QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large Accelerated Filer | ☐ | ☒ | ||||||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | |||||||||||||||
(Global Select Market) |
Page | ||||||||
(Unaudited) | ||||||||||||||
(in thousands, except for share amounts) | October 4, 2020 | December 29, 2019 | ||||||||||||
Assets: | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable, net | ||||||||||||||
Inventories | ||||||||||||||
Income tax receivable | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property and equipment, net | ||||||||||||||
Right of use assets, net | ||||||||||||||
Goodwill | ||||||||||||||
Intangible assets, net | ||||||||||||||
Other assets, net | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and stockholders' equity: | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued payroll and payroll-related liabilities | ||||||||||||||
Unearned revenue | ||||||||||||||
Current portion of lease obligations | ||||||||||||||
Current portion of long-term debt | ||||||||||||||
Accrued liabilities and other | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Long-term portion of lease obligations | ||||||||||||||
Other non-current liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Stockholders' equity: | ||||||||||||||
Common stock; $ | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Treasury stock | ( | ( | ||||||||||||
Paid-in capital | ||||||||||||||
Accumulated other comprehensive loss, net of tax | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Total stockholders' equity | ||||||||||||||
Total liabilities and stockholders' equity | $ | $ |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
(in thousands, except for share amounts) | October 4, 2020 | October 6, 2019 | October 4, 2020 | October 6, 2019 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Restaurant revenue | $ | $ | $ | $ | ||||||||||||||||||||||
Franchise and other revenues | ||||||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||||||||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||||
Labor | ||||||||||||||||||||||||||
Other operating | ||||||||||||||||||||||||||
Occupancy | ||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Selling, general, and administrative expenses | ||||||||||||||||||||||||||
Pre-opening costs | ||||||||||||||||||||||||||
Other charges | ( | |||||||||||||||||||||||||
Total costs and expenses | ||||||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | ||||||||||||||||||||||
Other expense: | ||||||||||||||||||||||||||
Interest expense, net and other | ||||||||||||||||||||||||||
Loss before income taxes | ( | ( | ( | ( | ||||||||||||||||||||||
Income tax benefit | ( | ( | ( | ( | ||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Loss per share: | ||||||||||||||||||||||||||
Basic | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Diluted | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Foreign currency translation adjustment | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | |||||||||||||||||||||||
Total comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
Common Stock | Treasury Stock | Accumulated Other Comprehensive Loss, net of tax | ||||||||||||||||||||||||||||||||||||||||||||||||
Paid-in Capital | Retained Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 29, 2019 | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan | — | — | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Non-cash stock compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, April 19, 2020 | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, $ | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan | — | — | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash stock compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Balance, July 12, 2020 | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, $0.001 par value, net of stock issuance costs | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan | — | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Non-cash stock compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Balance, October 4, 2020 | $ | $ | ( | $ | $ | ( | $ | $ |
Common Stock | Treasury Stock | Accumulated Other Comprehensive Loss, net of tax | ||||||||||||||||||||||||||||||||||||||||||||||||
Paid-in Capital | Retained Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 30, 2018 | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan | — | — | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Non-cash stock compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Topic 842 transition impairment, net of tax | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, April 21, 2019 | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan | — | — | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Non-cash stock compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Balance July 14, 2019 | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan | — | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Non-cash stock compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, October 6, 2019 | $ | $ | ( | $ | $ | ( | $ |
Forty Weeks Ended | ||||||||||||||
(in thousands) | October 4, 2020 | October 6, 2019 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net loss | $ | ( | $ | ( | ||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Gift card breakage | ( | ( | ||||||||||||
Goodwill and restaurant asset impairment | ||||||||||||||
Non-cash other charges | ( | ( | ||||||||||||
Deferred income tax provision (benefit) | ( | |||||||||||||
Stock-based compensation expense | ||||||||||||||
Other, net | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | ||||||||||||||
Income tax receivable | ( | |||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Lease assets, net of liabilities | ( | |||||||||||||
Trade accounts payable and accrued liabilities | ( | ( | ||||||||||||
Unearned revenue | ( | ( | ||||||||||||
Other operating assets and liabilities, net | ||||||||||||||
Net cash (used in) provided by operating activities | ( | |||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of property, equipment, and intangible assets | ( | ( | ||||||||||||
Proceeds from sales of real estate and property, plant, and equipment and other investing activities | ||||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Borrowings of long-term debt | ||||||||||||||
Payments of long-term debt and finance leases | ( | ( | ||||||||||||
Purchase of treasury stock | ( | ( | ||||||||||||
Debt issuance costs | ( | |||||||||||||
Proceeds from issuance of common stock, net of stock issuance costs | ||||||||||||||
Proceeds from exercise of stock options and employee stock purchase plan | ||||||||||||||
