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Lease Commitments
 12 Months Ended
Dec. 25, 2011
Lease Commitments [Abstract]  
Lease Commitments

14. Lease Commitments

The Company has various leases for certain restaurant land and buildings under operating lease agreements. These leases generally contain renewal options of from five years or more and require the Company to pay all executory costs, such as taxes, insurance and maintenance costs, in addition to the lease payments. Certain leases also provide for additional contingent rentals based on a percentage of sales in excess of a minimum rent. The Company leases certain equipment under a capital lease agreement having a lease term of less than three years.

In addition, the Company has four separate lease agreements that cover lease arrangements for an aggregate of 30 of its Ninety Nine restaurants, each of which contains a minimum fixed charge covenant calculation. Each of the four restaurant groups are subject to a minimum annual fixed charge coverage ratio of 1.50 to 1.00. During fiscal year 2011, each of the four groups exceeded the 1.50 to 1.00 minimum.

As of December 25, 2011 and December 26, 2010, $0.1 million and $1.3 million, respectively, of net book value of the Company’s property and equipment were under capitalized lease obligations. The assets under capital lease obligations relate to equipment. The interest rate on the capitalized lease obligation is 8.6 percent.

 

Future minimum lease payments at December 25, 2011 are as follows:

 

                 
    Capitalized
Equipment
Leases		     Operating
Leases		  
    (in thousands)  
     

2012

   $ 64     $ 40,794  

2013

     30       40,197  

2014

     —         38,523  

2015

     —         36,207  

2016

     —         33,069  

Thereafter

     —         254,887  
   

 

 

    

 

 

  

Total minimum lease payments

   $ 94     $ 443,677  
           

 

 

  

Less amount representing interest

     (7 )         
   

 

 

          

Net minimum lease payments

     87          

Less current portion

     57          
   

 

 

          

Capitalized lease obligations, net of current portion

   $ 30          
   

 

 

          

Rent expense for operating locations leases are as follows:

 

                         
    2011     2010     2009  
    (in thousands)  
       

Minimum rentals

   $ 30,713     $ 31,585     $ 31,389  

Contingent rentals

     179       188       238  
   

 

 

    

 

 

    

 

 

  
    $ 30,892     $ 31,773     $ 31,627