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 | ||||||||
(in thousands, except for per share amounts) | October 3, 2021 | December 27, 2020 | ||||||||||||
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 | ||||||||||||||
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 | $ | $ | ||||||||||||
Commitments and contingencies (see note 8) | ||||||||||||||
Stockholders' equity: | ||||||||||||||
Common stock; $ | $ | $ | ||||||||||||
Preferred stock, $ | ||||||||||||||
Treasury stock | ( | ( | ||||||||||||
Paid-in capital | ||||||||||||||
Accumulated other comprehensive income (loss), net of tax | ( | |||||||||||||
Retained earnings | ||||||||||||||
Total stockholders' equity | ||||||||||||||
Total liabilities and stockholders' equity | $ | $ |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
(in thousands, except for per share amounts) | October 3, 2021 | October 4, 2020 | October 3, 2021 | October 4, 2020 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
General and administrative expenses | ||||||||||||||||||||||||||
Selling 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 (loss) income: | ||||||||||||||||||||||||||
Foreign currency translation adjustment | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ||||||||||||||||||||||||
Total comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
Common Stock | Treasury Stock | Accumulated Other Comprehensive (Loss) Income, net of tax | ||||||||||||||||||||||||||||||||||||||||||||||||
Paid-in Capital | Retained Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 27, 2020 | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
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, April 18, 2021 | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
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 (loss) | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, July 11, 2021 | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
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 loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance, October 3, 2021 | $ | $ | ( | $ | $ | $ | $ |
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, $ | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | $ | ( | $ | $ | ( | $ |
Forty Weeks Ended | ||||||||||||||
(in thousands) | October 3, 2021 | October 4, 2020 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net loss | $ | ( | $ | ( | ||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Gift card breakage | ( | ( | ||||||||||||
Goodwill and asset impairment | ||||||||||||||
Non-cash other charges | ( | |||||||||||||
Deferred income tax provision | ||||||||||||||
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 provided by (used in) operating activities | ( | |||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of property and equipment | ( | ( | ||||||||||||
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 (used in) provided by 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 tax refunds received, net | $ | ( | $ | ( | ||||||||||
Interest paid, net of amounts capitalized | $ | $ | ||||||||||||
Periods | Period End Date | Number of Weeks in Period | ||||||||||||
Current and Prior Fiscal Quarters: | ||||||||||||||
First Quarter 2021 | April 18, 2021 | 16 | ||||||||||||
First Quarter 2020 | April 19, 2020 | 16 | ||||||||||||
Second Quarter 2021 | July 11, 2021 | 12 | ||||||||||||
Second Quarter 2020 | July 12, 2020 | 12 | ||||||||||||
Third Quarter 2021 | October 3, 2021 | 12 | ||||||||||||
Third Quarter 2020 | October 4, 2020 | 12 | ||||||||||||
Current and Prior Fiscal Years: | ||||||||||||||
Fiscal Year 2021 | December 26, 2021 | 52 | ||||||||||||
Fiscal Year 2020 | December 27, 2020 | 52 |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
October 3, 2021 | October 4, 2020 | October 3, 2021 | October 4, 2020 | |||||||||||||||||||||||
Restaurant revenue | $ | $ | $ | $ | ||||||||||||||||||||||
Franchise revenue | ||||||||||||||||||||||||||
Gift card breakage | ||||||||||||||||||||||||||
Other revenue | ||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
October 3, 2021 | December 27, 2020 | ||||||||||
Unearned gift card revenue | $ | $ | |||||||||
Deferred loyalty revenue | $ | $ |
Forty Weeks Ended | |||||||||||
October 3, 2021 | October 4, 2020 | ||||||||||
Gift card revenue | $ | $ |
October 3, 2021 | Finance | Operating | Total | |||||||||||||||||
Right of use assets, net | $ | $ | $ | |||||||||||||||||
Current portion of lease obligations | ||||||||||||||||||||
Long-term portion of lease obligations | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
December 27, 2020 | 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 3, 2021 | October 4, 2020 | October 3, 2021 | October 4, 2020 | |||||||||||||||||||||||
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 2021 | $ | $ | $ | ||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total future lease liability | $ | $ | $ | ||||||||||||||
Less imputed interest | |||||||||||||||||
Carrying value of lease liability | $ | $ | $ |
Forty Weeks Ended | ||||||||||||||
October 3, 2021 | October 4, 2020 | |||||||||||||
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 | % | % |
Twelve Weeks Ended | Forty Weeks Ended | ||||||||||||||||||||||
October 3, 2021 | October 4, 2020 | October 3, 2021 | October 4, 2020 | ||||||||||||||||||||
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 3, 2021 | October 4, 2020 | October 3, 2021 | October 4, 2020 | |||||||||||||||||||||||
Restaurant closure costs | $ | $ | $ | $ | ||||||||||||||||||||||
Asset impairment | ||||||||||||||||||||||||||
Litigation contingencies | ||||||||||||||||||||||||||
