Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 29, 2013 | Jan. 24, 2014 | Jul. 12, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Popeyes Louisiana Kitchen, Inc. | ' | ' |
Trading Symbol | 'PLKI | ' | ' |
Entity Central Index Key | '0001041379 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 29-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-29 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 23,817,393 | ' |
Entity Public Float | ' | ' | $900,080 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $9.60 | $17 |
Accounts and current notes receivable, net | 8.9 | 7.3 |
Other current assets | 9.8 | 4.2 |
Advertising cooperative assets, restricted | 27.8 | 25.7 |
Total current assets | 56.1 | 54.2 |
Long-term assets: | ' | ' |
Property and equipment, net | 77.6 | 51.3 |
Goodwill | 11.1 | 11.1 |
Trademarks and other intangible assets, net | 53.4 | 53.9 |
Other long-term assets, net | 2.3 | 1.9 |
Total long-term assets | 144.4 | 118.2 |
Total assets | 200.5 | 172.4 |
Current liabilities: | ' | ' |
Accounts payable | 8.5 | 7.6 |
Other current liabilities | 8.1 | 5.9 |
Current debt maturities | 0.3 | 6 |
Advertising cooperative liabilities | 27.8 | 25.7 |
Total current liabilities | 44.7 | 45.2 |
Long-term liabilities: | ' | ' |
Long-term debt | 66.9 | 66.8 |
Deferred credits and other long-term liabilities | 30.1 | 26.2 |
Total long-term liabilities | 97 | 93 |
Commitments and contingencies | ' | ' |
Shareholders’ equity: | ' | ' |
Preferred stock ($.01 par value; 2,500,000 shares authorized; 0 issued and outstanding) | 0 | 0 |
Common stock ($.01 par value; 150,000,000 shares authorized; 23,784,041 and 23,907,428 shares issued and outstanding at the end of fiscal years 2013 and 2012, respectively) | 0.2 | 0.2 |
Capital in excess of par value | 77.9 | 87.6 |
Accumulated deficit | -18.7 | -52.8 |
Accumulated other comprehensive loss | -0.6 | -0.8 |
Total shareholders’ equity | 58.8 | 34.2 |
Total liabilities and shareholders’ equity | $200.50 | $172.40 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 23,784,041 | 23,907,428 |
Common stock, shares outstanding (in shares) | 23,784,041 | 23,907,428 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Revenues: | ' | ' | ' |
Sales by company-operated restaurants | $78.70 | $64 | $54.60 |
Franchise royalties and fees | 121.9 | 110.5 | 95 |
Rent from franchised restaurants | 5.4 | 4.3 | 4.2 |
Total revenues | 206 | 178.8 | 153.8 |
Expenses: | ' | ' | ' |
Restaurant food, beverages and packaging | 26.1 | 21.7 | 18.3 |
Restaurant employee, occupancy and other expenses | 37.9 | 31.2 | 26.1 |
General and administrative expenses | 73.4 | 67.6 | 61.3 |
Occupancy expenses - franchise restaurants | 3.4 | 2.9 | 2.7 |
Depreciation and amortization | 6.7 | 4.6 | 4.2 |
Other expenses (income), net | 0.3 | -0.5 | 0.5 |
Total expenses | 147.8 | 127.5 | 113.1 |
Operating profit | 58.2 | 51.3 | 40.7 |
Interest expense, net | 3.7 | 3.6 | 3.7 |
Income before income taxes | 54.5 | 47.7 | 37 |
Income tax expense | 20.4 | 17.3 | 12.8 |
Net income | $34.10 | $30.40 | $24.20 |
Earnings per common share, basic (in dollars per share) | $1.44 | $1.27 | $0.99 |
Earnings per common share, diluted (in dollars per share) | $1.41 | $1.24 | $0.97 |
Weighted-average shares outstanding: | ' | ' | ' |
Basic (in shares) | 23.6 | 23.9 | 24.5 |
Diluted (in shares) | 24.1 | 24.5 | 25 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $34.10 | $30.40 | $24.20 |
Other comprehensive income | ' | ' | ' |
Net change in fair value of cash flow hedge | 0.4 | 0 | -1.3 |
Reclassification adjustments for derivative losses included in earnings | 0 | 0 | 0.1 |
Other comprehensive income (loss), before income tax | 0.4 | 0 | -1.2 |
Income tax on other comprehensive income | -0.2 | 0 | 0.5 |
Other comprehensive income (loss), net of income taxes | 0.2 | 0 | -0.7 |
Comprehensive income | $34.30 | $30.40 | $23.50 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive (Loss) |
In Millions, except Share data, unless otherwise specified | |||||
Beginning balance at Dec. 26, 2010 | $9.20 | $0.30 | $116.40 | ($107.40) | ($0.10) |
Beginning balance, shares at Dec. 26, 2010 | ' | 25,685,705 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 24.2 | ' | ' | 24.2 | ' |
Other comprehensive income, net of tax | -0.7 | ' | ' | ' | -0.7 |
Repurchases and retirement of shares | -22.3 | -0.1 | -22.2 | ' | ' |
Repurchases and retirement of shares, shares | -1,465,436 | -1,465,436 | ' | ' | ' |
Excess tax benefit from stock-based compensation | 0.1 | ' | 0.1 | ' | ' |
Issuance of common stock under stock option plans | 0.6 | ' | 0.6 | ' | ' |
Issuance of common stock under stock option plans, shares | ' | 59,407 | ' | ' | ' |
Issuance of restricted stock awards, net of forfeitures | -0.2 | ' | -0.2 | ' | ' |
Issuance of restricted stock awards, net of forfeitures, shares | ' | 103,598 | ' | ' | ' |
Stock-based compensation expense | 2.9 | ' | 2.9 | ' | ' |
Ending balance at Dec. 25, 2011 | 13.8 | 0.2 | 97.6 | -83.2 | -0.8 |
Ending balance, shares at Dec. 25, 2011 | ' | 24,383,274 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 30.4 | ' | ' | 30.4 | ' |
Other comprehensive income, net of tax | 0 | ' | ' | ' | ' |
Repurchases and retirement of shares | -15.2 | ' | -15.2 | ' | ' |
Repurchases and retirement of shares, shares | -741,228 | -741,228 | ' | ' | ' |
Excess tax benefit from stock-based compensation | 0.4 | ' | 0.4 | ' | ' |
Issuance of common stock under stock option plans | 1.3 | ' | 1.3 | ' | ' |
Issuance of common stock under stock option plans, shares | ' | 108,935 | ' | ' | ' |
Issuance of restricted stock awards, net of forfeitures | -1.4 | ' | -1.4 | ' | ' |
Issuance of restricted stock awards, net of forfeitures, shares | ' | 156,447 | ' | ' | ' |
Stock-based compensation expense | 4.9 | ' | 4.9 | ' | ' |
Ending balance at Dec. 30, 2012 | 34.2 | 0.2 | 87.6 | -52.8 | -0.8 |
Ending balance, shares at Dec. 30, 2012 | ' | 23,907,428 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 34.1 | ' | ' | 34.1 | ' |
Other comprehensive income, net of tax | 0.2 | ' | ' | ' | 0.2 |
Repurchases and retirement of shares | -19.9 | ' | -19.9 | ' | ' |
Repurchases and retirement of shares, shares | -504,295 | -504,295 | ' | ' | ' |
Excess tax benefit from stock-based compensation | 3.4 | ' | 3.4 | ' | ' |
Issuance of common stock under stock option plans | 3.6 | ' | 3.6 | ' | ' |
Issuance of common stock under stock option plans, shares | 290,000 | 322,804 | ' | ' | ' |
Issuance of restricted stock awards, net of forfeitures | -2.2 | ' | -2.2 | ' | ' |
Issuance of restricted stock awards, net of forfeitures, shares | ' | 58,104 | ' | ' | ' |
Stock-based compensation expense | 5.4 | ' | 5.4 | ' | ' |
Ending balance at Dec. 29, 2013 | $58.80 | $0.20 | $77.90 | ($18.70) | ($0.60) |
Ending balance, shares at Dec. 29, 2013 | ' | 23,784,041 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Cash flows provided by (used in) operating activities: | ' | ' | ' |
Net income | $34.10 | $30.40 | $24.20 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 6.7 | 4.6 | 4.2 |
Disposals of property and equipment | 0.4 | 0.3 | 0.5 |
Net gain on sale of assets | -0.1 | -0.9 | -0.8 |
Deferred income taxes | 4.5 | 2.2 | 1.3 |
Non-cash interest expense, net | 0.8 | 0.4 | 0.5 |
Provision for credit recoveries | -0.7 | -0.1 | -0.3 |
Excess tax benefit from share-based payment arrangements | -3.4 | -0.4 | -0.1 |
Stock-based compensation expense | 5.4 | 4.9 | 2.9 |
Change in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -1.6 | -0.2 | -1.4 |
Other operating assets | -2.3 | 0.8 | -0.2 |
Accounts payable and other operating liabilities | 1 | -1.8 | 1.3 |
Net cash provided by operating activities | 44.8 | 40.2 | 32.1 |
Cash flows provided by (used in) investing activities: | ' | ' | ' |
Capital expenditures | -33.3 | -27.3 | -7.6 |
Proceeds from dispositions of property and equipment | 0.6 | 0.4 | 0.7 |
Capitalized interest | -0.2 | 0 | 0 |
Investment in trademark | 0 | -8 | 0 |
Proceeds from notes receivable and other investing activities | 0 | 0 | 0.3 |
Net cash used in investing activities | -32.9 | -34.9 | -6.6 |
Cash flows provided by (used in) financing activities: | ' | ' | ' |
Principal payments — 2010 credit facility (revolver) | -37 | 0 | 0 |
Principal payments — 2010 credit facility (term loan) | -31.3 | -5 | -3.8 |
Borrowings under 2013 credit facility (revolver) | 63 | 0 | 0 |
Borrowings under 2010 revolving credit facility | 0 | 13 | 2 |
Excess tax benefits from share-based payment arrangements | 3.4 | 0.4 | 0.1 |
Share repurchases | -19.9 | -15.2 | -22.3 |
Proceeds from exercise of employee stock options | 3.6 | 1.3 | 0.6 |
Debt issuance costs | -0.7 | 0 | 0 |
Other financing activities, net | -0.4 | -0.4 | -0.4 |
Net cash used in financing activities | -19.3 | -5.9 | -23.8 |
Net increase (decrease) in cash and cash equivalents | -7.4 | -0.6 | 1.7 |
Cash and cash equivalents at beginning of year | 17 | 17.6 | 15.9 |
Cash and cash equivalents at end of year | $9.60 | $17 | $17.60 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 29, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Popeyes Louisiana Kitchen, Inc. (“Popeyes” or “the Company”) develops, operates and franchises quick-service restaurants under the trade name Popeyes® Chicken & Biscuits and Popeyes® Louisiana Kitchen in 47 states, the District of Columbia, three territories, and 28 foreign countries. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||
Summary of Significant Accounting Policies | ||||||||||||
Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. | ||||||||||||
Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities. These estimates affect the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during each reporting period. Actual results could differ from those estimates. | ||||||||||||
Fiscal Year. The Company has a 52/53-week fiscal year that ends on the last Sunday in December. The 2013 and 2011 fiscal years both consisted of 52 weeks. Fiscal year 2012 consisted of 53 weeks. | ||||||||||||
Cash and Cash Equivalents. The Company considers all money market investment instruments and certificates of deposit with original maturities of three months or less to be cash equivalents. Under the terms of the Company’s bank agreements, outstanding checks in excess of the cash balances in the Company’s primary disbursement accounts create a bank overdraft liability. Bank overdrafts were insignificant for both fiscal years 2013 and 2012. | ||||||||||||
Supplemental Cash Flow Information. | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Interest paid | $ | 3.1 | $ | 2.9 | $ | 2.4 | ||||||
Corporate office lease tenant improvement allowances and incentives | — | — | (3.0 | ) | ||||||||
Property acquired under capital lease obligation | — | 1 | — | |||||||||
Income taxes paid, net | 16.2 | 12.5 | 10.6 | |||||||||
Accounts Receivable, Net. At December 29, 2013 and December 30, 2012, accounts receivable, net were $8.8 million and $7.3 million, respectively. Accounts receivable consist primarily of amounts due from franchisees related to royalties, and rents, and various miscellaneous items. The accounts receivable balance is stated net of an allowance for doubtful accounts. The Company reserves a franchisee’s receivable balance based upon the age of the receivable and consideration of other factors and events. During 2013, 2012, and 2011, changes in the allowance for doubtful accounts were as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Balance, beginning of year | $ | 0.2 | $ | 0.6 | $ | 1.2 | ||||||
Provisions for credit (recoveries) losses | — | (0.1 | ) | (0.3 | ) | |||||||
Write-offs | (0.1 | ) | (0.3 | ) | (0.3 | ) | ||||||
Balance, end of year | $ | 0.1 | $ | 0.2 | $ | 0.6 | ||||||
Notes Receivable, Net. Notes receivable consist of notes from franchisees to finance certain past due franchise revenues and rents. The notes receivable balance is stated net of an allowance for uncollectible amounts which is evaluated each reporting period on a note-by-note basis. At December 29, 2013, notes receivable, net, were approximately $0.7 million, of which $0.1 million were current. At December 30, 2012, all notes receivable were fully reserved. The balance in the allowance account at December 29, 2013 and December 30, 2012, was approximately $0.1 million and $0.9 million, respectively. | ||||||||||||
Inventories. Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value and consist principally of food, beverage items, paper and supplies. At December 29, 2013 and December 30, 2012, inventory of $0.5 million was included as a component of “Other current assets.” | ||||||||||||
Property and Equipment. Property and equipment is stated at cost less accumulated depreciation. | ||||||||||||
Provisions for depreciation are made using the straight-line method over an asset’s estimated useful life: 7 to 35 years for buildings; 5 to 15 years for equipment; and in the case of leasehold improvements and capital lease assets, the lesser of the economic life of the asset or the lease term (generally 3 to 20 years). During 2013, 2012, and 2011, depreciation expense was approximately $6.2 million, $4.0 million, and $3.7 million, respectively. | ||||||||||||
The Company capitalizes interest on external costs in connection with the construction of new restaurants. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Interest expense of $0.2 million was capitalized in 2013. No interest was incurred for such purposes in 2012 and 2011. | ||||||||||||
The Company evaluates property and equipment for impairment during the fourth quarter of each year or when circumstances arise indicating that a particular asset may be impaired. For property and equipment at company-operated restaurants, annual impairment evaluations are performed on an individual restaurant basis. The Company evaluates restaurants using a “two-year history of operating losses” as our primary indicator of potential impairment. The Company evaluates recoverability based on the restaurant’s forecasted undiscounted cash flows for the expected remaining useful life of the unit, which incorporate our best estimate of sales growth and margin improvement based upon our plans for the restaurant and actual results at comparable restaurants. The carrying values of restaurant assets that are not considered recoverable are written down to their estimated fair market value, which are generally measured by discounting estimated future cash flows. | ||||||||||||
Goodwill, Trademarks, and Other Intangible Assets. Amounts assigned to goodwill arose from the allocation of reorganization value when the Company emerged from bankruptcy in 1992 and from business combinations accounted for by the purchase method. Amounts assigned to trademarks arose from the allocation of reorganization value when the Company emerged from bankruptcy in 1992. These assets are deemed indefinite-lived assets and are not amortized for financial reporting purposes. See Note 6 for further disclosure. | ||||||||||||
The Company’s finite-lived intangible assets (primarily re-acquired franchise rights) are amortized on a straight-line basis over 10 to 20 years based on the remaining life of the original franchise agreement or lease agreement. | ||||||||||||
The Company evaluates goodwill and trademarks for impairment on an annual basis (during the fourth quarter of each year) or more frequently when circumstances arise indicating that a particular asset may be impaired. The impairment evaluation for goodwill includes a comparison of the fair value of each of the Company’s reporting units with their carrying value. The Company’s reporting units are its business segments. Goodwill is allocated to each reporting unit for purposes of this analysis. Goodwill associated with bankruptcy reorganization value is assigned to reporting units using a relative fair value approach. Goodwill associated with a business combination is allocated to the reporting unit or a component of the reporting unit expected to benefit from the synergies of the combination. The fair value of each reporting unit is the amount for which the reporting unit could be sold in a current transaction between willing parties. The Company estimates the fair value of its reporting units using a discounted cash flow model. The operating assumptions used in the discounted cash flow model are generally consistent with the reporting unit’s past performance and with the projections and assumptions that are used in the Company’s current operating plans. Such assumptions are subject to change as a result of changing economic and competitive conditions. If a reporting unit’s carrying value exceeds its fair value, goodwill is written down to its implied fair value. The Company follows a similar analysis for the evaluation of trademarks, but that analysis is performed on a consolidated basis. During 2013, 2012, and 2011, there was no impairment of goodwill or trademarks identified during the Company’s annual impairment testing. | ||||||||||||
Costs incurred to renew or extend the term of recognized intangibles are expensed as incurred and reported as a component of “General and administrative expenses.” | ||||||||||||
Fair Value Measurements. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For those assets and liabilities recorded or disclosed at fair value, we determine fair value based upon the quoted market price, if available. If a quoted market price is not available for identical assets, we determine fair value based upon the quoted market price of similar assets or the present value of expected future cash flows considering the risks involved, including counterparty performance risk if appropriate, and using discount rates appropriate for the duration. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation. | ||||||||||||
Level 1 | Inputs based upon quoted prices in active markets for identical assets. | |||||||||||
Level 2 | Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly. | |||||||||||
Level 3 | Inputs that are unobservable for the asset. | |||||||||||
Debt Issuance Costs. Costs incurred to secure new debt facilities are capitalized and then amortized utilizing a method that approximates the effective interest method for term loans and the straight-line method for revolving credit facilities. Absent a basis for cost deferral, debt amendment fees are expensed as incurred. In the Company’s Consolidated Statements of Operations, the amortization of debt issuance costs, any write-off of debt issuance costs when a debt facility is modified or prematurely paid off, and debt amendment fees are included as a component of “Interest expense, net". During 2013, the Company wrote off $0.4 million due to the retirement of the 2010 Credit Facility. | ||||||||||||
Advertising Cooperative. The Company maintains an advertising cooperative that receives contributions from the Company and from its franchisees, based upon a percentage of restaurant sales, as required by their franchise agreements. This cooperative is used exclusively for marketing of the Popeyes brand. The Company acts as an agent for the franchisees with regards to their contributions to the advertising cooperative. | ||||||||||||
In the Company’s consolidated financial statements, contributions received and expenses of the advertising cooperative are excluded from the Company’s Consolidated Statements of Operations and the Consolidated Statements of Cash Flow. The Company reports all assets and liabilities of the advertising cooperative as “Advertising cooperative assets, restricted” and “Advertising cooperative liabilities” in the Consolidated Balance Sheet. The advertising cooperatives assets, consisting primarily of cash and accounts receivable from the franchisees, can only be used for selected purposes and are considered restricted. The advertising cooperative liabilities represent the corresponding obligation arising from the receipt of the contributions to purchase advertising and promotional programs. | ||||||||||||