Net cash provided by (used in) financing activities | ( | |||||||||||||
Effect of exchange rate changes on cash | ( | |||||||||||||
Net change in cash and cash equivalents | ( | |||||||||||||
Cash and cash equivalents, beginning of period | ||||||||||||||
Cash and cash equivalents, end of period | $ | $ | ||||||||||||
Supplemental disclosure of cash flow information | ||||||||||||||
Income taxes (refund received) paid | $ | ( | $ | |||||||||||
Interest paid, net of amounts capitalized | ||||||||||||||
Change in construction related payables | $ | $ |
Periods | Period End Date | Number of Weeks in Period | ||||||||||||
Current and Prior Fiscal Quarters: | ||||||||||||||
Third Quarter 2020 | October 4, 2020 | 12 | ||||||||||||
Third Quarter 2019 | October 6, 2019 | 12 | ||||||||||||
Second Quarter 2020 | July 12, 2020 | 12 | ||||||||||||
Second Quarter 2019 | July 14, 2019 | 12 | ||||||||||||
First Quarter 2020 | April 19, 2020 | 16 | ||||||||||||
First Quarter 2019 | April 21, 2019 | 16 | ||||||||||||
Current and Prior Fiscal Years: | ||||||||||||||
Fiscal Year 2020 | December 27, 2020 | 52 | ||||||||||||
Fiscal Year 2019 | December 29, 2019 | 52 |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
October 4, 2020 | October 6, 2019 | October 4, 2020 | October 6, 2019 | |||||||||||||||||||||||
Restaurant revenue | $ | $ | $ | $ | ||||||||||||||||||||||
Franchise revenue(1) | ||||||||||||||||||||||||||
Gift card breakage | ||||||||||||||||||||||||||
Other revenue | ||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
October 4, 2020 | December 29, 2019 | ||||||||||
Unearned gift card revenue | $ | $ | |||||||||
Deferred loyalty revenue | $ | $ |
Forty Weeks Ended | |||||||||||
October 4, 2020 | October 6, 2019 | ||||||||||
Gift card revenue | $ | $ |
October 4, 2020 | Finance | Operating | Total | |||||||||||||||||
Right of use assets, net | $ | $ | $ | |||||||||||||||||
Current portion of lease obligations | ||||||||||||||||||||
Long-term portion of lease obligations | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
December 29, 2019 | Finance | Operating | Total | |||||||||||||||||
Right of use assets, net | $ | $ | $ | |||||||||||||||||
Current portion of lease obligations | ||||||||||||||||||||
Long-term portion of lease obligations | ||||||||||||||||||||
Total | $ | $ | $ |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
October 4, 2020 | October 6, 2019 | October 4, 2020 | October 6, 2019 | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Finance lease cost: | ||||||||||||||||||||||||||
Amortization of right of use assets | ||||||||||||||||||||||||||
Interest on lease liabilities | ||||||||||||||||||||||||||
Total finance lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Variable lease cost | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Finance Leases | Operating Leases | Total | |||||||||||||||
Remainder of 2020 | $ | $ | $ | ||||||||||||||
2021 | |||||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total future lease liability | $ | $ | $ | ||||||||||||||
Less imputed interest | |||||||||||||||||
Fair value of lease liability | $ | $ | $ |
Forty Weeks Ended | ||||||||||||||
October 4, 2020 | October 6, 2019 | |||||||||||||
Cash flows from operating activities | ||||||||||||||
Cash paid related to lease liabilities | ||||||||||||||
Operating leases | $ | $ | ||||||||||||
Finance leases | ||||||||||||||
Cash flows from financing activities | ||||||||||||||
Cash paid related to lease liabilities | ||||||||||||||
Finance leases | ||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | $ | $ | ||||||||||||
Right of use assets obtained in exchange for operating lease obligations | $ | $ | ||||||||||||
Right of use assets obtained in exchange for finance lease obligations | $ | $ | ||||||||||||
Other information related to operating leases as follows: | ||||||||||||||
Weighted average remaining lease term | ||||||||||||||
Weighted average discount rate | % | % | ||||||||||||
Other information related to finance leases as follows: | ||||||||||||||
Weighted average remaining lease term | ||||||||||||||
Weighted average discount rate | % | % |
Balance, December 29, 2019 | $ | |||||||
Foreign currency translation adjustment | ( | |||||||
Goodwill impairment(1) | ( | |||||||
Balance, October 4, 2020 | $ |
October 4, 2020 | December 29, 2019 | |||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||
Intangible assets subject to amortization: | ||||||||||||||||||||||||||||||||||||||
Franchise rights | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Leasehold interests | ( | ( | ||||||||||||||||||||||||||||||||||||
Liquor licenses and other | ( | ( | ||||||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||||||||||||||
Liquor licenses and other | $ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||||||||||||||
Intangible assets, net | $ | $ | ( | $ | $ | $ | ( | $ |
Twelve Weeks Ended | Forty Weeks Ended | ||||||||||||||||||||||
October 4, 2020 | October 6, 2019 | October 4, 2020 | October 6, 2019 | ||||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Dilutive effect of stock options and awards | |||||||||||||||||||||||
Diluted weighted average shares outstanding | |||||||||||||||||||||||
Awards excluded due to anti-dilutive effect on diluted loss per share |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
October 4, 2020 | October 6, 2019 | October 4, 2020 | October 6, 2019 | |||||||||||||||||||||||
Goodwill impairment | $ | $ | $ | $ | ||||||||||||||||||||||
Restaurant asset impairment | ||||||||||||||||||||||||||
Restaurant closure and refranchising costs (gains) | ( | ( | ||||||||||||||||||||||||
Litigation contingencies | ||||||||||||||||||||||||||
Board and stockholder matter costs | ||||||||||||||||||||||||||
COVID-19 related costs | ||||||||||||||||||||||||||
Severance and executive transition | ||||||||||||||||||||||||||
Executive retention | ||||||||||||||||||||||||||
Other charges (gains) | $ | $ | ( | $ | $ |
October 4, 2020 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Investments in rabbi trust | $ | $ | $ | $ | ||||||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
December 29, 2019 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Investments in rabbi trust | $ | $ | $ | $ | ||||||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ |
Period Ended(2) | ||||||||||||||||||||||||||
Reopened Company-owned Restaurant Indoor Dining Rooms | 9-Aug | 6-Sept | 4-Oct | 1-Nov(3) | ||||||||||||||||||||||
Net comparable restaurant revenues | (29.1)% | (20.1)% | (9.5)% | (13.7)% | ||||||||||||||||||||||
