ANNUAL 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 |
Delaware | 74-1335253 | ||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange at which registered | ||||||
Common Stock ($0.32 par value per share) | LUB | New York Stock Exchange | ||||||
Common Stock Purchase Rights | N/A | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||||||||||||||||
Emerging growth company | ☐ | |||||||||||||||||||
Page | ||||||||
Luby's Cafeterias | Fuddruckers Restaurants | Other | ||||||||||
Owned | Leased | Owned | Leased | Leased | Total | |||||||
Texas: | ||||||||||||
Houston Metro | 16 | 12 | 8 | 9 | — | 45 | ||||||
San Antonio Metro | 9 | 1 | — | — | — | 10 | ||||||
Rio Grande Valley | 8 | 4 | — | — | — | 12 | ||||||
Dallas/Fort Worth Metro | 10 | 2 | 1 | — | — | 13 | ||||||
Austin | 4 | — | 1 | — | — | 5 | ||||||
Other Texas Markets | 9 | 2 | — | 2 | — | 13 | ||||||
California | — | — | — | 6 | — | 6 | ||||||
Arizona | — | — | — | 4 | — | 4 | ||||||
Illinois | — | — | 3 | — | — | 3 | ||||||
Mississippi | 1 | — | 1 | — | — | 2 | ||||||
Other States | — | — | — | 6 | 1 | 7 | ||||||
Total | 57 | 21 | 14 | 27 | 1 | 120 |
Number of Properties | ||||||||
Operating Restaurants: | ||||||||
Luby's cafeterias | 38 | |||||||
Fuddruckers restaurants | 5 | |||||||
Combos | 4 | |||||||
Total Operating Properties | 47 | |||||||
Non-operating held for sale | 18 | |||||||
Total | 65 |
Number of Properties | Appraised Value * | ||||||
(in millions) | |||||||
Operating Restaurants: | |||||||
Luby's cafeterias | 52 | $ | 153.7 | ||||
Fuddruckers restaurants | 9 | 18.4 | |||||
Combos | 5 | 21.9 | |||||
Total Operating Properties | 66 | $ | 194.0 | ||||
Leased to Fuddruckers franchisees | 3 | 6.1 | |||||
Non-operating held for sale | 4 | 10.3 | |||||
Bake Shop | 1 | 1.1 | |||||
Total | 74 | $ | 211.5 |
(a) | (b) | (c) | ||||||||||||||||||
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted- Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans Excluding Securities Reflected in Column (a) | |||||||||||||||||
Equity compensation plans previously approved by security holders | 860,501 | $ | 4.07 | 1,884,983 | ||||||||||||||||
Equity compensation plans not previously approved by security holders (1) | 6,332 | — | — | |||||||||||||||||
Total | 866,833 | $ | 4.07 | 1,884,983 |
(a) | (b) | (c) | ||||||||
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted- Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans Excluding Securities Reflected in Column (a) | |||||||
Equity compensation plans previously approved by security holders | 1,387,412 | $ | 4.06 | 1,753,457 | ||||||
Equity compensation plans not previously approved by security holders (1) | 17,801 | — | — | |||||||
Total | 1,405,213 | $ | 4.00 | 1,753,457 |
Fiscal Year Ended | ||||||
August 28, 2019 | August 29, 2018 | |||||
(52 weeks) | (52 weeks) | |||||
Restaurant sales | 88.0 | % | 91.1 | % | ||
Culinary contract services | 9.9 | % | 7.1 | % | ||
Franchise revenue | 2.1 | % | 1.7 | % | ||
Vending revenue | 0.1 | % | 0.1 | % | ||
TOTAL SALES | 100.0 | % | 100.0 | % | ||
STORE COSTS AND EXPENSES: | ||||||
(As a percentage of restaurant sales) | ||||||
Cost of food | 27.9 | % | 28.3 | % | ||
Payroll and related costs | 38.1 | % | 37.4 | % | ||
Other operating expenses | 17.9 | % | 18.7 | % | ||
Occupancy costs | 6.4 | % | 6.1 | % | ||
Vending revenue | (0.1 | )% | (0.2 | )% | ||
Store level profit | 9.8 | % | 9.5 | % | ||
COMPANY COSTS AND EXPENSES (as a percentage of total sales) | ||||||
Opening costs | 0.0 | % | 0.2 | % | ||
Depreciation and amortization | 4.3 | % | 4.8 | % | ||
Selling, general and administrative expenses | 10.6 | % | 10.6 | % | ||
Other charges | 1.3 | % | — | % | ||
Provision for asset impairments and restaurant closings | 1.7 | % | 2.7 | % | ||
Net gain on disposition of property and equipment | (4.0 | )% | (1.6 | )% | ||
Culinary Contract Services Costs (as a percentage of Culinary contract services sales) | ||||||
Cost of culinary contract services | 89.5 | % | 93.7 | % | ||
Culinary income | 10.5 | % | 6.3 | % | ||
Franchise Operations Costs (as a percentage of Franchise revenue) | ||||||
Cost of franchise operations | 24.4 | % | 24.0 | % | ||
Franchise income | 75.6 | % | 76.0 | % | ||
(As a percentage of total sales) | ||||||
LOSS FROM OPERATIONS | (2.8 | )% | (6.1 | )% | ||
Interest income | 0.0 | % | 0.0 | % | ||
Interest expense | (1.8 | )% | (0.9 | )% | ||
Other income, net | 0.1 | % | 0.1 | % | ||
Loss before income taxes and discontinued operations | (4.6 | )% | (6.9 | )% | ||
Provision for income taxes | 0.1 | % | 2.1 | % | ||
Loss from continuing operations | (4.7 | )% | (9.0 | )% | ||
Loss from discontinued operations, net of income taxes | (0.0 | )% | (0.2 | )% | ||
NET LOSS | (4.7 | )% | (9.2 | )% |
Fiscal Year Ended | ||||||||||||||
August 26, 2020 | August 28, 2019 | |||||||||||||
(52 weeks) | (52 weeks) | |||||||||||||
(In thousands) | ||||||||||||||
Store level profit | $ | 9,585 | $ | 27,885 | ||||||||||
Plus: | ||||||||||||||
Sales from culinary contract services | 26,747 | 31,888 | ||||||||||||
Sales from franchise operations | 3,634 | 6,690 | ||||||||||||
Less: | ||||||||||||||
Opening costs | 14 | 56 | ||||||||||||
Cost of culinary contract services | 24,218 | 28,554 | ||||||||||||
Cost of franchise operations | 1,543 | 1,633 | ||||||||||||
Depreciation and amortization | 11,514 | 13,998 | ||||||||||||
Selling, general and administrative expenses(1) | 24,571 | 34,685 | ||||||||||||
Other charges | 3,401 | 3,764 | ||||||||||||
Net provision for asset impairments and restaurant closings | 10,193 | 5,603 | ||||||||||||
Net gain on disposition of property and equipment | (11,557) | (12,832) | ||||||||||||
Interest income | (60) | (30) | ||||||||||||
Interest expense | 6,388 | 5,977 | ||||||||||||
Other income, net | (1,195) | (195) | ||||||||||||
Provision for income taxes | 357 | 469 | ||||||||||||
Loss from continuing operations | $ | (29,421) | $ | (15,219) |
Fiscal Year Ended | ||||||||
August 28, 2019 | August 29, 2018 | |||||||
(52 weeks) | (52 weeks) | |||||||
(In thousands) | ||||||||
Store level profit | $ | 27,885 | $ | 31,648 | ||||
Plus: | ||||||||
Sales from culinary contract services | 31,888 | 25,782 | ||||||
Sales from franchise operations | 6,690 | 6,365 | ||||||
Less: | ||||||||
Opening costs | 56 | 554 | ||||||
Cost of culinary contract services | 28,554 | 24,161 | ||||||
Cost of franchise operations | 1,633 | 1,528 | ||||||
Depreciation and amortization | 13,998 | 17,453 | ||||||
Selling, general and administrative expenses(1) | 34,179 | 38,725 | ||||||
Other charges | 4,270 | — | ||||||
Provision for asset impairments and restaurant closings | 5,603 | 8,917 | ||||||
Net gain on disposition of property and equipment | (12,832 | ) | (5,357 | ) | ||||
Interest income | (30 | ) | (12 | ) | ||||
Interest expense | 5,977 | 3,348 | ||||||
Other income, net | (195 | ) | (298 | ) | ||||
Provision for income taxes | 469 | 7,730 | ||||||
Loss from continuing operations | $ | (15,219 | ) | $ | (32,954 | ) |
Fiscal 2020 Year Begin | Fiscal 2020 Openings | Fiscal 2020 Closings | Fiscal 2020 Year End | |||||||||||||||||||||||
Luby’s Cafeterias(1) | 79 | — | (18) | 61 | ||||||||||||||||||||||
Fuddruckers Restaurants(1) | 44 | — | (20) | 24 | ||||||||||||||||||||||
Cheeseburger in Paradise | 1 | — | (1) | — | ||||||||||||||||||||||
Total | 124 | — | (39) | 85 |
Fiscal 2019 Year Begin | Fiscal 2019 Openings | Fiscal 2019 Closings | Fiscal 2019 Transfers to Franchisee | Fiscal 2019 Year End | |||||||||||
Luby’s Cafeterias(1) | 84 | — | (5 | ) | 79 | ||||||||||
Fuddruckers Restaurants(1) | 60 | — | (11 | ) | (5 | ) | 44 | ||||||||
Cheeseburger in Paradise | 2 | — | (1 | ) | 1 | ||||||||||
Total | 146 | — | (17 | ) | (5 | ) | 124 |
Fiscal 2019 | Fiscal 2018 | |||||||||||||||||||||||
Increase (Decrease) | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||
Luby's Cafeterias | (3.2 | )% | (3.1 | )% | (2.2 | )% | (3.0 | )% | 3.9 | % | 2.4 | % | (1.8 | )% | 1.5 | % | ||||||||
Combo Locations | (2.5 | )% | (4.8 | )% | (7.1 | )% | (11.1 | )% | (1.5 | )% | (3.3 | )% | (5.4 | )% | 1.3 | % | ||||||||
Luby's cafeteria segment | (3.2 | )% | (3.3 | )% | (2.6 | )% | (3.7 | )% | 3.3 | % | 1.9 | % | (2.1 | )% | 1.5 | % | ||||||||
Fuddruckers restaurants segment | (5.5 | )% | (6.1 | )% | (5.3 | )% | (11.2 | )% | (3.9 | )% | (5.8 | )% | (6.4 | )% | 0.6 | % | ||||||||
Cheeseburger in Paradise Segment | (3.6 | )% | (4.4 | )% | (3.1 | )% | (0.6 | )% | (4.4 | )% | (11.7 | )% | (13.9 | )% | (10.5 | )% | ||||||||
Same-store sales | (3.7 | )% | (4.0 | )% | (3.3 | )% | (5.5 | )% | 1.2 | % | (0.9 | )% | (3.7 | )% | 0.8 | % |
Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | ||||||||||||||||||||||
($000s) | August 28, 2019 | August 29, 2018 | Higher/(Lower) | ($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | ||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | (52 weeks) | (52 weeks) | |||||||||||||||||||||||
Restaurant sales | $ | 284,513 | $ | 332,518 | (14.4 | )% | Restaurant sales | $ | 183,511 | $ | 284,513 | (35.5) | % | ||||||||||||||
Culinary contract services | 31,888 | 25,782 | 23.7 | % | Culinary contract services | 26,747 | 31,888 | (16.1) | % | ||||||||||||||||||
Franchise revenue | 6,690 | 6,365 | 5.1 | % | Franchise revenue | 3,634 | 6,690 | (45.7) | % | ||||||||||||||||||
Vending revenue | 379 | 531 | (28.6 | )% | Vending revenue | 130 | 379 | (65.7) | % | ||||||||||||||||||
TOTAL SALES | $ | 323,470 | $ | 365,196 | (11.4 | )% | TOTAL SALES | $ | 214,022 | $ | 323,470 | (33.8) | % |
Restaurant Brands | Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | Restaurant Brands | Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | ||||||||||||||||||||
August 28, 2019 | August 29, 2018 | Higher/(Lower) | |||||||||||||||||||||||||
($000s) | ($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | |||||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | (52 weeks) | (52 weeks) | |||||||||||||||||||||||
Luby’s cafeterias | $ | 195,151 | $ | 210,972 | (7.5 | )% | Luby’s cafeterias | $ | 137,061 | $ | 194,615 | (29.6) | % | ||||||||||||||
Combo locations | 19,459 | 20,886 | (6.8 | )% | Combo locations | 12,699 | 19,459 | (34.7) | % | ||||||||||||||||||
Luby's cafeteria segment | $ | 214,610 | $ | 231,858 | (7.4 | )% | Luby's cafeteria segment | $ | 149,760 | $ | 214,074 | (30.0) | % | ||||||||||||||
Fuddruckers restaurants segment | 67,331 | 87,618 | (23.2 | )% | Fuddruckers restaurants segment | 32,229 | 67,331 | (52.1) | % | ||||||||||||||||||
Cheeseburger in Paradise segment | $ | 3,108 | $ | 13,042 | (76.2 | )% | Cheeseburger in Paradise segment | 1,522 | 3,108 | (51.0) | % | ||||||||||||||||
Total Restaurant Sales | $ | 284,513 | $ | 332,518 | (14.4 | )% | Total Restaurant Sales | $ | 183,511 | $ | 284,513 | (35.5) | % |
Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | |||||||||||||||||||||||
($000s) | August 28, 2019 | August 29, 2018 | Higher/(Lower) | ($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | |||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | (52 weeks) | (52 weeks) | ||||||||||||||||||||||||
Cost of food: | Cost of food: | |||||||||||||||||||||||||||
Luby's cafeteria segment | $ | 60,801 | $ | 65,956 | $ | (5,155 | ) | Luby's cafeteria segment | $ | 43,012 | $ | 60,801 | $ | (17,789) | ||||||||||||||
Fuddruckers restaurants segment | 17,712 | 23,956 | (6,244 | ) | Fuddruckers restaurants segment | 9,007 | 17,712 | (8,705) | ||||||||||||||||||||
Cheeseburger in Paradise segment | 966 | 4,326 | (3,360 | ) | Cheeseburger in Paradise segment | 486 | 966 | (480) | ||||||||||||||||||||
Total Restaurants | $ | 79,479 | $ | 94,238 | $ | (14,759 | ) | Total Restaurants | $ | 52,505 | $ | 79,479 | $ | (26,974) | ||||||||||||||
As a percentage of restaurant sales | As a percentage of restaurant sales | |||||||||||||||||||||||||||
Luby's cafeteria segment | 28.4 | % | 28.4 | % | 0.0 | % | Luby's cafeteria segment | 28.7 | % | 28.4 | % | 0.3 | % | |||||||||||||||
Fuddruckers restaurants segment | 26.3 | % | 27.3 | % | (1.0 | )% | Fuddruckers restaurants segment | 27.9 | % | 26.3 | % | 1.6 | % | |||||||||||||||
Cheeseburger in Paradise segment | 31.1 | % | 33.2 | % | (2.1 | )% | Cheeseburger in Paradise segment | 31.9 | % | 31.1 | % | 0.8 | % | |||||||||||||||
Total Restaurants | 27.9 | % | 28.3 | % | (0.4 | )% | Total Restaurants | 28.6 | % | 27.9 | % | 0.7 | % |
Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | |||||||||||||||||||||||
($000s) | August 28, 2019 | August 29, 2018 | Higher/(Lower) | ($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | |||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | (52 weeks) | (52 weeks) | ||||||||||||||||||||||||
Payroll and related Costs: | Payroll and related Costs: | |||||||||||||||||||||||||||
Luby's cafeteria segment | $ | 81,342 | $ | 86,264 | $ | (4,922 | ) | Luby's cafeteria segment | $ | 56,405 | $ | 81,342 | $ | (24,937) | ||||||||||||||
Fuddruckers restaurants segment | 25,938 | 32,585 | (6,647 | ) | Fuddruckers restaurants segment | 12,820 | 25,938 | (13,118) | ||||||||||||||||||||
Cheeseburger in Paradise segment | 1,229 | 5,629 | (4,400 | ) | Cheeseburger in Paradise segment | 608 | 1,229 | (621) | ||||||||||||||||||||
Total Restaurants | $ | 108,509 | $ | 124,478 | $ | (15,969 | ) | Total Restaurants | $ | 69,833 | $ | 108,509 | $ | (38,676) | ||||||||||||||
As a percentage of restaurant sales | As a percentage of restaurant sales | |||||||||||||||||||||||||||
Luby's cafeteria segment | 38.0 | % | 37.2 | % | 0.8 | % | Luby's cafeteria segment | 37.7 | % | 38.0 | % | (0.3) | % | |||||||||||||||
Fuddruckers restaurants segment | 38.5 | % | 37.2 | % | 1.3 | % | Fuddruckers restaurants segment | 39.8 | % | 38.5 | % | 1.3 | % | |||||||||||||||
Cheeseburger in Paradise segment | 39.5 | % | 43.2 | % | (3.6 | )% | Cheeseburger in Paradise segment | 39.9 | % | 39.5 | % | 0.4 | % | |||||||||||||||
Total Restaurants | 38.1 | % | 37.4 | % | 0.7 | % | Total Restaurants | 38.1 | % | 38.1 | % | 0.0 | % |
Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | |||||||||||||||
($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | ||||||||||||||
