Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 30, 2021 | Sep. 15, 2021 | Jan. 29, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Jul. 30, 2021 | ||
Current Fiscal Year End Date | --07-30 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 000-25225 | ||
Entity Registrant Name | Cracker Barrel Old Country Store, Inc. | ||
Entity Central Index Key | 0001067294 | ||
Entity Incorporation, State or Country Code | TN | ||
Entity Tax Identification Number | 62-0812904 | ||
Entity Address, Address Line One | 305 Hartmann Drive | ||
Entity Address, City or Town | Lebanon | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37087-4779 | ||
City Area Code | 615 | ||
Local Phone Number | 444-5533 | ||
Title of 12(b) Security | Common Stock (Par Value $0.01) | ||
Trading Symbol | CBRL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,182,950,920 | ||
Entity Common Stock, Shares Outstanding | 23,497,166 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 30, 2021 | Jul. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 144,593 | $ 436,996 |
Accounts receivable | 27,372 | 20,157 |
Income taxes receivable | 21,123 | 28,852 |
Inventories | 138,320 | 139,091 |
Prepaid expenses and other current assets | 22,188 | 17,916 |
Total current assets | 353,596 | 643,012 |
Property and Equipment: | ||
Land | 255,238 | 306,201 |
Buildings and improvements | 776,441 | 897,120 |
Restaurant and other equipment | 783,264 | 748,606 |
Leasehold improvements | 405,785 | 394,461 |
Construction in progress | 13,761 | 17,130 |
Total | 2,234,489 | 2,363,518 |
Less: Accumulated depreciation and amortization | 1,254,639 | 1,233,457 |
Property and equipment - net | 979,850 | 1,130,061 |
Operating lease right-of-use assets, net | 974,477 | 691,949 |
Goodwill | 4,690 | 4,690 |
Intangible assets | 21,285 | 20,960 |
Other assets | 57,796 | 53,586 |
Total | 2,391,694 | 2,544,258 |
Current Liabilities: | ||
Accounts payable | 135,176 | 103,504 |
Current portion of long-term debt | 124 | 39,395 |
Current operating lease liabilities | 50,451 | 42,301 |
Taxes withheld and accrued | 48,031 | 31,177 |
Accrued employee compensation | 64,792 | 56,315 |
Accrued employee benefits | 23,724 | 24,377 |
Deferred revenues | 93,157 | 94,762 |
Dividend payable | 23,970 | 31,598 |
Other current liabilities | 25,837 | 27,627 |
Total current liabilities | 465,262 | 451,056 |
Long-term debt | 327,253 | 910,000 |
Long-term operating lease liabilities | 748,305 | 632,630 |
Long-term interest rate swap liability | 0 | 23,860 |
Other long-term obligations | 88,615 | 80,605 |
Deferred income taxes | 98,626 | 27,718 |
Commitments and Contingencies (Notes 11 and 17) | ||
Shareholders' Equity: | ||
Preferred stock - 100,000,000 shares of $0.01 par value authorized; 300,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued | 0 | 0 |
Common stock - 400,000,000 shares of $0.01 par value authorized; 2021 - 23,497,166 shares issued and outstanding; 2020 - 23,697,396 shares issued and outstanding | 235 | 237 |
Additional paid-in capital | 0 | 0 |
Accumulated other comprehensive loss | 0 | (20,346) |
Retained earnings | 663,398 | 438,498 |
Total shareholders' equity | 663,633 | 418,389 |
Total | $ 2,391,694 | $ 2,544,258 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 30, 2021 | Jul. 31, 2020 |
Shareholders' Equity: | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 23,497,166 | 23,697,396 |
Common stock, shares outstanding (in shares) | 23,497,166 | 23,697,396 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' Equity: | ||
Preferred stock, shares authorized (in shares) | 300,000 | 300,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) [Abstract] | |||
Total revenue | $ 2,821,444 | $ 2,522,792 | $ 3,071,951 |
Cost of goods sold (exclusive of depreciation and rent) | 865,261 | 779,937 | 931,077 |
Labor and other related expenses | 983,120 | 924,994 | 1,078,751 |
Other store operating expenses | 676,301 | 614,733 | 626,453 |
General and administrative expenses | 147,825 | 146,975 | 152,826 |
Gain on sale and leaseback transactions | (217,722) | (69,954) | 0 |
Impairment | 0 | 22,496 | 0 |
Operating income | 366,659 | 103,611 | 282,844 |
Interest expense | 56,108 | 22,327 | 16,488 |
Income before income taxes | 310,551 | 81,284 | 266,356 |
Provision for income taxes (income tax benefit) | 56,038 | (28,683) | 42,955 |
Loss from unconsolidated subsidiary | 0 | (142,442) | 0 |
Net income (loss) | $ 254,513 | $ (32,475) | $ 223,401 |
Net income (loss) per share - basic (in dollars per share) | $ 10.74 | $ (1.36) | $ 9.29 |
Net income (loss) per share - diluted (in dollars per share) | $ 10.71 | $ (1.36) | $ 9.27 |
Basic weighted average shares outstanding (in shares) | 23,692,063 | 23,865,367 | 24,037,272 |
Diluted weighted average shares outstanding (in shares) | 23,767,390 | 23,865,367 | 24,096,396 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||
Net income (loss) | $ 254,513 | $ (32,475) | $ 223,401 |
Other comprehensive income (loss) before income tax expense (benefit): | |||
Change in fair value of interest rate swaps | 27,110 | (17,740) | (15,466) |
Income tax expense (benefit) | 6,764 | (4,307) | (3,868) |
Other comprehensive income (loss), net of tax | 20,346 | (13,433) | (11,598) |
Comprehensive income (loss) | $ 274,859 | $ (45,908) | $ 211,803 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-In Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] |
Balances at Aug. 03, 2018 | $ 240 | $ 44,049 | $ 4,685 | $ 532,807 | $ 581,781 | |||||
Balances (in shares) at Aug. 03, 2018 | 24,011,550 | |||||||||
Comprehensive Income: | ||||||||||
Net income (loss) | $ 0 | 0 | 0 | 223,401 | 223,401 | |||||
Other comprehensive income (loss), net of tax | 0 | 0 | (11,598) | 0 | (11,598) | |||||
Comprehensive income (loss) | 0 | 0 | (11,598) | 223,401 | 211,803 | |||||
Cash dividends declared | 0 | 0 | 0 | (194,558) | (194,558) | |||||
Share-based compensation | 0 | 8,181 | 0 | 0 | 8,181 | |||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | $ 1 | (2,498) | 0 | 0 | (2,497) | |||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes (in shares) | 37,690 | |||||||||
Purchases and retirement of common stock | $ 0 | 0 | 0 | 0 | 0 | |||||
Purchases and retirement of common stock (in shares) | 0 | |||||||||
Balances at Aug. 02, 2019 | $ 241 | 49,732 | (6,913) | 561,650 | 604,710 | $ 0 | $ 0 | $ 0 | $ 4,125 | $ 4,125 |
Balances (in shares) at Aug. 02, 2019 | 24,049,240 | |||||||||
Comprehensive Income: | ||||||||||
Net income (loss) | $ 0 | 0 | 0 | (32,475) | (32,475) | |||||
Other comprehensive income (loss), net of tax | 0 | 0 | (13,433) | 0 | (13,433) | |||||
Comprehensive income (loss) | 0 | 0 | (13,433) | (32,475) | (45,908) | |||||
Cash dividends declared | 0 | 0 | 0 | (93,757) | (93,757) | |||||
Share-based compensation | 0 | 6,386 | 0 | 0 | 6,386 | |||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | $ 0 | (2,160) | 0 | 0 | (2,160) | |||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes (in shares) | 27,130 | |||||||||
Purchases and retirement of common stock | $ (4) | (53,958) | 0 | (1,045) | (55,007) | |||||
Purchases and retirement of common stock (in shares) | (378,974) | |||||||||
Balances at Jul. 31, 2020 | $ 237 | 0 | (20,346) | 438,498 | $ 418,389 | |||||
Balances (in shares) at Jul. 31, 2020 | 23,697,396 | 23,697,396 | ||||||||
Comprehensive Income: | ||||||||||
Net income (loss) | $ 0 | 0 | 0 | 254,513 | $ 254,513 | |||||
Other comprehensive income (loss), net of tax | 0 | 0 | 20,346 | 0 | 20,346 | |||||
Comprehensive income (loss) | 0 | 0 | 20,346 | 254,513 | 274,859 | |||||
Cash dividends declared | 0 | 0 | 0 | (23,766) | (23,766) | |||||
Share-based compensation | 0 | 8,729 | 0 | 0 | 8,729 | |||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes | $ 0 | (2,282) | 0 | 0 | $ (2,282) | |||||
Issuance of share-based compensation awards, net of shares withheld for employee taxes (in shares) | 32,313 | 32,313 | ||||||||
Purchases and retirement of common stock | $ (2) | (29,151) | 0 | (5,847) | $ (35,000) | |||||
Purchases and retirement of common stock (in shares) | (232,543) | |||||||||
Equity component value of convertible note Issuance, net of tax | $ 0 | 53,004 | 0 | 0 | 53,004 | |||||
Sale of common stock warrant | 0 | 31,710 | 0 | 0 | 31,710 | |||||
Purchase of convertible note hedge | 0 | (62,010) | 0 | 0 | (62,010) | |||||
Balances at Jul. 30, 2021 | $ 235 | $ 0 | $ 0 | $ 663,398 | $ 663,633 | |||||
Balances (in shares) at Jul. 30, 2021 | 23,497,166 | 23,497,166 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 1 | $ 3.90 | $ 8.05 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Jul. 30, 2021USD ($) | Jul. 31, 2020USD ($) | Aug. 02, 2019USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ 254,513 | $ (32,475) | $ 223,401 |
Net loss from unconsolidated subsidiary | 0 | 142,442 | 0 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 108,604 | 118,178 | 107,537 |
Amortization of debt discount and issuance costs | 864 | 0 | 0 |
Loss on disposition of property and equipment | 4,064 | 6,469 | 10,265 |
Gain on sale and leaseback transactions | (217,722) | (69,954) | 0 |
Impairment | 0 | 23,160 | 0 |
Share-based compensation | 8,729 | 6,386 | 8,181 |
Noncash lease expense | 55,817 | 63,442 | 0 |
Amortization of asset recognized from gain on sale and leaseback transactions | 12,735 | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (7,016) | 3,124 | (3,261) |
Income taxes receivable | 7,729 | (19,403) | (9,449) |
Inventories | 771 | 16,094 | 1,295 |
Prepaid expenses and other current assets | (3,538) | 401 | (1,985) |
Other assets | (3,997) | (5,638) | 2,852 |
Accounts payable | 31,672 | (30,593) | 9,889 |
Current operating lease liabilities | 8,150 | (11,269) | 0 |
Taxes withheld and accrued | 16,854 | (7,019) | 1,127 |
Accrued employee compensation | 8,472 | (11,573) | 7,311 |
Accrued employee benefits | (653) | (550) | (489) |
Deferred revenues | (1,605) | 13,028 | 5,442 |
Other current liabilities | 2,791 | 6,868 | 3,492 |
Long-term operating lease liabilities | (59,388) | (48,854) | 0 |
Other long-term obligations | 6,919 | 10,673 | 1,362 |
Deferred income taxes | 67,138 | (11,935) | (4,174) |
Net cash provided by operating activities | 301,903 | 161,002 | 362,796 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (71,409) | (297,328) | (138,293) |
Proceeds from insurance recoveries of property and equipment | 1,279 | 1,320 | 753 |
Proceeds from sale of property and equipment | 149,960 | 207,253 | 151 |
Purchase of investment in unconsolidated subsidiary | 0 | 0 | (89,100) |
Notes receivable from unconsolidated subsidiary | 0 | (35,500) | (15,085) |
Acquisition of business, net of cash acquired | (1,500) | (32,971) | 0 |
Net cash provided by (used in) investing activities | 78,330 | (157,226) | (241,574) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 60,000 | 801,395 | 400,000 |
Proceeds from issuance of convertible senior notes | 291,605 | 0 | 0 |
Taxes withheld from issuance of share-based compensation awards | (2,282) | (2,160) | (2,497) |
Principal payments under long-term debt | (924,572) | (252,000) | (400,000) |
Proceeds from issuance of warrants | 31,710 | 0 | 0 |
Purchase of convertible note hedge | (62,010) | 0 | 0 |
Purchases and retirement of common stock | (35,000) | (55,007) | 0 |
Deferred financing costs | (420) | (1,348) | (3,022) |
Dividends on common stock | (31,667) | (94,544) | (193,475) |
Net cash provided by (used in) financing activities | (672,636) | 396,336 | (198,994) |
Net increase (decrease) in cash and cash equivalents | (292,403) | 400,112 | (77,772) |
Cash and cash equivalents, beginning of year | 436,996 | 36,884 | 114,656 |
Cash and cash equivalents, end of year | 144,593 | 436,996 | 36,884 |
Cash paid during the year for: | |||
Interest, net of amounts capitalized | 40,802 | 20,268 | 12,100 |
Income taxes | 2,907 | 5,666 | 56,450 |
Supplemental schedule of non-cash investing and financing activities: | |||
Capital expenditures accrued in accounts payable | 5,806 | 1,691 | 9,508 |
Change in fair value of interest rate swaps | 27,110 | (17,740) | (15,466) |
Change in deferred tax asset for interest rate swaps | (6,764) | 4,307 | 3,868 |
Dividends declared but not yet paid | $ 24,157 | $ 32,063 | $ 32,859 |
Description of the Business
Description of the Business | 12 Months Ended |
Jul. 30, 2021 | |
Description of the Business [Abstract] | |
Description of the Business | 1. Description of the Business Cracker Barrel Old Country Store, Inc. and its affiliates (collectively, in the Notes, the “Company”) are principally engaged in the operation and development in the United States (“U.S.”) of the Cracker Barrel Old Country Store® (“Cracker Barrel”) concept. COVID-19 Impact and Company Response Despite . In response to the COVID-19 pandemic, we instituted operational protocols to comply with applicable regulatory requirements to protect the health and safety of employees and guests, and we implemented a number of strategies to support the recovery of our business and navigate through the uncertain environment. We continue to focus on growing our off-premise business and investing in our digital infrastructure to improve the guest experience in the face of these ongoing challenges |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies GAAP – The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Fiscal year – . Principles of consolidation – The Consolidated Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All significant intercompany transactions and balances have been eliminated. Cash and cash equivalents – The Company’s policy is to consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts receivable – Accounts receivable represent their estimated net realizable value. Accounts receivable are written off when they are deemed uncollectible. Inventories – Cost of restaurant inventory is determined by the first-in, first-out (“FIFO”) method. Retail inventories are valued using the retail inventory method (“RIM”) except at the retail distribution center which are valued using moving average cost. Approximately 70% of retail inventories are valued using RIM. Retail inventories valued using RIM are stated at the lower of cost or market. Cost of restaurant inventory and retail inventory valued using moving average cost are stated at the lower of cost and net realizable value. See Note 6 for additional information regarding the components of inventory. Valuation provisions are included for retail inventory obsolescence, retail inventory shrinkage, returns and amortization of certain items. The estimate of retail inventory shrinkage is adjusted upon physical inventory counts. Annual physical inventory counts are conducted based upon a cyclical inventory schedule. An estimate of shrinkage is recorded for the time period between physical inventory counts by using a two-year average of the physical inventories’ results on a store-by-store basis. Property and equipment – Property and equipment are stated at cost. For financial reporting purposes, depreciation and amortization on these assets are computed by use of the straight-line and double-declining balance methods over the estimated useful lives of the respective assets, as follows: Years Buildings and improvements 30-45 Restaurant and other equipment 2-10 Leasehold improvements 1-35 Accelerated depreciation methods are generally used for income tax purposes. Total depreciation expense and depreciation expense related to store operations for each of the three years are as follows: 2021 2020 2019 Total depreciation expense $ 107,090 $ 117,259 $ 107,294 Depreciation expense related to store operations* 100,054 109,362 100,366 *Depreciation expense related to store operations is included in other store operating expenses in the Consolidated Statements of Income. Gain or loss is recognized upon disposal of property and equipment. The asset and related accumulated depreciation and amortization amounts are removed from the accounts. Maintenance and repairs, including the replacement of minor items, are charged to expense and major additions to property and equipment are capitalized. Impairment of long-lived assets – The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying value of the asset to the undiscounted future cash flows expected to be generated by the asset. If the total expected future cash flows are less than the carrying value of the asset, the carrying value is written down, for an asset to be held and used, to the estimated fair value or, for an asset to be disposed of, to the fair value, net of estimated costs of disposal. Any loss resulting from impairment is recognized by a charge to income. Goodwill and other intangible assets – The Company accounts for all transactions that represent business combinations using the acquisition method of accounting, where the identifiable assets acquired and the liabilities assumed are recognized and measured at their fair values on the date the Company obtains control in the acquiree. Such fair values that are not finalized for reporting periods following the acquisition date are estimated and recorded as estimated amounts. Adjustments to these estimated amounts during the measurement period (defined as the date through which all information required to identify and measure the consideration transferred, the assets acquired and the liabilities assumed has been obtained, limited to one year from the acquisition date) are recorded when identified. Goodwill is determined as the excess of the fair value of the consideration conveyed in the acquisition over the fair value of the net assets acquired. Goodwill and other intangibles will be evaluated for impairment annually on June 1 and when an event occurs or circumstances change that, more likely than not, reduce the fair value of the reporting unit below its carrying value. At July 30, 2021 and July 31, 2020, the Company does not have any reporting units that are at risk of failing step one of the impairment test. Convertible Senior Notes – In June 2021, the Company completed a $300,000 principal aggregate amount private offering of 0.625% convertible Senior Notes due in 2026 (the “Notes”). In accordance with accounting guidance on embedded conversion features indexed to and settled in equity, the Company valued and bifurcated the conversion option associated with the Notes from the respective host debt instrument. The carrying amount of the equity is recorded as a debt discount and represents the difference between the proceeds from the issuance of the Notes and the fair value of the liability component of the Notes. The significant assumptions used in the fair value of the liability component of the Notes were risk-free rate, discount rate based on the Company’s implied credit spread and term of the Notes, expected volatility of the Company’s stock price and dividend yield. The resulting debt discount on the Notes is amortized to interest expense using the effective interest method over the contractual term of the Notes. In addition, the debt issuance costs related to the issuance of the Notes were allocated between the liability and equity components based on their relative values. Debt issuance costs attributable to the liability component were recorded as a contra-liability and are presented net against the Notes balance on the Company’s consolidated balance sheets. These costs are amortized to interest expense using the effective interest method over the term of the Notes. Derivative instruments and hedging activities – For each of the Company’s interest rate swaps, the Company agreed to exchange with a counterparty the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount. The interest rates on the portion of the Company’s outstanding debt covered by its interest rate swaps were fixed at the rates plus the Company’s credit spread. All of the Company’s interest rate swaps were accounted for as cash flow hedges. For derivative instruments that were designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument was reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings and was presented in the same statement of income (loss) line item as the earnings effect of the hedged item. Gains and losses on the derivative instrument representing hedge components excluded from the assessment of effectiveness, if any, will be recognized currently in earnings in the same statement of income (loss) line item as the earnings effect of the hedged item. The Company did not elect to reclassify income tax effects resulting from the Tax Cuts and Jobs Act to retained earnings; income tax effects are released on an individual basis to income tax expense (benefit). Companies may elect whether or not to offset related assets and liabilities and report the net amount on their financial statements if the right of setoff exists. Under a master netting agreement, the Company has the legal right to offset the amounts owed to the Company against amounts owed by the Company under a derivative instrument that exists between the Company and a counterparty. When the Company is engaged in more than one outstanding derivative transaction with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, its credit risk exposure is based on the net exposure under the master netting agreement. If, on a net basis, the Company owes the counterparty, the Company regards its credit exposure to the counterparty as being zero. The Company does not hold or use derivative instruments for trading purposes. The Company also does not have any derivatives not designated as hedging instruments and has not designated any non-derivatives as hedging instruments. See Note 8 for additional information on the Company’s derivative and hedging activities. Segment reporting – Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Using these criteria, the Company manages its business on the basis of one reportable operating segment (see Note 10 for additional information regarding segment reporting). Unredeemed gift cards and certificates – Unredeemed gift cards and certificates represent a liability of the Company related to unearned income and are recorded at their expected redemption value. No revenue is recognized in connection with the point-of-sale transaction when gift cards or gift certificates are sold. For those states that exempt gift cards and certificates from their escheat laws, the Company makes estimates of the ultimate unredeemed (“breakage”) gift cards and certificates in the period of the original sale and amortizes this breakage over the redemption period that other gift cards and certificates historically have been redeemed by reducing its liability and recording revenue accordingly. For those states that do not exempt gift cards and certificates from their escheat laws, the Company records breakage in the period that gift cards and certificates are remitted to the state and reduces its liability accordingly. Any amounts remitted to states under escheat or similar laws reduce the Company’s deferred revenue liability and have no effect on revenue or expense while any amounts that the Company is permitted to retain are recorded as revenue. See “Revenue recognition” section in this Note for further information regarding breakage. Revenue recognition – Revenue consists primarily of sales from restaurant and retail operations. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest, retail customer or other customer. The Company recognizes revenues from restaurant sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide food and beverages is satisfied. The Company recognizes revenues from retail sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide merchandise is satisfied. Ecommerce sales, including shipping revenue, are recorded upon delivery to the customer. Additionally, the Company provides for estimated returns based on return history and sales levels. The Company’s policy is to present sales in the Consolidated Statements of Income on a net presentation basis after deducting sales tax. Included in restaurant and retail revenue is gift card breakage. Customer purchases of gift cards, to be utilized at the Company's stores, are not recognized as sales until the card is redeemed and the customer purchases food and/or merchandise. Gift cards do not carry an expiration date; therefore, customers can redeem their gift cards indefinitely. A certain number of gift cards will not be fully redeemed. Management estimates unredeemed balances and recognizes gift card breakage revenue for these amounts in the Company's Consolidated Statements of Income over the expected redemption period. Gift card breakage is recognized when the likelihood of a gift card being redeemed by the customer is remote and the Company determines that there is not a legal obligation to remit the unredeemed gift card balance to the relevant jurisdiction. The determination of the gift card breakage rate is based upon the Company’s specific historical redemption patterns. The Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption. For 2021, 2020 and 2019, gift card breakage was $6,349, $6,288, and $6,814, respectively. Revenue recognized in the Consolidated Statements of Income for 2021, 2020 and 2019, respectively, for the redemption of gift cards which were included in the deferred revenue balance at the beginning of the fiscal year was $42,266, $36,756, and $42,292, respectively. Deferred revenue related to the Company’s gift cards was $93,098 and $94,754, respectively, at July 30, 2021 and July 31, 2020. Insurance – The Company self-insures a significant portion of its workers’ compensation and general liability programs. The Company purchases insurance for individual workers’ compensation claims that exceed $250, $750 or $1,000 depending on the state in which the claim originates. The Company purchases insurance for individual general liability claims that exceed $500. The Company records a reserve for workers’ compensation and general liability for all unresolved claims and for an estimate of incurred but not reported claims (“IBNR”). These reserves and estimates of IBNR claims are based upon a full scope actuarial study which is performed annually at the end of the Company’s third quarter and is adjusted by the actuarially determined losses and actual claims payments for the fourth quarter. Additionally, the Company performs limited scope actuarial studies on a quarterly basis to verify and/or modify the Company’s reserves. The reserves and losses in the actuarial study represent a range of possible outcomes within which no given estimate is more likely than any other estimate. As such, the Company records the losses at the lower half of that range and discounts them to present value using a risk-free interest rate based on projected timing of payments. The Company also monitors actual claims development, including incurrence or settlement of individual large claims during the interim periods between actuarial studies as another means of estimating the adequacy of its reserves. The Company’s group health plans combine the use of self-insured and fully-insured programs. Benefits for any individual (employee or dependents) in the self-insured program are limited. The Company records a liability for the self-insured portion of its group health program for all unpaid claims based upon a loss development analysis derived from actual group health claims payment experience. The Company also records a liability for unpaid prescription drug claims based on historical experience. Store pre-opening costs – Start-up costs of a new store are expensed when incurred. Leases – The Company has ground leases for its leased stores and office space leases that are recorded as operating leases under various non-cancellable operating leases. The Company also leases its advertising billboards, vehicle fleets and certain equipment under various non-cancellable operating leases. To determine whether a contract is or contains a lease, the Company determines at contract inception whether it contains the right to control the use of an identified asset for a period of time in exchange for consideration. If the contract has the right to obtain substantially all of the economic benefit from use of the identified asset and the right to direct the use of the identified asset, the Company recognizes a right-of-use asset and lease liability. The Company’s leases all have varying terms and expire at various dates through 2055. Restaurant leases typically have base terms of ten years with four to five optional renewal periods of five years each. The Company uses a lease life that generally begins on the commencement date, including the rent holiday periods, and generally extends through certain renewal periods that can be exercised at the Company’s option. During rent holiday periods, which include the pre-opening period during construction, the Company has possession of and access to the property, but is not obligated to, and normally does not, make rent payments. The Company has included lease renewal options in the lease term for calculations of the right-of-use asset and liability for which at the commencement of the lease it is reasonably certain that the Company will exercise those renewal options. Additionally, some of the leases have contingent rent provisions and others require adjustments for inflation or index. Contingent rent is determined as a percentage of gross sales in excess of specified levels. The Company records a contingent rent liability and corresponding rent expense when it is probable sales have been achieved in amounts in excess of the specified levels. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants . Advertising – The Company expenses the costs of producing advertising the first time the advertising takes place. Other advertising costs are expensed as incurred. Advertising expense for each of the three years was as follows: 2021 2020 2019 Advertising expense $ 83,630 $ 79,155 $ 81,855 Share-based compensation – The Company’s share-based compensation consists of nonvested stock awards and units. Share-based compensation is recorded in general and administrative expenses in the Consolidated Statements of Income (Loss). Share-based compensation expense is recognized based on the grant date fair value and the achievement of performance conditions for certain awards. The Company recognizes share-based compensation expense on a straight-line basis over the requisite service period, which is generally the award’s vesting period, or to the date on which retirement eligibility is achieved, if shorter. Certain nonvested stock awards and units contain performance conditions. Compensation expense for performance-based awards is recognized when it is probable that the performance criteria will be met. If any performance goals are not met, no compensation expense is ultimately recognized and, to the extent previously recognized, compensation expense is reversed. If a share-based compensation award is modified after the grant date, incremental compensation expense is recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. Incremental compensation expense for vested awards is recognized immediately. For unvested awards, the sum of the incremental compensation expense and the remaining unrecognized compensation expense for the original award on the modification date is recognized over the modified service period. Additionally, the Company’s policy is to issue shares of common stock to satisfy exercises of share-based compensation awards. Income taxes – The Company’s provision for income taxes includes employer tax credits for FICA taxes paid on employee tip income and other employer tax credits are accounted for by the flow-through method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company recognizes (or derecognizes) a tax position 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 (or not 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 ultimate settlement. The Company recognizes, net of tax, interest and estimated penalties related to uncertain tax positions in its provision for income taxes. See Note 15 for additional information regarding income taxes. Comprehensive income (loss) – Comprehensive income (loss) includes net income (loss) and the effective unrealized portion of the changes in the fair value of the Company’s interest rate swaps. Net income (loss) per share – . Use of estimates – Management of the Company has made certain estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods to prepare these Consolidated Financial Statements in conformity with GAAP. Management believes that such estimates have been based on reasonable and supportable assumptions and that the resulting estimates are reasonable for use in the preparation of the Consolidated Financial Statements. Actual results, however, could differ from those estimates. Recent Accounting Pronouncements Adopted Goodwill Impairment In January the Financial Accounting Standards Board (“FASB”) issued accounting guidance related to the subsequent measurement of goodwill. Under this new guidance, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. This guidance was effective for public business entities for fiscal years beginning after December and interim periods within those fiscal years. Recent Accounting Pronouncements Not Yet Adopted Accounting for Income Taxes In December 2019, the FASB issued accounting guidance in order to simplify the accounting for income taxes. This new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This accounting guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. In general, entities will apply the new guidance on a prospective basis, except for certain items such as the guidance on franchise taxes that are partially based on income. The guidance on franchise taxes that are partially based on income will be applied either retrospectively for all periods presented or using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company does not expect that the adoption of this accounting guidance in the first quarter of 2022 will have a significant impact on the Company’s consolidated financial position or results of operations. Accounting for Convertible Instruments In August 2020, the FASB issued accounting guidance to simplify the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity’s own equity. For convertible instruments, the Board decided to reduce the number of accounting models for convertible debt instruments and convertible preferred stock. By removing the separation model, a convertible debt instrument will be reported as a single liability instrument with no separate accounting for embedded conversion features. This new standard also removes certain settlement conditions that are required for contracts to qualify for equity classification and simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted earnings per share calculations. This guidance is effective for public business entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. This guidance should be applied through either a modified retrospective method of transition or a fully retrospective method of transition. The Company elected to early adopt this guidance in the first quarter of 2022 using the modified retrospective method. The impact of this adoption in the first quarter of 2022 resulted in the increase in long-term debt and decrease in equity on the Consolidated Balance Sheet by the amount of the equity component of the convertible notes recognized in equity. |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Jul. 30, 2021 | |
Equity Method Investment [Abstract] | |
Equity Method Investment | 3. Equity Method Investment Effective July 18, 2019, the Company purchased approximately of the economic ownership interest, and approximately $ . . The Company assesses the impairment of its equity investment whenever events or changes in circumstances indicate that a decrease in value of the investment has occurred that is other than temporary. During the onset of the COVID-19 pandemic, PBS Holdco’s wholly-owned subsidiary and principal operating company, PBS BrandCo, LLC (“Brandco”) suffered unsustainable disruption to its business across the chain and suspended all operations. On March 20, 2020, the primary lender under Brandco’s secured credit facility (“Lender”) provided notice of the Lender’s intention to foreclose on its collateral interest in Brandco unless Cracker Barrel repaid or unconditionally guaranteed the indebtedness. In keeping with the Company’s strategy of concentrating its resources on its core business during the COVID-19 pandemic, and in light of the substantial uncertainties surrounding PBS business coming out of the COVID-19 pandemic, the Company decided not to invest further resources to prevent foreclosure or otherwise provide additional capital to PBS HC. The Company recorded a loss of $132,878, which represented the Company’s equity investment in PBS HC and the principal and accumulated interest under the outstanding unsecured indebtedness of PBS HC held by the Company. This loss is recorded in the net loss in unconsolidated subsidiary line on the Company’s Consolidated Statement of Income (Loss) in 2020. During the course of the pandemic, the Lender unsuccessfully sought a buyer for Brandco and its assets, culminating in Brandco filing a petition for reorganization under Chapter 11 of the United States Bankruptcy Code in December 2020. In April 2021, the United States Bankruptcy Court for the District of Delaware approved a plan of liquidation of Brandco, pursuant to which the Lender purchased Brandco and certain of its assets and liabilities for a purchase price of approximately $32,000, none of which proceeds were attributable to the Company’s interest in PBS. Following the completion of this sale transaction, the Company’s remaining interest in PBS was determined to have no remaining value. |
Acquisition of Business
Acquisition of Business | 12 Months Ended |
Jul. 30, 2021 | |
Acquisition of Business [Abstract] | |
Acquisition of Business | 4. Acquisition Effective October 10, 2019, the Company acquired 100% ownership of Maple Street Biscuit Company (“MSBC”), a breakfast and lunch fast casual concept, for a purchase price of $36,000, of which $32,000 was paid to the sellers in cash with the remaining $4,000 being held as security for the satisfaction of indemnification obligations of the sellers, if any. The first installment of $1,500, to be held as security, was paid to the principal seller in the first quarter of 2021, and the remaining amount, if any, will be paid in a final installment to the sellers on the two-year anniversary of closing. The Company believes that this investment supports its strategic initiative to extend the brand by becoming a market leader in the breakfast and lunch-focused fast casual dining segment of the restaurant industry and by providing a platform for growth. In 2020, the Company converted its six Holler & Dash locations into MSBC locations. At July 30, 2021, MSBC had 37 company-owned and seven franchised fast casual locations across seven states. The goodwill of $4,690 arising from the acquisition consists largely of the Company’s determination of the value of MSBC’s future free cash flows less the value of the identifiable tangible and intangible assets and liabilities. None of the goodwill recognized is expected to be deductible for income tax purposes. Acquisition-related costs of $1,269 were recorded in the general and administrative expenses line in the Consolidated Statement of Income (Loss) in 2020. The following table summarizes the consideration paid for MSBC and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: Fair value of total consideration transferred $ 36,000 Recognized amounts of identifiable assets acquired and liabilities assumed Financial assets $ 96 Property and equipment 13,580 Operating lease right-of-use assets, net 14,454 Indefinite-lived intangible asset* 20,960 Other current and noncurrent assets 394 Financial liabilities (1,876 ) Operating lease liabilities (15,973 ) Other noncurrent liabilities (325 ) Total identifiable net assets 31,310 Goodwill $ 4,690 *Consists entirely of MSBC’s Tradename All amounts recorded for the assets acquired, liabilities assumed and goodwill are final. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value for certain of the Company’s assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, a three level hierarchy for inputs is used. These levels are: ● Quoted Prices in Active Markets for Identical Assets (“Level 1”) – quoted prices (unadjusted) for an identical asset or liability in an active market. ● Significant Other Observable Inputs (“Level 2”) – quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. ● Significant Unobservable Inputs (“Level 3”) – unobservable and significant to the fair value measurement of the asset or liability. The Company’s assets and liabilities measured at fair value on a recurring basis at July 30, 2021 were as follows: Level 1 Level 2 Level 3 Total Fair Value Cash equivalents* $ 35,001 $ — $ — $ 35,001 Total $ 35,001 $ — $ — $ 35,001 Deferred compensation plan assets** measured at net asset value aa aa aa 32,527 Total assets at fair value aa aa aa $ 67,528 aa aa aa Interest rate swap liability (see Note 8) $ — $ — $ — $ — Total liabilities at fair value $ — $ — $ — $ — The : Level 1 Level 2 Level 3 Total Fair Value Cash equivalents* $ 132,001 $ — $ — $ 132,001 Total $ 132,001 $ — $ — $ 132,001 Deferred compensation plan assets** measured at net asset value aaa aaa aaa 28,530 Total assets at fair value aa aa aaa $ 160,531 aa aa aaa Interest rate swap liability (see Note 8) $ — $ 27,746 $ — $ 27,746 Total liabilities at fair value $ — $ 27,746 $ — $ 27,746 *Consists of money market fund investments. **Represents plan assets invested in mutual funds established under a Rabbi Trust for the Company’s non-qualified savings plan and is included in the Consolidated Balance Sheets as other assets (see Note 14). The Company’s money market fund investments are measured at fair value using quoted market prices. The fair values of the Company’s interest rate swap liabilities were determined based on the present value of expected future cash flows. Since the Company’s interest rate swap values were based on the LIBOR forward curve, which is observable at commonly quoted intervals for the full terms of the swaps, it is considered a Level 2 input. Nonperformance risk was reflected in determining the fair value of the interest rate swaps by using the Company’s credit spread less the risk-free interest rate, both of which are observable at commonly quoted intervals for the terms of the swaps. Thus, the adjustment for nonperformance risk was also considered a Level 2 input. The Company’s deferred compensation plan assets are measured based on net asset value per share as a practical expedient to estimate fair value . The fair values of accounts receivable and accounts payable at July 30, 2021 and July 31, 2020, approximate their carrying amounts because of their short duration. The fair value of the Company’s variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amounts at July 30, 2021 and July 31, 2020 . Assets Measured at Fair Value on a Nonrecurring Basis As part of the Company’s acquisition of MSBC effective October the Company recorded MSBC’s property and equipment and the MSBC tradename at fair value. The remaining identifiable assets and liabilities acquired were recorded at carrying value, which approximated their fair value at October Additionally, goodwill was recorded as the excess of fair value of the consideration conveyed in the acquisition over the fair value of the net assets acquired. The fair value of MSBC’s property and equipment, tradename and the related goodwill are considered Level inputs. The valuation method used by the Company depends on the type of asset and the availability of data. The Company’s assets measured at fair value on a nonrecurring basis as of October were as follows: Level Level Level Total Fair Value Property and equipment $ — $ — $ 13,580 $ 13,580 Tradename* — — 20,960 20,960 Goodwill — — 4,690 4,690 Total $ — $ — $ 39,230 $ 39,230 *Included in the Consolidated Balance Sheets as intangible assets. See Notes 2 and 4 for further information in regard to the determination of goodwill. The fair value of the property and equipment was determined by using the cost approach. Assumptions used in the cost method included estimates of replacement costs for similar property and equipment. Replacement cost was estimated to be approximately $500 per MSBC store. The fair value of MSBC’s tradename was determined by using the present value of estimated cash flows from comparable industry royalty rates for MSBC’s estimated future revenue streams. Assumptions used under this approach included an approximate 2.5% royalty rate and a discount rate of 12.0%. During 2020, certain Cracker Barrel and MSBC locations were determined to be impaired. Fair value of these locations was determined by sales prices of comparable assets or estimates of discounted future cash flows considering their highest and best use. Assumptions used in the cash flow model included projected annual revenue growth rates and projected cash flows, which can be affected by economic conditions and management’s expectations. Additionally, changes in the local economies and overall market can impact the sales prices of the assets. The Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs, and thus, are considered Level 3 inputs. Based on its analysis, the Company recorded an estimated impairment charge of $22,496, which is included in the impairment line on the Consolidated Statement of Income (Loss) . The Company’s financial instruments that are not remeasured at fair value include the 0.625% convertible Senior Notes (see Note 7). The Company estimates the fair value of the Notes through consideration of quoted market prices of similar instruments, classified as Level 2 as described above. The estimated fair value of the Notes was $249,233 as of July 30, 2021. |