COVID-19 related costs | ||||||||||||||||||||||||||
Board and stockholder matter costs | ||||||||||||||||||||||||||
Goodwill impairment | ||||||||||||||||||||||||||
Severance and executive transition | ||||||||||||||||||||||||||
Other charges | $ | $ | $ | $ |
October 3, 2021 | December 27, 2020 | ||||||||||||||||||||||
Borrowings | Weighted Average Interest Rate | Borrowings | Weighted Average Interest Rate | ||||||||||||||||||||
Revolving credit facility, term loan, and other long-term debt | $ | % | $ | % | |||||||||||||||||||
Total debt | |||||||||||||||||||||||
Less current portion | |||||||||||||||||||||||
Long-term debt | $ | $ | |||||||||||||||||||||
Amounts issued under letters of credit | $ | $ |
October 3, 2021 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Investments in rabbi trust | $ | $ | $ | $ | ||||||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | ||||||||||||||||||||||
December 27, 2020 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Investments in rabbi trust | $ | $ | $ | $ | ||||||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ |
(millions) | ||||||||
Restaurant Revenue for the twelve weeks ended October 4, 2020 | $ | 197.0 | ||||||
Increase in comparable restaurant revenue | 67.0 | |||||||
Increase from non-comparable restaurants | 6.2 | |||||||
Total increase | 73.2 | |||||||
Restaurant Revenue for the twelve weeks ended October 3, 2021 | $ | 270.2 |
(millions) | ||||||||
Restaurant Revenue for the forty weeks ended October 4, 2020 | $ | 658.6 | ||||||
Increase in comparable restaurant revenue | 200.6 | |||||||
Decrease from non-comparable restaurants | 1.8 | |||||||
Total increase | 202.4 | |||||||
Restaurant Revenue for the forty weeks ended October 3, 2021 | $ | 861.0 |
Twelve weeks ended | 2021 compared to 2020 | Twelve Weeks Ended | 2021 compared to 2019(1) | |||||||||||||||||||||||||||||
October 3, 2021 | October 4, 2020 | Increase/(Decrease) | October 6, 2019(1) | Increase/(Decrease) | ||||||||||||||||||||||||||||
Restaurant revenue (millions) | $ | 270.2 | $ | 197.0 | 37.2 | % | $ | 289.9 | (6.8) | % | ||||||||||||||||||||||
Restaurant operating costs: | (Percentage of Restaurant Revenue) | (Basis Points) | (Percentage of Restaurant Revenue) | (Basis Points) | ||||||||||||||||||||||||||||
Cost of sales | 23.2 % | 23.4 % | (20) | 23.8 | % | (60) | ||||||||||||||||||||||||||
Labor | 36.9 % | 37.7 % | (80) | 36.2 | % | 70 | ||||||||||||||||||||||||||
Other operating | 19.0 % | 19.1 % | (10) | 15.3 | % | 370 | ||||||||||||||||||||||||||
Occupancy | 8.3 % | 11.2 % | (290) | 8.6 | % | (30) | ||||||||||||||||||||||||||
Total | 87.5 % | 91.4 % | (390) | 83.9 | % | 360 |
Forty weeks ended | 2021 compared to 2020 | Forty Weeks Ended | 2021 compared to 2019(1) | |||||||||||||||||||||||||||||
October 3, 2021 | October 4, 2020 | Increase/(Decrease) | October 6, 2019(1) | Increase/(Decrease) | ||||||||||||||||||||||||||||
Restaurant revenue (millions) | $ | 861.0 | $ | 658.6 | 30.7 | % | $ | 992.8 | (13.3) | % | ||||||||||||||||||||||
Restaurant operating costs: | (Percentage of Restaurant Revenue) | (Basis Points) | (Percentage of Restaurant Revenue) | (Basis Points) | ||||||||||||||||||||||||||||
Cost of sales | 22.5 % | 23.6 % | (110) | 23.7 | % | (120) | ||||||||||||||||||||||||||
Labor | 36.0 % | 38.8 % | (280) | 35.7 | % | 30 | ||||||||||||||||||||||||||
Other operating | 18.1 % | 18.9 % | (80) | 14.4 | % | 370 | ||||||||||||||||||||||||||
Occupancy | 8.6 % | 11.6 % | (300) | 8.6 | % | — | ||||||||||||||||||||||||||
Total | 85.3 | % | 92.9 % | (760) | 82.4 | % | 280 |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
October 3, 2021 | October 4, 2020 | October 3, 2021 | October 4, 2020 | |||||||||||||||||||||||
Net loss as reported | $ | (14,980) | $ | (6,179) | $ | (28,689) | $ | (236,738) | ||||||||||||||||||
Loss per share - diluted: | ||||||||||||||||||||||||||
Net loss as reported | $ | (0.95) | $ | (0.40) | $ | (1.83) | $ | (16.98) | ||||||||||||||||||
Restaurant closure costs | 0.07 | 0.26 | 0.34 | 0.93 | ||||||||||||||||||||||
Asset impairment | — | — | 0.09 | 1.49 | ||||||||||||||||||||||
Litigation contingencies | 0.01 | — | 0.08 | 0.32 | ||||||||||||||||||||||
COVID-19 related costs | 0.02 | 0.03 | 0.07 | 0.09 | ||||||||||||||||||||||
Board and stockholder matter costs | — | — | 0.01 | 0.18 | ||||||||||||||||||||||
Severance and executive transition | — | — | — | 0.06 | ||||||||||||||||||||||
Goodwill impairment | — | — | — | 6.84 | ||||||||||||||||||||||
Income tax effect | (0.03) | (0.08) | (0.16) | (2.57) | ||||||||||||||||||||||
Adjusted loss per share - diluted | $ | (0.88) | $ | (0.19) | $ | (1.40) | $ | (9.64) | ||||||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||
Basic | 15,709 | 15,540 | 15,647 | 13,945 | ||||||||||||||||||||||
Diluted | 15,709 | 15,540 | 15,647 | 13,945 |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||
October 3, 2021 | October 4, 2020 | October 3, 2021 | October 4, 2020 | |||||||||||||||||||||||
Company-owned: | ||||||||||||||||||||||||||
Beginning of period | 430 | 450 | 443 | 454 | ||||||||||||||||||||||
Closed during the period | — | (6) | (13) | (10) | ||||||||||||||||||||||
End of period | 430 | 444 | 430 | 444 | ||||||||||||||||||||||
Franchised: | ||||||||||||||||||||||||||
Beginning of period | 101 | 102 | 103 | 102 | ||||||||||||||||||||||
Opened during the period | — | 1 | — | 1 | ||||||||||||||||||||||
Closed during the period | — | — | (2) | — | ||||||||||||||||||||||
End of period | 101 | 103 | 101 | 103 | ||||||||||||||||||||||
Total number of restaurants | 531 | 547 | 531 | 547 |
Company-Owned Restaurants | Franchised Restaurants | |||||||||||||
State: | ||||||||||||||
