BBQ (BBQ) 10-Q 13 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 01, 2018	Aug. 10, 2018
Document and entity information [Abstract]
Document type	10-Q
Document period end date	Jul. 1, 2018
Document Period Focus	Q2
Amendment flag	false
Document Fiscal Year Focus	2,018
Entity registrant name	FAMOUS DAVES OF AMERICA INC
Entity central index key	1,021,270
Entity current reporting status	Yes
Current fiscal year end date	--12-30
Entity filer category	Smaller Reporting Company
Entity common stock shares outstanding		9,091,726
TradingSymbol	DAVE

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 10,309	$ 8,836
Restricted cash	1,269	1,590
Accounts receivable, net of allowance for doubtful accounts of $478,000 and $592,000, respectively	4,091	3,768
Inventories	602	633
Prepaid income taxes and income taxes receivable		689
Prepaid expenses and other current assets	964	793
Assets held for sale		475
Total current assets	17,235	16,784
Property, equipment and leasehold improvements, net	10,229	11,442
Other assets:
Intangible assets, net	1,422	1,840
Deferred tax asset	6,402	5,823
Other assets	1,499	1,018
Total assets	36,787	36,907
Current liabilities:
Current portion of long-term debt and financing lease obligation	1,516	1,307
Accounts payable	3,514	4,365
Accrued compensation and benefits	861	1,545
Other current liabilities	2,586	3,118
Total current liabilities	8,477	10,335
Long-term liabilities:
Long-term debt, less current portion	3,252	7,932
Financing lease obligations, less current portion		1,196
Other liabilities	5,099	3,963
Total liabilities	16,828	23,426
Shareholders' equity:
Common stock, $.01 par value, 100,000 shares authorized, 9,087 and 7,376 shares issued and outstanding at April 1, 2018 and December 31, 2017, respectively	91	70
Additional paid-in capital	7,249	1,460
Retained earnings	12,619	11,951
Total shareholders' equity	19,959	13,481
Total liabilities and shareholders' equity	$ 36,787	$ 36,907

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 478	$ 592
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	100,000	100,000
Common stock issued (in shares)	9,087	7,376
Common Stock, Shares, Outstanding	9,087	7,376

Consolidated Statement of Opera

Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Revenue:
Total Revenue	$ 14,538	$ 19,050	$ 27,382	$ 35,998
Costs and expenses:
Food and beverage costs	3,099	4,404	5,816	8,338
Labor and benefits costs	3,361	5,176	6,557	9,984
Operating expenses	2,894	4,256	5,735	8,362
Depreciation and amortization	309	541	702	1,104
General and administrative expenses	2,111	3,494	3,985	8,042
National advertising fund expenses	529		998
Asset impairment, estimated lease termination and other closing costs	216	3,473	112	4,606
Net loss (gain) on disposal of property	30	15	29	16
Total costs and expenses	12,549	21,359	23,934	40,452
Income (loss) from operations	1,989	(2,309)	3,448	(4,454)
Other expense:
Interest expense	(197)	(170)	(342)	(357)
Interest income	20		25
Total other expense	(177)	(170)	(317)	(357)
Income (loss) before income taxes	1,812	(2,479)	3,131	(4,811)
Income tax (expense) benefit	(420)	839	(741)	1,743
Net income (loss) from continuing operations	1,392	(1,640)	2,390	(3,068)
Net income from discontinued operations, net of tax		379		561
Net income (loss)	$ 1,392	$ (1,261)	$ 2,390	$ (2,507)
Basic net income (loss) per share - continuing operations	$ 0.16	$ (0.24)	$ 0.29	$ (0.44)
Basic net income per share - discontinued operations		0.05		0.08
Basic net income (loss) per share	0.16	(0.18)	0.29	(0.36)
Diluted net income (loss) per share - continuing operations	0.16	(0.24)	0.29	(0.44)
Diluted net income per share - discontinued operations		0.05		0.08
Diluted net income (loss) per share	$ 0.16	$ (0.18)	$ 0.29	$ (0.36)
Weighted average common of shares outstanding - basic	8,809	6,955	8,108	6,955
Weighted average common shares outstanding - diluted	8,835	6,955	8,131	6,955
Restaurant Sales
Revenue:
Total Revenue	$ 9,955	$ 14,714	$ 18,668	$ 27,663
Franchise Royalty and Fees
Revenue:
Total Revenue	3,753	4,039	7,161	7,821
Franchisee National Advertising Fund Contributions
Revenue:
Total Revenue	529		998
Licensing and Other Revenue
Revenue:
Total Revenue	$ 301	$ 297	$ 555	$ 514

