BBQ (BBQ) 10-Q 18 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Apr. 03, 2016shares
Document and entity information [Abstract]
Document type	10-Q
Document period end date	Apr. 3, 2016
Document Period Focus	Q1
Amendment flag	false
Document Fiscal Year Focus	2,016
Entity registrant name	FAMOUS DAVES OF AMERICA INC
Entity central index key	1,021,270
Entity current reporting status	Yes
Entity voluntary filers	No
Current fiscal year end date	--01-01
Entity filer category	Smaller Reporting Company
Entity well known seasoned issuer	No
Entity common stock shares outstanding	6,957,628

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Apr. 03, 2016	Jan. 03, 2016
Current assets:
Cash and cash equivalents	$ 7,600,000	$ 5,300,000
Restricted Cash And Cash Equivalents	1,202,000	1,087,000
Accounts receivable, net	5,028,000	4,677,000
Inventories	1,860,000	2,070,000
Deferred tax asset	181,000	181,000
Prepaid expenses and other current assets	1,776,000	1,671,000
Assets held for sale	0	2,211,000
Total current assets	17,647,000	17,197,000
Property, equipment and leasehold improvements, net	31,895,000	32,491,000
Other assets:
Intangible assets, noncurrent	2,890,000	2,902,000
Deferred tax asset	4,411,000	4,411,000
Other assets	891,000	824,000
Total assets	57,734,000	57,825,000
Current liabilities:
Current portion of long-term debt and financing lease obligation	10,352,000	2,193,000
Line of Credit, Current	1,855,000	0
Accounts payable	6,097,000	5,685,000
Accrued compensation and benefits	1,586,000	1,390,000
Deferred tax liability, current	101,000	101,000
Other current liabilities	4,024,000	3,406,000
Liabilities held for sale	0	1,747,000
Total current liabilities	24,015,000	14,522,000
Long-term liabilities:
Long-term debt, less current portion	0	10,200,000
Financing lease obligations, less current portion	2,653,000	2,757,000
Other liabilities	8,228,000	8,285,000
Total liabilities	34,896,000	35,764,000
Shareholders' equity:
Common stock, $.01 par value, 100,000 shares authorized, 6,958 shares issued and outstanding at April 3, 2016 and January 3, 2016, respectively	66,000	66,000
Retained earnings	22,772,000	21,995,000
Total shareholders' equity	22,838,000	22,061,000
Total liabilities and shareholders' equity	$ 57,734,000	$ 57,825,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands	Apr. 03, 2016	Jan. 03, 2016
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.01
Common Stock, Shares Authorized	100,000
Common stock issued (in shares)	6,958	6,958
Common Stock, Shares, Outstanding	6,958	6,958

Consolidated Statement of Opera

Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015
Revenue:
Restaurant sales, net	$ 18,992	$ 23,743
Franchise royalty revenue	4,165	4,331
Franchise fee revenue	135	5
Licensing and other revenue	248	185
Total Revenue	23,540	28,264
Costs and expenses:
Food and beverage costs	6,023	7,174
Labor and benefits costs	6,853	7,986
Operating expenses	5,709	6,701
Depreciation and amortization	981	1,179
General and administrative expenses	3,775	4,849
Asset impairment and estimated lease termination and other closing costs	8	95
Pre-opening expenses	0	1
Net loss on disposal of property	(204)	(23)
Total costs and expenses	23,145	27,962
Income from operations	395	302
Other expense:
Interest expense	(178)	(201)
Interest income	1	5
Other income (expense), net	0	(2)
Total other expense	(177)	(198)
Income before income taxes	218	104
Income tax expense	69	(4)
Net income from continuing operations	149	108
Income (Loss) from Discontinued Operations, Net of Tax	681	89
Net income (loss)	$ 830	$ 197
Income (loss) from continuing operations per basic share	$ 0.02	$ 0.02
Income loss from discontinued operations per basic share	0.1	0.01
Basic net income per common share	0.12	0.03
Income loss from continuing operations per diluted share	0.02	0.02
Income loss from discontinued operations per diluted share	0.1	0.01
Diluted net income per common share	$ 0.12	$ 0.03
Weighted average common of shares outstanding - basic	6,948	7,107
Weighted average common shares outstanding - diluted	6,958	7,131

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015
Cash flows from operating activities:
Net income from continuing operations	$ 149	$ 108
Adjustments to reconcile net income to cash flows provided by operations:
Depreciation and amortization	981	1,179
Amortization Of Financing Costs	9	23
Net loss on disposal of property	(204)	(23)
Asset impairment and estimated lease termination and other closing costs	8	95
Deferred rent and net amortization of lease interest assets and liablities	192	224
Stock-based compensation	(54)	208
Tax benefit for equity awards issued - operating activities	0	(153)
Restricted cash	(115)	130
Accounts receivable, net	(428)	(1,155)
Inventories	210	96
Prepaid expenses and other current assets	(105)	(827)
Accounts payable	240	46
Accrued compensation and benefits	107	(1,973)
Other current liabilities	329	(132)
Other liabilities - operating activities	(18)	0
Long-term deferred compensation	0	(74)
Cash flows provided by continuing operating activities	1,301	(2,228)
Cash provided by discontinued operations	(785)	107
Cash flows provided by operating activities	516	(2,121)
Cash flows from investing activities:
Proceeds from the sale of restaurant assets	1,053	0
Purchases of property, equipment and leasehold improvements	(129)	(361)
Cash flows used for continuing investing activities	924	(361)
Cash flows provided by discontinued investing activities	1,150	(67)
Cash flows provided by (used for) investing activities	2,074	(428)
Cash flows from financing activities:
Proceeds from draws on line of credit	1,855	9,200
Payments on line of credit	0	(3,200)
Payments on long-term debt and financing lease obligations	(2,145)	(250)
Tax benefit for equity awards issued - financing activities	0	153
Repurchase of common stock	0	(3,480)
Cash flows used for financing activities	(290)	2,423
Cash and cash equivalents, beginning of year	5,300	2,133
Cash and cash equivalents, end of year	$ 7,600	$ 2,007

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Apr. 03, 2016
Nature Of Business And Significant Accounting Policies [Abstract]
Nature Of Business And Significant Accounting Policies [Text Block]	(1) Basis of Presentation We, Famous Dave's of America, Inc. (“Famous Dave’s” or the “Company”), were incorporated in Minnesota on March 14, 1994. We develop, own, operate and franchise restaurants under the name "Famous Dave's". As of April 3, 2016 , there were 178 Famous Dave’s restaurants operating in 33 states, the Commonwealth of Puerto Rico, Canada, and United Arab Emirates, including 37 company-owned restaurants and 141 franchise-operated restaurants. An additional 64 franchise restaurants were committed to be developed through signed Area Development Agreements as of April 3, 2016 . We prepared these consolidated financial statements i n accordance with Securities and Exchange Commission (“SEC”) Rules and Regulations. These unaudited financial statements represent the consolidated financial statements of Famous Dave’s and its subsidiaries as of April 3, 2016 and January 3, 2016 and for the three month periods ended April 3, 2016 and March 29, 2015 , respectively. The information furnished in these financial statements includes normal recurring adjustments and reflects all adjustments, wh ich are, in our opinion, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have be en condensed or omitted. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the fiscal year ended January 3, 2016 as filed with the SEC. Due to the seasonality of our business, revenue and operating results for the three months ended April 3, 2016 are not necessarily indicative of the results to be expected for the full year.

