Document and Entity Information
Document and Entity Information - shares | 4 Months Ended | |
Apr. 19, 2020 | Jun. 08, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | RED ROBIN GOURMET BURGERS, INC. | |
Entity Central Index Key | 0001171759 | |
Current Fiscal Year End Date | --12-27 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 19, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 12,913,659 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
City Area Code | (303) | |
Local Phone Number | 846-6000 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1573084 | |
Entity Address, Address Line One | 6312 S. Fiddlers Green Circle | |
Entity Address, Address Line Two | Suite 200N | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
Trading Symbol | RRGB | |
Security Exchange Name | NASDAQ | |
Common Stock, $0.001 par value | Common Stock, $0.001 par value | |
Entity File Number | 001-34851 | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Thousands | Apr. 19, 2020 | Dec. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 88,920,000 | $ 30,045,000 |
Accounts receivable, net | 10,263,000 | 22,372,000 |
Inventories | 24,863,000 | 26,424,000 |
Prepaid expenses and other current assets | 30,790,000 | 26,646,000 |
Total current assets | 154,836,000 | 105,487,000 |
Property and equipment, net | 486,273,000 | 518,013,000 |
Right of use assets, net | 413,287,000 | 426,248,000 |
Goodwill | 0 | 96,397,000 |
Intangible assets, net | 27,369,000 | 29,975,000 |
Other assets, net | 40,286,000 | 61,460,000 |
Total assets | 1,122,051,000 | 1,237,580,000 |
Current liabilities: | ||
Accounts payable | 26,304,000 | 33,040,000 |
Accrued payroll and payroll-related liabilities | 24,694,000 | 35,221,000 |
Unearned revenue | 43,349,000 | 54,223,000 |
Short-term portion of lease obligations | 49,654,000 | 42,699,000 |
Short-term Debt | 9,692,000 | 0 |
Accrued liabilities and other | 39,110,000 | 29,403,000 |
Total current liabilities | 192,803,000 | 194,586,000 |
Long-term debt | 281,221,000 | 206,875,000 |
Long-term portion of lease obligations | 453,775,000 | 465,435,000 |
Other non-current liabilities | 9,883,000 | 10,164,000 |
Total liabilities | 937,682,000 | 877,060,000 |
Stockholders' equity | ||
Common stock; $0.001 par value: 45,000 shares authorized; 17,851 and 17,851 shares issued; 12,890 and 12,923 shares outstanding as of April 19, 2020 and December 29, 2019 | 18,000 | 18,000 |
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding as of April 19, 2020 and December 29, 2019 | 0 | 0 |
Treasury stock 4,961 and 4,928 shares, at cost, as of April 19, 2020 and December 29, 2019 | (202,343,000) | (202,313,000) |
Paid-in capital | 213,246,000 | 213,922,000 |
Accumulated other comprehensive loss, net of tax | (5,520,000) | (4,373,000) |
Retained Earnings | 178,968,000 | 353,266,000 |
Total stockholders’ equity | 184,369,000 | 360,520,000 |
Total liabilities and stockholders’ equity | $ 1,122,051,000 | $ 1,237,580,000 |
Common Stock, Shares, Issued | 17,851 | 17,851 |
Common Stock, Shares, Outstanding | 12,923 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 19, 2020 | Dec. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value 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 | 12,923,000 | |
Preferred Stock, Par or Stated Value 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 | 4,961,000 | 4,928,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 4 Months Ended | |
Apr. 19, 2020 | Apr. 21, 2019 | |
Revenues: | ||
Total revenues | $ 306,065 | $ 409,866 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||
Cost of sales | 70,426 | 93,715 |
Labor | 118,566 | 142,894 |
Other operating | 52,291 | 55,565 |
Occupancy | 33,657 | 35,020 |
Depreciation and amortization | 28,320 | 28,438 |
Selling, general, and administrative expenses | 41,502 | 48,116 |
Pre-opening costs | 153 | 319 |
Other charges | 119,379 | 2,398 |
Total costs and expenses | 464,294 | 406,465 |
(Loss) income from operations | (158,229) | 3,401 |
Other expense: | ||
Interest expense, net and other | 3,370 | 3,238 |
(Loss) income before income taxes | (161,599) | 163 |
Income tax provision (benefit) | 12,699 | (476) |
Net (loss) income | $ (174,298) | $ 639 |
(Loss) earnings per share: | ||
Basic (in dollars per share) | $ (13.51) | $ 0.05 |
Diluted (in dollars per share) | $ (13.51) | $ 0.05 |
Weighted average shares outstanding: | ||
Basic (in shares) | 12,903 | 12,967 |
Diluted (in shares) | 12,903 | 13,041 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | $ (1,147) | $ (329) |
Other comprehensive loss, net of tax | (1,147) | (329) |
Total comprehensive (loss) income | (175,445) | 310 |
Restaurant revenue | ||
Revenues: | ||
Total revenues | 301,434 | 400,484 |
Franchise and other revenues | ||
Revenues: | ||
Total revenues | $ 4,631 | $ 9,382 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Paid-in Capital | Accumulated Other Comprehensive Loss, net of tax | Retained Earnings |
Beginning balance (in shares) at Dec. 30, 2018 | 17,851 | 4,880 | ||||