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - 6 months ended Jul. 01, 2018 - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in Shares) at Dec. 31, 2017	7,376
Balance at Dec. 31, 2017	$ 70	$ 1,460	$ 11,951	$ 13,481
Common stock issued (in shares)	1,582
Common stock issued	$ 18	5,131		$ 5,149
Exercise of stock options (in shares)	104			125
Exercise of stock options	$ 2	406		$ 408
Stock-based compensation	25
Stock-based compensation	$ 1	252		253
Net income			2,390	2,390
Balance (in Shares) at Jul. 01, 2018	9,087
Balance at Jul. 01, 2018	$ 91	$ 7,249	12,619	19,959
Cumulative effect of change in accounting principle			$ (1,722)	$ (1,722)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017
Cash flows from operating activities:
Net income (loss) from continuing operations	$ 2,390	$ (3,068)
Adjustments to reconcile net income to cash flows provided by operations:
Depreciation and amortization	702	1,104
Noncash Asset Impairment, Estimated Lease Termination and Other Closing Closts	(268)	3,900
Net loss (gain) on disposal of property	29	16
Amortization of deferred financing costs	90	16
Amortization of lease interest assets	18	18
Deferred income taxes		240
Deferred rent	(338)	280
Bad debts (recovery) expense	(25)	313
Stock-based compensation	167	131
Restricted cash	321	74
Accounts receivable, net	(298)	(236)
Inventories	31	43
Prepaid income taxes and income taxes receivable	689	(1,493)
Prepaid expenses and other current assets	(171)	(531)
Other assets	167
Accounts payable	(851)	619
Accrued compensation and benefits	(762)	527
Other current liabilities	(202)	(763)
Other liabilities	(334)	70
Cash flows provided by continuing operating activities	1,355	1,260
Cash flows provided by discontinued operating activities		894
Cash flows provided by operating activities	1,355	2,154
Cash flows from investing activities:
Proceeds from the sale of assets	1,187
Advances on note receivable	(648)
Purchases of property, equipment and leasehold improvements	(290)	(234)
Cash flows (used for) provided by continuing investing activities	249	(234)
Cash flows used for discontinued investing activities		(42)
Cash flows used for investing activities	249	(276)
Cash flows from financing activities:
Payments for debt issuance costs		(15)
Payments on long-term debt and financing lease obligations	(5,757)	(913)
Proceeds from sale of common stock	5,132
Proceeds from stock options exercised	494
Cash flows provided by (used for) financing activities	(131)	(928)
Increase in cash and cash equivalents	1,473	950
Cash and cash equivalents, beginning of year	8,836	4,450
Cash and cash equivalents, end of period	10,309	5,400
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	248	336
Cash paid (refunds received) for income taxes, net	5	(288)
Change in deferred taxes, recognized in additional paid-in capital		55
Increase (decrease) in accrued property and equipment purposes	$ (7)	$ (2)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jul. 01, 2018
Nature Of Business And Significant Accounting Policies [Abstract]
Nature Of Business And Significant Accounting Policies [Text Block]	(1) Basis of Presentation Famous Dave’s of America, Inc. (“Famous Dave’s” or the “Company”) was incorporated in Minnesota on March 14, 1994. The Company develops, owns, operates and franchises restaurants under the name "Famous Dave’s." As of July 1, 2018, there were 150 Famous Dave’s restaurants operating in 33 states, the Commonwealth of Puerto Rico, Canada, and the United Arab Emirates, including 15 Company-owned restaurants and 135 franchise-operated restaurants. An additional 59 franchise-operated restaurants were committed to be developed through signed area development agreements as of July 1, 2018. These consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) Rules and Regulations. These unaudited consolidated financial statements represent the consolidated financial statements of the Company and its subsidiaries as of July 1, 2018 and December 31, 2017 and for the three and six months ended July 1, 2018 and July 2, 2017. The information furnished in these consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2017 as filed with the SEC on March 5, 2018. Due to the seasonality of the Company’s business, revenue and operating results for the three and six months ended July 1, 2018 are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. Reclassifications Certain prior period amounts have been reclassified to conform to the current period’s presentation. These reclassifications did not have an impact on the reported net income (loss) for any of the periods presented. Income Taxes The Company maintains a federal deferred tax asset (“DTA”) in the amount of $6.4 million and $5.8 million as of July 1, 2018 and December 31, 2017, respectively. The Company evaluates the DTA on a quarterly basis to determine whether current facts and circumstances indicate that the DTA may not be fully realizable. As of July 1, 2018, the Company concluded that the DTA is fully realizable and that a valuation allowance was not considered necessary; however, the Company will continue to evaluate the asset on a quarterly basis until the DTA has been fully utilized. The following table presents the Company’s effective tax rates for the periods presented: Three Months Ended Six Months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Effective tax rate 23.2 % 33.8 % 23.7 % 36.2 % The net decrease in the Company’s effective tax rate for the three and six months ended July 1, 2018 was primarily a result of federal tax reform, signed into law on December 22, 2017, which reduced the Company’s federal statutory tax rate to 21%. The Company provides for income taxes based on its estimate of federal and state income tax liabilities. These estimates include, among other items, effective rates for state and local income taxes, allowable tax credits for items such as taxes paid on reported tip income, estimates related to depreciation and amortization expense allowable for tax purposes, and the tax deductibility of certain other items. The Company’s estimates are based on the information available at the time that the Company prepares the income tax provision. The Company generally files its annual income tax returns several months after its fiscal year-end. Income tax returns are subject to audit by federal, state, and local governments, generally years after the tax returns are filed. These returns could be subject to material adjustments or differing interpretations of the tax laws. Restricted cash and marketing fund The Company has a system-wide marketing development fund, to which Company-owned restaurants, in addition to the majority of franchise-operated restaurants, contribute a percentage of net sales, currently 1.0%, for use in public relations and marketing development efforts. The assets held by this fund are considered to be restricted. Accordingly, the Company reflects the cash related to this fund within restricted cash and reflects the liability within accounts payable on the Company’s consolidated balance sheets. The Company had approximately $1 million and $1.3 million in this fund as of July 1, 2018 and December 31, 2017, respectively. In conjunction with the Company’s credit agreements, the Company has deposited amounts for undrawn letters of credit in cash collateral accounts. The Company had approximately $246,000 and $298,000 in restricted cash as of July 1, 2018 and December 31, 2017, respectively, related to these undrawn letters of credit. Concentrations of Credit Risk As of July 1, 2018, the Company had receivables from a franchisee of approximately $574,000. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014‑09, Revenue from Contracts with Customers. The FASB issued ASU No. 2016‑08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” in March 2016, ASU 2016‑10 “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” in April 2016, ASU 2016‑11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014‑09 and 2014‑16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting” in May 2016 and ASU 2016‑12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” in May 2016. These new standards provide for a single, principles-based model for revenue recognition that replaces the existing revenue recognition guidance. In July 2015, the FASB deferred the effective date of ASU 2014‑09 until annual and interim periods beginning on or after December 15, 2017. The new guidance permitted the use of either a full retrospective or modified retrospective transition method and early adoption was permitted. The Company has adopted this standard beginning with fiscal year 2018 utilizing the modified retrospective transition method, applied to all contracts. The new guidance did not impact the timing of revenue recognition on franchise royalty revenues, restaurant and merchandise sales or licensing revenue. Although the recognition of contributions from franchisees to the Company’s system-wide Public Relations and Marketing Development Fund (the “NAF”) did not change, the Company, beginning in fiscal 2018, now reports these contributions on a gross basis within the franchisee national advertising fund contributions line item on the consolidated statements of operations. Beginning in fiscal 2018, the Company recognizes franchise fee revenue on a straight-line basis over the life of the related franchise agreements and any exercised renewal periods. Cash payments are due upon the opening of a new restaurant or upon the execution of a renewal of the related franchise agreement. The Company’s performance obligation with respect to franchise fee revenues consists of a license to utilize the Company’s brand for a specified period of time, which is satisfied equally over the life of each franchise agreement. Area development fees are deferred until a new restaurant is opened pursuant to the area development agreement, at which time revenue is recognized on a straight-line basis over the life of the franchise agreement. Cash payments for area development agreements are typically due when an area development agreement has been executed. Gift card breakage revenue is recognized proportionately as gift cards are redeemed utilizing an estimated breakage rate based on the Company’s historical experience. Gift card breakage revenue is reported within the licensing and other revenue line item of the consolidated statements of operations. The Company’s revenue is generally disaggregated within the consolidated statements of operations; however, within the franchise fee revenue line item of the consolidated statements of operations, the Company recognized approximately $56,000 and $112,000 of franchise fee revenue related to the adoption of the new revenue standard during the three and six months ended July 1, 2018, respectively. Gift card breakage revenue was not material to the Company’s consolidated financial statements. The Company recognized revenue related to gift cards of approximately $68,000 and $176,000 during the three and six months ended July 1, 2018, which is reflected in the restaurant sales, net, line item of its consolidated statements of operations. As of July 1, 2018, gift cards payable of approximately $865,000 is expected to be recognized as revenue over the next 12 months, as they are redeemed. The following table summarizes the impact of the adoption of the new revenue standard on the Company’s previously reported consolidated balance sheets: (in thousands) December 31, 2017 New revenue standard adjustments January 1, 2018 Deferred tax asset, net $ 5,823 $ 579 $ 6,402 Other current liabilities 3,118 224 3,342 Other liabilities 3,963 2,077 6,040 Retained earnings 11,951 (1,722) 10,229 The increases to other current liabilities and other liabilities relate to deferred franchise fee revenue. The increase to deferred tax asset, net is related to the tax effects of these adjustments to deferred franchise fee revenue. These adjustments resulted in a net decrease to retained earnings as of the adoption date. Contract liabilities consist of deferred revenue resulting from franchise fees paid by franchisees. We classify these liabilities within other current liabilities and other liabilities within our consolidated balance sheets based on the expected timing of revenue recognition associated with these liabilities. The following table reflects the change in contract liabilities between the date of adoption (January 1, 2018) and July 1, 2018: (in thousands) Balance, January 1, 2018 $ 2,370 Revenue recognized (112) Balance, July 1, 2018 $ 2,258 The following table illustrates estimated revenues expected to be recognized in the future related to unsatisfied performance obligations as of July 1, 2018: (in thousands) Fiscal Year 2018 $ 113 2019 225 2020 218 2021 206 2022 190 Thereafter 1,306 Total $ 2,258 Adoption of the new revenue standard had no impact on the Company’s cash flows from operating, investing or financing activities. Recently Issued Accounting Pronouncements 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 fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for all entities. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), which allows entities to initially apply the new lease standard as of the adoption date instead of at the beginning of the earliest period presented in the financial statements. The new lease standard 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 expects to adopt this new standard as of the effective date and believes that it will have a material impact because of the Company’s significant leasing activity. The Company has completed its analysis of leases and is currently evaluating the impact that the new leasing standard will have on its consolidated financial statements, which the Company believes will be significant, and is beginning to develop controls around the implementation of Topic 842. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Under the updated standard, an entity should apply the requirements of Topic 718 to nonemployee awards, except for specific guidance on inputs to an option-pricing model and the attribution of cost. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in the grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling or goods or services as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company expects to adopt this new standard as of the effective date. The Company does not believe that adoption of the new standard will have a material impact on its consolidated financial statements.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jul. 01, 2018
Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	(2) Intangible Assets, net The 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. A reconciliation of the Company’s intangible assets as of July 1, 2018 and December 31, 2017, respectively, are presented in the table below: (in thousands) July 1, 2018 December 31, 2017 Lease interest assets, gross carrying amount $ 1,091 $ 1,091 Lease interest assets, accumulated amortization (304) (286) Lease interest assets, net carrying amount 787 805 Liquor licenses 635 1,035 Intangible assets, net $ 1,422 $ 1,840 The following table provides the projected future amortization of lease interest assets for the next five years, as of July 1, 2018: (in thousands) July 1, 2018 Fiscal 2018 $ 18 Fiscal 2019 36 Fiscal 2020 36 Fiscal 2021 36 Fiscal 2022 36 Thereafter 625 $ 787