Arkansas | 2 | 2 | ||||||||||||
Alaska | — | 3 | ||||||||||||
Alabama | 4 | — | ||||||||||||
Arizona | 18 | 1 | ||||||||||||
California | 59 | — | ||||||||||||
Colorado | 22 | — | ||||||||||||
Connecticut | — | 3 | ||||||||||||
Delaware | — | 5 | ||||||||||||
Florida | 19 | — | ||||||||||||
Georgia | 6 | — | ||||||||||||
Iowa | 5 | — | ||||||||||||
Idaho | 8 | — | ||||||||||||
Illinois | 22 | — | ||||||||||||
Indiana | 13 | — | ||||||||||||
Kansas | — | 4 | ||||||||||||
Kentucky | 4 | — | ||||||||||||
Louisiana | 2 | — | ||||||||||||
Massachusetts | 4 | 2 | ||||||||||||
Maryland | 13 | — | ||||||||||||
Maine | 2 | — | ||||||||||||
Michigan | — | 20 | ||||||||||||
Minnesota | 4 | — | ||||||||||||
Missouri | 8 | 3 | ||||||||||||
Montana | — | 2 | ||||||||||||
North Carolina | 17 | — | ||||||||||||
Nebraska | 4 | — | ||||||||||||
New Hampshire | 3 | — | ||||||||||||
New Jersey | 12 | 1 | ||||||||||||
New Mexico | 3 | — | ||||||||||||
Nevada | 6 | — | ||||||||||||
New York | 14 | — | ||||||||||||
Ohio | 18 | 2 | ||||||||||||
Oklahoma | 5 | — | ||||||||||||
Oregon | 15 | 5 | ||||||||||||
Pennsylvania | 11 | 21 | ||||||||||||
Rhode Island | 1 | — | ||||||||||||
South Carolina | 4 | — | ||||||||||||
South Dakota | 1 | — | ||||||||||||
Tennessee | 11 | — | ||||||||||||
Texas | 20 | 9 | ||||||||||||
Utah | 1 | 6 | ||||||||||||
Virginia | 20 | — | ||||||||||||
Washington | 38 | — | ||||||||||||
Wisconsin | 11 | — | ||||||||||||
Province: | ||||||||||||||
British Columbia | — | 12 | ||||||||||||
Total | 430 | 101 |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
October 3, 2021 | October 4, 2020 | October 6, 2019(1) | October 3, 2021 | October 4, 2020 | October 6, 2019(1) | |||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Restaurant revenue | 98.1 % | 98.3 % | 98.5 | % | 98.0 % | 98.6 % | 98.1 | % | ||||||||||||||||||||||||||||||
Franchise and other revenues | 1.9 % | 1.7 % | 1.5 | % | 2.0 % | 1.4 % | 1.9 | % | ||||||||||||||||||||||||||||||
Total revenues | 100.0 % | 100.0 % | 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 | 23.2 % | 23.4 % | 23.8 | % | 22.5 % | 23.6 % | 23.7 | % | ||||||||||||||||||||||||||||||
Labor | 36.9 % | 37.7 % | 36.2 | % | 36.0 % | 38.8 % | 35.7 | % | ||||||||||||||||||||||||||||||
Other operating | 19.0 % | 19.1 % | 15.3 | % | 18.1 % | 18.9 % | 14.4 | % | ||||||||||||||||||||||||||||||
Occupancy | 8.3 % | 11.2 % | 8.6 | % | 8.6 % | 11.6 % | 8.6 | % | ||||||||||||||||||||||||||||||
Total restaurant operating costs | 87.5 % | 91.4 % | 83.9 | % | 85.3 | % | 92.9 % | 82.4 | % | |||||||||||||||||||||||||||||
Depreciation and amortization | 6.9 % | 9.6 % | 7.2 | % | 7.3 % | 10.2 % | 7.0 | % | ||||||||||||||||||||||||||||||
General and administrative expenses | 6.4 % | 7.6 % | 6.5 | % | 6.6 % | 8.4 % | 7.0 | % | ||||||||||||||||||||||||||||||
Selling expenses | 4.6 % | 3.0 % | 6.0 | % | 3.6 % | 4.0 % | 4.8 | % | ||||||||||||||||||||||||||||||
Pre-opening and acquisition costs | 0.2 % | — | % | — | % | 0.1 % | — | % | — | % | ||||||||||||||||||||||||||||
Other charges | 0.6 % | 2.2 % | (0.6) | % | 1.1 % | 20.7 % | 1.7 | % | ||||||||||||||||||||||||||||||
Loss from operations | (4.4) | % | (12.3) | % | (1.8) | % | (2.2) | % | (35.0) | % | (1.4) | % | ||||||||||||||||||||||||||
Interest expense, net and other | 1.0 % | 1.1 % | 0.6 | % | 1.1 % | 1.1 % | 0.7 | % | ||||||||||||||||||||||||||||||
Loss before income taxes | (5.4) | % | (13.4) | % | (2.4) | % | (3.3) | % | (36.1) | % | (2.2) | % | ||||||||||||||||||||||||||
Income tax benefit | 0.0 | % | (10.3) | % | (1.8) | % | — | % | (0.6) | % | (2.1) | % | ||||||||||||||||||||||||||
Net loss | (5.4) | % | (3.1) | % | (0.6) | % | (3.3) | % | (35.5) | % | — | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(Revenues in thousands) | October 3, 2021 | October 4, 2020 | Percent Change | October 3, 2021 | October 4, 2020 | Percent Change | ||||||||||||||||||||||||||||||||
Restaurant revenue | $ | 270,202 | $ | 197,009 | 37.2 | % | $ | 861,036 | $ | 658,587 | 30.7 | % | ||||||||||||||||||||||||||
Franchise royalties, fees and other revenue | 5,242 | 3,469 | 51.1 | % | 17,658 | 9,078 | 94.5 | % | ||||||||||||||||||||||||||||||
Total revenues | $ | 275,444 | $ | 200,478 | 37.4 | % | $ | 878,694 | $ | 667,665 | 31.6 | % | ||||||||||||||||||||||||||
Average weekly net sales volumes in Company-owned restaurants | $ | 52,599 | $ | 39,418 | 33.4 | % | $ | 50,324 | $ | 38,352 | 31.2 | % | ||||||||||||||||||||||||||
Total operating weeks | 5,137 | 4,998 | 2.8 | % | 17,110 | 17,172 | (0.4) | % | ||||||||||||||||||||||||||||||
Net sales per square foot | $ | 101 | $ | 75 | 33.6 | % | $ | 322 | $ | 247 | 30.4 | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 3, 2021 | October 4, 2020 | Percent Change | October 3, 2021 | October 4, 2020 | Percent Change | ||||||||||||||||||||||||||||||||
Cost of sales | $ | 62,671 | $ | 46,037 | 36.1 % | $ | 193,754 | $ | 155,243 | 24.8 % | ||||||||||||||||||||||||||||
As a percent of restaurant revenue | 23.2 % | 23.4 % | (0.2) | % | 22.5 % | 23.6 % | (1.1) | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 3, 2021 | October 4, 2020 | Percent Change | October 3, 2021 | October 4, 2020 | Percent Change | ||||||||||||||||||||||||||||||||
Labor | $ | 99,725 | $ | 74,344 | 34.1 % | $ | 310,333 | $ | 255,652 | 21.4 % | ||||||||||||||||||||||||||||
As a percent of restaurant revenue | 36.9 % | 37.7 % | (0.8) | % | 36.0 % | 38.8 % | (2.8) | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 3, 2021 | October 4, 2020 | Percent Change | October 3, 2021 | October 4, 2020 | Percent Change | ||||||||||||||||||||||||||||||||