The Company’s contributions to the advertising cooperative based on company-operated restaurant sales are reflected in the Company’s Consolidated Statements of Operations as a component of “Restaurant employee, occupancy and other expenses.” Additional contributions to the advertising cooperative for national media advertising and other marketing related costs are expensed as a component of “General and administrative expenses.” During 2013, 2012, and 2011, the Company’s advertising costs were approximately $2.9 million, $2.3 million, and $2.4 million, respectively. | ||||||||||||
Leases. When determining the lease term, the Company includes option periods for which failure to renew the lease imposes economic penalty on the Company in such an amount that a renewal appears, at the inception of the lease, to be reasonably assured. The lease term commences on the date when the Company has the right to control the use of the leased property, which can occur before the rent payments are due under the terms of the lease. | ||||||||||||
The Company records rent expense for leases that contain scheduled rent increases on a straight-line basis over the lease term, including any option periods considered in the determination of that lease term. Contingent rentals are generally based on sales levels in excess of stipulated amounts, and thus are not considered minimum lease payments and are included in rent expense as they accrue. | ||||||||||||
Tenant improvement allowances and other lease incentives are recognized as reductions to rent expense on a straight-line basis over the lease term. | ||||||||||||
Accumulated Other Comprehensive Income (Loss). Comprehensive income (loss) is net income plus the change in fair value of the Company’s cash flow hedge discussed in Note 9 plus derivative (gains) or losses realized in earnings during the period. Amounts included in accumulated other comprehensive income (loss) for the Company’s derivative instruments are recorded net of the related income tax effects. | ||||||||||||
As of December 29, 2013, accumulated other comprehensive loss consisted of net unrealized losses on interest rate swap agreements settled in cash. Unrealized derivative gains or losses on terminated swap agreements are amortized as interest expense over the remaining term of the original swap agreement. The Company expects approximately $0.7 million of net pre-tax derivative losses included in accumulated other comprehensive income at December 29, 2013 will be reclassified into earnings within the next twelve months. As of December 30, 2012, accumulated other comprehensive loss consisted of net unrealized loss on interest rate swap agreements. See Note 9 for further discussion of the Company’s interest rate swap agreements. | ||||||||||||
Revenue Recognition — Sales by Company-Operated Restaurants. Revenues from the sale of food and beverage products are recognized on a cash basis. The Company presents sales net of sales tax and other sales related taxes. | ||||||||||||
Revenue Recognition — Franchise Operations. Revenues from franchising activities include development fees associated with a franchisee’s planned development of a specified number of restaurants within a defined geographic territory, franchise fees associated with the opening of new restaurants, and ongoing royalty fees which are generally based on five percent of net restaurant sales. Development fees and franchise fees are recorded as deferred franchise revenue when received and are recognized as revenue when the restaurants covered by the fees are opened or all material services or conditions relating to the fees have been substantially performed or satisfied by the Company. The Company recognizes royalty revenues as earned. Franchise renewal fees are recognized when a renewal agreement becomes effective. | ||||||||||||
Rent from Franchised Restaurants. Rent from franchised restaurants is composed of rental income associated with properties leased or subleased to franchisees. Our typical restaurant leases to franchisees are triple net to the franchisee, requiring them to pay minimum rent or percentage rent based on sales in excess of specified amounts or both minimum rent and percentage rent plus real estate taxes, maintenance costs and insurance premiums. These leases are typically cross-defaulted with the corresponding franchise agreement for the restaurant. Minimum rents are recognized on the straight-line basis over the lease term. Percentage rents based on sales are recognized as earned. | ||||||||||||
Cash Consideration from Vendors. The Company has entered into long-term beverage supply agreements with certain major beverage vendors. Pursuant to the terms of these arrangements, marketing rebates are provided to the Company and its advertising fund from the beverage vendors based upon the dollar volume of purchases for company-operated restaurants and franchised restaurants. For Company-operated restaurants, these incentives are recognized as earned throughout the year and are classified as a reduction of “Restaurant food, beverages and packaging” in the Consolidated Statements of Operations. The incentives recognized by company-operated restaurants were approximately $1.1 million, $0.6 million, and $0.6 million, in 2013, 2012, and 2011, respectively. Rebates earned and contributed to the cooperative advertising fund are excluded from the Company’s Consolidated Statements of Operations. | ||||||||||||
Gains and Losses Associated With Re-franchising. From time to time, the Company engages in re-franchising transactions. Typically, these transactions involve the sale of a company-operated restaurant to an existing or new franchisee. | ||||||||||||
The Company defers gains on the sale of company-operated restaurants when the Company has continuing involvement in the assets sold beyond the customary franchisor role. The Company’s continuing involvement generally includes seller financing or the leasing of real estate to the franchisee. Deferred gains are recognized over the remaining term of the continuing involvement. Losses are recognized immediately. | ||||||||||||
There were no sales of company-operated restaurants in 2013, 2012, or 2011. During 2013, 2012 and 2011, previously deferred gains of approximately $0.1 million, $0.6 million, and $0.3 million, respectively, were recognized in income as a component of “Other expenses (income), net” in the accompanying Consolidated Statements of Operations. | ||||||||||||
Research and Development. Research and development costs are expensed as incurred. During 2013, 2012, and 2011, such costs were approximately $2.2 million, $1.8 million, and $2.3 million, respectively. | ||||||||||||
Foreign Currency Transactions. Substantially all of the Company’s foreign-sourced revenues (principally royalties from international franchisees) are recorded in U.S. dollars. The aggregate effects of any exchange gains or losses are included in the accompanying Consolidated Statements of Operations as a component of “General and administrative expenses.” The net foreign currency gains and losses were insignificant in 2013 and 2012. The net foreign currency loss was $0.1 million in 2011. | ||||||||||||
Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company provides a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||||||||||
The Company recognizes the benefit of positions taken or expected to be taken in a tax return in the financial statements when it is more likely than not (i.e. a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement. Changes in judgment that result in subsequent recognition, derecognition or change in a measurement of a tax position taken in a prior annual period (including any related interest and penalties) is recognized as a discrete item in the interim period in which the change occurs. | ||||||||||||
See Note 18 for additional information regarding income taxes. | ||||||||||||
Stock-Based Compensation Expense. The Company measures and recognizes compensation cost at fair value for all share-based payments, including stock options, restricted share awards and restricted share units. The fair value of stock options with service and market conditions are valued utilizing a Monte Carlo simulation model. The fair value of stock options with only service conditions are estimated using a Black-Scholes option-pricing model. Restricted share awards and restricted share units are valued at the market price of the Company’s shares on the grant date. The fair value of restricted share awards with service and market conditions are valued utilizing a Monte Carlo simulation model. The fair value of stock-based compensation is amortized either on the graded vesting attribution method or on the cliff vesting attribution method depending on the specific award. The Company issues new shares for common stock upon exercise of stock options. | ||||||||||||
The Company recorded $5.4 million ($3.4 million net of tax), $4.9 million ($3.1 million net of tax), and $2.9 million ($1.9 million net of tax), in total stock-based compensation expense during 2013, 2012, and 2011, respectively. | ||||||||||||
Subsequent Events. The Company discloses material events that occur after the balance sheet date but before the financial statements are issued. In general, these events are recognized if the condition existed at the date of the balance sheet, but not recognized if the condition did not exist at the balance sheet date. The Company discloses non-recognized events if required to keep the financial statements from being misleading. | ||||||||||||
Derivative Financial Instruments. The Company used interest rate swap agreements to reduce its interest rate risk on its floating rate debt under the terms of its 2010 amended credit facility. The Company recognizes all derivatives on the balance sheet at fair value. At inception and on an on-going basis, the Company assesses whether each derivative that qualifies for hedge accounting continues to be highly effective in offsetting changes in the cash flows of the hedged item. If the derivative meets the hedge criteria as defined by certain accounting standards, changes in the fair value of the derivative are recognized in accumulated other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value, if any, is immediately recognized in earnings. | ||||||||||||
Reclassifications. In the accompanying consolidated financial statements and in these notes, certain prior year amounts have been reclassified to conform with current year's presentation. "Rent from franchised restaurants" and "Occupancy expenses - franchise restaurants" on the Consolidated Statements of Operations were "Rent and other revenues" and "Rent and other occupancy expenses", respectively, in prior years. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements That the Company Has Not Yet Adopted | 12 Months Ended |
Dec. 29, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements That the Company Has Not Yet Adopted | ' |
Recent Accounting Pronouncements That the Company Has Not Yet Adopted | |
Accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are expected to have an immaterial impact on the financial statements upon adoption. |
Other_Current_Assets
Other Current Assets | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Current Assets | ' | |||||||
Other Current Assets | ||||||||
(in millions) | 2013 | 2012 | ||||||
Deferred tax assets | $ | — | $ | 0.3 | ||||
Prepaid income taxes | 5.2 | — | ||||||
Prepaid expenses and other current assets | 4.6 | 3.9 | ||||||
$ | 9.8 | $ | 4.2 | |||||
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment, Net | ' | |||||||
Property and Equipment, Net | ||||||||
(in millions) | 2013 | 2012 | ||||||
Land | $ | 16 | $ | 12.1 | ||||
Buildings and improvements | 60.8 | 43.2 | ||||||
Equipment | 33.3 | 23.3 | ||||||
Properties held for sale and other | 0.1 | 0.7 | ||||||
110.2 | 79.3 | |||||||
Less accumulated depreciation and amortization | (32.6 | ) | (28.0 | ) | ||||
$ | 77.6 | $ | 51.3 | |||||
The increase in property and equipment, net in 2013 was primarily due to the construction of new company-operated restaurants and the conversion of the acquired restaurant properties in Minnesota and California. | ||||||||
On November 13, 2012, the Company completed a $13.8 million acquisition of 27 restaurants in Minnesota and California. The restaurants were in the trade image of another quick service restaurant concept. Twenty-six of the acquired restaurants were converted into the Popeyes Louisiana Kitchen image at a cost of approximately $16.1 million. Following the conversion, the restaurants were leased to Popeyes franchisees to operate under our standard franchise agreement. The remaining restaurant property was sold in 2013. The following table summarizes the allocation of the $14.6 million total cost of the acquisition including the $13.8 million purchase price: | ||||||||
Land | $ | 7.5 | ||||||
Building and improvements | 6.5 | |||||||
Properties held for sale and other | 0.6 | |||||||
Total cost | $ | 14.6 | ||||||
At December 29, 2013 and December 30, 2012, property and equipment, net included capital lease assets with a gross book value of $1.8 million and accumulated amortization of $0.2 million and $0.1 million, respectively. |
Trademarks_and_Other_Intangibl
Trademarks and Other Intangible Assets, Net | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Trademarks and Other Intangible Assets, Net | ' | |||||||
Trademarks and Other Intangible Assets, Net | ||||||||
(in millions) | 2013 | 2012 | ||||||
Non-amortizable intangible assets: | ||||||||
Trademarks | $ | 50 | $ | 50 | ||||
Other | 0.6 | 0.6 | ||||||
50.6 | 50.6 | |||||||
Amortizable intangible assets: | ||||||||
Re-acquired franchise rights | 7.1 | 7.1 | ||||||
Accumulated amortization | (4.3 | ) | (3.8 | ) | ||||
2.8 | 3.3 | |||||||
$ | 53.4 | $ | 53.9 | |||||
Amortization expense was approximately $0.5 million, $0.6 million, and $0.5 million, for 2013, 2012, and 2011, respectively. Estimated amortization expense is expected to be approximately $0.5 million in 2014 through 2017, and $0.4 million in 2018. The remaining weighted average amortization period for these assets is 6 years. | ||||||||
On November 7, 2012, the Company entered into a new agreement with the King Features Syndicate Division of Hearst Holdings, Inc., licensor of the Popeye® the Sailorman and associated cartoon characters. As part of the new agreement, the parties agreed to dismiss the pending declaratory judgment action related to their previous license agreement. The new agreement confirms the expiration of the previous license agreement and the parties agree to cooperate with each other to protect their respective intellectual property rights on a world-wide basis. A one–time $7.0 million payment made to King Features, as well as the associated legal fees of $1.0 million, were recorded as an indefinite-lived intangible asset. |
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Other Current Liabilities | ' | |||||||
Other Current Liabilities | ||||||||
(in millions) | 2013 | 2012 | ||||||
Accrued wages, bonuses and severances | $ | 6 | $ | 2.6 | ||||
Other | 2.1 | 3.3 | ||||||
$ | 8.1 | $ | 5.9 | |||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The following table reflects assets and liabilities that are measured and carried at fair value on a recurring basis as of December 29, 2013 and December 30, 2012: | ||||||||||||||||
Quoted Prices in Active | Significant Other | Significant | Carrying | |||||||||||||
Markets for Identical | Observable Inputs | Unobservable | Value | |||||||||||||
Asset or Liability | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
29-Dec-13 | ||||||||||||||||
Financial Assets | ||||||||||||||||
Cash equivalents | $ | 10.6 | $ | — | $ | — | $ | 10.6 | ||||||||
Restricted cash (advertising cooperative assets) | 4.3 | — | — | 4.3 | ||||||||||||
Total assets at fair value | $ | 14.9 | $ | — | $ | — | $ | 14.9 | ||||||||
Financial Liabilities | ||||||||||||||||
Long term debt and other borrowings | $ | — | 72.2 | $ | — | 67.2 | ||||||||||
Total liabilities at fair value | $ | — | $ | 72.2 | $ | — | $ | 67.2 | ||||||||
Quoted Prices in Active | Significant Other | Significant | Carrying | |||||||||||||
Markets for Identical | Observable Inputs | Unobservable | Value | |||||||||||||
Asset or Liability | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
December 30, 2012 | ||||||||||||||||
Financial Assets | ||||||||||||||||
Cash equivalents | $ | 16.3 | $ | — | $ | — | $ | 16.3 | ||||||||
Restricted cash (advertising cooperative assets) | 4.3 | — | — | 4.3 | ||||||||||||
Total assets at fair value | $ | 20.6 | $ | — | $ | — | $ | 20.6 | ||||||||
Financial Liabilities | ||||||||||||||||
Interest rate swap agreement (Note 9) | $ | — | $ | 1.3 | $ | — | $ | 1.3 | ||||||||
Long term debt and other borrowings | $ | — | 74.4 | $ | — | 72.8 | ||||||||||
Total liabilities at fair value | $ | — | $ | 75.7 | $ | — | $ | 74.1 | ||||||||
At December 29, 2013 and December 30, 2012, the fair value of the Company’s current assets and current liabilities approximates carrying value because of the short-term nature of these instruments. | ||||||||||||||||
The fair value of the Company’s interest rate swap at December 30, 2012 was based on the sum of all future net present value cash flows. The future cash flows are derived based on the terms of our interest rate swap, as well as considering published discount factors, and projected London Interbank Offered Rates (“LIBOR”). The fair values of each of the Company’s long-term debt instruments are based on the amount of future cash flows associated with each instrument, discounted using the Company’s current borrowing rate for similar debt instruments of comparable maturity. |
LongTerm_Debt_and_Other_Borrow
Long-Term Debt and Other Borrowings | 12 Months Ended | |||||||||||||||||||||||||
Dec. 29, 2013 | ||||||||||||||||||||||||||
Long-term Debt, Other Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Long-Term Debt and Other Borrowings | ' | |||||||||||||||||||||||||
Long-Term Debt and Other Borrowings | ||||||||||||||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||||||||||||||
2013 Credit Facility: | ||||||||||||||||||||||||||
Revolving credit facility | $ | 63 | $ | — | ||||||||||||||||||||||
2010 Credit Facility: | ||||||||||||||||||||||||||
Revolving credit facility | — | 37 | ||||||||||||||||||||||||
Term loan | — | 31.3 | ||||||||||||||||||||||||
Capital lease obligations | 2.2 | 2.3 | ||||||||||||||||||||||||
Other notes | 2 | 2.2 | ||||||||||||||||||||||||
67.2 | 72.8 | |||||||||||||||||||||||||
Less current portion | (0.3 | ) | (6.0 | ) | ||||||||||||||||||||||
$ | 66.9 | $ | 66.8 | |||||||||||||||||||||||
2013 Credit Facility. On December 18, 2013, the Company entered into a bank credit facility with a group of lenders consisting of a five year $125.0 million dollar revolving credit facility. The Company drew $63.0 million under the revolving credit facility which was used to retire the Company's 2010 Credit Facility. | ||||||||||||||||||||||||||
Outstanding balances accrue interest at a margin of 125 to 250 basis points over the London Interbank Offered Rate (“LIBOR”) or other alternative indices plus an applicable margin as specified in the facility. The commitment fee on the unused balance under the facility ranges from 15 to 40 basis points. The increment over LIBOR and the commitment fee are determined quarterly based upon the Consolidated Total Leverage Ratio. As of December 29, 2013 and December 30, 2012, the Company’s weighted average interest rates for all outstanding indebtedness under its credit facilities were 1.5% and 3.7% respectively. | ||||||||||||||||||||||||||
Under the terms of the revolving credit facility, the Company may obtain other short-term borrowings of up to $10.0 million and letters of credit up to $20.0 million. Collectively, these other borrowings and letters of credit may not exceed the amount of unused borrowings under the 2013 Credit Facility. As of December 29, 2013, the Company had $0.9 million of outstanding letters of credit. The Company had $61.1 million available for short-term borrowings and letter of credit under its 2013 Credit Facility as of December 29, 2013. | ||||||||||||||||||||||||||