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	3 Months Ended
	Apr. 03, 2016
Earnings Per Share [Abstract]
Net Income Per Common Share [Policy Text Block]	(2) Net Income Per Common Share Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options, when dilutive. Following is a reconciliation of basic and diluted net income per common share: Three Months Ended (in thousands, except per share data) April 3, March 29, 2016 2015 Net income per common share – basic: Net income from continuing operations, net of taxes $ 149 $ 108 Net income from discontinued operations, net of taxes 681 89 Net income 830 197 Weighted average shares outstanding 6,948 7,107 Net income from continuing operations per common share – basic $ 0.02 $ 0.02 Net income from discontinued operations per common share – basic $ 0.10 $ 0.01 Net income per common share – basic $ 0.12 $ 0.03 Net income per common share – diluted: Net income from continuing operations, net of taxes $ 149 $ 108 Net income from discontinued operations, net of taxes 681 89 Net income 830 197 Weighted average shares outstanding 6,948 7,107 Dilutive impact of common stock equivalents outstanding 10 24 Adjusted weighted average shares outstanding 6,958 7,131 Net income from continuing operations per common share – diluted $ 0.02 $ 0.02 Net income from discontinued operations per common share – diluted $ 0.10 $ 0.01 Net income per common share – diluted $ 0.12 $ 0.03 There were 439,000 options outstanding as of April 3, 2016 that were not included in the computation of diluted EPS because they were anti-dilutive. All options outstanding as of March 29, 2015 were included in the computation of diluted earnings per share.

RESTRICTED CASH AND MARKETING F

RESTRICTED CASH AND MARKETING FUND	3 Months Ended
	Apr. 03, 2016
Restricted Cash [Abstract]
ScheduleOfRestrictedCashAndCashEquivalents	(3) Restricted Cash and Marketing Fund We have a system-wide Public Relations and Marketing Development Fund, to which Company-owned restaurants, in addition to the majority of franchise-operated restaurants, contribute a percent age of net sales, currently 1.0 %, for use in public relations and marketing development efforts throughout the system. The assets held by this fund are considered restricted. Accordingly, we reflect the cash related to this fund in restricted cash and re flect the liability in accounts payable on our consolidated balance sheets as of April 3, 2016 and January 3, 2016 . We had approximately $1.2 million and $1.1 million in this fund as of April 3, 2016 and January 3, 2016 , respectively.

ALLOWANCE FOR DOUBTFUL ACCOUNTS

ALLOWANCE FOR DOUBTFUL ACCOUNTS	3 Months Ended
	Apr. 03, 2016
Accounts Receivable Net [Abstract]
Allowance For Credit Losses [TextBlock]	(4) Allowance for Doubtful Accounts Accounts Receivable, Net – We provide an allowance for uncollectible accounts on accounts receivable based on historical losses and existing economic conditions, when relevant. We provide for a general bad debt reserve for franchise receivables due to increases in days sales out standing and deterioration in general economic market conditions. This general reserve is based on the aging of receivables meeting specified criteria and is adjusted each quarter based on past due receivable balances. Additionally, we have periodically established a specific reserve on certain receivables as necessary. Any changes to the reserve are recorded in general and administrative expenses. The allowance for uncollectible accounts was approximately $319,000 and $246,000 , at April 3, 2016 and January 3, 2016 , respectively. Accounts receivable are written off when they become uncollectible, and payments subsequently received on such receivables are credited to allowance for doubtful accounts. Accounts receivable bal ances written off have not exceeded allowances provided. We believe all accounts receivable in excess of the allowance are fully collectible. If accounts receivable in excess of provided allowances are determined uncollectible, they are charged to expense in the period that determination is made. Outstanding past due accounts receivable are subject to a monthly interest charge on unpaid balances which is recorded as interest income in our consolidated statements of operations. In assessing recoverability of these receivables, we make judgments regarding the financial condition of the franchisees based primarily on past and current payment trends, as well as other variables, including annual financial information, which the franchisees are required to submi t to us, as well as other variables.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Apr. 03, 2016
Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	(5 ) Intangible Assets , net T he Company has intangible assets that consist of liquor licenses and lease interest assets. The liquor licenses are indefinite lived assets and are not subject to amortization. The lease interest assets are amortized to occupancy costs on a straight-line basis over the remaining term of each respective lease . Amortization of the lease interest assets is expected to be approximately $47,500 per year, for the remaining useful life. A reconciliation of begi nning and ending amounts of intangible assets at April 3, 2016 and January 3, 2016 , respectively, a r e presented in the table below: (in thousands) Remaining estimated useful life (years) Original Cost Accumulated Amortization Net Book Value Less Current Portion (1) Non- Current Portion Balance at April 3, 2016 Lease interest assets 23.8 $ 1,417 $ (289) $ 1,128 $ (48) $ 1,080 Liquor licenses 1,810 --- 1,810 --- 1,810 Total $ 3,227 $ (289) $ 2,938 $ (48) $ 2,890 (in thousands) Remaining estimated useful life (years) Original Cost Accumulated Amortization Net Book Value Less Current Portion (1) Non- Current Portion Balance at January 3, 2016 Lease interest assets 24.1 $ 1,417 $ (277) $ 1,140 $ (48) $ 1,092 Liquor licenses 1,810 --- 1,810 --- 1,810 Total $ 3,227 $ (277) $ 2,950 $ (48) $ 2,902 (1) The current portion is included in prepaid expenses and other current assets on the consolidated balance sheets.