Other operating | $ | 51,462 | $ | 37,631 | 36.8 % | $ | 156,102 | $ | 124,585 | 25.3 % | ||||||||||||||||||||||||||||
As a percent of restaurant revenue | 19.0 % | 19.1 % | (0.1) | % | 18.1 % | 18.9 % | (0.8) | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 3, 2021 | October 4, 2020 | Percent Change | October 3, 2021 | October 4, 2020 | Percent Change | ||||||||||||||||||||||||||||||||
Occupancy | $ | 22,519 | $ | 22,099 | 1.9 % | $ | 74,233 | $ | 76,514 | (3.0) | % | |||||||||||||||||||||||||||
As a percent of restaurant revenue | 8.3 % | 11.2 % | (2.9) | % | 8.6 % | 11.6 % | (3.0) | % | ||||||||||||||||||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 3, 2021 | October 4, 2020 | Percent Change | October 3, 2021 | October 4, 2020 | Percent Change | ||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 18,881 | $ | 19,173 | (1.5) | % | $ | 63,984 | $ | 68,053 | (6.0) | % | ||||||||||||||||||||||||||
As a percent of total revenues | 6.9 % | 9.6 % | (2.7) | % | 7.3 % | 10.2 % | (2.9) | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 3, 2021 | October 4, 2020 | Percent Change | October 3, 2021 | October 4, 2020 | Percent Change | ||||||||||||||||||||||||||||||||
General, and administrative expenses | $ | 17,691 | $ | 15,190 | 16.5 % | $ | 57,664 | $ | 56,054 | 2.9 % | ||||||||||||||||||||||||||||
As a percent of total revenues | 6.4 % | 7.6 % | (1.2) | % | 6.6 % | 8.4 % | (1.8) | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 3, 2021 | October 4, 2020 | Percent Change | October 3, 2021 | October 4, 2020 | Percent Change | ||||||||||||||||||||||||||||||||
Selling expenses | $ | 12,652 | $ | 6,094 | * | $ | 31,635 | $ | 26,429 | 19.7 % | ||||||||||||||||||||||||||||
As a percent of total revenues | 4.6 % | 3.0 % | 1.6 % | 3.6 % | 4.0 % | (0.4) | % |
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | October 3, 2021 | October 4, 2020 | Percent Change | October 3, 2021 | October 4, 2020 | Percent Change | ||||||||||||||||||||||||||||||||
Pre-opening costs | $ | 418 | $ | 89 | * | $ | 792 | $ | 245 | * | ||||||||||||||||||||||||||||
As a percent of total revenues | 0.2 % | — | % | 0.2 % | 0.1 % | — | % | 0.1 % | ||||||||||||||||||||||||||||||
Forty Weeks Ended | ||||||||||||||
October 3, 2021 | October 4, 2020 | |||||||||||||
Net cash provided by (used in) operating activities | $ | 37,617 | $ | (22,401) | ||||||||||
Net cash used in investing activities | (19,967) | (14,131) | ||||||||||||
Net cash (used in) provided by financing activities | (16,037) | 34,020 | ||||||||||||
Effect of exchange rate changes on cash | 28 | (166) | ||||||||||||
Net change in cash and cash equivalents | $ | 1,641 | $ | (2,678) |
Forty Weeks Ended | |||||||||||
October 3, 2021 | October 4, 2020 | ||||||||||
Donatos® expansion | $ | 7,687 | $ | — | |||||||
Restaurant improvement capital and other | 6,467 | 8,433 | |||||||||
Investment in technology infrastructure and other | 5,355 | 6,437 | |||||||||
New restaurants and restaurant refreshes | 478 | — | |||||||||
Total capital expenditures | $ | 19,987 | $ | 14,870 |
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 3, 2021 formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at October 3, 2021 and December 27, 2020; (ii) Condensed Consolidated Statements of Operations and Comprehensive Loss for the twelve and forty weeks ended October 3, 2021 and October 4, 2020; (iii) Condensed Consolidated Statements of Stockholders' Equity at October 3, 2021 and October 4, 2020; (iv) Condensed Consolidated Statements of Cash Flows for the forty weeks ended October 3, 2021 and October 4, 2020; and (v) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text. |
RED ROBIN GOURMET BURGERS, INC. (Registrant) | ||||||||||||||
November 10, 2021 | By: | /s/ Lynn S. Schweinfurth | ||||||||||||
(Date) | Lynn S. Schweinfurth (Chief Financial Officer) |
November 10, 2021 | /s/ Paul Murphy | |||||||
(Date) | Paul Murphy Chief Executive Officer |
November 10, 2021 | /s/ Lynn S. Schweinfurth | |||||||
(Date) | Lynn S. Schweinfurth Chief Financial Officer |
Dated: | November 10, 2021 | /s/ Paul Murphy | |||||||||
Paul Murphy Chief Executive Officer | |||||||||||
Dated: | November 10, 2021 | /s/ Lynn S. Schweinfurth | |||||||||
Lynn S. Schweinfurth Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Oct. 04, 2020 |
Oct. 03, 2021 |
Oct. 04, 2020 |
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Revenues: | ||||
Total revenues | $ 275,444 | $ 200,478 | $ 878,694 | $ 667,665 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||
Cost of sales | 62,671 | 46,037 | 193,754 | 155,243 |
Labor | 99,725 | 74,344 | 310,333 | 255,652 |
Other operating | 51,462 | 37,631 | 156,102 | 124,585 |
Occupancy | 22,519 | 22,099 | 74,233 | 76,514 |
Depreciation and amortization | 18,881 | 19,173 | 63,984 | 68,053 |
General and administrative expenses | 17,691 | 15,190 | 57,664 | 56,054 |
Selling expenses | 12,652 | 6,094 | 31,635 | 26,429 |
Pre-opening costs | 418 | 89 | 792 | 245 |
Other charges | 1,561 | 4,416 | 9,228 | 138,296 |
Total costs and expenses | 287,580 | 225,073 | 897,725 | 901,071 |
Loss from operations | (12,136) | (24,595) | (19,031) | (233,406) |
Other expense: | ||||
Interest expense, net and other | 2,870 | 2,280 | 9,986 | 7,629 |
Loss before income taxes | (15,006) | (26,875) | (29,017) | (241,035) |
Income tax benefit | (26) | (20,696) | (328) | (4,297) |
Net loss | $ (14,980) | $ (6,179) | $ (28,689) | $ (236,738) |
Loss per share: | ||||
Basic (in dollars per share) | $ (0.95) | $ (0.40) | $ (1.83) | $ (16.98) |
Diluted (in dollars per share) | $ (0.95) | $ (0.40) | $ (1.83) | $ (16.98) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 15,709 | 15,540 | 15,647 | 13,945 |
