FISCAL 2011 BUSINESS AND LICENSE ACQUISITIONS (Tables)

9 Months Ended

Feb. 28, 2012

FISCAL 2011 BUSINESS AND LICENSE ACQUISITIONS [Abstract]

Allocation of purchase prices of acquisitions

The purchase prices of acquisitions during fiscal 2011 have been allocated based on fair value estimates as follows (in thousands):

	As Previously Reported			Adjustments			As Adjusted
Property and equipment	$	137,075		$	–		$	137,075
Goodwill		15,571			1,348			16,919
Reacquired franchise rights		10,242			–			10,242
Other intangible assets, net of liabilities of $1,288		735			–			735
Deferred income taxes		380			(928	)		(548	)
Long-term debt and capital leases		(147,005	)		–			(147,005	)
Other net liabilities		(4,536	)		–			(4,536	)
Notes receivable		(1,529	)		–			(1,529	)
Net impact on Consolidated Balance Sheet		10,933			420			11,353
Gain on settlement of preexisting contracts, net		(4,906	)		–			(4,906	)
Gain on acquisitions		(1,770	)		(420	)		(2,190	)
Net impact on Consolidated Statements of Income		(6,676	)		(420	)		(7,096	)
Aggregate cash purchase prices	$	4,257		$	–		$	4,257

Operating results for acquired franchise partnerships

The table below shows operating results attributable to the restaurants acquired from franchisees in fiscal 2011 that are included in our Condensed Consolidated Statements of Income for the 13 and 39 weeks  ended February 28, 2012 and March 1, 2011 (in thousands).  Amounts shown for the 13 and 39 weeks ended February 28, 2012 include results for all 109 restaurants acquired during fiscal 2011 while amounts shown for the 13 and 39 weeks ended March 1, 2011 include results for the 96 restaurants acquired during the first three quarters of fiscal 2011 (from the dates of acquisition as mentioned above through March 1, 2011).

	(Unaudited)
	Thirteen weeks ended				Thirty-nine weeks ended
	February 28, 2012		March 1,  2011		February 28, 2012		March 1,  2011
Total revenue	$	41,412	$	19,649	$	128,303	$	32,975
Cost of merchandise		11,908		5,804		37,545		9,629
Payroll and related costs		14,884		6,578		45,848		10,981
Other restaurant operating costs		8,950		4,580		27,725		7,684
Depreciation		2,089		848		6,356		1,665
Selling, general, and administrative, net		2,384		1,009		8,232		1,807
		40,215		18,819		125,706		31,766
Income before income taxes	$	1,197	$	830	$	2,597	$	1,209

Supplemental pro forma information

The following table presents supplemental pro forma information for the 13 and 39 weeks ended March 1, 2011 as if the 106 restaurants acquired during fiscal 2011 from franchise partnerships had occurred on June 2, 2010 for the 13 and 39 weeks ended March 1, 2011 (in thousands except per-share data):

	(Unaudited)
	Thirteen weeks ended		Thirty-nine weeks ended
	March 1, 2011		March 1, 2011
Total revenue	$	345,061	$	1,017,833
Net income	$	15,171	$	31,992
Basic earnings per share	$	0.24	$	0.50
Diluted earnings per share	$	0.23	$	0.49