CREDIT FACILITY AND DEBT COVENA

CREDIT FACILITY AND DEBT COVENANTS, LONG-TERM DEBT, AND FINANCING LEASE OBLIGATIONS	3 Months Ended
	Apr. 03, 2016
Debt Disclosure [Abstract]
Credit Facility, Long-Term Debt and Debt Covenants Disclosure [Text Block]	6) Credit Facility, Long-Term Debt and Debt Covenants On December 11, 2015, the Company and certain of its subsidiaries (collectively known as the “Borrower”) entered into a First Amendment to the Third Amended and Restated Credit Agreement dated May 8, 3015 (as amended by the First Amendment, the “Credit Agreement”), with Wells Fargo Bank, National Association as administrative agent and lender (the “Lender”) . The Credit Agreement will mature on December 31, 2018 and contains a $ 3.0 million revolv ing credit facility (the “Facility”) with a $ 2.0 million letter of credit sublimit, and a term loan with a maximum of $ 12.0 million (the “Term Loan”). At April 3, 2016 , the principal amount outstanding under the Facility and the Term Loan wa s $1.9 million and $9.9 million, respectively, along with approximately $1.1 million in letters of credit for real estate locations. The Credit Agreement allows for termination by the Borrower without penalty at any time. Unde r the Credit Agreement, the Borrowers have granted the Lender a security interest in all current and future personal property of the Borrower. Principal amounts outstanding under the Facility bear interest either at an adjusted Eurodollar rate or “Base Ra te” plus an applicable margin. The applicable margin depends on the Company’s Adjusted Leverage Ratio at the end of the previous quarter. For the three months ended April 3, 2016 and March 29, 2015 , our weighted average interest rat e for the Facility was 3.68% and 2.76% , respectively. Unused portions of the Facility are subject to a fee, which was 0.375% of the unused amount at April 3, 2016 . Principal amounts outstanding under the Term Loa n bear interest at the same rate as the Facility. The weighted average interest rate of the Term Loan f or the three months ended April 3, 2016 and March 29, 2015 w as 3.67% and 2.18% , respectively. The Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type. For more information regarding the details of the customary affirmative and negative covenants, please refer to the full text of the Third Amended and Res tated Credit Agreement dated May 8, 2015 filed as Exhibit 10.2 to our Form 10-Q for the quarter ended March 29, 2015, which was filed on May 8, 2015 and the First Amendment to the Credit Agreement filed as Exhibit 10.1 to our Current Report on Form 8-K, wh ich was filed on December 11, 2015. We were in compliance with all covenants of the Credit Agreement for the quarter ended April 3, 2016 except for two financial covenants: Consolidated Cash Flow Ratio and minimum Adjusted EBITDA. For the quarter ende d April 3, 2016 the Consolidated Cash Flow Ratio was 1. 02 :1.00, which is less than the minimum Consolidated Cash Flow Ratio permitted by the Credit Agreement of 1. 1 5:1.00. For the quarter ended April 3, 2016, our Adjusted EBITDA was $1.0 million , which is less than the minimum Adjusted EBITDA permitted by the Credit Agreement of $1.8 million for this quarter . It is an Event of Default under the Credit Agreement if Borrowers fail to comply with either the Consolidated Cash Flow Ration or minimum Adjusted EBITDA covenant or any other covenant. Upon an Event of Default, the Lender has the right to declare the unpaid principal amount of all outstanding loans; all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other loan document to be immediately due and payable, as well as to exercise its other rights as a secured creditor. In addition, we are prohibited under the Credit Agreement from making dividends or distributions from one Borrower to another Borrower and purchasing common stock pursuant to a board-approved stock purchase program. On May 16 , 201 6 , the Borrowers and the Lender entered into a Forbearance Agreement p ursuant to which the Lender agreed to forbear from exercising its rights and re medies under the Credit Agreement relating to the existing defaults during a Forbearance Period ending June 11, 2016 or on the earlier date of any other Event of Default under the Credit Agreement or breach of the Forbearance Agreement. Under the Forbearan ce Agreement, we have agreed not to request and Wells Fargo is not obligated to make any further extensions of credit to us under the Credit Agreement. During the Forbearance Period, we intend to closely manage our expenses and cash balances to prevent a w orking capital shortfall. At May 16, 2016, the principal amount outstanding under the Facility was $11.7 million, along with approximately $1.1 million in letters of credit for real estate locations. As of April 3, 2016, the Company had $7.6 million in ca sh and cash equivalents. During the Forbearance Period, we intend to seek an amendment to or restructuring of the Credit Agreement. As a result of the Events of Default at April 3, 2016 and given the length of the Forbearance Period, all outstanding obligations under the Credit Agreement were classified as current liabilities.

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	3 Months Ended
	Apr. 03, 2016
Accrued Liabilities, Current [Abstract]
Other Current Liabilities Disclosure [Text Block]	( 7 ) O ther Current Liabilities Other current liabilities consisted of the following at: April 3, January 3, (in thousands) 2016 2016 Gift cards payable $ 1,432 $ 1,616 Other liabilities 890 869 Accrued real estate taxes 574 33 Sales tax payable 535 674 Income tax payable 233 40 Deferred franchise fees 212 134 Accrued property and equipment purchases 148 40 $ 4,024 $ 3,406

OTHER LIABILITIES

OTHER LIABILITIES	3 Months Ended
	Apr. 03, 2016
Other Liabilities [Abstract]
Other Liabilities Disclosure [Text Block]	(8) Other Liabilities Other liabilities consisted of the following at: April 3, January 3, (in thousands) 2016 2016 Deferred rent $ 7,350 $ 7,191 Other liabilities 375 455 Long term lease reserve 208 258 Long term deferred compensation 168 258 Asset retirement obligations 111 111 Income taxes payable 16 12 $ 8,228 $ 8,285

PERFORMANCE SHARES, STOCK OPTIO

PERFORMANCE SHARES, STOCK OPTIONS, OTHER FORMS OF COMPENSATION, AND COMMON SHARE REPURCHASES	3 Months Ended
	Apr. 03, 2016
Performance Shares, Stock Options, Other Forms Of Compensation And Common Share Repurchaces [Abstract]
Performance Shares, Stock Options, Other Forms of Compensation and Common Share Repurchases [Text Block]	(9 ) Performance Shares, Stock Options, Other Forms of Compensation, and Common Share Repurchases Stock-based Compensation Effective May 5, 2015, we adopted a 2015 Equity Plan (the “2015 Plan”), pursuant to which we may grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other stock and cash awards to eligible participants. We also maintain an Amended and Restated 2005 Stock Incentive Plan (the “2005 Plan”) . Together, the 2015 Plan and 2005 Plan are referred to herein as the “Plans.” Under the 20 1 5 Plan, an aggregate of 277,676 shares of our Company’s common stock remained unreserved and available for issuance at April 3, 2016 . The 2005 Plan prohibits the granting of incentives after May 12, 2015, the tenth anniversary of the date such Plan was approved by the Company’s shareholders. Nonetheless, the 2005 Stock Incentive Plan will remain in effect until all outstanding incentives granted the reunder have either been satisfied or terminated. We recognized stock-based compensation expense in our consolidated statements of operations for the three months ended April 3, 2016 and March 29, 2015 , respectively, as follows: Three Months Ended April 3, March 29, (in thousands) 2016 2015 Performance Shares and Performance Stock Units-2013 Program $ --- $ 28 Stock Options (69) 172 Restricted Stock and Restricted Stock Units 15 15 $ (54) $ 215 (1) The 2013 Program's stock-based compensation consists of both performance shares and performance stock units. (2) The three months ended April 3, 2016 includes the recapture of previously recorded stock-based compensation of approximately $126,000 due to the departure of our CFO. Board of Directors’ Compensation We recognized board of d irectors’ c ompensation expense in our consolidated statement of operations for the three months ended April 3, 2016 and March 29, 2015 , respectively, as follows: Three Months Ended April 3, March 29, 2016 2015 (in thousands) Stock-based compensation $ 15 $ 15 Stock option compensation 16 68 Cash compensation 14 77 Total board of directors' compensation $ 45 $ 160 Stock Options On February 10, 2014, Edward H. Rensi was named Interim Chief Executive Officer by the Company’s board of directors. Pursuant to the agreement governing Mr. Rensi’s employment, the Company granted him 25,000 stock options. These options vested in two equal installments of 12,500 shares on February 10, 2014 and February 10, 2015 and expire five years from the grant date. The compensation expense for this grant was recognized under general and administrative expense in our consolidated st atements of operations through the applicable service period. On May 22, 2014, Edward H. Rensi was named Chief Executive Officer. On January 15, 2015, Edward H. Rensi was granted 75,000 stock options. These options were forfeited upon his resignation fr om the position of Chief Executive Officer on June 18, 2015. On June 2, 2014, Richard A. Pawlowski was named Chief Financial Officer by the Company’s board of directors. Pursuant to the agreement governing Mr. Pawlowski’s employment, the Company granted 78,000 stock options. These options vested in equal annual installments over a period of three years, expiring five years from the grant date. The compensation expense for this grant was recognized under general and administrative expense in our consolid ated statements of operations through the applicable service period. Upon his resignation effective April 11, 2016, any unvested options were forfeited. On January 15, 2016, the Company granted Mr. Pawlowski 6,000 stock options vesting in three equal ins tallments dependent upon the achievement of certain Milestones and expire on April 1, 2017. The compensation expense for this grant will be recognized under general and administrative expense in our consolidated statements of operations through the applic able service period. Effective July 11, 2015, July 13, 2015, and July 15, 2015, Edward H. Rensi , Brett D. Heffes , and David J. Mastrocola , respectively, resigned as member s of the Board of Directors, forfeiting any unvested options previously granted to them . On August 31, 2015, Abelardo Ruiz became the Company’s Chief Operating Officer. Pursuant to the agreement governing Mr. Ruiz’s employment, the Company granted 71,324 stock options. These options will vest in equal monthly installments over a peri od of four years and expire five years from the grant date. The compensation expense for this grant will be recognized under general and administrative expense in our consolidated statements of operations through the applicable service period. Effective January 1, 2016, Adam J. Wright was appointed the Company’s Chief Executive Officer, removing his prior interim title. Pursuant to the agreement governing Mr. Wright’s employment, the Company granted 50,000 stock options. These options will vest in equa l monthly installments over a period of two years and expire ten years from the grant date. The compensation expense for this grant will be recognized under general and administrative expense in our consolidated statements of operations through the applic able service period. On February 12, 2016, Alfredo Martel became the Company’s Chief Marketing Officer. Pursuant to the agreement governing Mr. Martel’s employment, the Company granted 35,000 stock options. These options will vest in equal monthly insta llments over a period of four years and expire five years from the grant date. The compensation expense for this grant will be recognized under general and administrative expense in our consolidated statements of operations through the applicable service period. Other options granted to certain non-officer employees vest in equal annual installments over a period of four years and expire five years from the grant date . Compensation expense equal to the grant date fair value is generally recognized for these awards over the vesting period. The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation method with the assumptions noted in the table below. Due to a lack of recent historical share option exercise ex perience, the Company uses a simplified method for estimating the expected life, as outlined in Accounting Standards Codification 718, calculated using the following formula: (vesting term + original contract term)/2. Expected volatilities are based on th e movement of the company’s common stock over the most recent historical period equivalent to the expected life of the option. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. maturities over the expect ed life at the time of grant. Information regarding our Company’s stock options is summarized below: (number of options in thousands) Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Options outstanding at January 3, 2016 507 $ 16.66 5.3 Granted 53 17.66 Forfeited (53) 32.02 Options outstanding at April 3, 2016 507 13.95 5.2 Options exercisable at April 3, 2016 154 17.66 4.2 Weighted-average values and assumptions for valuing grants made: Three Months Ended April 3, 2016 Fiscal 2015 Weighted average fair value of options granted $ 1.80 $ 4.90 Expected life (in years) 3.6 3.3 Expected stock volatility 41.8 % 51.2 % Risk-free interest rate 1.0 % 1.9 %