Beginning balance at Dec. 30, 2018 | $ 382,805 | $ 18 | $ (201,505) | $ 212,752 | $ (4,801) | $ 376,341 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan (in shares) | (32) | |||||
Stock Issued During Period, Exercise Of Options, Issuance Of Restricted Stock, Shares Exchanged For Exercise And Tax, And Shares Issued Through Stock Purchase Plans | 140 | $ 1,344 | (1,204) | |||
Acquisition of treasury stock (in shares) | 31 | |||||
Treasury Stock, Value, Acquired, Cost Method | (974) | $ (974) | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 477 | 477 | ||||
Net income | 639 | 639 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (329) | (329) | ||||
Ending balance (in shares) at Apr. 21, 2019 | 17,851 | 4,879 | ||||
Ending balance at Apr. 21, 2019 | 367,586 | $ 18 | $ (201,135) | 212,025 | (5,130) | 361,808 |
Beginning balance (in shares) at Dec. 29, 2019 | 17,851 | 4,928 | ||||
Beginning balance at Dec. 29, 2019 | 360,520 | $ 18 | $ (202,313) | 213,922 | (4,373) | 353,266 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan (in shares) | (39) | |||||
Stock Issued During Period, Exercise Of Options, Issuance Of Restricted Stock, Shares Exchanged For Exercise And Tax, And Shares Issued Through Stock Purchase Plans | 217 | $ 1,605 | (1,388) | |||
Acquisition of treasury stock (in shares) | 72 | |||||
Treasury Stock, Value, Acquired, Cost Method | (1,635) | $ (1,635) | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 712 | 712 | ||||
Net income | (174,298) | (174,298) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1,147) | (1,147) | ||||
Ending balance (in shares) at Apr. 19, 2020 | 17,851 | 4,961 | ||||
Ending balance at Apr. 19, 2020 | $ 184,369 | $ 18 | $ (202,343) | $ 213,246 | $ (5,520) | $ 178,968 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 19, 2020 | Apr. 21, 2019 | |
Cash flows from operating activities: | ||
Net income | $ (174,298) | $ 639 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 28,320 | 28,438 |
Goodwill and restaurant asset impairment | 808 | 1,859 |
Deferred income tax provision (benefit) | 21,152 | (760) |
Stock-based compensation expense | 706 | 475 |
Other, net | (630) | (3,509) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 11,711 | 12,444 |
Inventories | 1,484 | (728) |
Prepaid expenses and other current assets | (4,144) | (1,224) |
Lease assets, net of liabilities | 6,795 | 3,721 |
Trade accounts payable and accrued liabilities | (8,022) | (5,576) |
Unearned revenue | (9,460) | (10,453) |
Other operating assets and liabilities, net | 1,346 | (35) |
Net cash (used in) provided by operating activities | (13,320) | 25,291 |
Cash flows from investing activities: | ||
Purchases of property, equipment, and intangible assets | (8,746) | (10,195) |
Proceeds from sales of real estate and property, plant, and equipment and other investing activities | 43 | 118 |
Net cash used in investing activities | (8,703) | (10,077) |
Cash flows from financing activities: | ||
Borrowings of long-term debt | 116,000 | 111,000 |
Payments of long-term debt and finance leases | (32,006) | (121,239) |
Purchase of treasury stock | (1,635) | (974) |
Debt issuance costs | (1,040) | 0 |
Proceeds from exercise of stock options and employee stock purchase plan | 419 | 368 |
Net cash provided by (used in) financing activities | 81,738 | (10,845) |
Effect of exchange rate changes on cash | (840) | 21 |
Net change in cash and cash equivalents | 58,875 | 4,390 |
Cash and cash equivalents, beginning of period | 30,045 | 18,569 |
Cash and cash equivalents, end of period | 88,920 | 22,959 |
Supplemental disclosure of cash flow information | ||
Income taxes (refund received) paid | (11) | |
Income taxes (refund received) paid | 2,492 | |
Interest paid, net of amounts capitalized | 2,708 | 3,481 |
Change in construction related payables | $ (1,745) | $ 635 |
Basis of Presentation and Recen
Basis of Presentation and Recent Accounting Pronouncements | 4 Months Ended |
Apr. 19, 2020 | |
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 operates, franchises, and develops full-service restaurants in North America. As of April 19, 2020, the Company owned and operated 452 restaurants located in 38 states. The Company also had 102 franchised full-service restaurants in 16 states and one Canadian province as of April 19, 2020. 