Average weekly net sales per restaurant | $38,779 | $41,272 | $43,034 | $42,778 | ||||||||||||||||||||||
# of comparable Company-owned restaurants(1) | 340 | 347 | 381 | 362 |
Period Ended(2) | ||||||||||||||||||||||||||
Company-owned Restaurants | 9-Aug | 6-Sept | 4-Oct | 1-Nov(3) | ||||||||||||||||||||||
Net comparable restaurant revenues | (34.2)% | (24.9)% | (14.9)% | (15.4)% | ||||||||||||||||||||||
Average weekly net sales per restaurant | $36,830 | $39,728 | $41,731 | $42,509 | ||||||||||||||||||||||
# of comparable Company-owned restaurants(1) | 412 | 412 | 412 | 412 |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
October 4, 2020 | October 6, 2019 | October 4, 2020 | October 6, 2019 | |||||||||||||||||||||||
Company-owned: | ||||||||||||||||||||||||||
Beginning of period | 450 | 472 | 454 | 484 | ||||||||||||||||||||||
Opened during the period | — | 1 | — | — | ||||||||||||||||||||||
Closed during the period(1) | (6) | (2) | (10) | (13) | ||||||||||||||||||||||
End of period | 444 | 471 | 444 | 471 | ||||||||||||||||||||||
Franchised: | ||||||||||||||||||||||||||
Beginning of period | 102 | 90 | 102 | 89 | ||||||||||||||||||||||
Opened during the period | 1 | — | 1 | 1 | ||||||||||||||||||||||
End of period | 103 | 90 | 103 | 90 | ||||||||||||||||||||||
Total number of restaurants | 547 | 561 | 547 | 561 |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
October 4, 2020 | October 6, 2019 | October 4, 2020 | October 6, 2019 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Restaurant revenue | 98.3 | % | 98.5 | % | 98.6 | % | 98.1 | % | ||||||||||||||||||
Franchise and other revenues | 1.7 | 1.5 | 1.4 | 1.9 | ||||||||||||||||||||||
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 | 23.8 | 23.6 | 23.7 | ||||||||||||||||||||||
Labor | 37.7 | 36.2 | 38.8 | 35.7 | ||||||||||||||||||||||
Other operating | 19.1 | 15.3 | 18.9 | 14.4 | ||||||||||||||||||||||
Occupancy | 11.2 | 8.6 | 11.6 | 8.6 | ||||||||||||||||||||||
Total restaurant operating costs | 91.4 | 83.9 | 92.9 | 82.4 | ||||||||||||||||||||||
Depreciation and amortization | 9.6 | 7.2 | 10.2 | 7.0 | ||||||||||||||||||||||
Selling, general and administrative | 10.6 | 12.5 | 12.4 | 11.8 | ||||||||||||||||||||||
Pre-opening and acquisition costs | — | — | — | — | ||||||||||||||||||||||
Other charges (gains) | 2.2 | (0.6) | 20.7 | 1.7 | ||||||||||||||||||||||
Loss from operations | (12.3) | (1.8) | (35.0) | (1.4) | ||||||||||||||||||||||
Interest expense, net and other | 1.1 | 0.6 | 1.1 | 0.7 | ||||||||||||||||||||||
Loss before income taxes | (13.4) | (2.4) | (36.1) | (2.2) | ||||||||||||||||||||||
Income tax benefit | (10.3) | (1.8) | (0.6) | (2.1) | ||||||||||||||||||||||
Net loss | (3.1) | % | (0.6) | % | (35.5) | % | — | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(Revenues in thousands) | October 4, 2020 | October 6, 2019 | Percent Change | October 4, 2020 | October 6, 2019 | Percent Change | ||||||||||||||||||||||||||||||||
Restaurant revenue | $ | 197,009 | $ | 289,862 | (32.0) | % | $ | 658,587 | $ | 992,764 | (33.7) | % | ||||||||||||||||||||||||||
Franchise royalties, fees and other revenue | 3,469 | 4,360 | (20.4) | % | 9,078 | 19,305 | (53.0) | % | ||||||||||||||||||||||||||||||
Total revenues | $ | 200,478 | $ | 294,222 | (31.9) | % | $ | 667,665 | $ | 1,012,069 | (34.0) | % | ||||||||||||||||||||||||||
Average weekly net sales volumes in Company-owned restaurants | $ | 39,418 | $ | 51,221 | (23.0) | % | $ | 38,352 | $ | 51,961 | (26.2) | % | ||||||||||||||||||||||||||
Total operating weeks | 4,998 | 5,659 | (11.7) | % | 17,172 | 19,106 | (10.1) | % | ||||||||||||||||||||||||||||||
Net sales per square foot | $ | 75 | $ | 98 | (23.1) | % | $ | 247 | $ | 334 | (26.2) | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 4, 2020 | October 6, 2019 | Percent Change | October 4, 2020 | October 6, 2019 | Percent Change | ||||||||||||||||||||||||||||||||
Cost of sales | $ | 46,037 | $ | 69,017 | (33.3) | % | $ | 155,243 | $ | 235,119 | (34.0) | % | ||||||||||||||||||||||||||
As a percent of restaurant revenue | 23.4 | % | 23.8 | % | (0.4) | % | 23.6 | % | 23.7 | % | (0.1) | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 4, 2020 | October 6, 2019 | Percent Change | October 4, 2020 | October 6, 2019 | Percent Change | ||||||||||||||||||||||||||||||||
Labor | $ | 74,344 | $ | 104,870 | (29.1) | % | $ | 255,652 | $ | 354,302 | (27.8) | % | ||||||||||||||||||||||||||
As a percent of restaurant revenue | 37.7 | % | 36.2 | % | 1.5 | % | 38.8 | % | 35.7 | % | 3.1 | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 4, 2020 | October 6, 2019 | Percent Change | October 4, 2020 | October 6, 2019 | Percent Change | ||||||||||||||||||||||||||||||||
Other operating | $ | 37,631 | $ | 44,317 | (15.1) | % | $ | 124,585 | $ | 142,882 | (12.8) | % | ||||||||||||||||||||||||||
As a percent of restaurant revenue | 19.1 | % | 15.3 | % | 3.8 | % | 18.9 | % | 14.4 | % | 4.5 | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 4, 2020 | October 6, 2019 | Percent Change | October 4, 2020 | October 6, 2019 | Percent Change | ||||||||||||||||||||||||||||||||
Occupancy | $ | 22,099 | $ | 24,942 | (11.4) | % | $ | 76,514 | $ | 85,420 | (10.4) | % | ||||||||||||||||||||||||||
As a percent of restaurant revenue | 11.2 | % | 8.6 | % | 2.6 | % | 11.6 | % | 8.6 | % | 3.0 | % | ||||||||||||||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 4, 2020 | October 6, 2019 | Percent Change | October 4, 2020 | October 6, 2019 | Percent Change | ||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 19,173 | $ | 21,280 | (9.9) | % | $ | 68,053 | $ | 71,087 | (4.3) | % | ||||||||||||||||||||||||||
As a percent of total revenues | 9.6 | % | 7.2 | % | 2.4 | % | 10.2 | % | 7.0 | % | 3.2 | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 4, 2020 | October 6, 2019 | Percent Change | October 4, 2020 | October 6, 2019 | Percent Change | ||||||||||||||||||||||||||||||||
Selling, general, and administrative | $ | 21,284 | $ | 36,776 | (42.1) | % | $ | 82,483 | $ | 120,126 | (31.3) | % | ||||||||||||||||||||||||||
As a percent of total revenues | 10.6 | % | 12.5 | % | (1.9) | % | 12.4 | % | 11.8 | % | 0.6 | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 4, 2020 | October 6, 2019 | Percent Change | October 4, 2020 | October 6, 2019 | Percent Change | ||||||||||||||||||||||||||||||||
Pre-opening costs | $ | 89 | $ | — | — | % | $ | 245 | $ | 319 | (23.2) | % | ||||||||||||||||||||||||||
As a percent of total revenues | — | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||||
Forty Weeks Ended | ||||||||||||||
October 4, 2020 | October 6, 2019 | |||||||||||||
Net cash (used in) provided by operating activities | $ | (22,401) | $ | 41,617 | ||||||||||