Inventories
Inventories | 12 Months Ended |
Jul. 30, 2021 | |
Inventories [Abstract] | |
Inventories | 6. Inventories Inventories were comprised of the following at: July 30, 2021 July 31, 2020 Retail $ 104,143 $ 105,502 Restaurant 21,583 19,636 Supplies 12,594 13,953 Total $ 138,320 $ 139,091 |
Debt
Debt | 12 Months Ended |
Jul. 30, 2021 | |
Debt [Abstract] | |
Debt | 7. Debt On September 5, 2018, the Company entered into a $ revolving credit facility (“2019 Revolving Credit Facility”) with substantially the same terms and financial covenants as the Company’s $ revolving credit facility, which it replaced. The 2019 Revolving Credit Facility also contains an option to increase the revolving credit facility by $ . In the third quarter of 2021, the Company entered into an amendment to the 2019 Revolving Credit Facility which reduced the commitment amount from $ to $ . At July 30, 2021 and July 31, 2020, $ , . At July 30, 2021, the Company had $ . At July 30, 2021, the Company had $ in borrowing availability under the 2019 Revolving Credit Facility. In accordance with the 2019 Revolving Credit Facility, outstanding borrowings bear interest, at the Company’s election, either at LIBOR or prime plus a percentage point spread based on certain specified financial ratios. the weighted average interest rate on At July 31, 2020, $ of our outstanding borrowings under the 2019 Revolving Credit Facility were swapped at a weighted average interest rate of ; the weighted average interest rate on the remaining $ of our outstanding borrowings was . See Note 8 for information on the Company’s interest rate swaps. The 2019 The 2019 Revolving Credit Facility also imposes restrictions on the amount of dividends the Company is permitted to pay and the amount of shares the Company is permitted to repurchase. $ (the “Cash Availability”), the Company may declare and pay cash dividends on shares of its common stock and repurchase shares of its common stock (1) in an unlimited amount if, at the time such dividend or repurchase is made, the Company’s consolidated total leverage ratio is to 1.00 or less and (2) in an aggregate amount not to exceed $ in any fiscal year if the Company’s consolidated total leverage ratio is greater than to 1.00 at the time the dividend or repurchase is made; notwithstanding (1) and (2), so long as immediately after giving effect to the payment of any such dividends, Cash Availability is at least $ , the Company may declare and pay cash dividends on shares of its common stock in an aggregate amount not to exceed in any fiscal year the product of the aggregate amount of dividends declared in the fourth quarter of the immediately preceding fiscal year multiplied by . Convertible Senior Notes On June 18, 2021, the Company completed a $ principal aggregate amount private offering of convertible Senior Notes due in 2026 (the “Notes”) which included the exercise in full of the initial purchasers’ option to purchase up to an additional $ principal amount of the Notes. The Notes are governed by the terms of an indenture between the Company and U.S. Bank National Association as the Trustee. The Notes will mature on , unless earlier converted, repurchased or redeemed. The Notes bear cash interest at an annual rate of , payable in arrears on June 15 and December 15 of each year, beginning on December 15, 2021. The Notes are unsecured obligations and do not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. In an event of default, the principal amount of, and all accrued and unpaid interest on, all of the notes then outstanding will immediately become due and payable. However, notwithstanding the foregoing, the Company may elect, at its option, that the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture will consist exclusively of the right of the noteholders to receive special interest on the Notes for up to calendar days during which such event of default has occurred and is continuing, at a specified rate for the first of per annum, and thereafter at a rate of per annum, on the principal amount of the Notes. The initial conversion rate applicable to the Notes was shares of the Company’s common stock per $ principal amount of Notes, which represented an initial conversion price of approximately $ per share of the Company’s common stock, a premium of over the last reported sale price of $ per share on June 15, 2021, the date on which the Notes were priced. The conversion rate is subject to customary adjustments upon the occurrence of certain events, including for the payment of dividends to holders of the Company’s common stock. On July 15, 2021, the conversion rate was adjusted to shares of the Company’s common stock per $ principal amount of Notes as a result of Company’s declaration of the regular quarterly dividend subsequently paid on , to shareholders of record on . In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. Net proceeds from the 2026 Notes offering were $ , after deducting the initial purchasers’ discounts and commissions and the Company’s offering fees and expenses. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component before the allocation of any issuance costs was calculated by measuring the fair value of a similar liability that does not have an associated exchangeable feature. The carrying amount of the equity component (before the allocation of any issuance costs), representing the conversion option, which does not require separate accounting as a derivative as it meets a scope exception for certain contracts involving an entity’s own equity, was determined by deducting the fair value of the liability component from the par value of the Notes. The difference between the principal amount of the Notes and the liability component represents the debt discount, which is recorded as a direct deduction from the related debt liability in the consolidated balance sheet and accreted over the period from the date of issuance to the contractual maturity date, resulting in the recognition of non-cash interest expense. The equity component of the Notes of $ is included in additional-paid in capital in the consolidated balance sheet and is not remeasured as long as it continues to meet the conditions for equity classification. Issuance costs were allocated to the liability and equity components in the same proportion as the allocation of the proceeds. Issuance costs attributable to the liability component were recorded as debt issuance costs in the consolidated balance sheet and are amortized to interest expense using the effective interest method over the term of the Notes, and issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. The following table includes the outstanding principal amount and carrying value of the Notes as of the period indicated: July 30, 2021 Liability component Principal $ 300,000 Less: Debt discount (1) 50,767 Less: Debt issuance costs 7,254 Net carrying amount 241,979 (1) Debt discount and issuance costs are amortized to interest expense using the effective interest method over the expected life of the Notes. During any calendar quarter preceding September 30, 2021, in which the closing price of the Company’s common stock exceeds of the applicable conversion price of the Notes on at least of the last consecutive trading days of the quarter, holders may in the immediate quarter following, convert all of a portion of their Notes. Based on the daily closing prices of the Company’s stock during the quarter ended July 30, 2021, holders of the Notes are eligible to convert their Notes during the first quarter of 2022. When a conversion notice is received, the Company has the option to pay or deliver cash, shares of the Company’s common stock, or a combination thereof. Accordingly, as of July 30, 2021, the Company could not be required to settle the Notes in cash and, therefore, the Notes are classified as long-term debt. Convertible Note Hedge and Warrant Transactions In connection with the offering of the Notes, the Company entered into convertible note hedge transactions (the “Convertible Note Hedge Transactions”) with certain of the initial purchasers of the Notes and/or their respective affiliates and other financial institutions (in this capacity, the “Hedge Counterparties”). Concurrently with the Company’s entry into the Convertible Note Hedge Transactions, the Company also entered into separate, warrant transactions with the Hedge Counterparties collectively relating to the same number of shares of the Company’s common stock, which initially is approximately shares, subject to customary anti-dilution adjustments, and for which the Company received proceeds that partially offset the cost of entering into the Convertible Note Hedge Transactions (the “Warrant Transactions”). The Convertible Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that initially underlie the Notes, and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the Notes. The Warrant Transactions could have a dilutive effect on the Company’s common stock to the extent that the price of its common stock exceeds the strike price of the Warrant Transactions. The strike price will initially be $ per share and is subject to certain adjustments under the terms of the Warrant Transactions. The portion of the net proceeds to the Company from the offering of the Notes that was used to pay the premium on the Convertible Note Hedge Transactions, net of the proceeds to the Company from the Warrant Transactions, was approximately $ . The net costs incurred in connection with the Convertible Note Hedge Transactions and Warrant Transactions were recorded as a reduction to additional paid-in capital on the Company’s Consolidated Balance Sheet during 2021. As these transactions meet certain accounting criteria, the Convertible Note Hedge Transactions and Warrant Transactions were recorded in stockholders’ equity, not accounted for as derivatives and are not remeasured each reporting period. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Jul. 30, 2021 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | 8. Derivative Instruments and Hedging Activities During the fourth quarter of 2021, in conjunction with paying down debt under the revolving credit facility, the Company terminated all of its interest rate swap agreements which resulted in the reclassification of the remaining losses from accumulated other comprehensive loss (“AOCL”) to the Consolidated Statements of Income (Loss) as part of interest expense. The determination of the amounts reclassified from AOCL to interest expense was based on the Company’s assessment that the forecasted transactions under the hedging relationships were no longer probable. Prior to the termination of the interest rate swaps, for each of the Company’s interest rate swaps, the Company had agreed to exchange with a counterparty the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount. The interest rates on the portion of the Company’s outstanding debt covered by its interest rate swaps were fixed at the rates specified in the interest rate swap agreements plus the Company’s credit spread. The estimated fair values of the Company’s derivative instruments were as follows: (See Note 5) Balance Sheet Location July 30, 2021 July 31, 2020* Interest rate swaps Other current liabilities $ — $ 3,886 Interest rate swaps Long-term interest rate swap liability — 23,860 Total liabilities $ — $ 27,746 *These interest rate swap liabilities were recorded gross at July 31, 2020 since there were no offsetting assets under the Company’s master netting agreements. The estimated fair values of the Company’s interest rate swap liabilities incorporated the Company’s non-performance risk (see Note 5). The adjustment related to the Company’s non-performance risk at July 31, 2020 resulted in a reduction of $978 in the total fair value of the interest rate swap liabilities. The offset to the interest rate swap liabilities was recorded in AOCL, net of the deferred tax assets. Cash flows related to the interest rate swaps are included in the interest expense line in the Consolidated Statements of Income (Loss) and in operating activities in the Consolidated Statements of Cash Flows. The following table summarizes the pre-tax effects of the Company’s derivative instruments on AOCL for each of the three years: Amount of Income (Loss) Recognized in AOCL on Derivatives (Effective Portion) 2021 2020 2019 Cash flow hedges: Interest rate swaps $ 27,110 $ (17,740 ) $ (15,466 ) The following table summarizes the changes in AOCL, net of tax, related to the Company’s interest rate swaps for the years ended July 30, 2021, July 31, 2020 and August 2, 2019: July 31, 2021 July 30, 2020 August 2, 2019 Beginning AOCL balance $ (20,346 ) $ (6,913 ) $ 4,685 Other comprehensive income (loss) before reclassifications 39,424 (12,559 ) (11,752 ) Amounts reclassified from AOCL into earnings (19,078 ) (874 ) 154 Other comprehensive income (loss), net of tax 20,346 (13,433 ) (11,598 ) Ending AOCL balance $ — $ (20,346 ) $ (6,913 ) The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for each of the three years: Location of (Income) Loss Reclassified from AOCL into Income (Effective Portion) Amount of (Income) Loss Reclassified from AOCL into Income (Effective Portion) 2021 2020 2019 Cash flow hedges: Interest rate swaps Interest expense $ 25,420 $ 1,165 $ (206 ) The following table summarizes the amounts reclassified out of AOCL related to the Company’s interest rate swaps for the years ended July 30, 2021, July 31, 2020 and August 2, 2019: Affected Line Item in the Consolidated Details about AOCL July 30, 2021 July 31, 2020 August 2, 2019 Statement of Income Loss on cash flow hedges: Interest rate swaps $ (25,420 ) $ (1,165 ) $ 206 Interest expense Tax benefit 6,342 291 (52 ) Provision for income taxes $ (19,078 ) $ (874 ) $ 154 Net of tax No gains or losses representing amounts excluded from the assessment of effectiveness were recognized in earnings in 2021 and 2020. No ineffectiveness has been recorded in 2019. |
Share Repurchases
Share Repurchases | 12 Months Ended |
Jul. 30, 2021 | |
Share Repurchases [Abstract] | |
Share Repurchases | 9. Share Repurchases In 2019, the Company’s Board of Directors approved share repurchase authorizations up to a maximum of $25,000. Additionally, in the fourth quarter of 2019, the Company’s Board of Directors increased the share repurchase authorization to $50,000. In the third quarter of 2020, the Company’s Board of Directors approved the repurchase of up to an additional $25,000. This authorization was effective immediately and replaced the $50,000 share repurchase authorization which had been expended. In response to the COVID-19 pandemic, however, the Company temporarily suspended all share repurchases until the fourth quarter of 2021 when 232,543 shares of the Company’s common stock were repurchased at an aggregate cost of $35,000 in conjunction with the Company’s offering and sale of the Notes (see Note 7 for further information regarding the Notes). In 2020, the Company repurchased 378,974 shares of its common stock in the open market at an aggregate cost of $55,007. The Company did not repurchase any shares of its common stock in 2019 . |
Segment Information
Segment Information | 12 Months Ended |
Jul. 30, 2021 | |
Segment Information [Abstract] | |
Segment Information | 10. Segment Information Cracker Barrel stores represent a single, integrated operation with two related and substantially integrated product lines. The operating expenses of the restaurant and retail product lines of a Cracker Barrel store are shared and are indistinguishable in many respects. Accordingly, the Company manages its business on the basis of one reportable operating segment. All of the Company’s operations are located within the United States. Disaggregation of revenue Total revenue was comprised of the following at: 2021 2020 2019 Restaurant $ 2,227,246 $ 2,032,030 $ 2,482,377 Retail 594,198 490,762 589,574 Total revenue $ 2,821,444 $ 2,522,792 $ 3,071,951 |
Leases
Leases | 12 Months Ended |
Jul. 30, 2021 | |
Leases [Abstract] | |
Leases | 11. Leases In 2020 the Company adopted new accounting guidance for leases. As part of the adoption of this accounting guidance for leases, the Company elected to not separate lease and non-lease components. Additionally, the Company elected to apply the short term lease exemption to all asset classes and the short term lease expense for the period reasonably reflects the short term lease commitments. As the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the time of commencement or modification date in determining the present value of lease payments. For operating leases that commenced prior to the date of adoption of the new lease accounting guidance, the Company used the incremental borrowing rate as of the adoption date. Assumptions used in determining the Company’s incremental borrowing rate include the Company’s implied credit rating and an estimate of secured borrowing rates based on comparable market data. The Company has entered into agreements for real estate leases that are not recorded as right-of-use assets or lease liabilities as it has not yet taken possession. These leases are expected to commence in 2022 with undiscounted future payments of $11,186. The following table summarizes the components of lease cost for operating leases for the years ended July 30, 2021: Year Ended July 30, 2021 Year Ended July 31, 2020 Operating lease cost $ 106,266 $ 82,963 Short term lease cost 2,363 2,896 Variable lease cost 2,248 1,719 Total lease cost $ 110,877 $ 87,578 Prior to the adoption of the new lease accounting guidance in 2020, rent expense under operating leases, including the sale-leaseback transactions discussed below, for 2019 was: Year Minimum Contingent Total 2019 $ 78,044 $ 280 $ 78,324 The following table summarizes supplemental cash flow information and non-cash activity related to the Company’s operating leases for the year ended July 30, 2021 : Year Ended July 30, 2021 Year Ended July 31 2020 Operating cash flow information: Gain on sale and leaseback transactions $ 217,722 $ 69,954 Cash paid for amounts included in the measurement of lease liabilities 89,264 80,265 Noncash information: Right-of-use assets obtained in exchange for new operating lease liabilities 316,563 267,266 Lease modifications assets 35,059 29,793 Lease modifications removing right-of-use assets (544 ) (19,939 ) The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for operating leases as of July 30, 2021 and July 31, 2020: July 30 2021 July 31 2020 Weighted-average remaining lease term 18.17 19.05 Weighted-average discount rate 4.84 % 4.50 % The following table summarizes the maturities of undiscounted cash flows reconciled to the total operating lease liability as of July 30, 2021: Year Total 2022 $ 86,992 2023 78,471 2024 63,908 2025 61,182 2026 61,548 Thereafter 884,987 Total future minimum lease payments 1,237,088 Less imputed remaining interest (438,332 ) Total present value of operating lease liabilities $ 798,756 Sale and Leaseback Transactions In 2009, the Company completed sale and leaseback transactions involving 15 of its owned stores and its retail distribution center. Under the transactions, the land, buildings and improvements at the locations were sold and leased back for terms of 20 and 15 years, respectively. Equipment was not included. The leases include specified renewal options for up to 20 additional years. In 2000, the Company completed a sale and leaseback transaction involving 65 of its owned Cracker Barrel stores. Under the transaction, the land, buildings and building improvements at the locations were sold and leased back for a term of 21 years. The leases for these stores included specified renewal options for up to 20 additional years. On July 29, 2020, the Company entered into an agreement with the original lessor and a third party financier to obtain ownership of 64 of the 65 Cracker Barrel properties and simultaneously entered into a sale and leaseback transaction with the financier for an aggregate purchase price, net of closing costs, of $198,083. The Company purchased the remaining property for approximately $3,200. In connection with the sale and leaseback transaction, the Company entered into lease agreements for each of the properties for initial terms of 20 years and renewal options up to 50 years. The aggregate initial annual rent payment for the properties is approximately $14,379 and includes 1% annual rent increases over the initial lease terms. All the properties qualified for sale and leaseback and operating lease accounting classification and the Company recorded a gain on the sale and leaseback transaction of $69,954 which is recorded in the gain on sale and leaseback transactions line in the Consolidated Statements of Income (Loss). The Company also recorded operating lease right-of-use assets and corresponding operating lease liabilities of $261,698 and $182,649, respectively. On August 4, 2020, the Company completed a subsequent sale and leaseback transaction involving 62 of its owned Cracker Barrel stores for an aggregate purchase price, net of closing costs, of $146,357. Under the transaction, the land, buildings and building improvements at the locations were sold and leased back for initial terms of 20 years and renewal options up to 50 years. The aggregate initial annual rent payment for the properties is approximately $10,393 and includes 1% annual rent increases over the initial lease terms. All of the properties qualified for sale and leaseback and operating lease accounting classification, and the Company recorded a gain of $217,722 which is recorded in the gain on sale and leaseback transaction line in the Consolidated Statement of Income in the first quarter of 2021. The Company also recorded operating lease right-of-use assets, including a non-cash asset recognized as part of accounting for the transaction of $175,960, and corresponding operating lease liabilities of $309,624 and $133,663, respectively . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jul. 30, 2021 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 12. Share-Based Compensation Stock Compensation Plans The Company’s employee compensation plans are administered by the Compensation Committee of the Company’s Board of Directors (the “Committee”). The Committee is authorized to determine, at time periods within its discretion and subject to the direction of the Board of Directors, which employees will be granted awards, the number of shares covered by any awards granted, and within applicable limits, the terms and provisions relating to the exercise and vesting of any awards. On November 19, 2020, the Company’s shareholders approved the 2020 Omnibus Incentive Plan (the “2020 Omnibus Plan”) which became effective on that date. The 2020 Omnibus Plan authorizes the following types of awards for employees and non-employee directors: stock options, stock appreciation rights, nonvested stock, restricted stock units, other share-based awards and performance awards. After the effective date of the 2020 Omnibus Plan, no additional awards could be granted under the Company’s 2010 Omnibus Incentive Stock and Incentive Plan (the “Prior Plan”). The 2020 Omnibus Plan allows the Committee to grant awards for an aggregate of 1,033,441 shares, the number of shares that were available for issuance as of September 24, 2020 (the “Cutoff Date”) pursuant to the Prior Plan, plus the number of shares that became available for issuance pursuant to the terms of the Prior Plan following the Cutoff Date and prior to the effective date. However, this share reserve is increased by shares awarded under this and the Prior Plan which are forfeited, expired, settled for cash and shares withheld by the Company in payment of a tax withholding obligation after the effective date of the 2020 Omnibus Plan. Additionally, this share reserve was decreased by shares granted from the 2020 Omnibus Plan after the effective date. At July 30, 2021, the number of shares authorized for future issuance under the Company’s active plan is 1,054,002. At July 30, 2021, the number of outstanding awards under the 2020 Omnibus Plan and the Prior Plan was 12,118 and 125,334, respectively. Types of Share-Based Awards Nonvested Stock Awards Nonvested stock awards consist of the Company’s common stock, generally accrue dividend equivalents and vest over 1–5 years. The fair value of the Company’s nonvested stock awards which accrue dividends is equal to the market price of the Company’s stock at the date of the grant. Dividends are forfeited for any nonvested stock awards that do not vest. The Company’s nonvested stock awards include its long-term performance plans which were established by the Committee for the purpose of rewarding certain officers with shares of the Company’s common stock if the Company achieved certain performance targets. The stock awards under the long-term performance plans are calculated or estimated based on achievement of financial performance measures. The following table summarizes the performance periods and vesting periods for the Company’s nonvested stock awards under its long-term performance plans at July 30, 2021: Long-Term Performance Plan (“LTPP”) Performance Period Vesting Period (in Years) 2021 LTPP 2021 – 2022 2 or 3 2020 LTPP 2020 – 2021 2 or 3 The following table summarizes the shares that have been accrued under the 2021 LTPP and 2020 LTPP at July 30, 2021: 2021 LTPP 15,594 2020 LTPP 19,824 A summary of the Company’s nonvested stock activity as of July 30, 2021, and changes during 2021 are presented in the following table: Nonvested Stock Shares Weighted-Average Grant Date Fair Value Unvested at July 31, 2020 59,755 $ 152.34 Granted 59,096 122.44 Vested (21,998 ) 145.48 Forfeited (7,530 ) 133.86 Unvested at July 30, 2021 89,323 $ 135.81 The following table summarizes the total fair value of nonvested stock that vested for each of the three years: 2021 2020 2019 Total fair value of nonvested stock $ 3,200 $ 3,084 $ 5,119 Nonvested Stock Units Beginning in 2017 through 2020, the Company adopted long-term incentive plans that award nonvested stock units based upon relative total shareholder return (“rTSR RSUs”). The number of nonvested stock units that will ultimately be awarded and will vest at the end of the applicable three-year performance period is based on relative total shareholder return, which is defined as increases in the Company’s stock price plus dividends paid during the performance period as compared to the total shareholder return of a group of peer companies determined by the Committee. The number of shares awarded at the end of the performance period for each nonvested stock unit may range from 75% to 125% of the target award. The probability of the actual shares expected to be earned is considered in the grant date valuation; therefore, the expense will not be adjusted to reflect the actual units earned. The fair value of the nonvested stock units is determined using the Monte-Carlo simulation model, which simulates a range of possible future stock prices and estimates the probabilities of the potential payouts. This model uses the average prices for the 60 consecutive calendar days beginning 30 days prior to and ending 30 days after the first business day of the performance period. This model also incorporates the following ranges of assumptions: ● The expected volatilities are the historical volatilities of the Company’s stock and the members of the peer group over the period commensurate with the three-year performance period. ● T . The risk-free interest rate for the nonvested stock units granted in 2019 was . ● The expected dividend yield is assumed to be zero since the award holders are entitled to any dividends paid over the performance period. Dividends accrue on the nonvested stock units. Dividends will be forfeited for nonvested stock units that do not vest. The following table summarizes the shares that have been accrued for rTSR RSUs awards under the 2020 and 2019 long-term incentive plans at July 30, 2021: Shares 2020 rTSR RSUs 4,120 2019 rTSR RSUs 8,591 Compensation Expense The following table highlights the components of share-based compensation expense for each of the three years: 2021 2020 2019 Total compensation expense $ 8,729 $ 6,386 $ 8,181 The following table highlights the total unrecognized compensation expense related to the outstanding nonvested stock awards and nonvested stock units and the weighted-average periods over which the expense is expected to be recognized as of July 30, 2021: Nonvested Stock Awards Nonvested Stock Units Total unrecognized compensation $ 5,335 $ 476 Weighted-average period in years 1.78 1.00 During 2021, the Company issued 32,313 shares of its common stock resulting from the vesting of share-based compensation awards. Related tax withholding payments on these share-based compensation awards resulted in a net reduction to shareholders’ equity of $2,282. |
Shareholder Rights Plan
Shareholder Rights Plan | 12 Months Ended |
Jul. 30, 2021 | |
Shareholder Rights Plan [Abstract] | |
Shareholder Rights Plan | 13. Shareholder Rights Plan On April 9, 2021, the Company’s Board of Directors declared a dividend of preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $ per share, and adopted a shareholder rights plan, as set forth in the Rights Agreement dated as of (the “Rights Agreement”), by and between the Company and American Stock Transfer & Trust Company, LLC, as rights agent. The dividend was payable on to the shareholders of record on . . . The Rights The . Exercise Price Each Right will allow its holder to purchase from the Company one one-hundredth Exercisability The Rights will not be exercisable until 10 days after the public announcement that a person or group has become an “Acquiring Person” by obtaining beneficial ownership of 20% or more of the Company’s outstanding common stock. Certain synthetic interests in securities created by derivative positions – whether or not such interests are considered to be ownership of the underlying common stock or are reportable for purposes of Regulation 13D of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) – are treated as beneficial ownership of the number of shares of the Company’s common stock equivalent to the economic exposure created by the derivative . The date when the Rights become exercisable is the “Distribution Date.” Until the Distribution Date, the common stock certificates will also evidence the Rights, and any transfer of shares of common stock will constitute a transfer of Rights. After that date, the Rights will separate from the common stock and will be evidenced by book-entry credits or by Rights certificates that the Company will mail to all eligible holders of common stock. Any Rights held by an Acquiring Person will be void and may not be exercised. At July 30, 2021, none of the Rights were exercisable. Consequences of a Person or Group Becoming an Acquiring Person ● Flip in. ● Flip Over ● Notional Shares Preferred Share Provisions Each one one-hundredth ● will not be redeemable; ● will entitle holders to quarterly dividend payments of $0.01 per share, or an amount equal to the dividend paid on one share of common stock, whichever is greater; ● will entitle holders upon liquidation either to receive $1.00 per share or an amount equal to the payment made on one share of common stock, whichever is greater; ● will have the same voting power as one share of common stock; and ● if shares of the Company’s common stock are exchanged via merger, consolidation, or a similar transaction, will entitle holders to a per share payment equal to the payment made on one share of common stock. The value of one one-hundredth Redemption The Board of Directors may redeem the Rights for $0.01 per Right at any time before any person or group becomes an Acquiring Person. If the Board of Directors redeems any Rights, it must redeem all of the Rights. Once the Rights are redeemed, the only right of the holders of Rights will be to receive the redemption price of $0.01 per Right. The redemption price will be adjusted if the Company has a stock split or stock dividends of its common stock. Qualifying Offer Provision The Rights would also not interfere with any all-cash, fully financed tender offer, exchange offer of common stock of the offeror meeting certain terms and conditions further described below, or a combination thereof, in each case for all shares of common stock that remain open for a minimum of 60 business days and subject to a minimum condition of a majority of the outstanding shares and provide for a 20-business day “subsequent offering period” after consummation (such offers are referred to as “qualifying offers”). If an offer includes shares of common stock of the offeror, the Rights would not interfere with such offer if such consideration consists solely of freely-tradeable common stock of a publicly-owned United States corporation; such common stock is listed or admitted to trading on the New York Stock Exchange, Nasdaq Global Select Market or Nasdaq Global Market; the offeror has already received stockholder approval to issue such common stock prior to the commencement of such offer or no such approval is or will be required; the offeror has no other class of voting stock outstanding; no person (including such person’s affiliated and associated persons) beneficially owns twenty percent (20%) or more of the shares of common stock of the offeror then outstanding at the time of commencement of the offer or at any time during the term of the offer; and the offeror meets the registrant eligibility requirements for use of a registration statement on Form S-3 for registering securities under the Securities Act of 1933, as amended, including the filing of all reports required to be filed pursuant to the Exchange Act in a timely manner during the twelve (12) calendar months prior to the date of commencement, and throughout the term, of such offer. In the event the Company receives a qualifying offer and the Board of Directors has not redeemed the Rights prior to the consummation of such offer, the consummation of the qualifying offer will not cause the offeror or its affiliates to become an Acquiring Person, and the Rights will immediately expire upon consummation of the qualifying offer . Exchange After a person or group becomes an Acquiring Person, but before an Acquiring Person owns 50% or more of the Company’s outstanding common stock, the Board of Directors may extinguish the Rights by exchanging one share of common stock or an equivalent security for each Right, other than Rights held by the Acquiring Person. Anti-Dilution Provisions The Board of Directors may adjust the purchase price of the Preferred Shares, the number of Preferred Shares issuable and the number of outstanding Rights to prevent dilution that may occur from a stock dividend, a stock split, a reclassification of the Preferred Shares or common stock. No adjustments to the Exercise Price of less than 1% will be made. Amendments The terms of the Rights Agreement may be amended by the Board of Directors without the consent of the holders of the Rights. After a person or group becomes an Acquiring Person, the Board of Directors may not amend the agreement in a way that adversely affects holders of the Rights. Expiration If . |
Employee Savings Plans
Employee Savings Plans | 12 Months Ended |
Jul. 30, 2021 | |
Employee Savings Plans [Abstract] | |
Employee Savings Plans | 14. Employee Savings Plans The Company sponsors a qualified defined contribution retirement plan twenty-one non-qualified defined contribution retirement plan Contributions under both plans may be invested in various investment funds at the employee’s discretion. Such contributions, including the Company’s matching contributions described below, may not be invested in the Company’s common stock. In 2021, 2020 (prior to the COVID-19 pandemic), and 2019, the Company matched of employee contributions for each participant in the 401(k) Savings Plan up to a total of of the employee’s compensation and matched of employee contributions in the Non-Qualified Savings Plan up to a total of of the employee’s compensation. Employee contributions vest immediately while Company contributions vest annually beginning on the first anniversary of a contribution date and are vested on the fifth anniversary of such contribution date. At the inception of the Non-Qualified Savings Plan, the Company established a Rabbi Trust to fund the plan’s obligations. The market value of the trust assets for the Non-Qualified Savings Plan of $32,527 is included in other assets and the related liability to the participants of $32,527 is included in other long-term obligations in the Consolidated Balance Sheets. Company contributions under both plans are recorded as either labor and other related expenses or general and administrative expenses in the Consolidated Statements of Income. The following table summarizes the Company’s contributions for each plan for each of the three years: 2021 2020 2019 401(k) Savings Plan $ 4,071 $ 3,271 $ 4,553 Non-Qualified Savings Plan 259 239 320 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | 15. Income Taxes The components of the provision for income taxes for each of the three years were as follows: 2021 2020 2019 Current: Federal $ (13,505 ) $ (15,375 ) $ 38,831 State 2,405 (2,115 ) 8,310 Deferred: Federal 57,580 (13,467 ) (1,427 ) State 9,558 2,274 (2,759 ) Total provision for income taxes (income tax benefit) $ 56,038 $ (28,683 ) $ 42,955 A of in 2021, 2020 and 2019 was as follows: 2021 2020 2019 Provision computed at federal statutory income tax rate $ 65,216 $ 17,070 $ 55,935 State and local income taxes, net of federal benefit 10,589 (263 ) 4,248 Loss on unconsolidated subsidiary — (29,913 ) — Federal net operating loss benefit (5,402 ) (1,573 ) — Employer tax credits for FICA taxes paid on employee tip income (12,323 ) (11,489 ) (15,107 ) Other employer tax credits (3,234 ) (3,606 ) (3,537 ) Other-net 1,192 1,091 1,416 Total provision for income taxes (income tax benefit) $ 56,038 $ (28,683 ) $ 42,955 The increase in the Company’s provision for income taxes from 2020 to 2021 is primarily due to the increase in income before income taxes. The decrease in the Company’s provision for income taxes (income tax benefit) from 2020 to 2019 is primarily due to the reduction in income due to the business interruption caused by the COVID-19 pandemic and the corresponding reduction in taxable income, partially offset by changes due to the Tax Cuts and Jobs Act. Significant components of the Company’s net deferred tax liability consisted of the following at: July 30, 2021 July 31, 2020 Deferred tax assets: Compensation and employee benefits $ 12,089 $ 6,559 Accrued liabilities 14,145 9,587 Operating lease liabilities 199,029 168,395 Insurance reserves 7,141 6,772 Inventory 2,968 3,104 Deferred tax credits and carryforwards 16,978 19,419 Deferred loss on equity investment — 35,281 Other 4,507 8,076 Deferred tax assets $ 256,857 $ 257,193 Deferred tax liabilities: Property and equipment $ 99,075 $ 99,452 Inventory 7,161 7,144 Operating lease right-of-use asset 243,553 172,641 Other 5,694 5,674 Deferred tax liabilities 355,483 284,911 Net deferred tax liability $ 98,626 $ 27,718 The Company has a deferred tax asset of $13,012 reflecting federal income tax credit carryforwards that expire in 2042. The Company has state income tax net operating loss carryforwards of $51,304 and has recorded a deferred tax asset of $2,941 reflecting this benefit. These state NOLs generally expire in years beginning 2037 and after. The $ and $ , respectively. Summarized July 30, 2021 July 31, 2020 August 2, 2019 Balance at beginning of year $ 17,835 $ 18,006 $ 18,634 Tax positions related to the current year: Additions 1,596 1,407 2,742 Reductions — — — Tax positions related to the prior year: Additions — 202 203 Reductions (1,045 ) (256 ) (348 ) Settlements (1,786 ) (138 ) (1,784 ) Expiration of statute of limitations (2,123 ) (1,386 ) (1,441 ) Balance at end of year $ 14,477 $ 17,835 $ 18,006 If : 2021 2020 2019 Uncertain tax positions $ 11,437 $ 14,090 $ 14,225 The Company had $ , $ , and $ . The $ , $ and $ . In $ to $ . |
Net Income (Loss) Per Share and
Net Income (Loss) Per Share and Weighted Average Shares | 12 Months Ended |
Jul. 30, 2021 | |
Net Income (Loss) Per Share and Weighted Average Shares [Abstract] | |
Net Income (Loss) Per Share and Weighted Average Shares | 16. Net Income (Loss) Per Share and Weighted Average Shares The following table reconciles the components of diluted earnings per share computations: 2021 2020 2019 Net income (loss) per share numerator $ 254,513 $ (32,475 ) $ 223,401 Net income (loss) per share denominator: Basic weighted average shares outstanding 23,692,063 23,865,367 24,037,272 Add potential dilution: Nonvested stock awards and units 75,327 — 59,124 Diluted weighted average shares outstanding 23,767,390 23,865,367 24,096,396 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 30, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies The Company and its subsidiaries are party to various legal and regulatory proceedings and claims incidental to their business in the ordinary course. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect the Company’s consolidated results of operations or financial position. The Company maintains insurance coverage for various aspects of its business and operations. The Company has elected, however, to retain all or a portion of losses that occur through the use of various deductibles, limits and retentions under its insurance programs. This situation may subject the Company to some future liability for which it is only partially insured, or completely uninsured. The Company intends to mitigate any such future liability by continuing to exercise prudent business judgment in negotiating the terms and conditions of its contracts. See Note 2 for a further discussion of insurance and insurance reserves. Related to its insurance coverage, the Company is contingently liable pursuant to standby letters of credit as credit guarantees to certain insurers. As of July 30, 2021, the Company had $31,896 of standby letters of credit related to securing reserved claims under workers’ compensation insurance and the July 29, 2020 and August 4, 2020 sale and leaseback transactions. All standby letters of credit are renewable annually and reduce the Company’s borrowing availability under its Revolving Credit facility (see Note 7). During 2020, the Company received notice regarding non-performance by the primary obligor under lease arrangements for two properties occupied by a third party . At July 30, 2021 and July 31, 2020, the Company has recorded a provision of $ in the Consolidated Balance Sheet for amounts to be paid as of result of non-performance by the primary obligor. The Company enters into certain indemnification agreements in favor of third parties in the ordinary course of business. The Company believes that the probability of incurring an actual liability under other indemnification agreements is sufficiently remote so that no liability has been recorded in the Consolidated Balance Sheet. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jul. 30, 2021 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data (Unaudited) | 18. Quarterly Financial Data (Unaudited) Quarterly financial data for 2021 and 2020 are summarized as follows: 1 st (a) (c) 2 nd (a) 3 rd (a) (b) 4 th (a)(c) 2021 Total revenue $ 646,454 $ 677,169 $ 713,416 $ 784,405 Income before income taxes 226,391 3,580 42,876 37,704 Net income 170,680 14,000 33,470 36,363 Net income per share – basic 7.20 0.59 1.41 1.54 Net income per share – diluted 7.18 0.59 1.41 1.53 2020 Total revenue $ 749,040 $ 846,143 $ 432,544 $ 495,065 Income (loss) before income taxes 59,793 75,630 (84,274 ) 30,135 Net income (loss) 43,223 61,168 (161,932 ) 25,066 Net income (loss) per share – basic 1.80 2.55 (6.81 ) 1.06 Net income (loss) per share – diluted 1.79 2.55 (6.81 ) 1.05 (a) Beginning in the third quarter of 2020 and continuing throughout fiscal year 2021, the Company’s operating results were adversely affected by the impact of the COVID-19 pandemic. (b) In the third quarter of 2020, the Company recorded a loss of $132,878, which represented its equity investment in PBS HC and its receivable related to the principal and accumulated interest amounts on PBS HC promissory notes. See Note 3 for further information regarding the Company’s investment in PBS HC. (c) In the fourth quarter of 2020, the Company completed a sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $69,954. In the first quarter of 2021, the Company completed an additional sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $217,722. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