(52 weeks) | (52 weeks) | ||||||||||||||||
Other operating expenses: | |||||||||||||||||
Luby's cafeteria segment | $ | 29,370 | $ | 37,192 | $ | (7,822) | |||||||||||
Fuddruckers restaurants segment | 6,769 | 12,829 | (6,060) | ||||||||||||||
Cheeseburger in Paradise segment | 449 | 865 | (416) | ||||||||||||||
Total Restaurants | $ | 36,588 | $ | 50,886 | $ | (14,298) | |||||||||||
As a percentage of restaurant sales | |||||||||||||||||
Luby's cafeteria segment | 19.6 | % | 17.4 | % | 2.2 | % | |||||||||||
Fuddruckers restaurants segment | 21.0 | % | 19.1 | % | 1.9 | % | |||||||||||
Cheeseburger in Paradise segment | 29.5 | % | 27.8 | % | 1.7 | % | |||||||||||
Total Restaurants | 19.9 | % | 17.9 | % | 2.0 | % |
Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | |||||||||
($000s) | August 28, 2019 | August 29, 2018 | Higher/(Lower) | ||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | |||||||||
Other operating expenses: | |||||||||||
Luby's cafeteria segment | $ | 37,192 | $ | 41,653 | $ | (4,461 | ) | ||||
Fuddruckers restaurants segment | 12,829 | 17,305 | (4,476 | ) | |||||||
Cheeseburger in Paradise segment | 865 | 3,328 | (2,463 | ) | |||||||
Total Restaurants | $ | 50,886 | $ | 62,286 | $ | (11,400 | ) | ||||
As a percentage of restaurant sales | |||||||||||
Luby's cafeteria segment | 17.4 | % | 18.0 | % | (0.6 | )% | |||||
Fuddruckers restaurants segment | 19.1 | % | 19.8 | % | (0.7 | )% | |||||
Cheeseburger in Paradise segment | 27.8 | % | 25.5 | % | 2.3 | % | |||||
Total Restaurants | 17.9 | % | 18.7 | % | (0.8 | )% |
Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | |||||||||||||||||||||||
($000s) | August 28, 2019 | August 29, 2018 | Higher/(Lower) | ($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | |||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | (52 weeks) | (52 weeks) | ||||||||||||||||||||||||
Occupancy costs: | Occupancy costs: | |||||||||||||||||||||||||||
Luby's cafeteria segment | $ | 9,315 | $ | 8,935 | $ | 380 | Luby's cafeteria segment | $ | 8,815 | $ | 9,315 | $ | (500) | |||||||||||||||
Fuddruckers restaurants segment | 8,529 | 10,420 | (1,891 | ) | Fuddruckers restaurants segment | 6,027 | 8,529 | (2,502) | ||||||||||||||||||||
Cheeseburger in Paradise segment | 289 | 1,044 | (755 | ) | Cheeseburger in Paradise segment | 288 | 289 | (1) | ||||||||||||||||||||
Total Restaurants | $ | 18,133 | $ | 20,399 | $ | (2,266 | ) | Total Restaurants | $ | 15,130 | $ | 18,133 | $ | (3,003) | ||||||||||||||
As a percentage of restaurant sales | As a percentage of restaurant sales | |||||||||||||||||||||||||||
Luby's cafeteria segment | 4.4 | % | 3.9 | % | 0.5 | % | Luby's cafeteria segment | 5.9 | % | 4.4 | % | 1.5 | % | |||||||||||||||
Fuddruckers restaurants segment | 12.7 | % | 11.9 | % | 0.8 | % | Fuddruckers restaurants segment | 18.7 | % | 12.7 | % | 6.0 | % | |||||||||||||||
Cheeseburger in Paradise segment | 9.3 | % | 8.0 | % | 1.3 | % | Cheeseburger in Paradise segment | 18.9 | % | 9.3 | % | 9.6 | % | |||||||||||||||
Total Restaurants | 6.4 | % | 6.1 | % | 0.3 | % | Total Restaurants | 8.2 | % | 6.4 | % | 1.8 | % |
Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | ||||||||||||||||||||||
($000s) | August 28, 2019 | August 29, 2018 | Higher/(Lower) | ($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | ||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | (52 weeks) | (52 weeks) | |||||||||||||||||||||||
Franchise revenue | $ | 6,690 | $ | 6,365 | 5.1 | % | Franchise revenue | $ | 3,634 | $ | 6,690 | (45.7) | % | ||||||||||||||
Cost of franchise operations | 1,633 | 1,528 | 6.9 | % | Cost of franchise operations | 1,543 | 1,633 | (5.5) | % | ||||||||||||||||||
Franchise operations segment profit | $ | 5,057 | $ | 4,837 | 4.5 | % | Franchise operations segment profit | $ | 2,091 | $ | 5,057 | (58.7) | % | ||||||||||||||
Franchise profit as percent of Franchise revenue | 75.6 | % | 76.0 | % | (0.4 | )% | Franchise profit as percent of Franchise revenue | 57.5 | % | 75.6 | % | (18.1) | % |
Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | ||||||||||||||||||||||
($000s) | August 28, 2019 | August 29, 2018 | Higher/(Lower) | ($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | ||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | (52 weeks) | (52 weeks) | |||||||||||||||||||||||
Culinary contract services | $ | 31,888 | $ | 25,782 | 23.7 | % | Culinary contract services | $ | 26,747 | $ | 31,888 | (16.1) | % | ||||||||||||||
Cost of culinary contract services | 28,554 | 24,161 | 18.2 | % | Cost of culinary contract services | 24,218 | 28,554 | (15.2) | % | ||||||||||||||||||
CCS segment profit | $ | 3,334 | $ | 1,621 | 105.7 | % | CCS segment profit | $ | 2,529 | $ | 3,334 | (24.1) | % | ||||||||||||||
Culinary contract profit as percent of Culinary contract services sales | 10.5 | % | 6.3 | % | 4.2 | % | Culinary contract profit as percent of Culinary contract services sales | 9.5 | % | 10.5 | % | (1.0) | % |
Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | ||||||||||||||||||||||
($000s) | August 28, 2019 | August 29, 2018 | Higher/(Lower) | ($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | ||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | (52 weeks) | (52 weeks) | |||||||||||||||||||||||
Depreciation and amortization | $ | 13,998 | $ | 17,453 | (19.8 | )% | Depreciation and amortization | $ | 11,514 | $ | 13,998 | (17.7) | % | ||||||||||||||
As a percentage of total sales | 4.3 | % | 4.8 | % | (0.5 | )% | As a percentage of total sales | 5.4 | % | 4.3 | % | 1.1 | % |
Fiscal Year 2019 Ended | Fiscal Year 2018 Ended | Fiscal 2019 vs Fiscal 2018 | Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | ||||||||||||||||||||||
($000s) | August 28, 2019 | August 29, 2018 | Higher/(Lower) | ($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | ||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 vs 52 weeks) | (52 weeks) | (52 weeks) | |||||||||||||||||||||||
General and administrative expenses | $ | 30,257 | $ | 35,201 | (14.0 | )% | General and administrative expenses | $ | 21,166 | $ | 30,763 | (31.2) | % | ||||||||||||||
Marketing and advertising expenses | 3,922 | 3,524 | 11.3 | % | Marketing and advertising expenses | 3,405 | 3,922 | (13.2) | % | ||||||||||||||||||
Selling, general and administrative expenses | $ | 34,179 | $ | 38,725 | (11.7 | )% | Selling, general and administrative expenses | $ | 24,571 | $ | 34,685 | (29.2) | % | ||||||||||||||
As percent of total sales | 10.6 | % | 10.6 | % | 0.0 | % | As percent of total sales | 11.5 | % | 10.7 | % | 0.8 | % |
Fiscal Year 2020 Ended | Fiscal Year 2019 Ended | Fiscal 2020 vs Fiscal 2019 | |||||||||||||||
($000s) | August 26, 2020 | August 28, 2019 | Higher/(Lower) | ||||||||||||||
(52 weeks) | (52 weeks) | ||||||||||||||||
Other Charges: | |||||||||||||||||
Proxy Communication Related | $ | — | $ | 1,740 | $ | (1,740) | |||||||||||
Employee Severances | 1,332 | 820 | 512 | ||||||||||||||
Restructuring Related | 2,069 | 1,204 | 865 | ||||||||||||||
Total Other Charges | $ | 3,401 | $ | 3,764 | $ | (363) |
Fiscal Year 2019 Ended | |||
($000s) | August 28, 2019 | ||
(52 weeks) | |||
Proxy communication related | $ | 1,740 | |
Employee severances | 1,325 | ||
Restructuring related | 1,205 | ||
Total Other Charges | $ | 4,270 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||
($000s) | August 28, 2019 | August 29, 2018 | ($000s) | August 26, 2020 | August 28, 2019 | |||||||||||||||||
(52 weeks) | (52 weeks) | (52 weeks) | (52 weeks) | |||||||||||||||||||
Discontinued operating losses | $ | (7 | ) | $ | (21 | ) | Discontinued operating losses | $ | (29) | $ | (7) | |||||||||||
Impairments | — | (59 | ) | |||||||||||||||||||
Gains | — | — | ||||||||||||||||||||
Pretax loss | $ | (7 | ) | $ | (80 | ) | Pretax loss | $ | (29) | $ | (7) | |||||||||||
Income tax benefit (expense) from discontinued operations | — | (534 | ) | Income tax benefit (expense) from discontinued operations | — | — | ||||||||||||||||
Loss from discontinued operations, net of income taxes | $ | (7 | ) | $ | (614 | ) | Loss from discontinued operations, net of income taxes | $ | (29) | $ | (7) |
Fiscal Year Ended | ||||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||||
August 28, 2019 | August 29, 2018 | |||||||||||||||||||||||||
(000's) | (000's) | August 26, 2020 | August 28, 2019 | |||||||||||||||||||||||
(52 weeks) | (52 weeks) | (52 weeks) | (52 weeks) | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Total cash provided by (used in): | Total cash provided by (used in): | |||||||||||||||||||||||||
Operating activities | $ | (13,130 | ) | $ | (8,453 | ) | Operating activities | $ | (21,597) | $ | (13,130) | |||||||||||||||
Investing activities | 17,849 | 3,014 | Investing activities | 22,782 | 17,849 | |||||||||||||||||||||
Financing activities | 4,315 | 8,065 | Financing activities | 7,884 | 4,315 | |||||||||||||||||||||
Increase (Decrease) in cash and cash equivalents | $ | 9,034 | $ | 2,626 | ||||||||||||||||||||||
Increase in cash and cash equivalents | Increase in cash and cash equivalents | $ | 9,069 | $ | 9,034 |
Fiscal Year Ended | ||||||||||||||
August 26, 2020 | August 28, 2019 | |||||||||||||
(364 days) | (364 days) | |||||||||||||
(In thousands, except percentages) | ||||||||||||||
AFFILIATED COSTS INCURRED: | ||||||||||||||
Selling, general and administrative expenses—professional and other costs | $ | — | $ | — | ||||||||||
Capital expenditures—custom-fabricated and refurbished equipment | 8 | 19 | ||||||||||||
Other operating expenses, occupancy costs and opening costs, including property leases | 411 | 593 | ||||||||||||
Total | $ | 419 | $ | 612 | ||||||||||
RELATIVE TOTAL COMPANY COSTS: | ||||||||||||||
Selling, general and administrative expenses | $ | 24,571 | $ | 34,179 | ||||||||||
Capital expenditures | 2,120 | 3,987 | ||||||||||||
Other operating expenses, occupancy costs and opening costs | 51,732 | 68,710 | ||||||||||||
Total | $ | 78,423 | $ | 106,876 | ||||||||||
AFFILIATED COSTS INCURRED AS A PERCENTAGE OF RELATIVE TOTAL COMPANY COSTS | 0.53 | % | 0.57 | % |
Fiscal Year Ended | ||||||||
August 28, 2019 | August 29, 2018 | |||||||
(364 days) | (364 days) | |||||||
(In thousands, except percentages) | ||||||||
AFFILIATED COSTS INCURRED: | ||||||||
Selling, general and administrative expenses—professional and other costs | $ | — | $ | — | ||||
Capital expenditures—custom-fabricated and refurbished equipment | 19 | 31 | ||||||
Other operating expenses, occupancy costs and opening costs, including property leases | 593 | 628 | ||||||
Total | $ | 612 | $ | 659 | ||||
RELATIVE TOTAL COMPANY COSTS: | ||||||||
Selling, general and administrative expenses | $ | 34,179 | $ | 38,725 | ||||
Capital expenditures | 3,987 | 13,247 | ||||||
Other operating expenses, occupancy costs and opening costs | 69,075 | 83,239 | ||||||
Total | $ | 107,241 | $ | 135,211 | ||||
AFFILIATED COSTS INCURRED AS A PERCENTAGE OF RELATIVE TOTAL COMPANY COSTS | 0.57 | % | 0.49 | % |
August 28, 2019 | August 29, 2018 | August 26, 2020 | August 28, 2019 | |||||||||||
(In thousands, except share data) | (In thousands, except share data) | |||||||||||||
ASSETS | ASSETS | |||||||||||||
Current Assets: | Current Assets: | |||||||||||||
Cash and cash equivalents | $ | 3,640 | $ | 3,722 | Cash and cash equivalents | $ | 15,069 | $ | 3,640 | |||||
Restricted cash and cash equivalents | 9,116 | — | ||||||||||||
Restricted Cash and cash equivalents | Restricted Cash and cash equivalents | 6,756 | 9,116 | |||||||||||
Trade accounts and other receivables, net | 8,852 | 8,787 | Trade accounts and other receivables, net | 6,092 | 8,852 | |||||||||
Food and supply inventories | 3,432 | 4,022 | Food and supply inventories | 1,653 | 3,432 | |||||||||
Prepaid expenses | 2,355 | 3,219 | ||||||||||||
Prepaid and other assets | Prepaid and other assets | 1,577 | 2,355 | |||||||||||
Total current assets | 27,395 | 19,750 | Total current assets | 31,147 | 27,395 | |||||||||
Property held for sale | 16,488 | 19,469 | Property held for sale | 11,249 | 16,488 | |||||||||
Assets related to discontinued operations | 1,813 | 1,813 | Assets related to discontinued operations | 1,715 | 1,813 | |||||||||
Property and equipment, net | 121,743 | 138,287 | Property and equipment, net | 100,599 | 121,743 | |||||||||
Intangible assets, net | 16,781 | 18,179 | Intangible assets, net | 15,343 | 16,781 | |||||||||
Goodwill | 514 | 555 | Goodwill | 195 | 514 | |||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 16,756 | — | |||||||||||
Other assets | 1,266 | 1,936 | Other assets | 399 | 1,266 | |||||||||
Total assets | $ | 186,000 | $ | 199,989 | Total assets | $ | 177,403 | $ | 186,000 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Current Liabilities: | Current Liabilities: | |||||||||||||
Accounts payable | $ | 8,465 | $ | 10,457 | Accounts payable | $ | 6,770 | $ | 8,465 | |||||
Liabilities related to discontinued operations | 14 | 14 | Liabilities related to discontinued operations | 17 | 14 | |||||||||
Current portion of credit facility debt | — | 39,338 | ||||||||||||
Operating lease liabilities - current | Operating lease liabilities - current | 3,903 | — | |||||||||||
Accrued expenses and other liabilities | 24,475 | 31,755 | Accrued expenses and other liabilities | 19,569 | 24,475 | |||||||||
Total current liabilities | 32,954 | 81,564 | Total current liabilities | 30,259 | 32,954 | |||||||||
Credit facility debt, less current portion | 45,439 | — | ||||||||||||
Liabilities related to discontinued operations | — | 16 | ||||||||||||
Long-term debt, less current portion | Long-term debt, less current portion | 54,118 | 45,439 | |||||||||||
Operating lease liabilities - non-current | Operating lease liabilities - non-current | 17,797 | — | |||||||||||
Other liabilities | 6,577 | 5,781 | Other liabilities | 1,630 | 6,577 | |||||||||
Total liabilities | 84,970 | 87,361 | Total liabilities | 103,804 | 84,970 | |||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY | |||||||||||||