RETIREMENT SAVINGS PLANS

RETIREMENT SAVINGS PLANS	3 Months Ended
	Apr. 03, 2016
Retirement Savings Plans [Abstract]
Retirement Savings Plans Disclosure [Text Block]	( 10 ) Retirement Savings Plans 401(k) Plan We have a pre-tax salary reduction/profit-sharing plan under the provisions of Section 401(k) of the Internal Revenue Code, which covers employees meeting certain eligibility requirements. In fiscal 2016 and 2015 , we matched 25.0%, of the employee’s contribution up to 4.0% of their earnings. Employee contributions were approximately $92,000 and $116,000 for the first quarter of fiscal years 2016 and 2015 , respectively. The employer match was approximately $7,000 and $20,000 for the first quarter of fiscal years 2016 and 2015 , respectively. There were no discretionary contributions to the Plan in the first quarter of fiscal 2016 and 2015 . Non-Qualified Deferred Compensation Plan We have a Non-Qualified Deferred Compensation Plan effective as of February 25, 2005 (the “Plan”). Eligible participants are those employees who are at the “director” level and above and who are selected by the Company to participate in the Plan. Participants must complete a deferral election each year to indicate the level of compensation (salary, bonus and commissions) they wish to have deferred for the coming year. This deferral election is irrevocable except to the extent permitted by the Plan administrator, and the regulations promulgated by the IRS. During fiscal 2016 and 2015 , we matched 25.0%, of the first 4.0% contributed and are paying a declared interest rate of 6 .0% on balances outstanding. The Board of Directors administers the Plan and may change the rate or any other aspects of the Plan at any time. Deferral periods are limited to the earlier of termination of employment or not less than thr ee calendar years following the end of the applicable Plan year. Extensions of the deferral period for a minimum of five years are allowed provided an election for extension is made at least one year before the first payment affected by the change. Payme nts can be in a lump sum or in equal payments over a two-, five- or ten-year period, plus interest from the commencement date. The Plan assets are kept in an unsecured account that has no trust fund. In the event of bankruptcy, any future payments would have no greater rights than that of an unsecured general creditor of the Company and they confer no legal rights for interest or claim on any assets of the Company. Benefits provided by the Plan are not insured by the Pension Benefit Guaranty Corporation (PBGC) under Title IV of the Employee Retirement Income Security Act of 1974 (“ERISA”), because the pension insurance provisions of ERISA do not apply to the Plan. For the quarter ended April 3, 2016 and March 29, 2015 , eligible participants contributed approximately $6,000 and $18,000 , respectively, to the Plan, and the Company provided matching funds and interest of approximately $5,000 and $9,000 , respectively. Distributions for the quarters ended April 3, 2016 and March 29, 2015 were $ 88,000 and $ 113,000 , respectively. The balance of the Plan for the quarters ended April 3, 2016 and January 3, 2016 was approximately $288,000 and $547,000 , respectively. Of th e s e balance approximately $ 1 19 ,000 and $ 109 ,000 was recorded in current liabilities and the remaining balance was recorded in other liabilities at April 3, 2016 an d January 3, 2016 , respectively.

ASSET IMPAIRMENT AND ESTIMATED

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS	3 Months Ended
	Apr. 03, 2016
Asset Impairment And Estimated Lease Terminations And Other Closing Costs [Abstract]
Asset Impairment And Estimated Lease Terminations And Other Closing Costs Disclosure [Text Block]	(11) Asset Impairment and Estimated Lease Termination and Other Closing Costs W e evaluate restaurant sites and long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of restaurant sites to be held and used is measured by a comparison of the carrying amount of the restaurant site to the undiscounted future net cash flows expected to be generated on a restaurant-by-restaurant basis. If a res taurant is determined to be impaired, the loss is measured by the amount by which the carrying amount of the restaurant ’s assets exceeds its fair value. Fair value is estimated based on the best information available including estimated future cash flows, expected growth rates in comparable restaurant sales, remaining lease terms , discount rate and other factors. If these assumptions change in the future, we may be required to take additional impairment charges for the related assets. Considerable manage ment judgment is necessary to estimate future cash flows. Accordingly, actual results could vary significantly from such estimates. Restaurant sites that are operating but have been previously impaired are reported at the lower of their carrying amount o r fair value less estimated costs to sell. Following is a sum mary of these events during the first quarter of fiscal 2016 and fiscal 2015 . Asset Impairment and Estimated Lease Termination and Other Closing Costs (in thousands): Three Months Ended Three Months Ended Restaurants Reason April 3, 2016 March 29, 2015 Richmond, VA area Costs for closed restaurants $ 5 $ 95 Miscellaneous Costs for closed restaurants 3 - Total $ 8 $ 95

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Apr. 03, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	(12) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement framework establishes a three-tier hierarchy. The three levels, in order of priority, are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 1 measurements are determined by observ able inputs which include data sources and market prices available and visible outside of the entity. Level 2: Observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly. Level 3: Inputs that are used to estimate the fair value of the asset or liability. Level 3 measurements are determined by unobservable inputs , which include data and analysi s developed within the entity to assess the fair value. Transfers in and out of l evels will be ba sed on our judgment of the availability of unadjusted quoted prices in active markets, other observable inputs, and non-observable inputs. The following table (in thousands) summarizes the assets held for sale and property and equipment, in each case mea sured at fair value in our consolidated balance sheet as of January 3, 2016 and April 3, 2016 : Level 1 Level 2 Level 3 Total Balance at January 3, 2016 Assets Assets Held for Sale $ - $ 1,431 $ 780 $ 2,211 Property and Equipment $ - $ - $ 507 $ 507 Balance at April 3, 2016 Assets Property and Equipment $ - $ - $ 485 $ 485 1 Assets Held for Sale were recorded at fair value and were valued based upon a Real Estate Broker’s Estimate of Value for the properties (Level 3) or negotiated sale price (Level 2). Property and Equipment, net, recorded at fair value were valued based upon a Broker’s Estimate of Value or estimated discounted future cash flows (Level 3). These assets were adjusted to net realizable based upon the decision to dispose of the property. Total assets held for sale were reduced during the quarter ended April 3, 2016 due to the disposal of FDA’s Chicago operations sites (see note 13 ) and of one of the Richmond restaurant .