LONG-TERM DEBT AND FINANCING LE

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS	6 Months Ended
	Jul. 01, 2018
Debt Disclosure [Abstract]
Long-term Debt and Financing Lease Obligations [Text Block]	(3) Long-Term Debt and Financing Lease Obligations Long-term debt The Company repaid its term loan during the six months ended July 1, 2018. Long-term debt consisted of the following at: (in thousands) July 1, 2018 December 31, 2017 Real Estate Loan $ 3,519 $ 3,581 Term Loan — 5,515 Less: deferred financing costs (139) (224) Less: current portion of long-term debt (128) (940) Long-term debt, less current portion $ 3,252 $ 7,932 The weighted-average interest rate of long-term debt outstanding as of July 1, 2018 and December 31, 2017 was 4.30% and 4.27%, respectively. The Company is subject to various financial and non-financial covenants on its long-term debt, including a debt-service coverage ratio. As of July 1, 2018, the Company was compliant with all of its covenants. Financing Lease Obligation Financing lease obligations consisted of the following at: ( in thousands ) July 1, 2018 December 31, 2017 Financing lease obligation $ 1,396 $ 1,576 Less: deferred financing costs (8) (13) Less: current portion of financing lease obligation (1,388) (367) Financing lease obligation, less current portion $ — $ 1,196

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	6 Months Ended
	Jul. 01, 2018
Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets [Text Block]	(4) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following at: (in thousands) July 1, 2018 December 31, 2017 Prepaid expenses $ 707 $ 362 Prepaid insurance 257 225 Deferred offering costs — 206 $ 964 $ 793

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	6 Months Ended
	Jul. 01, 2018
Accrued Liabilities, Current [Abstract]
Other Current Liabilities Disclosure [Text Block]	(5) Other Current Liabilities Other current liabilities consisted of the following at: (in thousands) July 1, 2018 December 31, 2017 Gift cards payable $ 865 $ 1,000 Miscellaneous other current liabilities 798 668 Lease reserves, current 401 1,165 Sales tax payable 284 242 Accrued real estate tax — 26 Accrued income tax 2 — Deferred franchise fees 225 — Accrued property and equipment purchases 11 17 Other current liabilities $ 2,586 $ 3,118

OTHER LIABILITIES

OTHER LIABILITIES	6 Months Ended
	Jul. 01, 2018
Other Liabilities [Abstract]
Other Liabilities Disclosure [Text Block]	(6) Other Liabilities Other liabilities consisted of the following at: (in thousands) July 1, 2018 December 31, 2017 Deferred rent $ 2,052 $ 2,463 Deferred franchise fees 2,033 — Miscellaneous other liabilities 551 730 Asset retirement obligations 119 119 Accrual for uncertain tax position 15 15 Long term lease reserve 199 514 Long term deferred compensation 130 122 Other liabilities $ 5,099 $ 3,963

