Document and Entity Information
Document and Entity Information - shares | 4 Months Ended | |
Apr. 22, 2018 | May 22, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | RED ROBIN GOURMET BURGERS INC | |
Entity Central Index Key | 1,171,759 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 22, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 12,984,746 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 22, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 23,673 | $ 17,714 |
Accounts receivable, net | 12,098 | 26,499 |
Inventories | 29,388 | 29,553 |
Prepaid expenses and other current assets | 15,559 | 31,038 |
Total current assets | 80,718 | 104,804 |
Property and equipment, net | 626,852 | 638,151 |
Goodwill | 96,733 | 96,979 |
Intangible assets, net | 36,991 | 38,273 |
Other assets, net | 33,351 | 32,408 |
Total assets | 874,645 | 910,615 |
Current liabilities: | ||
Accounts payable | 33,828 | 35,347 |
Accrued payroll and payroll-related liabilities | 39,864 | 32,777 |
Unearned revenue | 43,364 | 55,915 |
Accrued liabilities and other | 37,222 | 36,300 |
Total current liabilities | 154,278 | 160,339 |
Deferred rent | 75,146 | 74,980 |
Long-term debt | 231,375 | 266,375 |
Long-term portion of capital lease obligations | 10,003 | 10,197 |
Other non-current liabilities | 11,139 | 11,289 |
Total liabilities | 481,941 | 523,180 |
Stockholders’ equity: | ||
Common stock, $0.001 par value: 45,000 shares authorized; 17,851 and 17,851 shares issued; 12,980 and 12,954 shares outstanding | 18 | 18 |
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Treasury stock 4,871 and 4,897 shares, at cost | (201,443) | (202,485) |
Paid-in capital | 210,828 | 210,708 |
Accumulated other comprehensive loss, net of tax | (3,839) | (3,566) |
Retained earnings | 387,140 | 382,760 |
Total stockholders’ equity | 392,704 | 387,435 |
Total liabilities and stockholders’ equity | $ 874,645 | $ 910,615 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 22, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 17,851,000 | 17,851,000 |
Common stock, shares outstanding | 12,980,000 | 12,954,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 4,871,000 | 4,897,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
Revenues: | ||
Total revenues | $ 421,519 | $ 420,629 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||
Cost of sales | 98,515 | 94,607 |
Labor | 143,015 | 145,519 |
Other operating | 55,025 | 52,064 |
Occupancy | 35,010 | 33,119 |
Depreciation and amortization | 29,193 | 28,044 |
Selling, general, and administrative expenses | 46,318 | 47,963 |
Pre-opening costs | 1,137 | 1,855 |
Other charges | 6,287 | 0 |
Total costs and expenses | 414,500 | 403,171 |
Income from operations | 7,019 | 17,458 |
Other expense: | ||
Interest expense, net and other | 3,407 | 2,984 |
Income before income taxes | 3,612 | 14,474 |
(Benefit) provision for income taxes | (768) | 2,907 |
Net income | $ 4,380 | $ 11,567 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.34 | $ 0.90 |
Diluted (in dollars per share) | $ 0.34 | $ 0.89 |
Weighted average shares outstanding: | ||
Basic (in shares) | 12,960 | 12,853 |
Diluted (in shares) | 13,065 | 12,953 |
Restaurant revenue | ||
Revenues: | ||
Total revenues | $ 414,702 | $ 413,451 |
Franchise and other revenues | ||
Revenues: | ||
Total revenues | $ 6,817 | $ 7,178 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,380 | $ 11,567 |
Foreign currency translation adjustment | (273) | 212 |
Other comprehensive (loss) income, net of tax | (273) | 212 |
Total comprehensive income | $ 4,107 | $ 11,779 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 4,380 | $ 11,567 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 29,193 | 28,044 |
Other charges - litigation contingencies | 4,000 | 0 |
Stock-based compensation expense | 1,287 | 886 |
Other, net | (1,941) | (435) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 14,576 | 10,752 |
Prepaid expenses and other current assets | 15,473 | 10,460 |
Trade accounts payable and accrued liabilities | 1,187 | 19,279 |
Unearned revenue | (11,546) | (11,219) |
Other operating assets and liabilities, net | 436 | 621 |
Net cash provided by operating activities | 57,045 | 69,955 |
Cash flows from investing activities: | ||
Purchases of property, equipment, and intangible assets | (15,874) | (24,548) |
Proceeds from sales of real estate and property, plant, and equipment and other investing activities | 115 | 113 |
Net cash used in investing activities | (15,759) | (24,435) |
Cash flows from financing activities: | ||
Borrowings of long-term debt | 69,000 | 44,500 |
Payments of long-term debt and capital leases | (104,183) | (80,163) |
Debt issuance costs | 0 | (664) |
Proceeds from exercise of stock options and employee stock purchase plan and tax benefit from exercise of stock options | 295 | 1,212 |
Net cash used in financing activities | (34,888) | (35,115) |
Effect of exchange rate changes on cash | (439) | 102 |
Net change in cash and cash equivalents | 5,959 | 10,507 |
Cash and cash equivalents, beginning of period | 17,714 | 11,732 |
Cash and cash equivalents, end of period | 23,673 | 22,239 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 213 | 116 |
Interest paid, net of amounts capitalized | 3,085 | 3,127 |
Change in construction related payables | $ 1,151 | $ 3,061 |
Basis of Presentation and Recen
Basis of Presentation and Recent Accounting Pronouncements | 4 Months Ended |