Diluted (in shares) | 15,709 | 15,540 | 15,647 | 13,945 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | $ (6) | $ 9 | $ 14 | $ (1,121) |
Other comprehensive (loss) income, net of tax | (6) | 9 | 14 | (1,121) |
Total comprehensive loss | (14,986) | (6,170) | (28,675) | (237,859) |
Restaurant revenue | ||||
Revenues: | ||||
Total revenues | 270,202 | 197,009 | 861,036 | 658,587 |
Franchise and other revenues | ||||
Revenues: | ||||
Total revenues | $ 5,242 | $ 3,469 | $ 17,658 | $ 9,078 |
Basis of Presentation and Recent Accounting Pronouncements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 3, 2021, the Company owned and operated 430 restaurants located in 38 states. The Company also had 101 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 27, 2020 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, 2020 filed with the SEC on March 3, 2021. 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 have been reclassified within the October 4, 2020 Condensed Consolidated Statement of Cash Flows to conform with the current period presentation, including prior year reclassifications within Changes in operating assets and liabilities. The reclassifications had no effect on the Company’s cash flows from operations. Certain amounts presented have been reclassified within the October 4, 2020 Condensed Consolidated Statements Of Operations And Comprehensive Loss to present General and administrative expenses and Selling expenses separately for improved comparability and alignment with industry presentation. The reclassifications had no effect on the Company’s Total costs and expenses, Loss from operations, or Net loss. Recent Accounting Pronouncements Reference Rate Reform In March 2020, FASB issued Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This update provides temporary optional expedients to applying the reference rate reform guidance to contracts that reference LIBOR or another reference rate expected to be discontinued. Under this update, contract modifications resulting in a new reference rate may be accounted for as a continuation of the existing contract. This guidance is effective upon issuance of the update and applies to contract modifications made through December 31, 2022. 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 |
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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):
——————————————————— 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 and breakage 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 |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LeasesLeases 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 3, 2021 and December 27, 2020 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 and Comprehensive Loss as follows (in thousands):
Maturities of our lease liabilities as of October 3, 2021 were as follows (in thousands): Supplemental cash flow and other information related to leases is as follows (in thousands, except other information):
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Leases | LeasesLeases 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 3, 2021 and December 27, 2020 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 and Comprehensive Loss as follows (in thousands):
Maturities of our lease liabilities as of October 3, 2021 were as follows (in thousands): Supplemental cash flow and other information related to leases is as follows (in thousands, except other information):
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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. As the Company was in a net loss position for both the twelve week and forty week periods ended October 3, 2021 and October 4, 2020, all potentially dilutive common shares are considered anti-dilutive. The Company uses the treasury stock method to calculate the effect of outstanding stock options and awards. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):
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Other Charges |
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Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Charges | Other Charges Other charges consist of the following (in thousands):
Restaurant closure costs represent costs incurred for permanently closed restaurants, including lease termination costs, as well as the ongoing restaurant operating costs of Company-owned restaurants that remained temporarily closed due to the COVID-19 pandemic. During the forty weeks ended October 3, 2021, Asset impairment primarily related to the impairment of long-lived assets at one Company-owned restaurant with a carrying value of $3.8 million (including right of use assets), recognizing an impairment expense of $1.2 million related to the net book value of long-lived restaurant assets for this restaurant. During the twelve and forty weeks ended October 4, 2020 the Company recognized non-cash impairment charges related to restaurant assets at two and thirty-six Company-owned restaurants, respectively, resulting from quantitative impairment analyses. Litigation contingencies include legal settlement costs accrued within the period presented related to class action employment cases and other employment matters. 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. Board and stockholder matters costs were primarily related to the recruitment and appointment of new board members, and other board and stockholder matters. 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. Severance and executive transition in 2020 primarily relates to severance costs associated with the reduction in force of restaurant support center Team Members in April 2020.