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 29, 2019 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 29, 2019, filed with the SEC on February 25, 2020. Our current and prior year periods, period end dates, and number of weeks included in the period are summarized in the table below: Periods Period End Date Number of Weeks in Period Current and Prior Fiscal Quarters: First Quarter 2020 April 19, 2020 16 First Quarter 2019 April 21, 2019 16 Current and Prior Fiscal Years: Fiscal Year 2020 December 27, 2020 52 Fiscal Year 2019 December 29, 2019 52 Reclassifications Certain amounts presented in prior periods have been reclassified to conform with the current period presentation. For the sixteen weeks ended April 21, 2019, the Company reclassified the following within net cash (used in) provided by operating activities on the condensed consolidated statements of cash flows: $3.7 million from Other, net to Lease assets, net of liabilities presented in the changes to operating assets and liabilities, $0.8 million from Other, net to Deferred income tax provision (benefit) presented in the adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities, and $0.7 million from Prepaid expense and other current assets to Inventories presented in the changes to operating assets and liabilities. Going Concern Under ASC 205-40, Presentation of Financials Statements – Going Concern, the Company is required to assess whether substantial doubt is raised in that conditions or events indicate that it is probable the Company will be unable to meet its obligations when they come due within one year from the financial statement issuance date. The assessment also includes the Company's consideration of any management plans to alleviate such substantial doubt. The conditions related to the COVID-19 pandemic have had a material adverse impact on the Company's revenues, profitability, and cash flows. Pursuant to the terms of the First Amendment to the Credit Agreement and Waiver (the "Amendment") to the Company's Amended and Restated Credit Agreement (the "Credit Facility"), further described in Note 2, COVID-19 Pandemic , the lenders thereto agreed, among other things, to waive the existing events of default under the Credit Facility related to the Company's failure to comply with the financial covenants as of the end of the fiscal quarter ended April 19, 2020. In addition, the lenders agreed to (a) suspend the application of the lease adjusted leverage ratio financial covenant (the "Leverage Ratio Covenant") and the fixed charge coverage ratio financial covenant (the "FCCR Covenant"), in each case, for the fiscal quarters ending on July 12, 2020, October 4, 2020 and December 27, 2020 and (b) increase the maximum leverage permitted for purposes of the Leverage Ratio Covenant for each of the first three fiscal quarters ending in 2021; provided that the Company issues new equity (or convertible debt) generating net cash proceeds of at least $25 million. The Company is actively evaluating options for raising equity capital in order to satisfy the requirements of the Amendment. If the Company is unable to raise sufficient equity capital within the timeframe prescribed by the Amendment, and is unable to obtain a further waiver or amendment to the Credit Facility, then the Company could experience an event of default under the Credit Facility, which could have a material adverse effect on the Company's liquidity, financial condition, and results of operations. We cannot make any assurance regarding the likelihood, certainty, or exact timing of the Company's ability to raise capital or execute further amendments to the Credit Facility. As a result, under applicable accounting standards, the Company concluded, because the equity raise is outside of management's control, substantial doubt exists surrounding the Company's ability to meet its obligations within one year of the financial statement issuance date and to continue as a going concern. The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q do not include any adjustments that might result from the outcome of this uncertainty. Recent Accounting Pronouncements Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued Update 2019-12, Income Taxes ("Topic 740") as part of its Simplification Initiative. This guidance provides amendments to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for annual and interim reporting periods beginning after December 15, 2020, and early adoption is permitted. We are currently evaluating the full impact this guidance will have on our consolidated financial statements. We reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a significant impact on the Company's condensed consolidated financial statements. Recently Adopted Accounting Standards Current and Expected Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued Update 2016-13, Financial Instruments - Credit Losses (“Topic 326”), subsequently amended by various standard updates. This guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when determining credit loss estimates and requires financial assets to be measured net of expected credit losses at the time of initial recognition. The Company performed an analysis to determine the impact on our condensed consolidated financial statements and recognized an immaterial adjustment to Accounts Receivable, Net on our condensed consolidated balance sheets upon adoption during the first quarter of 2020. We performed an update to our analysis in the context of the COVID-19 pandemic and recognized an additional immaterial adjustment related to our franchise receivables. |
COVID-19 Pandemic
COVID-19 Pandemic | 4 Months Ended |