The 2013 Credit Facility is secured by a first priority security interest in substantially all of the Company’s assets, excluding real estate. The 2013 Credit Facility contains financial and other covenants, including covenants requiring the Company to maintain various financial ratios, limiting its ability to incur additional indebtedness, restricting the amount of capital expenditures that may be incurred, restricting the payment of cash dividends, and limiting the amount of debt which can be loaned to the Company’s franchisees or guaranteed on their behalf. This facility also limits the Company’s ability to engage in mergers or acquisitions, sell certain assets, repurchase its common stock and enter into certain lease transactions. The 2013 Credit Facility includes customary events of default, including, but not limited to, the failure to pay any interest, principal or fees when due, the failure to perform certain covenant agreements, inaccurate or false representations or warranties, insolvency or bankruptcy, change of control, the occurrence of certain ERISA events and judgment defaults. At December 29, 2013, the Company was compliant with all debt covenant requirements. | ||||||||||||||||||||||||||
The Company expensed $0.4 million associated with the extinguishment of the 2010 Credit Facility, which is reported as a component of “Interest expense, net.” Additionally, the Company capitalized approximately $0.7 million of fees related to the new facility as debt issuance costs which will be amortized over the remaining life of the facility utilizing the straight-line method for the revolving credit facility. | ||||||||||||||||||||||||||
Future Debt Maturities. At December 29, 2013, aggregate future debt maturities, excluding capital lease obligations, were as follows: | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
2014 | $ | 0.3 | ||||||||||||||||||||||||
2015 | 0.3 | |||||||||||||||||||||||||
2016 | 0.3 | |||||||||||||||||||||||||
2017 | 0.3 | |||||||||||||||||||||||||
2018 | 63.4 | |||||||||||||||||||||||||
Thereafter | 0.4 | |||||||||||||||||||||||||
$ | 65 | |||||||||||||||||||||||||
Interest Rate Swap Agreements. Under the 2010 facility, the Company used interest rate swap agreements to fix the interest rate exposure on a portion of its outstanding term loan debt. The Company's interest rate swap agreements limited the interest rate exposure on $30 million of floating rate debt to a fixed rate of 4.79%. The original term of the swap agreements was scheduled to expire March 31, 2015. The interest rate swap agreements were terminated on December 16, 2013. | ||||||||||||||||||||||||||
The following tables summarize the fair value of the Company’s interest rate swap agreements and the effect on the financial statements: | ||||||||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||||||||||
(In millions) | Balance Sheet Location | 12/29/13 | 12/30/12 | |||||||||||||||||||||||
Interest rate swap agreements | Deferred credits and other long-term liabilities | $ | — | $ | 1.3 | |||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | ||||||||||||||||||||||||||
Amount of Gain (Loss) recognized into | Amount of Gain (Loss) | |||||||||||||||||||||||||
AOCI | Reclassified from AOCI to | |||||||||||||||||||||||||
Income | ||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Interest rate swap | $ | 0.2 | $ | — | $ | (0.8 | ) | Interest expense, net | $ | — | $ | — | $ | (0.1 | ) | |||||||||||
agreements, net of tax | ||||||||||||||||||||||||||
$ | 0.2 | $ | — | $ | (0.8 | ) | $ | — | $ | — | $ | (0.1 | ) | |||||||||||||
Net interest expense associated with these agreements was approximately $0.5 million, $0.6 million, and $0.7 million in 2013, 2012, and 2011, respectively. |
Leases
Leases | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Leases [Abstract] | ' | |||||||
Leases | ' | |||||||
Leases | ||||||||
The Company leases property and equipment associated with its (1) corporate facilities; (2) company-operated restaurants; (3) certain former company-operated restaurants that are now operated by franchisees and the property subleased to the franchisee; and (4) certain former company-operated restaurants that are now subleased to a third party. | ||||||||
At December 29, 2013, future minimum payments under capital and non-cancelable operating leases were as follows: | ||||||||
(in millions) | Capital | Operating | ||||||
Leases | Leases | |||||||
2014 | $ | 0.3 | $ | 7 | ||||
2015 | 0.3 | 6.8 | ||||||
2016 | 0.2 | 6.5 | ||||||
2017 | 0.2 | 6.3 | ||||||
2018 | 0.2 | 5.7 | ||||||
Thereafter | 4.9 | 86.5 | ||||||
Future minimum lease payments | 6.1 | 118.8 | ||||||
Less amounts representing interest | 3.9 | — | ||||||
$ | 2.2 | $ | 118.8 | |||||
During 2013, 2012, and 2011, rental expense was approximately $6.0 million, $5.9 million, and $5.9 million, respectively, including contingent rentals of $0.2 million, and $0.2 million in 2012 and 2011, respectively. There were no significant contingent rental expense in 2013. At December 29, 2013, the implicit rate of interest on capital leases ranged from 8.1% to 16.0%. | ||||||||
The Company leases certain restaurant properties and subleases other restaurant properties to franchisees. At December 29, 2013, the aggregate gross book value and net book value of owned properties that were leased to franchisees was approximately $30.0 million and $28.6 million, respectively. During 2013, 2012, and 2011, rental income from these leases and subleases was approximately $5.4 million, $4.3 million, and $4.1 million, respectively. At December 29, 2013, future minimum rental income associated with these leases and subleases, are approximately $2.8 million in 2014, $2.6 million in 2015, $2.3 million in 2016, $2.0 million in 2017, $1.7 million in 2018, and $4.7 million thereafter. |
Deferred_Credits_and_Other_Lon
Deferred Credits and Other Long-Term Liabilities | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Deferred Credits and Other Long-Term Liabilities [Abstract] | ' | |||||||
Deferred Credits and Other Long-Term Liabilities | ' | |||||||
Deferred Credits and Other Long-Term Liabilities | ||||||||
(in millions) | 2013 | 2012 | ||||||
Deferred franchise revenues | $ | 3.5 | $ | 2.4 | ||||
Deferred gains on unit conversions | 1 | 1.1 | ||||||
Deferred rentals | 7.4 | 7 | ||||||
Above-market rent obligations | 2.6 | 2.7 | ||||||
Deferred income taxes | 13.6 | 9.3 | ||||||
Other long-term liabilities | 2 | 3.7 | ||||||
$ | 30.1 | $ | 26.2 | |||||
Common_Stock
Common Stock | 12 Months Ended |
Dec. 29, 2013 | |
Equity [Abstract] | ' |
Common Stock | ' |
Common Stock | |
Share Repurchase Program. The Company’s Board of Directors has approved a share repurchase program. On February 13, 2013 the Board of Directors approved an additional $50.0 million for the share repurchase program. During 2013, 2012 and 2011, we repurchased and retired 504,295 shares, 741,228 shares and 1,465,436 shares of common stock for approximately $19.9 million, $15.2 million and $22.3 million, respectively. | |
The remaining value of shares that may be repurchased under the program was $31.5 million. Pursuant to the terms of the Company’s 2013 Credit Facility, the Company may repurchase its common stock when the Total Leverage Ratio is less than 3.00 to 1.0. Total Leverage Ratio, as defined in the 2013 Credit Facility, is the ratio of the Company’s Consolidated Total Indebtedness to Consolidated EBITDA for the four immediately preceding fiscal quarters. The Total Leverage Ratio at December 29, 2013 is 0.97 to 1.0. | |
Dividends. During 2013, 2012 and 2011, the Company paid no dividends. |
Stock_Option_Plans
Stock Option Plans | 12 Months Ended | ||||||||||||
Dec. 29, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Stock Option Plans | ' | ||||||||||||
Stock Option Plans | |||||||||||||
The 2002 Incentive Stock Plan. In February 2002, the Company created the 2002 Incentive Stock Plan. This plan authorized the issuance of 4.5 million shares of the Company’s common stock. All grants have been at prices which approximate the fair market value of the Company’s common stock at the date of grant. The options currently granted and outstanding as of December 29, 2013 allow certain employees and directors of the Company to purchase approximately 1,000 shares of common stock. If not exercised, the options expire in 2015. As of May 25, 2006, the Company no longer grants options under this plan. | |||||||||||||
The 2006 Incentive Stock Plan. In May 2006, the Company created the 2006 Incentive Stock Plan. The plan authorizes the issuance of approximately 3.3 million shares of the Company’s common stock. Options and other awards such as restricted stock, stock appreciation rights, stock grants, and stock unit grants under the plan generally may be granted to any of the Company’s employees and non-employee directors. The options currently granted and outstanding as of December 29, 2013 allow certain employees and directors of the Company to purchase approximately 565,000 shares of common stock. The options vest over three years on a graded basis. If not exercised, the options under these grants expire seven years from the date of issuance. | |||||||||||||
A Summary of Stock Option Plan Activity. The table below summarizes the activity within the Company’s stock option plans for the 52 week period ended December 29, 2013. | |||||||||||||
(shares in thousands) | Shares | Weighted | Weighted | Aggregate | |||||||||
Average | Average | Intrinsic | |||||||||||
Exercise Price | Remaining | Value | |||||||||||
Contractual | (millions) | ||||||||||||
Term | |||||||||||||
(years) | |||||||||||||
Stock options: | |||||||||||||
Outstanding at beginning of year | 808 | $ | 12.16 | ||||||||||
Granted options | 66 | 34.8 | |||||||||||
Exercised options | (290 | ) | 12.51 | ||||||||||
Canceled and expired options | (18 | ) | 12.75 | ||||||||||
Outstanding at end of year | 566 | $ | 14.58 | 3.5 | $ | 13.2 | |||||||
Exercisable at end of year | 399 | $ | 10.89 | 2.7 | $ | 10.8 | |||||||
Shares available for future grants under the plans at end of year | 1,201 | ||||||||||||
The aggregate intrinsic value in the above table represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading date of 2013 and the exercise price, multiplied by the number of options). The amount of aggregate intrinsic value will change based on the fair market value of the Company’s common stock. | |||||||||||||
The Company recognized approximately $0.9 million in stock-based compensation expense associated with its stock option grants during 2013, 2012, and 2011, respectively. As of December 29, 2013, there was approximately $0.7 million of total unrecognized compensation costs related to unvested stock options which are expected to be recognized over a weighted average period of approximately 1.4 years. The total fair value at grant date of awards which vested during 2013, 2012, and 2011 was $0.8 million, $1.4 million, and $0.9 million, respectively. | |||||||||||||
The weighted average grant date fair value of awards granted during 2013, 2012, and 2011 was $15.11, $7.74, and $8.51, respectively. The total intrinsic value of stock options exercised during 2013, 2012, and 2011 was $7.6 million, $1.1 million and $0.3 million, respectively | |||||||||||||
During 2013, 2012, and 2011, the fair value of option awards were estimated on the date of grant using a Black-Scholes option-pricing model. The fair value of stock-based compensation is amortized on the graded vesting attribution method. The following weighted average assumptions were used for the grants: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Risk-free interest rate | 0.70% | 1.00% | 2.90% | ||||||||||
Expected dividend yield | —% | —% | —% | ||||||||||
Expected term (in years) | 4.5 | 4.5 | 6 | ||||||||||
Expected volatility | 53.00% | 55.30% | 56.80% | ||||||||||
The risk-free interest rate is based on the United States treasury yields in effect at the time of grant. The expected term of options represents the period of time that options granted are expected to be outstanding based on the vesting period, the term of the option agreement and historical exercise patterns. The estimated volatility is based on the historical volatility of the Company’s stock price and other factors. | |||||||||||||
The following table summarizes the non-vested stock option activity for the 52 week period ended December 29, 2013: | |||||||||||||
(shares in thousands) | Shares | Weighted | |||||||||||
Average | |||||||||||||
Grant Date Fair | |||||||||||||
Value | |||||||||||||
Unvested stock options outstanding at beginning of period | 236 | $ | 7.15 | ||||||||||
Granted | 66 | 15.11 | |||||||||||
Vested | (114 | ) | 6.89 | ||||||||||
Expired | (15 | ) | 3.18 | ||||||||||
Unvested stock options outstanding at end of period | 173 | $ | 10.68 | ||||||||||
Restricted Share Awards | |||||||||||||
The Company grants restricted share awards pursuant to the 2006 Incentive Stock Plan. These awards are amortized as expense on a graded vesting basis. The Company recognized approximately $3.9 million, $3.4 million, and $1.6 million, in stock-based compensation expense associated with these awards during 2013, 2012, and 2011, respectively. During the vesting period, recipients of the shares are entitled to dividends on such shares, provided that such shares are not forfeited. Dividends are accumulated and paid out at the end of the vesting period. | |||||||||||||
The following table summarizes the restricted share awards activity for the 52 week period ended December 29, 2013: | |||||||||||||
(share awards in thousands) | Shares | Weighted | |||||||||||
Average | |||||||||||||
Grant | |||||||||||||
Date Fair | |||||||||||||
Value | |||||||||||||
Unvested restricted share awards: | |||||||||||||
Outstanding beginning of year | 320 | $ | 15.77 | ||||||||||
Granted | 122 | $ | 31.77 | ||||||||||
Vested | (161 | ) | $ | 14.43 | |||||||||
Cancelled | (6 | ) | $ | 24.84 | |||||||||
Outstanding end of year | 275 | $ | 23.44 | ||||||||||
The weighted average grant date fair value of restricted share awards granted during 2012 and 2011 were $16.28 and $15.32, respectively. | |||||||||||||
As of December 29, 2013, approximately 161,000 of the outstanding restricted share awards are earned subject to the Company meeting three-year cumulative EBITDA goals. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. A three-year cumulative EBITDA goal is approved by the board of directors at the start of the three-year performance period. Shares are earned based on a sliding scale of performance above and below the performance goal. The sliding scale is anchored by a minimum performance requirement of 95% of three-year cumulative EBITDA. If 95% of the performance goal is not achieved, then no performance shares are earned. If 95% is achieved, then 50% of the targeted shares are earned. If 100% of the performance goal is achieved, then award is paid at target. The maximum performance requirement is 110% of cumulative EBITDA. If maximum performance is achieved, then 200% of the targeted shares are earned. Shares earned by three-year cumulative EBITDA performance will be adjusted based on our three-year total shareholder return (“TSR”) against a broader of group of restaurant companies. Shares earned will be adjusted -10% if TSR performance is in the bottom quartile, and will be adjusted +10% if TSR performance is in the upper quartile. TSR represents stock price appreciation and dividends over the three-year performance period. Earned performance shares vest three years from the date of issuance. | |||||||||||||
As of December 29, 2013, approximately 86,000 of the outstanding restricted share awards are earned subject to the Company meeting annual EBITDA performance targets. Shares are earned based on a sliding scale of performance above and below the performance goal. The sliding scale is anchored by a minimum performance requirement of 95% of EBITDA. If 95% of the performance goal is not achieved, then no performance shares are earned. If 95% is achieved, then 50% of the targeted shares are earned. If 100% of the performance goal is achieved, then award is paid at target. The maximum performance requirement is 110% of EBITDA. If maximum performance is achieved, then 130% of the targeted shares are earned. Earned performance shares are not vested and paid until the completion of a three year performance period. All of the 86,000 shares are scheduled to vest on April 5, 2014. | |||||||||||||
As of December 29, 2013, there was approximately $3.3 million of total unrecognized compensation cost related to unvested restricted stock awards which are expected to be recognized over a weighted average period of approximately 1.7 years. The total fair value at grant date of awards which vested during 2013, 2012, and 2011, was $2.3 million, $2.5 million, and $0.4 million, respectively. | |||||||||||||
Restricted Share Units | |||||||||||||
The Company grants restricted stock units (RSUs) to members of its board of directors pursuant to the 2006 Incentive Stock Plan. Vested RSUs are convertible into shares of the Company’s common stock on a 1:1basis at such time the director no longer serves on the board of the Company. The Company recognized $0.6 million, $0.6 million, and $0.4 million in stock-based compensation expense associated with these awards during the 2013, 2012, and 2011, respectively. As of December 29, 2013, there was approximately $0.3 million of total unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted average period of approximately 0.4 years. | |||||||||||||
The following table summarizes the restricted share unit activity for the 52 week period ended December 29, 2013. | |||||||||||||
(share awards in thousands) | Units | Weighted | |||||||||||
Average | |||||||||||||
Grant | |||||||||||||
Date Fair | |||||||||||||
Value | |||||||||||||
Unvested restricted stock units: | |||||||||||||
Outstanding beginning of year | 210 | $ | 12.44 | ||||||||||
Granted | 18 | 34.42 | |||||||||||
Vested | (32 | ) | 11.98 | ||||||||||
Outstanding end of year | 196 | $ | 14.53 | ||||||||||
No awards vested during 2012 and 2011. The weighted average grant date fair value of restricted share units granted during 2012 and 2011 were $21.02 and $15.90, respectively. |
401k_Savings_Plan
401(k) Savings Plan | 12 Months Ended |
Dec. 29, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
401(k) Savings Plan | ' |
401(k) Savings Plan | |
The Company maintains a qualified retirement plan (“Plan”) under Section 401(k) of the Internal Revenue Code of 1986, as amended, for the benefit of employees meeting certain eligibility requirements as outlined in the Plan document. All Company employees are subject to the same contribution and vesting schedules. Under the Plan, non-highly compensated employees may contribute up to 75.0% of their eligible compensation to the Plan on a pre-tax basis up to statutory limitations. Highly compensated employees are limited to 5.0% of their eligible compensation. The Company may make both voluntary and matching contributions to the Plan. The Company expensed approximately $0.5 million, $0.4 million, and $0.3 million, during 2013, 2012, and 2011, respectively, for its contributions to the Plan. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Supply Contracts. Supplies are generally provided to Popeyes franchised and company-operated restaurants, pursuant to supply agreements negotiated by Supply Management Services, Inc. (“SMS”), a not-for-profit purchasing cooperative of which the Company is a member. The Company, its franchisees and the owners of Cinnabon bakeries hold membership interests in SMS in proportion to the number of restaurants they own. At December 29, 2013, the Company held one of seven board seats. The operations of SMS are not included in the Consolidated Financial Statements. | |