GAAP | GAAP – The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). |
Fiscal year | Fiscal year – . |
Principles of consolidation | Principles of consolidation – The Consolidated Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All significant intercompany transactions and balances have been eliminated. |
Cash and cash equivalents | Cash and cash equivalents – The Company’s policy is to consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts receivable | Accounts receivable – Accounts receivable represent their estimated net realizable value. Accounts receivable are written off when they are deemed uncollectible. |
Inventories | Inventories – Cost of restaurant inventory is determined by the first-in, first-out (“FIFO”) method. Retail inventories are valued using the retail inventory method (“RIM”) except at the retail distribution center which are valued using moving average cost. Approximately 70% of retail inventories are valued using RIM. Retail inventories valued using RIM are stated at the lower of cost or market. Cost of restaurant inventory and retail inventory valued using moving average cost are stated at the lower of cost and net realizable value. See Note 6 for additional information regarding the components of inventory. Valuation provisions are included for retail inventory obsolescence, retail inventory shrinkage, returns and amortization of certain items. The estimate of retail inventory shrinkage is adjusted upon physical inventory counts. Annual physical inventory counts are conducted based upon a cyclical inventory schedule. An estimate of shrinkage is recorded for the time period between physical inventory counts by using a two-year average of the physical inventories’ results on a store-by-store basis. |
Property and equipment | Property and equipment – Property and equipment are stated at cost. For financial reporting purposes, depreciation and amortization on these assets are computed by use of the straight-line and double-declining balance methods over the estimated useful lives of the respective assets, as follows: Years Buildings and improvements 30-45 Restaurant and other equipment 2-10 Leasehold improvements 1-35 Accelerated depreciation methods are generally used for income tax purposes. Total depreciation expense and depreciation expense related to store operations for each of the three years are as follows: 2021 2020 2019 Total depreciation expense $ 107,090 $ 117,259 $ 107,294 Depreciation expense related to store operations* 100,054 109,362 100,366 *Depreciation expense related to store operations is included in other store operating expenses in the Consolidated Statements of Income. Gain or loss is recognized upon disposal of property and equipment. The asset and related accumulated depreciation and amortization amounts are removed from the accounts. Maintenance and repairs, including the replacement of minor items, are charged to expense and major additions to property and equipment are capitalized. |
Impairment of long-lived assets | Impairment of long-lived assets – The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying value of the asset to the undiscounted future cash flows expected to be generated by the asset. If the total expected future cash flows are less than the carrying value of the asset, the carrying value is written down, for an asset to be held and used, to the estimated fair value or, for an asset to be disposed of, to the fair value, net of estimated costs of disposal. Any loss resulting from impairment is recognized by a charge to income. |
Goodwill and other intangible assets | Goodwill and other intangible assets – The Company accounts for all transactions that represent business combinations using the acquisition method of accounting, where the identifiable assets acquired and the liabilities assumed are recognized and measured at their fair values on the date the Company obtains control in the acquiree. Such fair values that are not finalized for reporting periods following the acquisition date are estimated and recorded as estimated amounts. Adjustments to these estimated amounts during the measurement period (defined as the date through which all information required to identify and measure the consideration transferred, the assets acquired and the liabilities assumed has been obtained, limited to one year from the acquisition date) are recorded when identified. Goodwill is determined as the excess of the fair value of the consideration conveyed in the acquisition over the fair value of the net assets acquired. Goodwill and other intangibles will be evaluated for impairment annually on June 1 and when an event occurs or circumstances change that, more likely than not, reduce the fair value of the reporting unit below its carrying value. At July 30, 2021 and July 31, 2020, the Company does not have any reporting units that are at risk of failing step one of the impairment test. |
Convertible Senior Notes | Convertible Senior Notes – In June 2021, the Company completed a $300,000 principal aggregate amount private offering of 0.625% convertible Senior Notes due in 2026 (the “Notes”). In accordance with accounting guidance on embedded conversion features indexed to and settled in equity, the Company valued and bifurcated the conversion option associated with the Notes from the respective host debt instrument. The carrying amount of the equity is recorded as a debt discount and represents the difference between the proceeds from the issuance of the Notes and the fair value of the liability component of the Notes. The significant assumptions used in the fair value of the liability component of the Notes were risk-free rate, discount rate based on the Company’s implied credit spread and term of the Notes, expected volatility of the Company’s stock price and dividend yield. The resulting debt discount on the Notes is amortized to interest expense using the effective interest method over the contractual term of the Notes. In addition, the debt issuance costs related to the issuance of the Notes were allocated between the liability and equity components based on their relative values. Debt issuance costs attributable to the liability component were recorded as a contra-liability and are presented net against the Notes balance on the Company’s consolidated balance sheets. These costs are amortized to interest expense using the effective interest method over the term of the Notes. |
Derivative instruments and hedging activities | Derivative instruments and hedging activities – For each of the Company’s interest rate swaps, the Company agreed to exchange with a counterparty the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount. The interest rates on the portion of the Company’s outstanding debt covered by its interest rate swaps were fixed at the rates plus the Company’s credit spread. All of the Company’s interest rate swaps were accounted for as cash flow hedges. For derivative instruments that were designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument was reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged transaction affects earnings and was presented in the same statement of income (loss) line item as the earnings effect of the hedged item. Gains and losses on the derivative instrument representing hedge components excluded from the assessment of effectiveness, if any, will be recognized currently in earnings in the same statement of income (loss) line item as the earnings effect of the hedged item. The Company did not elect to reclassify income tax effects resulting from the Tax Cuts and Jobs Act to retained earnings; income tax effects are released on an individual basis to income tax expense (benefit). Companies may elect whether or not to offset related assets and liabilities and report the net amount on their financial statements if the right of setoff exists. Under a master netting agreement, the Company has the legal right to offset the amounts owed to the Company against amounts owed by the Company under a derivative instrument that exists between the Company and a counterparty. When the Company is engaged in more than one outstanding derivative transaction with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, its credit risk exposure is based on the net exposure under the master netting agreement. If, on a net basis, the Company owes the counterparty, the Company regards its credit exposure to the counterparty as being zero. The Company does not hold or use derivative instruments for trading purposes. The Company also does not have any derivatives not designated as hedging instruments and has not designated any non-derivatives as hedging instruments. See Note 8 for additional information on the Company’s derivative and hedging activities. |
Segment reporting | Segment reporting – Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Using these criteria, the Company manages its business on the basis of one reportable operating segment (see Note 10 for additional information regarding segment reporting). |
Unredeemed gift cards and certificates | Unredeemed gift cards and certificates – Unredeemed gift cards and certificates represent a liability of the Company related to unearned income and are recorded at their expected redemption value. No revenue is recognized in connection with the point-of-sale transaction when gift cards or gift certificates are sold. For those states that exempt gift cards and certificates from their escheat laws, the Company makes estimates of the ultimate unredeemed (“breakage”) gift cards and certificates in the period of the original sale and amortizes this breakage over the redemption period that other gift cards and certificates historically have been redeemed by reducing its liability and recording revenue accordingly. For those states that do not exempt gift cards and certificates from their escheat laws, the Company records breakage in the period that gift cards and certificates are remitted to the state and reduces its liability accordingly. Any amounts remitted to states under escheat or similar laws reduce the Company’s deferred revenue liability and have no effect on revenue or expense while any amounts that the Company is permitted to retain are recorded as revenue. See “Revenue recognition” section in this Note for further information regarding breakage. |
Revenue recognition | Revenue recognition – Revenue consists primarily of sales from restaurant and retail operations. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest, retail customer or other customer. The Company recognizes revenues from restaurant sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide food and beverages is satisfied. The Company recognizes revenues from retail sales when payment is tendered at the point of sale, as the Company’s performance obligation to provide merchandise is satisfied. Ecommerce sales, including shipping revenue, are recorded upon delivery to the customer. Additionally, the Company provides for estimated returns based on return history and sales levels. The Company’s policy is to present sales in the Consolidated Statements of Income on a net presentation basis after deducting sales tax. Included in restaurant and retail revenue is gift card breakage. Customer purchases of gift cards, to be utilized at the Company's stores, are not recognized as sales until the card is redeemed and the customer purchases food and/or merchandise. Gift cards do not carry an expiration date; therefore, customers can redeem their gift cards indefinitely. A certain number of gift cards will not be fully redeemed. Management estimates unredeemed balances and recognizes gift card breakage revenue for these amounts in the Company's Consolidated Statements of Income over the expected redemption period. Gift card breakage is recognized when the likelihood of a gift card being redeemed by the customer is remote and the Company determines that there is not a legal obligation to remit the unredeemed gift card balance to the relevant jurisdiction. The determination of the gift card breakage rate is based upon the Company’s specific historical redemption patterns. The Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption. For 2021, 2020 and 2019, gift card breakage was $6,349, $6,288, and $6,814, respectively. Revenue recognized in the Consolidated Statements of Income for 2021, 2020 and 2019, respectively, for the redemption of gift cards which were included in the deferred revenue balance at the beginning of the fiscal year was $42,266, $36,756, and $42,292, respectively. Deferred revenue related to the Company’s gift cards was $93,098 and $94,754, respectively, at July 30, 2021 and July 31, 2020. |
Insurance | Insurance – The Company self-insures a significant portion of its workers’ compensation and general liability programs. The Company purchases insurance for individual workers’ compensation claims that exceed $250, $750 or $1,000 depending on the state in which the claim originates. The Company purchases insurance for individual general liability claims that exceed $500. The Company records a reserve for workers’ compensation and general liability for all unresolved claims and for an estimate of incurred but not reported claims (“IBNR”). These reserves and estimates of IBNR claims are based upon a full scope actuarial study which is performed annually at the end of the Company’s third quarter and is adjusted by the actuarially determined losses and actual claims payments for the fourth quarter. Additionally, the Company performs limited scope actuarial studies on a quarterly basis to verify and/or modify the Company’s reserves. The reserves and losses in the actuarial study represent a range of possible outcomes within which no given estimate is more likely than any other estimate. As such, the Company records the losses at the lower half of that range and discounts them to present value using a risk-free interest rate based on projected timing of payments. The Company also monitors actual claims development, including incurrence or settlement of individual large claims during the interim periods between actuarial studies as another means of estimating the adequacy of its reserves. The Company’s group health plans combine the use of self-insured and fully-insured programs. Benefits for any individual (employee or dependents) in the self-insured program are limited. The Company records a liability for the self-insured portion of its group health program for all unpaid claims based upon a loss development analysis derived from actual group health claims payment experience. The Company also records a liability for unpaid prescription drug claims based on historical experience. |
Store pre-opening costs | Store pre-opening costs – Start-up costs of a new store are expensed when incurred. |
Leases | Leases – The Company has ground leases for its leased stores and office space leases that are recorded as operating leases under various non-cancellable operating leases. The Company also leases its advertising billboards, vehicle fleets and certain equipment under various non-cancellable operating leases. To determine whether a contract is or contains a lease, the Company determines at contract inception whether it contains the right to control the use of an identified asset for a period of time in exchange for consideration. If the contract has the right to obtain substantially all of the economic benefit from use of the identified asset and the right to direct the use of the identified asset, the Company recognizes a right-of-use asset and lease liability. The Company’s leases all have varying terms and expire at various dates through 2055. Restaurant leases typically have base terms of ten years with four to five optional renewal periods of five years each. The Company uses a lease life that generally begins on the commencement date, including the rent holiday periods, and generally extends through certain renewal periods that can be exercised at the Company’s option. During rent holiday periods, which include the pre-opening period during construction, the Company has possession of and access to the property, but is not obligated to, and normally does not, make rent payments. The Company has included lease renewal options in the lease term for calculations of the right-of-use asset and liability for which at the commencement of the lease it is reasonably certain that the Company will exercise those renewal options. Additionally, some of the leases have contingent rent provisions and others require adjustments for inflation or index. Contingent rent is determined as a percentage of gross sales in excess of specified levels. The Company records a contingent rent liability and corresponding rent expense when it is probable sales have been achieved in amounts in excess of the specified levels. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants . |
Advertising | Advertising – The Company expenses the costs of producing advertising the first time the advertising takes place. Other advertising costs are expensed as incurred. Advertising expense for each of the three years was as follows: 2021 2020 2019 Advertising expense $ 83,630 $ 79,155 $ 81,855 |
Share-based compensation | Share-based compensation – The Company’s share-based compensation consists of nonvested stock awards and units. Share-based compensation is recorded in general and administrative expenses in the Consolidated Statements of Income (Loss). Share-based compensation expense is recognized based on the grant date fair value and the achievement of performance conditions for certain awards. The Company recognizes share-based compensation expense on a straight-line basis over the requisite service period, which is generally the award’s vesting period, or to the date on which retirement eligibility is achieved, if shorter. Certain nonvested stock awards and units contain performance conditions. Compensation expense for performance-based awards is recognized when it is probable that the performance criteria will be met. If any performance goals are not met, no compensation expense is ultimately recognized and, to the extent previously recognized, compensation expense is reversed. If a share-based compensation award is modified after the grant date, incremental compensation expense is recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. Incremental compensation expense for vested awards is recognized immediately. For unvested awards, the sum of the incremental compensation expense and the remaining unrecognized compensation expense for the original award on the modification date is recognized over the modified service period. Additionally, the Company’s policy is to issue shares of common stock to satisfy exercises of share-based compensation awards. |
Income taxes | Income taxes – The Company’s provision for income taxes includes employer tax credits for FICA taxes paid on employee tip income and other employer tax credits are accounted for by the flow-through method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company recognizes (or derecognizes) a tax position 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 (or not 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 ultimate settlement. The Company recognizes, net of tax, interest and estimated penalties related to uncertain tax positions in its provision for income taxes. See Note 15 for additional information regarding income taxes. |
Comprehensive income (loss) | Comprehensive income (loss) – Comprehensive income (loss) includes net income (loss) and the effective unrealized portion of the changes in the fair value of the Company’s interest rate swaps. |
Net income (loss) per share | Net income (loss) per share – . |