Common stock, $0.32 par value; 100,000,000 shares authorized; Shares issued were 30,478,972 and 30,003,642 at August 28, 2019 and August 29, 2018, respectively; Shares outstanding were 29,978,972 and 29,503,642 at August 28, 2019 and August 29, 2018, respectively | 9,753 | 9,602 | ||||||||||||
Common stock, $0.32 par value;100,000,000 shares authorized; Shares issued were 31,125,470 and 30,478,972 and shares outstanding were 30,625,470 and 29,978,972 at August 26, 2020 and August 28, 2019, respectively; | Common stock, $0.32 par value;100,000,000 shares authorized; Shares issued were 31,125,470 and 30,478,972 and shares outstanding were 30,625,470 and 29,978,972 at August 26, 2020 and August 28, 2019, respectively; | 9,960 | 9,753 | |||||||||||
Paid-in capital | 34,870 | 33,872 | Paid-in capital | 35,655 | 34,870 | |||||||||
Retained earnings | 61,182 | 73,929 | Retained earnings | 32,759 | 61,182 | |||||||||
Less cost of treasury stock, 500,000 shares | (4,775 | ) | (4,775 | ) | Less cost of treasury stock, 500,000 shares | (4,775) | (4,775) | |||||||
Total shareholders’ equity | 101,030 | 112,628 | Total shareholders’ equity | 73,599 | 101,030 | |||||||||
Total liabilities and shareholders’ equity | $ | 186,000 | $ | 199,989 | Total liabilities and shareholders’ equity | $ | 177,403 | $ | 186,000 |
Year Ended | ||||||||||||||
August 26, 2020 | August 28, 2019 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||
SALES: | ||||||||||||||
Restaurant sales | $ | 183,511 | $ | 284,513 | ||||||||||
Culinary contract services | 26,747 | 31,888 | ||||||||||||
Franchise revenue | 3,634 | 6,690 | ||||||||||||
Vending revenue | 130 | 379 | ||||||||||||
TOTAL SALES | 214,022 | 323,470 | ||||||||||||
COSTS AND EXPENSES: | ||||||||||||||
Cost of food | 52,505 | 79,479 | ||||||||||||
Payroll and related costs | 69,833 | 108,509 | ||||||||||||
Other operating expenses | 36,588 | 50,886 | ||||||||||||
Occupancy costs | 15,130 | 18,133 | ||||||||||||
Opening costs | 14 | 56 | ||||||||||||
Cost of culinary contract services | 24,218 | 28,554 | ||||||||||||
Cost of franchise operations | 1,543 | 1,633 | ||||||||||||
Depreciation and amortization | 11,514 | 13,998 | ||||||||||||
Selling, general and administrative expenses | 24,571 | 34,685 | ||||||||||||
Other charges | 3,401 | 3,764 | ||||||||||||
Net provision for asset impairments and restaurant closings | 10,193 | 5,603 | ||||||||||||
Net gain on disposition of property and equipment | (11,557) | (12,832) | ||||||||||||
Total costs and expenses | 237,953 | 332,468 | ||||||||||||
LOSS FROM OPERATIONS | (23,931) | (8,998) | ||||||||||||
Interest income | 60 | 30 | ||||||||||||
Interest expense | (6,388) | (5,977) | ||||||||||||
Other income, net | 1,195 | 195 | ||||||||||||
Loss before income taxes and discontinued operations | (29,064) | (14,750) | ||||||||||||
Provision for income taxes | 357 | 469 | ||||||||||||
Loss from continuing operations | (29,421) | (15,219) | ||||||||||||
Loss from discontinued operations, net of income taxes | (29) | (7) | ||||||||||||
NET LOSS | $ | (29,450) | $ | (15,226) | ||||||||||
Loss per share from continuing operations: | ||||||||||||||
Basic | $ | (0.97) | $ | (0.51) | ||||||||||
Assuming dilution | $ | (0.97) | $ | (0.51) | ||||||||||
Loss per share from discontinued operations: | ||||||||||||||
Basic | $ | 0.00 | $ | 0.00 | ||||||||||
Assuming dilution | $ | 0.00 | $ | 0.00 | ||||||||||
Net loss per share: | ||||||||||||||
Basic | $ | (0.97) | $ | (0.51) | ||||||||||
Assuming dilution | $ | (0.97) | $ | (0.51) | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||
Basic | 30,294 | 29,786 | ||||||||||||
Assuming dilution | 30,294 | 29,786 |
Year Ended | ||||||||
August 28, 2019 | August 29, 2018 | |||||||
(In thousands, except per share data) | ||||||||
SALES: | ||||||||
Restaurant sales | $ | 284,513 | $ | 332,518 | ||||
Culinary contract services | 31,888 | 25,782 | ||||||
Franchise revenue | 6,690 | 6,365 | ||||||
Vending revenue | 379 | 531 | ||||||
TOTAL SALES | 323,470 | 365,196 | ||||||
COSTS AND EXPENSES: | ||||||||
Cost of food | 79,479 | 94,238 | ||||||
Payroll and related costs | 108,509 | 124,478 | ||||||
Other operating expenses | 50,886 | 62,286 | ||||||
Occupancy costs | 18,133 | 20,399 | ||||||
Opening costs | 56 | 554 | ||||||
Cost of culinary contract services | 28,554 | 24,161 | ||||||
Cost of franchise operations | 1,633 | 1,528 | ||||||
Depreciation and amortization | 13,998 | 17,453 | ||||||
Selling, general and administrative expenses | 34,179 | 38,725 | ||||||
Other charges | 4,270 | — | ||||||
Provision for asset impairments and restaurant closings | 5,603 | 8,917 | ||||||
Net gain on disposition of property and equipment | (12,832 | ) | (5,357 | ) | ||||
Total costs and expenses | 332,468 | 387,382 | ||||||
LOSS FROM OPERATIONS | (8,998 | ) | (22,186 | ) | ||||
Interest income | 30 | 12 | ||||||
Interest expense | (5,977 | ) | (3,348 | ) | ||||
Other income, net | 195 | 298 | ||||||
Loss before income taxes and discontinued operations | (14,750 | ) | (25,224 | ) | ||||
Provision for income taxes | 469 | 7,730 | ||||||
Loss from continuing operations | (15,219 | ) | (32,954 | ) | ||||
Loss from discontinued operations, net of income taxes | (7 | ) | (614 | ) | ||||
NET LOSS | $ | (15,226 | ) | $ | (33,568 | ) | ||
Loss per share from continuing operations: | ||||||||
Basic | $ | (0.51 | ) | $ | (1.10 | ) | ||
Assuming dilution | $ | (0.51 | ) | $ | (1.10 | ) | ||
Loss per share from discontinued operations: | ||||||||
Basic | $ | 0.00 | $ | (0.02 | ) | |||
Assuming dilution | $ | 0.00 | $ | (0.02 | ) | |||
Net loss per share: | ||||||||
Basic | $ | (0.51 | ) | $ | (1.12 | ) | ||
Assuming dilution | $ | (0.51 | ) | $ | (1.12 | ) | ||
Weighted-average shares outstanding: | ||||||||
Basic | 29,786 | 29,901 | ||||||
Assuming dilution | 29,786 | 29,901 |
Common Stock | |||||||||||||||||||||||||||||||||||||||||
Issued | Treasury | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||
Balance at August 29, 2018 | 30,003 | $ | 9,602 | (500) | $ | (4,775) | $ | 33,872 | $ | 73,929 | $ | 112,628 | |||||||||||||||||||||||||||||
Net loss for the year | — | — | — | — | — | (15,226) | (15,226) | ||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes from the adoption of ASC Topic 606 | — | — | — | — | — | 2,479 | 2,479 | ||||||||||||||||||||||||||||||||||
Common stock issued under nonemployee director benefit plans | 53 | 17 | — | — | (17) | — | — | ||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans | 93 | 30 | — | — | (30) | — | — | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | 329 | 104 | — | — | 1,045 | — | 1,149 | ||||||||||||||||||||||||||||||||||
Balance at August 28, 2019 | 30,478 | $ | 9,753 | (500) | $ | (4,775) | $ | 34,870 | $ | 61,182 | $ | 101,030 | |||||||||||||||||||||||||||||
Net loss for the year | — | — | — | — | — | (29,450) | (29,450) | ||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes from the adoption of ASC Topic 842 | — | — | — | — | — | 1,027 | 1,027 | ||||||||||||||||||||||||||||||||||
Common stock issued under nonemployee director benefit plans | 64 | 20 | — | — | (20) | — | — | ||||||||||||||||||||||||||||||||||
Common stock issued under employee benefit plans | 73 | 24 | — | — | (66) | — | (42) | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | 509 | 163 | — | — | 871 | — | 1,034 | ||||||||||||||||||||||||||||||||||
Balance at August 26, 2020 | 31,124 | $ | 9,960 | (500) | $ | (4,775) | $ | 35,655 | $ | 32,759 | $ | 73,599 | |||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||
Issued | Treasury | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Paid-In Capital | Retained Earnings | Total Shareholders’ Equity | |||||||||||||||||||||||||
Balance at August 30, 2017 | 29,624 | $ | 9,480 | (500 | ) | $ | (4,775 | ) | $ | 31,850 | $ | 107,497 | $ | 144,052 | |||||||||||||||||
Net loss for the year | — | — | — | — | — | (33,568 | ) | (33,568 | ) | ||||||||||||||||||||||
Common stock issued under nonemployee director benefit plans | 87 | 28 | — | — | (28 | ) | — | — | |||||||||||||||||||||||
Common stock issued under employee benefit plans | 183 | 59 | — | — | (59 | ) | — | — | |||||||||||||||||||||||
Share-based compensation expense | 109 | 35 | — | — | 2,109 | — | 2,144 | ||||||||||||||||||||||||
Balance at August 29, 2018 | 30,003 | $ | 9,602 | (500 | ) | $ | (4,775 | ) | $ | 33,872 | $ | 73,929 | $ | 112,628 | |||||||||||||||||
Net loss for the year | — | — | — | — | — | (15,226 | ) | (15,226 | ) | ||||||||||||||||||||||
Cumulative effect of accounting changes from the adoption of ASC Topic 606 | — | — | — | — | — | — | — | — | — | — | 2,479 | 2,479 | 2,479 | ||||||||||||||||||
Common stock issued under nonemployee director benefit plans | 53 | 17 | — | — | (17 | ) | — | — | |||||||||||||||||||||||
Common stock issued under employee benefit plans | 93 | 30 | — | — | (30 | ) | — | — | |||||||||||||||||||||||
Share-based compensation expense | 329 | 104 | — | — | 1,045 | — | 1,149 | ||||||||||||||||||||||||
Balance at August 28, 2019 | 30,478 | $ | 9,753 | (500 | ) | $ | (4,775 | ) | $ | 34,870 | $ | 61,182 | $ | 101,030 |
Year Ended | |||||||||||||||||
August 26, 2020 | August 28, 2019 | ||||||||||||||||
(In thousands) | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net loss | $ | (29,450) | $ | (15,226) | |||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||||
Net provision for asset impairments and restaurant closings | 10,193 | 5,603 | |||||||||||||||
Net gain on disposition of property and equipment | (11,557) | (12,832) | |||||||||||||||
Depreciation and amortization | 11,514 | 13,998 | |||||||||||||||
Amortization of debt issuance cost | 1,212 | 1,317 | |||||||||||||||
Share-based compensation expense | 1,034 | 1,140 | |||||||||||||||
Provision for doubtful accounts | 1,624 | 196 | |||||||||||||||
Cash used in operating activities before changes in operating assets and liabilities | (15,430) | (5,804) | |||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Decrease (increase) in trade accounts and other receivables | 1,206 | (261) | |||||||||||||||
Decrease in food and supply inventories | 345 | 590 | |||||||||||||||
Decrease in prepaid expenses and other assets | 651 | 1,657 | |||||||||||||||
Decrease in operating lease assets | 5,054 | — | |||||||||||||||
Decrease in operating lease liabilities | (10,862) | — | |||||||||||||||
Decrease in accounts payable, accrued expenses and other liabilities | (2,561) | (9,312) | |||||||||||||||
Net cash used in operating activities | (21,597) | (13,130) | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Proceeds from disposal of assets and property held for sale | 24,902 | 21,836 | |||||||||||||||
Purchases of property and equipment | (2,120) | (3,987) | |||||||||||||||
Net cash provided by investing activities | 22,782 | 17,849 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Revolver borrowings | 4,700 | 42,300 | |||||||||||||||
Revolver repayments | 0 | (57,000) | |||||||||||||||
Debt issuance costs | 0 | (3,266) | |||||||||||||||
Proceeds from term loan | 5,000 | 58,400 | |||||||||||||||
Proceeds from PPP Loan | 10,000 | — | |||||||||||||||
Term loan repayments | (11,816) | (36,107) | |||||||||||||||
Tax paid on equity withheld | 0 | (12) | |||||||||||||||
Net cash provided by financing activities | 7,884 | 4,315 | |||||||||||||||
Net increase in cash and cash equivalents and restricted cash | 9,069 | 9,034 | |||||||||||||||
Cash and cash equivalents and restricted cash at beginning of period | 12,756 | 3,722 | |||||||||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 21,825 | $ | 12,756 | |||||||||||||
Cash paid for: | |||||||||||||||||
Income taxes | $ | 446 | $ | 470 | |||||||||||||
Interest | $ | 5,275 | $ | 4,452 |
Year Ended | |||||||
August 28, 2019 | August 29, 2018 | ||||||
(In thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (15,226 | ) | $ | (33,568 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Provision for asset impairments and net loss (gain) on property dispositions | (7,229 | ) | 3,619 | ||||
Depreciation and amortization | 13,998 | 17,453 | |||||
Amortization of debt issuance cost | 1,317 | 534 | |||||
Share-based compensation expense | 1,140 | 2,144 | |||||
Deferred tax provision | — | 8,192 | |||||
Cash used in operating activities before changes in operating assets and liabilities | (6,000 | ) | (1,626 | ) | |||
Changes in operating assets and liabilities: | |||||||
Increase in trade accounts and other receivables | (65 | ) | (775 | ) | |||
Decrease in food and supply inventories | 590 | 432 | |||||
Decrease in prepaid expenses and other assets | 1,657 | 808 | |||||
Decrease in accounts payable, accrued expenses and other liabilities | (9,312 | ) | (7,292 | ) | |||
Net cash used in operating activities | (13,130 | ) | (8,453 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from disposal of assets and property held for sale | 21,836 | 14,191 | |||||
Insurance proceeds | — | 2,070 | |||||
Purchases of property and equipment | (3,987 | ) | (13,247 | ) | |||
Net cash provided by investing activities | 17,849 | 3,014 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Revolver borrowings | 42,300 | 147,600 | |||||
Revolver repayments | (57,000 | ) | (132,000 | ) | |||
Debt issuance costs | (3,266 | ) | (386 | ) | |||
Proceeds on term loan | 58,400 | — | |||||
Term loan repayments | (36,107 | ) | (7,079 | ) | |||
Tax paid on equity withheld | (12 | ) | (70 | ) | |||
Net cash provided by financing activities | 4,315 | 8,065 | |||||
Net increase in cash and cash equivalents and restricted cash | 9,034 | 2,626 | |||||
Cash and cash equivalents and restricted cash at beginning of period | 3,722 | 1,096 | |||||
Cash and cash equivalents and restricted cash at end of period | $ | 12,756 | $ | 3,722 | |||
Cash paid for: | |||||||
Income taxes | $ | 470 | $ | 426 | |||
Interest | $ | 4,452 | $ | 2,499 |
Fiscal Year Ended | |||||||||||
August 26, 2020 | August 28, 2019 | ||||||||||
(in thousands) | |||||||||||
OTHER CHARGES: | |||||||||||
Proxy Communication Related | $ | 0 | $ | 1,740 | |||||||
Employee Severances | 1,332 | 820 | |||||||||
Restructuring Related | 2,069 | 1,204 | |||||||||
Total Other Charges | $ | 3,401 | $ | 3,764 |