The principal raw material for a Popeyes restaurant operation is fresh chicken. Company-operated and franchised restaurants purchase their chicken from suppliers who service PLKI and its franchisees from various plant locations. These costs are significantly impacted by increases in the cost of fresh chicken, which can result from a number of factors, including increases in the cost of grain, disease, declining market supply of fast-food sized chickens and other factors that affect availability. | |
In order to ensure favorable pricing for fresh chicken purchases and to maintain an adequate supply of fresh chicken for the Popeyes system, SMS has entered into chicken purchasing contracts with chicken suppliers. The contracts, which pertain to the vast majority of our system-wide purchases for Popeyes are “cost-plus” contracts that utilize prices based upon the cost of feed grains plus certain agreed upon non-feed and processing costs. In order to stabilize pricing for the Popeyes system, SMS has entered into commodity pricing agreements for the first quarter of 2014 for certain commodities including corn and soy, which impact the price of poultry and other food cost. | |
The Company has entered into long-term beverage supply agreements with certain major beverage vendors. Pursuant to the terms of these arrangements, marketing rebates are provided to the Company and its franchisees from the beverage vendors based upon the dollar volume of purchases for company-operated restaurants and franchised restaurants, respectively, which will vary according to their demand for beverage syrup and fluctuations in the market rates for beverage syrup. | |
Formula and Supply Agreements with Former Owner. The Company has a formula licensing agreement with the estate of Alvin C. Copeland, the founder of Popeyes and the primary owner of Diversified Foods and Seasonings, Inc. (“Diversified”). Under this agreement, the Company has the worldwide exclusive rights to the Popeyes fried chicken recipe and certain other ingredients used in Popeyes products. The agreement provides that the Company pay the estate of Mr. Copeland approximately $3.1 million annually until March 2029. During each of 2013, 2012, and 2011, the Company expensed approximately $3.1 million under this agreement. The Company also has a supply agreement with Diversified through which the Company purchases certain proprietary spices and other products made exclusively by Diversified. | |
Business Process Services. Certain accounting and information technology services are provided to the Company under an agreement with third party provider which expires April 30, 2015. At December 29, 2013, future minimum payments under this contract are approximately $1.8 million, through 2014 and $0.6 million during 2015. During 2013, 2012 and 2011, the Company expensed $1.7 million, $1.5 million, and $1.4 million, respectively, under this agreement. | |
Information Technology Outsourcing. Certain information technology services are provided to the Company under Managed Information Technology Services Agreements with certain third party providers. At December 29, 2013, future minimum payments under these contracts are $1.6 million, $1.7 million and $0.4 million in 2014, 2015 and 2016, respectively. During 2013, 2012, and 2011, the Company expensed $2.6 million, $2.4 million, and $2.1 million, respectively, under this agreement. | |
Employment Agreements. As of December 29, 2013, the Company had employment agreements with six senior executives which provide for annual base salaries ranging from $312,000 to $700,000 subject to annual adjustment by the Board of Directors, an annual incentive bonus, fringe benefits, participation in Company-sponsored benefit plans and such other compensation as may be approved by the Board of Directors. The terms of the agreements end in 2014, unless earlier terminated or otherwise renewed pursuant to the terms thereof and are automatically extended for successive one-year periods following the expiration of each term unless notice is given by the Company or the executive not to renew. Pursuant to the terms of the agreements, if employment is terminated without cause or if written notice not to renew employment is given by the Company, the terminated executive would in certain cases be entitled to, among other things, one, one and one half or two times annual base salary, as applicable, and one, one and one half or two times the bonus payable, as applicable, to the individual for the fiscal year in which such termination occurs. Under the terms of the agreements, upon a change of control of the Company and a significant reduction in the executive’s responsibilities or duties, the executive may terminate employment and would be entitled to receive the same severance pay the executive would have received had the executive’s employment been terminated without cause. | |
Litigation. The Company is a defendant in various legal proceedings arising in the ordinary course of business, including claims resulting from “slip and fall” accidents, employment-related claims, claims from guests or employees alleging illness, injury or other food quality, health or operational concerns and claims related to franchise matters. The Company has established adequate reserves to provide for the defense and settlement of such matters. The Company’s management believes their ultimate resolution will not have a material adverse effect on the Company’s financial condition or its results of operations. | |
Insurance Programs. The Company carries property, general liability, business interruption, crime, directors and officers liability, employment practices liability, environmental and workers’ compensation insurance policies which it believes are customary for businesses of its size and type. Pursuant to the terms of their franchise agreements, the Company’s franchisees are also required to maintain certain types and levels of insurance coverage, including commercial general liability insurance, workers’ compensation insurance, all risk property and automobile insurance. | |
The Company has established reserves with respect to the programs described above based on the estimated total losses the Company will experience. At December 29, 2013, the Company’s insurance reserves of approximately $0.1 million were collateralized by letters of credit and/or cash deposits of $0.9 million. | |
Environmental Matters. The Company is subject to various federal, state and local laws regulating the discharge of pollutants into the environment. The Company believes that it conducts its operations in substantial compliance with applicable environmental laws and regulations. Certain of the Company’s current and formerly owned and/or leased properties are known or suspected to have been used by prior owners or operators as retail gas stations, and a few of these properties may have been used for other environmentally sensitive purposes. Certain of these properties previously contained underground storage tanks (“USTs”), and some of these properties may currently contain abandoned USTs. It is possible that petroleum products and other contaminants may have been released at these properties into the soil or groundwater. Under applicable federal and state environmental laws, the Company, as the current or former owner or operator of these sites, may be jointly and severally liable for the costs of investigation and remediation of any such contamination, as well as any other environmental conditions at its properties that are unrelated to USTs. The Company has obtained insurance coverage that it believes is adequate to cover any potential environmental remediation liabilities. | |
Foreign Operations. The Company’s international operations are limited to franchising activities. During 2013, 2012, and 2011, such operations represented approximately 10.9%, 11.2%, and 12.2%, of total franchise revenues, respectively; and approximately 6.4%, 6.9%, and 7.5%, of total revenues, respectively. At December 29, 2013, approximately $1.3 million of the Company’s accounts receivable were related to its international franchise operations. | |
Significant Franchisee. During 2013, 2012, and 2011, one domestic franchisee accounted for approximately 7.8%, 8.3%, and 8.3%, respectively of the Company’s royalty revenues. | |
Geographic Concentrations. Of the Company’s domestic company-operated and franchised restaurants, the majority are located in the southern and southwestern United States. The Company’s international franchisees operate in Korea, Indonesia, Canada, Turkey and various countries throughout Central America, Asia and Europe. |
Other_Expenses_Income_Net
Other Expenses (Income), Net | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Expenses (Income), Net | ' | |||||||||||
Other Expenses (Income), Net | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Disposals of property and equipment | $ | 0.4 | $ | 0.3 | $ | 0.5 | ||||||
Net gain on sale of assets | (0.1 | ) | (0.9 | ) | (0.8 | ) | ||||||
Corporate support center relocation | — | — | 0.8 | |||||||||
Other | — | 0.1 | — | |||||||||
$ | 0.3 | $ | (0.5 | ) | $ | 0.5 | ||||||
During 2012, the net gain on sale of assets includes a $0.3 million gain on the sale of real estate to a franchisee and the recognition of $0.5 million in deferred gains related to seven properties formerly leased to a franchisee. | ||||||||||||
During 2011, the net gain on sale of assets includes the sale of two properties to a franchisee for approximately $0.7 million and recognized a gain of $0.5 million. | ||||||||||||
The Company recognized $0.8 million in expense for the corporate support center relocation in 2011. This expense was mainly for rent, legal fees and closing the previous service center. |
Interest_Expense_Net
Interest Expense, Net | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Banking and Thrift, Interest [Abstract] | ' | |||||||||||
Interest Expense, Net | ' | |||||||||||
Interest Expense, Net | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Interest on debt | $ | 2.4 | $ | 2.8 | $ | 2.8 | ||||||
Amortization and write-offs of debt issuance costs | 0.8 | 0.4 | 0.4 | |||||||||
Other debt related charges | 0.6 | 0.5 | 0.6 | |||||||||
Interest income | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||
$ | 3.7 | $ | 3.6 | $ | 3.7 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Total income taxes for fiscal years 2013, 2012, and 2011, were allocated as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Income taxes in the statements of operations, net | $ | 20.4 | $ | 17.3 | $ | 12.8 | ||||||
Income taxes charged (credited) to statements of shareholders’ equity (deficit): | ||||||||||||
Compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes | (3.4 | ) | (0.4 | ) | (0.1 | ) | ||||||
Other comprehensive income | 0.2 | — | (0.5 | ) | ||||||||
$ | 17.2 | $ | 16.9 | $ | 12.2 | |||||||
During the first quarter of 2013 Congress passed the “American Taxpayer Relief Act of 2012” which included the retroactive extension of business provisions that had expired at the end of 2011 and 2012. Since the bill was not signed until the first fiscal quarter of 2013, the financial statement benefits were not reflected until the first fiscal quarter of 2013. | ||||||||||||
Total U.S. and foreign income before income taxes for fiscal years 2013, 2012, and 2011, were as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
United States | $ | 49.5 | $ | 41.3 | $ | 31.4 | ||||||
Foreign | 5 | 6.4 | 5.6 | |||||||||
$ | 54.5 | $ | 47.7 | $ | 37 | |||||||
The components of income tax expense were as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Current income tax expense: | ||||||||||||
Federal | $ | 12.8 | $ | 12.2 | $ | 9.2 | ||||||
Foreign | 1.4 | 1.3 | 1.1 | |||||||||
State | 1.7 | 1.6 | 1.2 | |||||||||
15.9 | 15.1 | 11.5 | ||||||||||
Deferred income tax expense: | ||||||||||||
Federal | 4.1 | 2 | 1.2 | |||||||||
State | 0.4 | 0.2 | 0.1 | |||||||||
4.5 | 2.2 | 1.3 | ||||||||||
$ | 20.4 | $ | 17.3 | $ | 12.8 | |||||||
Applicable foreign withholding taxes are generally deducted from royalties and certain other revenues collected from international franchisees. Foreign taxes withheld are generally eligible for credit against the Company’s U.S. income tax liabilities. | ||||||||||||
Reconciliations of the Federal statutory income tax rate to the Company’s effective tax rate are presented below: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of federal benefit | 1.9 | % | 1.5 | % | 0.1 | % | ||||||
Valuation allowance | 0.9 | % | 0.8 | % | 1.9 | % | ||||||
Provision to return adjustments | (0.3 | )% | (0.1 | )% | 0.2 | % | ||||||
Adjustments to estimated tax reserves | 0.1 | % | (1.2 | )% | 0.3 | % | ||||||
Other items, net | (0.2 | )% | 0.3 | % | (2.9 | )% | ||||||
Effective income tax rate | 37.4 | % | 36.3 | % | 34.6 | % | ||||||
Provision to return adjustments include the effects of the reconciliation of income tax amounts recorded in our Consolidated Statements of Operations to amounts reflected on our tax returns. In 2011, “Other items, net” included a tax benefit of approximately $0.8 million, or 2.2%, for work opportunity tax credits related to prior years. | ||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: | ||||||||||||
(in millions) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Deferred franchise fee revenue | $ | 0.8 | $ | 1 | ||||||||
State net operating loss carry forwards | 6.3 | 5.9 | ||||||||||
Deferred rentals | 4 | 3.9 | ||||||||||
Deferred compensation | 3.8 | 3.8 | ||||||||||
Allowance for doubtful accounts | 0.1 | 0.4 | ||||||||||
Insurance accruals | — | 0.1 | ||||||||||
Other accruals | 0.4 | 0.4 | ||||||||||
Reorganization costs | 2.3 | 2.2 | ||||||||||
Total gross deferred tax assets | 17.7 | 17.7 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Franchise value and trademarks | (19.3 | ) | (18.4 | ) | ||||||||
Property, plant and equipment | (5.7 | ) | (2.4 | ) | ||||||||
Total gross deferred liabilities | (25.0 | ) | (20.8 | ) | ||||||||
Valuation allowance | (6.3 | ) | (5.9 | ) | ||||||||
Net deferred tax liability | $ | (13.6 | ) | $ | (9.0 | ) | ||||||
The Company assesses quarterly the likelihood that the deferred tax assets will be recovered. To make this assessment, historical levels of income, expectations and risks associated with estimates of future taxable income are considered. If recovery is not likely, the Company increases its valuation allowance for the deferred tax assets that it estimates will not be recovered. | ||||||||||||
At December 29, 2013, the Company had state net operating losses (“NOLs”) of approximately $122 million which expire between 2017 and 2028. The Company established a full valuation allowance on the deferred tax asset related to these NOLs as it is more likely than not that such tax benefit will not be realized. As such, the Company has established a valuation allowance of approximately $6.3 million at December 29, 2013 and $5.9 million at December 30, 2012. | ||||||||||||
The amount of unrecognized tax benefits were approximately $1.4 million as of December 29, 2013 of which approximately $0.2 million, if recognized, would impact the effective income tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 29, 2013 is as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Balance, beginning of year | $ | 1.3 | $ | 2.2 | $ | 2.1 | ||||||
Additions related to current year | 0.1 | — | 0.2 | |||||||||
Reductions related to prior years | — | (0.8 | ) | — | ||||||||
Reductions due to statute expiration | — | (0.1 | ) | (0.1 | ) | |||||||
Balance, end of year | $ | 1.4 | $ | 1.3 | $ | 2.2 | ||||||
The Company recognizes interest and penalties related to uncertain tax positions as a component of its income tax expense. Interest and penalties on uncertain tax positions for the fiscal years 2013, 2012 and 2011 were not significant. The Company had approximately $0.1 million of accrued interest and penalties related to uncertain tax positions as of December 29, 2013 and December 30, 2012. | ||||||||||||
Unrecognized tax benefits and accrued interest and penalties are reported as a component of deferred credits and other long-term liabilities. | ||||||||||||
The Company files income tax returns in the United States and various state jurisdictions. The U.S. federal tax years 2010 through 2012 are open to audit. In general, the state tax years open to audit range from 2009 through 2012. |
Components_of_Earnings_Per_Sha
Components of Earnings Per Share Computation | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Components of Earnings Per Share Computation | ' | |||||||||||
Components of Earnings Per Share Computation | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Net income | $ | 34.1 | $ | 30.4 | $ | 24.2 | ||||||
Denominator for basic earnings per share — weighted average shares | 23.6 | 23.9 | 24.5 | |||||||||
Dilutive employee stock options | 0.5 | 0.6 | 0.5 | |||||||||
Denominator for diluted earnings per share | 24.1 | 24.5 | 25 | |||||||||
The Company’s basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Diluted earnings per share calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include employee stock options, outstanding restricted stock awards and unvested restricted share units. Performance based awards are included in the average diluted shares outstanding each period if the performance criteria have been met at the end of the respective periods. | ||||||||||||
Potentially dilutive shares are excluded from the diluted earnings per share computation in periods in which they have an anti-dilutive effect. The weighted average number of shares subject to antidilutive options were not significant for the fiscal year 2013 and 2012. The weighted average number of shares subject to antidilutive options were 0.1 million for fiscal year 2011. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Information | ' | |||||||||||
Segment Information | ||||||||||||
The Company is engaged in developing, operating and franchising Popeyes Louisiana Kitchen quick-service restaurants. Based on its internal reporting and management structure, the Company has determined that it has two reportable segments: franchise operations and company-operated restaurants. The company-operated restaurant segment derives its revenues from the operation of company owned restaurants. The franchise segment consists of domestic and international franchising activities and derives its revenues principally from (1) ongoing royalty payments that are determined based on a percentage of franchisee sales; (2) franchise fees associated with new restaurant openings; (3) development fees associated with the opening of new franchised restaurants in a given market; and (4) rental income associated with properties leased or subleased to franchisees. | ||||||||||||
Beginning in 2013, the Company no longer allocates a 5% royalty to the company-operated restaurants for segment reporting purposes. Segment operating profit for 2012 and 2011 have been revised to conform to current year's presentation. | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Revenues | ||||||||||||
Franchise operations | $ | 127.3 | $ | 114.8 | $ | 99.2 | ||||||
Company-operated restaurants | 78.7 | 64 | 54.6 | |||||||||
$ | 206 | $ | 178.8 | $ | 153.8 | |||||||
Operating profit | ||||||||||||
Franchise operations | $ | 54.7 | $ | 47.8 | $ | 37.4 | ||||||
Company-operated restaurants | 10.5 | 7.6 | 8 | |||||||||
65.2 | 55.4 | 45.4 | ||||||||||
Less unallocated expenses | ||||||||||||
Depreciation and amortization | 6.7 | 4.6 | 4.2 | |||||||||
Other expenses (income), net | 0.3 | (0.5 | ) | 0.5 | ||||||||
Operating profit | 58.2 | 51.3 | 40.7 | |||||||||
Interest expense, net | 3.7 | 3.6 | 3.7 | |||||||||
Income before income taxes | $ | 54.5 | $ | 47.7 | $ | 37 | ||||||
Capital expenditures | ||||||||||||
Franchise operations | $ | 18.8 | $ | 18.1 | $ | 4.1 | ||||||
Company-operated restaurants | 14.5 | 9.2 | 3.5 | |||||||||
$ | 33.3 | $ | 27.3 | $ | 7.6 | |||||||
Goodwill — year end | ||||||||||||
Franchise operations | $ | 8.9 | $ | 8.9 | $ | 8.9 | ||||||