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jul. 01, 2018
Stock-Based Compensation [Abstract]
Stock-Based Compensation	(7) Stock-based Compensation Effective May 5, 2015, the Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”), pursuant to which the Company 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. The Company also maintains 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.” The 2005 Plan prohibits the granting of incentives after May 12, 2015, the tenth anniversary of the date the 2005 Plan was approved by the Company’s shareholders. Nonetheless, the 2005 Plan will remain in effect until all outstanding incentives granted thereunder have either been satisfied or terminated. As of July 1, 2018, there were 275,477 shares available for grant pursuant to the 2015 Plan. For purposes of net income (loss) per share, there were approximately 102,000 and 629,000 stock options outstanding as of July 1, 2018 and July 2, 2017, respectively that were not included in the computation of diluted net income (loss) per share because their impact was antidilutive. As of July 1, 2018, the total compensation cost related to unvested stock option awards was approximately $599,000, which is expected to be recognized over a period of approximately 3.20 years. Stock options granted to employees and directors generally vest over two to five years, in monthly or annual installments, as outlined in each agreement. Options generally expire ten years from the date of grant. Compensation expense equal to the grant date fair value of the options is recognized in general and administrative expense over the applicable service period. The incentive compensation of the Company’s Chief Executive Officer is tied to increases in the Company’s share price and calls for the issuance of freely tradable shares of the Company’s common stock upon the achievement of certain milestones. The Company utilizes the Black-Scholes option pricing model when determining the compensation cost associated with stock options issued using the following significant assumptions: · Stock price – Published trading market values of the Company’s common stock as of the date of grant. · Exercise price – The stated exercise price of the stock option. · Expected life – The simplified method as outlined in ASC 718. · Expected dividend – The rate of dividends that the Company expects to pay over the term of the stock option. · Volatility – Actual volatility over the most recent historical period equivalent to the expected life of the option. · Risk-free interest rate – The daily United States Treasury yield curve rate. The Company recognized stock-based compensation expense in its consolidated statements of operations for the three and six months ended July 1, 2018 and July 2, 2017, respectively, as follows: Three Months Ended Six Months Ended (in thousands) July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Stock options $ 120 $ 16 $ 167 $ 116 Restricted stock — 8 — 15 $ 120 $ 24 $ 167 $ 131 Information regarding the Company’s stock options is summarized below: Weighted Average Remaining Number of Weighted Average Contractual (number of options in thousands) Options Exercise Price Life in Years Options outstanding at December 31, 2017 539 $ 6.60 6.6 Granted 90 7.67 Exercised (125) 5.26 Forfeited or expired (83) 5.65 Options outstanding at July 1, 2018 421 $ 7.30 Six Months Ended July 1, 2018 July 2, 2017 Weighted-average fair value of options granted during the period $ 3.73 $ 2.55 Expected life (in years) 6.2 5.0 Expected dividend $ — $ — Expected stock volatility 45.94 % 60.47 % Risk-free interest rate 2.9 % 2.2 %

ASSET IMPAIRMENT AND ESTIMATED

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS	6 Months Ended
	Jul. 01, 2018
Asset Impairment Charges [Abstract]
Asset Impairment, Estimated Lease Termination and Other Closing Costs [Text Block]	(8) Asset Impairment and Estimated Lease Termination and Other Closing Costs The following is a summary of asset impairment, estimated lease termination, and other closing costs for the three and six months ended July 1, 2018 and July 2, 2017. These costs are included in asset impairment and estimated lease termination and other closing costs in the consolidated statements of operations. Three Months Ended Six Months Ended (dollars in thousands) July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Asset impairments, net $ 2 $ 3,098 $ 152 $ 3,042 Lease termination (income) charges and related costs 90 353 (343) 1,535 Restaurant closure expenses 124 22 303 29 Asset impairment, estimated lease termination charges and other closing costs $ 216 $ 3,473 $ 112 $ 4,606

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jul. 01, 2018
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	(9) 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 observable 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 analysis developed within the entity to assess the fair value. For assets and liabilities falling within Level 3 of the fair value hierarchy, a change in the input assumptions used could result in a change in the estimated fair value of the asset or liability. Transfers in and out of levels will be based on the Company’s judgment of the availability of unadjusted quoted prices in active markets, other observable inputs, and non-observable inputs. The carrying amounts of cash and cash equivalents reported in the consolidated balance sheets approximates fair value based on current interest rates and short-term maturities. The carrying amount of accounts receivable approximates fair value due to the short-term nature of accounts receivable. The Company believes that the carrying amount of long-term debt approximates fair value due to the minimal difference between market interest rates and the fixed interest rate on a portion of the Company’s long-term debt, as well as that there has been no significant change in the credit risk or credit markets since origination. The following table summarizes property and equipment, net, measured at fair value in the Company’s consolidated balance sheets as of December 31, 2017: (in thousands) Level 1 Level 2 Level 3 Total Balance at December 31, 2017 Assets Property and Equipment, net $ — $ — $ 828 $ 828 Property and equipment, net recorded at fair value was valued based upon a broker’s estimate of value or estimated discounted future cash flows (Level 3). These assets were adjusted to net realizable value based upon the decision to dispose of the properties.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	6 Months Ended
	Jul. 01, 2018
Discontinued Operations And Disposal Groups [Abstract]
Disposal Groups Including Discontinued Operations Disclosure [Text Block]	(10) Discontinued Operations On November 1, 2017, the Company entered into agreements to sell eight restaurants in Maryland and Virginia (the “Mid-Atlantic Restaurants”) to Commonwealth Blue Ribbon Restaurants LLC and Capital Blue Ribbon Restaurants LLC (the “Mid-Atlantic Purchasers”). Pursuant to the first agreement (“Seven Restaurants Agreement”), the contract purchase price was $2,350,000 and included a repairs and maintenance credit of $750,000, which must be exhausted within one year. Also pursuant to the Seven Restaurants Agreement, the Company and the Mid-Atlantic Purchasers entered into a line of credit agreement for a maximum of $750,000 (the “LOC Agreement”) on which the Mid-Atlantic Purchasers can draw funds to pay for necessary repairs and maintenance work. The LOC Agreement has a four-year term with interest payable at a rate of 4.25% per annum. As of July 1, 2018, the outstanding balance on the LOC Agreement was approximately $648,000. Pursuant to the second agreement (the “Frederick Agreement”) to effect the sale of the Company’s Frederick, Maryland (“Frederick”) restaurant to Capital Blue Ribbon Restaurants, LLC, the contract purchase price for Frederick shall be an amount equal to (i) 50% of the rent, fees, charges, taxes and other amounts payable to the landlord or another third party pursuant to the lease agreement, plus (ii) 50% of that portion of Frederick’s EBITDA (as defined in the Frederick APA) attributable to Frederick that exceeds $25,000 in any 12-month period and $37,500 in any 18-month period; however, the Company has guaranteed the 12-month and 18-month EBITDA performance of Frederick. The Company expects to recognize a liability and corresponding expense related to this guarantee based on the amount that the Company would owe to the Mid-Atlantic Purchasers in the event that the restaurant was closed. The Mid-Atlantic Purchasers also purchased the inventory and petty cash on hand of the Mid-Atlantic Restaurants as of the closing date. The transaction resulted in the Company’s complete exit from the Mid-Atlantic market. There were no assets or liabilities related to the Mid-Atlantic Restaurants remaining as of July 1, 2018 or December 31, 2017. The following table provides certain information from the Company’s consolidated statements of operations related to the Mid-Atlantic Restaurants: Three Months Ended Six Months Ended (in thousands) July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Restaurant sales, net $ — $ 6,251 $ — $ 11,279 Cost of sales — (5,417) — (10,048) General and administrative expenses — (51) — (96) Depreciation and amortization — (192) — (384) Operating income — 591 — 751 Loss on disposal attributable to discontinued operations — — — (2) Income attributable to discontinued operations, before tax — 591 — 749 Income attributable to discontinued operations, tax effect — (212) — (188) Income attributable to discontinued operations, net of tax $ — $ 379 $ — $ 561