Apr. 19, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 Pandemic | COVID-19 Pandemic Overview Due to the novel coronavirus ("COVID-19") pandemic, we have navigated and continue to navigate an unprecedented time for our business and industry as we collectively work to combat the global crisis. With the health, safety, and well-being of Red Robin's Team Members, Guests, and communities as our top priority, we immediately shifted our restaurants to an off-premise model and are strictly adhering to US Centers for Disease Control ("CDC"), state, and local guidelines as we have begun to reopen our dining rooms to our Guests and Team Members. The COVID-19 pandemic has had a material effect on our business, and we expect the impact from COVID-19 will continue to negatively affect our business through the remainder of fiscal year 2020. Franchise Revenue In response to COVID-19's effect on our franchisee's operations, we temporarily abated franchise royalty payments and advertising contributions effective March 20, 2020. During periods of abated payments, franchise revenue is not recognized under GAAP or collected from our franchise partners. Franchised restaurants operate under contractual arrangements with the Company, and the payments specified in the franchise contracts will be accounted for under ASC Topic 606, Revenue from Contracts with Customers . Rent In response to the impact of COVID-19 on our operations, beginning April 1, 2020 the Company has not made full lease payments under its existing lease agreements. During the suspension of payments, the Company continued to recognize expenses and liabilities for lease obligations and corresponding right-of-use assets on the balance sheet in accordance with ASC Topic 842 . We have engaged in ongoing constructive discussions with landlords regarding the potential restructuring of lease payments and rent concessions. We will elect to recognize any contractual rent concessions reached in the future as a variable credit to rent expense as opposed to a lease modification consistent with the relief issued by the Financial Accounting Standards Board titled ASC Topic 842 and ASC Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic. Contractual rent concessions expected to be agreed to cannot be reasonably determined at this time based on the status of discussions with our landlords. Goodwill The Company determined the sustained decrease in our stock price coupled with the closure of our dining rooms and significant decline to the equity value of our peers and overall U.S. stock market represented a goodwill impairment triggering event. We performed a quantitative analysis as of our first quarter ended April 19, 2020 to determine if impairment to our goodwill existed for our one reporting unit. We used a blended approach in calculating fair value of our one reporting unit including the income approach, market approach, and market capitalization approach. This analysis resulted in full impairment of our goodwill balance totaling $95.4 million recognized during the sixteen weeks ended April 19, 2020 included in Other charges on the condensed consolidated statement of operations and comprehensive (loss) income. The goodwill impairment was measured as the amount by which the carrying amount of the reporting unit, including goodwill, exceeded its fair value. Restaurant Assets The Company determined the triggering event described above also represented a restaurant asset impairment triggering event. The Company recognized $15.5 million of impairment related to restaurant assets during the sixteen weeks ended April 19, 2020 included in Other charges on the condensed consolidated statement of operations and comprehensive (loss) income resulting from the continuing and projected future results of 24 Company-owned restaurants. Recoverability of restaurant assets, including restaurant sites, leasehold improvements, information technology systems, right-of-use assets, amortizable intangible assets, and other fixed assets, to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. Each restaurant's past and present operating performance was reviewed in combination with projected future results primarily through projected undiscounted cash flows that included management's expectation of future financial impacts from COVID-19. If the restaurant assets were determined to be impaired through comparison of the assets carrying value to its undiscounted cash flows, the Company compared the carrying amount of each restaurant's assets to its fair value as estimated by management to calculate the impairment amount. The fair value of restaurant assets is generally determined using a discounted cash flow projection model, which is based on significant inputs not observed in the market and represents a level 3 fair value measurement. In certain cases, management uses other market information, when available, to estimate the fair value of a restaurant's assets. The restaurant asset impairment charges represent the