Apr. 22, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Recent Accounting Pronouncements | Basis of Presentation and Recent Accounting Pronouncements Red Robin Gourmet Burgers, Inc., a Delaware corporation, together with its subsidiaries (“Red Robin” or the “Company”), primarily develops, operates, and franchises full-service restaurants in North America. As of April 22, 2018 , the Company owned and operated 484 restaurants located in 39 states and two Canadian provinces. The Company also had 87 franchised full-service restaurants in 15 states as of April 22, 2018 . 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. 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. 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”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. 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 31, 2017 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. 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 31, 2017 , filed with the SEC on February 27, 2018. The Company’s quarter that ended April 22, 2018 is referred to as first quarter 2018, or the sixteen weeks ended April 22, 2018 ; the quarter ended April 16, 2017 is referred to as first quarter 2017, or the sixteen weeks ended April 16, 2017 . The Company’s fiscal year 2018 comprises 52 weeks and will end on December 30, 2018 . Reclassifications Certain amounts presented in prior periods have been reclassified to conform with the current period presentation. For the sixteen weeks ended April 16, 2017 , the Company reclassified local marketing costs of $2.6 million from Other operating to Selling, general, and administrative expenses on the condensed consolidated statements of operations. Management believes this presentation better reflects marketing expenses subject to corporate, rather than restaurant-level, decision making. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Update 2016-02, Leases (“Topic 842”). This guidance requires the recognition of liabilities for lease obligations and corresponding right-of-use assets on the balance sheet and disclosure of key information about leasing arrangements. This guidance is effective for annual and interim reporting periods beginning after December 15, 2018 using a modified retrospective adoption method. Early adoption is permitted. The Company will adopt this guidance beginning with its fiscal first quarter 2019. We will elect to apply the practical expedients that do not require us to reassess existing contracts for embedded leases or to reassess lease classification or initial direct costs. The Company selected and began implementing a new lease management system during 2017. Once the transition to the new system is completed in 2018, this software will enable us to quantify the full impact Topic 842 will have on our consolidated financial statements. We expect adoption of Topic 842 will result in a significant increase in the assets and liabilities on our consolidated balance sheets. Recently Adopted Accounting Standards Revenue In May 2014, the FASB issued Revenue from Contracts with Customers (“Topic 606”), subsequently amended by various standard updates. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The Company adopted Topic 606 in first quarter 2018 and applied the guidance retrospectively to all prior periods presented. Topic 606 impacts the accounting treatment of the Company’s advertising contribution funds, and the Company’s financial statements, as outlined below. Advertising Fund Contributions Under Red Robin franchise agreements, the Company and its franchisees are required to contribute a certain percentage of revenues to two national media advertising funds. The Company’s national advertising services are provided on a system-wide basis and, therefore, not considered distinct performance obligations for individual franchisees. The Company previously recorded the advertising contributions from franchisees as a reduction to advertising expense under Selling, general, and administrative expenses. In accordance with Topic 606, the Company recognizes these sales-based advertising contributions from franchisees as franchise revenue when the underlying franchisee sales occur. The Company records the related advertising expenses as incurred under Selling, general, and administrative expenses. When an advertising fund is over-spent at year end, advertising expenses will be reported on the consolidated statement of operations in an amount that is greater than the revenue recorded for advertising contributions. Conversely, when an advertising fund is under-spent at year end, the Company will accrue advertising costs up to advertising contributions recorded in revenue. All prior periods presented have been retrospectively adjusted for this change in accounting policy. The adoption of this standard did not impact previously reported amounts of net income. Impacts on Financial Statements The following table summarizes the impact of Topic 606 adoption on previously reported results on the Company’s consolidated statements of operations (in thousands): Sixteen Weeks Ended April 16, 2017 As previously reported Adjustments As adjusted Franchise and other revenue $ 5,106 $ 2,072 $ 7,178 Selling, general, and administrative expenses (1) 45,891 2,072 47,963 _____________________________ (1) Selling, general, and administrative expenses were previously reported as $43.3 million prior to the reclassification of $2.6 million of local marketing costs for first quarter 2017. See “Reclassifications” under this Note 1, Basis of Presentation and Recent Accounting Pronouncements . Revenue recognition Revenues consist of sales from restaurant operations; franchise revenue; and other revenue, including gift card breakage and miscellaneous revenue. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest, franchisee, or other customer. Restaurant revenue 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 beverage to the customer has been satisfied. The Company sells gift cards which do not have an expiration date, and it does not deduct dormancy fees from outstanding gift card balances. We recognize revenue from gift cards as either: (i) Restaurant revenue, when the Company’s performance obligation to provide food and beverage to the customer is satisfied upon redemption of the gift card, or (ii) gift card breakage, as discussed in Other revenue below. Red Robin Royalty™ deferred revenue primarily relates to a program in which registered members earn an award for a free entrée for every nine entrées purchased. We recognize the current sale of an entrée and defer a portion of the revenue to reflect partial pre-payment for the future entrée the member is entitled to receive. We estimate the future value of the award based on the historical average value of redemptions. We also estimate what portion of registered members are not likely to reach the ninth purchase based on historical activity and recognize the deferred revenue related to those purchases. We recognize the deferred revenue in restaurant revenue on earned rewards when the Company satisfies its performance obligation at redemption, or upon expiration. We compare the estimate of the value of future awards to historical redemptions to evaluate the reasonableness of the deferred amount. Franchise revenue Revenues we receive from our franchise arrangements include sales-based royalties and advertising fund contributions, area development fees, and franchise fees. Red Robin franchisees are required to remit 4.0% of their revenues as royalties to the Company and contribute between 0.5% and 2.5% of revenues to two national media advertising funds. The Company recognizes these sales-based royalties and advertising fund contributions as the underlying franchisee sales occur. The Company also provides its franchisees with management expertise, training, pre-opening assistance, and restaurant operating assistance in exchange for area development fees and franchise fees. The Company capitalizes these fees upon collection from the franchisee, which then amortize over the contracted franchise term as the services comprising the performance obligation are satisfied. The Company typically grants franchise rights to franchisees for a term of 20 years, with the right to extend the term for an additional ten years if various conditions are satisfied by the franchisee. Other revenue 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. Other revenue also consists of miscellaneous revenues considered insignificant to the Company’s business. Disaggregation of revenue In the following table, revenue is disaggregated by type of good or service (in thousands): Sixteen Weeks Ended April 22, 2018 April 16, 2017 Restaurant revenue $ 414,702 $ 413,451 Franchise revenue 5,443 5,536 Other revenue 1,374 1,642 Total revenues $ 421,519 $ 420,629 Contract liabilities Unearned gift card revenue at April 22, 2018 and December 31, 2017 was $33.1 million and $45.4 million . Deferred loyalty revenue, which was also included in Unearned revenue in the accompanying condensed consolidated balance sheets, was $10.3 million and $10.6 million at April 22, 2018 and December 31, 2017 . Revenue recognized in the condensed consolidated statement of operations for the redemption of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands): Sixteen Weeks Ended April 22, 2018 April 16, 2017 Gift card revenue $ 13,988 $ 14,321 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 4 Months Ended |
Apr. 22, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents goodwill as of April 22, 2018 and December 31, 2017 (in thousands): Balance, December 31, 2017 $ 96,979 Foreign currency translation adjustment (246 ) Balance, April 22, 2018 $ 96,733 The Company recorded no goodwill impairment losses in the period presented in the table above or any prior periods. The following table presents intangible assets as of April 22, 2018 and December 31, 2017 (in thousands): April 22, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Franchise rights $ 54,437 $ (30,759 ) $ 23,678 $ 54,447 $ (29,685 ) $ 24,762 Favorable leases 13,001 (7,672 ) 5,329 13,001 (7,459 ) 5,542 Liquor licenses 10,171 (9,675 ) 496 10,148 (9,667 ) 481 $ 77,609 $ (48,106 ) $ 29,503 $ 77,596 $ (46,811 ) $ 30,785 Indefinite-lived intangible assets: Liquor licenses and other $ 7,488 $ — $ 7,488 $ 7,488 $ — $ 7,488 Intangible assets, net $ 85,097 $ (48,106 ) $ 36,991 $ 85,084 $ (46,811 ) $ 38,273 There were no impairments to intangible assets during the sixteen weeks ended April 22, 2018 . |
Earnings Per Share
Earnings Per Share | 4 Months Ended |
Apr. 22, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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. The Company uses the treasury stock method to calculate the effect of outstanding stock options. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Sixteen Weeks Ended April 22, 2018 April 16, 2017 Basic weighted average shares outstanding 12,960 12,853 Dilutive effect of stock options and awards 105 100 Diluted weighted average shares outstanding 13,065 12,953 Awards excluded due to anti-dilutive effect on diluted earnings per share 279 261 |
Other Charges
Other Charges | 4 Months Ended |
Apr. 22, 2018 | |
Other Income and Expenses [Abstract] | |