Net cash used in investing activities | (14,131) | (32,900) | ||||||||||||
Net cash provided by (used in) financing activities | 34,020 | (7,156) | ||||||||||||
Effect of exchange rate changes on cash | (166) | 81 | ||||||||||||
Net change in cash and cash equivalents | $ | (2,678) | $ | 1,642 |
Forty Weeks Ended | |||||||||||
October 4, 2020 | October 6, 2019 | ||||||||||
Restaurant maintenance capital and other | $ | 8,433 | $ | 13,128 | |||||||
Investment in technology infrastructure and other | 6,437 | 16,832 | |||||||||
Restaurant remodels | — | 3,118 | |||||||||
Total capital expenditures | $ | 14,870 | $ | 33,078 |
Exhibit Number | Description | |||||||
101 | The following financial information from the Quarterly Report on Form 10-Q of Red Robin Gourmet Burgers, Inc. for the quarter ended October 4, 2020 formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at October 4, 2020 and December 29, 2019; (ii) Condensed Consolidated Statements of Operations and Comprehensive Loss for the twelve and forty weeks ended October 4, 2020 and October 6, 2019; (iii) Condensed Consolidated Statements of Stockholders' Equity at October 4, 2020 and October 6, 2019; (iv) Condensed Consolidated Statements of Cash Flows for the forty weeks ended October 4, 2020 and October 6, 2019; and (v) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text. |
RED ROBIN GOURMET BURGERS, INC. (Registrant) | ||||||||||||||
November 5, 2020 | By: | /s/ Lynn S. Schweinfurth | ||||||||||||
(Date) | Lynn S. Schweinfurth (Chief Financial Officer) |
November 5, 2020 | /s/ Paul Murphy | |||||||
(Date) | Paul Murphy Chief Executive Officer |
November 5, 2020 | /s/ Lynn S. Schweinfurth | |||||||
(Date) | Lynn S. Schweinfurth Chief Financial Officer |
Dated: | November 5, 2020 | /s/ Paul Murphy | |||||||||
Paul Murphy Chief Executive Officer | |||||||||||
Dated: | November 5, 2020 | /s/ Lynn S. Schweinfurth | |||||||||
Lynn S. Schweinfurth Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Oct. 04, 2020 |
Dec. 29, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 45,000,000 | 45,000,000 |
Common Stock, Shares, Issued | 20,449,000 | 17,851,000 |
Common Stock, Shares, Outstanding | 15,548,000 | 12,923,000 |
Preferred Stock, Par or Stated Value 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 | 4,901,000 | 4,928,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Oct. 04, 2020 |
Oct. 06, 2019 |
Oct. 04, 2020 |
Oct. 06, 2019 |
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Revenues: | ||||
Total revenues | $ 200,478 | $ 294,222 | $ 667,665 | $ 1,012,069 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||
Cost of sales | 46,037 | 69,017 | 155,243 | 235,119 |
Labor | 74,344 | 104,870 | 255,652 | 354,302 |
Other operating | 37,631 | 44,317 | 124,585 | 142,882 |
Occupancy | 22,099 | 24,942 | 76,514 | 85,420 |
Depreciation and amortization | 19,173 | 21,280 | 68,053 | 71,087 |
Selling, general, and administrative expenses | 21,284 | 36,776 | 82,483 | 120,126 |
Pre-opening costs | 89 | 0 | 245 | 319 |
Other charges | 4,416 | (1,757) | 138,296 | 17,488 |
Total costs and expenses | 225,073 | 299,445 | 901,071 | 1,026,743 |
Loss from operations | (24,595) | (5,223) | (233,406) | (14,674) |
Other expense: | ||||
Interest expense, net and other | 2,280 | 1,812 | 7,629 | 7,203 |
Loss before income taxes | (26,875) | (7,035) | (241,035) | (21,877) |
Income tax benefit | (20,696) | (5,214) | (4,297) | (21,676) |
Net loss | $ (6,179) | $ (1,821) | $ (236,738) | $ (201) |
Earnings Per Share [Abstract] | ||||
Basic (in dollars per share) | $ (0.40) | $ (0.14) | $ (16.98) | $ (0.02) |
Diluted (in dollars per share) | $ (0.40) | $ (0.14) | $ (16.98) | $ (0.02) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 15,540 | 12,959 | 13,945 | 12,967 |
Diluted (in shares) | 15,540 | 12,959 | 13,945 | 12,967 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | $ 9 | $ (262) | $ (1,121) | $ (185) |
Other comprehensive income (loss), net of tax | 9 | (262) | (1,121) | (185) |
Total comprehensive loss | (6,170) | (2,083) | (237,859) | (386) |
Restaurant revenue | ||||
Revenues: | ||||
Total revenues | 197,009 | 289,862 | 658,587 | 992,764 |
Franchise and other revenues | ||||
Revenues: | ||||
Total revenues | $ 3,469 | $ 4,360 | $ 9,078 | $ 19,305 |
Basis of Presentation and Recent Accounting Pronouncements |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Recent Accounting Pronouncements | 1. 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 operates, franchises, and develops full-service restaurants in North America. As of October 4, 2020, the Company owned and operated 444 restaurants located in 38 states. The Company also had 103 franchised full-service restaurants in 16 states and one Canadian province. 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. 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"), including the instructions to Form 10-Q and Article 10 of Regulation S-X. 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 29, 2019 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 29, 2019, filed with the SEC on February 25, 2020. Our current and prior year periods, period end dates, and number of weeks included in the period are summarized in the table below:
Reclassifications Certain amounts presented in prior periods have been reclassified to conform with the current period presentation. As of December 29, 2019, the Company reclassified $5.3 million from Prepaid expenses and other current assets to Income tax receivable on the condensed consolidated balance sheets. For the forty weeks ended October 6, 2019, the Company reclassified the following within net cash (used in) provided by operating activities on the condensed consolidated statements of cash flows: $14.1 million from Non-cash other charges to Goodwill and restaurant asset impairment, $0.9 million from Prepaid expenses and other current assets to Income tax receivable, and $0.3 million from Other operating assets and liabilities, net to Lease assets, net of liabilities. Recent Accounting Pronouncements Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued Update 2019-12, Income Taxes ("Topic 740") as part of its Simplification Initiative. This guidance provides amendments to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for annual and interim reporting periods beginning after December 15, 2020, and early adoption is permitted. We are currently evaluating the full impact this guidance will have on our consolidated financial statements. We reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a significant impact on the Company's condensed consolidated financial statements.