Balance at August 28, 2019 | ASC 842 Adjustment | Balance at August 29, 2019 | |||||||||
(In thousands) | |||||||||||
ASSETS | |||||||||||
Trade accounts and other receivables, net | $ | 8,852 | $ | 70 | $ | 8,922 | |||||
Prepaid expenses | 2,355 | (225) | 2,130 | ||||||||
Total Current Assets | 27,395 | (155) | 27,240 | ||||||||
Intangible assets, net | 16,781 | (190) | 16,591 | ||||||||
Operating lease right-of-use assets, net | — | 27,191 | 27,191 | ||||||||
Total Assets | $ | 186,000 | $ | 26,846 | $ | 212,846 | |||||
LIABILITIES | |||||||||||
Operating lease liabilities-current | $ | — | $ | 8,061 | $ | 8,061 | |||||
Accrued expenses and other liabilities | 24,475 | (1,002) | 23,473 | ||||||||
Total Current Liabilities | 32,954 | 7,059 | 40,013 | ||||||||
Operating lease liabilities-non-current | — | 24,360 | 24,360 | ||||||||
Other liabilities | 6,577 | (5,600) | 977 | ||||||||
Total Liabilities | $ | 84,970 | $ | 25,819 | $ | 110,789 | |||||
SHAREHOLDERS’ EQUITY | |||||||||||
Retained earnings | $ | 61,182 | $ | 1,027 | $ | 62,209 | |||||
Total Shareholders' Equity | 101,030 | 1,027 | 102,057 | ||||||||
Total Liabilities and Shareholders' Equity | $ | 186,000 | $ | 26,846 | $ | 212,846 |
August 28, 2019 | August 29, 2018 | August 26, 2020 | August 28, 2019 | |||||||||||||||
(in thousands) | (In thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 3,640 | $ | 3,722 | Cash and cash equivalents | $ | 15,069 | $ | 3,640 | |||||||||
Restricted cash and cash equivalents | 9,116 | — | Restricted cash and cash equivalents | 6,756 | 9,116 | |||||||||||||
Total cash and cash equivalents shown in the statement of cash flows | $ | 12,756 | $ | 3,722 | Total cash and cash equivalents shown in the statement of cash flows | $ | 21,825 | $ | 12,756 |
Gift Cards, net of discounts | Franchise Fees | |||||||||||||
(In thousands) | ||||||||||||||
Balance at August 30, 2018 | $ | 2,707 | $ | 1,891 | ||||||||||
Revenue recognized that was included in the contract liability balance at the beginning of the year | (1,308) | (564) | ||||||||||||
Increase (decrease), net of amounts recognized as revenue during the period | 1,481 | (40) | ||||||||||||
Balance at August 28, 2019 | $ | 2,880 | $ | 1,287 | ||||||||||
Revenue recognized that was included in the contract liability balance at the beginning of the year | (1,011) | (128) | ||||||||||||
Increase, net of amounts recognized as revenue during the period | 1,541 | 0 | ||||||||||||
Balance at August 26, 2020 | $ | 3,410 | $ | 1,159 |
Gift Cards, net of discounts | Franchise Fees | |||||||
(In thousands) | ||||||||
Balance at August 30, 2018 | $ | 2,707 | $ | 1,891 | ||||
Revenue recognized that was included in the contract liability balance at the beginning of the year | (1,308 | ) | (564 | ) | ||||
Increase (decrease), net of amounts recognized as revenue during the period | 1,481 | (40 | ) | |||||
Balance at August 28, 2019 | $ | 2,880 | $ | 1,287 |
Franchise Fees | ||||
(In thousands) | ||||
Fiscal 2020 | $ | 37 | ||
Fiscal 2021 | 37 | |||
Fiscal 2022 | 37 | |||
Fiscal 2023 | 37 | |||
Fiscal 2024 | 37 | |||
Thereafter | 347 | |||
Total operating franchise restaurants | $ | 495 | ||
Franchise restaurants not yet opened(1) | 755 | |||
Total | $ | 1,250 |
Franchise Fees | ||||||||||||||
(In thousands) | ||||||||||||||
Fiscal 2021 | $ | 32 | ||||||||||||
Fiscal 2022 | 32 | |||||||||||||
Fiscal 2023 | 32 | |||||||||||||
Fiscal 2024 | 32 | |||||||||||||
Fiscal 2025 | 32 | |||||||||||||
Thereafter | 244 | |||||||||||||
Total operating franchise restaurants | 404 | |||||||||||||
Franchise restaurants not yet opened(1) | 755 | |||||||||||||
Total | $ | 1,159 |
Operating Leases | Classification | August 26, 2020 | |||||||||||||||
(In thousands) | |||||||||||||||||
Right-of-use assets | Operating lease right-of-use assets | $ | 16,756 | ||||||||||||||
Current lease liabilities | Operating lease liabilities - current | $ | 3,903 | ||||||||||||||
Non-current lease liabilities | Operating lease liabilities - non-current | 17,797 | |||||||||||||||
Total lease liabilities | $ | 21,700 |
Weighted-average remaining lease term | 5.73 years | ||||||||||
Weighted-average discount rate | 9.57% |
52 Weeks Ended | |||||||||||||||||||||||
August 26, 2020 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Operating lease expense | $ | 7,700 | |||||||||||||||||||||
Variable lease expense | 933 | ||||||||||||||||||||||
Short-term lease expense | 247 | ||||||||||||||||||||||
Sublease expense | 412 | ||||||||||||||||||||||
Total lease expense | $ | 9,292 |
52 Weeks Ended | |||||||||||||||||||||||
August 26, 2020 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Operating lease income | $ | 734 | |||||||||||||||||||||
Sublease income | 412 | ||||||||||||||||||||||
Variable lease income | 136 | ||||||||||||||||||||||
Total lease income | $ | 1,282 |
52 Weeks Ended | |||||||||||||||||||||||
August 26, 2020 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 9,958 | |||||||||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 1,868 |
(In thousands) | |||||||||||||||||
FY 2021 | $ | 5,804 | |||||||||||||||
FY 2022 | 4,357 | ||||||||||||||||
FY 2023 | 4,782 | ||||||||||||||||
FY 2024 | 3,136 | ||||||||||||||||
FY 2025 | 4,021 | ||||||||||||||||
Thereafter | 7,324 | ||||||||||||||||
Total lease payments | 29,424 | ||||||||||||||||
Less: imputed interest | (7,724) | ||||||||||||||||
Present value of operating lease obligations | $ | 21,700 |
Fiscal Year Ending: | (In thousands) | ||||
August 26, 2020 | $ | 8,841 | |||
August 25, 2021 | 7,155 | ||||
August 31, 2022 | 5,643 | ||||
August 30, 2023 | 4,410 | ||||
August 28, 2024 | 3,768 | ||||
Thereafter | 10,312 | ||||
Total minimum lease payments | $ | 40,129 |
Fiscal Year Ended | ||||||||||||||
August 26, 2020 | August 28, 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Sales: | ||||||||||||||
Luby's cafeterias | $ | 149,691 | $ | 214,074 | ||||||||||
Fuddruckers restaurants(1) | 32,428 | 67,710 | ||||||||||||
Cheeseburger in Paradise restaurants | 1,522 | 3,108 | ||||||||||||
Culinary contract services | 26,747 | 31,888 | ||||||||||||
Fuddruckers franchise operations | 3,634 | 6,690 | ||||||||||||
Total | $ | 214,022 | $ | 323,470 | ||||||||||
Segment level profit: | ||||||||||||||
Luby's cafeterias | $ | 12,087 | $ | 25,423 | ||||||||||
Fuddruckers restaurants | (2,196) | 2,702 | ||||||||||||
Cheeseburger in Paradise restaurants | (308) | (240) | ||||||||||||
Culinary contract services | 2,529 | 3,334 | ||||||||||||
Fuddruckers franchise operations | 2,093 | 5,057 | ||||||||||||
Total | $ | 14,205 | $ | 36,276 | ||||||||||
Depreciation and amortization: | ||||||||||||||
Luby's cafeterias | $ | 7,598 | $ | 8,886 | ||||||||||
Fuddruckers restaurants | 1,507 | 2,844 | ||||||||||||
Cheeseburger in Paradise restaurants | 77 | 117 | ||||||||||||
Culinary contract services | 34 | 82 | ||||||||||||
Fuddruckers franchise operations | 298 | 767 | ||||||||||||
Corporate | 2,000 | 1,302 | ||||||||||||
Total | $ | 11,514 | $ | 13,998 | ||||||||||
Total assets: | ||||||||||||||
Luby's cafeterias | $ | 90,349 | $ | 107,287 | ||||||||||
Fuddruckers restaurants (2) | 26,502 | 25,725 | ||||||||||||
Cheeseburger in Paradise restaurants (3) | 164 | 829 | ||||||||||||
Culinary contract services | 4,744 | 6,703 | ||||||||||||
Fuddruckers franchise operations (4) | 8,973 | 10,034 | ||||||||||||
Corporate | 46,671 | 35,422 | ||||||||||||
Total | $ | 177,403 | $ | 186,000 |
Fiscal Year Ended | ||||||||
August 28, 2019 | August 29, 2018 | |||||||
(In thousands) | ||||||||
Sales: | ||||||||
Luby's cafeterias | $ | 214,074 | $ | 231,859 | ||||
Fuddruckers restaurants(1) | 67,710 | 88,139 | ||||||
Cheeseburger in Paradise restaurants | 3,108 | 13,051 | ||||||
Culinary contract services | 31,888 | 25,782 | ||||||
Fuddruckers franchise operations | 6,690 | 6,365 | ||||||
Total | $ | 323,470 | $ | 365,196 | ||||
Segment level profit: | ||||||||
Luby's cafeterias | $ | 25,423 | $ | 29,050 | ||||
Fuddruckers restaurants | 2,702 | 3,873 | ||||||
Cheeseburger in Paradise restaurants | (240 | ) | (1,275 | ) | ||||
Culinary contract services | 3,334 | 1,621 | ||||||
Fuddruckers franchise operations | 5,057 | 4,837 | ||||||
Total | $ | 36,276 | $ | 38,106 | ||||
Depreciation and amortization: | ||||||||
Luby's cafeterias | $ | 8,886 | $ | 10,455 | ||||
Fuddruckers restaurants | 2,844 | 3,900 | ||||||
Cheeseburger in Paradise restaurants | 117 | 386 | ||||||
Culinary contract services | 82 | 71 | ||||||
Fuddruckers franchise operations | 767 | 769 | ||||||
Corporate | 1,302 | 1,872 | ||||||
Total | $ | 13,998 | $ | 17,453 | ||||
Total assets: | ||||||||
Luby's cafeterias | $ | 107,287 | $ | 113,259 | ||||
Fuddruckers restaurants (2) | 25,725 | 36,345 | ||||||
Cheeseburger in Paradise restaurants (3) | 829 | 1,907 | ||||||
Culinary contract services | 6,703 | 4,569 | ||||||
Fuddrucker franchise operations (4) | 10,034 | 10,982 | ||||||
Corporate | 35,422 | 32,927 | ||||||
Total | $ | 186,000 | $ | 199,989 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||
August 28, 2019 | August 29, 2018 | August 26, 2020 | August 28, 2019 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||
Capital expenditures: | Capital expenditures: | |||||||||||||||||||||
Luby's cafeterias | $ | 3,195 | $ | 7,474 | Luby's cafeterias | $ | 1,841 | $ | 3,195 | |||||||||||||
Fuddruckers restaurants | 513 | 3,258 | Fuddruckers restaurants | 148 | 513 | |||||||||||||||||
Cheeseburger in Paradise restaurants | 16 | 377 | Cheeseburger in Paradise restaurants | 34 | 16 | |||||||||||||||||
Culinary contract services | — | 235 | ||||||||||||||||||||
Fuddruckers franchise operations | Fuddruckers franchise operations | 9 | 0 | |||||||||||||||||||
Corporate | 263 | 1,903 | Corporate | 88 | 263 | |||||||||||||||||
Total | $ | 3,987 | $ | 13,247 | Total | $ | 2,120 | $ | 3,987 |
Fiscal Year Ended | ||||||||||||||
August 26, 2020 | August 28, 2019 | |||||||||||||
(In thousands) | ||||||||||||||
Loss before income taxes and discontinued operations: | ||||||||||||||
Segment level profit | $ | 14,205 | $ | 36,276 | ||||||||||
Opening costs | (14) | (56) | ||||||||||||
Depreciation and amortization | (11,514) | (13,998) | ||||||||||||
Selling, general and administrative expenses | (24,571) | (34,685) | ||||||||||||
Other charges | (3,401) | (3,764) | ||||||||||||
Net provision for asset impairments and restaurant closings | (10,193) | (5,603) | ||||||||||||
Net gain on disposition of property and equipment | 11,557 | 12,832 | ||||||||||||
Interest income | 60 | 30 | ||||||||||||
Interest expense | (6,388) | (5,977) | ||||||||||||
Other income, net | 1,195 | 195 | ||||||||||||
Total | $ | (29,064) | $ | (14,750) |
Fiscal Year Ended | ||||||||
August 28, 2019 | August 29, 2018 | |||||||
(In thousands) | ||||||||
Loss before income taxes and discontinued operations: | ||||||||
Segment level profit | $ | 36,276 | $ | 38,106 | ||||
Opening costs | (56 | ) | (554 | ) | ||||
Depreciation and amortization | (13,998 | ) | (17,453 | ) | ||||
Selling, general and administrative expenses | (34,179 | ) | (38,725 | ) | ||||
Other charges | (4,270 | ) | — | |||||
Provision for asset impairments and restaurant closings | (5,603 | ) | (8,917 | ) | ||||
Net gain on disposition of property and equipment | 12,832 | 5,357 | ||||||
Interest income | 30 | 12 | ||||||
Interest expense | (5,977 | ) | (3,348 | ) | ||||
Other income, net | 195 | 298 | ||||||
Total | $ | (14,750 | ) | $ | (25,224 | ) |
Fair Value Measurement Using | |||||||||||||||||
Fiscal Year Ended August 29, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Valuation Method | |||||||||||||
Recurring Fair Value - Assets | (In thousands) | ||||||||||||||||
Continuing Operations: | |||||||||||||||||
Derivative - Interest Rate Swap(1) | $ | 435 | $ | — | $ | 435 | $ | — | Discounted Cash Flow |
Fair Value Measurement Using | |||||||||||||||||
Fiscal Year Ended August 29, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Valuation Method | |||||||||||||
Recurring Fair Value - Liabilities | (In thousands) | ||||||||||||||||
Continuing Operations: | |||||||||||||||||
TSR Performance Based Incentive Plan(1) | $ | 21 | $ | — | $ | 21 | $ | — | Monte Carlo Approach |
Fair Value Measurement Using | Fair Value Measurement Using | |||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year Ended August 28, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Impairments (4) | Fiscal Year Ended August 26, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Impairments (5) | |||||||||||||||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements | (In thousands) | Nonrecurring Fair Value Measurements | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Continuing Operations: | Continuing Operations: | |||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment related to Company-owned restaurants(1) | $ | 1,220 | $ | — | $ | — | $ | 1,220 | $ | (5,627 | ) | Property and equipment related to Company-owned restaurants(1) | $ | 481 | $ | 0 | $ | 0 | $ | 481 | $ | (4,831) | ||||||||||||||||||||||||||
Goodwill(2) | 514 | — | — | $ | 514 | $ | (41 | ) | Goodwill(2) | 0 | 0 | 0 | 0 | (320) | ||||||||||||||||||||||||||||||||||
Property held for sale(3) | 8,030 | — | — | 8,030 | (124 | ) | Property held for sale(3) | 3,362 | 0 | 0 | 3,362 | (14) | ||||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets(4) | Operating lease right-of-use assets(4) | 272 | 0 | 0 | 272 | (5,380) | ||||||||||||||||||||||||||||||||||||||||||
Total Nonrecurring Fair Value Measurements | $ | 9,764 | $ | — | $ | — | $ | 9,764 | $ | (5,792 | ) | Total Nonrecurring Fair Value Measurements | $ | 4,115 | $ | 0 | $ | 0 | $ | 4,115 | $ | (10,545) |
Fair Value Measurement Using | |||||||||||||||||||||||||||||
Fiscal Year Ended August 28, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Impairments(4) | |||||||||||||||||||||||||
Nonrecurring Fair Value Measurements | (In thousands) | ||||||||||||||||||||||||||||
Continuing Operations: | |||||||||||||||||||||||||||||
Property and equipment related to Company-owned restaurants(1) | $ | 1,220 | $ | 0 | $ | 0 | $ | 1,220 | $ | (5,627) | |||||||||||||||||||