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Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings Borrowings as of October 3, 2021 and December 27, 2020 are summarized below (in thousands):
Loan origination costs associated with the Company's Amended and Restated Credit Agreement (the "Credit Facility") are included as deferred costs in Other assets, net in the accompanying Condensed Consolidated Balance Sheets. Unamortized debt issuance costs were $2.0 million and $3.3 million as of October 3, 2021 and December 27, 2020. Third Amendment to Credit Agreement In response to the continued uncertainty around the impact of industry labor and supply chain challenges as well as the COVID-19 Delta variant, the Company amended its current credit facility on November 9, 2021 (the "Third Amendment") to obtain additional flexibility to continue to implement our business strategy. The Company anticipates refinancing its Credit Facility in 2022. The Third Amendment further amends the Company’s Amended and Restated Credit Agreement (as amended, the "Credit Facility") to, among other things: •waive the application of the lease adjusted leverage ratio financial covenant (the "Leverage Ratio Covenant") for the third fiscal quarter of 2021 •increase the maximum leverage permitted for purposes of the Leverage Ratio Covenant for the fourth fiscal quarter of 2021 and the first, second and third fiscal quarters of 2022, with the definition of the Leverage Ratio Covenant also being amended to provide that it shall not be calculated on a basis that gives effect to a seasonally adjusted annualized consolidated EBITDA in future periods; •decrease the minimum fixed charge coverage ratio required for purposes of the fixed charge coverage ratio financial covenant (the “FCCR Covenant”) for the first fiscal quarter of 2022, with the definition of the FCCR Covenant also being amended to account for cash tax refunds received in any future period and certain capital expenditures constituting "Expansion Capital Expenditures" being excluded from the calculation thereof; •decrease the minimum liquidity required for purposes of the minimum liquidity covenant and provide for the testing of such minimum liquidity covenant at all times; •make certain amendments to the Credit Facility to (i) provide that certain additional capital expenditures shall constitute "Expansion Capital Expenditures" and (ii) provide that "Expansion Capital Expenditures" shall be permitted for all periods on or prior to the last day of the fiscal quarter of the Company ending on or about October 2, 2022, so long as (1) there is no default or event of default, (2) on a pro forma basis, Liquidity shall exceed a certain amount and (3) such "Expansion Capital Expenditures" do not exceed certain agreed amounts in each fiscal quarter (with carryforward of unused amounts to the immediately succeeding fiscal quarter), and, for all periods thereafter, so long as (1) there is no default or event of default, (2) on a pro forma basis, Liquidity shall exceed a certain amount and (3) on a pro forma basis, lease adjusted leverage ratio shall not exceed 5.00x; •increase the pricing under the Credit Facility for (a) the period from the Third Amendment Effective Date through the first interest determination date occurring after the last day of the fiscal quarter of the Company ending on or about April 17, 2022 to LIBOR (subject to a 1.00% floor) plus 6.00% and (b) periods thereafter to LIBOR (to which a 1.00% LIBOR floor shall apply) plus 6.50%; •provide that the previously agreed utilization fee of 0.75% per annum of the daily outstanding principal amount of term loans, revolving loans, swingline loans and letter of credit obligations under the Credit Facility shall be owing solely in respect of the period commencing on February 25, 2021 and ending on the Third Amendment Effective Date, with all such amounts payable on the Third Amendment Effective Date; •reduce the aggregate revolving commitment to $75,000,000 on the last day of the fiscal quarter of the Company ending on or about April 17, 2022; •amend the anti-cash hoarding provision to require revolver repayments (but with no associated permanent reduction in the revolving commitment) to the extent that the Company’s consolidated cash on hand exceeds $30,000,000 at any time; •revise the requirement that the annual audited financial statements be delivered without a "going concern qualification" to permit such a qualification solely relating to (i) any impending debt maturity (whether under the Credit Facility or otherwise) or (ii) any actual or prospective inability to satisfy a financial maintenance covenant; and •make certain amendments to the Credit Facility to address LIBOR transition matters. The description above is a summary of the Third Amendment and is qualified in its entirety by the complete text of the agreement, which is incorporated herein by reference. In conjunction with the Third Amendment, the Company paid certain customary amendment fees to the lenders under the Credit Facility totaling approximately $0.8 million, which will be capitalized as deferred loan fees and amortized over the remaining term of the Credit Facility.