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COVID-19 Pandemic |
9 Months Ended |
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Oct. 04, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 Pandemic | COVID-19 Pandemic Overview Due to the novel coronavirus ("COVID-19") pandemic, we continue to navigate an unprecedented time for our business and industry. During the third quarter 2020, the Company continued to expand outdoor seating capacity at reopened Company-owned restaurants in accordance with local limits. Reopening dining rooms and expanding seating capacity was executed with the health, safety, and well-being of Red Robin's Team Members, Guests, and communities in mind, and strict adherence to US Centers for Disease Control and Prevention, state, and local guidelines as our top priority. The COVID-19 pandemic has had a material adverse effect on our business, and we expect the impact from COVID-19 will continue to negatively affect our business. Franchise Revenue In response to COVID-19's effect on our franchise operations, we temporarily abated franchise royalty payments and advertising contributions effective March 20, 2020. During periods of abated payments, franchise revenue was not recognized or collected from our franchisees. Abated royalty payments and advertising contributions will not be collected by the Company. The Company began charging and collecting partial franchise royalty payments and advertising contributions during the latter half of the second fiscal quarter of 2020, which continued throughout the Company's third fiscal quarter. As of the end of the third quarter of 2020, the Company had resumed charging full royalty and advertising contributions to our franchisees. Franchised restaurants operate under contractual arrangements with the Company, and the payments specified in the franchise contracts are accounted for under ASC Topic 606, Revenue from Contracts with Customers. Rent In response to the impact of COVID-19 on our operations, beginning April 1, 2020 the Company stopped making full lease payments under its existing lease agreements. During the suspension of payments, the Company continued to recognize expenses and liabilities for lease obligations and corresponding right-of-use assets on the balance sheet in accordance with ASC Topic 842. We are engaging in ongoing constructive discussions with landlords regarding the potential restructuring of lease payments and rent concessions. As of October 4, 2020, the Company has contractually negotiated rent concessions with many of its landlords, with negotiations complete on approximately 50% of its leases. The types of rent concessions the Company has negotiated include early termination, early renewal, rent deferral, and rent abatement. For contractual rent concessions that do not substantially change the total cash flows of the lease, the Company has elected to account for these concessions assuming the existing lease agreements provide enforceable rights and obligations consistent with the relief issued by the Financial Accounting Standards Board titled ASC Topic 842 and ASC Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic ("FASB Relief"). For leases where the rent concession did not substantially change the total cash flows, the concession was accounted for as a remeasurement to the lease liability based on the original discount rate with a corresponding adjustment to the right-of-use asset. Additionally, the classification of the leases was not reassessed. The Company recorded a $2.2 million remeasurement to increase the lease liability and right-of-use asset resulting from contractual rent concessions under the FASB relief during the third fiscal quarter of 2020. For contractual rent concessions that substantially changed the total cash flows of the lease and did not qualify for the FASB relief, we applied the modification framework in accordance with ASC Topic 842, Leases. The Company reassessed lease classification for rent concessions that did not qualify for the FASB relief. During the third fiscal quarter of 2020, it was concluded no leases changed classification between operating and finance. Based on updated discount rates, a $10.1 million remeasurement was recorded to increase the lease liability and a $9.9 million adjustment, net of broker's fees, was recorded to increase the right-of-use asset during the third fiscal quarter of 2020. Contractual rent concessions granted to the Company during the third fiscal quarter of 2020 did not grant the right to use additional assets not included in the original lease contracts, so no separate contracts were accounted for as part of the rent concession modifications. Restaurant Assets During the twelve weeks ended October 4, 2020, the Company recognized $3.3 million of impairment related to assets at two permanently closed Company-owned restaurants. These impairment charges were included in Restaurant closure and refranchising costs in Other charges (gains) on the condensed consolidated statements of operation and comprehensive loss. Income Tax The March 19, 2020 passage of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") created an opportunity for the Company to carry back 2019 and 2020 net operating losses ("NOL's"). Upon filing of its 2019 federal tax return during the third quarter of 2020 and gaining further interpretations and expert technical guidance surrounding the application of the CARES Act, the Company recorded an additional $42.8 million in federal income tax receivables to Income tax receivable on the condensed consolidated balance sheets and recorded a related income tax benefit to the condensed consolidated statements of operation and comprehensive loss. After consideration for the adjustments of carrybacks due to the CARES Act, we have a combined federal and state valuation allowance of $67.1 million, which was recorded to Other assets, net on the condensed consolidated balance sheets. Subsequent to our third quarter balance sheet date, the Company received $49.4 million in cash tax refunds, including interest, and currently expects to receive between $12 million to $15 million of additional cash tax refunds within the next 12 months. A portion of this refund was used to make a $42 million repayment on the Company's credit facility on October 30, 2020. As of October 4, 2020, the Company had $9.7 million of net operating loss carryforwards for state income tax purposes that arose from the 2019 and 2020 tax years. The Company reclassified this amount from state tax current receivable which was recorded in Prepaid expenses and other current assets as of our second fiscal quarter of 2020, to state deferred tax asset which is recorded to Other Assets, net on the condensed consolidated balance sheets as a result of the CARES Act legislation and in conjunction with the filing of our state tax returns during our third fiscal quarter. Of these state net operating loss carryforwards, approximately $0.2 million may expire, if unused, in 2024. The remaining state net operating losses approximating $9.5 million may expire, if unused, through 2039 or in some cases will be retained for an indefinite period. The utilization of net operating loss carryforwards may be limited to 80% of taxable income in any given year. As states' CARES legislation continues to evolve these estimates may change. The total $67.1 million valuation allowance includes the $9.7 million state NOL's recorded as of October 4, 2020.
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Revenue |
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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):
——————————————————— (1) The decrease in Franchise revenue is driven by the temporary abatement and non-collection of franchise payments. See Note 2, COVID-19 Pandemic, for further discussion. Contract liabilities Components of Unearned revenue in the accompanying condensed consolidated balance sheets are as follows (in thousands):
Revenue recognized in the condensed consolidated statements of operations and comprehensive loss for the redemption of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Leases are included in right-of-use assets, net, current portion of lease obligations, and long-term portion of lease liabilities on our condensed consolidated balance sheet as of October 4, 2020 and December 29, 2019 as follows (in thousands):
The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in Occupancy on our condensed consolidated statement of operations as follows (in thousands):
Maturities of our lease liabilities as of October 4, 2020 were as follows (in thousands):
Supplemental cash flow information related to leases is as follows (in thousands, except other information):
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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 October 4, 2020 and December 29, 2019 (in thousands):
——————————————————— (1) See Note 2, COVID-19 Pandemic, for further discussion of goodwill impairment recognized during the forty weeks ended October 4, 2020. The following table presents intangible assets as of October 4, 2020 and December 29, 2019 (in thousands):
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Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Per Share | Loss Per Share Basic loss per share amounts are calculated by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted loss 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 loss per share reflects the potential dilution that could occur if holders of options exercised their options into common stock. The Company uses the treasury stock method to calculate the effect of outstanding stock options. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):
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Other Charges (Gains) |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Charges (Gains) | Other Charges (Gains) Other charges (gains) consist of the following (in thousands):
We performed a goodwill impairment analysis during the first quarter of 2020 resulting in full impairment of our goodwill balance. The goodwill impairment was measured as the amount by which the carrying amount of the reporting unit, including goodwill, exceeded its fair value. The Company recognized non-cash impairment charges related to restaurant assets at 30 and 29 Company-owned restaurants during the forty weeks ended October 4, 2020 and October 6, 2019 resulting from quantitative impairment analyses. Additionally, the Company recognized non-cash impairment charges of $3.3 million and $5.7 million resulting from two and six restaurant closures during the twelve and forty weeks ended October 4, 2020 included within Restaurant closure and refranchising costs. Restaurant closure and refranchising costs (gains) include the restaurant operating costs of the Company-owned restaurants that remained temporarily closed due to the COVID-19 pandemic. Gains are driven by early lease terminations on previously closed restaurants. Litigation contingencies include legal settlement costs related to two class action employment cases. Severance and executive transition in 2020 primarily relates to severance costs associated with the reduction in force of restaurant support center Team Members. COVID-19 related costs include the costs of purchasing personal protective equipment for restaurant Team Members and Guests and emergency sick pay provided to restaurant Team Members during the pandemic.