Use of estimates | Use of estimates – Management of the Company has made certain estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting periods to prepare these Consolidated Financial Statements in conformity with GAAP. Management believes that such estimates have been based on reasonable and supportable assumptions and that the resulting estimates are reasonable for use in the preparation of the Consolidated Financial Statements. Actual results, however, could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Goodwill Impairment In January the Financial Accounting Standards Board (“FASB”) issued accounting guidance related to the subsequent measurement of goodwill. Under this new guidance, an entity will perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. This guidance was effective for public business entities for fiscal years beginning after December and interim periods within those fiscal years. Recent Accounting Pronouncements Not Yet Adopted Accounting for Income Taxes In December 2019, the FASB issued accounting guidance in order to simplify the accounting for income taxes. This new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This accounting guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. In general, entities will apply the new guidance on a prospective basis, except for certain items such as the guidance on franchise taxes that are partially based on income. The guidance on franchise taxes that are partially based on income will be applied either retrospectively for all periods presented or using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company does not expect that the adoption of this accounting guidance in the first quarter of 2022 will have a significant impact on the Company’s consolidated financial position or results of operations. Accounting for Convertible Instruments In August 2020, the FASB issued accounting guidance to simplify the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity’s own equity. For convertible instruments, the Board decided to reduce the number of accounting models for convertible debt instruments and convertible preferred stock. By removing the separation model, a convertible debt instrument will be reported as a single liability instrument with no separate accounting for embedded conversion features. This new standard also removes certain settlement conditions that are required for contracts to qualify for equity classification and simplifies the diluted earnings per share calculations by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in diluted earnings per share calculations. This guidance is effective for public business entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. This guidance should be applied through either a modified retrospective method of transition or a fully retrospective method of transition. The Company elected to early adopt this guidance in the first quarter of 2022 using the modified retrospective method. The impact of this adoption in the first quarter of 2022 resulted in the increase in long-term debt and decrease in equity on the Consolidated Balance Sheet by the amount of the equity component of the convertible notes recognized in equity. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 12 Months Ended |
Jul. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair value measurements | Fair value for certain of the Company’s assets and liabilities is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, a three level hierarchy for inputs is used. These levels are: ● Quoted Prices in Active Markets for Identical Assets (“Level 1”) – quoted prices (unadjusted) for an identical asset or liability in an active market. ● Significant Other Observable Inputs (“Level 2”) – quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. ● Significant Unobservable Inputs (“Level 3”) – unobservable and significant to the fair value measurement of the asset or liability. The Company’s money market fund investments are measured at fair value using quoted market prices. The fair values of the Company’s interest rate swap liabilities were determined based on the present value of expected future cash flows. Since the Company’s interest rate swap values were based on the LIBOR forward curve, which is observable at commonly quoted intervals for the full terms of the swaps, it is considered a Level 2 input. Nonperformance risk was reflected in determining the fair value of the interest rate swaps by using the Company’s credit spread less the risk-free interest rate, both of which are observable at commonly quoted intervals for the terms of the swaps. Thus, the adjustment for nonperformance risk was also considered a Level 2 input. The Company’s deferred compensation plan assets are measured based on net asset value per share as a practical expedient to estimate fair value . The fair values of accounts receivable and accounts payable at July 30, 2021 and July 31, 2020, approximate their carrying amounts because of their short duration. The fair value of the Company’s variable rate debt, based on quoted market prices, which are considered Level 1 inputs, approximates its carrying amounts at July 30, 2021 and July 31, 2020 . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Estimated Useful Lives of Assets | Property and equipment – Property and equipment are stated at cost. For financial reporting purposes, depreciation and amortization on these assets are computed by use of the straight-line and double-declining balance methods over the estimated useful lives of the respective assets, as follows: Years Buildings and improvements 30-45 Restaurant and other equipment 2-10 Leasehold improvements 1-35 |
Total Depreciation Expense and Depreciation Expense Related to Store Operations | Total depreciation expense and depreciation expense related to store operations for each of the three years are as follows: 2021 2020 2019 Total depreciation expense $ 107,090 $ 117,259 $ 107,294 Depreciation expense related to store operations* 100,054 109,362 100,366 *Depreciation expense related to store operations is included in other store operating expenses in the Consolidated Statements of Income. |
Advertising Expense | Advertising expense for each of the three years was as follows: 2021 2020 2019 Advertising expense $ 83,630 $ 79,155 $ 81,855 |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Acquisition of Business [Abstract] | |
Considerations Paid and Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for MSBC and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: Fair value of total consideration transferred $ 36,000 Recognized amounts of identifiable assets acquired and liabilities assumed Financial assets $ 96 Property and equipment 13,580 Operating lease right-of-use assets, net 14,454 Indefinite-lived intangible asset* 20,960 Other current and noncurrent assets 394 Financial liabilities (1,876 ) Operating lease liabilities (15,973 ) Other noncurrent liabilities (325 ) Total identifiable net assets 31,310 Goodwill $ 4,690 *Consists entirely of MSBC’s Tradename |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis at July 30, 2021 were as follows: Level 1 Level 2 Level 3 Total Fair Value Cash equivalents* $ 35,001 $ — $ — $ 35,001 Total $ 35,001 $ — $ — $ 35,001 Deferred compensation plan assets** measured at net asset value aa aa aa 32,527 Total assets at fair value aa aa aa $ 67,528 aa aa aa Interest rate swap liability (see Note 8) $ — $ — $ — $ — Total liabilities at fair value $ — $ — $ — $ — The : Level 1 Level 2 Level 3 Total Fair Value Cash equivalents* $ 132,001 $ — $ — $ 132,001 Total $ 132,001 $ — $ — $ 132,001 Deferred compensation plan assets** measured at net asset value aaa aaa aaa 28,530 Total assets at fair value aa aa aaa $ 160,531 aa aa aaa Interest rate swap liability (see Note 8) $ — $ 27,746 $ — $ 27,746 Total liabilities at fair value $ — $ 27,746 $ — $ 27,746 *Consists of money market fund investments. **Represents plan assets invested in mutual funds established under a Rabbi Trust for the Company’s non-qualified savings plan and is included in the Consolidated Balance Sheets as other assets (see Note 14). |
Assets Measured at Fair Value on a Nonrecurring Basis | The Company’s assets measured at fair value on a nonrecurring basis as of October were as follows: Level Level Level Total Fair Value Property and equipment $ — $ — $ 13,580 $ 13,580 Tradename* — — 20,960 20,960 Goodwill — — 4,690 4,690 Total $ — $ — $ 39,230 $ 39,230 *Included in the Consolidated Balance Sheets as intangible assets. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Inventories [Abstract] | |
Inventories | Inventories were comprised of the following at: July 30, 2021 July 31, 2020 Retail $ 104,143 $ 105,502 Restaurant 21,583 19,636 Supplies 12,594 13,953 Total $ 138,320 $ 139,091 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Debt [Abstract] | |
Outstanding Principal Amount and Carrying Value of the Notes | The following table includes the outstanding principal amount and carrying value of the Notes as of the period indicated: July 30, 2021 Liability component Principal $ 300,000 Less: Debt discount (1) 50,767 Less: Debt issuance costs 7,254 Net carrying amount 241,979 (1) Debt discount and issuance costs are amortized to interest expense using the effective interest method over the expected life of the Notes. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Estimated Fair Value of Derivative Instruments | The estimated fair values of the Company’s derivative instruments were as follows: (See Note 5) Balance Sheet Location July 30, 2021 July 31, 2020* Interest rate swaps Other current liabilities $ — $ 3,886 Interest rate swaps Long-term interest rate swap liability — 23,860 Total liabilities $ — $ 27,746 *These interest rate swap liabilities were recorded gross at July 31, 2020 since there were no offsetting assets under the Company’s master netting agreements. |
Pre-tax Effects of Derivative Instruments on AOCL and Income | The following table summarizes the pre-tax effects of the Company’s derivative instruments on AOCL for each of the three years: Amount of Income (Loss) Recognized in AOCL on Derivatives (Effective Portion) 2021 2020 2019 Cash flow hedges: Interest rate swaps $ 27,110 $ (17,740 ) $ (15,466 ) The following table summarizes the pre-tax effects of the Company’s derivative instruments on income for each of the three years: Location of (Income) Loss Reclassified from AOCL into Income (Effective Portion) Amount of (Income) Loss Reclassified from AOCL into Income (Effective Portion) 2021 2020 2019 Cash flow hedges: Interest rate swaps Interest expense $ 25,420 $ 1,165 $ (206 ) |
Changes in AOCL, Net of Tax, Related to Interest Rate Swaps | The following table summarizes the changes in AOCL, net of tax, related to the Company’s interest rate swaps for the years ended July 30, 2021, July 31, 2020 and August 2, 2019: July 31, 2021 July 30, 2020 August 2, 2019 Beginning AOCL balance $ (20,346 ) $ (6,913 ) $ 4,685 Other comprehensive income (loss) before reclassifications 39,424 (12,559 ) (11,752 ) Amounts reclassified from AOCL into earnings (19,078 ) (874 ) 154 Other comprehensive income (loss), net of tax 20,346 (13,433 ) (11,598 ) Ending AOCL balance $ — $ (20,346 ) $ (6,913 ) |
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps | The following table summarizes the amounts reclassified out of AOCL related to the Company’s interest rate swaps for the years ended July 30, 2021, July 31, 2020 and August 2, 2019: Affected Line Item in the Consolidated Details about AOCL July 30, 2021 July 31, 2020 August 2, 2019 Statement of Income Loss on cash flow hedges: Interest rate swaps $ (25,420 ) $ (1,165 ) $ 206 Interest expense Tax benefit 6,342 291 (52 ) Provision for income taxes $ (19,078 ) $ (874 ) $ 154 Net of tax |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Segment Information [Abstract] | |
Composition of Total Revenue | Total revenue was comprised of the following at: 2021 2020 2019 Restaurant $ 2,227,246 $ 2,032,030 $ 2,482,377 Retail 594,198 490,762 589,574 Total revenue $ 2,821,444 $ 2,522,792 $ 3,071,951 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Cost for Operating Leases | The following table summarizes the components of lease cost for operating leases for the years ended July 30, 2021: Year Ended July 30, 2021 Year Ended July 31, 2020 Operating lease cost $ 106,266 $ 82,963 Short term lease cost 2,363 2,896 Variable lease cost 2,248 1,719 Total lease cost $ 110,877 $ 87,578 |
Rent Expense under Operating Leases | Prior to the adoption of the new lease accounting guidance in 2020, rent expense under operating leases, including the sale-leaseback transactions discussed below, for 2019 was: Year Minimum Contingent Total 2019 $ 78,044 $ 280 $ 78,324 |
Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases | The following table summarizes supplemental cash flow information and non-cash activity related to the Company’s operating leases for the year ended July 30, 2021 : Year Ended July 30, 2021 Year Ended July 31 2020 Operating cash flow information: Gain on sale and leaseback transactions $ 217,722 $ 69,954 Cash paid for amounts included in the measurement of lease liabilities 89,264 80,265 Noncash information: Right-of-use assets obtained in exchange for new operating lease liabilities 316,563 267,266 Lease modifications assets 35,059 29,793 Lease modifications removing right-of-use assets (544 ) (19,939 ) |
Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating Leases | The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for operating leases as of July 30, 2021 and July 31, 2020: July 30 2021 July 31 2020 Weighted-average remaining lease term 18.17 19.05 Weighted-average discount rate 4.84 % 4.50 % |
Maturities of Undiscounted Cash Flows Reconciled to Total Lease Liability | The following table summarizes the maturities of undiscounted cash flows reconciled to the total operating lease liability as of July 30, 2021: Year Total 2022 $ 86,992 2023 78,471 2024 63,908 2025 61,182 2026 61,548 Thereafter 884,987 Total future minimum lease payments 1,237,088 Less imputed remaining interest (438,332 ) Total present value of operating lease liabilities $ 798,756 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Share-Based Compensation [Abstract] | |
LTPP Performance and Vesting Period | The following table summarizes the performance periods and vesting periods for the Company’s nonvested stock awards under its long-term performance plans at July 30, 2021: Long-Term Performance Plan (“LTPP”) Performance Period Vesting Period (in Years) 2021 LTPP 2021 – 2022 2 or 3 2020 LTPP 2020 – 2021 2 or 3 |
Outstanding Awards under LTPP | The following table summarizes the shares that have been accrued under the 2021 LTPP and 2020 LTPP at July 30, 2021: 2021 LTPP 15,594 2020 LTPP 19,824 |
Nonvested Stock Activity | A summary of the Company’s nonvested stock activity as of July 30, 2021, and changes during 2021 are presented in the following table: Nonvested Stock Shares Weighted-Average Grant Date Fair Value Unvested at July 31, 2020 59,755 $ 152.34 Granted 59,096 122.44 Vested (21,998 ) 145.48 Forfeited (7,530 ) 133.86 Unvested at July 30, 2021 89,323 $ 135.81 |
Aggregate Fair Value of Non Vested Stock | The following table summarizes the total fair value of nonvested stock that vested for each of the three years: 2021 2020 2019 Total fair value of nonvested stock $ 3,200 $ 3,084 $ 5,119 |
Shares Accrued Under TSR RSUs Awards | The following table summarizes the shares that have been accrued for rTSR RSUs awards under the 2020 and 2019 long-term incentive plans at July 30, 2021: Shares 2020 rTSR RSUs 4,120 2019 rTSR RSUs 8,591 |
Components of Share-based Compensation Expense | The following table highlights the components of share-based compensation expense for each of the three years: 2021 2020 2019 Total compensation expense $ 8,729 $ 6,386 $ 8,181 |
Unrecognized Compensation Cost, Nonvested Awards | The following table highlights the total unrecognized compensation expense related to the outstanding nonvested stock awards and nonvested stock units and the weighted-average periods over which the expense is expected to be recognized as of July 30, 2021: Nonvested Stock Awards Nonvested Stock Units Total unrecognized compensation $ 5,335 $ 476 Weighted-average period in years 1.78 1.00 |
Employee Savings Plans (Tables)
Employee Savings Plans (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Employee Savings Plans [Abstract] | |
Contributions for Employee Savings Plans | The following table summarizes the Company’s contributions for each plan for each of the three years: 2021 2020 2019 401(k) Savings Plan $ 4,071 $ 3,271 $ 4,553 Non-Qualified Savings Plan 259 239 320 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Income Taxes [Abstract] | |
Components of Provision for Income Taxes (Income Tax Benefit) | The components of the provision for income taxes for each of the three years were as follows: 2021 2020 2019 Current: Federal $ (13,505 ) $ (15,375 ) $ 38,831 State 2,405 (2,115 ) 8,310 Deferred: Federal 57,580 (13,467 ) (1,427 ) State 9,558 2,274 (2,759 ) Total provision for income taxes (income tax benefit) $ 56,038 $ (28,683 ) $ 42,955 |
Reconciliation of Provision for Income Taxes (Income Tax Benefit) and Income Taxes Based on Statutory U.S. Federal Rate | A of in 2021, 2020 and 2019 was as follows: 2021 2020 2019 Provision computed at federal statutory income tax rate $ 65,216 $ 17,070 $ 55,935 State and local income taxes, net of federal benefit 10,589 (263 ) 4,248 Loss on unconsolidated subsidiary — (29,913 ) — Federal net operating loss benefit (5,402 ) (1,573 ) — Employer tax credits for FICA taxes paid on employee tip income (12,323 ) (11,489 ) (15,107 ) Other employer tax credits (3,234 ) (3,606 ) (3,537 ) Other-net 1,192 1,091 1,416 Total provision for income taxes (income tax benefit) $ 56,038 $ (28,683 ) $ 42,955 |
Significant Components of Net Deferred Tax Liability | Significant components of the Company’s net deferred tax liability consisted of the following at: July 30, 2021 July 31, 2020 Deferred tax assets: Compensation and employee benefits $ 12,089 $ 6,559 Accrued liabilities 14,145 9,587 Operating lease liabilities 199,029 168,395 Insurance reserves 7,141 6,772 Inventory 2,968 3,104 Deferred tax credits and carryforwards 16,978 19,419 Deferred loss on equity investment — 35,281 Other 4,507 8,076 Deferred tax assets $ 256,857 $ 257,193 Deferred tax liabilities: Property and equipment $ 99,075 $ 99,452 Inventory 7,161 7,144 Operating lease right-of-use asset 243,553 172,641 Other 5,694 5,674 Deferred tax liabilities 355,483 284,911 Net deferred tax liability $ 98,626 $ 27,718 |
Total Gross Liability for Uncertain Tax Positions Exclusive of Interest and Penalties | Summarized July 30, 2021 July 31, 2020 August 2, 2019 Balance at beginning of year $ 17,835 $ 18,006 $ 18,634 Tax positions related to the current year: Additions 1,596 1,407 2,742 Reductions — — — Tax positions related to the prior year: Additions — 202 203 Reductions (1,045 ) (256 ) (348 ) Settlements (1,786 ) (138 ) (1,784 ) Expiration of statute of limitations (2,123 ) (1,386 ) (1,441 ) Balance at end of year $ 14,477 $ 17,835 $ 18,006 |
Uncertain Tax Positions that, if Recognized, Would Affect Effective Tax Rate | 2021 2020 2019 Uncertain tax positions $ 11,437 $ 14,090 $ 14,225 |
Net Income (Loss) Per Share a_2
Net Income (Loss) Per Share and Weighted Average Shares (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Net Income (Loss) Per Share and Weighted Average Shares [Abstract] | |
Reconciliation of Components of Diluted Earnings per Share Computations | The following table reconciles the components of diluted earnings per share computations: 2021 2020 2019 Net income (loss) per share numerator $ 254,513 $ (32,475 ) $ 223,401 Net income (loss) per share denominator: Basic weighted average shares outstanding 23,692,063 23,865,367 24,037,272 Add potential dilution: Nonvested stock awards and units 75,327 — 59,124 Diluted weighted average shares outstanding 23,767,390 23,865,367 24,096,396 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jul. 30, 2021 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data | Quarterly financial data for 2021 and 2020 are summarized as follows: 1 st (a) (c) 2 nd (a) 3 rd (a) (b) 4 th (a)(c) 2021 Total revenue $ 646,454 $ 677,169 $ 713,416 $ 784,405 Income before income taxes 226,391 3,580 42,876 37,704 Net income 170,680 14,000 33,470 36,363 Net income per share – basic 7.20 0.59 1.41 1.54 Net income per share – diluted 7.18 0.59 1.41 1.53 2020 Total revenue $ 749,040 $ 846,143 $ 432,544 $ 495,065 Income (loss) before income taxes 59,793 75,630 (84,274 ) 30,135 Net income (loss) 43,223 61,168 (161,932 ) 25,066 Net income (loss) per share – basic 1.80 2.55 (6.81 ) 1.06 Net income (loss) per share – diluted 1.79 2.55 (6.81 ) 1.05 (a) Beginning in the third quarter of 2020 and continuing throughout fiscal year 2021, the Company’s operating results were adversely affected by the impact of the COVID-19 pandemic. (b) In the third quarter of 2020, the Company recorded a loss of $132,878, which represented its equity investment in PBS HC and its receivable related to the principal and accumulated interest amounts on PBS HC promissory notes. See Note 3 for further information regarding the Company’s investment in PBS HC. (c) In the fourth quarter of 2020, the Company completed a sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $69,954. In the first quarter of 2021, the Company completed an additional sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $217,722. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||||
Jul. 30, 2021USD ($)SegmentPeriod | Jul. 31, 2020USD ($) | Aug. 02, 2019USD ($) | Jun. 18, 2021USD ($) | ||
Inventories [Abstract] | |||||
Percentage of retail inventories valued using the retail inventory method | 70.00% | ||||
Average period of physical inventory used for estimating shrinkage | 2 years | ||||
Property and equipment [Abstract] | |||||
Total depreciation expense | $ 107,090 | $ 117,259 | $ 107,294 | ||
Depreciation expense related to store operations | [1] | 100,054 | 109,362 | 100,366 | |
Derivative Instruments and Hedging Activities [Abstract] | |||||
Credit exposure to the counterparty if the company owes the counterparty | $ 0 | ||||
Segment Reporting [Abstract] | |||||
Number of reportable operating segments | Segment | 1 | ||||
Revenue Recognition [Abstract] | |||||
Gift card breakage | $ 6,349 | 6,288 | 6,814 | ||
Revenue recognized for redemption of gift cards | 42,266 | 36,756 | 42,292 | ||
Deferred revenue related to gift cards | 93,098 | 94,754 | |||
Insurance [Abstract] | |||||