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	6 Months Ended
	Jul. 01, 2018
Variable interest entity not primary beneficiary abstract
Variable interest entity disclosure [Text Block]	(11) Variable Interest Entities A variable interest holder is considered to be the primary beneficiary of a variable interest entity (“VIE”) if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Once an entity is determined to be a VIE, the primary beneficiary is required to consolidate the entity. The Company has an installment agreement with one of its franchisees as the result of refranchising its Lincoln, Nebraska restaurant. This franchisee is a VIE; however, 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 August 11, 2015, the Company consummated the sale of its Greenwood, Indiana restaurant. In conjunction with that agreement, the Company entered into a lease assignment agreement with the purchaser and landlord, releasing the Company of its obligations except in the event of default by the purchaser. As of July 1, 2018, the amount of the future lease payments for which the Company would be liable in the event of a default are approximately $42,000. An accrual related to any future obligation was not considered necessary as of July 1, 2018 as the Company has determined the fair value of this guarantee was zero as there was no indication that the purchasers would not be able to pay the required lease payments. While this 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 its Chicago, Illinois-area restaurants. In conjunction with that agreement, the Company entered into lease assignment agreements with the respective purchasers and three of the landlords, releasing the Company of its obligations except in the event of default by the purchasers. As of July 1, 2018, the amount of the future lease payments for which the company would be liable in the event of a default is approximately $535,000. As of July 1, 2018, the Company had accrued approximately $499,000 related to the future obligations of these restaurants. While this 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 November 1, 2017, the Company sold its Frederick, Maryland restaurant. Pursuant to the terms of the Frederick Agreement, the Company remained the primary obligor of the lease. As of July 1, 2018, the amount of future lease payments for which the Company would be liable in the event of a default are approximately $665,000. An accrual related to the future lease obligation was not considered necessary as of July 1, 2018. See Note 10 “Discontinued Operations.”

LITIGATION

LITIGATION	6 Months Ended
	Jul. 01, 2018
Litigation [Abstract]
Litigation Disclosure [Text Block]	(12) Litigation 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 the matters could be material to its consolidated results of operations. The Company 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 Fair 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 captioned 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. By court order, dated June 6, 2016, Famous Dave’s successfully obtained a preliminary injunction, enjoining the former franchisee defendants from using Famous Dave’s intellectual property, including its trademarks and restaurant system. The preliminary injunction was the subject of an interlocutory appeal. The appeal was fully briefed and oral argument took place on August 10, 2017. On October 23, 2017, the California Court of Appeal rendered its decision in the appeal in Famous Dave’s favor, affirming and upholding in full the trial court’s preliminary injunction order. Famous Dave’s intends to vigorously pursue all remaining claims in the trial court. No trial date has been set as of yet. On July 28, 2015, this group of former 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, Inc., 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 access 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 is 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 than $20 million, punitive damages, costs and attorneys’ fees. The Company has reserved for a liability with respect to the Plaintiffs’ claim in the amount of $75,000 as of July 1, 2018.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jul. 01, 2018
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	(13) Related Party Transactions Anand D. Gala is a franchisee of the Company and currently serves as a director of the Company. Mr. Gala is the Founder, President and Chief Executive Officer of Gala Holdings International, a diversified holding company that conducts consulting, restaurant development and management operations. Charles Davidson is a franchisee of the Company and is the beneficial owner of approximately 18.7% of the Company’s common stock as of the date that these financial statements were available to be issued, by virtue of his ownership interest in Wexford Capital. The Company recently completed a rights offering, in which Wexford Capital purchased 352,845 shares of the Company’s common stock. The following table outlines amounts received from related parties during the three and six months ended July 1, 2018 and July 2, 2017: Three Months Ended Six Months Ended (in thousands) July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Revenues and NAF contributions - Anand Gala $ 412 $ 543 $ 794 $ 1,037 Revenues and NAF contributions - Charles Davidson 83 — 158 — The following table outlines accounts receivable from related parties as of July 1, 2018 and December 31, 2017: (in thousands) July 1, 2018 December 31, 2017 Accounts receivable, net - Anand Gala $ 296 $ 301 Accounts receivable, net - Charles Davidson 45 32

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jul. 01, 2018
Subsequent Events [Abstract]
Subsequent Events Disclosure [Text Block]	(14) 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 consolidated financial statements, except as noted below. On July 18, 2018, the Company and Clark Championship Products LLC (“Clark”), an entity owned by Travis Clark, became members of Mercury BBQ LLC (“Mercury”) for the purposes of building out and operating the inaugural Clark Crew BBQ restaurant in Oklahoma City, Oklahoma (the “Restaurant”). Clark will own 80% of the units outstanding of Mercury and the Company will own 20% of the units outstanding of Mercury. Mercury shall be governed by three managers, two of which will be appointed by the Company and one of which will be appointed by Clark. Also on July 18, 2018, the Company entered into a secured promissory note in the amount of $1.4 million (the “Loan”) with Mercury, the proceeds of which are required to be used for the build out of the Restaurant. The Loan bears interest at a rate of 10% per annum and requires payments of 100% of the excess monthly cash flows until the Loan and all interest accrued thereon is repaid. The Loan requires a balloon payment of unpaid principal and accrued interest on July 15, 2023 and may be prepaid at any time. Also on July 18, 2018, the Company and Clark entered into an intellectual property license agreement (the “License Agreement”) pursuant to which Clark granted to the Company an exclusive license to use and sublicense the patents, trademarks, trade names, service marks, logos and designs related to Clark Crew BBQ restaurants and products. The term of the License Agreement is indefinite and may only be terminated by mutual written consent, unless the Company breaches the License Agreement. On July 24, 2018, the Company repaid $740,000 on its real estate loan. On July 31, 2018, the Company purchased $4.0 million in 13-week treasury bills. On August 6, 2018, the Company took over the operations of the Famous Dave’s restaurant in Janesville, Wisconsin from a franchisee. The Company will purchase food, beverage and smallwares inventory on hand in an amount to be determined subsequent to the date that these financial statements were available to be issued. As of the date that these consolidated financial statements were available to be issued, the Company was still reviewing the financial information of the restaurant and, as such, it was impractical to include in these consolidated financial statements the pro forma effect of the acquisition.