Other Charges | Other Charges Other charges consist of the following (in thousands): Sixteen Weeks Ended April 22, 2018 April 16, 2017 Litigation contingencies $ 4,000 $ — Reorganization costs 2,287 — Other charges $ 6,287 $ — In first quarter 2018, the Company recorded $4.0 million of litigation contingencies for employment-related claims. The Company also recorded $2.3 million in costs related to reorganization during first quarter 2018. |
Borrowings
Borrowings | 4 Months Ended |
Apr. 22, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Borrowings as of April 22, 2018 and December 31, 2017 are summarized below (in thousands): April 22, 2018 December 31, 2017 Revolving credit facility and other long-term debt $ 231,375 $ 266,375 Capital lease obligations 10,754 10,938 Total debt 242,129 277,313 Less: Current portion (751 ) (741 ) Long-term debt $ 241,378 $ 276,572 On June 30, 2016 , the Company entered into a credit facility (the “Credit Facility”), which provides for a $400 million revolving line of credit with a sublimit for the issuance of up to $25 million in letters of credit and swingline loans up to $15 million . On April 13, 2017, the Company entered into the first amendment (the “Amendment”) to the Credit Facility. The Amendment increased the lease adjusted leverage ratio to 5.25 x through October 1, 2017 before stepping down to 5.0 x through July 15, 2018 and returning to 4.75 x thereafter. The Amendment also provides for additional pricing tiers that increase LIBOR spread rates and commitment fees to the extent the Company’s lease adjusted leverage ratio exceeds 4.75 x, in addition to revising terms for permitted acquisitions and investments. The Amendment is effective through October 7, 2018 and is cancelable at the Company’s discretion. Upon termination of the Amendment, the terms of the Credit Facility executed on June 30, 2016 remain effective. The Credit Facility matures on June 30, 2021 . As of April 22, 2018 , the Company had outstanding borrowings under the Credit Facility of $230.5 million , in addition to amounts issued under letters of credit of $7.5 million , which reduced the amount available under the facility but were not recorded as debt. As of December 31, 2017 , the Company had outstanding borrowings under the Credit Facility of $265.5 million , in addition to amounts issued under letters of credit of $7.6 million . Loan origination costs associated with the Credit Facility are included as deferred costs in Other assets, net in the accompanying condensed consolidated balance sheets. Unamortized debt issuance costs were $2.2 million and $2.4 million as of April 22, 2018 and December 31, 2017 . |
Fair Value Measurements
Fair Value Measurements | 4 Months Ended |
Apr. 22, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short term nature or maturity of the instruments. The following tables present the Company’s assets measured at fair value on a recurring basis as of April 22, 2018 and December 31, 2017 (in thousands): April 22, 2018 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 9,157 $ 9,157 $ — $ — Total assets measured at fair value $ 9,157 $ 9,157 $ — $ — December 31, 2017 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 9,292 $ 9,292 $ — $ — Total assets measured at fair value $ 9,292 $ 9,292 $ — $ — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, goodwill, and other intangible assets. These assets are measured at fair value if determined to be impaired. As of April 22, 2018 , the Company had no non-financial assets or liabilities that were measured using level 3 inputs. As of December 31, 2017 , the Company measured non-financial assets for impairment using continuing and projected future cash flows, which were based on significant inputs not observable in the market and thus represented a level 3 fair value measurement. 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 condensed consolidated balance sheets. Both the Credit Facility and the Company’s capital lease obligations are considered to be level 2 instruments. The carrying value of the Credit Facility approximates fair value as the interest rate on this instrument approximates current market rates. For disclosure purposes, the Company estimated the fair value of the capital lease obligations using discounted cash flow analysis based on market rates obtained from independent third parties for similar types of debt. The following table presents the carrying value and estimated fair value of the Company’s capital lease obligations as of April 22, 2018 and December 31, 2017 (in thousands): April 22, 2018 December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Capital lease obligations $ 10,754 $ 11,055 $ 10,938 $ 11,563 |
Commitments and Contingencies
Commitments and Contingencies | 4 Months Ended |
Apr. 22, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments 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. Evaluating contingencies related to litigation is a complex process involving subjective judgment on the potential outcome of future events, and the ultimate resolution of litigated claims may differ from our current analysis. We review the adequacy of accruals and disclosures pertaining to litigation matters each quarter in consultation with legal counsel, and we assess the probability and range of possible losses associated with contingencies for potential accrual in the consolidated financial statements. While it is not possible to predict the outcome of these 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. In first quarter 2018, the Company recorded $4.0 million of litigation contingencies for employment-related claims. Refer to Note 4, Other Charges . |