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Apr. 03, 2016
Discontinued Operations And Disposal Groups [Abstract]
Disposal Groups Including Discontinued Operations Disclosure [TextBlock]	(13) Discontinued Operations On December 14, 2015, Famous Dave’s of America, Inc. and certain of its subsidiaries (collectively, the “Company”) entered into an Asset Purchase Agreement and related Real Estate Purchase Agreement (the “Purchase Agreements”) with Windy City Restaurant Holdings LLC and its affiliate (together, the “Purchaser”) pursuant to which the Company agreed to sell the assets comprising its seven Chicago, Illinois area Company-owned restaurants located in Addison, Algonquin, Bolingbrook, Evergreen Park, North Riverside, Orland Park and Oswego (collectively, “Purchased Restaurants”) to the Purchaser. Pursuant to the terms of this agreement, the Company received a total purchase price of $1.15 million during the quarter ended Ap ril 3, 2016, plus approximately $315,000 for the purchase of inventory on hand on the closing date. The Purchaser also assume d specified liabilities of the Company , including the Company’s existing leases for the Purchased Restaurants located in Bolingbr ook, North Riverside and Orland Park, Illinois. As a result of this asset sale, the Company recognized a pretax $1.1 million gain during the quarter ended April 3, 2016, primarily due to the write-off of the remaining $1.3 million deferred rent liability a ssociated with the leases assumed by the Purchaser, discussed above. The net assets and liabilities of the Purchased Restaurants associated with this transaction we re included in assets and liabilities held for sale on the accompanying Consolidated Bala nce Sheets at January 3, 2016. No related assets or liabilities remain at April 3, 2016. The carrying value of the assets and liabilities included in the asset sale was as follows (in thousands): (in thousands) January 3, 2016 Accounts receivable, net $ 65 Inventories 344 Prepaid expenses and other current assets 30 Total current assets 439 Property, equipment and leasehold improvements, net 991 Total assets $ 1,430 Accounts payable $ 10 Accrued compensation and benefits 96 Other current liabilities 389 Total current liabilities 495 Other liabilities 1,252 Total liabilities $ 1,747 The operating results of the Purchased Restaurants for the three months ended April 3, 2016 and March 29, 2015 are summarized below. These results include costs directly attributable to the components of the businesses which were divested. Interest expense of $ 32,000 and $ 7,000 were allocated to discontinued operations for the three months ended April 3, 2016 and March 29, 2015, respectively, based upon the portion of the borrowing base associated with discontinue operations. Income tax expense of $ 3 30,000 and $ 113,000 for the three months ended April 3, 2016 and March 29, 2015, respectively have also been allocated to discontinued operations. These adjustments have been made for all periods presented. Three Months Ended (in thousands) April 3, 2016 March 29, 2015 Revenue $ 2,365 $ 4,363 Income from operations $ 1,042 $ 209 Income from discontinued operations, net of income taxes $ 681 $ 89

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	3 Months Ended
	Apr. 03, 2016
Variable interest entity not primary beneficiary abstract
Variable interest entity disclosure [Text Block]	(14) Variable Interest Entities Once an entity is determined to be a variable interest entity (VIE), the party with the controlling financial interest, the primary beneficiary, is required to consolidate it. The Company has an installment agreement with a franchisee as the result of refranchising its Lincoln, Nebraska restaurant. While the franchise meets the definition of a VIE, the owners of the franchise operations are the primary beneficiaries of the entities, not the Company. Therefore, the fra nchise operations are not required to be consolidated in the Company’s consolidated financial statements. On August 11, 2015, the Company consummated the sale of its Greenwood, Indiana and Florence, Kentucky restaurants. In conjunction with tha t agreement, the Company entered into lease assignment agreements with the respective purchasers and landlords, releasing the Company of its obligations except in the event of default by the purchasers. As of April 3, 2016, the amount of the future lease payments for which the company would be liable in the event of a default are approximately $ 500,000 . An accrual related to any future obligation was not considered necessary at April 3, 2016 as the Company has determined the fair value of this guarantee w as zero as there was no indication that the purchasers would not be able to pay the required lease payments. While t his franchise meets the definition of a VIE, the owners of the franchise operations are the primary beneficiaries of the entities, not the Company. Therefore, the franchise operations are not required to be consolidated in the Company’s consolidated financial statements. On March 1, 2016, the Company consummated the sale of Chicago, Illinois restaurants. In conjunction with th at agreement, the Company entered into lease assignment agreements with the respective purchasers and three of the landlords, releasing the Company of its obligation s except in the event of default by the purchasers. As of April 3, 2016, the amount of the future lease payments for which the company would be liable in the event of a default are approximately $ 2.2 million. An accrual related to any future obligation was not considered necessary at April 3, 2016 as the Company has determined the fair value o f this guarantee was zero as there was no indication that the purchasers would not be able to pay the required lease payments. While t his franchise meets the definition of a VIE, the owners of the franchise operations are the primary beneficiaries of the entities, not the Company. Therefore, the franchise operations are not required to be consolidated in the Company’s consolidated financial statements.

LITIGATION

LITIGATION	3 Months Ended
	Apr. 03, 2016
Litigation [Abstract]
Litigation Disclosure [Text Block]	(15) L itigation In the normal course of business, the Company is involved in a number of litigation matters that are incidental to the operation of the business. These matters generally include, among other things, matters with regard to employment and general business-related issues. The Company currently believes that the resolution of any of these pending matters will not have a material adverse effect on its financial position or liquidity, but an adverse decision in more than one of t he matters could be material to its consolidated results of operations. Famous Dave’s of America, Inc.’s (“Famous Dave’s”) filed a complaint on July 14, 2015, against a group of former franchisees in California seeking injunctive relief and damages for: (1) Federal Trademark Infringement; (2) Federal Trademark Dilution; (3) Federal Unfair Competition; (4) Federal Trade Dress Dilution; (5) Trademark Infringement under California Business and Professions Code § 14200; (6) Trademark Dilution under California Business and Professions Code §14200; (7) Common Law Trademark Infringement; (8) Unfair Competition under California Business and Professions Code § 17200; (9) False Advertising; (10) Breach of Contract; (11) Breach of Implied Covenant of Good Faith and F air Dealing; and (12) Intentional Interference with Contract. The claims stem from the former franchisees breaches of their franchise agreements, including the failure to pay franchise fees and their continued operation of five restaurants utilizing Famous Dave’s intellectual property without authorization. After two defendants in the case, Kurt Schneiter and M Mart 1, filed a demurrer to the Complaint, Famous Dave’s filed an Amended Complaint on October 9, 2015, reasserting the same claims. The case is cap tioned Famous Dave’s of America, Inc., v. SR El Centro FD, Inc., et al., Case No. BC589329, and is currently pending before the Honorable Elihu M. Berle in the Superior Court of Los Angeles. On July 28, 2015, these franchisees (the “Plaintiffs”) filed a complaint against Famous Dave’s in the South Judicial District of the Superior Court of the County of Los Angeles. On March 10, 2016, Plaintiffs re-filed this Complaint as a First Amended Cross-Complaint [Famous Dave’s of America, Inc. v. SR El Centro, I nc., et al., Superior Court of the State of California, County of Los Angeles, Central Division, Case No. BC589329] alleging that Famous Dave’s breached the Franchise Agreements for these restaurants by failing to provide certain marketing support and acce ss to customer contact data, vendors, internet reporting and support to Plaintiffs, and failing to provide operations and preferred practices training to Plaintiffs’ designated representative. Plaintiffs further allege that such conduct by Famous Dave’s i s a breach of the covenant of good faith and fair dealing. Plaintiffs also allege that Famous Dave’s aided and abetted John and Allan Gantes in breach of their fiduciary duty to Plaintiffs. Plaintiffs are seeking compensatory damages in amount not less t han $20 million, punitive damages, costs and attorneys’ fees.