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jul. 01, 2018
Schedule Of Effective Income Tax Rate Reconciliation [Table Text Block]	Three Months Ended Six Months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Effective tax rate 23.2 % 33.8 % 23.7 % 36.2 %
Schedule of change in contract liabilities	(in thousands) Balance, January 1, 2018 $ 2,370 Revenue recognized (112) Balance, July 1, 2018 $ 2,258
Schedule of estimated revenues expected to be recognized in the future related to unsatisfied performance obligations	(in thousands) Fiscal Year 2018 $ 113 2019 225 2020 218 2021 206 2022 190 Thereafter 1,306 Total $ 2,258
Accounting Standards Update 2014-09 [Member]
Schedule of cumulative impact of adoption of new revenue standard on previously reported balance sheet	(in thousands) December 31, 2017 New revenue standard adjustments January 1, 2018 Deferred tax asset, net $ 5,823 $ 579 $ 6,402 Other current liabilities 3,118 224 3,342 Other liabilities 3,963 2,077 6,040 Retained earnings 11,951 (1,722) 10,229

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jul. 01, 2018
Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets [Table Text Block]	(in thousands) July 1, 2018 December 31, 2017 Lease interest assets, gross carrying amount $ 1,091 $ 1,091 Lease interest assets, accumulated amortization (304) (286) Lease interest assets, net carrying amount 787 805 Liquor licenses 635 1,035 Intangible assets, net $ 1,422 $ 1,840
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	(in thousands) July 1, 2018 Fiscal 2018 $ 18 Fiscal 2019 36 Fiscal 2020 36 Fiscal 2021 36 Fiscal 2022 36 Thereafter 625 $ 787

LONG-TERM DEBT AND FINANCING 23

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS (Tables)	6 Months Ended
	Jul. 01, 2018
Debt Disclosure [Abstract]
Schedule Of Debt [Table Text Block]	(in thousands) July 1, 2018 December 31, 2017 Real Estate Loan $ 3,519 $ 3,581 Term Loan — 5,515 Less: deferred financing costs (139) (224) Less: current portion of long-term debt (128) (940) Long-term debt, less current portion $ 3,252 $ 7,932
Schedule Of Financing Lease Obligations [Table Text Block]	( in thousands ) July 1, 2018 December 31, 2017 Financing lease obligation $ 1,396 $ 1,576 Less: deferred financing costs (8) (13) Less: current portion of financing lease obligation (1,388) (367) Financing lease obligation, less current portion $ — $ 1,196

PREPAID EXPENSES AND OTHER CU24

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Jul. 01, 2018
Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets [Table Text Block]	(in thousands) July 1, 2018 December 31, 2017 Prepaid expenses $ 707 $ 362 Prepaid insurance 257 225 Deferred offering costs — 206 $ 964 $ 793

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jul. 01, 2018
Accrued Liabilities, Current [Abstract]
Other Current Liabilities [Table Text Block]	(in thousands) July 1, 2018 December 31, 2017 Gift cards payable $ 865 $ 1,000 Miscellaneous other current liabilities 798 668 Lease reserves, current 401 1,165 Sales tax payable 284 242 Accrued real estate tax — 26 Accrued income tax 2 — Deferred franchise fees 225 — Accrued property and equipment purchases 11 17 Other current liabilities $ 2,586 $ 3,118

OTHER LIABILITIES (Tables)

OTHER LIABILITIES (Tables)	6 Months Ended
	Jul. 01, 2018
Other Liabilities [Abstract]
Schedule Of Other Liabilities [Table Text Block]	(in thousands) July 1, 2018 December 31, 2017 Deferred rent $ 2,052 $ 2,463 Deferred franchise fees 2,033 — Miscellaneous other liabilities 551 730 Asset retirement obligations 119 119 Accrual for uncertain tax position 15 15 Long term lease reserve 199 514 Long term deferred compensation 130 122 Other liabilities $ 5,099 $ 3,963

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jul. 01, 2018
Stock-Based Compensation [Abstract]
Schedule of Share-Based Compensation [Table Text Block]	Three Months Ended Six Months Ended (in thousands) July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Stock options $ 120 $ 16 $ 167 $ 116 Restricted stock — 8 — 15 $ 120 $ 24 $ 167 $ 131
Schedule of Stock Options Roll Forward [Table Text Block]	Weighted Average Remaining Number of Weighted Average Contractual (number of options in thousands) Options Exercise Price Life in Years Options outstanding at December 31, 2017 539 $ 6.60 6.6 Granted 90 7.67 Exercised (125) 5.26 Forfeited or expired (83) 5.65 Options outstanding at July 1, 2018 421 $ 7.30
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]	Six Months Ended July 1, 2018 July 2, 2017 Weighted-average fair value of options granted during the period $ 3.73 $ 2.55 Expected life (in years) 6.2 5.0 Expected dividend $ — $ — Expected stock volatility 45.94 % 60.47 % Risk-free interest rate 2.9 % 2.2 %

ASSET IMPAIRMENT AND ESTIMATE28

ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Tables)	6 Months Ended
	Jul. 01, 2018
Asset Impairment Charges [Abstract]
Asset Impairment, Estimated Lease Termination and Other Closing Costs [Table Text Block]	Three Months Ended Six Months Ended (dollars in thousands) July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Asset impairments, net $ 2 $ 3,098 $ 152 $ 3,042 Lease termination (income) charges and related costs 90 353 (343) 1,535 Restaurant closure expenses 124 22 303 29 Asset impairment, estimated lease termination charges and other closing costs $ 216 $ 3,473 $ 112 $ 4,606

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jul. 01, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	(in thousands) Level 1 Level 2 Level 3 Total Balance at December 31, 2017 Assets Property and Equipment, net $ — $ — $ 828 $ 828

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	6 Months Ended
	Jul. 01, 2018
Discontinued Operations And Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations [Table Text Block]	Three Months Ended Six Months Ended (in thousands) July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Restaurant sales, net $ — $ 6,251 $ — $ 11,279 Cost of sales — (5,417) — (10,048) General and administrative expenses — (51) — (96) Depreciation and amortization — (192) — (384) Operating income — 591 — 751 Loss on disposal attributable to discontinued operations — — — (2) Income attributable to discontinued operations, before tax — 591 — 749 Income attributable to discontinued operations, tax effect — (212) — (188) Income attributable to discontinued operations, net of tax $ — $ 379 $ — $ 561

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jul. 01, 2018
Related Party Transactions [Abstract]
Schedule of Related Party Transactions [Table Text Block]	The following table outlines amounts received from related parties during the three and six months ended July 1, 2018 and July 2, 2017: Three Months Ended Six Months Ended (in thousands) July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Revenues and NAF contributions - Anand Gala $ 412 $ 543 $ 794 $ 1,037 Revenues and NAF contributions - Charles Davidson 83 — 158 — The following table outlines accounts receivable from related parties as of July 1, 2018 and December 31, 2017: (in thousands) July 1, 2018 December 31, 2017 Accounts receivable, net - Anand Gala $ 296 $ 301 Accounts receivable, net - Charles Davidson 45 32