Company-operated restaurants | 2.2 | 2.2 | 2.2 | |||||||||
$ | 11.1 | $ | 11.1 | $ | 11.1 | |||||||
Total assets — year end | ||||||||||||
Franchise operations | $ | 154.8 | $ | 140 | $ | 109.8 | ||||||
Company-operated restaurants | 45.7 | 32.4 | 25.8 | |||||||||
$ | 200.5 | $ | 172.4 | $ | 135.6 | |||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ||||||||||||||||
(in millions, except per share data) | 2013 | |||||||||||||||
Results of Operations | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Total revenues | $ | 60.4 | $ | 47.9 | $ | 49.3 | $ | 48.4 | ||||||||
Operating profit | 16.2 | 14.5 | 15.4 | 12.1 | ||||||||||||
Net income | 9.6 | 8.5 | 9 | 7 | ||||||||||||
Basic earnings per common share | 0.41 | 0.36 | 0.38 | 0.3 | ||||||||||||
Diluted earnings per common share | 0.4 | 0.35 | 0.37 | 0.29 | ||||||||||||
(in millions, except per share data) | 2012 | |||||||||||||||
Results of Operations | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Total revenues | $ | 52.8 | $ | 39.6 | $ | 38.9 | $ | 47.5 | ||||||||
Operating profit | 14.2 | 11.4 | 11.1 | 14.6 | ||||||||||||
Net income | 8.3 | 6.6 | 6.9 | 8.6 | ||||||||||||
Basic earnings per common share | 0.34 | 0.28 | 0.29 | 0.36 | ||||||||||||
Diluted earnings per common share | 0.34 | 0.27 | 0.29 | 0.35 | ||||||||||||
(a) | The Company’s first quarters for 2013 and 2012 contained sixteen weeks. The fourth quarter 2012 included 13 weeks. The remaining quarters of 2013 and 2012 were twelve weeks. The 53rd week in 2012 increased sales by company-operated restaurants by approximately $1.2 million and increased franchise revenues by approximately $1.7 million. The net impact of the 53rd week earnings per share was approximately $0.01 per diluted share. | |||||||||||||||
(b) | The Company opened four company-operated restaurants during the fourth quarter 2013 compared to five during the same period last year. Total sales of the four company-operated restaurants were $0.9 million for the fourth quarter 2013. | |||||||||||||||
(c) | The Company recorded $1.8 million in franchise revenues related to two significant franchisee transfers during the fourth quarter 2012. | |||||||||||||||
(d) | The Company recognized a $0.8 million in net gains on sale assets during the fourth quarter 2012 associated with the sale of real estate to a franchisee and the recognition of deferred gains related to seven properties formerly leased to a franchisee. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 29, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Principles of Consolidation | ' | ||
Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. | |||
Use of Estimates | ' | ||
Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities. These estimates affect the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during each reporting period. Actual results could differ from those estimates. | |||
Fiscal Year | ' | ||
Fiscal Year. The Company has a 52/53-week fiscal year that ends on the last Sunday in December. The 2013 and 2011 fiscal years both consisted of 52 weeks. Fiscal year 2012 consisted of 53 weeks. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents. The Company considers all money market investment instruments and certificates of deposit with original maturities of three months or less to be cash equivalents. Under the terms of the Company’s bank agreements, outstanding checks in excess of the cash balances in the Company’s primary disbursement accounts create a bank overdraft liability. Bank overdrafts were insignificant for both fiscal years 2013 and 2012. | |||
Accounts Receivable, Net | ' | ||
Accounts receivable consist primarily of amounts due from franchisees related to royalties, and rents, and various miscellaneous items. The accounts receivable balance is stated net of an allowance for doubtful accounts. The Company reserves a franchisee’s receivable balance based upon the age of the receivable and consideration of other factors and events. | |||
Notes Receivable, Net | ' | ||
Notes Receivable, Net. Notes receivable consist of notes from franchisees to finance certain past due franchise revenues and rents. The notes receivable balance is stated net of an allowance for uncollectible amounts which is evaluated each reporting period on a note-by-note basis. | |||
Inventories | ' | ||
Inventories. Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value and consist principally of food, beverage items, paper and supplies. | |||
Property and Equipment | ' | ||
Property and Equipment. Property and equipment is stated at cost less accumulated depreciation. | |||
Provisions for depreciation are made using the straight-line method over an asset’s estimated useful life: 7 to 35 years for buildings; 5 to 15 years for equipment; and in the case of leasehold improvements and capital lease assets, the lesser of the economic life of the asset or the lease term (generally 3 to 20 years). During 2013, 2012, and 2011, depreciation expense was approximately $6.2 million, $4.0 million, and $3.7 million, respectively. | |||
The Company capitalizes interest on external costs in connection with the construction of new restaurants. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Interest expense of $0.2 million was capitalized in 2013. No interest was incurred for such purposes in 2012 and 2011. | |||
The Company evaluates property and equipment for impairment during the fourth quarter of each year or when circumstances arise indicating that a particular asset may be impaired. For property and equipment at company-operated restaurants, annual impairment evaluations are performed on an individual restaurant basis. The Company evaluates restaurants using a “two-year history of operating losses” as our primary indicator of potential impairment. The Company evaluates recoverability based on the restaurant’s forecasted undiscounted cash flows for the expected remaining useful life of the unit, which incorporate our best estimate of sales growth and margin improvement based upon our plans for the restaurant and actual results at comparable restaurants. The carrying values of restaurant assets that are not considered recoverable are written down to their estimated fair market value, which are generally measured by discounting estimated future cash flows. | |||
Goodwill, Trademarks, and Other Intangible Assets | ' | ||
Goodwill, Trademarks, and Other Intangible Assets. Amounts assigned to goodwill arose from the allocation of reorganization value when the Company emerged from bankruptcy in 1992 and from business combinations accounted for by the purchase method. Amounts assigned to trademarks arose from the allocation of reorganization value when the Company emerged from bankruptcy in 1992. These assets are deemed indefinite-lived assets and are not amortized for financial reporting purposes. See Note 6 for further disclosure. | |||
The Company’s finite-lived intangible assets (primarily re-acquired franchise rights) are amortized on a straight-line basis over 10 to 20 years based on the remaining life of the original franchise agreement or lease agreement. | |||
The Company evaluates goodwill and trademarks for impairment on an annual basis (during the fourth quarter of each year) or more frequently when circumstances arise indicating that a particular asset may be impaired. The impairment evaluation for goodwill includes a comparison of the fair value of each of the Company’s reporting units with their carrying value. The Company’s reporting units are its business segments. Goodwill is allocated to each reporting unit for purposes of this analysis. Goodwill associated with bankruptcy reorganization value is assigned to reporting units using a relative fair value approach. Goodwill associated with a business combination is allocated to the reporting unit or a component of the reporting unit expected to benefit from the synergies of the combination. The fair value of each reporting unit is the amount for which the reporting unit could be sold in a current transaction between willing parties. The Company estimates the fair value of its reporting units using a discounted cash flow model. The operating assumptions used in the discounted cash flow model are generally consistent with the reporting unit’s past performance and with the projections and assumptions that are used in the Company’s current operating plans. Such assumptions are subject to change as a result of changing economic and competitive conditions. If a reporting unit’s carrying value exceeds its fair value, goodwill is written down to its implied fair value. The Company follows a similar analysis for the evaluation of trademarks, but that analysis is performed on a consolidated basis. During 2013, 2012, and 2011, there was no impairment of goodwill or trademarks identified during the Company’s annual impairment testing. | |||
Costs incurred to renew or extend the term of recognized intangibles are expensed as incurred and reported as a component of “General and administrative expenses.” | |||
Fair Value Measurement | ' | ||
Fair Value Measurements. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For those assets and liabilities recorded or disclosed at fair value, we determine fair value based upon the quoted market price, if available. If a quoted market price is not available for identical assets, we determine fair value based upon the quoted market price of similar assets or the present value of expected future cash flows considering the risks involved, including counterparty performance risk if appropriate, and using discount rates appropriate for the duration. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation. | |||
Level 1 | Inputs based upon quoted prices in active markets for identical assets. | ||
Level 2 | Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly. | ||
Level 3 | Inputs that are unobservable for the asset. | ||
Debt Issuance Costs | ' | ||
Debt Issuance Costs. Costs incurred to secure new debt facilities are capitalized and then amortized utilizing a method that approximates the effective interest method for term loans and the straight-line method for revolving credit facilities. Absent a basis for cost deferral, debt amendment fees are expensed as incurred. In the Company’s Consolidated Statements of Operations, the amortization of debt issuance costs, any write-off of debt issuance costs when a debt facility is modified or prematurely paid off, and debt amendment fees are included as a component of “Interest expense, net". | |||
Advertising Cooperative | ' | ||
Advertising Cooperative. The Company maintains an advertising cooperative that receives contributions from the Company and from its franchisees, based upon a percentage of restaurant sales, as required by their franchise agreements. This cooperative is used exclusively for marketing of the Popeyes brand. The Company acts as an agent for the franchisees with regards to their contributions to the advertising cooperative. | |||
In the Company’s consolidated financial statements, contributions received and expenses of the advertising cooperative are excluded from the Company’s Consolidated Statements of Operations and the Consolidated Statements of Cash Flow. The Company reports all assets and liabilities of the advertising cooperative as “Advertising cooperative assets, restricted” and “Advertising cooperative liabilities” in the Consolidated Balance Sheet. The advertising cooperatives assets, consisting primarily of cash and accounts receivable from the franchisees, can only be used for selected purposes and are considered restricted. The advertising cooperative liabilities represent the corresponding obligation arising from the receipt of the contributions to purchase advertising and promotional programs. | |||
The Company’s contributions to the advertising cooperative based on company-operated restaurant sales are reflected in the Company’s Consolidated Statements of Operations as a component of “Restaurant employee, occupancy and other expenses.” Additional contributions to the advertising cooperative for national media advertising and other marketing related costs are expensed as a component of “General and administrative expenses.” | |||
Leases | ' | ||
Leases. When determining the lease term, the Company includes option periods for which failure to renew the lease imposes economic penalty on the Company in such an amount that a renewal appears, at the inception of the lease, to be reasonably assured. The lease term commences on the date when the Company has the right to control the use of the leased property, which can occur before the rent payments are due under the terms of the lease. | |||
The Company records rent expense for leases that contain scheduled rent increases on a straight-line basis over the lease term, including any option periods considered in the determination of that lease term. Contingent rentals are generally based on sales levels in excess of stipulated amounts, and thus are not considered minimum lease payments and are included in rent expense as they accrue. | |||
Tenant improvement allowances and other lease incentives are recognized as reductions to rent expense on a straight-line basis over the lease term. | |||
Accumulated Other Comprehensive Income (Loss) | ' | ||
Accumulated Other Comprehensive Income (Loss). Comprehensive income (loss) is net income plus the change in fair value of the Company’s cash flow hedge discussed in Note 9 plus derivative (gains) or losses realized in earnings during the period. Amounts included in accumulated other comprehensive income (loss) for the Company’s derivative instruments are recorded net of the related income tax effects. | |||
Revenue Recognition-Sales by Company-Operated Restaurants | ' | ||
Revenue Recognition — Sales by Company-Operated Restaurants. Revenues from the sale of food and beverage products are recognized on a cash basis. The Company presents sales net of sales tax and other sales related taxes. | |||
Revenue Recognition-Franchise Operations | ' | ||
Revenue Recognition — Franchise Operations. Revenues from franchising activities include development fees associated with a franchisee’s planned development of a specified number of restaurants within a defined geographic territory, franchise fees associated with the opening of new restaurants, and ongoing royalty fees which are generally based on five percent of net restaurant sales. Development fees and franchise fees are recorded as deferred franchise revenue when received and are recognized as revenue when the restaurants covered by the fees are opened or all material services or conditions relating to the fees have been substantially performed or satisfied by the Company. The Company recognizes royalty revenues as earned. Franchise renewal fees are recognized when a renewal agreement becomes effective. | |||
Rent from Franchised Restaurants | ' | ||
Rent from Franchised Restaurants. Rent from franchised restaurants is composed of rental income associated with properties leased or subleased to franchisees. Our typical restaurant leases to franchisees are triple net to the franchisee, requiring them to pay minimum rent or percentage rent based on sales in excess of specified amounts or both minimum rent and percentage rent plus real estate taxes, maintenance costs and insurance premiums. These leases are typically cross-defaulted with the corresponding franchise agreement for the restaurant. Minimum rents are recognized on the straight-line basis over the lease term. Percentage rents based on sales are recognized as earned. | |||
Cash Consideration from Vendors | ' | ||
Cash Consideration from Vendors. The Company has entered into long-term beverage supply agreements with certain major beverage vendors. Pursuant to the terms of these arrangements, marketing rebates are provided to the Company and its advertising fund from the beverage vendors based upon the dollar volume of purchases for company-operated restaurants and franchised restaurants. For Company-operated restaurants, these incentives are recognized as earned throughout the year and are classified as a reduction of “Restaurant food, beverages and packaging” in the Consolidated Statements of Operations. The incentives recognized by company-operated restaurants were approximately $1.1 million, $0.6 million, and $0.6 million, in 2013, 2012, and 2011, respectively. Rebates earned and contributed to the cooperative advertising fund are excluded from the Company’s Consolidated Statements of Operations. | |||
Gains and Losses Associated With Re-franchising | ' | ||
Gains and Losses Associated With Re-franchising. From time to time, the Company engages in re-franchising transactions. Typically, these transactions involve the sale of a company-operated restaurant to an existing or new franchisee. | |||
The Company defers gains on the sale of company-operated restaurants when the Company has continuing involvement in the assets sold beyond the customary franchisor role. The Company’s continuing involvement generally includes seller financing or the leasing of real estate to the franchisee. Deferred gains are recognized over the remaining term of the continuing involvement. Losses are recognized immediately. | |||
Research and Development | ' | ||
Research and Development. Research and development costs are expensed as incurred. | |||
Foreign Currency Transactions | ' | ||
Foreign Currency Transactions. Substantially all of the Company’s foreign-sourced revenues (principally royalties from international franchisees) are recorded in U.S. dollars. The aggregate effects of any exchange gains or losses are included in the accompanying Consolidated Statements of Operations as a component of “General and administrative expenses.” | |||
Income Taxes | ' | ||
Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company provides a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |||
The Company recognizes the benefit of positions taken or expected to be taken in a tax return in the financial statements when it is more likely than not (i.e. a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement. Changes in judgment that result in subsequent recognition, derecognition or change in a measurement of a tax position taken in a prior annual period (including any related interest and penalties) is recognized as a discrete item in the interim period in which the change occurs. | |||
Stock-Based Compensation Expense | ' | ||
Stock-Based Compensation Expense. The Company measures and recognizes compensation cost at fair value for all share-based payments, including stock options, restricted share awards and restricted share units. The fair value of stock options with service and market conditions are valued utilizing a Monte Carlo simulation model. The fair value of stock options with only service conditions are estimated using a Black-Scholes option-pricing model. Restricted share awards and restricted share units are valued at the market price of the Company’s shares on the grant date. The fair value of restricted share awards with service and market conditions are valued utilizing a Monte Carlo simulation model. The fair value of stock-based compensation is amortized either on the graded vesting attribution method or on the cliff vesting attribution method depending on the specific award. The Company issues new shares for common stock upon exercise of stock options. | |||
Subsequent Events | ' | ||
Subsequent Events. The Company discloses material events that occur after the balance sheet date but before the financial statements are issued. In general, these events are recognized if the condition existed at the date of the balance sheet, but not recognized if the condition did not exist at the balance sheet date. The Company discloses non-recognized events if required to keep the financial statements from being misleading. | |||
Derivative Financial Instruments | ' | ||