SUPPLEMENTAL CASH FLOWS INFORMA

SUPPLEMENTAL CASH FLOWS INFORMATION	3 Months Ended
	Apr. 03, 2016
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information Disclosures [Text Block]	(16 ) Supplemental Cash Flow Information Three Months Ended April 3, March 29, 2016 2015 (in thousands) Cash paid for interest $ 204 $ 183 Cash paid for income taxes, net of refunds $ 23 $ 67 Non-cash investing and financing activities: Increase in accrued property and equipment purchases $ (115) $ (8)

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
	Apr. 03, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recently Issued Accounting Pronouncement	( 17 ) Recently Issued Accounting Pronouncement In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). The amendments in ASU 2014-09 provide for a single, principles-based model for revenue recognition that replaces the existing revenue recognition guidance. In July 2015, the FASB defer red the effective date of ASU 2014-09 until annual and interim periods beginning on or after December 15, 2017 . It will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. It permits the use of either a retrospective or cumulative effect transition method and early adoption is not permitted. We have not yet selected a transition method and are in the process of evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items.” This update eliminates from GAAP the conce pt of extraordinary items. ASU 2015-01 is effective for the first interim period within fiscal years beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this ASU in the first quarter of 2016, but it had no impact on the consolidated financial statements . In April 2015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires debt issuance costs to be presented in the balance sheet as a reduction of the related debt liability rather than as an asset. The standard will become effective for annual periods beginning after December 15, 2015 and for interim periods beginning after December 15, 2016. Early adoption is permitted. The standard requires companies to apply the guidance retrospectively to all pri or periods. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which req uires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after Dec ember 15, 2018. Early adoption is permitted for all entities. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. The amendments in this ASU are effective for f iscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Apr. 03, 2016
Subsequent Events [Abstract]
Subsequent Events Disclosure [Text Block]	( 18 ) Subsequent Events The Company evaluated for the occurrence of subsequent events through the issuance date of the Company’s financial statements. No other recognized or non-recognized subsequent events occurred that require recognition or disclosure in the financial statements except as noted below. O n April 7, 2016, Richard Pawlowski, the Company’s Chief Financial Officer, tendered his resignation from the Company, to be effective April 11, 2016. On April 7, 2016, the Company entered into an employment agreement with Dexter Newman pursuant to which he will succeed Mr. Pawlowski as the Company’s Chief Financial Officer, commencing April 11, 2016. Summaries of Mr. Newman’s employment agreement and stock option agreement are included in Form 8 -K filed on April 7, 2016, copies of which are attached thereto as Exhibit 10.1 and 10.2.

NET INCOME PER COMMON SHARE (Ta

NET INCOME PER COMMON SHARE (Tables)	3 Months Ended
	Apr. 03, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Reconciliation [Table Text Block]	Three Months Ended (in thousands, except per share data) April 3, March 29, 2016 2015 Net income per common share – basic: Net income from continuing operations, net of taxes $ 149 $ 108 Net income from discontinued operations, net of taxes 681 89 Net income 830 197 Weighted average shares outstanding 6,948 7,107 Net income from continuing operations per common share – basic $ 0.02 $ 0.02 Net income from discontinued operations per common share – basic $ 0.10 $ 0.01 Net income per common share – basic $ 0.12 $ 0.03 Net income per common share – diluted: Net income from continuing operations, net of taxes $ 149 $ 108 Net income from discontinued operations, net of taxes 681 89 Net income 830 197 Weighted average shares outstanding 6,948 7,107 Dilutive impact of common stock equivalents outstanding 10 24 Adjusted weighted average shares outstanding 6,958 7,131 Net income from continuing operations per common share – diluted $ 0.02 $ 0.02 Net income from discontinued operations per common share – diluted $ 0.10 $ 0.01 Net income per common share – diluted $ 0.12 $ 0.03

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Apr. 03, 2016
Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets [Table Text Block]	(in thousands) Remaining estimated useful life (years) Original Cost Accumulated Amortization Net Book Value Less Current Portion (1) Non- Current Portion Balance at April 3, 2016 Lease interest assets 23.8 $ 1,417 $ (289) $ 1,128 $ (48) $ 1,080 Liquor licenses 1,810 --- 1,810 --- 1,810 Total $ 3,227 $ (289) $ 2,938 $ (48) $ 2,890 (in thousands) Remaining estimated useful life (years) Original Cost Accumulated Amortization Net Book Value Less Current Portion (1) Non- Current Portion Balance at January 3, 2016 Lease interest assets 24.1 $ 1,417 $ (277) $ 1,140 $ (48) $ 1,092 Liquor licenses 1,810 --- 1,810 --- 1,810 Total $ 3,227 $ (277) $ 2,950 $ (48) $ 2,902 (1) The current portion is included in prepaid expenses and other current assets on the consolidated balance sheets.

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Apr. 03, 2016
Accrued Liabilities, Current [Abstract]
Other Current Liabilities [Table Text Block]	April 3, January 3, (in thousands) 2016 2016 Gift cards payable $ 1,432 $ 1,616 Other liabilities 890 869 Accrued real estate taxes 574 33 Sales tax payable 535 674 Income tax payable 233 40 Deferred franchise fees 212 134 Accrued property and equipment purchases 148 40 $ 4,024 $ 3,406

OTHER LIABILITES (Tables)

OTHER LIABILITES (Tables)	3 Months Ended
	Apr. 03, 2016
Other Liabilities [Abstract]
Schedule Of Other Liabilities [Table Text Block]	April 3, January 3, (in thousands) 2016 2016 Deferred rent $ 7,350 $ 7,191 Other liabilities 375 455 Long term lease reserve 208 258 Long term deferred compensation 168 258 Asset retirement obligations 111 111 Income taxes payable 16 12 $ 8,228 $ 8,285

