Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Oct. 06, 2013 | Nov. 04, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'RED ROBIN GOURMET BURGERS INC | ' |
Entity Central Index Key | '0001171759 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 6-Oct-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-29 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 14,347,170 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 06, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $17,964 | $22,440 |
Accounts receivable, net | 14,388 | 16,386 |
Inventories | 21,276 | 18,371 |
Prepaid expenses and other current assets | 10,952 | 13,439 |
Deferred tax asset and other | 3,608 | 3,868 |
Total current assets | 68,188 | 74,504 |
Property and equipment, net | 437,508 | 413,258 |
Goodwill | 62,525 | 62,525 |
Intangible assets, net | 36,108 | 37,203 |
Other assets, net | 9,733 | 9,642 |
Total assets | 614,062 | 597,132 |
Current liabilities: | ' | ' |
Trade accounts payable | 17,279 | 14,241 |
Construction related payables | 20,388 | 4,694 |
Accrued payroll and payroll related liabilities | 40,260 | 31,476 |
Unearned revenue, net | 20,032 | 28,187 |
Accrued liabilities and other | 24,925 | 23,685 |
Total current liabilities | 122,884 | 102,283 |
Deferred rent | 50,953 | 44,801 |
Long-term portion of credit facility | 81,500 | 125,000 |
Long-term portion of capital lease obligations | 8,630 | 9,211 |
Other non-current liabilities | 9,217 | 8,918 |
Total liabilities | 273,184 | 290,213 |
Stockholders' equity: | ' | ' |
Common stock, $0.001 par value: 30,000 shares authorized 17,843 and 17,499 shares issued; 14,345 and 13,999 shares outstanding | 18 | 17 |
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding | ' | ' |
Treasury stock, 3,498 and 3,500 shares, at cost | -108,899 | -107,589 |
Paid-in capital | 195,979 | 185,974 |
Accumulated other comprehensive gain, net of tax | -12 | 5 |
Retained earnings | 253,792 | 228,512 |
Total stockholders' equity | 340,878 | 306,919 |
Total liabilities and stockholders' equity | $614,062 | $597,132 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Oct. 06, 2013 | Dec. 30, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 30,000 | 30,000 |
Common stock, shares issued | 17,843 | 17,499 |
Common stock, shares outstanding | 14,345 | 13,999 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 3,498 | 3,500 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 06, 2013 | Sep. 30, 2012 | Oct. 06, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Restaurant revenue | $226,844 | $209,754 | $762,647 | $724,328 |
Franchise royalties, fees and other revenues | 3,829 | 3,563 | 12,674 | 12,125 |
Total revenues | 230,673 | 213,317 | 775,321 | 736,453 |
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ' | ' | ' | ' |
Cost of sales | 57,253 | 52,066 | 190,259 | 182,945 |
Labor | 76,624 | 71,729 | 255,154 | 243,410 |
Other operating | 29,463 | 28,374 | 95,016 | 94,656 |
Occupancy | 17,132 | 16,309 | 56,484 | 53,213 |
Depreciation and amortization | 13,436 | 13,284 | 44,589 | 42,468 |
Selling, general and administrative | 27,481 | 24,469 | 93,475 | 83,920 |
Pre-opening costs | 2,482 | 1,250 | 4,607 | 2,835 |
Total costs and expenses | 223,871 | 207,481 | 739,584 | 703,447 |
Income from operations | 6,802 | 5,836 | 35,737 | 33,006 |
Other expense: | ' | ' | ' | ' |
Interest expense, net and other | 624 | 1,093 | 2,387 | 4,193 |
Income before income taxes | 6,178 | 4,743 | 33,350 | 28,813 |
Provision for income taxes | 1,517 | 1,210 | 8,070 | 6,974 |
Net income | $4,661 | $3,533 | $25,280 | $21,839 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.33 | $0.25 | $1.78 | $1.50 |
Diluted (in dollars per share) | $0.32 | $0.24 | $1.75 | $1.48 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 14,328 | 14,300 | 14,189 | 14,517 |
Diluted (in shares) | 14,600 | 14,539 | 14,472 | 14,778 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 06, 2013 | Sep. 30, 2012 | Oct. 06, 2013 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $4,661 | $3,533 | $25,280 | $21,839 |
Cash flow hedges: | ' | ' | ' | ' |
Decrease in fair value of interest rate swap | -110 | -274 | -22 | -1,036 |
Net loss reclassified into interest expense | ' | 110 | ' | 350 |
Total change in unrealized loss related to cash flow hedges | -110 | -164 | -22 | -686 |
Income tax benefit related to items of other comprehensive income | 43 | 64 | 5 | 268 |
Other comprehensive loss, net of tax | -67 | -100 | -17 | -418 |
Total comprehensive income | $4,594 | $3,433 | $25,263 | $21,421 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 06, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $25,280 | $21,839 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 44,589 | 42,468 |
Stock-based compensation expense | 3,099 | 3,164 |
Other, net | -4,196 | 1,350 |
Changes in operating assets and liabilities: | ' | ' |
Unearned revenue | -6,833 | -8,434 |
Trade accounts payable and accrued liabilities | 13,940 | 3,890 |
Other operating assets and liabilities, net | 6,303 | 8,069 |
Cash provided by operating activities | 82,182 | 72,346 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -50,393 | -39,681 |
Acquisition of franchise restaurant, net of cash acquired | ' | -3,247 |
Changes in marketing fund restricted cash and other | ' | -98 |
Cash used in investing activities | -50,393 | -43,026 |
Cash flows from financing activities: | ' | ' |
Borrowings of long-term debt | 104,500 | ' |
Payments of long-term debt and capital leases | -148,576 | -24,978 |
Payments to acquire treasury stock | -2,503 | -15,654 |
Proceeds from exercise of stock options and employee stock purchase plan | 7,266 | 3,142 |
Tax benefit from exercise of stock options | 3,048 | ' |
Cash used in financing activities | -36,265 | -37,490 |
Net change in cash and cash equivalents | -4,476 | -8,170 |
Cash and cash equivalents, beginning of period | 22,440 | 35,036 |
Cash and cash equivalents, end of period | 17,964 | 26,866 |
Supplemental cash flow information: | ' | ' |
Income taxes paid | 4,786 | 3,507 |
Interest paid, net of amounts capitalized | $1,920 | $4,415 |
Basis_of_Presentation_and_Rece
Basis of Presentation and Recent Accounting Pronouncements | 9 Months Ended |
Oct. 06, 2013 | |
Basis of Presentation and Recent Accounting Pronouncements | ' |