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Borrowings |
9 Months Ended |
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Oct. 04, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Total borrowings as of October 4, 2020 and December 29, 2019 were $216.1 million and $206.9 million. As of October 4, 2020, the current portion of long-term borrowings was $9.7 million; no borrowings as of December 29, 2019 were classified as current. As of October 4, 2020, the Company had outstanding borrowings under its credit facility of $215.2 million, in addition to amounts issued under letters of credit of $7.9 million. The amounts issued under letters of credit reduce the amount available under the facility but were not recorded as debt. As of December 29, 2019, the Company had outstanding borrowings under the prior credit facility of $206 million, in addition to amounts issued under letters of credit of $7.5 million. Loan origination costs associated with the Company's credit facility are included as deferred costs in Other assets, net in the accompanying condensed consolidated balance sheets. Unamortized debt issuance costs were $3.5 million and $1 million as of October 4, 2020 and December 29, 2019.
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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, accounts payable, and current accrued expenses and other liabilities 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 included in Other assets, net on the accompanying condensed consolidated balance sheets as of October 4, 2020 and December 29, 2019 (in thousands):
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized or disclosed at fair value on the condensed consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, right of use assets, goodwill, and other intangible assets. These assets are measured at fair value if determined to be impaired. The Company has measured non-financial assets for impairment using continuing and projected future cash flows, which were based on significant inputs not observable in the market and thus represented a level 3 fair value measurement. Based on our restaurant asset impairment analyses during fiscal year 2020, we impaired long-lived assets at 36 Company-owned restaurants with carrying values of $61.4 million. We determined the fair value of these long-lived restaurant assets to be $34.9 million. During fiscal year 2019, we impaired long-lived assets at 29 Company-owned restaurants with carrying values of $17.3 million. We determined the fair value of these long-lived restaurant assets to be $2.2 million. Disclosures of Fair Value of Other Assets and Liabilities The Company's liability under its credit facility is carried at historical cost in the accompanying condensed consolidated balance sheets. Due to market interest rates decreasing during fiscal year 2020, the Company determined the carrying value of the liability under its credit facility did not approximate fair value. The carrying value and fair value of the credit facility as of October 4, 2020 were $215.2 million and $218.6 million. As of December 29, 2019, the carrying value of the credit facility approximated fair value as the interest rate on the instrument approximated current market rates. The interest rate on the credit facility represents a level 2 fair value input.
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Commitments and Contingencies |
9 Months Ended |
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Oct. 04, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On July 14, 2017, a current hourly employee filed a class action lawsuit alleging that the Company failed to provide required meal breaks and rest periods and failed to reimburse business expenses, among other claims. The case is styled Manuel Vigueras v. Red Robin International, Inc. and is currently pending before the United States District Court in Santa Ana, California. In a related action, on September 21, 2017, a companion case, styled Genny Vasquez v. Red Robin International, Inc. was filed and is currently pending in California Superior Court in Santa Ana, California and involves claims under the California Private Attorneys' General Act that partially overlap the claims made in the Vigueras matter. In the first quarter of 2020, the Company reached a tentative settlement agreement resolving all claims and the cost of class administration in both cases for an aggregate $8.5 million. The Company is in the process of finalizing the settlement agreement, which will then be submitted to the court for approval. Court approval is required before any settlement agreement between the parties becomes final. An additional $4.5 million was accrued to reach the $8.5 million settlement amount during the first fiscal quarter of 2020. Amounts recorded in the periods presented for litigation contingencies are disclosed in Note 7, Other Charges. 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 condensed consolidated financial statements.
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Basis of Presentation and Recent Accounting Pronouncements (Policies) |
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Oct. 04, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. 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"), including the instructions to Form 10-Q and Article 10 of Regulation S-X. 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 29, 2019 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 29, 2019, filed with the SEC on February 25, 2020. Our current and prior year periods, period end dates, and number of weeks included in the period are summarized in the table below:
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Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform with the current period presentation. As of December 29, 2019, the Company reclassified $5.3 million from Prepaid expenses and other current assets to Income tax receivable on the condensed consolidated balance sheets. For the forty weeks ended October 6, 2019, the Company reclassified the following within net cash (used in) provided by operating activities on the condensed consolidated statements of cash flows: $14.1 million from Non-cash other charges to Goodwill and restaurant asset impairment, $0.9 million from Prepaid expenses and other current assets to Income tax receivable, and $0.3 million from Other operating assets and liabilities, net to Lease assets, net of liabilities.
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Recent Accounting Pronouncements and Recently Adopted Accounting Standards | Recent Accounting Pronouncements Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued Update 2019-12, Income Taxes ("Topic 740") as part of its Simplification Initiative. This guidance provides amendments to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for annual and interim reporting periods beginning after December 15, 2020, and early adoption is permitted. We are currently evaluating the full impact this guidance will have on our consolidated financial statements. We reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a significant impact on the Company's condensed consolidated financial statements.
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Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 04, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of revenue disaggregated by type of good or service | In the following table, revenue is disaggregated by type of good or service (in thousands):
——————————————————— (1) The decrease in Franchise revenue is driven by the temporary abatement and non-collection of franchise payments. See Note 2, COVID-19 Pandemic, for further discussion.