Derivative Financial Instruments. The Company used interest rate swap agreements to reduce its interest rate risk on its floating rate debt under the terms of its 2010 amended credit facility. The Company recognizes all derivatives on the balance sheet at fair value. At inception and on an on-going basis, the Company assesses whether each derivative that qualifies for hedge accounting continues to be highly effective in offsetting changes in the cash flows of the hedged item. If the derivative meets the hedge criteria as defined by certain accounting standards, changes in the fair value of the derivative are recognized in accumulated other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value, if any, is immediately recognized in earnings. | |||
Reclassifications | ' | ||
Reclassifications. In the accompanying consolidated financial statements and in these notes, certain prior year amounts have been reclassified to conform with current year's presentation. "Rent from franchised restaurants" and "Occupancy expenses - franchise restaurants" on the Consolidated Statements of Operations were "Rent and other revenues" and "Rent and other occupancy expenses", respectively, in prior years. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Supplemental Cash Flow Information | ' | |||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Interest paid | $ | 3.1 | $ | 2.9 | $ | 2.4 | ||||||
Corporate office lease tenant improvement allowances and incentives | — | — | (3.0 | ) | ||||||||
Property acquired under capital lease obligation | — | 1 | — | |||||||||
Income taxes paid, net | 16.2 | 12.5 | 10.6 | |||||||||
Changes in the allowance for doubtful accounts | ' | |||||||||||
During 2013, 2012, and 2011, changes in the allowance for doubtful accounts were as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Balance, beginning of year | $ | 0.2 | $ | 0.6 | $ | 1.2 | ||||||
Provisions for credit (recoveries) losses | — | (0.1 | ) | (0.3 | ) | |||||||
Write-offs | (0.1 | ) | (0.3 | ) | (0.3 | ) | ||||||
Balance, end of year | $ | 0.1 | $ | 0.2 | $ | 0.6 | ||||||
Other_Current_Assets_Tables
Other Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Summary of other current assets | ' | |||||||
(in millions) | 2013 | 2012 | ||||||
Deferred tax assets | $ | — | $ | 0.3 | ||||
Prepaid income taxes | 5.2 | — | ||||||
Prepaid expenses and other current assets | 4.6 | 3.9 | ||||||
$ | 9.8 | $ | 4.2 | |||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Summary of Property and Equipment, Net | ' | |||||||
(in millions) | 2013 | 2012 | ||||||
Land | $ | 16 | $ | 12.1 | ||||
Buildings and improvements | 60.8 | 43.2 | ||||||
Equipment | 33.3 | 23.3 | ||||||
Properties held for sale and other | 0.1 | 0.7 | ||||||
110.2 | 79.3 | |||||||
Less accumulated depreciation and amortization | (32.6 | ) | (28.0 | ) | ||||
$ | 77.6 | $ | 51.3 | |||||
Summary of Acquisition cost | ' | |||||||
The following table summarizes the allocation of the $14.6 million total cost of the acquisition including the $13.8 million purchase price: | ||||||||
Land | $ | 7.5 | ||||||
Building and improvements | 6.5 | |||||||
Properties held for sale and other | 0.6 | |||||||
Total cost | $ | 14.6 | ||||||
Trademarks_and_Other_Intangibl1
Trademarks and Other Intangible Assets, Net (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Trademarks and other intangible assets, net | ' | |||||||
(in millions) | 2013 | 2012 | ||||||
Non-amortizable intangible assets: | ||||||||
Trademarks | $ | 50 | $ | 50 | ||||
Other | 0.6 | 0.6 | ||||||
50.6 | 50.6 | |||||||
Amortizable intangible assets: | ||||||||
Re-acquired franchise rights | 7.1 | 7.1 | ||||||
Accumulated amortization | (4.3 | ) | (3.8 | ) | ||||
2.8 | 3.3 | |||||||
$ | 53.4 | $ | 53.9 | |||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Summary of other current liabilities | ' | |||||||
(in millions) | 2013 | 2012 | ||||||
Accrued wages, bonuses and severances | $ | 6 | $ | 2.6 | ||||
Other | 2.1 | 3.3 | ||||||
$ | 8.1 | $ | 5.9 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Summary of assets and liabilities that are measured at fair value on a recurring basis | ' | |||||||||||||||
The following table reflects assets and liabilities that are measured and carried at fair value on a recurring basis as of December 29, 2013 and December 30, 2012: | ||||||||||||||||
Quoted Prices in Active | Significant Other | Significant | Carrying | |||||||||||||
Markets for Identical | Observable Inputs | Unobservable | Value | |||||||||||||
Asset or Liability | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
29-Dec-13 | ||||||||||||||||
Financial Assets | ||||||||||||||||
Cash equivalents | $ | 10.6 | $ | — | $ | — | $ | 10.6 | ||||||||
Restricted cash (advertising cooperative assets) | 4.3 | — | — | 4.3 | ||||||||||||
Total assets at fair value | $ | 14.9 | $ | — | $ | — | $ | 14.9 | ||||||||
Financial Liabilities | ||||||||||||||||
Long term debt and other borrowings | $ | — | 72.2 | $ | — | 67.2 | ||||||||||
Total liabilities at fair value | $ | — | $ | 72.2 | $ | — | $ | 67.2 | ||||||||
Quoted Prices in Active | Significant Other | Significant | Carrying | |||||||||||||
Markets for Identical | Observable Inputs | Unobservable | Value | |||||||||||||
Asset or Liability | (Level 2) | Inputs | ||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||
December 30, 2012 | ||||||||||||||||
Financial Assets | ||||||||||||||||
Cash equivalents | $ | 16.3 | $ | — | $ | — | $ | 16.3 | ||||||||
Restricted cash (advertising cooperative assets) | 4.3 | — | — | 4.3 | ||||||||||||
Total assets at fair value | $ | 20.6 | $ | — | $ | — | $ | 20.6 | ||||||||
Financial Liabilities | ||||||||||||||||
Interest rate swap agreement (Note 9) | $ | — | $ | 1.3 | $ | — | $ | 1.3 | ||||||||
Long term debt and other borrowings | $ | — | 74.4 | $ | — | 72.8 | ||||||||||
Total liabilities at fair value | $ | — | $ | 75.7 | $ | — | $ | 74.1 | ||||||||
LongTerm_Debt_and_Other_Borrow1
Long-Term Debt and Other Borrowings (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 29, 2013 | ||||||||||||||||||||||||||
Long-term Debt, Other Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Summary of Long-Term Debt | ' | |||||||||||||||||||||||||
(in millions) | 2013 | 2012 | ||||||||||||||||||||||||
2013 Credit Facility: | ||||||||||||||||||||||||||
Revolving credit facility | $ | 63 | $ | — | ||||||||||||||||||||||
2010 Credit Facility: | ||||||||||||||||||||||||||
Revolving credit facility | — | 37 | ||||||||||||||||||||||||
Term loan | — | 31.3 | ||||||||||||||||||||||||
Capital lease obligations | 2.2 | 2.3 | ||||||||||||||||||||||||
Other notes | 2 | 2.2 | ||||||||||||||||||||||||
67.2 | 72.8 | |||||||||||||||||||||||||
Less current portion | (0.3 | ) | (6.0 | ) | ||||||||||||||||||||||
$ | 66.9 | $ | 66.8 | |||||||||||||||||||||||
Summary of aggregate future debt maturities, excluding capital lease obligations | ' | |||||||||||||||||||||||||
At December 29, 2013, aggregate future debt maturities, excluding capital lease obligations, were as follows: | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
2014 | $ | 0.3 | ||||||||||||||||||||||||
2015 | 0.3 | |||||||||||||||||||||||||
2016 | 0.3 | |||||||||||||||||||||||||
2017 | 0.3 | |||||||||||||||||||||||||
2018 | 63.4 | |||||||||||||||||||||||||
Thereafter | 0.4 | |||||||||||||||||||||||||
$ | 65 | |||||||||||||||||||||||||
Summary of Fair Values of Derivative Instruments | ' | |||||||||||||||||||||||||
The following tables summarize the fair value of the Company’s interest rate swap agreements and the effect on the financial statements: | ||||||||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||||||||||
(In millions) | Balance Sheet Location | 12/29/13 | 12/30/12 | |||||||||||||||||||||||
Interest rate swap agreements | Deferred credits and other long-term liabilities | $ | — | $ | 1.3 | |||||||||||||||||||||
Effect of derivative instruments on statement of operations | ' | |||||||||||||||||||||||||
The Effect of Derivative Instruments on the Statement of Operations | ||||||||||||||||||||||||||
Amount of Gain (Loss) recognized into | Amount of Gain (Loss) | |||||||||||||||||||||||||
AOCI | Reclassified from AOCI to | |||||||||||||||||||||||||
Income | ||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Interest rate swap | $ | 0.2 | $ | — | $ | (0.8 | ) | Interest expense, net | $ | — | $ | — | $ | (0.1 | ) | |||||||||||
agreements, net of tax | ||||||||||||||||||||||||||
$ | 0.2 | $ | — | $ | (0.8 | ) | $ | — | $ | — | $ | (0.1 | ) | |||||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Leases [Abstract] | ' | |||||||
Future minimum payments under capital and non-cancelable operating leases | ' | |||||||
At December 29, 2013, future minimum payments under capital and non-cancelable operating leases were as follows: | ||||||||
(in millions) | Capital | Operating | ||||||
Leases | Leases | |||||||
2014 | $ | 0.3 | $ | 7 | ||||
2015 | 0.3 | 6.8 | ||||||
2016 | 0.2 | 6.5 | ||||||
2017 | 0.2 | 6.3 | ||||||
2018 | 0.2 | 5.7 | ||||||
Thereafter | 4.9 | 86.5 | ||||||
Future minimum lease payments | 6.1 | 118.8 | ||||||
Less amounts representing interest | 3.9 | — | ||||||
$ | 2.2 | $ | 118.8 | |||||
Deferred_Credits_and_Other_Lon1
Deferred Credits and Other Long-Term Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Deferred Credits and Other Long-Term Liabilities [Abstract] | ' | |||||||
Deferred Credits and Other Long-Term Liabilities | ' | |||||||
(in millions) | 2013 | 2012 | ||||||
Deferred franchise revenues | $ | 3.5 | $ | 2.4 | ||||
Deferred gains on unit conversions | 1 | 1.1 | ||||||
Deferred rentals | 7.4 | 7 | ||||||
Above-market rent obligations | 2.6 | 2.7 | ||||||
Deferred income taxes | 13.6 | 9.3 | ||||||
Other long-term liabilities | 2 | 3.7 | ||||||
$ | 30.1 | $ | 26.2 | |||||
Stock_Option_Plans_Tables
Stock Option Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 29, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Summary of Stock Option Plan Activity | ' | ||||||||||||
A Summary of Stock Option Plan Activity. The table below summarizes the activity within the Company’s stock option plans for the 52 week period ended December 29, 2013. | |||||||||||||
(shares in thousands) | Shares | Weighted | Weighted | Aggregate | |||||||||
Average | Average | Intrinsic | |||||||||||
Exercise Price | Remaining | Value | |||||||||||
Contractual | (millions) | ||||||||||||
Term | |||||||||||||
(years) | |||||||||||||
Stock options: | |||||||||||||
Outstanding at beginning of year | 808 | $ | 12.16 | ||||||||||
Granted options | 66 | 34.8 | |||||||||||
Exercised options | (290 | ) | 12.51 | ||||||||||
Canceled and expired options | (18 | ) | 12.75 | ||||||||||
Outstanding at end of year | 566 | $ | 14.58 | 3.5 | $ | 13.2 | |||||||
Exercisable at end of year | 399 | $ | 10.89 | 2.7 | $ | 10.8 | |||||||
Shares available for future grants under the plans at end of year | 1,201 | ||||||||||||
Summary of fair value of stock-based compensation | ' | ||||||||||||
The following weighted average assumptions were used for the grants: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Risk-free interest rate | 0.70% | 1.00% | 2.90% | ||||||||||
Expected dividend yield | —% | —% | —% | ||||||||||
Expected term (in years) | 4.5 | 4.5 | 6 | ||||||||||
Expected volatility | 53.00% | 55.30% | 56.80% | ||||||||||
Summary of non-vested stock option activity | ' | ||||||||||||
The following table summarizes the non-vested stock option activity for the 52 week period ended December 29, 2013: | |||||||||||||
(shares in thousands) | Shares | Weighted | |||||||||||
Average | |||||||||||||
Grant Date Fair | |||||||||||||
Value | |||||||||||||
Unvested stock options outstanding at beginning of period | 236 | $ | 7.15 | ||||||||||
Granted | 66 | 15.11 | |||||||||||
Vested | (114 | ) | 6.89 | ||||||||||
Expired | (15 | ) | 3.18 | ||||||||||
Unvested stock options outstanding at end of period | 173 | $ | 10.68 | ||||||||||
Summary of the restricted share awards activity | ' | ||||||||||||
The following table summarizes the restricted share awards activity for the 52 week period ended December 29, 2013: | |||||||||||||
(share awards in thousands) | Shares | Weighted | |||||||||||
Average | |||||||||||||
Grant | |||||||||||||
Date Fair | |||||||||||||
Value | |||||||||||||
Unvested restricted share awards: | |||||||||||||
Outstanding beginning of year | 320 | $ | 15.77 | ||||||||||
Granted | 122 | $ | 31.77 | ||||||||||
Vested | (161 | ) | $ | 14.43 | |||||||||
Cancelled | (6 | ) | $ | 24.84 | |||||||||
Outstanding end of year | 275 | $ | 23.44 | ||||||||||
Summary of restricted share unit activity | ' | ||||||||||||
The following table summarizes the restricted share unit activity for the 52 week period ended December 29, 2013. | |||||||||||||
(share awards in thousands) | Units | Weighted | |||||||||||
Average | |||||||||||||
Grant | |||||||||||||
Date Fair | |||||||||||||
Value | |||||||||||||
Unvested restricted stock units: | |||||||||||||
Outstanding beginning of year | 210 | $ | 12.44 | ||||||||||
Granted | 18 | 34.42 | |||||||||||
Vested | (32 | ) | 11.98 | ||||||||||
Outstanding end of year | 196 | $ | 14.53 | ||||||||||
Other_Expenses_Income_Net_Tabl
Other Expenses (Income), Net (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Expenses (Income), Net | ' | |||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Disposals of property and equipment | $ | 0.4 | $ | 0.3 | $ | 0.5 | ||||||
Net gain on sale of assets | (0.1 | ) | (0.9 | ) | (0.8 | ) | ||||||
Corporate support center relocation | — | — | 0.8 | |||||||||
Other | — | 0.1 | — | |||||||||
$ | 0.3 | $ | (0.5 | ) | $ | 0.5 | ||||||
Interest_Expense_Net_Tables
Interest Expense, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Banking and Thrift, Interest [Abstract] | ' | |||||||||||
Interest Expense, Net | ' | |||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Interest on debt | $ | 2.4 | $ | 2.8 | $ | 2.8 | ||||||
Amortization and write-offs of debt issuance costs | 0.8 | 0.4 | 0.4 | |||||||||
Other debt related charges | 0.6 | 0.5 | 0.6 | |||||||||
Interest income | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||
$ | 3.7 | $ | 3.6 | $ | 3.7 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Total income taxes | ' | |||||||||||
Total income taxes for fiscal years 2013, 2012, and 2011, were allocated as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Income taxes in the statements of operations, net | $ | 20.4 | $ | 17.3 | $ | 12.8 | ||||||
Income taxes charged (credited) to statements of shareholders’ equity (deficit): | ||||||||||||
Compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes | (3.4 | ) | (0.4 | ) | (0.1 | ) | ||||||
Other comprehensive income | 0.2 | — | (0.5 | ) | ||||||||
$ | 17.2 | $ | 16.9 | $ | 12.2 | |||||||
Total U.S. and foreign income before income taxes | ' | |||||||||||
Total U.S. and foreign income before income taxes for fiscal years 2013, 2012, and 2011, were as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
United States | $ | 49.5 | $ | 41.3 | $ | 31.4 | ||||||
Foreign | 5 | 6.4 | 5.6 | |||||||||
$ | 54.5 | $ | 47.7 | $ | 37 | |||||||
The components of income tax expense | ' | |||||||||||
The components of income tax expense were as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Current income tax expense: | ||||||||||||
Federal | $ | 12.8 | $ | 12.2 | $ | 9.2 | ||||||
Foreign | 1.4 | 1.3 | 1.1 | |||||||||
State | 1.7 | 1.6 | 1.2 | |||||||||
15.9 | 15.1 | 11.5 | ||||||||||
Deferred income tax expense: | ||||||||||||
Federal | 4.1 | 2 | 1.2 | |||||||||
State | 0.4 | 0.2 | 0.1 | |||||||||
4.5 | 2.2 | 1.3 | ||||||||||
$ | 20.4 | $ | 17.3 | $ | 12.8 | |||||||
Reconciliations of the Federal statutory income tax rate to the Company's effective tax rate | ' | |||||||||||
Reconciliations of the Federal statutory income tax rate to the Company’s effective tax rate are presented below: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of federal benefit | 1.9 | % | 1.5 | % | 0.1 | % | ||||||
Valuation allowance | 0.9 | % | 0.8 | % | 1.9 | % | ||||||
Provision to return adjustments | (0.3 | )% | (0.1 | )% | 0.2 | % | ||||||
Adjustments to estimated tax reserves | 0.1 | % | (1.2 | )% | 0.3 | % | ||||||
Other items, net | (0.2 | )% | 0.3 | % | (2.9 | )% | ||||||
Effective income tax rate | 37.4 | % | 36.3 | % | 34.6 | % | ||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities | ' | |||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: | ||||||||||||
(in millions) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Deferred franchise fee revenue | $ | 0.8 | $ | 1 | ||||||||
State net operating loss carry forwards | 6.3 | 5.9 | ||||||||||
Deferred rentals | 4 | 3.9 | ||||||||||
Deferred compensation | 3.8 | 3.8 | ||||||||||
Allowance for doubtful accounts | 0.1 | 0.4 | ||||||||||
Insurance accruals | — | 0.1 | ||||||||||
Other accruals | 0.4 | 0.4 | ||||||||||
Reorganization costs | 2.3 | 2.2 | ||||||||||
Total gross deferred tax assets | 17.7 | 17.7 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Franchise value and trademarks | (19.3 | ) | (18.4 | ) | ||||||||
Property, plant and equipment | (5.7 | ) | (2.4 | ) | ||||||||
Total gross deferred liabilities | (25.0 | ) | (20.8 | ) | ||||||||
Valuation allowance | (6.3 | ) | (5.9 | ) | ||||||||
Net deferred tax liability | $ | (13.6 | ) | $ | (9.0 | ) | ||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 29, 2013 is as follows: | ||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Balance, beginning of year | $ | 1.3 | $ | 2.2 | $ | 2.1 | ||||||
Additions related to current year | 0.1 | — | 0.2 | |||||||||
Reductions related to prior years | — | (0.8 | ) | — | ||||||||
Reductions due to statute expiration | — | (0.1 | ) | (0.1 | ) | |||||||
Balance, end of year | $ | 1.4 | $ | 1.3 | $ | 2.2 | ||||||
Components_of_Earnings_Per_Com
Components of Earnings Per Common Share Computation (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Summary of computation of earnings per share | ' | |||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Net income | $ | 34.1 | $ | 30.4 | $ | 24.2 | ||||||
Denominator for basic earnings per share — weighted average shares | 23.6 | 23.9 | 24.5 | |||||||||
Dilutive employee stock options | 0.5 | 0.6 | 0.5 | |||||||||
Denominator for diluted earnings per share | 24.1 | 24.5 | 25 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 29, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Summary of segment information | ' | |||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||
Revenues | ||||||||||||
Franchise operations | $ | 127.3 | $ | 114.8 | $ | 99.2 | ||||||
Company-operated restaurants | 78.7 | 64 | 54.6 | |||||||||
$ | 206 | $ | 178.8 | $ | 153.8 | |||||||
Operating profit | ||||||||||||
Franchise operations | $ | 54.7 | $ | 47.8 | $ | 37.4 | ||||||
Company-operated restaurants | 10.5 | 7.6 | 8 | |||||||||
65.2 | 55.4 | 45.4 | ||||||||||
Less unallocated expenses | ||||||||||||
Depreciation and amortization | 6.7 | 4.6 | 4.2 | |||||||||
Other expenses (income), net | 0.3 | (0.5 | ) | 0.5 | ||||||||
Operating profit | 58.2 | 51.3 | 40.7 | |||||||||
Interest expense, net | 3.7 | 3.6 | 3.7 | |||||||||
Income before income taxes | $ | 54.5 | $ | 47.7 | $ | 37 | ||||||
Capital expenditures | ||||||||||||
Franchise operations | $ | 18.8 | $ | 18.1 | $ | 4.1 | ||||||
Company-operated restaurants | 14.5 | 9.2 | 3.5 | |||||||||
$ | 33.3 | $ | 27.3 | $ | 7.6 | |||||||
Goodwill — year end | ||||||||||||
Franchise operations | $ | 8.9 | $ | 8.9 | $ | 8.9 | ||||||
Company-operated restaurants | 2.2 | 2.2 | 2.2 | |||||||||
$ | 11.1 | $ | 11.1 | $ | 11.1 | |||||||
Total assets — year end | ||||||||||||
Franchise operations | $ | 154.8 | $ | 140 | $ | 109.8 | ||||||
Company-operated restaurants | 45.7 | 32.4 | 25.8 | |||||||||
$ | 200.5 | $ | 172.4 | $ | 135.6 | |||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Summary of quarterly financial data | ' | |||||||||||||||
(in millions, except per share data) | 2013 | |||||||||||||||
Results of Operations | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Total revenues | $ | 60.4 | $ | 47.9 | $ | 49.3 | $ | 48.4 | ||||||||
Operating profit | 16.2 | 14.5 | 15.4 | 12.1 | ||||||||||||
Net income | 9.6 | 8.5 | 9 | 7 | ||||||||||||
Basic earnings per common share | 0.41 | 0.36 | 0.38 | 0.3 | ||||||||||||