Basis of Presentation and Recent Accounting Pronouncements | ' |
1. Basis of Presentation and Recent Accounting Pronouncements | |
Red Robin Gourmet Burgers, Inc., a Delaware corporation, together with its subsidiaries (“Red Robin” or the “Company”), develops and operates casual-dining restaurants. As of October 6, 2013, the Company owned and operated 350 restaurants located in 33 states. The Company also sells franchises, and there were 135 franchised restaurants, in 21 states and two Canadian provinces as of October 6, 2013. The Company operates its business as one operating and one reportable segment. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements include the accounts of Red Robin and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates included in the preparation of these financial statements pertain to recoverability of long-lived assets, recoverability of goodwill, estimated useful lives of other intangible assets, variable compensation accruals, lease accounting, estimated fair value, self-insurance liabilities, stock-based compensation expense, estimated breakage on unredeemed gift cards and deferred revenue related to our customer loyalty program, legal contingencies, and income taxes. Actual results could differ from those estimates. The results of operations for any interim period are not necessarily indicative of results for the full year. | |
The accompanying condensed consolidated financial statements of Red Robin have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 30, 2012, has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required by generally accepted accounting principles. For further information, please refer to and read these interim condensed consolidated financial statements in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2012, filed with the SEC on February 28, 2013. | |
The Company’s quarter that ended October 6, 2013 is referred to as third quarter 2013, or the twelve weeks ended October 6, 2013; the quarter ended July 14, 2013 is referred to as second quarter 2013, or the twelve weeks ended July 14, 2013; the first quarter ended April 21, 2013, is referred to as first quarter 2013, or the sixteen weeks ended April 21, 2013; and, together the first, second, and third quarters of 2013 are referred to as the forty weeks ended October 6, 2013. The Company’s quarter that ended September 30, 2012 is referred to as third quarter 2012, or the twelve weeks ended September 30, 2012; the quarter ended July 8, 2012 is referred to as second quarter 2012, or the twelve weeks ended July 8, 2012; the first quarter ended April 15, 2012 is referred to as first quarter 2012, or the sixteen weeks ended April 15, 2012; and, together the first, second, and third quarters of 2012 are referred to as the forty weeks ended September 30, 2012. | |
Recently Issued Accounting Standards | |
In January 2013, the Financial Accounting Standards Board (“FASB”) issued Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies the scope of transactions that are subject to the disclosures about offsetting and will require disclosure of information about the effect or potential effect of financial instrument netting arrangements on financial position. Entities will be required to present both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. This guidance is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. The adoption of this guidance in fiscal 2014 is not expected to have a material impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires entities to present the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. The guidance is effective for fiscal years beginning after December 15, 2012. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires entities to present its unrecognized tax benefits net of its deferred tax assets when settlement in this manner is available under the tax law, which would be based on facts and circumstances as of the balance sheet reporting date and would not consider future events. Gross presentation in the notes to the financial statements will still be required. This update does not require any new recurring disclosures and is effective for annual and interim periods beginning after December 15, 2013, which will require us to adopt these provisions in the first quarter of fiscal 2014. The Company is evaluating the impact of this guidance on the Company’s consolidated financial statements. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||||||||||||||||||
Oct. 06, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||
2. Goodwill and Intangible Assets | ||||||||||||||||||||
The following table presents goodwill as of October 6, 2013, and December 30, 2012 (in thousands): | ||||||||||||||||||||
Balance at December 25, 2011 | $ | 61,769 | ||||||||||||||||||
Acquisition | 756 | |||||||||||||||||||
Balance at December 30, 2012 | $ | 62,525 | ||||||||||||||||||
Acquisitions/dispositions | — | |||||||||||||||||||
Balance at October 6, 2013 | $ | 62,525 | ||||||||||||||||||
The Company has no historical goodwill impairment losses in periods prior to those presented in the above table. Refer to Note 5, Acquisition of Red Robin Franchised Restaurant for details of the acquisition. | ||||||||||||||||||||
The following table presents intangible assets as of October 6, 2013, and December 30, 2012 (in thousands): | ||||||||||||||||||||
October 6, 2013 | December 30, 2012 | |||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||
Intangible assets subject to amortization: | ||||||||||||||||||||
Franchise rights | $ | 43,603 | $ | (17,225 | ) | $ | 26,378 | $ | 43,519 | $ | (15,342 | ) | $ | 28,177 | ||||||
Leasehold interests | 12,744 | (4,887 | ) | 7,857 | 12,744 | (4,313 | ) | 8,431 | ||||||||||||
Liquor licenses | 10,684 | (8,811 | ) | 1,873 | 9,095 | (8,500 | ) | 595 | ||||||||||||
Total | $ | 67,031 | $ | (30,923 | ) | $ | 36,108 | $ | 65,358 | $ | (28,155 | ) | $ | 37,203 | ||||||
There were no impairments of intangible assets during the forty weeks ended October 6, 2013, and September 30, 2012. | ||||||||||||||||||||
The aggregate future amortization expense as of October 6, 2013 is as follows (in thousands): | ||||||||||||||||||||
Remainder of 2013 | $ | 732 | ||||||||||||||||||
2014 | 3,282 | |||||||||||||||||||
2015 | 3,181 | |||||||||||||||||||
2016 | 3,115 | |||||||||||||||||||