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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 3, 2021 and December 27, 2020 (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. See footnote 5 Other Charges of this Quarterly Report on Form 10-Q for additional detail. 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. As of October 3, 2021, the carrying value of the liability under the Company's Credit Facility approximated fair value. As of December 27, 2020, the carrying value and fair value of the Credit Facility were $169.8 million and $172.6 million. 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. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 from Guests or Team Members alleging illness, injury, food quality, health, or operational concerns. While it is not possible to predict the outcome of these suits, legal proceedings, and 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 and that the ultimate resolution of these matters will not have a material adverse effect on our financial position and results of operations. |
Basis of Presentation and Recent Accounting Pronouncements (Policies) |
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Oct. 03, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 27, 2020 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, 2020 filed with the SEC on March 3, 2021. 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 have been reclassified within the October 4, 2020 Condensed Consolidated Statement of Cash Flows to conform with the current period presentation, including prior year reclassifications within Changes in operating assets and liabilities. The reclassifications had no effect on the Company’s cash flows from operations. Certain amounts presented have been reclassified within the October 4, 2020 Condensed Consolidated Statements Of Operations And Comprehensive Loss to present General and administrative expenses and Selling expenses separately for improved comparability and alignment with industry presentation. The reclassifications had no effect on the Company’s Total costs and expenses, Loss from operations, or Net loss.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform In March 2020, FASB issued Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This update provides temporary optional expedients to applying the reference rate reform guidance to contracts that reference LIBOR or another reference rate expected to be discontinued. Under this update, contract modifications resulting in a new reference rate may be accounted for as a continuation of the existing contract. This guidance is effective upon issuance of the update and applies to contract modifications made through December 31, 2022. 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) |
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Oct. 03, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
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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 and breakage 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) |
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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 3, 2021 and December 27, 2020 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 and Comprehensive Loss as follows (in thousands):
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Schedule of operating lease maturities | Maturities of our lease liabilities as of October 3, 2021 were as follows (in thousands):
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Schedule of finance lease maturities | Maturities of our lease liabilities as of October 3, 2021 were as follows (in thousands):
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Supplemental cash flow related to leases | Supplemental cash flow and other information related to leases is as follows (in thousands, except other information):
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Loss Per Share (Tables) |
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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 (Tables) |
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Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Charges | Other charges consist of the following (in thousands):
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Borrowings (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Borrowings as of October 3, 2021 and December 27, 2020 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 included in Other assets, net on the accompanying Condensed Consolidated Balance Sheets as of October 3, 2021 and December 27, 2020 (in thousands):
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Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Details) |
9 Months Ended |
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Oct. 03, 2021
state
province
segment
restaurant
| |
Number of operating segments | segment | 1 |
Number of reportable segments | segment | 1 |
Entity Operated Units [Member] | |
Number of restaurants | restaurant | 430 |
Number of states in which restaurants are located | state | 38 |
Franchised Units [Member] | |
Number of restaurants | restaurant | 101 |
Number of states in which restaurants are located | state | 16 |
Number of Canadian provinces in which restaurants are located | province | 1 |
Revenue - Schedule of Revenue Disaggregation by Product Type (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Oct. 03, 2021 |
Oct. 04, 2020 |
Oct. 03, 2021 |
Oct. 04, 2020 |
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Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 275,444 | $ 200,478 | $ 878,694 | $ 667,665 |
Restaurant revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 270,202 | 197,009 | 861,036 | 658,587 |
Franchise revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,303 | 2,584 | 13,123 | 5,861 |
Gift card breakage | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 438 | 523 | 3,231 | 2,329 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 501 | $ 362 | $ 1,304 | $ 888 |
Revenue - Additional Information (Details) - USD ($) $ in Thousands |
Oct. 03, 2021 |
Dec. 27, 2020 |
---|---|---|
Disaggregation of Revenue [Line Items] | ||
Unearned revenue | $ 42,621 | $ 50,138 |
Gift card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Unearned revenue | 29,599 | 38,309 |
Deferred loyalty revenue | ||
Disaggregation of Revenue [Line Items] | ||
Unearned revenue | $ 13,022 | $ 11,829 |
Revenue - Schedule of Revenue Recognized Included in Liability Balances at Beginning of Fiscal Year (Details) - USD ($) $ in Thousands |
9 Months Ended | |
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Oct. 03, 2021 |
Oct. 04, 2020 |