PERFORMANCE SHARES, STOCK OPT28

PERFORMANCE SHARES, STOCK OPTIONS, OTHER FORMS OF COMPENSATION, AND COMMON SHARE REPURCHASES (Tables)	3 Months Ended
	Apr. 03, 2016
Performance Shares, Stock Options, Other Forms Of Compensation And Common Share Repurchaces [Abstract]
Schedule of Stock-based Compensation Expense [Table Text Block]	Three Months Ended April 3, March 29, (in thousands) 2016 2015 Performance Shares and Performance Stock Units-2013 Program $ --- $ 28 Stock Options (69) 172 Restricted Stock and Restricted Stock Units 15 15 $ (54) $ 215 (1) The 2013 Program's stock-based compensation consists of both performance shares and performance stock units. (2) The three months ended April 3, 2016 includes the recapture of previously recorded stock-based compensation of approximately $126,000 due to the departure of our CFO.
Schedule Of Director Compensation [Table Text Block]	Three Months Ended April 3, March 29, 2016 2015 (in thousands) Stock-based compensation $ 15 $ 15 Stock option compensation 16 68 Cash compensation 14 77 Total board of directors' compensation $ 45 $ 160
Schedule Of Stock Options Activity [Table Text Block]	(number of options in thousands) Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Options outstanding at January 3, 2016 507 $ 16.66 5.3 Granted 53 17.66 Forfeited (53) 32.02 Options outstanding at April 3, 2016 507 13.95 5.2 Options exercisable at April 3, 2016 154 17.66 4.2 Weighted-average values and assumptions for valuing grants made: Three Months Ended April 3, 2016 Fiscal 2015 Weighted average fair value of options granted $ 1.80 $ 4.90 Expected life (in years) 3.6 3.3 Expected stock volatility 41.8 % 51.2 % Risk-free interest rate 1.0 % 1.9 %

ASSET IMPAIRMENT AND ESTIMATE29

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Tables)	3 Months Ended
	Apr. 03, 2016
Asset Impairment And Estimated Lease Terminations And Other Closing Costs [Abstract]
Asset impairment and estimated lease termination and other closing costs [Table Text Block]	Asset Impairment and Estimated Lease Termination and Other Closing Costs (in thousands): Three Months Ended Three Months Ended Restaurants Reason April 3, 2016 March 29, 2015 Richmond, VA area Costs for closed restaurants $ 5 $ 95 Miscellaneous Costs for closed restaurants 3 - Total $ 8 $ 95

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Apr. 03, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	Level 1 Level 2 Level 3 Total Balance at January 3, 2016 Assets Assets Held for Sale $ - $ 1,431 $ 780 $ 2,211 Property and Equipment $ - $ - $ 507 $ 507 Balance at April 3, 2016 Assets Property and Equipment $ - $ - $ 485 $ 485 1

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Apr. 03, 2016
Discontinued Operations And Disposal Groups [Abstract]
Discontinued Operations Balance Sheet Disclosures [Table Text Block]	(in thousands) January 3, 2016 Accounts receivable, net $ 65 Inventories 344 Prepaid expenses and other current assets 30 Total current assets 439 Property, equipment and leasehold improvements, net 991 Total assets $ 1,430 Accounts payable $ 10 Accrued compensation and benefits 96 Other current liabilities 389 Total current liabilities 495 Other liabilities 1,252 Total liabilities $ 1,747
Discontinued Operations Income Statement [Table Text Block]	Three Months Ended (in thousands) April 3, 2016 March 29, 2015 Revenue $ 2,365 $ 4,363 Income from operations $ 1,042 $ 209 Income from discontinued operations, net of income taxes $ 681 $ 89

SUPPLEMENTAL CASH FLOWS INFOR32

SUPPLEMENTAL CASH FLOWS INFORMATION (Tables)	3 Months Ended
	Apr. 03, 2016
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Three Months Ended April 3, March 29, 2016 2015 (in thousands) Cash paid for interest $ 204 $ 183 Cash paid for income taxes, net of refunds $ 23 $ 67 Non-cash investing and financing activities: Increase in accrued property and equipment purchases $ (115) $ (8)

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2016USD ($)	Mar. 29, 2015USD ($)
Franchisor Disclosure Line Items
Number Of Restaurants	178
Committed Restaurants	64
Number of States in which Entity Operates	33
Number of Commonwealths	1
Number of Canadian Provinces	1
Pre-opening expenses	$ 0	$ 1
Franchised Units [Member]
Franchisor Disclosure Line Items
Number Of Restaurants	141
Entity Operated Units [Member]
Franchisor Disclosure Line Items
Number Of Restaurants	37

NET INCOME PER COMMON SHARE (De

NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015
Earnings Per Share [Abstract]
Weighted average common shares outstanding basic	6,948,000	7,107,000
Basic net income per common share	$ 0.12	$ 0.03
Dilutive impact of common stock equivalents outstanding	10,000	24,000
Weighted average common shares outstanding diluted	6,958,000	7,131,000
Diluted net income per common share	$ 0.12	$ 0.03
Net income from continuing operations	$ 149	$ 108
Net income (loss) from discontinued operations, net of tax	681	89
Net income	$ 830	$ 197
Income (loss) from continuing operations per basic share	$ 0.02	$ 0.02
Income loss from discontinued operations per basic share	0.1	0.01
Income loss from continuing operations per diluted share	0.02	0.02
Income loss from discontinued operations per diluted share	$ 0.1	$ 0.01
Anti-dilutive Securities Excluded From Computation Of Earnings Per Share Amount	439,000

RESTRICTED CASH AND MARKETING35

RESTRICTED CASH AND MARKETING FUND (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Jan. 03, 2016
Restricted Cash [Abstract]
Restricted cash	$ 1,202	$ 1,087
Franchisee Marketing Fund Contribution Rate	1.00%

ALLOWANCE FOR DOUBTFUL ACCOUN36

ALLOWANCE FOR DOUBTFUL ACCOUNTS(Details) - USD ($)	Apr. 03, 2016	Jan. 03, 2016
Accounts Receivable Net [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 319,000	$ 246,000

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Apr. 03, 2016	Jan. 03, 2016
Indefinite Lived Intangible Assets [Abstract]
Indefinite Lived Intangible Assets	$ 1,810,000	$ 1,810,000
Finite-Lived Intangible Assets [Abstract]
Weighted average amortization period (in years)	23 years 9 months 23 days	24 years 1 month 7 days
Lease interest asset, gross	$ 1,417,000	$ 1,417,000
Net book value of lease interest assets	1,128,000	1,140,000
Current portion of lease interest assets	(48,000)	(48,000)
Non current portion of lease interest assets	1,080,000	1,092,000
Accumulated Amortization Lease Assets	(289,000)	(277,000)
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
Future Amortization Expense Next Five Years for Finite Lived Asset	47,500
Intangible Assets Net Excluding Goodwill [Abstract]
Intangible Assets Net	2,938,000	2,950,000
Intangible Original Cost	3,227,000	3,227,000
Intangible assets, noncurrent	$ 2,890,000	$ 2,902,000

CREDIT FACILITY AND DEBT COVE38

CREDIT FACILITY AND DEBT COVENANTS, LONG-TERM DEBT, AND FINANCING LEASE OBLIGATIONS (Details) - USD ($)	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015	Jan. 03, 2016
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,000,000
Letters Of Credit Maximum	2,000,000
Letters of Credit Outstanding, Amount	1,145,000
Line of Credit, Current	1,855,000		$ 0
Long-term debt, less current portion	0		10,200,000
Financing lease obligations, less current portion	$ 2,653,000		$ 2,757,000
Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Expiration Date	May 8, 2020
Long-term Debt, Weighted Average Interest Rate	3.68%	2.76%
Letters of Credit Outstanding, Amount	$ 1,145,000
Long-term Debt, Description		Principal amounts outstanding under the Facility bear interest either at an adjusted Eurodollar rate or “Base Rate” plus an applicable margin. The applicable margin depends on the Company’s Adjusted Leverage Ratio at the end of the previous quarter. For the three months ended April 3, 2016 and March 29, 2015, our weighted average interest rate for the Facility was 3.68% and 2.76%, respectively. Unused portions of the Facility are subject to a fee, which was 0.375% of the unused amount at April 3, 2016. Principal amounts outstanding under the Term Loan bear interest at the same rate as the Facility. The weighted average interest rate of the Term Loan for the three months ended April 3, 2016 and March 29, 2015 was 3.67% and 2.18%, respectively.
Long Term Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate	3.67%	2.18%
Long-term Debt, Current Maturities	$ 9,900,000
Long Term Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Long-term Debt, Current Maturities	$ 12,000,000