2017 | 3,055 | |||||||||||||||||||
Thereafter | 22,743 | |||||||||||||||||||
Total | $ | 36,108 |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||
Oct. 06, 2013 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
3. Stock-Based Compensation | ||||||||||||||
Under the Company’s Second Amended and Restated 2007 Performance Incentive Plan (the “2007 Stock Plan”), various stock options and stock awards may be granted to employees of the Company and any of the Company’s subsidiaries, directors of the Company, certain consultants and advisors to the Company or any of its subsidiaries. | ||||||||||||||
Stock options are granted with an exercise price equal to the fair market value of shares of the Company’s common stock at the grant date. We account for stock-based compensation in accordance with fair value recognition provisions, calculated using the Black-Scholes option pricing model (the “pricing model”). The weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model were as follows: | ||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||
October 6, | September 30, | October 6, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Risk-free interest rate | N/A | N/A | 0.7 | % | 0.7 | % | ||||||||
Expected years until exercise | N/A | N/A | 4.2 | 4.1 | ||||||||||
Expected stock volatility | N/A | N/A | 44.4 | % | 52.8 | % | ||||||||
Dividend yield | N/A | N/A | 0 | % | 0 | % | ||||||||
Weighted average Black-Scholes fair value per share at date of grant | N/A | N/A | $ | 15.19 | $ | 14.6 | ||||||||
The following table presents a summary of the Company’s stock-based compensation activity for the forty weeks ended October 6, 2013: | ||||||||||||||
(in thousands) | Stock | Restricted | Restricted | Performance | ||||||||||
Options | Stock Units | Stock | Stock Units | |||||||||||
Outstanding, December 30, 2012 | 705 | 180 | 4 | 35 | ||||||||||
Granted | 129 | 72 | — | 6 | ||||||||||
Options Exercised/Units Vested | (264 | ) | (104 | ) | (4 | ) | (41 | ) | ||||||
Cancelled | (44 | ) | (9 | ) | — | — | ||||||||
Outstanding, October 6, 2013 | 526 | 139 | — | — | ||||||||||
We recognized expense from stock-based compensation for the twelve and forty weeks ended October 6, 2013 and September 30, 2012 as follows (in thousands): | ||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||
October 6, | September 30, | October 6, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Labor related | $ | 25 | $ | 66 | $ | 129 | $ | 294 | ||||||
Selling, general and administrative related | 831 | 828 | 2,970 | 2,870 | ||||||||||
Total stock-based compensation | $ | 856 | $ | 894 | $ | 3,099 | $ | 3,164 | ||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Oct. 06, 2013 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
4. Earnings Per Share | ||||||||||||||
Basic earnings per share amounts are calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share amounts are calculated based upon the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares are excluded from the computation in periods in which they have an anti-dilutive effect. Diluted earnings per share reflect the potential dilution that could occur if holders of options exercised their options into common stock. During the twelve and forty weeks ended October 6, 2013, weighted average stock options outstanding of 5,000 and 102,000, were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. During the twelve and forty weeks ended September 30, 2012, weighted average stock options outstanding of 293,000 and 306,000, were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. The Company uses the treasury stock method to calculate the effect of outstanding stock options. The computations for basic and diluted earnings per share are as follows (in thousands, except per share data): | ||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||
October 6, | September 30, | October 6, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net income | $ | 4,661 | $ | 3,533 | $ | 25,280 | $ | 21,839 | ||||||
Basic weighted average shares outstanding | 14,328 | 14,300 | 14,189 | 14,517 | ||||||||||
Dilutive effect of stock options and awards | 272 | 239 | 283 | 261 | ||||||||||
Dilutive weighted average shares outstanding | 14,600 | 14,539 | 14,472 | 14,778 | ||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.33 | $ | 0.25 | $ | 1.78 | $ | 1.5 | ||||||
Diluted | $ | 0.32 | $ | 0.24 | $ | 1.75 | $ | 1.48 | ||||||
Acquisition_of_Red_Robin_Franc
Acquisition of Red Robin Franchised Restaurant | 9 Months Ended |
Oct. 06, 2013 | |
Acquisition of Red Robin Franchised Restaurant | ' |
Acquisition of Red Robin Franchised Restaurant | ' |
5. Acquisition of Red Robin Franchised Restaurant | |
On June 19, 2012, the Company acquired the assets of one restaurant of one of its franchisees. The purchase price was approximately $3.2 million. The consolidated statements of operations include the results of operations for this restaurant from the date of acquisition. The pro forma impact of the acquisition on prior periods is not presented as the impact was not material to reported results. | |
The Company allocated the purchase price to the tangible and intangible assets acquired in the acquisition at their estimated fair values with the remainder allocated to goodwill as follows: $1.9 million to intangibles, which represent the fair value of franchise rights and liquor licenses, $756,000 to goodwill, $540,000 to fixed assets and $47,000 to inventory. The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date was based on significant inputs not observed in the market and thus represents a Level 3 measurement. |
Advertising_and_Marketing_Cost
Advertising and Marketing Costs | 9 Months Ended |
Oct. 06, 2013 | |
Advertising and Marketing Costs | ' |
Advertising and Marketing Costs | ' |
6. Advertising and Marketing Costs | |
Costs incurred in connection with the advertising and marketing of the Company are included in selling, general and administrative expenses. Advertising and marketing includes salaries and benefits of marketing personnel, advertising, media and marketing materials. Advertising production costs are expensed in the period when the advertising first takes place. Other advertising and marketing costs are expensed as incurred. Advertising and marketing costs were $8.4 million and $27.2 million for the twelve and forty weeks ended October 6, 2013 and $6.9 million and $24.9 million for the twelve and forty weeks ended September 30, 2012. | |