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Schedule of components of unearned revenue | Components of Unearned revenue in the accompanying condensed consolidated balance sheets are as follows (in thousands):
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Schedule of revenue recognized that were included in liability balances at the beginning of the fiscal year | Revenue recognized in the condensed consolidated statements of operations and comprehensive loss for the redemption of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands):
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 04, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Leased Assets and Liabilities | Leases are included in right-of-use assets, net, current portion of lease obligations, and long-term portion of lease liabilities on our condensed consolidated balance sheet as of October 4, 2020 and December 29, 2019 as follows (in thousands):
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Lease cost | The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in Occupancy on our condensed consolidated statement of operations as follows (in thousands):
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Schedule of operating lease maturities | Maturities of our lease liabilities as of October 4, 2020 were as follows (in thousands):
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Schedule of finance lease maturities | Maturities of our lease liabilities as of October 4, 2020 were as follows (in thousands):
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Supplemental cash flow related to leases | Supplemental cash flow information related to leases is as follows (in thousands, except other information):
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Goodwill and Intangible Assets (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 04, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The following table presents goodwill as of October 4, 2020 and December 29, 2019 (in thousands):
——————————————————— (1) See Note 2, COVID-19 Pandemic, for further discussion of goodwill impairment recognized during the forty weeks ended October 4, 2020.
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Schedule of intangible assets subject to amortization | The following table presents intangible assets as of October 4, 2020 and December 29, 2019 (in thousands):
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Schedule of intangible assets not subject to amortization | The following table presents intangible assets as of October 4, 2020 and December 29, 2019 (in thousands):
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Loss Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computations for basic and diluted earnings per share | Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):
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Other Charges (Gains) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Charges (Gains) | Other charges (gains) consist of the following (in thousands):
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 included in Other assets, net on the accompanying condensed consolidated balance sheets as of October 4, 2020 and December 29, 2019 (in thousands):
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Revenue - Schedule of Revenue Disaggregation by Product Type (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Oct. 04, 2020 |
Oct. 06, 2019 |
Oct. 04, 2020 |
Oct. 06, 2019 |
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Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 200,478 | $ 294,222 | $ 667,665 | $ 1,012,069 |
Restaurant revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 197,009 | 289,862 | 658,587 | 992,764 |
Franchise revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,584 | 3,727 | 5,861 | 13,479 |
Gift card breakage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 523 | 580 | 2,329 | 4,899 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 362 | $ 53 | $ 888 | $ 927 |
Revenue - Additional Information (Details) - USD ($) $ in Thousands |
Oct. 04, 2020 |
Dec. 29, 2019 |
---|---|---|
Disaggregation of Revenue [Line Items] | ||
Unearned revenue | $ 42,564 | $ 54,223 |
Gift card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Unearned revenue | 31,514 | 43,544 |
Deferred loyalty revenue | ||
Disaggregation of Revenue [Line Items] | ||
Unearned revenue | $ 11,050 | $ 10,679 |
Revenue - Schedule of Revenue Recognized Included in Liability Balances at Beginning of Fiscal Year (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Oct. 04, 2020 |
Oct. 06, 2019 |
|
Gift card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Gift card revenue | $ 16,191 | $ 19,400 |
Leases Additional Balance Sheet information (Details) - USD ($) $ in Thousands |
Oct. 04, 2020 |
Dec. 29, 2019 |
---|---|---|
Finance | ||
Right of use assets, net | $ 11,463 | $ 7,552 |
Finance Lease Liabilities | ||
Current portion of lease obligations | 1,122 | 725 |
Long-term portion of lease obligations | 12,666 | 8,822 |
Total | 13,788 | 9,547 |
Operating | ||
Right of use assets, net | 404,485 | 418,696 |
Operating Lease Liabilities | ||
Current portion of lease obligations | 60,910 | 41,974 |
Long-term portion of lease obligations | 438,085 | 456,613 |
Total | 498,995 | 498,587 |
Total | ||
Right of use assets, net | 415,948 | 426,248 |
Total | ||
Current portion of lease obligations | 62,032 | 42,699 |
Long-term portion of lease obligations | 450,751 | 465,435 |
Total | $ 512,783 | $ 508,134 |
Leases Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 04, 2020 |
Oct. 06, 2019 |
Oct. 04, 2020 |
Oct. 06, 2019 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 14,992 | $ 17,298 | $ 51,931 | $ 58,412 |
Finance lease cost: | ||||
Amortization of right of use assets | 227 | 193 | 615 | 634 |
Interest on lease liabilities | 150 | 122 | 412 | 416 |
Total finance lease cost | 377 | 315 | 1,027 | 1,050 |
Variable lease cost | 5,902 | 6,653 | 19,207 | 22,185 |
Total | $ 21,271 | $ 24,266 | $ 72,165 | $ 81,647 |
Leases Schedules of Lease Maturities (Details) - USD ($) $ in Thousands |
Oct. 04, 2020 |
Dec. 29, 2019 |
---|---|---|
Finance Leases | ||
Remainder of 2020 | $ 548 | |
2021 | 1,450 | |
2022 | 1,570 | |
2023 | 1,449 | |
2024 | 1,469 | |
Thereafter | 11,686 | |
Total future lease liability | 18,172 | |
Less imputed interest | 4,384 | |
Total | 13,788 | $ 9,547 |
Operating Leases | ||
Remainder of 2020 | 29,370 | |
2021 | 76,091 | |
2022 | 73,899 | |
2023 | 71,855 | |
2024 | 69,883 | |
Thereafter | 396,286 | |
Total future lease liability | 717,384 | |
Less imputed interest | 218,389 | |
Fair value of lease liability | 498,995 | $ 498,587 |
Total | ||
Remainder of 2020 | 29,918 | |
2021 | 77,541 | |
2022 | 75,469 | |