Goodwill(2) | 514 | 0 | 0 | 514 | (41) | ||||||||||||||||||||||||
Property held for sale(3) | 8,030 | 0 | 0 | 8,030 | (124) | ||||||||||||||||||||||||
Total Nonrecurring Fair Value Measurements | $ | 9,764 | $ | 0 | $ | 0 | $ | 9,764 | $ | (5,792) | |||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||
Fiscal Year Ended August 29, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Impairments(4) | |||||||||||||||
Nonrecurring Fair Value Measurements | (In thousands) | ||||||||||||||||||
Continuing Operations: | |||||||||||||||||||
Property and equipment related to Company-owned restaurants(1) | $ | 1,519 | $ | — | $ | — | $ | 1,519 | $ | (4,052 | ) | ||||||||
Goodwill(2) | — | — | — | — | (513 | ) | |||||||||||||
Property held for sale(3) | 5,132 | — | — | 5,132 | (3,062 | ) | |||||||||||||
Total Nonrecurring Fair Value Measurements | $ | 6,651 | $ | — | $ | — | $ | 6,651 | $ | (7,627 | ) |
August 28, 2019 | August 29, 2018 | August 26, 2020 | August 28, 2019 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Trade and other receivables | $ | 6,326 | $ | 6,697 | Trade and other receivables | $ | 4,037 | $ | 6,326 | |||||||||
Franchise royalties and marketing and advertising receivables | 1,040 | 764 | Franchise royalties and marketing and advertising receivables | 957 | 1,040 | |||||||||||||
Unbilled revenue | 1,913 | 1,557 | Unbilled revenue | 1,677 | 1,913 | |||||||||||||
Allowance for doubtful accounts | (427 | ) | (231 | ) | Allowance for doubtful accounts | (579) | (427) | |||||||||||
Total Trade accounts and other receivables, net | $ | 8,852 | $ | 8,787 | Total Trade accounts and other receivables, net | $ | 6,092 | $ | 8,852 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||
August 28, 2019 | August 29, 2018 | August 26, 2020 | August 28, 2019 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||
Beginning balance | $ | 231 | $ | 275 | Beginning balance | $ | 427 | $ | 231 | |||||||||||||
Provisions for doubtful accounts, net of reversals | 196 | 464 | Provisions for doubtful accounts, net of reversals | 1,624 | 196 | |||||||||||||||||
Write-offs(1) | — | (508 | ) | Write-offs(1) | (1,472) | 0 | ||||||||||||||||
Ending balance | $ | 427 | $ | 231 | Ending balance | $ | 579 | $ | 427 |
August 28, 2019 | August 29, 2018 | August 26, 2020 | August 28, 2019 | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||
Deferred income tax assets: | Deferred income tax assets: | |||||||||||||||||
Workers’ compensation, employee injury, and general liability claims | $ | 395 | $ | 507 | Workers’ compensation, employee injury, and general liability claims | $ | 562 | $ | 395 | |||||||||
Deferred compensation | 193 | 280 | Deferred compensation | 162 | 193 | |||||||||||||
Net operating losses | 5,541 | 4,401 | Net operating losses | 9,916 | 5,541 | |||||||||||||
General business and foreign tax credits | 12,529 | 12,105 | General business and foreign tax credits | 12,105 | 12,529 | |||||||||||||
Depreciation, amortization and impairments | 8,561 | 6,796 | Depreciation, amortization and impairments | 3,125 | 8,561 | |||||||||||||
Interest expense | Interest expense | 1,886 | 0 | |||||||||||||||
Lease liabilities | Lease liabilities | 4,731 | — | |||||||||||||||
Straight-line rent, dining cards, accruals, and other | 2,594 | 2,917 | Straight-line rent, dining cards, accruals, and other | 1,413 | 2,594 | |||||||||||||
Subtotal | 29,813 | 27,006 | Subtotal | 33,900 | 29,813 | |||||||||||||
Valuation allowance | (28,865 | ) | (25,873 | ) | Valuation allowance | (29,478) | (28,865) | |||||||||||
Total deferred income tax assets | 948 | 1,133 | Total deferred income tax assets | 4,422 | 948 | |||||||||||||
Deferred income tax liabilities: | Deferred income tax liabilities: | |||||||||||||||||
Property taxes and other | 948 | 1,133 | Property taxes and other | 769 | 948 | |||||||||||||
Lease assets | Lease assets | 3,653 | — | |||||||||||||||
Total deferred income tax liabilities | 948 | 1,133 | Total deferred income tax liabilities | 4,422 | 948 | |||||||||||||
Net deferred income tax asset | $ | — | $ | — | Net deferred income tax asset | $ | 0 | $ | 0 |
August 26, 2020 | August 28, 2019 | ||||||||||
(In thousands) | |||||||||||
Current federal and state income tax expense | $ | 327 | $ | 418 | |||||||
Current foreign income tax expense | 30 | 51 | |||||||||
Provision for income taxes | $ | 357 | $ | 469 |
August 28, 2019 | August 29, 2018 | ||||||
(In thousands) | |||||||
Current federal and state income tax expense | $ | 418 | $ | 405 | |||
Current foreign income tax expense | 51 | 71 | |||||
Deferred income tax expense | — | 7,254 | |||||
Provision for income taxes | $ | 469 | $ | 7,730 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||||||||||
August 28, 2019 | August 29, 2018 | August 26, 2020 | August 28, 2019 | |||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||
(In thousands and as a percent of pretax loss from continuing operations) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||
Income tax benefit from continuing operations at the federal rate | $ | (3,098 | ) | 21.0 | % | $ | (6,405 | ) | 25.4 | % | Income tax benefit from continuing operations at the federal rate | $ | (6,104) | 21.0 | % | $ | (3,098) | 21.0 | % | |||||||||||||||||
Permanent and other differences: | Permanent and other differences: | |||||||||||||||||||||||||||||||||||
Federal jobs tax credits (wage deductions) | 89 | (0.6 | ) | 129 | (0.5 | ) | Federal jobs tax credits (wage deductions) | 0 | 0 | 89 | (0.6) | |||||||||||||||||||||||||
Stock options and restricted stock | 19 | (0.1 | ) | 67 | (0.3 | ) | Stock options and restricted stock | 17 | (0.1) | 19 | (0.1) | |||||||||||||||||||||||||
Other permanent differences | 31 | (0.2 | ) | 41 | (0.2 | ) | Other permanent differences | 3 | 0 | 31 | (0.2) | |||||||||||||||||||||||||
State income tax, net of federal benefit | 273 | (1.9 | ) | 145 | (0.6 | ) | State income tax, net of federal benefit | 189 | (0.7) | 273 | (1.9) | |||||||||||||||||||||||||
General Business Tax Credits | (422 | ) | 2.9 | (506 | ) | 2.0 | General Business Tax Credits | 0 | 0 | (422) | 2.9 | |||||||||||||||||||||||||
Impact of U.S. Tax Reform | — | — | 3,167 | (12.6 | ) | |||||||||||||||||||||||||||||||
Other | 117 | (0.8 | ) | 487 | (1.8 | ) | Other | 580 | (1.9) | 117 | (0.8) | |||||||||||||||||||||||||
Change in valuation allowance | 3,460 | (23.5 | ) | 10,605 | (42.0 | ) | Change in valuation allowance | 5,672 | (19.5) | 3,460 | (23.5) | |||||||||||||||||||||||||
Provision for income taxes from continuing operations | $ | 469 | (3.2 | )% | $ | 7,730 | (30.6 | )% | Provision for income taxes from continuing operations | $ | 357 | (1.2) | % | $ | 469 | (3.2) | % |
Balance as of August 30, 2017 | $ | 25 | |
Decrease based on prior year tax positions | — | ||
Interest Expense | — | ||
Balance as of August 29, 2018 | $ | 25 | |
Decrease based on prior year tax positions | — | ||
Interest Expense | — | ||
Balance as of August 28, 2019 | $ | 25 |
Balance as of August 29, 2018 | $ | 25 | |||
Decrease based on prior year tax positions | 0 | ||||
Interest Expense | 0 | ||||
Balance as of August 28, 2019 | $ | 25 | |||
Decrease based on prior year tax positions | 0 | ||||
Interest Expense | 0 | ||||
Balance as of August 26, 2020 | $ | 25 |
August 28, 2019 | August 29, 2018 | Estimated Useful Lives (years) | August 26, 2020 | August 28, 2019 | Estimated Useful Lives (years) | |||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||
Land | $ | 45,845 | $ | 46,817 | — | Land | $ | 42,572 | $ | 45,845 | — | |||||||||||||||||||||||||||||||
Restaurant equipment and furnishings | 67,015 | 69,678 | 3 | to | 15 | Restaurant equipment and furnishings | 60,685 | 67,015 | 3 | to | 15 | |||||||||||||||||||||||||||||||
Buildings | 126,957 | 131,557 | 20 | to | 33 | Buildings | 114,909 | 126,957 | 20 | to | 33 | |||||||||||||||||||||||||||||||
Leasehold and leasehold improvements | 22,098 | 27,172 | Lesser of lease term or estimated useful life | Leasehold and leasehold improvements | 20,429 | 22,098 | Lesser of lease term or estimated useful life | |||||||||||||||||||||||||||||||||||
Office furniture and equipment | 3,364 | 3,596 | 3 | to | 10 | Office furniture and equipment | 3,178 | 3,364 | 3 | to | 10 | |||||||||||||||||||||||||||||||
265,279 | 278,820 | |||||||||||||||||||||||||||||||||||||||||
241,773 | 265,279 | |||||||||||||||||||||||||||||||||||||||||
Less accumulated depreciation and amortization | (143,536 | ) | (140,533 | ) | Less accumulated depreciation and amortization | (141,174) | (143,536) | |||||||||||||||||||||||||||||||||||
Property and equipment, net | $ | 121,743 | $ | 138,287 | Property and equipment, net | $ | 100,599 | $ | 121,743 | |||||||||||||||||||||||||||||||||
Intangible assets, net | $ | 16,781 | $ | 18,179 | 15 | to | 21 | Intangible assets, net | $ | 15,343 | $ | 16,781 | 15 | to | 21 | |||||||||||||||||||||||||||
Goodwill | $ | 514 | $ | 555 | Goodwill | $ | 195 | $ | 514 |
August 26, 2020 | August 28, 2019 | ||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||||||||||||||||||||
Fuddruckers trade name and franchise agreements | $ | 29,496 | $ | (14,189) | $ | 15,307 | $ | 29,486 | $ | (12,752) | $ | 16,734 | |||||||||||||||||||||||
Cheeseburger in Paradise trade name and license agreements | 146 | (110) | 36 | 146 | (99) | 47 | |||||||||||||||||||||||||||||
Intangible assets, net | $ | 29,642 | $ | (14,299) | $ | 15,343 | $ | 29,632 | $ | (12,851) | $ | 16,781 |
August 28, 2019 | August 29, 2018 | ||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||||||||
Fuddruckers trade name and franchise agreements | $ | 29,486 | $ | (12,752 | ) | $ | 16,734 | $ | 29,701 | $ | (11,653 | ) | $ | 18,048 | |||||||||
Cheeseburger in Paradise trade name and license agreements | $ | 146 | $ | (99 | ) | $ | 47 | $ | 206 | $ | (75 | ) | $ | 131 | |||||||||
Intangible assets, net | $ | 29,632 | $ | (12,851 | ) | $ | 16,781 | $ | 29,907 | $ | (11,728 | ) | $ | 18,179 |
August 26, 2020 | August 28, 2019 | ||||||||||
(In thousands) | |||||||||||
Salaries, compensated absences, incentives, and bonuses | $ | 1,506 | $ | 4,318 | |||||||
Operating expenses | 831 | 925 | |||||||||
Unredeemed gift and dining cards | 4,084 | 3,862 | |||||||||
Taxes, other than income | 7,265 | 9,056 | |||||||||
Accrued claims and insurance | 1,753 | 1,796 | |||||||||
Income taxes, legal and other(1) | 4,130 | 4,518 | |||||||||
Total | $ | 19,569 | $ | 24,475 |
August 28, 2019 | August 29, 2018 | ||||||
(In thousands) | |||||||
Salaries, compensated absences, incentives, and bonuses | $ | 4,318 | $ | 6,073 | |||
Operating expenses | 925 | 1,068 | |||||
Unredeemed gift and dining cards | 3,862 | 7,213 | |||||
Taxes, other than income | 9,056 | 9,247 | |||||
Accrued claims and insurance | 1,796 | 2,958 | |||||
Income taxes, legal and other(1) | 4,518 | 5,195 | |||||
Total | $ | 24,475 | $ | 31,754 |
August 26, 2020 | August 28, 2019 | ||||||||||
(In thousands) | |||||||||||
Workers’ compensation and general liability insurance reserve | $ | 754 | $ | 736 | |||||||
Vehicle loans payable | 30 | 73 | |||||||||
Deferred rent and landlord reimbursement | 774 | 1,726 | |||||||||
Unfavorable lease and deferred straight line rent liability | — | 1,984 | |||||||||
Deferred compensation | 24 | 80 | |||||||||
Deferred gain on sale / leaseback transactions | — | 1,969 | |||||||||
Other | 48 | 9 | |||||||||
Total | $ | 1,630 | $ | 6,577 |
August 28, 2019 | August 29, 2018 | ||||||
(In thousands) | |||||||
Workers’ compensation and general liability insurance reserve | $ | 736 | $ | 1,002 | |||
Capital leases | 73 | 137 | |||||
Deferred rent and unfavorable leases | 3,710 | 4,380 | |||||
Deferred compensation | 80 | 106 | |||||
Deferred gain on sale / leaseback transactions | 1,969 | — | |||||
Other | 9 | 156 | |||||
Total | $ | 6,577 | $ | 5,781 |
August 26, 2020 | August 28, 2019 | ||||||||||
Long-Term Debt | |||||||||||
2018 Credit Agreement - Revolver | $ | 10,000 | $ | 5,300 | |||||||
2018 Credit Agreement - Term Loan | 36,583 | 43,399 | |||||||||
Total credit facility debt | 46,583 | 48,699 | |||||||||
2020 PPP Loan | 10,000 | — | |||||||||
Total Long-Term Debt | 56,583 | 48,699 | |||||||||
Less: | |||||||||||
Unamortized debt issue costs | (1,410) | (1,887) | |||||||||
Unamortized debt discount | (1,055) | (1,373) | |||||||||
Total long-term debt, less unamortized debt issuance costs | 54,118 | 45,439 | |||||||||
Current portion of credit facility debt | 0 | 0 | |||||||||
Long-term debt, less current portion | $ | 54,118 | $ | 45,439 |
August 28, 2019 | August 29, 2018 | ||||||
(In thousands) | |||||||
Long-Term Debt | |||||||
2016 Credit Agreement - Term Loan | — | $ | 19,506 | ||||
2016 Credit Agreement - Revolver | — | 20,000 | |||||
2018 Credit Agreement - Revolver | 5,300 | — | |||||
2018 Credit Agreement - Term Loan | 43,399 | — | |||||
Total credit facility debt | 48,699 | 39,506 | |||||
Less: | |||||||
Unamortized debt issue costs | (1,887 | ) | (168 | ) | |||
Unamortized debt discount | (1,373 | ) | — | ||||
Total credit facility debt, less unamortized discount and issuance costs | 45,439 | 39,338 | |||||
Current portion of credit facility debt | — | 39,338 | |||||
Total Credit facility debt, less current portion | $ | 45,439 | $ | — |
Fiscal Year Ended | ||||||||||||||||||||||
Fiscal Year Ended | August 26, 2020 | August 28, 2019 | ||||||||||||||||||||
August 28, 2019 | August 29, 2018 | (In thousands, except per share data) | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||
Provision for asset impairments and restaurant closings | $ | 5,603 | $ | 8,917 | ||||||||||||||||||
Net provision for asset impairments and restaurant closings | Net provision for asset impairments and restaurant closings | $ | 10,193 | $ | 5,603 | |||||||||||||||||
Net gain on disposition of property and equipment | (12,832 | ) | (5,357 | ) | Net gain on disposition of property and equipment | (11,557) | (12,832) | |||||||||||||||
Total | $ | (7,229 | ) | $ | 3,560 | Total | $ | (1,364) | $ | (7,229) | ||||||||||||
Effect on EPS: | Effect on EPS: | |||||||||||||||||||||