Under the Company’s franchise agreements, both the Company and the franchisees must contribute a minimum percentage of revenues to two marketing and national media advertising funds (the “Marketing Funds”). These Marketing Funds are used to develop and distribute Red Robin® branded marketing materials, for media purchases and for administrative costs. The Company’s portion of costs incurred by the Marketing Funds is recorded as selling, general and administrative expenses in the Company’s consolidated statements of income. |
Derivative_and_Other_Comprehen
Derivative and Other Comprehensive Income | 9 Months Ended | |||||||
Oct. 06, 2013 | ||||||||
Derivative and Other Comprehensive Income | ' | |||||||
Derivative and Other Comprehensive Income | ' | |||||||
7. Derivative and Other Comprehensive Income | ||||||||
The Company enters into derivative instruments for risk management purposes only, including derivatives designated as a cash flow hedge under guidance for derivative instruments and hedging activities. The Company uses interest rate-related derivative instruments to manage its exposure to fluctuations in interest rates. By using these instruments, the Company exposes itself, from time to time, to credit risk and market risk. Credit risk is the failure of either party to the contract to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. The Company minimizes the credit risk by entering into transactions with high-quality counterparties whose credit rating is evaluated on a quarterly basis. Market risk, as it relates to the Company’s interest-rate derivative, is the adverse effect on the value of a financial instrument that results from changes in interest rates. The Company minimizes market risk by establishing and monitoring parameters that limit the types and degree of market risk that the Company takes. | ||||||||
The Company had one interest rate swap at October 6, 2013, and its counterparty is Rabobank International, Utrecht (“Rabobank”). The Company entered into a variable-to-fixed interest rate swap agreement with Rabobank in August 2011 to hedge the floating interest rate on a portion of the term loan under the Company’s credit facility. The interest rate swap was effective August 5, 2011, with an initial notional amount of $74.1 million. In accordance with its original terms, $6.6 million of the initial $74.1 million expired in the forty weeks ended October 6, 2013 and $4.7 million expired in the fifty-three weeks ended December 30, 2012. The remaining notional amount of $61.9 million as of October 6, 2013, is set to fully expire on June 30, 2015, with a notional hedge amount of $50.6 million. Under the swap, the Company is required to make quarterly payments based on a fixed interest rate of 1.135%, calculated based on the remaining notional amount. In exchange, the Company receives interest on the notional amount at a variable rate that is based on the 3-month spot LIBOR rate quarterly. The Company entered into this interest rate swap to offset the variability of its interest expense arising out of changes in the variable interest rate for the designated interest payments and designated the swap as a cash flow hedge. Concurrent with the December 14, 2012, refinancing of its then-existing credit facility, the Company de-designated the original hedging relationship for this swap and consequently re-designated the swap on the amended credit facility’s $225 million revolver. Accordingly, changes in fair value of the interest rate swap contract are recorded, net of taxes, as a component of accumulated other comprehensive income, in the accompanying condensed consolidated balance sheets. See Note 8 for information on the fair value of the interest rate swap. | ||||||||
The Company reclassifies the effective gain or loss from accumulated other comprehensive income, net of tax, on the Company’s consolidated balance sheet to interest expense on the Company’s consolidated statements of income as the interest expense is recognized on the related debt. The reclassifications from accumulated other comprehensive income to net income were immaterial for the twelve and forty week periods ended October 6, 2013. | ||||||||
The following table summarizes the fair value and presentation in the condensed consolidated balance sheets of the interest rate swap as hedging instruments as of October 6, 2013, and December 30, 2012 (in thousands): | ||||||||
Derivative Liability | ||||||||
Balance Sheet Location | Fair Value at | Fair Value at | ||||||
October 6, | December 30, | |||||||
2013 | 2012 | |||||||
Accrued liabilities | $ | 495 | $ | 539 | ||||
Other non-current liabilities | 248 | 677 | ||||||
Total derivative liability | $ | 743 | $ | 1,216 | ||||
The components of accumulated other comprehensive income at the end of each period were as follows (in thousands): | ||||||||
October 6, | December 30, | |||||||
2013 | 2012 | |||||||
Unrealized (loss) gain related to cash flow hedges, pretax | $ | (13 | ) | $ | 9 | |||
Tax effect | 1 | (4 | ) | |||||
Accumulated other comprehensive (loss) income, net | $ | (12 | ) | $ | 5 | |||
The interest rate swap was highly effective during the twelve and forty weeks ended October 6, 2013. The Company expects the swap to continue to be highly effective during the next twelve months. Additionally, the Company had no obligations at October 6, 2013, to post collateral under the terms of the interest rate swap agreement. |
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | |||||||||||||
Oct. 06, 2013 | ||||||||||||||
Fair Value Measurement | ' | |||||||||||||
Fair Value Measurement | ' | |||||||||||||
8. Fair Value Measurement | ||||||||||||||
Fair value measurements are made under a three-tier fair value hierarchy, which prioritizes the inputs used in the measuring of fair value: | ||||||||||||||
Level 1: Observable inputs that reflect unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||
Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||||||||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||