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Apr. 03, 2016	Jan. 03, 2016
Accrued Liabilities, Current [Abstract]
Gift cards payable	$ 1,432	$ 1,616
Other liabilities	890	869
Acccrued real estate taxes	574	33
Sales tax payable	535	674
Income taxes payable	233	40
Deferred franchise fees	212	134
Accrued property and equipment purchases	148	40
Total other current liabilities	$ 4,024	$ 3,406

OTHER LIABILITIES (Details)

OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Apr. 03, 2016	Jan. 03, 2016
Other Liabilities [Abstract]
Deferred rent	$ 7,350	$ 7,191
Other liabilities	375	455
Lease reserve longterm	208	258
Long term deferred compensation	168	258
Asset retirement obligations	111	111
Income Taxes Payable, Noncurrent	16	12
Total other liabilities	$ 8,228	$ 8,285

PERFORMANCE SHARES, STOCK OPT41

PERFORMANCE SHARES, STOCK OPTIONS, OTHER FORMS OF COMPENSATION, AND COMMON SHARE REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended	12 Months Ended
	Apr. 03, 2016	Jun. 28, 2015	Mar. 29, 2015	Jun. 29, 2014	Jun. 28, 2015	Jan. 03, 2016
Common Share Repurchases [Line Items]
Average Cost Per Repurchased Share	$ 28.92	$ 30.67
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Number of Shares Available for Grant	277,676
Allocated Share-based Compensation Expense	$ (54)		$ 215
Average Price of Shares Forfeited	$ 32.024	$ 31.25			$ 31.25
Board of Directors' Compensation [Abstract]
Board of Director Cash Compensation	$ 14		77
Total Boardof Directors Compensation	$ 45		$ 160
Fair Value Assumptions Expected Term	3 years 7 months 1118 days					3 years 3 months 1113 days
Expected stock volatility	41.80%					51.20%
Risk-free interest rate	1.00%					1.90%
Options Outstanding Rollforward [Abstract]
Outstanding options (in shares)	507,000	427,000			427,000	507,000
Outstanding Weighted Average Price	$ 13.945	$ 28.15			$ 28.15	$ 16.66
Options granted	53,000
Granted Weighted Average Exercise Price	$ 17.658
Options Forfeited	(53,000)
Stock Options Exercised Gross				0
Exercised Weighted Average Exercise Price				$ 0
Options canceled or expired (in shares)		(5,000)		0
Canceled or Expired Weighted Average Exercise Price		$ 10.98		$ 0
Options Outstanding Weighted Average Remaining Contractual Term	4 years 1 month 6 days	6 years 6 months 2190 days	5 years 2 months 5 days			5 years 3 months 1843 days
Options Exercisable	154,000
Exercisable Weighted Average Exercise Price	$ 17.658
Options Exercisable Weighted Average Remaining Contractual Term	4 years 2 months 12 days
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value	$ 1.8					$ 4.9
Shares Issued Net of Option Forfeitures		(75,000)			(75,000)
Stock Compensation Plan [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ (69)		$ 172
Two Thousand Twelve Repurchase Plan [Member]
Common Share Repurchases [Line Items]
Number Of Shares Authorized To Be Repurchased	1,000,000	1,000,000			1,000,000
Average Cost Per Repurchased Share					$ 18.57
Two Thousand Thirteen Program [Member] | Performance Shares [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	20,820
Two Thousand Thirteen Program [Member] | Performance Shares and Performance Stock Units [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted		22,300
Performance Share Programs Total [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 0		28
Director Program [Member] | Stock Compensation Plan [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	16		68
Restricted Stock And Restricted Stock Units [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 15		$ 15

RETIREMENT SAVINGS PLANS (Detai

RETIREMENT SAVINGS PLANS (Details) - USD ($)	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015	Jan. 03, 2016
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Defined Contribution Plan, Employer Matching Contribution, Percent	25.00%
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent	4.00%
Defined Contribution Plan, Employee Contribution	$ 92,000	$ 116,000
Defined Contribution Plan, Employer Match	$ 7,000	20,000
Deferred Compensation Arrangements [Abstract]
Deferred Compensation Arrangement with Individual, Defined Contribution Plan, Employer Matching Contribution, Percent	25.00%
Deferred Compensation Arrangements, Maximum Annual Contribution Per Employee, Percent	4.00%
Deferred Compensation Arrangements, Interest Paid, Percent	6.00%
Deferred Compensation Arrangement with Individual, Employee Contribution	$ 6,000	18,000
Deferred Compensation Arrangement with Individual, Employer Contribution	5,000	9,000
Deferred Compensation Arrangement with Individual, Distributions Paid	88,000	$ 113,000
Deferred Compensation Liability Current And Noncurrent	$ 288,000		$ 547,000

ASSET IMPAIRMENT AND ESTIMATE43

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015	Jan. 03, 2016
Impaired Long-Lived Assets Held and Used [Line Items]
Costs For Closed Restaurants	$ 8	$ 95
Property, equipment and leasehold improvements, net	31,895		$ 32,491
Impairment [Table]
Asset impairment and estimated lease termination and other closing costs	$ 8	$ 95

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Apr. 03, 2016	Jan. 03, 2016
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure		$ 2,211
Property and Equipment, Net Fair Value Disclosure	$ 485	507
Fair Value, Inputs, Level 1 [Member]
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure		0
Property and Equipment, Net Fair Value Disclosure	0	0
FairValueInputsLevel2Member
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure		1,431
Property and Equipment, Net Fair Value Disclosure	0	0
Fair Value Inputs Level 3 [Member]
Assets Fair Value Disclosure [Abstract]
Assets Held For Sale Long Lived Fair Value Disclosure		780
Property and Equipment, Net Fair Value Disclosure	$ 485	$ 507

DISCONTINUED OPERATIONS (DETAIL

DISCONTINUED OPERATIONS (DETAILS) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015	Jan. 03, 2016
Impaired Long-Lived Assets Held for Sale [LineItems]
Accounts receivable, net			$ 65
Inventories			344
Prepaid expenses and other current assets			30
Total current assets			439
Property, equipment and leasehold improvements, net			991
Total assets			1,430
Accounts payable			10
Accrued compensation and benefits			96
Other current liabilities			389
Total current liabilities			495
Other liabilities			1,252
Total liabilities	$ 0		$ 1,747
Revenues	2,365	$ 4,363
Income from operations	1,042	209
Net income (loss) from discontinued operations, net of tax	681	89
Interest expense	32	7
Income tax expense	$ 330	$ 113

VARIABLE INTEREST ENTITY (Detai

VARIABLE INTEREST ENTITY (Details) $ in Thousands	Apr. 03, 2016USD ($)
Kentucky Restaurants [Member]
Variable Interest Entity [Line Items]
GuaranteeObligationsMaximumExposure	$ 500
Chicago Restaurants [Member]
Variable Interest Entity [Line Items]
GuaranteeObligationsMaximumExposure	$ 2,200

SUPPLEMENTAL CASH FLOWS INFOR47

SUPPLEMENTAL CASH FLOWS INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2016	Mar. 29, 2015
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	$ 204	$ 183
Income Taxes Paid, Net	23	67
Accrued property and equipment purchases	$ (115)	$ (8)