Basic | $ | 0.24 | $ | (0.12 | ) | Basic | $ | 0.05 | $ | 0.24 | ||||||||||||
Assuming dilution | $ | 0.24 | $ | (0.12 | ) | Assuming dilution | $ | 0.05 | $ | 0.24 |
August 26, 2020 | August 28, 2019 | ||||||||||
(In thousands) | |||||||||||
Property and equipment | $ | 1,715 | $ | 1,813 | |||||||
Assets related to discontinued operations—non-current | $ | 1,715 | $ | 1,813 | |||||||
Accrued expenses and other liabilities | 17 | 14 | |||||||||
Liabilities related to discontinued operations—current | $ | 17 | $ | 14 | |||||||
August 28, 2019 | August 29, 2018 | ||||||
(In thousands) | |||||||
Property and equipment | $ | 1,813 | $ | 1,813 | |||
Deferred tax assets | — | — | |||||
Assets related to discontinued operations—non-current | $ | 1,813 | $ | 1,813 | |||
Deferred income taxes | $ | — | $ | — | |||
Accrued expenses and other liabilities | 14 | 14 | |||||
Liabilities related to discontinued operations—current | $ | 14 | $ | 14 | |||
Other liabilities | $ | — | $ | 16 | |||
Liabilities related to discontinued operations—non-current | $ | — | $ | 16 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||
August 28, 2019 | August 29, 2018 | August 26, 2020 | August 28, 2019 | |||||||||||||||||||
(In thousands, except locations) | (In thousands, except locations) | |||||||||||||||||||||
Sales | $ | — | $ | — | Sales | $ | 0 | $ | 0 | |||||||||||||
Pretax loss | $ | (7 | ) | $ | (80 | ) | Pretax loss | $ | (29) | $ | (7) | |||||||||||
Income tax benefit on discontinued operations | $ | — | $ | (534 | ) | Income tax benefit on discontinued operations | $ | 0 | $ | 0 | ||||||||||||
Loss on discontinued operations | $ | (7 | ) | $ | (614 | ) | Loss on discontinued operations | $ | (29) | $ | (7) | |||||||||||
Discontinued locations closed during the period | — | — | Discontinued locations closed during the period | 0 | 0 |
Fiscal Year Ended | ||||||||
August 28, 2019 | August 29, 2018 | |||||||
(In thousands, except per share data) | ||||||||
Discontinued operating losses | $ | (7 | ) | $ | (21 | ) | ||
Impairments | — | (59 | ) | |||||
Gains | — | — | ||||||
Net loss | $ | (7 | ) | $ | (80 | ) | ||
Income tax benefit (expense) from discontinued operations | — | (534 | ) | |||||
Loss from discontinued operations, net of income taxes | $ | (7 | ) | $ | (614 | ) | ||
Effect on EPS from discontinued operations—decrease—basic | $ | 0.00 | $ | (0.02 | ) |
Fiscal Year Ended | ||||||||||||||
August 26, 2020 | August 28, 2019 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||
Discontinued operating losses | $ | (29) | $ | (7) | ||||||||||
Net loss | $ | (29) | $ | (7) | ||||||||||
Income tax benefit (expense) from discontinued operations | 0 | 0 | ||||||||||||
Loss from discontinued operations, net of income taxes | $ | (29) | $ | (7) | ||||||||||
Effect on EPS from discontinued operations—decrease—basic | $ | 0.00 | $ | 0.00 |
Balance as of August 29, 2018 | $ | 19,469 | |||
Disposals | (6,036) | ||||
Net transfers to property held for sale | 3,055 | ||||
Balance as of August 28, 2019 | $ | 16,488 | |||
Disposals | (9,590) | ||||
Net transfers to (from) property held for sale | 4,351 | ||||
Balance as of August 26, 2020 | $ | 11,249 |
Balance as of August 30, 2017 | $ | 3,372 | |
Disposals | (7,916 | ) | |
Net transfers to property held for sale | 27,075 | ||
Adjustment to fair value | (3,062 | ) | |
Balance as of August 29, 2018 | $ | 19,469 | |
Disposals | (6,036 | ) | |
Net transfers to property held for sale | 3,055 | ||
Adjustment to fair value | — | ||
Balance as of August 28, 2019 | $ | 16,488 |
August 26, 2020 | August 28, 2019 | |||||||
Short-term lease liability | $ | 365 | $ | — | ||||
Long-term lease liability | 2,348 | — | ||||||
Accrued expenses and other liabilities | 2,088 | 1,441 | ||||||
Total | $ | 4,801 | $ | 1,441 |
Fiscal Year Ending: | (In thousands) | ||
August 26, 2020 | $ | 8,841 | |
August 25, 2021 | 7,155 | ||
August 31, 2022 | 5,643 | ||
August 30, 2023 | 4,410 | ||
August 28, 2024 | 3,768 | ||
Thereafter | 10,312 | ||
Total minimum lease payments | $ | 40,129 |
Year Ended | ||||||||
August 28, 2019 | August 29, 2018 | |||||||
(In thousands, except percentages) | ||||||||
Minimum rent-facilities | $ | 9,218 | $ | 10,584 | ||||
Contingent rentals | 75 | 77 | ||||||
Minimum rent-equipment | 761 | 801 | ||||||
Total rent expense (including amounts in discontinued operations) | $ | 10,054 | $ | 11,462 |
Shares Under Fixed Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(Years) | (In thousands) | ||||||||||||
Outstanding at August 30, 2017 | 1,345,916 | $ | 4.76 | 6.6 | $ | 178 | |||||||
Granted | 449,410 | 2.82 | — | — | |||||||||
Cancelled | — | 0.00 | — | — | |||||||||
Forfeited | (97,111 | ) | 4.80 | — | — | ||||||||
Expired | (44,801 | ) | 7.89 | — | — | ||||||||
Outstanding at August 29, 2018 | 1,653,414 | $ | 4.10 | 6.4 | $ | — | |||||||
Granted | — | 0.00 | — | — | |||||||||
Forfeited | (178,700 | ) | 3.68 | — | — | ||||||||
Expired | (87,302 | ) | 5.54 | — | — | ||||||||
Outstanding at August 28, 2019 | 1,387,412 | $ | 4.06 | 5.7 | $ | — | |||||||
Exercisable at August 28, 2019 | 1,217,957 | $ | 4.19 | 5.4 | $ | — |
Shares Under Fixed Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||||||||
(Per share) | (In Years) | (In thousands) | |||||||||||||||||||||
Outstanding at August 29, 2018 | 1,653,414 | $ | 4.10 | 6.4 | $ | 0 | |||||||||||||||||
Forfeited / Cancelled | (178,700) | 3.68 | — | — | |||||||||||||||||||
Expired | (87,302) | 5.54 | — | — | |||||||||||||||||||
Outstanding at August 28, 2019 | 1,387,412 | $ | 4.06 | 5.7 | $ | 0 | |||||||||||||||||
Forfeited / Cancelled | (366,911) | 4.31 | — | — | |||||||||||||||||||
Expired | (160,000) | 3.44 | — | — | |||||||||||||||||||
Outstanding at August 26, 2020 | 860,501 | $ | 4.07 | 5.0 | $ | 0 | |||||||||||||||||
Exercisable at August 26, 2020 | 824,287 | $ | 4.12 | 4.9 | $ | 0 |
Restricted Stock Units | Weighted Average Fair Value | Weighted- Average Remaining Contractual Term | ||||||||||||||||||||||||
Restricted Stock Units | Weighted Average Fair Value | Weighted- Average Remaining Contractual Term | (Per share) | (In years) | ||||||||||||||||||||||
(Per share) | (In years) | |||||||||||||||||||||||||
Unvested at August 30, 2017 | 404,364 | $ | 5.23 | 1.9 | ||||||||||||||||||||||
Granted | 244,748 | 2.83 | — | |||||||||||||||||||||||
Vested | (99,495 | ) | 4.42 | — | ||||||||||||||||||||||
Forfeited | (32,326 | ) | 3.87 | — | ||||||||||||||||||||||
Unvested at August 29, 2018 | 517,291 | $ | 3.79 | 1.8 | Unvested at August 29, 2018 | 517,291 | $ | 3.79 | 1.8 | |||||||||||||||||
Granted | 4,410 | 1.15 | — | Granted | 4,410 | 1.15 | — | |||||||||||||||||||
Vested | (153,757 | ) | 4.66 | — | Vested | (153,757) | 4.66 | — | ||||||||||||||||||
Forfeited | (93,935 | ) | 3.41 | — | Forfeited | (93,935) | 3.41 | — | ||||||||||||||||||
Unvested at August 28, 2019 | 274,009 | $ | 3.39 | 1.2 | Unvested at August 28, 2019 | 274,009 | $ | 3.39 | 1.2 | |||||||||||||||||
Granted | Granted | 65,236 | 2.27 | — | ||||||||||||||||||||||
Vested | Vested | (152,139) | 3.96 | — | ||||||||||||||||||||||
Forfeited | Forfeited | (13,298) | 2.82 | — | ||||||||||||||||||||||
Unvested at August 26, 2020 | Unvested at August 26, 2020 | 173,808 | $ | 2.57 | 2.0 |
Units | Weighted Average Fair Value | ||||||||||
(Per share) | |||||||||||
Unvested at August 29,2018 | 373,294 | $ | 3.68 | ||||||||
Forfeited | (106,851) | 3.68 | |||||||||
Unvested at August 28, 2019 | 266,443 | $ | 3.68 | ||||||||
Forfeited | (266,443) | 3.68 | |||||||||
Unvested at August, 26, 2020 | 0 | $ | 0 | ||||||||
Units | Weighted Average Fair Value | |||||
(Per share) | ||||||
Unvested at August 30, 2017 | — | — | ||||
Granted | 561,177 | 3.33 | ||||
Vested | (187,883 | ) | 2.64 | |||
Forfeited | — | — | ||||
Unvested at August 29, 2018 | 373,294 | 3.68 | ||||
Granted | — | — | ||||
Vested | — | — | ||||
Forfeited | (106,851 | ) | 3.68 | |||
Unvested at August 28, 2019 | $ | 266,443 | 3.68 |
Fiscal Year Ended | ||||||||||||||
August 26, 2020 | August 28, 2019 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||
Numerator: | ||||||||||||||
Loss from continuing operations | $ | (29,421) | $ | (15,219) | ||||||||||
Net Loss | $ | (29,450) | $ | (15,226) | ||||||||||
Denominator: | ||||||||||||||
Denominator for basic earnings per share—weighted-average shares | 30,294 | 29,786 | ||||||||||||
Effect of potentially dilutive securities: | ||||||||||||||
Employee and non-employee stock options | 0 | 0 | ||||||||||||
Denominator for earnings per share assuming dilution | 30,294 | 29,786 | ||||||||||||
Loss from continuing operations: | ||||||||||||||
Basic | $ | (0.97) | $ | (0.51) | ||||||||||
Assuming dilution (a) | $ | (0.97) | $ | (0.51) | ||||||||||
Net loss per share: | ||||||||||||||
Basic | $ | (0.97) | $ | (0.51) | ||||||||||
Assuming dilution (a) | $ | (0.97) | $ | (0.51) |
Fiscal Year Ended | ||||||||
August 28, 2019 | August 29, 2018 | |||||||
(In thousands, except per share data) | ||||||||
Numerator: | ||||||||
Loss from continuing operations | $ | (15,219 | ) | $ | (32,954 | ) | ||
Net Loss | $ | (15,226 | ) | $ | (33,568 | ) | ||
Denominator: | ||||||||
Denominator for basic earnings per share—weighted-average shares | 29,786 | 29,901 | ||||||
Effect of potentially dilutive securities: | ||||||||
Employee and non-employee stock options | — | — | ||||||
Denominator for earnings per share assuming dilution | 29,786 | 29,901 | ||||||
Loss from continuing operations: | ||||||||
Basic | $ | (0.51 | ) | $ | (1.10 | ) | ||
Assuming dilution (a) | $ | (0.51 | ) | $ | (1.10 | ) | ||
Net loss per share: | ||||||||
Basic | $ | (0.51 | ) | $ | (1.12 | ) | ||
Assuming dilution (a) | $ | (0.51 | ) | $ | (1.12 | ) |
Quarter Ended | |||||||||||||||||||||||
August 26, 2020 | June 3, 2020 | March 11, 2020 | December 18, 2019 | ||||||||||||||||||||
(84 days) | (84 days) | (84 days) | (112 days) | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Restaurant sales | $ | 25,729 | $ | 13,832 | $ | 60,392 | $ | 83,558 | |||||||||||||||
Franchise revenue | 576 | 193 | 1,158 | 1,707 | |||||||||||||||||||
Culinary contract services | 5,012 | 4,963 | 6,998 | 9,774 | |||||||||||||||||||
Vending revenue | 0 | 6 | 14 | 110 | |||||||||||||||||||
Total sales | $ | 31,317 | $ | 18,994 | $ | 68,562 | $ | 95,149 | |||||||||||||||
Income (loss) from continuing operations | 7,674 | (24,972) | (3,796) | (8,327) | |||||||||||||||||||
Loss from discontinued operations | (5) | (7) | (6) | (11) | |||||||||||||||||||
Net income (loss) | $ | 7,669 | $ | (24,979) | $ | (3,802) | $ | (8,338) | |||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Basic | $ | 0.25 | $ | (0.82) | $ | (0.13) | $ | (0.28) | |||||||||||||||
Assuming dilution | $ | 0.25 | $ | (0.82) | $ | (0.13) | $ | (0.28) | |||||||||||||||
Costs and Expenses (as a percentage of restaurant sales) | |||||||||||||||||||||||
Cost of food | 27.7 | % | 29.2 | % | 28.8 | % | 28.7 | % | |||||||||||||||
Payroll and related costs | 32.8 | % | 39.7 | % | 39.4 | % | 38.5 | % | |||||||||||||||
Other operating expenses | 23.2 | % | 41.7 | % | 16.7 | % | 17.7 | % | |||||||||||||||
Occupancy costs | 10.3 | % | 26.7 | % | 6.3 | % | 6.0 | % |
Quarter Ended | |||||||||||||||||||||||
August 28, 2019 | June 5, 2019 | March 13, 2019 | December 19, 2018 | ||||||||||||||||||||
(84 days) | (84 days) | (84 days) | (112 days) | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Restaurant sales | $ | 62,434 | $ | 65,611 | $ | 65,370 | $ | 91,098 | |||||||||||||||
Franchise revenue | 1,563 | 1,482 | 1,421 | 2,224 | |||||||||||||||||||
Culinary contract services | 7,278 | 7,571 | 7,543 | 9,496 | |||||||||||||||||||
Vending revenue | 88 | 102 | 90 | 99 | |||||||||||||||||||
Total sales | $ | 71,363 | $ | 74,766 | 74,424 | $ | 102,917 | ||||||||||||||||
Income (loss) from continuing operations | (9,081) | (5,295) | 6,640 | (7,483) | |||||||||||||||||||
Income (loss) from discontinued operations | 12 | (6) | (8) | (5) | |||||||||||||||||||
Net income (loss) | $ | (9,069) | $ | (5,301) | $ | 6,632 | $ | (7,488) | |||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Basic | $ | (0.30) | $ | (0.18) | $ | 0.22 | $ | (0.25) | |||||||||||||||
Assuming dilution | $ | (0.30) | $ | (0.18) | $ | 0.22 | $ | (0.25) | |||||||||||||||
Costs and Expenses (as a percentage of restaurant sales) | |||||||||||||||||||||||
Cost of food | 28.5 | % | 28.2 | % | 27.8 | % | 27.5 | % | |||||||||||||||
Payroll and related costs | 38.8 | % | 38.1 | % | 37.8 | % | 37.9 | % | |||||||||||||||
Other operating expenses | 18.4 | % | 17.5 | % | 17.5 | % | 18.1 | % | |||||||||||||||
Occupancy costs | 6.5 | % | 6.1 | % | 6.4 | % | 6.4 | % |
Quarter Ended | |||||||||||||||
August 28, 2019 | June 6, 2019 | March 14, 2019 | December 20, 2018 | ||||||||||||
(84 days) | (84 days) | (84 days) | (112 days) | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Restaurant sales | $ | 62,434 | $ | 65,611 | $ | 65,370 | $ | 91,098 | |||||||
Franchise revenue | 1,563 | 1,482 | 1,421 | 2,224 | |||||||||||
Culinary contract services | 7,278 | 7,571 | 7,543 | 9,496 | |||||||||||
Vending revenue | 88 | 102 | 90 | 99 | |||||||||||
Total sales | $ | 71,363 | $ | 74,766 | $ | 74,424 | $ | 102,917 | |||||||
Loss from continuing operations | (9,081 | ) | (5,295 | ) | 6,640 | (7,483 | ) | ||||||||
Loss from discontinued operations | 12 | (6 | ) | (8 | ) | (5 | ) | ||||||||
Net loss | $ | (9,069 | ) | $ | (5,301 | ) | $ | 6,632 | $ | (7,488 | ) | ||||
Net loss per share: | |||||||||||||||
Basic | $ | (0.30 | ) | $ | (0.18 | ) | $ | 0.22 | $ | (0.25 | ) | ||||
Assuming dilution | $ | (0.30 | ) | $ | (0.18 | ) | $ | 0.22 | $ | (0.25 | ) | ||||
Costs and Expenses (as a percentage of restaurant sales) | |||||||||||||||
Cost of food | 28.5 | % | 28.2 | % | 27.8 | % | 27.5 | % | |||||||
Payroll and related costs | 38.8 | % | 38.1 | % | 37.8 | % | 37.9 | % | |||||||
Other operating expenses | 18.4 | % | 17.5 | % | 17.5 | % | 18.1 | % | |||||||
Occupancy costs | 6.5 | % | 6.1 | % | 6.4 | % | 6.4 | % |
Quarter Ended | |||||||||||||||
August 29, 2018 | June 6, 2018 | March 14, 2018 | December 20, 2017 | ||||||||||||