The derivative liability associated with the interest rate swap is considered to be a Level 2 instrument. The interest rate swap was a standard cash flow hedge with a fair value estimated using industry-standard valuation models. Such models project future cash flows and discount the future amounts to a present value using market-based observable inputs, including interest rate curves. See Note 7, Derivative and Other Comprehensive Income, for the discussion of the derivative liability. | ||||||||||||||
The Company’s deferred compensation plan is a nonqualified deferred compensation plan which allows highly compensated employees to defer a portion of their base salary and variable compensation each plan year. In the periods prior to the third quarter 2013, the Company’s plan administrator purchased Company-owned whole-life insurance contracts on certain team members to offset the deferred compensation plan obligation. During the third quarter 2013, the Company liquidated these insurance policies and invested the $3.3 million cash realized from the liquidation in a rabbi trust. Assets of the rabbi trust are invested in certain mutual funds that cover an investment spectrum range from equities to money market instruments. At October 6, 2013, these mutual funds have published market prices and are reported at fair value of $3.4 million, using Level 1 inputs. The fair value of the trust assets is included in other assets, net. At October 6, 2013, the liability for the deferred compensation plan is recorded at the fair value of the rabbi trust assets and is included in other non-current liabilities. | ||||||||||||||
Prior to the third quarter 2013, the carrying value of both the liability for the deferred compensation plan and associated life insurance policy were equal to their fair value. These agreements were required to be measured at fair value on a recurring basis and were valued using Level 2 inputs. At December 30, 2012, a liability for participant contributions and investment income thereon of $3.0 million was included in other non-current liabilities. The cash surrender value of these policies was $2.9 million and was included in other assets, net. | ||||||||||||||
As of October 6, 2013, the Company had no financial assets or liabilities that were measured using Level 3 inputs. The Company also had no non-financial assets or liabilities that were required to be measured at fair value on a recurring basis. | ||||||||||||||
The following table presents our assets and liabilities that are fair valued on a recurring basis as of October 6, 2013 and December 30, 2012 (in thousands): | ||||||||||||||
October 6, | Level 1 | Level 2 | Level 3 | |||||||||||
2013 | ||||||||||||||
Assets: | ||||||||||||||
Investments in rabbi trust | $ | 3,418 | $ | 3,418 | $ | — | $ | — | ||||||
Total assets measured at fair value | $ | 3,418 | $ | 3,418 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||||
Derivative — interest rate swap | $ | 743 | $ | — | $ | 743 | $ | — | ||||||
Total liabilities measured at fair value | $ | 743 | $ | — | $ | 743 | $ | — | ||||||
December 30, | Level 1 | Level 2 | Level 3 | |||||||||||
2012 | ||||||||||||||
Assets: | ||||||||||||||
Life insurance policies | $ | 2,920 | $ | — | $ | 2,920 | $ | — | ||||||
Total assets measured at fair value | $ | 2,920 | $ | — | $ | 2,920 | $ | — | ||||||
Liabilities | ||||||||||||||
Derivative — interest rate swap | $ | 1,216 | $ | — | $ | 1,216 | $ | — | ||||||
Deferred compensation plan | 2,974 | — | 2,974 | — | ||||||||||
Total liabilities measured at fair value | $ | 4,190 | $ | — | $ | 4,190 | $ | — | ||||||
Disclosures of Fair Value of Other Assets and Liabilities | ||||||||||||||
The Company’s liabilities under its credit facility and capital leases are carried at historical cost in the accompanying consolidated balance sheet. For disclosure purposes, the Company estimated the fair value of the credit facility and capital lease obligations using discounted cash flow analysis based on market rates obtained from independent third parties for similar types of debt. Both the credit facility and the Company’s capital lease obligations are considered to be Level 2 instruments. The carrying value of the Company’s credit facility as of October 6, 2013, and December 30, 2012, was $81.5 million and $125.0 million. The fair value of the Company’s credit facility as of October 6, 2013, and December 30, 2012, was approximately $81.4 million and $124.4 million. There are $9.4 million of outstanding borrowings recorded for the Company’s capital leases as of October 6, 2013, which have an estimated fair value of $11.0 million. At December 30, 2012, the carrying amount of the Company’s capital lease obligations was $10.0 million, and the fair value was $11.8 million. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Oct. 06, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
9. Related Party Transactions | |
The former president and majority owner of one of the Company’s former franchisees served on the Company’s board of directors from 2009 to May 2013. The Company purchased 13 Red Robin® restaurants in Washington from this former franchisee in 2006. The retired board member is a principal of and holds, directly or indirectly, interests of between 45% and 100% in each of three privately-held entities that hold the leases for three of the acquired Washington restaurants. These leases were assumed by the Company in connection with the acquisition. Under these leases, the Company recognized rent and other related payments in the amounts of $0.3 million and $0.9 million for the twelve and forty weeks ended October 6, 2013 and $0.2 million and $0.9 million for the twelve and forty weeks ended September 30, 2012. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 06, 2013 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
10. Commitment and Contingencies | |
In the normal course of business, there are various claims in process, matters in litigation and other contingencies. These include employment related claims and claims alleging illness, injury or other food quality, health or operational issues. To date, no claims of these types of litigation, certain of which are covered by insurance policies, have had a material effect on us. While it is not possible to predict the outcome of these suits, legal proceedings and claims with certainty, management is of the opinion that adequate provision for potential losses associated with these matters has been made in the financial statements and that the ultimate resolution of these matters will not have a material effect on the Company’s financial position and results of operations. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Oct. 06, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