excess of the carrying amount over the estimated fair value of the restaurant assets calculated using a discounted cash flow projection model. Additional restaurant asset impairment may be required to be recognized if the COVID-19 pandemic continues to negatively impact our business. Valuation Allowance on Deferred Tax Assets In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the future reversals of existing deferred tax liabilities and projected taxable income, including whether future originating deductible temporary differences are likely to be realized. The March 19, 2020 passage of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") created an opportunity for the Company to carry back 2019 and 2020 projected net operating losses ("NOL's") to generate up to $12 million of projected cash tax refunds within the next 12 months. As a result of these projected NOL carrybacks, approximately $38 million of the previously utilized FICA tip tax credits will be reinstated. As of April 19, 2020 the existing $52 million FICA tip credit carryforwards will be utilized based on projected future taxable income, however they are anticipated to be replaced by originating FICA tip credits that are not projected to be utilized in the carry forward period. Therefore, a $52 million valuation allowance has been established for the FICA tip credit carryforwards. To the extent future actual taxable income exceeds the current projections, the FICA tip credit carryforwards may become realizable. Borrowings During the first quarter ended April 19, 2020, the Company made draws of $94 million on its revolving line of credit to provide operating liquidity while our restaurant dining rooms remain closed due to the COVID-19 pandemic. As of April 19, 2020, our credit facility was fully drawn. Subsequent Event - Credit Agreement Amendment On May 29, 2020, the Company entered into the Amendment which amends the Company's Credit Facility as follows: • increased the pricing under the Credit Facility for (a) the period of the Amendment Effective Date through the first interest determination date occurring after the fiscal quarter ending on or about April 18, 2021 to LIBOR (subject to a 1.00% LIBOR floor) plus 3.25% and (b) periods thereafter to the amounts set forth in a grid included in the Amendment (to which a 1.00% LIBOR floor shall apply); • waived the existing events of default under the Credit Facility related to the Company's failure to comply with the financial covenants as of April 19, 2020 • suspended the application of (a) the Lease Ratio Covenant and (b) the FCCR Covenant, in each case, for the fiscal quarter ending on July 12, 2020; • if the Company issues new equity (or convertible debt) generating net cash proceeds of at least $25 million (the "Minimum Capital Event"), (a) suspend the application of the Leverage Ratio Covenant and FCCR Covenant, in each case, for the fiscal quarters ending on October 4, 2020 and December 27, 2020 and (b) increase the maximum leverage permitted for purposes of the Leverage Ratio Covenant for each of the first three fiscal quarters ending in 2021; • Additionally, (a) the Leverage Ratio Covenant will be calculated using a seasonally adjusted annualized consolidated EBITDA for the applicable period since the beginning of fiscal year 2021 and (b) the FCCR Covenant will be calculated only for the applicable period since the beginning of fiscal year 2021; • added a minimum liquidity covenant, measured as of the last day of each fiscal month, that applies during the period commencing on the Amendment Effective Date through March 21, 2021; • subject to limited exceptions, prohibit expansion capital expenditures, restricted payments, acquisitions, and other investments until the later of (a) the Company's delivery of a compliance certificate for the fiscal quarter ending on or about July 11, 2021 demonstrating compliance with the financial covenants then in effect and (b) the Company satisfying an agreed ratio under its Leverage Ratio Covenant for the most recently ended fiscal quarter or fiscal year, as applicable; • added a maximum cash balance limitation requiring revolver repayments (but with no associated permanent reduction in the revolver) to the extent that the Company's consolidated cash on hand exceeds $30 million as of the end of any fiscal month; • revised the conditions precedent to the revolver borrowings so that certain effects of COVID-19 are excluded for purposes of certain representations and warranties that must be true and correct as conditions to revolving borrowings; • required mandatory prepayments from net cash proceeds of equity (or convertible debt) issuances that exceed amounts set forth in the Amendment; and • provided for certain additional financial reporting requirements under the Credit Facility. As conditions to the Amendment, the Company (a) repaid the revolving loans, so that the amount of the Company's consolidated cash on hand did not exceed $30 million as of the Amendment Effective Date totaling $59 million and (b) paid certain customary amendment fees to the lenders under the Credit Facility totaling approximately $1.1 million which will be capitalized as deferred loan fees and amortized over the remaining term of the Credit Facility. |