Basis of Presentation and Rec14
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 4 Months Ended |
Apr. 22, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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. 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. 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”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. 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 31, 2017 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. 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 31, 2017 , filed with the SEC on February 27, 2018. The Company’s quarter that ended April 22, 2018 is referred to as first quarter 2018, or the sixteen weeks ended April 22, 2018 ; the quarter ended April 16, 2017 is referred to as first quarter 2017, or the sixteen weeks ended April 16, 2017 . The Company’s fiscal year 2018 comprises 52 weeks and will end on December 30, 2018 . |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Update 2016-02, Leases (“Topic 842”). This guidance requires the recognition of liabilities for lease obligations and corresponding right-of-use assets on the balance sheet and disclosure of key information about leasing arrangements. This guidance is effective for annual and interim reporting periods beginning after December 15, 2018 using a modified retrospective adoption method. Early adoption is permitted. The Company will adopt this guidance beginning with its fiscal first quarter 2019. We will elect to apply the practical expedients that do not require us to reassess existing contracts for embedded leases or to reassess lease classification or initial direct costs. The Company selected and began implementing a new lease management system during 2017. Once the transition to the new system is completed in 2018, this software will enable us to quantify the full impact Topic 842 will have on our consolidated financial statements. We expect adoption of Topic 842 will result in a significant increase in the assets and liabilities on our consolidated balance sheets. Recently Adopted Accounting Standards Revenue In May 2014, the FASB issued Revenue from Contracts with Customers (“Topic 606”), subsequently amended by various standard updates. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The Company adopted Topic 606 in first quarter 2018 and applied the guidance retrospectively to all prior periods presented. |
Revenue Recognition | Revenue recognition Revenues consist of sales from restaurant operations; franchise revenue; and other revenue, including gift card breakage and miscellaneous revenue. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest, franchisee, or other customer. Restaurant revenue 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 beverage to the customer has been satisfied. The Company sells gift cards which do not have an expiration date, and it does not deduct dormancy fees from outstanding gift card balances. We recognize revenue from gift cards as either: (i) Restaurant revenue, when the Company’s performance obligation to provide food and beverage to the customer is satisfied upon redemption of the gift card, or (ii) gift card breakage, as discussed in Other revenue below. Red Robin Royalty™ deferred revenue primarily relates to a program in which registered members earn an award for a free entrée for every nine entrées purchased. We recognize the current sale of an entrée and defer a portion of the revenue to reflect partial pre-payment for the future entrée the member is entitled to receive. We estimate the future value of the award based on the historical average value of redemptions. We also estimate what portion of registered members are not likely to reach the ninth purchase based on historical activity and recognize the deferred revenue related to those purchases. We recognize the deferred revenue in restaurant revenue on earned rewards when the Company satisfies its performance obligation at redemption, or upon expiration. We compare the estimate of the value of future awards to historical redemptions to evaluate the reasonableness of the deferred amount. Franchise revenue Revenues we receive from our franchise arrangements include sales-based royalties and advertising fund contributions, area development fees, and franchise fees. Red Robin franchisees are required to remit 4.0% of their revenues as royalties to the Company and contribute between 0.5% and 2.5% of revenues to two national media advertising funds. The Company recognizes these sales-based royalties and advertising fund contributions as the underlying franchisee sales occur. The Company also provides its franchisees with management expertise, training, pre-opening assistance, and restaurant operating assistance in exchange for area development fees and franchise fees. The Company capitalizes these fees upon collection from the franchisee, which then amortize over the contracted franchise term as the services comprising the performance obligation are satisfied. The Company typically grants franchise rights to franchisees for a term of 20 years, with the right to extend the term for an additional ten years if various conditions are satisfied by the franchisee. Other revenue 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. Other revenue also consists of miscellaneous revenues considered insignificant to the Company’s business. Advertising Fund Contributions Under Red Robin franchise agreements, the Company and its franchisees