11. Subsequent Events | |
The Company has evaluated subsequent events and found there to be no events requiring recognition or disclosure through the date of issuance of this report. | |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||
Oct. 06, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||
Schedule of goodwill | ' | |||||||||||||||||||
The following table presents goodwill as of October 6, 2013, and December 30, 2012 (in thousands): | ||||||||||||||||||||
Balance at December 25, 2011 | $ | 61,769 | ||||||||||||||||||
Acquisition | 756 | |||||||||||||||||||
Balance at December 30, 2012 | $ | 62,525 | ||||||||||||||||||
Acquisitions/dispositions | — | |||||||||||||||||||
Balance at October 6, 2013 | $ | 62,525 | ||||||||||||||||||
Schedule of intangible assets | ' | |||||||||||||||||||
The following table presents intangible assets as of October 6, 2013, and December 30, 2012 (in thousands): | ||||||||||||||||||||
October 6, 2013 | December 30, 2012 | |||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||
Amount | Amount | Amount | Amount | |||||||||||||||||
Intangible assets subject to amortization: | ||||||||||||||||||||
Franchise rights | $ | 43,603 | $ | (17,225 | ) | $ | 26,378 | $ | 43,519 | $ | (15,342 | ) | $ | 28,177 | ||||||
Leasehold interests | 12,744 | (4,887 | ) | 7,857 | 12,744 | (4,313 | ) | 8,431 | ||||||||||||
Liquor licenses | 10,684 | (8,811 | ) | 1,873 | 9,095 | (8,500 | ) | 595 | ||||||||||||
Total | $ | 67,031 | $ | (30,923 | ) | $ | 36,108 | $ | 65,358 | $ | (28,155 | ) | $ | 37,203 | ||||||
Schedule of aggregate future amortization expense | ' | |||||||||||||||||||
The aggregate future amortization expense as of October 6, 2013 is as follows (in thousands): | ||||||||||||||||||||
Remainder of 2013 | $ | 732 | ||||||||||||||||||
2014 | 3,282 | |||||||||||||||||||
2015 | 3,181 | |||||||||||||||||||
2016 | 3,115 | |||||||||||||||||||
2017 | 3,055 | |||||||||||||||||||
Thereafter | 22,743 | |||||||||||||||||||
Total | $ | 36,108 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Oct. 06, 2013 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Schedule of weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model | ' | |||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||
October 6, | September 30, | October 6, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Risk-free interest rate | N/A | N/A | 0.7 | % | 0.7 | % | ||||||||
Expected years until exercise | N/A | N/A | 4.2 | 4.1 | ||||||||||
Expected stock volatility | N/A | N/A | 44.4 | % | 52.8 | % | ||||||||
Dividend yield | N/A | N/A | 0 | % | 0 | % | ||||||||
Weighted average Black-Scholes fair value per share at date of grant | N/A | N/A | $ | 15.19 | $ | 14.6 | ||||||||
Summary of the Company's stock-based compensation activity | ' | |||||||||||||
(in thousands) | Stock | Restricted | Restricted | Performance | ||||||||||
Options | Stock Units | Stock | Stock Units | |||||||||||
Outstanding, December 30, 2012 | 705 | 180 | 4 | 35 | ||||||||||
Granted | 129 | 72 | — | 6 | ||||||||||
Options Exercised/Units Vested | (264 | ) | (104 | ) | (4 | ) | (41 | ) | ||||||
Cancelled | (44 | ) | (9 | ) | — | — | ||||||||
Outstanding, October 6, 2013 | 526 | 139 | — | — | ||||||||||
Schedule of recognized expense from stock-based compensation | ' | |||||||||||||
We recognized expense from stock-based compensation for the twelve and forty weeks ended October 6, 2013 and September 30, 2012 as follows (in thousands): | ||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||
October 6, | September 30, | October 6, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Labor related | $ | 25 | $ | 66 | $ | 129 | $ | 294 | ||||||
Selling, general and administrative related | 831 | 828 | 2,970 | 2,870 | ||||||||||
Total stock-based compensation | $ | 856 | $ | 894 | $ | 3,099 | $ | 3,164 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Oct. 06, 2013 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Schedule of computations for basic and diluted earnings per share | ' | |||||||||||||
The computations for basic and diluted earnings per share are as follows (in thousands, except per share data): | ||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||
October 6, | September 30, | October 6, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net income | $ | 4,661 | $ | 3,533 | $ | 25,280 | $ | 21,839 | ||||||
Basic weighted average shares outstanding | 14,328 | 14,300 | 14,189 | 14,517 | ||||||||||
Dilutive effect of stock options and awards | 272 | 239 | 283 | 261 | ||||||||||
Dilutive weighted average shares outstanding | 14,600 | 14,539 | 14,472 | 14,778 | ||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | 0.33 | $ | 0.25 | $ | 1.78 | $ | 1.5 | ||||||
Diluted | $ | 0.32 | $ | 0.24 | $ | 1.75 | $ | 1.48 |
Derivative_and_Other_Comprehen1
Derivative and Other Comprehensive Income (Tables) | 9 Months Ended | |||||||
Oct. 06, 2013 | ||||||||
Derivative and Other Comprehensive Income | ' | |||||||
Schedule of fair value and presentation of interest rate hedging instruments in condensed consolidated balance sheets | ' | |||||||
The following table summarizes the fair value and presentation in the condensed consolidated balance sheets of the interest rate swap as hedging instruments as of October 6, 2013, and December 30, 2012 (in thousands): | ||||||||
Derivative Liability | ||||||||
Balance Sheet Location | Fair Value at | Fair Value at | ||||||
October 6, | December 30, | |||||||
2013 | 2012 | |||||||
Accrued liabilities | $ | 495 | $ | 539 | ||||
Other non-current liabilities | 248 | 677 | ||||||
Total derivative liability | $ | 743 | $ | 1,216 | ||||
Schedule of components of accumulated other comprehensive income | ' | |||||||
The components of accumulated other comprehensive income at the end of each period were as follows (in thousands): | ||||||||
October 6, | December 30, | |||||||
2013 | 2012 | |||||||
Unrealized (loss) gain related to cash flow hedges, pretax | $ | (13 | ) | $ | 9 | |||
Tax effect | 1 | (4 | ) | |||||