Threshold amount for workers' compensation insurance Level 1 | 250 | 250 | 250 | ||
Threshold amount for workers' compensation insurance Level 2 | 750 | 750 | 750 | ||
Threshold amount for workers' compensation insurance Level 3 | 1,000 | 1,000 | 1,000 | ||
Threshold amount for general liability insurance | $ 500 | ||||
Leases [Abstract] | |||||
Initial lease term | 20 years | ||||
Advertising [Abstract] | |||||
Advertising expense | $ 83,630 | $ 79,155 | $ 81,855 | ||
Maximum [Member] | |||||
Leases [Abstract] | |||||
Lease renewal option | 50 years | ||||
Buildings and Improvements [Member] | Minimum [Member] | |||||
Property and equipment [Abstract] | |||||
Estimated useful life | 30 years | ||||
Buildings and Improvements [Member] | Maximum [Member] | |||||
Property and equipment [Abstract] | |||||
Estimated useful life | 45 years | ||||
Restaurant and Other Equipment [Member] | Minimum [Member] | |||||
Property and equipment [Abstract] | |||||
Estimated useful life | 2 years | ||||
Restaurant and Other Equipment [Member] | Maximum [Member] | |||||
Property and equipment [Abstract] | |||||
Estimated useful life | 10 years | ||||
Leasehold Improvements [Member] | Minimum [Member] | |||||
Property and equipment [Abstract] | |||||
Estimated useful life | 1 year | ||||
Leasehold Improvements [Member] | Maximum [Member] | |||||
Property and equipment [Abstract] | |||||
Estimated useful life | 35 years | ||||
Restaurant Stores [Member] | |||||
Leases [Abstract] | |||||
Initial lease term | 10 years | ||||
Lease renewal option | 5 years | ||||
Restaurant Stores [Member] | Minimum [Member] | |||||
Leases [Abstract] | |||||
Number of optional renewal periods | Period | 4 | ||||
Restaurant Stores [Member] | Maximum [Member] | |||||
Leases [Abstract] | |||||
Number of optional renewal periods | Period | 5 | ||||
0.625% Convertible Senior Notes Due 2026 [Member] | |||||
Convertible Senior Notes [Abstract] | |||||
Principal | $ 300,000 | $ 300,000 | |||
Interest rate | 0.625% | 0.625% | |||
[1] | Depreciation expense related to store operations is included in other store operating expenses in the Consolidated Statements of Income. |
Equity Method Investment (Detai
Equity Method Investment (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | May 01, 2020 | Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | Jul. 18, 2019 |
Equity method investments [Abstract] | ||||||
Loss from unconsolidated subsidiary | $ 0 | $ (142,442) | $ 0 | |||
PBS HC [Member] | ||||||
Equity method investments [Abstract] | ||||||
Percentage of economic ownership interest | 58.60% | |||||
Percentage of voting ownership Interest | 49.70% | |||||
Investment in unconsolidated subsidiary | $ 89,100 | |||||
Loss from unconsolidated subsidiary | $ (132,878) | $ (132,878) | ||||
Brandco [Member] | ||||||
Equity method investments [Abstract] | ||||||
Purchase price of unconsolidated subsidiary | $ 32,000 |
Acquisition of Business (Detail
Acquisition of Business (Details) $ in Thousands | Oct. 10, 2019USD ($) | Oct. 30, 2020USD ($) | Jul. 30, 2021USD ($)LocationState | Jul. 31, 2020USD ($) | |
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | |||||
Goodwill | $ 4,690 | $ 4,690 | |||
Maple Street Biscuit Company [Member] | |||||
Acquisition [Abstract] | |||||
Ownership interest acquired | 100.00% | ||||
Cash paid to sellers | $ 32,000 | $ 1,500 | |||
Cash held for satisfaction of indemnification obligations | 4,000 | ||||
Period of remaining installment payment held as security | 2 years | ||||
Number of business locations converted | Location | 6 | ||||
Number of states in which the entity operates | State | 7 | ||||
Goodwill expected to be deductible for income tax purposes | $ 0 | ||||
Acquisition-related costs | $ 1,269 | ||||
Fair value of total consideration transferred | 36,000 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | |||||
Financial assets | 96 | ||||
Property and equipment | 13,580 | ||||
Operating lease right-of-use assets, net | 14,454 | ||||
Indefinite-lived intangible asset | [1] | 20,960 | |||
Other current and noncurrent assets | 394 | ||||
Financial liabilities | (1,876) | ||||
Operating lease liabilities | (15,973) | ||||
Other noncurrent liabilities | (325) | ||||
Total identifiable net assets | 31,310 | ||||
Goodwill | $ 4,690 | ||||
Maple Street Biscuit Company [Member] | Company-Owned Fast Food Casual Locations [Member] | |||||
Acquisition [Abstract] | |||||
Number of locations opened | Location | 37 | ||||
Maple Street Biscuit Company [Member] | Franchised Fast Food Casual Locations [Member] | |||||
Acquisition [Abstract] | |||||
Number of locations opened | Location | 7 | ||||
[1] | Consists entirely of MSBC’s Tradename |
Fair Value Measurements, Assets
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jul. 30, 2021 | Jul. 31, 2020 | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Abstract] | |||
Cash equivalents | [1] | $ 35,001 | $ 132,001 |
Total | 35,001 | 132,001 | |
Deferred compensation plan assets | [2] | 32,527 | 28,530 |
Total assets at fair value | 67,528 | 160,531 | |
Interest rate swap liability (see Note 8) | 0 | 27,746 | |
Total liabilities at fair value | 0 | 27,746 | |
Level 1 [Member] | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Abstract] | |||
Cash equivalents | [1] | 35,001 | 132,001 |
Total | 35,001 | 132,001 | |
Interest rate swap liability (see Note 8) | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Level 2 [Member] | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Abstract] | |||
Cash equivalents | [1] | 0 | 0 |
Total | 0 | 0 | |
Interest rate swap liability (see Note 8) | 0 | 27,746 | |
Total liabilities at fair value | 0 | 27,746 | |
Level 3 [Member] | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis [Abstract] | |||
Cash equivalents | [1] | 0 | 0 |
Total | 0 | 0 | |
Interest rate swap liability (see Note 8) | 0 | 0 | |
Total liabilities at fair value | $ 0 | $ 0 | |
[1] | Consists of money market fund investments. | ||
[2] | Represents plan assets invested in mutual funds established under a Rabbi Trust for the Company’s non-qualified savings plan and is included in the Consolidated Balance Sheets as other assets (see Note 14). |
Fair Value Measurements, Asse_2
Fair Value Measurements, Assets Measured at Fair Value on a Nonrecurring Basis (Details) $ in Thousands | 12 Months Ended | |||||
Jul. 30, 2021USD ($) | Jul. 31, 2020USD ($) | Aug. 02, 2019USD ($) | Jun. 18, 2021 | Oct. 10, 2019USD ($) | ||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Impairment charge | $ 0 | $ 22,496 | $ 0 | |||
0.625% Convertible Senior Notes Due 2026 [Member] | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Interest rate | 0.625% | 0.625% | ||||
Level 2 [Member] | 0.625% Convertible Senior Notes Due 2026 [Member] | Estimated Fair Value [Member] | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Fair value of notes | $ 249,233 | |||||
Maple Street Biscuit Company [Member] | Nonrecurring [Member] | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Property and equipment | $ 13,580 | |||||
Tradename | [1] | 20,960 | ||||
Goodwill | 4,690 | |||||
Total assets at fair value | 39,230 | |||||
Maple Street Biscuit Company [Member] | Nonrecurring [Member] | Cost Approach [Member] | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Estimated replacement cost per store | $ 500 | |||||
Maple Street Biscuit Company [Member] | Nonrecurring [Member] | Present Value of Estimated Cash Flow [Member] | Royalty Rate [Member] | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Tradename, measurement input | 0.025 | |||||
Maple Street Biscuit Company [Member] | Nonrecurring [Member] | Present Value of Estimated Cash Flow [Member] | Discount Rate [Member] | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Tradename, measurement input | 0.120 | |||||
Maple Street Biscuit Company [Member] | Nonrecurring [Member] | Level 1 [Member] | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Property and equipment | $ 0 | |||||
Tradename | [1] | 0 | ||||
Goodwill | 0 | |||||
Total assets at fair value | 0 | |||||
Maple Street Biscuit Company [Member] | Nonrecurring [Member] | Level 2 [Member] | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Property and equipment | 0 | |||||
Tradename | [1] | 0 | ||||
Goodwill | 0 | |||||
Total assets at fair value | 0 | |||||
Maple Street Biscuit Company [Member] | Nonrecurring [Member] | Level 3 [Member] | ||||||
Fair Value Assets Measured on Nonrecurring Basis [Abstract] | ||||||
Property and equipment | 13,580 | |||||
Tradename | [1] | 20,960 | ||||
Goodwill | 4,690 | |||||
Total assets at fair value | $ 39,230 | |||||
[1] | Included in the Consolidated Balance Sheets as intangible assets. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 30, 2021 | Jul. 31, 2020 |
Inventories [Abstract] | ||
Retail | $ 104,143 | $ 105,502 |
Restaurant | 21,583 | 19,636 |
Supplies | 12,594 | 13,953 |
Total | $ 138,320 | $ 139,091 |
Debt, Revolving Credit Facility
Debt, Revolving Credit Facility (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2020USD ($) | Jul. 30, 2021USD ($) | Sep. 05, 2018USD ($) | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 750,000 | ||
Amount drawn from debt instrument | $ 39,395 | ||
Debt instrument, term of option | 1 year | ||
2019 Revolving Credit Facility [Member] | |||
Line of Credit Facility [Abstract] | |||
Line of credit facility, term | 5 years | ||
Maximum borrowing capacity | 950,000 | ||
Option to increase revolving credit facility | $ 300,000 | ||
Outstanding borrowings | $ 949,395 | $ 85,000 | |
Amount of standby letters of credit | 31,896 | ||
Remaining borrowing capacity | $ 683,104 | ||
Weighted average interest rates | 3.18% | ||
Liquidity requirements | $ 100,000 | ||
Dividends threshold | $ 100,000 | ||
Leverage ratio, maximum | 3 | ||
Multiplier used in calculating aggregate amount of cash dividends on shares of common stock in any fiscal year | 4 | ||
2019 Revolving Credit Facility [Member] | Covid-19 [Member] | |||
Line of Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 800,000 | ||
2019 Revolving Credit Facility, Swapped Portion [Member] | |||
Line of Credit Facility [Abstract] | |||
Outstanding borrowings | $ 400,000 | ||
Weighted average interest rates | 5.36% | ||
2019 Revolving Credit Facility, Remaining Portion [Member] | |||
Line of Credit Facility [Abstract] | |||
Outstanding borrowings | $ 549,395 | ||
Weighted average interest rates | 3.79% |
Debt, Convertible Senior Notes
Debt, Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands | Aug. 06, 2021 | Jul. 15, 2021USD ($)shares | Jun. 18, 2021USD ($)$ / sharesshares | Jul. 30, 2021USD ($)d | Jul. 31, 2020USD ($) | Aug. 02, 2019USD ($) | Jun. 15, 2021$ / shares | |
Convertible Senior Notes [Abstract] | ||||||||
Dividend record date | Jul. 16, 2021 | |||||||
Net proceeds from notes offering | $ 291,605 | $ 0 | $ 0 | |||||
Subsequent Event [Member] | ||||||||
Convertible Senior Notes [Abstract] | ||||||||
Dividend payment date | Aug. 6, 2021 | |||||||
0.625% Convertible Senior Notes Due 2026 [Member] | ||||||||
Convertible Senior Notes [Abstract] | ||||||||
Interest rate | 0.625% | 0.625% | ||||||
Maturity date | Jun. 15, 2026 | |||||||
Periodic interest payment frequency | semi-annually | |||||||
Period of special interest to be received in the event of default | 180 days | |||||||
Special interest rate to be received for first 90 days | 0.25% | |||||||
Special Interest rate to be received thereafter | 0.50% | |||||||
Conversion rate of common stock (in shares) | shares | 5.3519 | 5.3153 | ||||||
Debt instrument, converted amount | $ 1,000 | $ 1,000 | ||||||
Conversion price per share (in dollars per share) | $ / shares | $ 188.14 | |||||||
Common stock premium percentage | 25.00% | |||||||
Sale price per share (in dollars per share) | $ / shares | $ 150.51 | |||||||
Net proceeds from notes offering | $ 291,125 | |||||||
Liability component [Abstract] | ||||||||
Principal | $ 300,000 | 300,000 | ||||||
Less: Debt discount | [1] | 50,767 | ||||||
Less: Debt issuance costs | 7,254 | |||||||
Net carrying amount | 241,979 | |||||||
Equity issuance costs | 50,010 | |||||||
Deferred tax liability | $ 2,994 | |||||||
Threshold percentage of stock price trigger | 130.00% | |||||||
Threshold trading days | d | 20 | |||||||
Threshold consecutive trading days | d | 30 | |||||||
0.625% Convertible Senior Notes Due 2026 [Member] | Maximum [Member] | ||||||||
Convertible Senior Notes [Abstract] | ||||||||
Additional principal amount | $ 25,000 | |||||||
[1] | Debt discount and issuance costs are amortized to interest expense using the effective interest method over the expected life of the Notes. |
Debt, Convertible Note Hedge an
Debt, Convertible Note Hedge and Warrant Transactions (Details) - Convertible Note Hedge Transactions [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jul. 30, 2021 | Jul. 15, 2021 | |
Convertible Note Hedge and Warrant Transactions [Abstract] | ||
Number of shares of common stock included in Warrant Transactions (in shares) | 1,600,000 | |
Strike price (in dollars per share) | $ 263.39 | |
Portion of net proceeds from offering of Notes used to pay the premium on Convertible Note Hedge Transactions, net of proceeds from Warrant Transactions | $ 30,310 | |
Adjusted strike price (in dollars per share) | $ 261.59 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) | Jul. 30, 2021 |
Derivative Instruments [Abstract] | |
Credit spread | 3.00% |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities, Estimated Fair Values of Derivative Instruments (Details) - Interest Rate Swaps [Member] - USD ($) $ in Thousands | Jul. 30, 2021 | Jul. 31, 2020 | [1] |
Estimated Fair Value of Derivative Instruments [Abstract] | |||
Fair value, liability | $ 0 | $ 27,746 | |
Other Current Liabilities [Member] | |||
Estimated Fair Value of Derivative Instruments [Abstract] | |||
Fair value, liability | 0 | 3,886 | |
Long-term Interest Rate Swap Liability [Member] | |||
Estimated Fair Value of Derivative Instruments [Abstract] | |||
Fair value, liability | $ 0 | $ 23,860 | |
[1] | *These interest rate swap liabilities were recorded gross at July 31, 2020 since there were no offsetting assets under the Company’s master netting agreements. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities, Offsetting of Derivative Assets and Liabilities (Details) - Interest Rate Swaps [Member] - USD ($) $ in Thousands | Jul. 30, 2021 | Jul. 31, 2020 |
Derivative Instruments by Risk Exposure [Abstract] | ||
Offsetting assets | $ 0 | |
Reduction in fair value of interest rate swap liabilities due to adjustment related to non-performance risk | $ 978 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities, Pre-Tax Effects of Derivative Instruments on AOCL and Income (Details) - Interest Rate Swaps [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
Interest Rate Cash Flow Hedges [Abstract] | |||
Amount of income (loss) recognized in AOCL on derivatives (effective portion) | $ 27,110 | $ (17,740) | $ (15,466) |
Interest Expense [Member] | |||
Interest Rate Cash Flow Hedges [Abstract] | |||
Amount of loss reclassified from AOCL into income (effective portion) | $ 25,420 | $ 1,165 | $ (206) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities, Changes in AOCL, Net of Tax, Related to Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
Changes in AOCL, net of tax, related to interest rate swaps [Roll Forward] | |||
Balances | $ 418,389 | $ 604,710 | $ 581,781 |
Other comprehensive income (loss) before reclassifications | 39,424 | (12,559) | (11,752) |
Amounts reclassified from AOCL into earnings | (19,078) | (874) | 154 |
Other comprehensive income (loss), net of tax | 20,346 | (13,433) | (11,598) |
Balances | 663,633 | 418,389 | 604,710 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Changes in AOCL, net of tax, related to interest rate swaps [Roll Forward] | |||
Balances | (20,346) | (6,913) | 4,685 |
Other comprehensive income (loss), net of tax | 20,346 | (13,433) | (11,598) |
Balances | $ 0 | $ (20,346) | $ (6,913) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities, Amounts Reclassified out of AOCL Related to Interest Rate Swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 30, 2021 | [1],[2] | Apr. 30, 2021 | [1],[3] | Jan. 29, 2021 | [1] | Oct. 30, 2020 | [1],[2] | Jul. 31, 2020 | [1],[2] | May 01, 2020 | [1],[3] | Jan. 31, 2020 | [1] | Nov. 01, 2019 | [1],[2] | Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps [Abstract] | |||||||||||||||||||
Interest expense | $ 56,108 | $ 22,327 | $ 16,488 | ||||||||||||||||
Provision for income taxes (income tax benefit) | 56,038 | (28,683) | 42,955 | ||||||||||||||||
Net of tax | $ 36,363 | $ 33,470 | $ 14,000 | $ 170,680 | $ 25,066 | $ (161,932) | $ 61,168 | $ 43,223 | 254,513 | (32,475) | 223,401 | ||||||||
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | |||||||||||||||||||
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps [Abstract] | |||||||||||||||||||
Ineffectiveness recorded in earnings on interest rate cash flow hedge | 0 | 0 | 0 | ||||||||||||||||
Loss on Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | |||||||||||||||||||
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps [Abstract] | |||||||||||||||||||
Provision for income taxes (income tax benefit) | 6,342 | 291 | (52) | ||||||||||||||||
Net of tax | (19,078) | (874) | 154 | ||||||||||||||||
Loss on Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | |||||||||||||||||||
Amounts Reclassified Out of AOCL Related to Interest Rate Swaps [Abstract] | |||||||||||||||||||
Interest expense | $ (25,420) | $ (1,165) | $ 206 | ||||||||||||||||
[1] | Beginning in the third quarter of 2020 and continuing throughout fiscal year 2021, the Company’s operating results were adversely affected by the impact of the COVID-19 pandemic. | ||||||||||||||||||
[2] | In the fourth quarter of 2020, the Company completed a sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $69,954. In the first quarter of 2021, the Company completed an additional sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $217,722. | ||||||||||||||||||
[3] | In the third quarter of 2020, the Company recorded a loss of $132,878, which represented its equity investment in PBS HC and its receivable related to the principal and accumulated interest amounts on PBS HC promissory notes. See Note 3 for further information regarding the Company’s investment in PBS HC. |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
May 01, 2020 | Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
Share Repurchases [Abstract] | ||||
Maximum amount of share repurchase authorization | $ 50,000 | $ 25,000 | ||
Additional amount of share repurchase authorized | $ 25,000 | |||
Shares of common stock repurchased (in shares) | 232,543 | 378,974 | 0 | |
Cost of shares repurchased | $ 35,000 | $ 55,007 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 30, 2021USD ($) | [1],[2] | Apr. 30, 2021USD ($) | [1],[3] | Jan. 29, 2021USD ($) | [1] | Oct. 30, 2020USD ($) | [1],[2] | Jul. 31, 2020USD ($) | [1],[2] | May 01, 2020USD ($) | [1],[3] | Jan. 31, 2020USD ($) | [1] | Nov. 01, 2019USD ($) | [1],[2] | Jul. 30, 2021USD ($)LineSegment | Jul. 31, 2020USD ($) | Aug. 02, 2019USD ($) | |
Segment Information [Abstract] | |||||||||||||||||||
Number of product lines | Line | 2 | ||||||||||||||||||
Number of reportable operating segments | Segment | 1 | ||||||||||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||||||||||
Revenue | $ 784,405 | $ 713,416 | $ 677,169 | $ 646,454 | $ 495,065 | $ 432,544 | $ 846,143 | $ 749,040 | $ 2,821,444 | $ 2,522,792 | $ 3,071,951 | ||||||||
Restaurant [Member] | |||||||||||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||||||||||
Revenue | 2,227,246 | 2,032,030 | 2,482,377 | ||||||||||||||||
Retail [Member] | |||||||||||||||||||
Disaggregation of Revenue [Abstract] | |||||||||||||||||||
Revenue | $ 594,198 | $ 490,762 | $ 589,574 | ||||||||||||||||
[1] | Beginning in the third quarter of 2020 and continuing throughout fiscal year 2021, the Company’s operating results were adversely affected by the impact of the COVID-19 pandemic. | ||||||||||||||||||
[2] | In the fourth quarter of 2020, the Company completed a sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $69,954. In the first quarter of 2021, the Company completed an additional sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $217,722. | ||||||||||||||||||
[3] | In the third quarter of 2020, the Company recorded a loss of $132,878, which represented its equity investment in PBS HC and its receivable related to the principal and accumulated interest amounts on PBS HC promissory notes. See Note 3 for further information regarding the Company’s investment in PBS HC. |
Leases (Details)
Leases (Details) $ in Thousands | Jul. 30, 2021USD ($) |
Leases [Abstract] | |
Undiscounted future payments for leases not yet commenced | $ 11,186 |
Leases, Components of Lease Cos
Leases, Components of Lease Cost for Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 30, 2021 | Jul. 31, 2020 | |
Components of Lease Cost for Operating Leases [Abstract] | ||
Operating lease cost | $ 106,266 | $ 82,963 |
Short term lease cost | 2,363 | 2,896 |
Variable lease cost | 2,248 | 1,719 |
Total lease cost | $ 110,877 | $ 87,578 |
Leases, Rent Expense under Oper
Leases, Rent Expense under Operating Leases (Details) $ in Thousands | 12 Months Ended |
Aug. 02, 2019USD ($) | |
Rent Expense under Operating Leases [Abstract] | |
Minimum lease payments | $ 78,044 |
Contingent lease payments | 280 |
Total lease payments | $ 78,324 |
Leases, Supplemental Cash Flow
Leases, Supplemental Cash Flow Information and Non-cash Activity Related to Operating Leases (Details) - USD ($) $ in Thousands | Aug. 04, 2020 | Oct. 30, 2020 | Jul. 31, 2020 | Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 |
Operating cash flow information [Abstract] | ||||||
Gain on sale and leaseback transactions | $ 217,722 | $ 217,722 | $ 69,954 | $ 217,722 | $ 69,954 | $ 0 |
Cash paid for amounts included in the measurement of lease liabilities | 89,264 | 80,265 | ||||
Noncash information [Abstract] | ||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 316,563 | 267,266 | ||||
Lease modifications or reassessments increasing or decreasing right-of-use assets | 35,059 | 29,793 | ||||