Revenue
Revenue | 4 Months Ended |
Apr. 19, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of revenue In the following table, revenue is disaggregated by type of good or service (in thousands): Sixteen Weeks Ended April 19, 2020 April 21, 2019 Restaurant revenue $ 301,434 $ 400,484 Franchise revenue (1) 2,897 5,363 Gift card breakage 1,414 3,680 Other revenue 320 339 Total revenues $ 306,065 $ 409,866 ——————————————————— (1) The decrease in Franchise revenue is driven by the temporary abatement and non-collection of franchise payments. See Note 2, COVID-19 Pandemic , for further discussion. Contract liabilities Components of Unearned revenue in the accompanying condensed consolidated balance sheets are as follows (in thousands): April 19, 2020 December 29, 2019 Unearned gift card revenue $ 32,650 $ 43,544 Deferred loyalty revenue $ 10,699 $ 10,679 Revenue recognized in the condensed consolidated statements of operations and comprehensive (loss) income 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 19, 2020 April 21, 2019 Gift card revenue $ 11,911 $ 16,097 |
Leases
Leases | 4 Months Ended |
Apr. 19, 2020 | |
Leases [Abstract] | |
Leases | Leases Leases are included in right-of-use assets, net, short-term portion of lease obligations, and long-term portion of lease liabilities on our condensed consolidated balance sheet as of April 19, 2020 and December 29, 2019 as follows (in thousands): April 19, 2020 Finance Operating Total Right of use assets, net $ 7,324 $ 405,963 $ 413,287 Short-term portion of lease obligations 738 48,916 49,654 Long-term portion of lease obligations 8,624 445,151 453,775 Total $ 9,362 $ 494,067 $ 503,429 December 29, 2019 Finance Operating Total Right of use assets, net $ 7,552 $ 418,696 $ 426,248 Short-term portion of lease obligations 725 41,974 42,699 Long-term portion of lease obligations 8,822 456,613 465,435 Total $ 9,547 $ 498,587 $ 508,134 The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in occupancy on our condensed consolidated statement of operations as follows (in thousands): Sixteen Weeks Ended April 19, 2020 April 21, 2019 Operating lease cost $ 21,990 $ 23,672 Finance lease cost: Amortization of right of use assets 203 248 Interest on lease liabilities 138 169 Total finance lease cost $ 341 $ 417 Variable lease cost 8,317 8,885 Total $ 30,648 $ 32,974 Maturities of our lease liabilities as of April 19, 2020 were as follows (in thousands): Finance Leases Operating Leases Total Remainder of 2020 $ 877 $ 57,349 $ 58,226 2021 1,133 76,042 77,175 2022 979 73,629 74,608 2023 916 71,600 72,516 2024 932 68,384 69,316 Thereafter 7,458 379,808 387,266 Total future lease liability $ 12,295 $ 726,812 $ 739,107 Less imputed interest 2,933 232,745 235,678 Fair value of lease liability $ 9,362 $ 494,067 $ 503,429 Supplemental cash flow information related to leases is as follows (in thousands, except other information): Sixteen Weeks Ended April 19, 2020 April 21, 2019 Cash flows from operating activities Cash paid related to lease liabilities Operating leases $ 12,683 $ 19,772 Finance leases 138 137 Cash flows from financing activities Cash paid related to lease liabilities Finance leases — 239 Cash paid for amounts included in the measurement of lease liabilities: $ 12,821 $ 20,148 Right of use assets obtained in exchange for operating lease obligations $ 2,311 $ 4,325 Right of use assets obtained in exchange for finance lease obligations $ — $ 1,669 Other information related to operating leases as follows: Weighted average remaining lease term 10.50 years 11.32 years Weighted average discount rate 7.38 % 7.34 % Other information related to financing leases as follows: Weighted average remaining lease term 12.14 years 11.96 years Weighted average discount rate 4.86 % 4.77 % |
Leases | Leases Leases are included in right-of-use assets, net, short-term portion of lease obligations, and long-term portion of lease liabilities on our condensed consolidated balance sheet as of April 19, 2020 and December 29, 2019 as follows (in thousands): April 19, 2020 Finance Operating Total Right of use assets, net $ 7,324 $ 405,963 $ 413,287 Short-term portion of lease obligations 738 48,916 49,654 Long-term portion of lease obligations 8,624 445,151 453,775 Total $ 9,362 $ 494,067 $ 503,429 December 29, 2019 Finance Operating Total Right of use assets, net $ 7,552 $ 418,696 $ 426,248 Short-term portion of lease obligations 725 41,974 42,699 Long-term portion of lease obligations 8,822 456,613 465,435 Total $ 9,547 $ 498,587 $ 508,134 The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in occupancy on our condensed consolidated statement of operations as follows (in thousands): Sixteen Weeks Ended April 19, 2020 April 21, 2019 Operating lease cost $ 21,990 $ 23,672 Finance lease cost: Amortization of right of use assets 203 248 Interest on lease liabilities 138 169 Total finance lease cost $ 341 $ 417 Variable lease cost 8,317 8,885 Total $ 30,648 $ 32,974 Maturities of our lease liabilities as of April 19, 2020 were as follows (in thousands): Finance Leases Operating Leases Total Remainder of 2020 $ 877 $ 57,349 $ 58,226 2021 1,133 76,042 77,175 2022 979 73,629 74,608 2023 916 71,600 72,516 2024 932 68,384 69,316 Thereafter 7,458 379,808 387,266 Total future lease liability $ 12,295 $ 726,812 $ 739,107 Less imputed interest 2,933 232,745 235,678 Fair value of lease liability $ 9,362 $ 494,067 $ 503,429 Supplemental cash flow information related to leases is as follows (in thousands, except other information): Sixteen Weeks Ended April 19, 2020 April 21, 2019 Cash flows from operating activities Cash paid related to lease liabilities Operating leases $ 12,683 $ 19,772 Finance leases 138 137 Cash flows from financing activities Cash paid related to lease liabilities Finance leases — 239 Cash paid for amounts included in the measurement of lease liabilities: $ 12,821 $ 20,148 Right of use assets obtained in exchange for operating lease obligations $ 2,311 $ 4,325 Right of use assets obtained in exchange for finance lease obligations $ — $ 1,669 Other information related to operating leases as follows: Weighted average remaining lease term 10.50 years 11.32 years Weighted average discount rate 7.38 % 7.34 % Other information related to financing leases as follows: Weighted average remaining lease term 12.14 years 11.96 years Weighted average discount rate 4.86 % 4.77 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 4 Months Ended |
Apr. 19, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents goodwill as of April 19, 2020 and December 29, 2019 (in thousands): Balance, December 29, 2019 $ 96,397 Foreign currency translation adjustment (983) Goodwill impairment (1) (95,414) Balance, April 19, 2020 $ — ——————————————————— (1) See Note 2, COVID-19 Pandemic , for further discussion of goodwill impairment recognized during the sixteen weeks ended April 19, 2020. The following table presents intangible assets as of April 19, 2020 and December 29, 2019 (in thousands): April 19, 2020 December 29, 2019 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Franchise rights $ 50,584 $ (35,520) $ 15,064 $ 53,336 $ (35,896) $ 17,440 Favorable leases 13,001 (8,957) 4,044 13,001 (8,794) 4,207 Liquor licenses and other 10,713 (9,912) 801 10,737 (9,869) 868 $ 74,298 $ (54,389) $ 19,909 $ 77,074 $ (54,559) $ 22,515 Indefinite-lived intangible assets: Liquor licenses and other $ 7,460 $ — $ 7,460 $ 7,460 $ — $ 7,460 Intangible assets, net $ 81,758 $ (54,389) $ 27,369 $ 84,534 $ (54,559) $ 29,975 |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 4 Months Ended |
Apr. 19, 2020 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | (Loss) Earnings Per Share Basic earnings per share amounts are calculated by dividing net (loss) income by the weighted-average number of shares of common stock outstanding during the period. Diluted (loss) 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 (loss) 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 19, 2020 April 21, 2019 Basic weighted average shares outstanding 12,903 12,967 Dilutive effect of stock options and awards — 74 Diluted weighted average shares outstanding 12,903 13,041 Awards excluded due to anti-dilutive effect on diluted earnings per share 318 487 |
Other Charges
Other Charges | 4 Months Ended |
Apr. 19, 2020 | |
Other Income and Expenses [Abstract] | |
Other Charges | Other Charges Other charges consist of the following (in thousands): Sixteen Weeks Ended April 19, 2020 April 21, 2019 Goodwill impairment $ 95,414 $ — Restaurant asset impairment 15,498 — Litigation contingencies 4,500 — Board and stockholder matter costs 1,482 — Restaurant closure and refranchising costs 1,406 304 Severance and executive transition 881 1,994 COVID-19 related charges 198 — Executive retention — 100 Other charges $ 119,379 $ 2,398 The Company recognized non-cash impairment charges related to goodwill and restaurant assets at 24 restaurant locations resulting from quantitative impairment analyses; see Note 2, COVID-19 Pandemic, for further discussion. Non-cash impairment charges resulting from restaurant closures are included within Restaurant closure and refranchising costs. Litigation contingencies include legal settlement costs related to two class action employment cases. Severance and executive transition in 2020 primarily relates to severance costs associated with the reduction in force of restaurant support center Team Members. COVID-19 related charges include the costs of purchasing personal protective equipment for restaurant Team Members. |
Borrowings
Borrowings | 4 Months Ended |