Accumulated other comprehensive (loss) income, net | $ | (12 | ) | $ | 5 | |||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | |||||||||||||
Oct. 06, 2013 | ||||||||||||||
Fair Value Measurement | ' | |||||||||||||
Schedule of fair value of assets and liabilities measured on a recurring basis | ' | |||||||||||||
The following table presents our assets and liabilities that are fair valued on a recurring basis as of October 6, 2013 and December 30, 2012 (in thousands): | ||||||||||||||
October 6, | Level 1 | Level 2 | Level 3 | |||||||||||
2013 | ||||||||||||||
Assets: | ||||||||||||||
Investments in rabbi trust | $ | 3,418 | $ | 3,418 | $ | — | $ | — | ||||||
Total assets measured at fair value | $ | 3,418 | $ | 3,418 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||||
Derivative — interest rate swap | $ | 743 | $ | — | $ | 743 | $ | — | ||||||
Total liabilities measured at fair value | $ | 743 | $ | — | $ | 743 | $ | — | ||||||
December 30, | Level 1 | Level 2 | Level 3 | |||||||||||
2012 | ||||||||||||||
Assets: | ||||||||||||||
Life insurance policies | $ | 2,920 | $ | — | $ | 2,920 | $ | — | ||||||
Total assets measured at fair value | $ | 2,920 | $ | — | $ | 2,920 | $ | — | ||||||
Liabilities | ||||||||||||||
Derivative — interest rate swap | $ | 1,216 | $ | — | $ | 1,216 | $ | — | ||||||
Deferred compensation plan | 2,974 | — | 2,974 | — | ||||||||||
Total liabilities measured at fair value | $ | 4,190 | $ | — | $ | 4,190 | $ | — |
Basis_of_Presentation_and_Rece1
Basis of Presentation and Recent Accounting Pronouncements (Details) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||||
Oct. 06, 2013 | Jul. 14, 2013 | Sep. 30, 2012 | Jul. 08, 2012 | Apr. 21, 2013 | Apr. 15, 2012 | Oct. 06, 2013 | Sep. 30, 2012 | |
item | ||||||||
Basis of Presentation and Recent Accounting Pronouncements | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | ' | ' | 1 | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | 1 | ' |
Length of reporting period | '84 days | '84 days | '84 days | '84 days | '112 days | '112 days | '280 days | '280 days |
Company-owned operated restaurants | ' | ' | ' | ' | ' | ' | ' | ' |
Basis of Presentation and Recent Accounting Pronouncements | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants | 350 | ' | ' | ' | ' | ' | 350 | ' |
Number of states in which restaurants are located | 33 | ' | ' | ' | ' | ' | 33 | ' |
Franchised restaurants | ' | ' | ' | ' | ' | ' | ' | ' |
Basis of Presentation and Recent Accounting Pronouncements | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants | 135 | ' | ' | ' | ' | ' | 135 | ' |
Number of states in which restaurants are located | 21 | ' | ' | ' | ' | ' | 21 | ' |
Number of Canadian provinces in which restaurants are located | 2 | ' | ' | ' | ' | ' | 2 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 06, 2013 | Sep. 30, 2012 | Dec. 30, 2012 |
Goodwill | ' | ' | ' |
Balance at beginning of period | $62,525 | $61,769 | $61,769 |
Acquisitions/dispositions | ' | ' | 756 |
Balance at end of period | 62,525 | ' | 62,525 |
Historical goodwill impairment losses | 0 | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Gross Carrying Amount | 67,031 | ' | 65,358 |
Accumulated Amortization | -30,923 | ' | -28,155 |
Total | 36,108 | ' | 37,203 |
Impairments of intangible assets | 0 | 0 | ' |
Franchise rights | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Gross Carrying Amount | 43,603 | ' | 43,519 |
Accumulated Amortization | -17,225 | ' | -15,342 |
Total | 26,378 | ' | 28,177 |
Leasehold interests | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Gross Carrying Amount | 12,744 | ' | 12,744 |
Accumulated Amortization | -4,887 | ' | -4,313 |
Total | 7,857 | ' | 8,431 |
Liquor licenses | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Gross Carrying Amount | 10,684 | ' | 9,095 |
Accumulated Amortization | -8,811 | ' | -8,500 |
Total | $1,873 | ' | $595 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | Oct. 06, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Aggregate future amortization expense | ' | ' |
Remainder of 2013 | $732 | ' |
2014 | 3,282 | ' |
2015 | 3,181 | ' |
2016 | 3,115 | ' |
2017 | 3,055 | ' |
Thereafter | 22,743 | ' |
Total | $36,108 | $37,203 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Oct. 06, 2013 | Sep. 30, 2012 |
Stock Options | ' | ' |
Weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model | ' | ' |
Risk-free interest rate (as a percent) | 0.70% | 0.70% |
Expected years until exercise | '4 years 2 months 12 days | '4 years 1 month 6 days |
Expected stock volatility (as a percent) | 44.40% | 52.80% |
Dividend yield (as a percent) | 0.00% | 0.00% |
Weighted average Black-Scholes fair value per share at date of grant (in dollars per share) | $15.19 | $14.60 |
Shares | ' | ' |
Outstanding, beginning of period (in shares) | 705 | ' |
Granted (in shares) | 129 | ' |
Options Exercised (in shares) | -264 | ' |
Cancelled (in shares) | -44 | ' |
Outstanding, end of period (in shares) | 526 | ' |
Restricted Stock Units | ' | ' |
Shares | ' | ' |
Outstanding, beginning of period (in shares) | 180 | ' |
Granted (in shares) | 72 | ' |
Units Vested (in shares) | -104 | ' |
Cancelled (in shares) | -9 | ' |
Outstanding, end of period (in shares) | 139 | ' |
Restricted Stock | ' | ' |
Shares | ' | ' |
Outstanding, beginning of period (in shares) | 4 | ' |
Units Vested (in shares) | -4 | ' |
Performance Stock Units | ' | ' |
Shares | ' | ' |
Outstanding, beginning of period (in shares) | 35 | ' |
Granted (in shares) | 6 | ' |
Units Vested (in shares) | -41 | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 06, 2013 | Sep. 30, 2012 | Oct. 06, 2013 | Sep. 30, 2012 |
Recognized expense from stock-based compensation | ' | ' | ' | ' |
Total stock-based compensation | $856 | $894 | $3,099 | $3,164 |
Labor related | ' | ' | ' | ' |
Recognized expense from stock-based compensation | ' | ' | ' | ' |
Total stock-based compensation | 25 | 66 | 129 | 294 |
Selling, general and administrative related | ' | ' | ' | ' |
Recognized expense from stock-based compensation | ' | ' | ' | ' |
Total stock-based compensation | $831 | $828 | $2,970 | $2,870 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Oct. 06, 2013 | Sep. 30, 2012 | Oct. 06, 2013 | Sep. 30, 2012 |
Earnings Per Share | ' | ' | ' | ' |
