summary of Future Amortization (Details) - USD ($) $ in Thousands |
Jul. 10, 2016 |
Dec. 27, 2015 |
---|---|---|
Estimated aggregate future amortization expense | ||
Remainder of 2016 | $ 2,108 | |
2017 | 4,510 | |
2018 | 4,297 | |
2019 | 4,249 | |
2020 | 3,724 | |
Thereafter | 18,850 | |
Net Carrying Amount | $ 37,738 | $ 33,739 |
Earnings Per Share - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 10, 2016 |
Jul. 12, 2015 |
Jul. 10, 2016 |
Jul. 12, 2015 |
|
Earnings Per Share [Abstract] | ||||
Weighted average stock options outstanding (in shares) | 248 | 72 | 214 | 48 |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income | $ 7,552 | $ 11,166 | $ 21,777 | $ 27,731 |
Basic weighted average shares outstanding (in shares) | 13,511 | 14,142 | 13,582 | 14,134 |
Dilutive effect of stock options and awards (in shares) | 133 | 169 | 142 | 188 |
Diluted weighted average shares outstanding (in shares) | 13,644 | 14,311 | 13,724 | 14,322 |
Basic (in dollars per share) | $ 0.56 | $ 0.79 | $ 1.60 | $ 1.96 |
Diluted (in dollars per share) | $ 0.55 | $ 0.78 | $ 1.59 | $ 1.94 |
Restaurant Impairments and Closures - Additional Information (Details) |
3 Months Ended | 4 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jul. 10, 2016
USD ($)
restaurant
|
Jul. 12, 2015
USD ($)
|
Apr. 17, 2016
USD ($)
restaurant
|
Jul. 10, 2016
USD ($)
|
Jul. 12, 2015
USD ($)
restaurant
|
|
Restructuring and Related Activities [Abstract] | |||||
Number of restaurants impaired | 6 | ||||
Impairment of restaurants impaired | $ | $ 3,900,000 | ||||
Number of restaurants relocated | 1 | ||||
Asset impairment | $ | $ 3,860,000 | $ 0 | $ 800,000 | $ 4,685,000 | $ 0 |
Number of restaurants closed | 1 | 1 | 1 |
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands |
Jul. 10, 2016 |
Dec. 27, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 305,108 | $ 210,847 |
Less: Current portion | (641) | (531) |
Long-term debt | 304,467 | 210,316 |
Revolving line of credit | Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 293,375 | 202,875 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Total debt | $ 11,733 | $ 7,972 |
Derivative Financial Instruments - Additional Information (Details) - interest_rate_swap |
6 Months Ended | ||
---|---|---|---|
Jul. 12, 2015 |
Jul. 10, 2016 |
Dec. 27, 2015 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Number of interest rate swaps held | 0 | 0 | |
Number of derivative instruments held | 1 |
Fair Value Measurements - Summary of Assets at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands |
Jul. 10, 2016 |
Dec. 27, 2015 |
---|---|---|
Assets: | ||
Investments in rabbi trust | $ 8,699 | $ 6,863 |
Total assets measured at fair value | 8,699 | 6,863 |
Level 1 | ||
Assets: | ||
Investments in rabbi trust | 8,699 | 6,863 |
Total assets measured at fair value | 8,699 | 6,863 |
Level 2 | ||
Assets: | ||
Investments in rabbi trust | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Level 3 | ||
Assets: | ||
Investments in rabbi trust | 0 | 0 |
Total assets measured at fair value | $ 0 | $ 0 |
Fair Value Measurements - Summary of Carrying Value and Estimated Fair Value of Liabilities (Details) - USD ($) $ in Thousands |
Jul. 10, 2016 |
Dec. 27, 2015 |
---|---|---|
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facility | $ 292,500 | $ 202,000 |
Capital lease obligations | 11,733 | 7,972 |
Total | 304,233 | 209,972 |
Estimated Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facility | 292,330 | 201,829 |
Capital lease obligations | 13,951 | 9,177 |
Total | $ 306,281 | $ 211,006 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jul. 10, 2016 |
Dec. 27, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for various legal matters | $ 3.9 | $ 0.1 |
Employment-related Claims | ||
Loss Contingencies [Line Items] | ||
Loss contingencies recorded during period | $ 3.9 |
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