(91 days) | (84 days) | (84 days) | (112 days) | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Restaurant sales | $ | 75,782 | $ | 77,803 | $ | 74,351 | $ | 104,582 | |||||||
Franchise revenue | 1,633 | 1,444 | 1,401 | 1,887 | |||||||||||
Culinary contract services | 6,369 | 6,639 | 5,889 | 6,885 | |||||||||||
Vending revenue | 119 | 118 | 151 | 143 | |||||||||||
Total sales | $ | 83,903 | $ | 86,004 | 81,792 | $ | 113,497 | ||||||||
Loss from continuing operations | (1,858 | ) | (14,133 | ) | (11,461 | ) | (5,502 | ) | |||||||
Loss from discontinued operations | (6 | ) | (463 | ) | (110 | ) | (35 | ) | |||||||
Net loss | $ | (1,864 | ) | $ | (14,596 | ) | $ | (11,571 | ) | $ | (5,537 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.06 | ) | $ | (0.48 | ) | $ | (0.39 | ) | $ | (0.19 | ) | |||
Assuming dilution | $ | (0.06 | ) | $ | (0.48 | ) | $ | (0.39 | ) | $ | (0.19 | ) | |||
Costs and Expenses (as a percentage of restaurant sales) | |||||||||||||||
Cost of food | 27.8 | % | 28.6 | % | 28.5 | % | 28.5 | % | |||||||
Payroll and related costs | 37.5 | % | 37.8 | % | 38.3 | % | 36.5 | % | |||||||
Other operating expenses | 17.7 | % | 19.3 | % | 19.3 | % | 18.6 | % | |||||||
Occupancy costs | 6.4 | % | 5.9 | % | 6.3 | % | 6.0 | % |
GERALD W. BODZY, 69, is President of Bodzy Investment Partnership, Ltd. Mr. Bodzy has been a director of the Company since 2016 and is Chairman of the Board, Chair of the Nominating and Corporate Governance Committee, a member of the Compensation Committee, a member of the Finance and Audit Committee and Co-Chair of the Special Committee. He is also a director of the Boys & Girls Club of Greater Houston, a national trustee of National Jewish Health, Denver, Colorado, where he has been a member of the investment committee since 2000, and a member of Phi Beta Kappa. From 2004 to 2020, Mr. Bodzy was President and owner of Showcase Custom Vinyl Windows and Doors. From 1990 to 2000, Mr. Bodzy was a Managing Director of Stephens, Inc. where he headed the investment banking firm’s Houston office. From 1979 to 1990, he was employed by Smith Barney, Inc. in New York (as Managing Director from 1986). From 1976 to 1990, he worked in the real estate group at General Crude Oil Company in Houston. Mr. Bodzy is a former director of Oshman’s Sporting Goods, Benchmark Electronics, and Republic Bankshares of Texas. He earned a B.A. Degree in Economics from the University of Texas in 1973 and a J.D. Degree from the University of Texas School of Law in 1976. Qualifications, Experience, Key Attributes and Skills: Mr. Bodzy has over 40 years of experience in investment banking, investments, and business management, including 11 years at Smith Barney and 10 years at Stephens, Inc., in both firms culminating in service as Managing Director, representing clients in equity and debt offerings and mergers and acquisitions. Most recently, he has served 16 years at Showcase Custom Vinyl Windows and Doors as President and owner. Mr. Bodzy also has significant board experience from his service on boards of banks, retail, and manufacturing companies, where he has also served on audit, compensation, and nominating committees. | |||||
TWILA DAY, 58, is currently the Vice President and Chief Information Officer for Huntsman Corporation as of November 2018. As CIO, she is accountable for the global technology investments and operations, leading strategic planning, and ensuring compliance with the company covenants and regulatory controls including SOX, cyber security, and Global Data Protection Regulation (GDPR). Prior to Huntsman, from August 2013 until October 2018, Ms. Day was Managing Director, National Practice Lead for Technology Services, and a member of the Executive Technology Advisor Group for Alvarez and Marsal. While at Alvarez and Marsal, she advised companies in the national restaurant, energy, pharmaceutical, construction, and engineering/manufacturing sectors providing them with objective and independent advice on technology strategies, process improvement, IT initiatives, post-merger integration and security risk management. In 1992, Ms. Day began working for Sysco Corporation as a programmer/analyst and advanced through various Information Technology positions where she ultimately became Chief Information Officer in January 2006 and held that role through June 2013. While at Sysco, she focused on driving strategic change initiatives that intersected business transformation with information technology solutions. Ms. Day also served as a member of Sysco's enterprise risk management executive committee as the risk owner for data protection, cyber security, and information technology availability. Ms. Day graduated from Our Lady of Lake University in 1989 with a Bachelor of Arts degree in Business Management. Ms. Day serves as a member of the Finance and Audit Committee, the Compensation Committee and the Special Committee. Qualifications, Experience, Key Attributes, and Skills: Ms. Day has more than 30 years of experience connecting Information Technology with the business. With her broad technology expertise, she has served as a trusted advisor to executives translating technology into "plain English" and helping them ensure their technology investments create value and competitive advantage. | |||||
JILL GRIFFIN, 65, has advised corporations, both domestically and abroad, on customer loyalty and leadership strategies as Principal of Austin-based, Jill Griffin Executive Learning since 1988. She is Forbes.com "Careers" columnist, a Fox News contributor and is a frequent guest on radio programs including Wharton Women @ Work. The author of six books, her latest is Follow These Leaders, a compilation of "Best Business and Life advice" from people from all walks of life. Ms. Griffin has been an Independent Director since 2003 and currently serves as Vice-Chair of the Board. She also serves as a member of the Compensation Committee and the Nominating and Corporate Governance Committee. She began her career at RJR Tobacco company where she ultimately served as Senior Brand Manager of Winston, the corporations largest brand. Ms. Griffin is a magna cum laude graduate, Distinguished alumna recipient, and commencement speaker and past Trustee, of the University of South Carolina Moore School of Business from which she holds Bachelor of Science and MBA degrees. She has served on the Marketing faculty at the University of Texas where her books have been adopted as text books for MBA classes. Ms. Griffin is a member of the Advisory Board of the Austin Chapter of National Association of Corporate Board Directors, Advisory Board member of Broadway Bank, and past Chairwoman of Visit Austin.org. Qualifications, Experience, Key Attributes, and Skills: Ms. Griffin has more than 35 years’ experience, has published six books, and is widely regarded as an expert on the topics of brand management, brand loyalty, and customer experience. Furthermore, she brings leadership and management experience from her distinguished career at RJR/Nabisco, culminating in Senior Brand Manager for the corporation’s largest brand, and her Austin-based, Jill Griffin Executive Learning, which she founded and operates. | |||||
FRANK MARKANTONIS, 72, is an attorney with over forty years of legal experience representing clients in the restaurant industry, with a concentration in real estate development, litigation defense, insurance procurement and coverage, immigration, and employment law. From 1992 until his retirement in 2020, he served as General Counsel of Pappas Restaurants, Inc., a Houston based restaurant group. He is a graduate of the University of Texas at Austin (1970) and the University of Houston Law Center (1973). Mr. Markantonis is admitted to practice in the following jurisdictions and before the following courts: The United States Supreme Court, District of Columbia Court of Appeals, United States Court of Appeals for the Fifth Circuit, The United States District Court for the Southern District of Texas, and the State of Texas. Mr. Markantonis is a member of the State Bar of Texas, District of Columbia Bar, and is a Fellow in the Houston Bar Foundation. He has been a director of the Company since January 2002. Qualifications, Experience, Key Attributes, and Skills: Mr. Markantonis brings extensive state and federal legal experience from his more than 45 years as a practicing attorney representing clients in the restaurant industry. He has represented his clients in all areas of legal practice affecting the operations of restaurants and hospitality clients, including real estate development, litigation defense, insurance procurement and coverage, immigration and employment law, and business transactions. | |||||
JOE C. McKINNEY, 74, had been Vice-Chairman of Broadway National Bank, a locally owned and operated San Antonio-based bank, since October 2002 until his retirement in March 2020. He formerly served as Chairman of the board of directors and Chief Executive Officer of JPMorgan Chase Bank-San Antonio from November 1987 until his retirement in March 2002. Mr. McKinney graduated from Harvard University in 1969 with a Bachelor of Arts in Economics, and he graduated from the Wharton School of the University of Pennsylvania in 1973 with a Master of Business Administration in Finance. Mr. McKinney has been an independent director of the Company since January 2003 and is Chair of the Finance and Audit Committee, a member of the Nominating and Corporate Governance Committee, a member of the Compensation Committee, and a member of the Special Committee. He is a former director of Broadway National Bank; Broadway Bancshares, Inc.; New York Liquidating LLC (NYRT); USAA Real Estate Company; US Industrial REIT I, II, and III; US Global Investors Funds; and Prodigy Communications Corporation. Qualifications, Experience, Key Attributes, and Skills: Mr. McKinney has over 45 years of experience in banking, finance, and management from his distinguished career in banking, culminating in a tenure of over 14 years as Chairman of the Board and Chief Executive Officer of JPMorgan Chase Bank-San Antonio and 17.5 years as Vice-Chairman of Broadway National Bank. He further brings significant board experience from his service on over six boards of banks, investment funds, and corporations. | |||||
GASPER MIR, III, 74, since his retirement as a principal owner of the professional services firm MFR Group, Inc. (formerly known as MFR P.C.) ("MFR"), which he founded in 1988, Mr. Mir has served as an independent business consultant. From 2008 and until his retirement, he served as MFR's Chief Administrative Officer, and prior to that his work included financial audit and accounting services for clients in the retail industry. From January 2003 through January 2008, Mr. Mir took a leave of absence from MFR and served as Executive General Manager of Strategic Partnerships for the Houston Independent School District. From 1969 until 1987, he worked at KPMG LLP, an international accounting and professional services firm, serving as a partner of the firm from 1978 until 1987. Mr. Mir has been a director of the Company since January 2002 and is a member of the Nominating and Corporate Governance Committee, the Finance and Audit Committee, and the Special Committee. Mr. Mir is also a director of the Galveston-Houston Archdiocese Council of the Society of St. Vincent de Paul and the Houston A+ Challenge. Qualifications, Experience, Key Attributes, and Skills: Mr. Mir has more than 46 years of experience in accounting, finance, and audit from his distinguished tenure at the accounting firms KPMG LLP and MFR. He is an active member of NACD and regularly participates in their professional development conferences. Additionally, Mr. Mir has experience in public relations, government, education, health care and community outreach from his board service on several community-based organizations. | |||||
JOHN MORLOCK, 65, was previously Chief Executive Officer of Hale and Hearty for eighteen months where he helped with the successful selling of the company in June of 2019. Prior to that, he served as the Chief Operating Officer of Sbarro, working with company stores as they were converting to a franchise system. From 2002 to 2015 he served as Chief Operating Officer of Potbelly Sandwich Works as they grew from 16 to 450 stores and was instrumental in its initial public offering in 2013. In 1993, Mr. Morlock became a co-owner of Boston Chicken where he served as Senior Vice President of Operations before going on to be its largest franchisee. Following the start of his career in 1977, Mr. Morlock has also held various positions with Steak and Ale restaurants, Grady's Goodtimes, the first and largest Blockbuster franchise, and Blockbuster corporate. Mr. Morlock has been an independent director of the Company since July 2019, Chair of the Compensation Committee, and a member of the Special Committee. Qualifications, Experience, Key Attributes, and Skills: Mr. Morlock has over 40 years of restaurant and retail management experience and has been involved with companies both on the franchise and franchisee side. Further, he has been directly involved in both start-up and turnaround situations in the public and private sector, and he been a Chief Operating Officer of a public company as well as the served of 4 privately held board of directors. | |||||
CHRISTOPHER J. PAPPAS, 73, has been President and Chief Executive Officer and a director of the Company since March 2001. He also has been Chief Executive Officer of Pappas Restaurants, Inc. since 1980. Mr. Pappas graduated from the University of Texas with a Bachelor of Science in Mechanical Engineering. Mr. Pappas is also an advisory director of Amegy Bank N.A.; the University of Houston Conrad Hilton School of Hotel and Restaurant Management Dean’s Advisory Board; the Greater Houston Partnership Board; and a director emeritus of the National Restaurant Association. Qualifications, Experience, Key Attributes, and Skills: Mr. Pappas has more than 42 years of experience in the restaurant industry. With his brother, Harris Pappas, he has founded and operated more than 90 restaurants during his successful career, including Pappadeaux Seafood Kitchen, Pappasitos Cantina, and Pappas Bros. Steakhouse. Additionally, Mr. Pappas has broad executive management and operational experience from his 36-year tenure as Chief Executive Officer of Pappas Restaurants, Inc. He also has extensive board and banking experience from his tenure as a board member in previous years and currently as an advisory board member Amegy Bank. Mr. Pappas is widely regarded as a restaurant industry expert. | |||||