Weighted average stock options outstanding excluded from computation of diluted earnings per share (in shares) | 5,000 | 293,000 | 102,000 | 306,000 |
Net income | $4,661 | $3,533 | $25,280 | $21,839 |
Basic weighted average shares outstanding | 14,328,000 | 14,300,000 | 14,189,000 | 14,517,000 |
Dilutive effect of stock options and awards (in shares) | 272,000 | 239,000 | 283,000 | 261,000 |
Dilutive weighted average shares outstanding | 14,600,000 | 14,539,000 | 14,472,000 | 14,778,000 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.33 | $0.25 | $1.78 | $1.50 |
Diluted (in dollars per share) | $0.32 | $0.24 | $1.75 | $1.48 |
Acquisition_of_Red_Robin_Franc1
Acquisition of Red Robin Franchised Restaurant (Details) (USD $) | 0 Months Ended |
Jun. 19, 2012 | |
item | |
Acquisition of Red Robin Franchised Restaurant | ' |
Number of franchisees from whom the company acquired assets of restaurant | 1 |
Red Robin Franchised Restaurants | ' |
Acquisition of Red Robin Franchised Restaurant | ' |
Number of restaurants acquired from franchisee | 1 |
Purchase price of acquisition | 3,200,000 |
Allocation of purchase price | ' |
Intangibles | 1,900,000 |
Goodwill | 756,000 |
Fixed assets | 540,000 |
Inventory | 47,000 |
Advertising_and_Marketing_Cost1
Advertising and Marketing Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Oct. 06, 2013 | Sep. 30, 2012 | Oct. 06, 2013 | Sep. 30, 2012 |
item | ||||
Advertising and Marketing Costs | ' | ' | ' | ' |
Advertising and marketing costs | $8.40 | $6.90 | $27.20 | $24.90 |
Number of marketing and national media advertising funds to which the entity and franchisees must contribute a minimum percentage of revenue | ' | ' | 2 | ' |
Derivative_and_Other_Comprehen2
Derivative and Other Comprehensive Income (Details) (USD $) | Dec. 14, 2012 | Oct. 06, 2013 | Dec. 30, 2012 | Aug. 05, 2011 |
In Millions, unless otherwise specified | Amended credit facility | Variable-to-fixed interest rate swap agreement | Variable-to-fixed interest rate swap agreement | Variable-to-fixed interest rate swap agreement |
Rabobank | Rabobank | Rabobank | ||
item | ||||
Derivative and other comprehensive income | ' | ' | ' | ' |
Number of derivative instruments held | ' | 1 | ' | ' |
Notional amount of derivatives | ' | $61.90 | ' | $74.10 |
Notional amount of derivatives expired | ' | 6.6 | 4.7 | ' |
Estimated notional hedge amount on expiration date which is June 30, 2015 | ' | 50.6 | ' | ' |
Fixed rate of interest on derivative (as a percent) | ' | 1.14% | ' | ' |
Reference rate for variable rate received on interest rate derivative | ' | '3-month spot LIBOR | ' | ' |
Amount of debt hedged | $225 | ' | ' | ' |
Derivative_and_Other_Comprehen3
Derivative and Other Comprehensive Income (Details 2) (Designated as hedging instruments, Interest rate swap agreements, USD $) | Oct. 06, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Designated as hedging instruments | Interest rate swap agreements | ' | ' |
Derivative and other comprehensive income | ' | ' |
Accrued liabilities | $495 | $539 |
Other non-current liabilities | 248 | 677 |
Total derivative liability | $743 | $1,216 |
Derivative_and_Other_Comprehen4
Derivative and Other Comprehensive Income (Details 3) (USD $) | Oct. 06, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated other comprehensive income | ' | ' |
Unrealized (loss) gain related to cash flow hedges, pretax | ($13) | $9 |
Tax effect | 1 | -4 |
Accumulated other comprehensive (loss) income, net | ($12) | $5 |
Fair_Value_Measurement_Details
Fair Value Measurement (Details) (USD $) | 3 Months Ended | |
Oct. 06, 2013 | Dec. 30, 2012 | |
Fair Value Measurement | ' | ' |
Cash realized from liquidation of insurance policies | $3,300,000 | ' |
Cash surrender value | ' | 2,900,000 |
Liabilities: | ' | ' |
Deferred compensation plan | ' | 3,000,000 |
Recurring | Fair value | ' | ' |
Assets: | ' | ' |
Investments in rabbi trust | 3,418,000 | ' |
Life insurance policies | ' | 2,920,000 |
Total assets measured at fair value | 3,418,000 | 2,920,000 |
Liabilities: | ' | ' |
Derivative - interest rate swap | 743,000 | 1,216,000 |
Deferred compensation plan | ' | 2,974,000 |
Total liabilities measured at fair value | 743,000 | 4,190,000 |
Recurring | Level 1 | ' | ' |
Assets: | ' | ' |
Investments in rabbi trust | 3,418,000 | ' |
Total assets measured at fair value | 3,418,000 | ' |
Recurring | Level 2 | ' | ' |
Assets: | ' | ' |
Life insurance policies | ' | 2,920,000 |
Total assets measured at fair value | ' | 2,920,000 |
Liabilities: | ' | ' |
Derivative - interest rate swap | 743,000 | 1,216,000 |
Deferred compensation plan | ' | 2,974,000 |
Total liabilities measured at fair value | $743,000 | $4,190,000 |
Fair_Value_Measurement_Details1
Fair Value Measurement (Details 2) (USD $) | Oct. 06, 2013 | Dec. 30, 2012 |
In Millions, unless otherwise specified | ||
Carrying amount | ' | ' |
Disclosures of Fair Value of Other Assets and Liabilities | ' | ' |
Credit facility | $81.50 | $125 |
Capital lease obligations | 9.4 | 10 |
Fair value | Level 2 | ' | ' |
Disclosures of Fair Value of Other Assets and Liabilities | ' | ' |
Credit facility | 81.4 | 124.4 |
Capital lease obligations | $11 | $11.80 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Former franchisee appointed as board member, USD $) | 12 Months Ended | 53 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2006 | 31-May-13 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Sep. 30, 2012 | Oct. 06, 2013 | Sep. 30, 2012 |
item | item | item | Minimum | Maximum | Three privately-held entities | Three privately-held entities | Three privately-held entities | Three privately-held entities | |
item | item | ||||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of former franchisees with board member service | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants acquired from member | 13 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of interests held in privately-held entity that hold leases for restaurants owned by the entity | ' | ' | ' | 45.00% | 100.00% | ' | ' | ' | ' |
Number of privately-held entities | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Number of restaurants for which privately-held entities hold leases | ' | ' | ' | ' | ' | 3 | ' | 3 | ' |
Rent and other related payments | ' | ' | ' | ' | ' | $0.30 | $0.20 | $0.90 | $0.90 |