Lease modifications removing right-of-use assets | $ (544) | $ (19,939) |
Leases, Weighted-Average Remain
Leases, Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating Leases (Details) | Jul. 30, 2021 | Jul. 31, 2020 |
Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate for Operating Leases [Abstract] | ||
Weighted-average remaining lease term | 18 years 2 months 1 day | 19 years 18 days |
Weighted-average discount rate | 4.84% | 4.50% |
Leases, Maturities of Undiscoun
Leases, Maturities of Undiscounted Cash Flows Reconciled to Total Lease Liability (Details) - USD ($) $ in Thousands | Jul. 30, 2021 | Aug. 04, 2020 |
Maturities of Undiscounted Cash Flows Reconciled to Total Lease Liability [Abstract] | ||
2022 | $ 86,992 | |
2023 | 78,471 | |
2024 | 63,908 | |
2025 | 61,182 | |
2026 | 61,548 | |
Thereafter | 884,987 | |
Total future minimum lease payments | 1,237,088 | |
Less imputed remaining interest | (438,332) | |
Total present value of operating lease liabilities | $ 798,756 | $ 133,663 |
Leases, Sale and Leaseback Tran
Leases, Sale and Leaseback Transactions (Details) $ in Thousands | Aug. 04, 2020USD ($)Store | Jul. 29, 2020USD ($)Store | Oct. 30, 2020USD ($) | Jul. 31, 2020USD ($) | Jul. 30, 2021USD ($) | Jul. 31, 2020USD ($) | Aug. 02, 2019USD ($) | Jul. 31, 2009Store | Jul. 28, 2000Store |
Sale Leaseback Transactions [Abstract] | |||||||||
Initial lease term | 20 years | ||||||||
Aggregate purchase price, net of closing costs | $ 146,357 | ||||||||
Aggregate initial annual rent payment for lease properties | $ 10,393 | ||||||||
Percentage of increase in annual rental payments in initial terms | 1.00% | ||||||||
Gain on sale and leaseback transaction | $ 217,722 | $ 217,722 | $ 69,954 | $ 217,722 | $ 69,954 | $ 0 | |||
Right-of-use assets, non-cash | 175,960 | ||||||||
Operating lease right-of-use assets | 309,624 | $ 691,949 | 974,477 | $ 691,949 | |||||
Operating lease liabilities | $ 133,663 | $ 798,756 | |||||||
Maximum [Member] | |||||||||
Sale Leaseback Transactions [Abstract] | |||||||||
Lease renewal option | 50 years | ||||||||
Owned Stores [Member] | |||||||||
Sale Leaseback Transactions [Abstract] | |||||||||
Number of owned stores involved in sale-lease back transactions | Store | 62 | ||||||||
Aggregate purchase price, net of closing costs | $ 198,083 | ||||||||
Sale-leaseback Transactions in 2009 [Member] | Owned Stores [Member] | |||||||||
Sale Leaseback Transactions [Abstract] | |||||||||
Number of owned stores involved in sale-lease back transactions | Store | 15 | ||||||||
Initial lease term | 20 years | ||||||||
Lease renewal option | 20 years | ||||||||
Sale-leaseback Transactions in 2009 [Member] | Retail Distribution Center [Member] | |||||||||
Sale Leaseback Transactions [Abstract] | |||||||||
Initial lease term | 15 years | ||||||||
Lease renewal option | 20 years | ||||||||
Sale-leaseback Transactions in 2000 [Member] | |||||||||
Sale Leaseback Transactions [Abstract] | |||||||||
Initial lease term | 20 years | ||||||||
Remaining property purchased | $ 3,200 | ||||||||
Aggregate initial annual rent payment for lease properties | $ 14,379 | ||||||||
Percentage of increase in annual rental payments in initial terms | 1.00% | ||||||||
Gain on sale and leaseback transaction | $ 69,954 | ||||||||
Operating lease right-of-use assets | 261,698 | ||||||||
Operating lease liabilities | $ 182,649 | ||||||||
Sale-leaseback Transactions in 2000 [Member] | Maximum [Member] | |||||||||
Sale Leaseback Transactions [Abstract] | |||||||||
Lease renewal option | 50 years | ||||||||
Sale-leaseback Transactions in 2000 [Member] | Owned Stores [Member] | |||||||||
Sale Leaseback Transactions [Abstract] | |||||||||
Number of owned stores involved in sale-lease back transactions | Store | 65 | ||||||||
Number of stores completed in sale leaseback transaction | Store | 64 | ||||||||
Initial lease term | 21 years | ||||||||
Lease renewal option | 20 years |
Share-Based Compensation, Stock
Share-Based Compensation, Stock Compensation Plans (Details) - shares | 12 Months Ended | |
Jul. 30, 2021 | Nov. 19, 2020 | |
Share-Based Payments [Abstract] | ||
Number of shares granted (in shares) | 32,313 | |
Prior Plan [Member] | ||
Share-Based Payments [Abstract] | ||
Number of shares granted (in shares) | 0 | |
Number of outstanding awards (in shares) | 125,334 | |
2020 Omnibus Plan [Member] | ||
Share-Based Payments [Abstract] | ||
Number of shares of the Company's common stock originally authorized for issuance (in shares) | 1,033,441 | |
Common stock reserved for future issuance (in shares) | 1,054,002 | |
Number of outstanding awards (in shares) | 12,118 |
Share-Based Compensation, Nonve
Share-Based Compensation, Nonvested Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
Nonvested Stock Awards [Member] | |||
Nonvested stock, shares [Roll Forward] | |||
Unvested, beginning of period (in shares) | 59,755 | ||
Granted (in shares) | 59,096 | ||
Vested (in shares) | (21,998) | ||
Forfeited (in shares) | (7,530) | ||
Unvested, end of period (in shares) | 89,323 | 59,755 | |
Nonvested stock, weighted-average grant date fair value [Roll Forward] | |||
Unvested, beginning of period (in dollars per share) | $ 152.34 | ||
Granted (in dollars per share) | 122.44 | ||
Vested (in dollars per share) | 145.48 | ||
Forfeited (in dollars per share) | 133.86 | ||
Unvested, end of period (in dollars per share) | $ 135.81 | $ 152.34 | |
Total fair value of nonvested stock | $ 3,200 | $ 3,084 | $ 5,119 |
Nonvested Stock Awards [Member] | Minimum [Member] | |||
Nonvested Stock Awards and Nonvested Stock Units [Abstract] | |||
Vesting period | 1 year | ||
Nonvested Stock Awards [Member] | Maximum [Member] | |||
Nonvested Stock Awards and Nonvested Stock Units [Abstract] | |||
Vesting period | 5 years | ||
2021 LTPP [Member] | |||
Nonvested Stock Awards and Nonvested Stock Units [Abstract] | |||
Nonvested stock earned (in shares) | 15,594 | ||
2021 LTPP [Member] | Minimum [Member] | |||
Nonvested Stock Awards and Nonvested Stock Units [Abstract] | |||
Performance period | 2021 | ||
Vesting period | 2 years | ||
2021 LTPP [Member] | Maximum [Member] | |||
Nonvested Stock Awards and Nonvested Stock Units [Abstract] | |||
Performance period | 2022 | ||
Vesting period | 3 years | ||
2020 LTPP [Member] | |||
Nonvested Stock Awards and Nonvested Stock Units [Abstract] | |||
Nonvested stock earned (in shares) | 19,824 | ||
2020 LTPP [Member] | Minimum [Member] | |||
Nonvested Stock Awards and Nonvested Stock Units [Abstract] | |||
Performance period | 2020 | ||
Vesting period | 2 years | ||
2020 LTPP [Member] | Maximum [Member] | |||
Nonvested Stock Awards and Nonvested Stock Units [Abstract] | |||
Performance period | 2021 | ||
Vesting period | 3 years | ||
Omnibus Plan 2010 [Member] | Nonvested Stock Units [Member] | |||
Nonvested stock, weighted-average grant date fair value [Roll Forward] | |||
Award performance period | 3 years | ||
Measurement period for average stock prices in consecutive calendar days | 60 days | ||
Measurement period for average stock prices prior to first business day of performance period | 30 days | ||
Measurement period for average stock prices after first business day of performance period | 30 days | ||
Risk-free interest rate for nonvested stock units granted | 1.60% | 2.90% | |
Omnibus Plan 2010 [Member] | Nonvested Stock Units [Member] | Minimum [Member] | |||
Nonvested stock, weighted-average grant date fair value [Roll Forward] | |||
Percentage of shares of target award that may be awarded | 75.00% | ||
Omnibus Plan 2010 [Member] | Nonvested Stock Units [Member] | Maximum [Member] | |||
Nonvested stock, weighted-average grant date fair value [Roll Forward] | |||
Percentage of shares of target award that may be awarded | 125.00% |
Share-Based Compensation, Perfo
Share-Based Compensation, Performance-Based Market Stock Units (Details) | 12 Months Ended |
Jul. 30, 2021shares | |
2020 rTSR RSUs [Member] | |
Performance-Based Market Stock Units [Abstract] | |
Number of shares accrued (in shares) | 4,120 |
2019 rTSR RSUs [Member] | |
Performance-Based Market Stock Units [Abstract] | |
Number of shares accrued (in shares) | 8,591 |
Share-Based Compensation, Compe
Share-Based Compensation, Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
Compensation Expense [Abstract] | |||
Total compensation expense | $ 8,729 | $ 6,386 | $ 8,181 |
Total unrecognized compensation expense and weighted-average periods over which the expense is expected to be recognized [Abstract] | |||
Number of shares issued from vesting of share-based compensation awards (in shares) | 32,313 | ||
Tax withholding payment net of cash received from issuance of share based compensation awards | $ (2,282) | $ (2,160) | $ (2,497) |
Nonvested Stock Awards [Member] | |||
Total unrecognized compensation expense and weighted-average periods over which the expense is expected to be recognized [Abstract] | |||
Total unrecognized compensation | $ 5,335 | ||
Weighted average period in years | 1 year 9 months 10 days | ||
Nonvested Stock Units [Member] | |||
Total unrecognized compensation expense and weighted-average periods over which the expense is expected to be recognized [Abstract] | |||
Total unrecognized compensation | $ 476 | ||
Weighted average period in years | 1 year |
Shareholder Rights Plan (Detail
Shareholder Rights Plan (Details) | 12 Months Ended | |
Jul. 30, 2021$ / sharesRightshares | Jul. 31, 2020$ / shares | |
Shareholder Rights Plan [Abstract] | ||
Par value of common share outstanding (in dollars per share) | $ 0.01 | $ 0.01 |
Dividend record date | Jul. 16, 2021 | |
Rights Agreement [Member] | ||
Shareholder Rights Plan [Abstract] | ||
Dividend declaration date | Apr. 9, 2021 | |
Number of preferred share purchase right declared as dividend for each share of common stock outstanding | Right | 1 | |
Par value of common share outstanding (in dollars per share) | $ 0.01 | |
Dividend record date | Apr. 19, 2021 | |
Dividend payment date | Apr. 19, 2021 | |
Rights expiration date | Apr. 9, 2024 | |
Exercise price of each right (in dollars per share) | $ 600 | |
Rights exercisable (in shares) | shares | 0 | |
Exercise price of each right, if a person or group becomes an acquiring person (in dollars per share) | $ 600 | |
Market value of each right If a person or group becomes an acquiring person (in dollars per share) | 1,200 | |
Exercise price of each right, if the company is later acquired in a merger (in dollars per share) | 600 | |
Market value of each right, if the company is later acquired in a merger (in dollars per share) | 1,200 | |
Redemption price of the right (in dollars per share) | $ 0.01 | |
Subsequent offering period | 20 days | |
Number of common stock shares that can be exchanged for each right if rights were extinguished (in shares) | shares | 1 | |
Rights Agreement [Member] | Minimum [Member] | ||
Shareholder Rights Plan [Abstract] | ||
Period before rights can be exercised | 10 days | |
Percentage of outstanding common stock ownership required to qualify for an "Acquiring Person" | 20.00% | |
Offering period | 60 days | |
Percentage of an ownership of common stock by an Acquiring Person before board of directors may extinguish right | 50.00% | |
Percentage of adjustment to exercise price | 1.00% | |
Rights Agreement [Member] | Series A Junior Participating Preferred Stock [Member] | ||
Shareholder Rights Plan [Abstract] | ||
Common share equivalent for each preferred share portion (in shares) | shares | 1 | |
Quarterly dividends payments per share (in dollars per share) | $ 0.01 | |
Amount entitled to receive per share upon liquidation of preferred share (in dollars per share) | $ 1 | |
Shares of a Preferred Share used in Provisions | 0.01 | |
2015 Plan [Member] | ||
Shareholder Rights Plan [Abstract] | ||
Rights expiration date | Apr. 9, 2021 |
Employee Savings Plans (Details
Employee Savings Plans (Details) - USD ($) $ in Thousands | 7 Months Ended | 12 Months Ended | ||
Mar. 15, 2020 | Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
401(k) Savings Plan [Member] | ||||
Employee Savings Plans [Abstract] | ||||
Defined contribution plan, type [Extensible List] | us-gaap:PensionPlansDefinedBenefitMember | |||
Defined contribution plan, tax status [Extensible List] | us-gaap:QualifiedPlanMember | |||
Requisite service period | 90 days | |||
Minimum age of eligible employees required | 21 years | |||
Percentage of compensation allowed to be deferred by eligible employees | 50.00% | |||
Percentage of company match to employee contribution | 50.00% | 50.00% | 50.00% | |
Percentage of company contributions that vests annually | 20.00% | 20.00% | 20.00% | |
Percentage of company contribution that vests on employee's fifth anniversary of employment | 100.00% | 100.00% | 100.00% | |
Company's contributions to the plan | $ 4,071 | $ 3,271 | $ 4,553 | |
401(k) Savings Plan [Member] | Maximum [Member] | ||||
Employee Savings Plans [Abstract] | ||||
Percentage of employee's compensation matched by company | 5.00% | 5.00% | 5.00% | |
Non-Qualified Savings Plan [Member] | ||||
Employee Savings Plans [Abstract] | ||||
Defined contribution plan, type [Extensible List] | us-gaap:PensionPlansDefinedBenefitMember | |||
Defined contribution plan, tax status [Extensible List] | us-gaap:NonqualifiedPlanMember | |||
Percentage of compensation allowed to be deferred by eligible employees | 50.00% | |||
Percentage of eligible bonuses allowed to be deferred | 100.00% | |||
Percentage of company match to employee contribution | 25.00% | 25.00% | 25.00% | |
Percentage of company contributions that vests annually | 20.00% | 20.00% | 20.00% | |
Percentage of company contribution that vests on employee's fifth anniversary of employment | 100.00% | 100.00% | 100.00% | |
Market value of the trust assets | $ 32,527 | |||
Liability obligations to participants | 32,527 | |||
Company's contributions to the plan | $ 259 | $ 239 | $ 320 | |
Non-Qualified Savings Plan [Member] | Maximum [Member] | ||||
Employee Savings Plans [Abstract] | ||||
Percentage of employee's compensation matched by company | 6.00% | 6.00% | 6.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
Current [Abstract] | |||
Federal | $ (13,505) | $ (15,375) | $ 38,831 |
State | 2,405 | (2,115) | 8,310 |
Deferred [Abstract] | |||
Federal | 57,580 | (13,467) | (1,427) |
State | 9,558 | 2,274 | (2,759) |
Total provision for income taxes (income tax benefit) | $ 56,038 | $ (28,683) | $ 42,955 |
Reconciliation of provision for income taxes (income tax benefit) and income taxes [Abstract] | |||
U.S. federal statutory rate used | 21.00% | 21.00% | 21.00% |
Provision computed at federal statutory income tax rate | $ 65,216 | $ 17,070 | $ 55,935 |
State and local income taxes, net of federal benefit | 10,589 | (263) | 4,248 |
Loss on unconsolidated subsidiary | 0 | (29,913) | 0 |
Federal net operating loss benefit | (5,402) | (1,573) | 0 |
Employer tax credits for FICA taxes paid on employee tip income | (12,323) | (11,489) | (15,107) |
Other employer tax credits | (3,234) | (3,606) | (3,537) |
Other-net | 1,192 | 1,091 | 1,416 |
Total provision for income taxes (income tax benefit) | 56,038 | (28,683) | 42,955 |
Deferred tax assets [Abstract] | |||
Compensation and employee benefits | 12,089 | 6,559 | |
Accrued liabilities | 14,145 | 9,587 | |
Operating lease liabilities | 199,029 | 168,395 | |
Insurance reserves | 7,141 | 6,772 | |
Inventory | 2,968 | 3,104 | |
Deferred tax credits and carryforwards | 16,978 | 19,419 | |
Deferred loss on equity investment | 0 | 35,281 | |
Other | 4,507 | 8,076 | |
Deferred tax assets | 256,857 | 257,193 | |
Deferred tax liabilities [Abstract] | |||
Property and equipment | 99,075 | 99,452 | |
Inventory | 7,161 | 7,144 | |
Operating lease right-of-use asset | 243,553 | 172,641 | |
Other | 5,694 | 5,674 | |
Deferred tax liabilities | 355,483 | 284,911 | |
Net deferred tax liability | 98,626 | 27,718 | |
Federal income tax credit carryforwards | 13,012 | ||
State income tax net operating loss carryforwards | 51,304 | ||
Deferred tax asset | 2,941 | ||
Reconciliation of gross liability for uncertain tax positions [Roll Forward] | |||
Balance at beginning of year | 17,835 | 18,006 | 18,634 |
Tax positions related to the current year [Abstract] | |||
Additions | 1,596 | 1,407 | 2,742 |
Reductions | 0 | 0 | 0 |
Tax positions related to prior year [Abstract] | |||
Additions | 0 | 202 | 203 |
Reductions | (1,045) | (256) | (348) |
Settlements | (1,786) | (138) | (1,784) |
Expiration of statute of limitations | (2,123) | (1,386) | (1,441) |
Balance at end of year | 14,477 | 17,835 | 18,006 |
Uncertain tax positions | 11,437 | 14,090 | 14,225 |
Potential interest and penalties [Abstract] | |||
Interest and penalties | 7,755 | 7,210 | 6,297 |
Interest and penalties [Abstract] | |||
Interest and penalties related to uncertain tax positions | 545 | $ 913 | $ 616 |
Minimum [Member] | |||
Uncertain Tax Positions [Abstract] | |||
Potential decrease of liabilities for uncertain tax positions within the next twelve months | 3,000 | ||
Maximum [Member] | |||
Uncertain Tax Positions [Abstract] | |||
Potential decrease of liabilities for uncertain tax positions within the next twelve months | $ 4,000 |
Net Income (Loss) Per Share a_3
Net Income (Loss) Per Share and Weighted Average Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 30, 2021 | [1],[2] | Apr. 30, 2021 | [1],[3] | Jan. 29, 2021 | [1] | Oct. 30, 2020 | [1],[2] | Jul. 31, 2020 | [1],[2] | May 01, 2020 | [1],[3] | Jan. 31, 2020 | [1] | Nov. 01, 2019 | [1],[2] | Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |
Net Income (Loss) Per Share and Weighted Average Shares [Abstract] | |||||||||||||||||||
Net income (loss) per share numerator | $ 36,363 | $ 33,470 | $ 14,000 | $ 170,680 | $ 25,066 | $ (161,932) | $ 61,168 | $ 43,223 | $ 254,513 | $ (32,475) | $ 223,401 | ||||||||
Net income (loss) per share denominator [Abstract] | |||||||||||||||||||
Basic weighted average shares outstanding (in shares) | 23,692,063 | 23,865,367 | 24,037,272 | ||||||||||||||||
Add potential dilution [Abstract] | |||||||||||||||||||
Nonvested stock awards and units (in shares) | 75,327 | 0 | 59,124 | ||||||||||||||||
Diluted weighted average shares outstanding (in shares) | 23,767,390 | 23,865,367 | 24,096,396 | ||||||||||||||||
[1] | Beginning in the third quarter of 2020 and continuing throughout fiscal year 2021, the Company’s operating results were adversely affected by the impact of the COVID-19 pandemic. | ||||||||||||||||||
[2] | In the fourth quarter of 2020, the Company completed a sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $69,954. In the first quarter of 2021, the Company completed an additional sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $217,722. | ||||||||||||||||||
[3] | In the third quarter of 2020, the Company recorded a loss of $132,878, which represented its equity investment in PBS HC and its receivable related to the principal and accumulated interest amounts on PBS HC promissory notes. See Note 3 for further information regarding the Company’s investment in PBS HC. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Jul. 30, 2021USD ($)Property | Jul. 31, 2020USD ($) |
Loss Contingencies [Abstract] | ||
Provision for non-performance by primary obligor under lease arrangements | $ 344 | $ 344 |
Standby Letters of Credit [Member] | Revolving Credit Facility [Member] | ||
Loss Contingencies [Abstract] | ||
Letters of credit outstanding | $ 31,896 | |
Lease Performance Guarantee [Member] | ||
Loss Contingencies [Abstract] | ||
Number of properties for which the Company is liable for lease payments as of result of non-performance by primary obligor | Property | 2 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 04, 2020 | Jul. 30, 2021 | [1],[2] | Apr. 30, 2021 | [1],[3] | Jan. 29, 2021 | [1] | Oct. 30, 2020 | Jul. 31, 2020 | May 01, 2020 | Jan. 31, 2020 | [1] | Nov. 01, 2019 | [1],[2] | Jul. 30, 2021 | Jul. 31, 2020 | Aug. 02, 2019 | |||
Quarterly Financial Data (Unaudited) [Abstract] | ||||||||||||||||||||
Total revenue | $ 784,405 | $ 713,416 | $ 677,169 | $ 646,454 | [1],[2] | $ 495,065 | [1],[2] | $ 432,544 | [1],[3] | $ 846,143 | $ 749,040 | $ 2,821,444 | $ 2,522,792 | $ 3,071,951 | ||||||
Income (loss) before income taxes | 37,704 | 42,876 | 3,580 | 226,391 | [1],[2] | 30,135 | [1],[2] | (84,274) | [1],[3] | 75,630 | 59,793 | 310,551 | 81,284 | 266,356 | ||||||
Net income (loss) | $ 36,363 | $ 33,470 | $ 14,000 | $ 170,680 | [1],[2] | $ 25,066 | [1],[2] | $ (161,932) | [1],[3] | $ 61,168 | $ 43,223 | $ 254,513 | $ (32,475) | $ 223,401 | ||||||
Net income (loss) per share - basic (in dollars per share) | $ 1.54 | $ 1.41 | $ 0.59 | $ 7.20 | [1],[2] | $ 1.06 | [1],[2] | $ (6.81) | [1],[3] | $ 2.55 | $ 1.80 | $ 10.74 | $ (1.36) | $ 9.29 | ||||||
Net income (loss) per share - diluted (in dollars per share) | $ 1.53 | $ 1.41 | $ 0.59 | $ 7.18 | [1],[2] | $ 1.05 | [1],[2] | $ (6.81) | [1],[3] | $ 2.55 | $ 1.79 | $ 10.71 | $ (1.36) | $ 9.27 | ||||||
Gain on sale lease back transactions | $ 217,722 | $ 217,722 | $ 69,954 | $ 217,722 | $ 69,954 | $ 0 | ||||||||||||||
Equity method investments [Abstract] | ||||||||||||||||||||
Loss from unconsolidated subsidiary | 0 | $ (142,442) | $ 0 | |||||||||||||||||
PBS HC [Member] | ||||||||||||||||||||
Equity method investments [Abstract] | ||||||||||||||||||||
Loss from unconsolidated subsidiary | $ (132,878) | $ (132,878) | ||||||||||||||||||
[1] | Beginning in the third quarter of 2020 and continuing throughout fiscal year 2021, the Company’s operating results were adversely affected by the impact of the COVID-19 pandemic. | |||||||||||||||||||
[2] | In the fourth quarter of 2020, the Company completed a sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $69,954. In the first quarter of 2021, the Company completed an additional sale and leaseback transaction and recorded a gain on the sale and leaseback transaction of $217,722. | |||||||||||||||||||
[3] | In the third quarter of 2020, the Company recorded a loss of $132,878, which represented its equity investment in PBS HC and its receivable related to the principal and accumulated interest amounts on PBS HC promissory notes. See Note 3 for further information regarding the Company’s investment in PBS HC. |