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018USD ($)staterestaurant	Jul. 02, 2017	Jul. 01, 2018USD ($)staterestaurant	Jul. 02, 2017	Jan. 02, 2018USD ($)	Dec. 31, 2017USD ($)
Franchisor Disclosure Line Items
Number Of Restaurants | restaurant	150		150
Number of States in which Entity Operates | state	33		33
Effective Income Tax Rate, Continuing Operations	23.20%	33.80%	23.70%	36.20%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate			21.00%
Deferred Tax Assets, Net, Noncurrent	$ 6,402		$ 6,402		$ 6,402	$ 5,823
Franchisee Marketing Fund Contribution Rate			1.00%
Restricted Cash And Cash Equivalents	1,269		$ 1,269			1,590
Accounts receivable, net	4,091		4,091			3,768
Customer Concentration Risk [Member]
Franchisor Disclosure Line Items
Accounts receivable, net	$ 574		$ 574
Franchised Units [Member]
Franchisor Disclosure Line Items
Number Of Restaurants | restaurant	135		135
Committed Restaurants | restaurant	59		59
Entity Operated Units [Member]
Franchisor Disclosure Line Items
Number Of Restaurants | restaurant	15		15
Public Relations and Marketing Development Fund [Member]
Franchisor Disclosure Line Items
Restricted Cash And Cash Equivalents	$ 1,000		$ 1,000			1,300
Cash Restricted for Letters of Credit [Member]
Franchisor Disclosure Line Items
Restricted Cash And Cash Equivalents	$ 246		$ 246			$ 298

BASIS OF PRESENTATION (ASC 606)

BASIS OF PRESENTATION (ASC 606) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jul. 01, 2018	Jul. 01, 2018	Jan. 02, 2018	Jan. 01, 2018	Dec. 31, 2017
Cumulative effects of adoption of ASU 2014-09
Deferred tax asset	$ 6,402,000	$ 6,402,000	$ 6,402,000		$ 5,823,000
Other current liabilities	2,586,000	2,586,000	3,342,000		3,118,000
Other liabilities	5,099,000	5,099,000	6,040,000		3,963,000
Retained earnings	12,619,000	12,619,000	$ 10,229,000		11,951,000
Revenue from contract with customer
Gift cards payable	865,000	865,000			$ 1,000,000
Change in contract liabilities
Beginning balance, January 1, 2018		2,370,000
Revenue recognized		(112,000)
Ending balance, April 1, 2018	2,258,000	2,258,000
Estimated future revenues expected to be recognized for performance obligations
Revenue expected to be recognized as of April 1, 2018	2,258,000	$ 2,258,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-02
Estimated future revenues expected to be recognized for performance obligations
Revenue, remaining performance obligation, expected timing of satisfaction, period		6 months
Revenue expected to be recognized as of April 1, 2018	113,000	$ 113,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-31
Estimated future revenues expected to be recognized for performance obligations
Revenue, remaining performance obligation, expected timing of satisfaction, period		12 months
Revenue expected to be recognized as of April 1, 2018	225,000	$ 225,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-30
Estimated future revenues expected to be recognized for performance obligations
Revenue, remaining performance obligation, expected timing of satisfaction, period		12 months
Revenue expected to be recognized as of April 1, 2018	218,000	$ 218,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-04
Estimated future revenues expected to be recognized for performance obligations
Revenue, remaining performance obligation, expected timing of satisfaction, period		12 months
Revenue expected to be recognized as of April 1, 2018	206,000	$ 206,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-03
Estimated future revenues expected to be recognized for performance obligations
Revenue, remaining performance obligation, expected timing of satisfaction, period		12 months
Revenue expected to be recognized as of April 1, 2018	190,000	$ 190,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-02
Estimated future revenues expected to be recognized for performance obligations
Revenue, remaining performance obligation, expected timing of satisfaction, period
Revenue expected to be recognized as of April 1, 2018	1,306,000	$ 1,306,000
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Cumulative effects of adoption of ASU 2014-09
Deferred tax asset				$ 579,000
Other current liabilities				224,000
Other liabilities				2,077,000
Retained earnings				$ (1,722,000)
Gift Cards
Revenue from contract with customer
Revenue from contract with customer	68,000	176,000
Gift cards payable	865,000	865,000
Franchise Royalty and Fees
Revenue from contract with customer
Revenue from contract with customer	$ 56,000	$ 112,000

INTANGIBLE ASSETS, NET (Carryin

INTANGIBLE ASSETS, NET (Carrying Amounts) (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Intangible Assets Disclosure [Abstract]
Lease interest assets, gross carrying amount	$ 1,091	$ 1,091
Lease interest assets, accumulated amortization	(304)	(286)
Lease interest assets, net carrying amount	787	805
Liquor licenses	635	1,035
Intangible assets, net	$ 1,422	$ 1,840

INTANGIBLE ASSETS, NET (Amortiz

INTANGIBLE ASSETS, NET (Amortization Expense) (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Intangible Assets Disclosure [Abstract]
Fiscal 2,018	$ 18
Fiscal 2,019	36
Fiscal 2,020	36
Fiscal 2,021	36
Fiscal 2,022	36
Thereafter	625
Lease interest assets, net carrying amount	$ 787	$ 805

LONG-TERM DEBT AND FINANCING 36

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS (Narrative) (Details)	Jul. 01, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Long-term Debt, Weighted Average Interest Rate	4.30%	4.27%

LONG-TERM DEBT AND FINANCING 37

LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS (Long-Term Debt and Financing Lease) (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Less: current maturities	$ (1,516)	$ (1,307)
Long-term debt, less current portion	3,252	7,932
Financing lease obligations, less current portion		1,196
First Loan Agreement [Member]
Debt Instrument Carrying Amount	3,519	3,581
Second Loan Agreement [Member]
Debt Instrument Carrying Amount		5,515
Long-term Debt [Member]
Less: deferred financing fees	(139)	(224)
Less: current maturities	(128)	(940)
Financing Lease Obligations [Member]
Less: deferred financing fees	(8)	(13)
Less: current maturities	(1,388)	(367)
Financing Lease Obligations Total	$ 1,396	1,576
Financing lease obligations, less current portion		$ 1,196

PREPAID EXPENSES AND OTHER CU38

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure [Abstract]
Prepaid expenses	$ 707	$ 362
Prepaid insurance and other	257	225
Deferred Offering Costs		206
Prepaid expenses and other current assets	$ 964	$ 793

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Jan. 02, 2018	Dec. 31, 2017
Accrued Liabilities, Current [Abstract]
Gift cards payable	$ 865		$ 1,000
Miscellaneous other current liabilities	798		668
Lease reserves, current	401		1,165
Sales tax payable	284		242
Accrued real estate taxes			26
Accrued Income Taxes Current	2
Deferred franchise fees	225
Accrued property and equipment purchases	11		17
Total other current liabilities	$ 2,586	$ 3,342	$ 3,118

OTHER LIABILITIES (Details)

OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Jan. 02, 2018	Dec. 31, 2017
Other Liabilities [Abstract]
Deferred rent	$ 2,052		$ 2,463
Deferred franchise fees	2,033
Miscellaneous other liabilities	551		730
Asset retirement obligations	119		119
Accrual for uncertain tax position	15		15
Long term lease reserve	199		514
Long term deferred compensation	130		122
Total other liabilities	$ 5,099	$ 6,040	$ 3,963

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Number of Shares Available for Grant	275,477		275,477
Allocated Share-based Compensation Expense	$ 120	$ 24	$ 167	$ 131
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized	599		$ 599
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			3 years 2 months 12 days
Anti-dilutive Securities Excluded From Computation Of Earnings Per Share Amount			102,000	629,000
Employee [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Maximum [Member] | Employee [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			5 years
Minimum [Member] | Employee [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			2 years
Stock Option [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 120	16	$ 167	$ 116
Restricted Stock [Member]
Share-based Compensation Arrangement By Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		$ 8		$ 15

STOCK-BASED COMPENSATION (Optio

STOCK-BASED COMPENSATION (Options Rollforward) (Details) - $ / shares shares in Thousands	6 Months Ended	12 Months Ended
	Jul. 01, 2018	Dec. 31, 2017
Stock-Based Compensation [Abstract]
Outstanding options at beginning of period (in shares)	539
Options granted	90
Exercise of stock options (in shares)	(125)
Options forfeited or expired (in shares)	(83)
Outstanding options at end of period (in shares)	421	539
Outstanding Weighted Average Price at beginning of period	$ 6.60
Granted Weighted Average Exercise Price	7.67
Exercised Weighted Average Exercise Price	5.26
Forfeited or Expired Weighted Average Exercise Price	5.65
Outstanding Weighted Average Price at end of period	$ 7.30	$ 6.60
Options Outstanding Weighted Average Remaining Contractual Term	7 years 3 months 18 days	6 years 7 months 6 days

STOCK-BASED COMPENSATION (Valua

STOCK-BASED COMPENSATION (Valuation Assumptions) (Details) - $ / shares	6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017
Stock-Based Compensation [Abstract]
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value	$ 3.73	$ 2.55
Fair Value Assumptions Expected Term	6 years 2 months 12 days	5 years
Expected dividend	0.00%	0.00%
Expected stock volatility	45.94%	60.47%
Risk-free interest rate	2.90%	2.20%

ASSET IMPAIRMENT, ESTIMATED LEA

ASSET IMPAIRMENT, ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Impaired Long-Lived Assets Held and Used [Line Items]
Asset impairments, net	$ 2	$ 3,098	$ 152	$ 3,042
Asset impairment, estimated lease termination and other closing costs	216	3,473	112	4,606
Lease Termination Charges [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Business exit costs	90	353	(343)	1,535
Restaurant Closure Expenses [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Business exit costs	$ 124	$ 22	$ 303	$ 29

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) $ in Thousands	Dec. 31, 2017USD ($)
Assets Fair Value Disclosure [Abstract]
Property and Equipment, Net Fair Value Disclosure	$ 828
Fair Value Inputs, Level 3 [Member]
Assets Fair Value Disclosure [Abstract]
Property and Equipment, Net Fair Value Disclosure	$ 828

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details)	Nov. 01, 2017USD ($)restaurant	Jul. 02, 2017USD ($)	Jul. 02, 2017USD ($)	Jul. 01, 2018USD ($)
Impaired Long-Lived Assets Held for Sale [Line Items]
Restaurants sold, percentage of rent to be paid by purchaser	50.00%
Restaurants Sold, EBITDA Guarantee Percentage	50.00%
Restaurants Sold, EBITDA Guarantee, Twelve Month Threshold Amount	$ 25,000
Restaurants Sold, EBITDA Guarantee, Eighteen Month Threshold Amount	$ 37,500
Restaurant sales, net		$ 6,251,000	$ 11,279,000
Cost of sales		(5,417,000)	(10,048,000)
General and administrative expenses		(51,000)	(96,000)
Depreciation and amortization		(192,000)	(384,000)
Operating income		591,000	751,000
Gain (loss) on disposal attributable to discontinued operations			(2,000)
Income (loss) attributable to discontinued operations, before tax		591,000	749,000
Discontinued operations		(212,000)	(188,000)
Income (loss) attributable to discontinued operations, net of tax		$ 379,000	$ 561,000
Mid-Atlantic Restaurants [Member]
Impaired Long-Lived Assets Held for Sale [Line Items]
Number of Locations Sold | restaurant	8
Restaurants sold, contract purchase price, gross	$ 2,350,000
Restaurants sold, contract purchase price, credits	$ 750,000
Restaurants sold, duration of time to utilize credit	1 year
Restaurants sold, line of credit, maximum amount	$ 750,000
Restaurants Sold, Line of Credit Agreement, Term	4 years
Restaurants sold, Line of Credit Agreement, Interest Rate	4.25%
Financing Receivable, Gross				$ 648,000

VARIABLE INTEREST ENTITY (Detai

VARIABLE INTEREST ENTITY (Details)	Jul. 01, 2018USD ($)
Kentucky Restaurants [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Entity Maximum Loss, Exposure Amount	$ 42,000
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities	0
Chicago Restaurants [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Entity Maximum Loss, Exposure Amount	535,000
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities	499,000
Mid-Atlantic Restaurants [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Entity Maximum Loss, Exposure Amount	$ 665,000

LITIGATION (Details)

LITIGATION (Details) $ in Thousands	6 Months Ended
	Jul. 01, 2018USD ($)
Litigation [Abstract]
Loss Contingency, Damages Sought, Value	$ 20,000
Loss Contingency, Accrual, Current	$ 75

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Wexford Capital Ownership Percentage	18.70%		18.70%
Wexford Capital, Shares Purchased in Rights Offering			352,845
Director [Member]
Related Party Transaction [Line Items]
Revenues and NAF contributions	$ 412	$ 543	$ 794	$ 1,037
Accounts receivable from related parties	296		296		$ 301
Investor [Member]
Related Party Transaction [Line Items]
Revenues and NAF contributions	83		158
Accounts receivable from related parties	$ 45		$ 45		$ 32

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands	Jul. 31, 2018	Jul. 24, 2018	Jul. 01, 2018	Jul. 02, 2017	Jul. 18, 2018
Subsequent event line items
Payments on long-term debt and financing lease obligations		$ 740	$ 5,757	$ 913
Payments to Acquire Marketable Securities	$ 4,000
Subsequent Event [Member]
Subsequent event line items
Mercury BBQ, Ownership Percentage, Clark					80.00%
Mercury BBQ, Ownership Percentage, Company					20.00%
Mercury BBQ, Note Receivable, Maximum					$ 1,400
Mercury BBQ, Note Receivable, Interest Rate					10.00%
Mercury BBQ, Note Receivable, Percentage of Excess Cash Flows to Satisfy Note					100.00%