RANDOLPH C. READ, 68, has served as an independent Director of our Company since August 2019 and currently serves as Co-Chairman of the Board’s Special Committee and a member of the Finance & Audit Committee and Nominating & Corporate Governance Committee. Mr. Read has been President and Chief Executive Officer of Nevada Strategic Credit Investments, LLC since 2009. Mr. Read has served since November 2018 as an independent Manager/Director and Chairman of the Board of New York REIT Liquidating, LLC, a successor to New York REIT, Inc., a publicly traded real estate investment trust, where Mr. Read served as an independent Director from December 2014 to November 2018, including as Chairman of its Board of Directors from June 2015 to November 2018. Mr. Read has served since June 2018 as an independent Director of SandRidge Energy, Inc., a publicly traded energy company and serves on various committees thereto including as Chairman of their Audit Committee and Chairman of their Finance and Special Committee. Mr. Read has served since August 2020 as an independent director and Chairman of the Board of Enzon Pharmaceuticals, Inc., a publicly traded acquisition vehicle, as well as Chairman of its Finance and Audit Committee. Mr. Read served as an independent Director of Business Development Corporation of America from December 2014 to June 2018. Mr. Read also served as an independent Director of Business Development Corporation of America II from December 2014 until its liquidation and dissolution in December 2015. Mr. Read served as the Chairman of the Board of Directors of Healthcare Trust, Inc., a real estate investment trust, from February 2015 to October 2016. Mr. Read has previously served as president and other senior positions of a variety of other companies and has previously served on a number of public and private company boards and advisory boards, including the Flying Food Group. In certain of these positions, various food service operations were involved, including at Wynn Resorts, the Dunes Casino and Resort, Greenspun Gaming, and Regent Air. Mr. Read is admitted as a Certified Public Accountant and has an M.B.A. in Finance from the Wharton Graduate School of the University of Pennsylvania and a B.S. from Tulane University. Qualifications, Experience, Key Attributes, and Skills: It is believed that Mr. Read’s significant business experience as a director and an executive officer of entities in a variety of industries, as well as capital markets, governance, and operations, in addition to his financial expertise and leadership qualities and roles, make him well qualified to serve as a member of the Board of Directors of Luby’s, Inc. |
Name | Served as Officer Since | Positions with Luby's, Inc. | Age | |||||||||||||||||
Christopher J. Pappas | 2001 | President and CEO (since March 2001) | 73 | |||||||||||||||||
Benjamin T. Coutee | 2007 | Chief Operating Officer (since October 2018); Senior Vice President of Operations (2011 to 2018); Division Vice President, Culinary Services (2007 to 2011) | 54 | |||||||||||||||||
Steven Goodweather | 2009 | Chief Financial Officer and Treasurer (since April 2020); Vice President of Financial Planning & Analysis (October 2009 to April 2020); Director, Financial Planning & Analysis (October 2006 to October 2009) | 51 | |||||||||||||||||
Philip J. Rider | 2019 | Chief Accounting Officer and Controller (since April 2020): Vice President - Accounting and SEC Reporting (October 2019 to April 2020) | 62 |
Name and Principal Position | Year | Salary | Bonus | Stock awards (1) | Option awards (2) | Non-Equity Incentive Plan Compensation | Nonqualified Deferred Compen- sation Earnings | All Other Compensation (3) | Total | ||||||||||||||||||||
Christopher J. Pappas President and Chief Executive Officer | 2020 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | ||||||||||||
2019 | 9,615 | — | — | — | — | — | — | 9,615 | |||||||||||||||||||||
Benjamin T. Coutee Chief Operating Officer (4) | 2020 | 263,952 | — | 32,850 | — | — | — | — | 296,802 | ||||||||||||||||||||
2019 | 283,000 | — | — | — | — | — | — | 283,000 | |||||||||||||||||||||
K. Scott Gray Former Senior Vice President and Chief Financial Officer (5) | 2020 | 283,314 | — | — | — | — | — | — | 283,314 | ||||||||||||||||||||
2019 | 342,000 | — | — | — | — | — | — | 342,000 | |||||||||||||||||||||
Steven B. Goodweather Chief Financial Officer and Treasurer (6) | 2020 | 178,798 | — | 26,280 | — | — | — | — | 205,078 | ||||||||||||||||||||
2019 | 175,000 | — | — | — | — | — | — | 175,000 | |||||||||||||||||||||
Philip J. Rider Chief Accounting Officer and Controller (7) | 2020 | 160,048 | — | 36,333 | — | — | — | — | 196,381 | ||||||||||||||||||||
2019 | — | — | — | — | — | — | — | — |
Option Awards | Stock Awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($)(5) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | |||||||||||||||||||||||||||||||||||||||||||||||
Christopher J. Pappas President and Chief Executive Officer | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
Benjamin T. Coutee Chief Operating Officer | 8,000 | N/A | N/A | 5.34 | 4/20/2021 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
4,664 | N/A | N/A | 4.42 | 11/15/2021 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
81,967 | N/A | N/A | 4.49 | 1/23/2025 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
26,042 | N/A | N/A | 4.89 | 11/11/2025 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
21,174 | N/A | N/A | 4.26 | 11/30/2026 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
35,857 | 11,952 (1) | N/A | 2.82 | 11/30/2027 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | N/A | 17,730 (2) | 19,503 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | N/A | 30,000 (4) | 33,000 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
K. Scott Gray Former Senior Vice President and Chief Financial Officer | 10,531 | N/A | N/A | 5.39 | 11/18/2020 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
6,929 | N/A | N/A | 4.42 | 11/15/2021 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
17,150 | N/A | N/A | 5.95 | 11/15/2022 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
95,628 | N/A | N/A | 4.49 | 1/23/2025 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
45,573 | N/A | N/A | 4.89 | 11/11/2025 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
49,406 | N/A | N/A | 4.26 | 11/30/2026 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
83,666 | N/A | N/A | 2.82 | 11/30/2027 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Steven B. Goodweather Chief Financial Officer and Treasurer | 11,816 | N/A | N/A | 4.49 | 1/23/2025 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
7,426 | N/A | N/A | 4.89 | 11/11/2025 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
8,187 | N/A | N/A | 4.26 | 11/30/2026 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
10,399 | 3,466 (1) | N/A | 2.82 | 11/30/2027 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | N/A | 5,142 (2) | 5,656 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | N/A | 24,000 (3) | 26,400 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||
Philip J. Rider Chief Accounting Officer and Controller | N/A | N/A | N/A | N/A | N/A | 5,236 (4) | 5,760 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | N/A | 24,000 (3) | 26,400 | N/A | N/A |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($)(1)(2) (3) | Option Awards ($)(4) | Non-Equity Incentive Plan Compensation ($) | Non-qualified Deferred Compensation Earnings | All Other Compensation ($)(5) | Total ($) | |||||||||||||||||||||||||||||||||||||
Gerald W. Bodzy | $ | — | $ | 160,264 | $ | — | $ | — | $ | — | $ | — | $ | 160,264 | ||||||||||||||||||||||||||||||
Twila Day | 3,750 | 102,668 | — | — | — | — | 106,418 | |||||||||||||||||||||||||||||||||||||
Jill Griffin | 52,000 | 32,234 | — | — | — | — | 84,234 | |||||||||||||||||||||||||||||||||||||
Frank Markantonis | — | 78,743 | — | — | — | — | 78,743 | |||||||||||||||||||||||||||||||||||||
Joe C. McKinney | — | 132,755 | — | — | — | — | 132,755 | |||||||||||||||||||||||||||||||||||||
Gasper Mir, III | — | 118,756 | — | — | — | — | 118,756 | |||||||||||||||||||||||||||||||||||||
John Morlock | 84,167 | 32,234 | — | — | — | — | 116,401 | |||||||||||||||||||||||||||||||||||||
Randolph C. Read | — | 161,863 | — | — | — | — | 161,863 |
Name | 1st Quarterly Grant October 1, 2019 | 2nd Quarterly Grant January 2, 2020 | Special Grant and Catch-up Special Committee Grant February 5, 2020 | 3rd Quarterly Grant April 13, 2020 | 4th Quarterly Grant July 1, 2020 | |||||||||||||||||||||||||||||||||
Gerald W. Bodzy | $ | 21,250 | $ | 21,250 | $ | 46,266 | $ | 32,211 | $ | 39,287 | ||||||||||||||||||||||||||||
Twila Day | 12,500 | 16,251 | 29,329 | 20,816 | 23,772 | |||||||||||||||||||||||||||||||||
Jill Griffin | 3,751 | 3,750 | 17,231 | 3,749 | 3,753 | |||||||||||||||||||||||||||||||||
Frank Markantonis | 18,750 | 14,250 | 17,231 | 14,248 | 14,264 | |||||||||||||||||||||||||||||||||
Joe C. McKinney | 19,749 | 22,249 | 31,749 | 27,729 | 31,279 | |||||||||||||||||||||||||||||||||
Gasper Mir, III | 16,251 | 18,750 | 31,749 | 24,230 | 27,776 | |||||||||||||||||||||||||||||||||
John Morlock | 3,751 | 3,750 | 17,231 | 3,749 | 3,753 | |||||||||||||||||||||||||||||||||
Randolph C. Read | 18,750 | 18,750 | 52,071 | 31,904 | 40,388 |
Name (1) | Shares Beneficially Owned | Percent of Common Stock | ||||||||||||
Gerald W. Bodzy(2) | 225,854 | * | ||||||||||||
Benjamin T. Coutee(3) | 301,081 | * | ||||||||||||
Twila Day(4) | 100,170 | * | ||||||||||||
Steven B. Goodweather (5) | 89,304 | * | ||||||||||||
K. Scott Gray(6) | 422,296 | 1.38 | % | |||||||||||
Jill Griffin(7) | 121,320 | * | ||||||||||||
Frank Markantonis(8) | 298,567 | * | ||||||||||||
Joe C. McKinney(9) | 304,845 | * | ||||||||||||
Gasper Mir, III(10) | 266,235 | * | ||||||||||||
John Morlock(11) | 12,818 | * | ||||||||||||
Christopher J. Pappas(12) | 5,667,153 | 18.47 | % | |||||||||||
Randolph C. Read(13) | 116,091 | * | ||||||||||||
Philip J. Rider (14) | 24,000 | * | ||||||||||||
All directors and executive officers of the Company, as a group (13 persons)(15) | 7,949,734 | 25.91 | % |
Name and Address of Beneficial Owner (1) | Shares Beneficially Owned | Percent of Common Stock | ||||||||||||
Christopher J. Pappas(2) | 5,667,153 | 18.47% | ||||||||||||
13939 Northwest Freeway Houston, Texas 77040 | ||||||||||||||
Harris J. Pappas(3) | 5,506,470 | 17.95% | ||||||||||||
13939 Northwest Freeway Houston, Texas 77040 | ||||||||||||||
Bandera Partners LLC(4) | 2,859,926 | 9.32% | ||||||||||||
50 Broad Street, Suite 1820 New York, New York 10004 | ||||||||||||||
Hodges Capital Management, Inc.(6) | 2,544,770 | 8.29% | ||||||||||||
2905 Maple Ave. Dallas, Texas 75201 | ||||||||||||||
Dimensional Fund Advisors LP(6) | 1,736,067 | 5.66% | ||||||||||||
Palisades West, Building One, 6300 Bee Cave Road, Austin, Texas 78746 |
2020 | 2019 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Audit Fees | $ | 505 | $ | 483 | ||||||||||||||||
Audit-Related Fees | 0 | 0 | ||||||||||||||||||
Tax Fees | 0 | 0 | ||||||||||||||||||
All Other Fees | 0 | 0 | ||||||||||||||||||
Total | $ | 505 | $ | 483 |
1. | Financial Statements |
The following financial statements are filed as part of this Report: |
Consolidated balance sheets at August |
Consolidated statements of operations for each of the two years in the period ended August |
Consolidated statements of shareholders’ equity for each of the two years in the period ended August |
Consolidated statements of cash flows for each of the two years in the period ended August |
Notes to consolidated financial statements |
Report of Independent Registered Public Accounting Firm Grant Thornton LLP |
2. | Financial Statement Schedules |
3. | Exhibits |
2 | |||||
3(a) | |||||
3(b) | |||||
3(c) | |||||
4 | |||||
4(a) | |||||
4(b) | |||||
4(c) | |||||
10(a) | |||||
10(b) | |||||
10(c) | |||||
10(d) | |||||
10(e) | |||||
10(f) | |||||
10(g) | |||||
10(h) | |||||
10(i) | |||||
10(j) | |||||
10(k) | |||||
14(b) | |||||
21 | |||||
23.1 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
99(a) | |||||
101.INS | XBRL Instance Document | ||||
101.SCH | XBRL Schema Document | ||||
101.CAL | XBRL Calculation Linkbase Document | ||||
101.DEF | XBRL Definition Linkbase Document | ||||
101.LAB | XBRL Label Linkbase Document | ||||
101.PRE | XBRL Presentation Linkbase Document |
Denotes management contract or compensatory plan or arrangement. |
December 9, 2020 | LUBY’S, INC. | |||||||
Date | (Registrant) | |||||||
By: | ||||||||
/s/ CHRISTOPHER J. PAPPAS | ||||||||
Christopher J. Pappas | ||||||||
President and Chief Executive Officer |
Signature and Title | Date | ||||
/S/ GERALD W. BODZY | |||||
Gerald W. Bodzy, Director and Chairman of the Board | |||||
/S/ CHRISTOPHER J. PAPPAS | |||||
Christopher J. Pappas, Director, President and Chief Executive Officer (Principal Executive Officer) | |||||
/S/ | |||||
Officer and Treasurer (Principal Financial Officer) | |||||
/S/ PHILIP J. RIDER | December 9, 2020 | ||||
Philip J. Rider, Chief Accounting Officer and Controller (Principal Accounting Officer) | |||||
/S/ TWILA DAY | |||||
Twila Day, Director | |||||
/S/ JILL GRIFFIN | |||||
Jill Griffin, Vice Chair and Director | |||||
/S/ FRANK MARKANTONIS | |||||
Frank Markantonis, Director | |||||
/S/ JOE C. MCKINNEY | |||||
Joe C. McKinney, Director | |||||
/S/ GASPER MIR, III | |||||
Gasper Mir, III, Director | |||||
/S/ JOHN B. MORLOCK | |||||
John B. Morlock, Director | |||||
/S/ RANDOLPH C. READ | |||||
Randolph C. Read, Director |