are required to contribute a certain percentage of revenues to two national media advertising funds. The Company’s national advertising services are provided on a system-wide basis and, therefore, not considered distinct performance obligations for individual franchisees. The Company previously recorded the advertising contributions from franchisees as a reduction to advertising expense under Selling, general, and administrative expenses. In accordance with Topic 606, the Company recognizes these sales-based advertising contributions from franchisees as franchise revenue when the underlying franchisee sales occur. The Company records the related advertising expenses as incurred under Selling, general, and administrative expenses. When an advertising fund is over-spent at year end, advertising expenses will be reported on the consolidated statement of operations in an amount that is greater than the revenue recorded for advertising contributions. Conversely, when an advertising fund is under-spent at year end, the Company will accrue advertising costs up to advertising contributions recorded in revenue. All prior periods presented have been retrospectively adjusted for this change in accounting policy. The adoption of this standard did not impact previously reported amounts of net income. |
Basis of Presentation and Rec15
Basis of Presentation and Recent Accounting Pronouncements (Tables) | 4 Months Ended |
Apr. 22, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of impact on consolidated statements of operations | The following table summarizes the impact of Topic 606 adoption on previously reported results on the Company’s consolidated statements of operations (in thousands): Sixteen Weeks Ended April 16, 2017 As previously reported Adjustments As adjusted Franchise and other revenue $ 5,106 $ 2,072 $ 7,178 Selling, general, and administrative expenses (1) 45,891 2,072 47,963 _____________________________ (1) Selling, general, and administrative expenses were previously reported as $43.3 million prior to the reclassification of $2.6 million of local marketing costs for first quarter 2017. See “Reclassifications” under this Note 1, Basis of Presentation and Recent Accounting Pronouncements . |
Schedule of revenue disaggregated by type of good or service | In the following table, revenue is disaggregated by type of good or service (in thousands): Sixteen Weeks Ended April 22, 2018 April 16, 2017 Restaurant revenue $ 414,702 $ 413,451 Franchise revenue 5,443 5,536 Other revenue 1,374 1,642 Total revenues $ 421,519 $ 420,629 |
Schedule of revenue recognized that were included in liability balances at the beginning of the fiscal year | Revenue recognized in the condensed consolidated statement of operations for the redemption of gift cards that were included in the liability balance at the beginning of the fiscal year was as follows (in thousands): Sixteen Weeks Ended April 22, 2018 April 16, 2017 Gift card revenue $ 13,988 $ 14,321 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 4 Months Ended |
Apr. 22, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents goodwill as of April 22, 2018 and December 31, 2017 (in thousands): Balance, December 31, 2017 $ 96,979 Foreign currency translation adjustment (246 ) Balance, April 22, 2018 $ 96,733 |
Schedule of intangible assets subject to amortization | The following table presents intangible assets as of April 22, 2018 and December 31, 2017 (in thousands): April 22, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Franchise rights $ 54,437 $ (30,759 ) $ 23,678 $ 54,447 $ (29,685 ) $ 24,762 Favorable leases 13,001 (7,672 ) 5,329 13,001 (7,459 ) 5,542 Liquor licenses 10,171 (9,675 ) 496 10,148 (9,667 ) 481 $ 77,609 $ (48,106 ) $ 29,503 $ 77,596 $ (46,811 ) $ 30,785 Indefinite-lived intangible assets: Liquor licenses and other $ 7,488 $ — $ 7,488 $ 7,488 $ — $ 7,488 Intangible assets, net $ 85,097 $ (48,106 ) $ 36,991 $ 85,084 $ (46,811 ) $ 38,273 |
Schedule of intangible assets not subject to amortization | The following table presents intangible assets as of April 22, 2018 and December 31, 2017 (in thousands): April 22, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Franchise rights $ 54,437 $ (30,759 ) $ 23,678 $ 54,447 $ (29,685 ) $ 24,762 Favorable leases 13,001 (7,672 ) 5,329 13,001 (7,459 ) 5,542 Liquor licenses 10,171 (9,675 ) 496 10,148 (9,667 ) 481 $ 77,609 $ (48,106 ) $ 29,503 $ 77,596 $ (46,811 ) $ 30,785 Indefinite-lived intangible assets: Liquor licenses and other $ 7,488 $ — $ 7,488 $ 7,488 $ — $ 7,488 Intangible assets, net $ 85,097 $ (48,106 ) $ 36,991 $ 85,084 $ (46,811 ) $ 38,273 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 4 Months Ended |
Apr. 22, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computations for basic and diluted earnings per share | Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Sixteen Weeks Ended April 22, 2018 April 16, 2017 Basic weighted average shares outstanding 12,960 12,853 Dilutive effect of stock options and awards 105 100 Diluted weighted average shares outstanding 13,065 12,953 Awards excluded due to anti-dilutive effect on diluted earnings per share 279 261 |
Other Charges (Tables)
Other Charges (Tables) | 4 Months Ended |
Apr. 22, 2018 | |
Other Income and Expenses [Abstract] | |
Summary of other charges | Other charges consist of the following (in thousands): Sixteen Weeks Ended April 22, 2018 April 16, 2017 Litigation contingencies $ 4,000 $ — Reorganization costs 2,287 — Other charges $ 6,287 $ — |
Borrowings (Tables)
Borrowings (Tables) | 4 Months Ended |