Diluted earnings per common share | 0.4 | 0.35 | 0.37 | 0.29 | ||||||||||||
(in millions, except per share data) | 2012 | |||||||||||||||
Results of Operations | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Total revenues | $ | 52.8 | $ | 39.6 | $ | 38.9 | $ | 47.5 | ||||||||
Operating profit | 14.2 | 11.4 | 11.1 | 14.6 | ||||||||||||
Net income | 8.3 | 6.6 | 6.9 | 8.6 | ||||||||||||
Basic earnings per common share | 0.34 | 0.28 | 0.29 | 0.36 | ||||||||||||
Diluted earnings per common share | 0.34 | 0.27 | 0.29 | 0.35 | ||||||||||||
(a) | The Company’s first quarters for 2013 and 2012 contained sixteen weeks. The fourth quarter 2012 included 13 weeks. The remaining quarters of 2013 and 2012 were twelve weeks. The 53rd week in 2012 increased sales by company-operated restaurants by approximately $1.2 million and increased franchise revenues by approximately $1.7 million. The net impact of the 53rd week earnings per share was approximately $0.01 per diluted share. | |||||||||||||||
(b) | The Company opened four company-operated restaurants during the fourth quarter 2013 compared to five during the same period last year. Total sales of the four company-operated restaurants were $0.9 million for the fourth quarter 2013. | |||||||||||||||
(c) | The Company recorded $1.8 million in franchise revenues related to two significant franchisee transfers during the fourth quarter 2012. | |||||||||||||||
(d) | The Company recognized a $0.8 million in net gains on sale assets during the fourth quarter 2012 associated with the sale of real estate to a franchisee and the recognition of deferred gains related to seven properties formerly leased to a franchisee. |
Description_of_Business_Detail
Description of Business (Details) | Dec. 29, 2013 |
Country | |
Territory | |
State | |
Description of Business (Textual) [Abstract] | ' |
Number of states, franchises quick-service restaurants | 47 |
Number of territories, franchises quick-service restaurants | 3 |
Number of countries, franchises quick-service restaurants | 28 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Supplemental Cash Flow Information | ' | ' | ' |
Interest paid | $3.10 | $2.90 | $2.40 |
Corporate office lease tenant improvement allowances and incentives | 0 | 0 | -3 |
Property acquired under capital lease obligation | 0 | 1 | 0 |
Income taxes paid, net | $16.20 | $12.50 | $10.60 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Changes in the allowance for doubtful accounts | ' | ' | ' |
Balance, beginning of year | $0.20 | $0.60 | $1.20 |
Provisions for credit (recoveries) losses | 0 | -0.1 | -0.3 |
Write-offs | -0.1 | -0.3 | -0.3 |
Balance, end of year | $0.10 | $0.20 | $0.60 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | |
Accounting Policies [Line Items] | ' | ' | ' |
Accounts receivable, net current | $8,800,000 | $7,300,000 | ' |
Notes receivable | 700,000 | ' | ' |
Notes receivable, current | 100,000 | ' | ' |
Allowance for notes receivable | 100,000 | 900,000 | ' |
Inventories | 500,000 | ' | ' |
Depreciation expense | 6,200,000 | 4,000,000 | 3,700,000 |
Interest costs capitalized | 200,000 | 0 | 0 |
Restaurant potential impairment evaluation period of operating losses | '2 years | ' | ' |
Impairment of goodwill or trademarks | 0 | 0 | 0 |
Royalty fees as a percentage of net restaurant sales | 5.00% | ' | ' |
Cash consideration from vendors | 1,100,000 | 600,000 | 600,000 |
Proceeds from sale of company store | 0 | 0 | 0 |
Deferred gain on sale of property | 100,000 | 600,000 | 300,000 |
Research and development costs | 2,200,000 | 1,800,000 | 2,300,000 |
Net foreign currency loss | ' | ' | 100,000 |
Stock-based compensation expense | 5,400,000 | 4,900,000 | 2,900,000 |
Stock-based compensation net of tax | 3,400,000 | 3,100,000 | 1,900,000 |
Minimum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Finite-lived intangible asset amortization period | '10 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Finite-lived intangible asset amortization period | '20 years | ' | ' |
Buildings [Member] | Minimum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '7 years | ' | ' |
Buildings [Member] | Maximum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '35 years | ' | ' |
Equipment [Member] | Minimum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '5 years | ' | ' |
Equipment [Member] | Maximum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '15 years | ' | ' |
Leasehold improvements and capital lease assets [Member] | Minimum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '3 years | ' | ' |
Leasehold improvements and capital lease assets [Member] | Maximum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '20 years | ' | ' |
General and Administrative Expense [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Advertising expense | 2,900,000 | 2,300,000 | 2,400,000 |
Revolving Credit Facility [Member] | 2010 Credit Facility [Member] | Interest Expense [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Write-off of deferred debt issuance cost | 400,000 | ' | ' |
Interest rate swap agreements [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Loss included in AOCI to be reclassified during next 12 months | $700,000 | ' | ' |
Other_Current_Assets_Details
Other Current Assets (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Summary of other current assets | ' | ' |
Deferred tax assets | $0 | $0.30 |
Prepaid income taxes | 5.2 | 0 |
Prepaid expenses and other current assets | 4.6 | 3.9 |
Other current assets | $9.80 | $4.20 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Summary of property and equipment, net | ' | ' |
Property and equipment, gross | $110.20 | $79.30 |
Less accumulated depreciation and amortization | -32.6 | -28 |
Property and equipment, net | 77.6 | 51.3 |
Land [Member] | ' | ' |
Summary of property and equipment, net | ' | ' |
Property and equipment, gross | 16 | 12.1 |
Buildings and improvements [Member] | ' | ' |
Summary of property and equipment, net | ' | ' |
Property and equipment, gross | 60.8 | 43.2 |
Equipment [Member] | ' | ' |
Summary of property and equipment, net | ' | ' |
Property and equipment, gross | 33.3 | 23.3 |
Properties held for sale and other [Member] | ' | ' |
Summary of property and equipment, net | ' | ' |
Property and equipment, gross | $0.10 | $0.70 |
Property_and_Equipment_Net_Det1
Property and Equipment Net (Details 1) (USD $) | Nov. 13, 2012 |
In Millions, unless otherwise specified | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment [Abstract] | ' |
Land | $7.50 |
Building and improvements | 6.5 |
Properties held for sale and other | 0.6 |
Total cost | $14.60 |
Property_and_Equipment_Net_Det2
Property and Equipment Net (Details Textual) (USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Nov. 13, 2012 | Dec. 29, 2013 | Dec. 30, 2012 |
restaurant | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Acquisition purchase price | $13.80 | ' | ' |
Number of restaurants acquired | 27 | ' | ' |
Number of acquired restaurants converted to Popeyes Louisiana Kitchen image | 26 | ' | ' |
Cost of conversion into Popeyes Louisiana Kitchen image | 16.1 | ' | ' |
Allocation cost | 14.6 | ' | ' |
Property and equipment, net | ' | 77.6 | 51.3 |
Accumulated depreciation | ' | 32.6 | 28 |
Assets Held under Capital Leases [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, net | ' | 1.8 | 1.8 |
Accumulated depreciation | ' | $0.20 | $0.10 |
Trademarks_and_Other_Intangibl2
Trademarks and Other Intangible Assets, Net (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Non-amortizable intangible assets: | ' | ' |
Non-amortizable intangible assets | $50.60 | $50.60 |
Amortizable intangible assets: | ' | ' |
Accumulated amortization | -4.3 | -3.8 |
Amortizable intangible assets | 2.8 | 3.3 |
Trademarks and other intangible assets | 53.4 | 53.9 |
Trademarks [Member] | ' | ' |
Non-amortizable intangible assets: | ' | ' |
Non-amortizable intangible assets | 50 | 50 |
Other Intangible Assets [Member] | ' | ' |
Non-amortizable intangible assets: | ' | ' |
Non-amortizable intangible assets | 0.6 | 0.6 |
Franchise Rights [Member] | ' | ' |
Amortizable intangible assets: | ' | ' |
Re-acquired franchise rights | $7.10 | $7.10 |
Trademarks_and_Other_Intangibl3
Trademarks and Other Intangible Assets, Net (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Nov. 07, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Trademarks and Other Intangible Assets, Net (Textual) [Abstract] | ' | ' | ' | ' |
Amortization expense | ' | $0.50 | $0.60 | $0.50 |
2014 | ' | 0.5 | ' | ' |
2015 | ' | 0.5 | ' | ' |
2016 | ' | 0.5 | ' | ' |
2017 | ' | 0.5 | ' | ' |
2018 | ' | 0.4 | ' | ' |
Weighted average amortization period | ' | '6 years | ' | ' |
One time payment | 7 | 0 | 8 | 0 |
Associated legal fees | $1 | ' | ' | ' |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Summary of other current liabilities | ' | ' |
Accrued wages, bonuses and severances | $6 | $2.60 |
Other | 2.1 | 3.3 |
Other Current Liabilities | $8.10 | $5.90 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Financial Assets | ' | ' |
Cash equivalents | $10.60 | $16.30 |
Restricted cash (advertising cooperative assets) | 4.3 | 4.3 |
Total assets at fair value | 14.9 | 20.6 |
Financial Liabilities | ' | ' |
Interest rate swap agreement (Note 9) | ' | 1.3 |
Long term debt and other borrowings | 67.2 | 72.8 |
Total liabilities at fair value | 67.2 | 74.1 |
Quoted Prices in Active Markets for Identical Asset or Liability (Level 1) [Member] | ' | ' |
Financial Assets | ' | ' |
Cash equivalents | 10.6 | 16.3 |
Restricted cash (advertising cooperative assets) | 4.3 | 4.3 |
Total assets at fair value | 14.9 | 20.6 |
Financial Liabilities | ' | ' |
Interest rate swap agreement (Note 9) | ' | 0 |
Total liabilities at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Financial Assets | ' | ' |
Cash equivalents | 0 | 0 |
Restricted cash (advertising cooperative assets) | 0 | 0 |
Total assets at fair value | 0 | 0 |
Financial Liabilities | ' | ' |
Interest rate swap agreement (Note 9) | ' | 1.3 |
Long term debt and other borrowings | 72.2 | 74.4 |
Total liabilities at fair value | 72.2 | 75.7 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Financial Assets | ' | ' |
Cash equivalents | 0 | 0 |
Restricted cash (advertising cooperative assets) | 0 | 0 |
Total assets at fair value | 0 | 0 |
Financial Liabilities | ' | ' |
Interest rate swap agreement (Note 9) | ' | 0 |
Total liabilities at fair value | $0 | $0 |
LongTerm_Debt_and_Other_Borrow2
Long-Term Debt and Other Borrowings (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Term Loan | $0 | $31.30 |
Capital lease obligations | 2.2 | 2.3 |
Other notes | 2 | 2.2 |
Total long-term debt | 67.2 | 72.8 |
Less current portion | -0.3 | -6 |
Long-term debt | 66.9 | 66.8 |
Revolving Credit Facility [Member] | 2013 Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Revolving credit facility | 63 | 0 |
Revolving Credit Facility [Member] | 2010 Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Revolving credit facility | $0 | $37 |
LongTerm_Debt_and_Other_Borrow3
Long-Term Debt and Other Borrowings (Details 1) (USD $) | Dec. 29, 2013 |
In Millions, unless otherwise specified | |
Summary of aggregate future debt maturities, excluding capital lease obligations | ' |
2014 | $0.30 |
2015 | 0.3 |
2016 | 0.3 |
2017 | 0.3 |
2018 | 63.4 |
Thereafter | 0.4 |
Total long-term debt | $65 |
LongTerm_Debt_and_Other_Borrow4
Long-Term Debt and Other Borrowings (Details 2) (Interest rate swap agreements [Member], Deferred credits and other long-term liabilities [Member], USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Interest rate swap agreements [Member] | Deferred credits and other long-term liabilities [Member] | ' | ' |
Summary of Fair Values of Derivative Instruments | ' | ' |
Interest rate swap agreements | $0 | $1.30 |
LongTerm_Debt_and_Other_Borrow5
Long-Term Debt and Other Borrowings (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Effect of derivative instruments on statement of operations | ' | ' | ' |
Amount of Gain (Loss) Recognized into AOCI | $0.20 | $0 | ($0.80) |
Amount of Gain (Loss) Reclassified from AOCI to Income | 0 | 0 | -0.1 |
Interest expense [Member] | ' | ' | ' |
Effect of derivative instruments on statement of operations | ' | ' | ' |
Amount of Gain (Loss) Reclassified from AOCI to Income | 0 | 0 | -0.1 |
Interest rate swap agreements [Member] | ' | ' | ' |
Effect of derivative instruments on statement of operations | ' | ' | ' |
Amount of Gain (Loss) Recognized into AOCI | $0.20 | $0 | ($0.80) |
LongTerm_Debt_and_Other_Borrow6
Long-Term Debt and Other Borrowings (Details Textual) (USD $) | Dec. 29, 2013 | Feb. 28, 2011 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | Feb. 22, 2011 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 18, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 |
Interest Rate Swap Agreements [Member] | Interest Rate Swap Agreements [Member] | Interest Rate Swap Agreements [Member] | Interest Rate Swap Agreements [Member] | Interest Rate Swap Agreements [Member] | 2013 Credit Facility [Member] | 2013 Credit Facility [Member] | 2013 Credit Facility [Member] | 2013 Credit Facility [Member] | 2013 Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | ||
Maximum [Member] | Minimum [Member] | LIBOR [Member] | LIBOR [Member] | 2013 Credit Facility [Member] | 2013 Credit Facility [Member] | 2010 Credit Facility [Member] | 2013 Credit Facility [Member] | ||||||||||
Maximum [Member] | Minimum [Member] | Interest Expense [Member] | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $125,000,000 | ' | ' | ' |
Proceeds from lines of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,000,000 | ' | ' | ' |
Weighted average interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 3.70% | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 2.50% | ' | ' | ' | ' | ' | ' |
Commitment fee of unused portions of the revolving credit facility | ' | ' | ' | ' | ' | ' | ' | 0.40% | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing capacity available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | 20,000,000 |
Outstanding letters of credit | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,100,000 | ' | ' |
Expense associated with extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' |
Deferred finance costs | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate exposure | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, fixed interest rate | ' | ' | ' | ' | ' | 4.79% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, maturity date | ' | 31-Mar-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to amendment of debt facility | ' | ' | $500,000 | $600,000 | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_Details
Leases (Details) (USD $) | Dec. 29, 2013 |
In Millions, unless otherwise specified | |
Capital Leases | ' |
2014 | $0.30 |
2015 | 0.3 |
2016 | 0.2 |
2017 | 0.2 |
2018 | 0.2 |
Thereafter | 4.9 |
Future minimum lease payments | 6.1 |
Less amounts representing interest | 3.9 |
Capital Leases Total | 2.2 |
Operating Leases | ' |
2014 | 7 |
2015 | 6.8 |
2016 | 6.5 |
2017 | 6.3 |
2018 | 5.7 |
Thereafter | 86.5 |
Future minimum lease payments/Total Operating Leases | $118.80 |
Leases_Details_Textual
Leases (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Leases (Textual) [Abstract] | ' | ' | ' |
Rental expense | $6 | $5.90 | $5.90 |
Contingent rentals | 0 | 0.2 | 0.2 |
Implicit rate of interest on capital leases, minimum | ' | 8.10% | ' |
Implicit rate of interest on capital leases maximum | ' | 16.00% | ' |
Capital lease assets gross book value | ' | 30 | ' |
Aggregate net book value of leased properties | ' | 28.6 | ' |
Rental income from leases and subleases | 5.4 | 4.3 | 4.1 |
2014 | 2.8 | ' | ' |
2015 | 2.6 | ' | ' |
2016 | 2.3 | ' | ' |
2017 | 2 | ' | ' |
2018 | 1.7 | ' | ' |
Thereafter | $4.70 | ' | ' |
Deferred_Credits_and_Other_Lon2
Deferred Credits and Other Long-Term Liabilities (Details) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Deferred Credits and Other Long-Term Liabilities | ' | ' |
Deferred franchise revenues | $3.50 | $2.40 |
Deferred gains on unit conversions | 1 | 1.1 |
Deferred rentals | 7.4 | 7 |
Above-market rent obligations | 2.6 | 2.7 |
Deferred income taxes | 13.6 | 9.3 |
Other long-term liabilities | 2 | 3.7 |
Deferred Credits and Other Long-Term Liabilities | $30.10 | $26.20 |
Common_Stock_Details
Common Stock (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Feb. 13, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | |
quarter | ||||
Common Stock (Textual) [Abstract] | ' | ' | ' | ' |
Amount of share repurchase program | $50,000,000 | ' | ' | ' |
No. of common stock repurchased and retired | ' | 504,295 | 741,228 | 1,465,436 |
Repurchases and retirement of shares | ' | 19,900,000 | 15,200,000 | 22,300,000 |
Remaining value of shares repurchased | ' | 31,500,000 | ' | ' |
Number of immediately preceding fiscal quarters used in calculation of Total Leverage Ratio | ' | 4 | ' | ' |
Dividends | ' | $0 | $0 | $0 |
Maximum [Member] | ' | ' | ' | ' |
Common Stock (Textual) [Abstract] | ' | ' | ' | ' |
Leverage Ratio | ' | 1 | ' | ' |
Maximum [Member] | Revolving Credit Facility [Member] | ' | ' | ' | ' |
Common Stock (Textual) [Abstract] | ' | ' | ' | ' |
Leverage Ratio | ' | 0.97 | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Common Stock (Textual) [Abstract] | ' | ' | ' | ' |
Leverage Ratio | ' | 3 | ' | ' |
Minimum [Member] | Revolving Credit Facility [Member] | ' | ' | ' | ' |
Common Stock (Textual) [Abstract] | ' | ' | ' | ' |
Leverage Ratio | ' | 1 | ' | ' |
Stock_Option_Plans_Details
Stock Option Plans (Details) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 29, 2013 |
Summary of Stock Option Plan Activity | ' |
Stock options outstanding, beginning balance, shares | 808 |
Stock options granted, shares | 66 |
Stock options exercised, shares | -290 |
Stock options, canceled and expired, shares | -18 |
Stock options outstanding, ending balance, shares | 566 |
Options, Weighted Average Exercise Price | ' |
Stock options outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $12.16 |
Stock options granted, Weighted Average Exercise Price (in dollars per share) | $34.80 |
Stock options exercised, Weighted Average Exercise Price (in dollars per share) | $12.51 |
Stock options cancelled and expired, Weighted Average Exercise Price (in dollars per share) | $12.75 |
Stock options outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $14.58 |
Stock options exercisable, shares | 399 |
Shares available for future grants under the plans at end of year | 1,201 |
Stock options exercisable, Weighted Average Exercise Price (in dollars per share) | $10.89 |
Stock options outstanding, Weighted Average Remaining Contractual Term | '3 years 6 months 4 days |
Stock options exercisable, Weighted Average Remaining Contractual Term | '2 years 8 months 5 days |
Stock options outstanding, Aggregate Intrinsic Value | $13.20 |
Stock options exercisable, Aggregate Intrinsic Value | $10.80 |
Stock_Option_Plans_Details_1
Stock Option Plans (Details 1) | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | |
Summary of fair value of stock-based compensation | ' | ' | ' |
Risk-free interest rate | 0.70% | 1.00% | 2.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (in years) | '4 years 6 months | '4 years 6 months | '6 years |
Expected volatility | 53.00% | 55.30% | 56.80% |
Stock_Option_Plans_Details_2
Stock Option Plans (Details 2) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 |
Summarizes the non-vested stock option activity | ' |
Stock options outstanding, beginning balance, shares | 808 |
Unvested stock options outstanding, Granted, shares | 66 |
Stock options, canceled, shares | -18 |
Stock options outstanding, ending balance, shares | 566 |
Non vested options [Member] | ' |
Summarizes the non-vested stock option activity | ' |
Stock options outstanding, beginning balance, shares | 236 |
Unvested stock options outstanding, Granted, shares | 66 |
Unvested stock options outstanding, Vested, shares | -114 |