2023 | 73,304 | |
2024 | 71,352 | |
Thereafter | 407,972 | |
Total future lease liability | 735,556 | |
Less imputed interest | 222,773 | |
Fair value of lease liability | $ 512,783 |
Leases Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Oct. 04, 2020 |
Oct. 06, 2019 |
|
Cash flows from operating activities | ||
Operating leases | $ 33,034 | $ 58,930 |
Finance leases | 412 | 383 |
Cash flows from financing activities | ||
Finance leases | 196 | 686 |
Cash paid for amounts included in the measurement of lease liabilities: | 33,642 | 59,999 |
Right of use assets obtained in exchange for operating lease obligations | 31,731 | 10,396 |
Right of use assets obtained in exchange for finance lease obligations | $ 4,581 | $ 1,669 |
Other information related to operating leases as follows: | ||
Weighted average remaining lease term | 10 years 3 months 29 days | 10 years 10 months 2 days |
Weighted average discount rate | 7.12% | 7.33% |
Other information related to finance leases as follows: | ||
Weighted average remaining lease term | 11 years 11 months 4 days | 11 years 7 months 17 days |
Weighted average discount rate | 4.93% | 4.71% |
Goodwill and Intangible Assets - Summary of Goodwill Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 04, 2020 |
Oct. 06, 2019 |
Oct. 04, 2020 |
Oct. 06, 2019 |
|
Goodwill [Roll Forward] | ||||
Beginning balance | $ 96,397 | |||
Foreign currency translation adjustment | (983) | |||
Goodwill impairment | $ 0 | $ 0 | (95,414) | $ 0 |
Ending balance | $ 0 | $ 0 |
Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
Oct. 04, 2020 |
Dec. 29, 2019 |
---|---|---|
Intangible Assets | ||
Gross Carrying Amount | $ 73,546 | $ 77,074 |
Accumulated Amortization | (55,566) | (54,559) |
Net Carrying Amount | 17,980 | 22,515 |
Intangible assets, gross carrying amount | 81,006 | 84,534 |
Intangible assets, net carrying amount | 25,440 | 29,975 |
Liquor licenses and other | ||
Intangible Assets | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 7,460 | 7,460 |
Franchise rights | ||
Intangible Assets | ||
Gross Carrying Amount | 50,584 | 53,336 |
Accumulated Amortization | (36,813) | (35,896) |
Net Carrying Amount | 13,771 | 17,440 |
Leasehold interests | ||
Intangible Assets | ||
Gross Carrying Amount | 13,001 | 13,001 |
Accumulated Amortization | (9,155) | (8,794) |
Net Carrying Amount | 3,846 | 4,207 |
Liquor licenses and other | ||
Intangible Assets | ||
Gross Carrying Amount | 9,961 | 10,737 |
Accumulated Amortization | (9,598) | (9,869) |
Net Carrying Amount | $ 363 | $ 868 |
Earnings Per Share - Summary of Earnings Per Share (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 04, 2020 |
Oct. 06, 2019 |
Oct. 04, 2020 |
Oct. 06, 2019 |
|
Earnings Per Share Reconciliation [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 15,540 | 12,959 | 13,945 | 12,967 |
Dilutive effect of stock options and awards (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 15,540 | 12,959 | 13,945 | 12,967 |
Awards excluded due to anti-dilutive effect on diluted earnings per share (in shares) | 895 | 358 | 480 | 405 |
Other Charges - Summary of Other Charges (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 04, 2020 |
Oct. 06, 2019 |
Oct. 04, 2020 |
Oct. 06, 2019 |
|
Property, Plant and Equipment [Line Items] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 95,414 | $ 0 |
Restaurant asset impairment | 0 | 0 | 20,779 | 14,064 |
Restaurant Closure Costs (Gains) | (3,982) | 3,922 | (12,990) | 2,617 |
Litigation contingencies | 0 | 0 | 4,500 | 0 |
Board and stockholder matter costs | 4 | 1,311 | 2,453 | 2,463 |
Severance and executive transition | 0 | 594 | 881 | 2,958 |
COVID-19 related costs | 430 | 0 | 1,279 | 0 |
Executive retention | 0 | 260 | 0 | 620 |
Other charges (gains) | $ 4,416 | $ (1,757) | $ 138,296 | $ 17,488 |
Other Charges - Additional Information (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 04, 2020
USD ($)
|
Jul. 12, 2020
restaurant
|
Oct. 04, 2020
USD ($)
restaurant
segment
|
Oct. 06, 2019
restaurant
|
|
Other Income and Expenses [Abstract] | ||||
Number of restaurants impaired | restaurant | 36 | 29 | ||
Asset Impairment Charges, Closed Restaurants | $ | $ 3,300 | $ 5,700 | ||
Property, Plant and Equipment [Line Items] | ||||
Number of restaurants impaired | restaurant | 36 | 29 | ||
Currently Operating Restaurants [Member] | ||||
Other Income and Expenses [Abstract] | ||||
Number of restaurants impaired | segment | 30 | |||
Property, Plant and Equipment [Line Items] | ||||
Number of restaurants impaired | segment | 30 | |||
Closed Restaurants [Member] | ||||
Other Income and Expenses [Abstract] | ||||
Number of restaurants impaired | 2 | 6 | ||
Property, Plant and Equipment [Line Items] | ||||
Number of restaurants impaired | 2 | 6 |
Borrowings - Additional Information (Details) - USD ($) |
Oct. 04, 2020 |
Dec. 29, 2019 |
---|---|---|
Debt Disclosure [Abstract] | ||
Total Debt Outstanding | $ 216,100,000 | $ 206,900,000 |
Current portion of long-term debt | 9,692,000 | 0 |
Credit Facility, Outstanding, Carrying Value | 215,200,000 | 206,000,000 |
Letters of Credit Outstanding, Amount | 7,900,000 | 7,500,000 |
Deferred Loan Fees, Net of Amortization | $ 3,500,000 | $ 1,000,000 |
Fair Value Measurements - Summary of Assets at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands |
Oct. 04, 2020 |
Dec. 29, 2019 |
---|---|---|
Assets: | ||
Investments in rabbi trust | $ 6,232 | $ 7,337 |
Total assets measured at fair value | 6,232 | 7,337 |
Level 1 | ||
Assets: | ||
Investments in rabbi trust | 6,232 | 7,337 |
Total assets measured at fair value | 6,232 | 7,337 |
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 - Narrative (Details) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Oct. 04, 2020
USD ($)
restaurant
|
Oct. 06, 2019
USD ($)
restaurant
|
Dec. 29, 2019
USD ($)
|
|
Fair Value Disclosures [Abstract] | |||
Number of restaurants impaired | restaurant | 36 | 29 | |
Restaurants carrying value | $ 61.4 | $ 17.3 | |
Fair Value, Impaired Restaurant Assets | 34.9 | $ 2.2 | |
Long-term Debt, Fair Value | 218.6 | ||
Credit Facility, Outstanding, Carrying Value | $ 215.2 | $ 206.0 |
Commitment and Contingencies (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 04, 2020 |
Oct. 06, 2019 |
Oct. 04, 2020 |
Oct. 06, 2019 |
|
Loss Contingencies [Line Items] | ||||
Litigation contingencies | $ 0 | $ 0 | $ 4,500 | $ 0 |
Settled Litigation | ||||
Loss Contingencies [Line Items] | ||||
Litigation contingencies | 4,500 | |||
Litigation Settlement, Amount Awarded to Other Party | $ 8,500 |
Label | Element | Value |
---|---|---|
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (15,172,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (15,172,000) |
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