Apr. 22, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | Borrowings as of April 22, 2018 and December 31, 2017 are summarized below (in thousands): April 22, 2018 December 31, 2017 Revolving credit facility and other long-term debt $ 231,375 $ 266,375 Capital lease obligations 10,754 10,938 Total debt 242,129 277,313 Less: Current portion (751 ) (741 ) Long-term debt $ 241,378 $ 276,572 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 4 Months Ended |
Apr. 22, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets measured on recurring basis | The following tables present the Company’s assets measured at fair value on a recurring basis as of April 22, 2018 and December 31, 2017 (in thousands): April 22, 2018 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 9,157 $ 9,157 $ — $ — Total assets measured at fair value $ 9,157 $ 9,157 $ — $ — December 31, 2017 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 9,292 $ 9,292 $ — $ — Total assets measured at fair value $ 9,292 $ 9,292 $ — $ — |
Summary of fair value of debt | The following table presents the carrying value and estimated fair value of the Company’s capital lease obligations as of April 22, 2018 and December 31, 2017 (in thousands): April 22, 2018 December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Capital lease obligations $ 10,754 $ 11,055 $ 10,938 $ 11,563 |
Basis of Presentation and Rec21
Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Details) $ in Millions | 4 Months Ended | ||
Apr. 22, 2018USD ($)stateprovincefundrestaurantentreesegment | Apr. 16, 2017USD ($) | Dec. 31, 2017USD ($) | |
Franchisor Disclosure [Line Items] | |||
Number of operating segments | segment | 1 | ||
Number of reportable segments | segment | 1 | ||
Number of marketing and national media funds to which the entity and franchisees must contribute a minimum percentage of revenue | fund | 2 | ||
Number of entrees to be purchased for each free entree | entree | 9 | ||
Royalties as a percentage of franchised adjusted gross restaurant sales | 4.00% | ||
Term of franchise rights | 20 years | ||
Additional term of franchise rights | 10 years | ||
Unearned gift card revenue | |||
Franchisor Disclosure [Line Items] | |||
Contract liabilities | $ 33.1 | $ 45.4 | |
Deferred loyalty revenue | |||
Franchisor Disclosure [Line Items] | |||
Contract liabilities | $ 10.3 | $ 10.6 | |
Other Operating | Adjustments | |||
Franchisor Disclosure [Line Items] | |||
Local marketing costs | $ (2.6) | ||
Selling, General and Administrative Expenses | Adjustments | |||
Franchisor Disclosure [Line Items] | |||
Local marketing costs | $ 2.6 | ||
Company-owned operated restaurants | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | restaurant | 484 | ||
Number of states in which restaurants are located | state | 39 | ||
Number of Canadian provinces in which restaurants are located | province | 2 | ||
Franchised restaurants | |||
Franchisor Disclosure [Line Items] | |||
Number of restaurants | restaurant | 87 | ||
Number of states in which restaurants are located | state | 15 | ||
Minimum | |||
Franchisor Disclosure [Line Items] | |||
Royalties as a percentage of adjusted gross restaurant sales | 0.50% | ||
Maximum | |||
Franchisor Disclosure [Line Items] | |||
Royalties as a percentage of adjusted gross restaurant sales | 2.50% |
Basis of Presentation and Rec22
Basis of Presentation and Recent Accounting Pronouncements - Schedule of Impacts on Financial Statements (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Franchise and other revenues | $ 7,178 | |
Selling, general, and administrative expenses | $ 46,318 | 47,963 |
As previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Selling, general, and administrative expenses | 43,300 | |
Selling, General and Administrative Expenses | Adjustments | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Local marketing costs | (2,600) | |
Other Operating | Adjustments | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Local marketing costs | 2,600 | |
ASU 2014-09 | As previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Franchise and other revenues | 5,106 | |
Selling, general, and administrative expenses | 45,891 | |
ASU 2014-09 | Adjustments | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Franchise and other revenues | 2,072 | |
Selling, general, and administrative expenses | $ 2,072 |
Basis of Presentation and Rec23
Basis of Presentation and Recent Accounting Pronouncements - Schedule of Revenue Disaggregation by Product Type (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 421,519 | $ 420,629 |
Restaurant revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 414,702 | 413,451 |
Franchise revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 5,443 | 5,536 |
Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 1,374 | $ 1,642 |
Basis of Presentation and Rec24
Basis of Presentation and Recent Accounting Pronouncements - Schedule of Revenue Recognized Included in Liability Balances at Beginning of Fiscal Year (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
Gift card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized that was included in the contract liability balance at the beginning of the fiscal year | $ 13,988 | $ 14,321 |
Goodwill and Intangible Asset25
Goodwill and Intangible Assets - Summary of Goodwill Activity (Details) $ in Thousands | 4 Months Ended |
Apr. 22, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 96,979 |
Foreign currency translation adjustment | (246) |
Ending balance | $ 96,733 |
Goodwill and Intangible Asset26
Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Details) - USD ($) | 4 Months Ended | ||
Apr. 22, 2018 | Apr. 16, 2017 | Dec. 31, 2017 | |
Schedule of Intangible Assets [Line Items] | |||
Impairment to goodwill | $ 0 | $ 0 | |
Intangible Assets | |||
Gross Carrying Amount | 77,609,000 | $ 77,596,000 | |
Accumulated Amortization | (48,106,000) | (46,811,000) | |
Net Carrying Amount | 29,503,000 | 30,785,000 | |
Intangible assets, Gross Carrying Amount | 85,097,000 | 85,084,000 | |
Intangible assets, Net Carrying Amount | 36,991,000 | 38,273,000 | |
Impairment to intangible assets | 0 | ||
Liquor licenses and other | |||
Intangible Assets | |||
Gross Carrying Amount, Indefinite-lived intangible assets | 7,488,000 | 7,488,000 | |
Franchise rights | |||
Intangible Assets | |||
Gross Carrying Amount | 54,437,000 | 54,447,000 | |
Accumulated Amortization | (30,759,000) | (29,685,000) | |
Net Carrying Amount | 23,678,000 | 24,762,000 | |
Impairment to intangible assets | $ 0 | ||
Favorable leases | |||
Intangible Assets | |||
Gross Carrying Amount | 13,001,000 | 13,001,000 | |
Accumulated Amortization | (7,672,000) | (7,459,000) | |
Net Carrying Amount | 5,329,000 | 5,542,000 | |
Liquor licenses and other | |||
Intangible Assets | |||
Gross Carrying Amount | 10,171,000 | 10,148,000 | |
Accumulated Amortization | (9,675,000) | (9,667,000) | |
Net Carrying Amount | $ 496,000 | $ 481,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Details) - shares shares in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
Earnings Per Share Reconciliation [Abstract] | ||
Basic weighted average shares outstanding (in shares) | 12,960 | 12,853 |
Dilutive effect of stock options and awards (in shares) | 105 | 100 |
Diluted weighted average shares outstanding (in shares) | 13,065 | 12,953 |
Awards excluded due to anti-dilutive effect on diluted earnings per share (in shares) | 279 | 261 |
Other Charges - Summary of Othe
Other Charges - Summary of Other Charges (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
Other Income and Expenses [Abstract] | ||
Litigation contingencies | $ 4,000 | $ 0 |
Reorganization costs | 2,287 | 0 |
Other charges | $ 6,287 | $ 0 |
Other Charges - Additional Info
Other Charges - Additional Information (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
Loss Contingencies [Line Items] | ||
Litigation contingencies | $ 4,000 | $ 0 |
Reorganization costs | 2,287 | $ 0 |
Compensation-related Claims | ||
Loss Contingencies [Line Items] | ||
Litigation contingencies | $ 4,000 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Apr. 22, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 242,129 | $ 277,313 |
Less: Current portion | (751) | (741) |
Long-term debt | 241,378 | 276,572 |
Revolving credit facility | Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 231,375 | 266,375 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Total debt | $ 10,754 | $ 10,938 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) | Apr. 22, 2018USD ($) | Dec. 31, 2017USD ($) | Apr. 13, 2017 | Jun. 30, 2016USD ($) |
Borrowings | ||||
Loan origination costs | $ 2,200,000 | $ 2,400,000 | ||
Credit Facility | Revolving credit facility | ||||
Borrowings | ||||
Amounts outstanding | 265,500,000 | |||
Credit Facility | Letter of credit | ||||
Borrowings | ||||
Amounts outstanding | $ 7,600,000 | |||
Credit Facility | Line of credit | ||||
Borrowings | ||||
Amounts outstanding | 230,500,000 | |||
Credit Facility | Revolving credit facility | ||||
Borrowings | ||||
Maximum borrowing capacity | $ 400,000,000 | |||
Additional pricing tiers, lease adjusted leverage ratio threshold | 4.75 | |||
Credit Facility | Revolving credit facility | Through October 1, 2017 | ||||
Borrowings | ||||
Covenant compliance, lease adjusted leverage ratio | 5.25 | |||
Credit Facility | Revolving credit facility | October 2, 2017 through July 15, 2018 | ||||
Borrowings | ||||
Covenant compliance, lease adjusted leverage ratio | 5 | |||
Credit Facility | Revolving credit facility | July 16, 2018 and Thereafter | ||||
Borrowings | ||||
Covenant compliance, lease adjusted leverage ratio | 4.75 | |||
Credit Facility | Letter of credit | Line of credit | ||||
Borrowings | ||||
Maximum borrowing capacity | 25,000,000 | |||
Amounts outstanding | $ 7,500,000 | |||
Credit Facility | Swingline loans | Line of credit | ||||
Borrowings | ||||
Maximum borrowing capacity | $ 15,000,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Apr. 22, 2018 | Dec. 31, 2017 |
Assets: | ||
Investments in rabbi trust | $ 9,157 | $ 9,292 |
Total assets measured at fair value | 9,157 | 9,292 |
Level 1 | ||
Assets: | ||
Investments in rabbi trust | 9,157 | 9,292 |
Total assets measured at fair value | 9,157 | 9,292 |
Level 2 | ||
Assets: | ||
Investments in rabbi trust | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Level 3 | ||
Assets: | ||
Investments in rabbi trust | 0 | 0 |
Total assets measured at fair value | $ 0 | $ 0 |
Fair Value Measurements - Sum33
Fair Value Measurements - Summary of Carrying Value and Estimated Fair Value of Liabilities (Details) - USD ($) $ in Thousands | Apr. 22, 2018 | Dec. 31, 2017 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Capital lease obligations | $ 10,754 | $ 10,938 |
Estimated Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Capital lease obligations | $ 11,055 | $ 11,563 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 22, 2018 | Apr. 16, 2017 | |
Loss Contingencies [Line Items] | ||
Litigation contingencies | $ 4,000 | $ 0 |
Compensation-related Claims | ||
Loss Contingencies [Line Items] | ||
Litigation contingencies | $ 4,000 |