Stock options, canceled, shares | -15 |
Stock options outstanding, ending balance, shares | 173 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' |
Unvested stock options, outstanding ,Weighted Average Grant Date Fair Value at beginning of period (in dollars per share) | 7.15 |
Unvested stock options, Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 15.11 |
Unvested stock options, Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 6.89 |
Unvested stock options, Cancelled, Weighted Average Grant Date Fair Value (in dollars per share) | 3.18 |
Unvested stock options, outstanding, Weighted Average Grant Date Fair Value at ending of period (in dollars per share) | 10.68 |
Stock_Option_Plans_Details_3
Stock Option Plans (Details 3) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | |
Restricted Stock [Member] | ' | ' | ' |
Summary of the restricted share awards activity | ' | ' | ' |
Outstanding beginning of year | 320,000 | ' | ' |
Granted | 122,000 | ' | ' |
Vested | -161,000 | ' | ' |
Cancelled | -6,000 | ' | ' |
Outstanding end of year | 275,000 | 320,000 | ' |
Restricted share awards, Weighted Average Grant Date Fair Value | ' | ' | ' |
Outstanding beginning of year | $15.77 | ' | ' |
Granted | $31.77 | $16.28 | $15.32 |
Vested | $14.43 | ' | ' |
Cancelled | $24.84 | ' | ' |
Outstanding end of year | $23.44 | $15.77 | ' |
Stock_Option_Plans_Details_4
Stock Option Plans (Details 4) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Summary of restricted share unit activity | ' | ' | ' |
Outstanding beginning of year | 210,000 | ' | ' |
Granted | 18,000 | ' | ' |
Vested | -32,000 | 0 | 0 |
Outstanding end of year | 196,000 | 210,000 | ' |
Restricted share units, Weighted Average Grant Date Fair Value | ' | ' | ' |
Outstanding beginning of year | $12.44 | ' | ' |
Granted | $34.42 | $21.02 | $15.90 |
Vested | $11.98 | ' | ' |
Outstanding end of year | $14.53 | $12.44 | ' |
Stock_Option_Plans_Details_Tex
Stock Option Plans (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | Dec. 29, 2013 | Feb. 28, 2002 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | Dec. 29, 2013 | 31-May-06 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Apr. 05, 2014 |
2002 Stock incentive plan [Member] | 2002 Stock incentive plan [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Less Than 95% Three-Year Cumulative EBITDA [Member] | Less Than 95% Annual EBITDA [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Three-Year Cumulative EBITDA Performance Goal [Member] | Three-Year Cumulative EBITDA Performance Goal [Member] | Three-Year Cumulative EBITDA Performance Goal [Member] | Annual EBITDA Performance Goal [Member] | Annual EBITDA Performance Goal [Member] | Annual EBITDA Performance Goal [Member] | Forecast [Member] | ||||
2006 stock incentive plan [Member] | 2006 stock incentive plan [Member] | Restricted Stock [Member] | Restricted Stock [Member] | 95% Three-Year Cumulative EBITDA [Member] | 95% Annual EBITDA [Member] | 110% Three-Year Cumulative EBITDA [Member] | 110% Annual EBITDA [Member] | Restricted Stock [Member] | Minimum [Member] | Maximum [Member] | Restricted Stock [Member] | Minimum [Member] | Maximum [Member] | Restricted Stock [Member] | |||||||||||||||
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized issuance of common stock | ' | ' | ' | ' | 4,500,000 | ' | ' | ' | ' | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of common stock by employees and directors | 1,201,000 | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional options granted and outstanding exercisable related to common stock price | ' | ' | ' | ' | ' | ' | ' | ' | 565,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award plan expiration period | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation with stock option grants | ' | ' | ' | ' | ' | $0.90 | $0.90 | $0.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs related to unvested stock options | 0.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period of recognition | ' | ' | ' | ' | ' | '1 year 4 months 24 days | ' | ' | ' | ' | '1 year 8 months 12 days | ' | ' | '4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value of stock options granted (in dollars per share) | ' | ' | ' | ' | ' | $15.11 | $7.74 | $8.51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense associated with restricted share awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.9 | 3.4 | 1.6 | 0.6 | 0.6 | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 161,000 | ' | ' | 32,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31.77 | $16.28 | $15.32 | $34.42 | $21.02 | $15.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of cumulative EBITDA goals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Shareholder Return measurement period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance requirement percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | 110.00% | ' | 95.00% | 110.00% | ' |
Percent of targeted shares earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 50.00% | 50.00% | 200.00% | 130.00% | ' | ' | ' | ' | ' | ' | ' |
Performance goal percentage, award paid at target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' | ' |
Total Shareholder Return performance bottom quartile, percent adjustment decrease in earned shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total shareholder return performance upper quartile, percent adjustment increase in earned shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding restricted share awards earned subject to performance goals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 275,000 | 320,000 | ' | 196,000 | 210,000 | ' | ' | ' | ' | ' | ' | ' | 161,000 | ' | ' | 86,000 | ' | ' | ' |
Number of shares scheduled to vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,000 |
Unrecognized compensation costs related to other than stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.3 | ' | ' | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value at grant date of restricted stock awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.3 | 2.5 | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted share units conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Option Plans (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value at grant date of stock options | 0.8 | 1.4 | 0.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of stock options exercised | $7.60 | $1.10 | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
401_k_Savings_Plan_Details
401 (k) Savings Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
401 (k) Savings Plan (Textual) [Abstract] | ' | ' | ' |
Maximum contribution of non-highly compensated employees to qualified retirement plan | 75.00% | ' | ' |
Maximum contribution of highly compensated employees to qualified retirement plan | 5.00% | ' | ' |
Expense for contributions to the Plan | $0.50 | $0.40 | $0.30 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | |
executive | |||
Loss Contingencies [Line Items] | ' | ' | ' |
Number of executives in with employment agreements | 6 | ' | ' |
Employment Agreement, Successive Renewal Term | '1 year | ' | ' |
Commitments and Contingencies (Textual) [Abstract] | ' | ' | ' |
Percentage franchise revenue from international operation | 10.90% | 11.20% | 12.20% |
Percent of international revenue out of total revenue | 6.40% | 6.90% | 7.50% |
Company's accounts receivables under franchise operation | $1,300,000 | ' | ' |
Percentage of company's domestic franchise revenue out of royalty | 7.80% | 8.30% | 8.30% |
Minimum [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Salary paid to senior executive under agreement | 312,000 | ' | ' |
Maximum [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Salary paid to senior executive under agreement | 700,000 | ' | ' |
Letter of Credit [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Insurance reserves | 100,000 | ' | ' |
Cash deposits [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Insurance reserves | 900,000 | ' | ' |
Formula and Supply Agreements [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Contractual obligation | 3,100,000 | ' | ' |
Contractual obligation expense | 3,100,000 | 3,100,000 | 3,100,000 |
Business Process Services [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Contractual obligation expense | 1,700,000 | 1,500,000 | 1,400,000 |
Services agreement expiration date | 30-Apr-15 | ' | ' |
Approximate future payment to service, year 1 | 1,800,000 | ' | ' |
Approximate future payment to service, year 2 | 600,000 | ' | ' |
Information Technology Outsourcing [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Contractual obligation expense | 2,600,000 | 2,400,000 | 2,100,000 |
Contractual obligation, due in 12 months | 1,600,000 | ' | ' |
Contractual obligation, due in year 2 | 1,700,000 | ' | ' |
Contractual obligation, due in year 3 | $400,000 | ' | ' |
Senior Executive [Member] | Option 1 [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Contingent termination compensation, annual base salary multiplier | 1 | ' | ' |
Contingent termination compensation, bonus payable multiplier | 1 | ' | ' |
Senior Executive [Member] | Option 2 [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Contingent termination compensation, annual base salary multiplier | 1.5 | ' | ' |
Contingent termination compensation, bonus payable multiplier | 1.5 | ' | ' |
Senior Executive [Member] | Option 3 [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Contingent termination compensation, annual base salary multiplier | 2 | ' | ' |
Contingent termination compensation, bonus payable multiplier | 2 | ' | ' |
Royalty Revenues [Member] | UNITED STATES | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Number of Significant Franchisees | 1 | 1 | 1 |
Other_Expenses_Income_Net_Deta
Other Expenses (Income), Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Other Expenses (Income), Net | ' | ' | ' |
Disposals of property and equipment | $0.40 | $0.30 | $0.50 |
Net gain on sale of assets | -0.1 | -0.9 | -0.8 |
Corporate support center relocation | 0 | 0 | 0.8 |
Other | 0 | 0.1 | 0 |
Other expenses (income), net | $0.30 | ($0.50) | $0.50 |
Other_Expenses_Income_Net_Deta1
Other Expenses (Income), Net (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Franchisor Disclosure [Line Items] | ' | ' | ' |
Net gain on sale of properties to franchisee | $0.10 | $0.90 | $0.80 |
Other Expenses (Income), Net (Textual) [Abstract] | ' | ' | ' |
Corporate support center relocation | 0 | 0 | 0.8 |
Franchised Units [Member] | ' | ' | ' |
Franchisor Disclosure [Line Items] | ' | ' | ' |
Net gain on sale of properties to franchisee | ' | 0.3 | 0.5 |
Deferred gain on sale of property | ' | 0.5 | ' |
Number of properties sold to franchise | ' | 7 | 2 |
Value of properties sold to franchisee | ' | ' | $0.70 |
Interest_Expense_Net_Details
Interest Expense, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Interest Expense, Net | ' | ' | ' |
Interest on debt | $2.40 | $2.80 | $2.80 |
Amortization and write-offs of debt issuance costs | 0.8 | 0.4 | 0.4 |
Other debt related charges | 0.6 | 0.5 | 0.6 |
Interest income | -0.1 | -0.1 | -0.1 |
Interest expense, net | $3.70 | $3.60 | $3.70 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Total income taxes | ' | ' | ' |
Income taxes in the statements of operations, net | $20.40 | $17.30 | $12.80 |
Income taxes charged (credited) to statements of shareholders’ equity (deficit): | ' | ' | ' |
Compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes | -3.4 | -0.4 | -0.1 |
Other comprehensive income | 0.2 | 0 | -0.5 |
Total income taxes, Net | $17.20 | $16.90 | $12.20 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Total U.S. and foreign income before income taxes | ' | ' | ' |
United States | $49.50 | $41.30 | $31.40 |
Foreign | 5 | 6.4 | 5.6 |
Income before income taxes | $54.50 | $47.70 | $37 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Current income tax expense: | ' | ' | ' |
Federal | $12.80 | $12.20 | $9.20 |
Foreign | 1.4 | 1.3 | 1.1 |
State | 1.7 | 1.6 | 1.2 |
Current income tax expense, Total | 15.9 | 15.1 | 11.5 |
Deferred income tax expense: | ' | ' | ' |
Federal | 4.1 | 2 | 1.2 |
State | 0.4 | 0.2 | 0.1 |
Deferred income tax expense, Total | 4.5 | 2.2 | 1.3 |
Income tax expense (benefit), Total | $20.40 | $17.30 | $12.80 |
Income_Taxes_Details_3
Income Taxes (Details 3) | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | |
Reconciliations of the Federal statutory income tax rate to the Company's effective tax rate | ' | ' | ' |
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 1.90% | 1.50% | 0.10% |
Valuation allowance | 0.90% | 0.80% | 1.90% |
Provision to return adjustments | -0.30% | -0.10% | 0.20% |
Adjustments to estimated tax reserves | 0.10% | -1.20% | 0.30% |
Other items, net | -0.20% | 0.30% | -2.90% |
Effective income tax rate | 37.40% | 36.30% | 34.60% |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | Dec. 29, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Deferred franchise fee revenue | $0.80 | $1 |
State net operating loss carry forwards | 6.3 | 5.9 |
Deferred rentals | 4 | 3.9 |
Deferred compensation | 3.8 | 3.8 |
Allowance for doubtful accounts | 0.1 | 0.4 |
Insurance accruals | 0 | 0.1 |
Other accruals | 0.4 | 0.4 |
Reorganization costs | 2.3 | 2.2 |
Total gross deferred tax assets | 17.7 | 17.7 |
Deferred tax liabilities: | ' | ' |
Franchise value and trademarks | -19.3 | -18.4 |
Property, plant and equipment | -5.7 | -2.4 |
Total gross deferred liabilities | -25 | -20.8 |
Valuation allowance | -6.3 | -5.9 |
Net deferred tax liability | ($13.60) | ($9) |
Income_Taxes_Details_5
Income Taxes (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Reconciliation of beginning and ending amount of unrecognized tax benefits | ' | ' | ' |
Balance, beginning of year | $1.30 | $2.20 | $2.10 |
Additions related to current year | 0.1 | 0 | 0.2 |
Reductions related to prior years | 0 | -0.8 | 0 |
Reductions due to statute expiration | 0 | -0.1 | -0.1 |
Balance, end of year | $1.40 | $1.30 | $2.20 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 | Dec. 26, 2010 |
Income Taxes (Additional Textual) [Abstract] | ' | ' | ' | ' |
Other items, net includes a tax benefit | ' | ' | $0.80 | ' |
Work opportunity tax credits related to prior years | ' | ' | 2.20% | ' |
Valuation allowance | 6.3 | 5.9 | ' | ' |
Unrecognized tax benefits | 1.4 | 1.3 | 2.2 | 2.1 |
Accrued interest and penalties related to uncertain tax positions | 0.1 | 0.1 | ' | ' |
Recognized tax benefits that would impact effective tax rate | 0.2 | ' | ' | ' |
U.S. federal tax [Member] | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' |
Tax years examination | '2010 through 2012 | ' | ' | ' |
State tax [Member] | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' |
Operating Loss Carryforwards | $122 | ' | ' | ' |
Tax years examination | '2009 through 2012 | ' | ' | ' |
Maximum [Member] | U.S. federal tax [Member] | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' |
Tax years examination | '2013 | ' | ' | ' |
Minimum [Member] | U.S. federal tax [Member] | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' |
Tax years examination | '2010 | ' | ' | ' |
Components_of_Earnings_Per_Sha1
Components of Earnings Per Share Computation (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 29, 2013 | Oct. 06, 2013 | Jul. 14, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 08, 2012 | Apr. 21, 2013 | Apr. 15, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Summary of computation of diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $7 | $9 | $8.50 | $8.60 | $6.90 | $6.60 | $9.60 | $8.30 | $34.10 | $30.40 | $24.20 |
Denominator for basic earnings per share — weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | 23.6 | 23.9 | 24.5 |
Dilutive employee stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 0.6 | 0.5 |
Denominator for diluted earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 24.1 | 24.5 | 25 |
Components_of_Earnings_Per_Com1
Components of Earnings Per Common Share Computation (Details Textual) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 25, 2011 |
Components of Earnings Per Common Share Computation (Textual) [Abstract] | ' |
Potentially anti-dilutive shares excluded from diluted earnings per share computation (in shares) | 0.1 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Revenues: | ' | ' | ' |
Total revenues | $206 | $178.80 | $153.80 |
Operating profit before unallocated expenses | ' | ' | ' |
Operating Profit, Gross | 65.2 | 55.4 | 45.4 |
Less unallocated expenses | ' | ' | ' |
Depreciation and amortization | 6.7 | 4.6 | 4.2 |
Other expenses (income), net | 0.3 | -0.5 | 0.5 |
Operating profit | 58.2 | 51.3 | 40.7 |
Interest expense, net | 3.7 | 3.6 | 3.7 |
Income before income taxes | 54.5 | 47.7 | 37 |
Capital expenditures | ' | ' | ' |
Capital expenditures | 33.3 | 27.3 | 7.6 |
Goodwill — year end | ' | ' | ' |
Goodwill | 11.1 | 11.1 | 11.1 |
Total assets — year end | ' | ' | ' |
Total assets | 200.5 | 172.4 | 135.6 |
Franchise operations [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Total revenues | 127.3 | 114.8 | 99.2 |
Operating profit before unallocated expenses | ' | ' | ' |
Operating Profit, Gross | 54.7 | 47.8 | 37.4 |
Capital expenditures | ' | ' | ' |
Capital expenditures | 18.8 | 18.1 | 4.1 |
Goodwill — year end | ' | ' | ' |
Goodwill | 8.9 | 8.9 | 8.9 |
Total assets — year end | ' | ' | ' |
Total assets | 154.8 | 140 | 109.8 |
Company-operated restaurants [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Total revenues | 78.7 | 64 | 54.6 |
Operating profit before unallocated expenses | ' | ' | ' |
Operating Profit, Gross | 10.5 | 7.6 | 8 |
Capital expenditures | ' | ' | ' |
Capital expenditures | 14.5 | 9.2 | 3.5 |
Goodwill — year end | ' | ' | ' |
Goodwill | 2.2 | 2.2 | 2.2 |
Total assets — year end | ' | ' | ' |
Total assets | $45.70 | $32.40 | $25.80 |
Segment_Information_Details_Te
Segment Information (Details Textual) | 12 Months Ended | |
Dec. 29, 2013 | Dec. 30, 2012 | |
Segment | ||
Segment Reporting [Abstract] | ' | ' |
Number of reportable segments | 2 | ' |
Royalty revenue allocation to segments, percentage | ' | 5.00% |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Oct. 06, 2013 | Jul. 14, 2013 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 08, 2012 | Apr. 21, 2013 | Apr. 15, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
Summary of segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $48.40 | $49.30 | $47.90 | $47.50 | $38.90 | $39.60 | $60.40 | $52.80 | ' | ' | ' |
Operating profit | 12.1 | 15.4 | 14.5 | 14.6 | 11.1 | 11.4 | 16.2 | 14.2 | ' | ' | ' |
Net income | $7 | $9 | $8.50 | $8.60 | $6.90 | $6.60 | $9.60 | $8.30 | $34.10 | $30.40 | $24.20 |
Basic earnings per common share (in dollars per share) | $0.30 | $0.38 | $0.36 | $0.36 | $0.29 | $0.28 | $0.41 | $0.34 | $1.44 | $1.27 | $0.99 |
Diluted earnings per common share (in dollars per share) | $0.29 | $0.37 | $0.35 | $0.35 | $0.29 | $0.27 | $0.40 | $0.34 | $1.41 | $1.24 | $0.97 |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Nov. 13, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 25, 2011 |
restaurant | restaurant | Property | restaurant | restaurant | ||
Franchisee | ||||||
restaurant | ||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' |
Increased sales by company-operated restaurants | ' | ' | ' | $1.20 | ' | ' |
Increased franchise revenues | ' | ' | ' | 1.7 | ' | ' |
Net impact of diluted earnings per share | ' | ' | ' | $0.01 | ' | ' |
Number of company-operated restaurant | ' | 4 | 5 | 4 | 5 | ' |
Total sales of company-operated restaurants | ' | 0.9 | ' | 78.7 | 64 | 54.6 |
Franchise revenues related to franchisee transfers | ' | ' | 1.8 | 121.9 | 110.5 | 95 |
Number of significant franchisee transfers and renewals | ' | ' | 2 | ' | ' | ' |
Number of restaurants purchased | 27 | ' | ' | ' | ' | ' |
Net gains on sale assets associated with the sale of real estate to a franchisee | ' | ' | $0.80 | ' | ' | ' |
Number of properties formerly leased to a franchisee | ' | ' | 7 | ' | ' | ' |