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Gift card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Gift card revenue | $ 14,448 | $ 16,191 |
Leases Additional Balance Sheet information (Details) - USD ($) $ in Thousands |
Oct. 03, 2021 |
Dec. 27, 2020 |
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Finance | ||
Right of use assets, net | $ 9,774 | $ 9,644 |
Finance Lease Liabilities | ||
Current portion of lease obligations | 1,140 | 1,078 |
Long-term portion of lease obligations | 10,813 | 10,937 |
Total | 11,953 | 12,015 |
Operating | ||
Right of use assets, net | 410,014 | 415,929 |
Operating Lease Liabilities | ||
Current portion of lease obligations | 48,754 | 54,197 |
Long-term portion of lease obligations | 439,860 | 454,296 |
Total | 488,614 | 508,493 |
Total | ||
Right of use assets, net | 419,788 | 425,573 |
Total | ||
Current portion of lease obligations | 49,894 | 55,275 |
Long-term portion of lease obligations | 450,673 | 465,233 |
Total | $ 500,567 | $ 520,508 |
Leases Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Oct. 04, 2020 |
Oct. 03, 2021 |
Oct. 04, 2020 |
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Leases [Abstract] | ||||
Operating lease cost | $ 16,061 | $ 14,992 | $ 53,765 | $ 51,931 |
Finance lease cost: | ||||
Amortization of right of use assets | 197 | 227 | 657 | 615 |
Interest on lease liabilities | 131 | 150 | 407 | 412 |
Total finance lease cost | 328 | 377 | 1,064 | 1,027 |
Variable lease cost | 4,496 | 5,902 | 15,271 | 19,207 |
Total | $ 20,885 | $ 21,271 | $ 70,100 | $ 72,165 |
Leases Schedules of Lease Maturities (Details) - USD ($) $ in Thousands |
Oct. 03, 2021 |
Dec. 27, 2020 |
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Finance Leases | ||
Remainder of 2021 | $ 550 | |
2022 | 1,327 | |
2023 | 1,244 | |
2024 | 1,264 | |
2025 | 1,283 | |
Thereafter | 9,441 | |
Total future lease liability | 15,109 | |
Less imputed interest | 3,156 | |
Carrying value of lease liability | 11,953 | $ 12,015 |
Operating Leases | ||
Remainder of 2021 | 14,740 | |
2022 | 79,038 | |
2023 | 76,303 | |
2024 | 74,575 | |
2025 | 69,959 | |
Thereafter | 377,685 | |
Total future lease liability | 692,300 | |
Less imputed interest | 203,686 | |
Carrying value of lease liability | 488,614 | $ 508,493 |
Total | ||
Remainder of 2021 | 15,290 | |
2022 | 80,365 | |
2023 | 77,547 | |
2024 | 75,839 | |
2025 | 71,242 | |
Thereafter | 387,126 | |
Total future lease liability | 707,409 | |
Less imputed interest | 206,842 | |
Carrying value of lease liability | $ 500,567 |
Leases Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Oct. 03, 2021 |
Oct. 04, 2020 |
|
Cash flows from operating activities | ||
Operating leases | $ 68,036 | $ 33,034 |
Finance leases | 406 | 412 |
Cash flows from financing activities | ||
Finance leases | 1,447 | 196 |
Cash paid for amounts included in the measurement of lease liabilities: | 69,889 | 33,642 |
Right of use assets obtained in exchange for operating lease obligations | 27,483 | 31,731 |
Right of use assets obtained in exchange for finance lease obligations | $ 988 | $ 4,581 |
Other information related to operating leases as follows: | ||
Weighted average remaining lease term | 9 years 10 months 24 days | 10 years 3 months 18 days |
Weighted average discount rate | 7.01% | 7.12% |
Other information related to finance leases as follows: | ||
Weighted average remaining lease term | 11 years | 11 years 10 months 24 days |
Weighted average discount rate | 4.56% | 4.93% |
Loss Per Share - Summary of Loss Per Share (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Oct. 04, 2020 |
Oct. 03, 2021 |
Oct. 04, 2020 |
|
Loss Per Share Reconciliation [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 15,709 | 15,540 | 15,647 | 13,945 |
Dilutive effect of stock options and awards (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 15,709 | 15,540 | 15,647 | 13,945 |
Awards excluded due to anti-dilutive effect on diluted earnings per share (in shares) | 545 | 895 | 390 | 480 |
Other Charges - Summary of Other Charges (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 03, 2021 |
Oct. 04, 2020 |
Oct. 03, 2021 |
Oct. 04, 2020 |
|
Property, Plant and Equipment [Line Items] | ||||
Restaurant closure costs | $ 1,102 | $ 3,982 | $ 5,301 | $ 12,990 |
Asset impairment | 0 | 0 | 1,357 | 20,779 |
Litigation contingencies | 160 | 0 | 1,330 | 4,500 |
COVID-19 related costs | 299 | 430 | 1,112 | 1,279 |
Board and stockholder matter costs | 0 | 4 | 128 | 2,453 |
Goodwill impairment | 0 | 0 | 0 | 95,414 |
Severance and executive transition | 0 | 0 | 0 | 881 |
Other charges | $ 1,561 | $ 4,416 | $ 9,228 | $ 138,296 |
Other Charges - Additional Information (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Oct. 04, 2020
restaurant
|
Oct. 03, 2021
USD ($)
restaurant
|
Oct. 04, 2020
restaurant
|
|
Other Income and Expenses [Abstract] | |||
Number of restaurants impaired | restaurant | 2 | 1 | 36 |
Restaurants carrying value | $ 3.8 | ||
Asset Impairment Charges, Closed Restaurants | $ 1.2 |
Borrowings - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Nov. 04, 2021 |
Jan. 10, 2023 |
Apr. 17, 2022 |
Oct. 03, 2021 |
Dec. 27, 2020 |
|
Debt Disclosure [Abstract] | |||||
Total Debt Outstanding | $ 157,163 | $ 170,644 | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 6.80% | 4.50% | |||
Current portion of long-term debt | $ 9,692 | $ 9,692 | |||
Long-term debt | 147,471 | 160,952 | |||
Credit Facility, Outstanding, Carrying Value | 169,800 | ||||
Letters of Credit Outstanding, Amount | 8,600 | 8,700 | |||
Deferred Loan Fees, Net of Amortization | $ 2,000 | $ 3,300 | |||
Subsequent Event | |||||
Debt Disclosure [Abstract] | |||||
Minimum Liquidity Covenant | $ 30,000 | ||||
Maximum borrowing capacity | $ 75,000 | ||||
LIBOR Interest Rate Floor | 1.00% | 1.00% | |||
Principal Repayment Rate | 6.00% | 6.50% | |||
Credit Facility Utilization Rate | 0.75% | ||||
Payments of Financing Costs | $ 800 | ||||
Lease Adjusted Leverage Ratio, Maximum Allowable for Expansion Capex | 5.00x |
Fair Value Measurements - Summary of Assets at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands |
Oct. 03, 2021 |
Dec. 27, 2020 |
---|---|---|
Assets: | ||
Investments in rabbi trust | $ 5,999 | $ 6,740 |
Total assets measured at fair value | 5,999 | 6,740 |
Level 1 | ||
Assets: | ||
Investments in rabbi trust | 5,999 | 6,740 |
Total assets measured at fair value | 5,999 | 6,740 |
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 |
Dec. 27, 2020
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
Credit Facility, Outstanding, Carrying Value | $ 169.8 |
Long-term Debt, Fair Value | $ 172.6 |
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