Apr. 19, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Total borrowings as of April 19, 2020 and December 29, 2019 were $290.9 million and $206.9 million. As of April 19, 2020, short-term borrowings were $9.7 million; no borrowings as of December 29, 2019 were classified as short-term. On January 10, 2020, the Company replaced its prior credit facility with a new Amended and Restated Credit Agreement (the "Credit Facility") which provides for a $161.5 million revolving line of credit and a $138.5 million term loan for a total borrowing capacity of $300 million. In addition, the Credit Facility allows for the issuance of $25 million in letters of credit, swingline loans up to $15 million, and the option to increase the borrowing capacity by up to an additional $100 million subject to lenders' participation. The Credit Facility will mature on January 10, 2025. In connection with the termination of the prior credit facility and new borrowings under the Credit Facility, the Company paid off all outstanding borrowings, accrued interest, and fees under the prior credit facility. Borrowings refinanced under the Credit Facility totaled $186.6 million, net of loan origination fees. No amortization is required with respect to the revolving line of credit, and the term loans require quarterly principal payments at a rate of 7.0% per annum of the original principal balance. Borrowings under the revolving line of credit and term loans denominated in U.S. Dollars, are subject to rates based on the London Interbank Offered Rate (“LIBOR”) plus a spread as defined in the credit agreement filed as Exhibit 10.1 to Form 8-K filed with the SEC on January 13, 2020. The publication of LIBOR is expected to discontinue in December 2021, however, we anticipate an amended credit agreement will be executed at the new applicable interest rate. As of April 19, 2020, the Company had outstanding borrowings under the Credit Facility of $290.0 million, in addition to amounts issued under letters of credit of $7.5 million. The amounts issued under letters of credit reduce the amount available under the facility but were not recorded as debt. As of December 29, 2019, the Company had outstanding borrowings under the prior credit facility of $206.0 million, in addition to amounts issued under letters of credit of $7.5 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 $1.7 million and $1.0 million as of April 19, 2020 and December 29, 2019. |
Fair Value Measurements
Fair Value Measurements | 4 Months Ended |
Apr. 19, 2020 | |
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, accounts payable, and current accrued expenses and other liabilities 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 included in Other assets, net on the accompanying condensed consolidated balance sheets as of April 19, 2020 and December 29, 2019 (in thousands): April 19, 2020 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 6,332 $ 6,332 $ — $ — Total assets measured at fair value $ 6,332 $ 6,332 $ — $ — December 29, 2019 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 7,337 $ 7,337 $ — $ — Total assets measured at fair value $ 7,337 $ 7,337 $ — $ — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets and liabilities recognized or disclosed at fair value on the condensed 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 19, 2020, the Company measured non-financial assets for impairment using continuing and projected future cash flows, as discussed in Note 2, COVID-19 Pandemic , which were based on significant inputs not observable in the market and thus represented a level 3 fair value measurement. Based on our restaurant asset impairment analysis, we impaired long-lived assets at 24 Company-owned restaurants with carrying values of $34.6 million. We determined the fair value of these long-lived restaurant assets to be $19.1 million. See Note 2, COVID-19 Pandemic , for discussion of the first quarter 2020 nonrecurring fair value measurement of goodwill and related impairment charges. Disclosures of Fair Value of Other Assets and Liabilities The Company's liability under its Credit Facility is carried at historical cost in the accompanying condensed consolidated balance sheets. The carrying value of the Credit Facility approximates fair value as the interest rate on this instrument approximates current market rates. The interest rate on the Credit Facility represents a level 2 fair value input. |
Commitments and Contingencies
Commitments and Contingencies | 4 Months Ended |
Apr. 19, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On July 14, 2017, a current hourly employee filed a class action lawsuit alleging that the Company failed to provide required meal breaks and rest periods and failed to reimburse business expenses, among other claims. The case is styled Manuel Vigueras v. Red Robin International, Inc. and is currently pending before the United States District Court in Santa Ana, California. In a related action, on September 21, 2017, a companion case, styled Genny Vasquez v. Red Robin International, Inc. was filed and is currently pending in California Superior Court in Santa Ana, California and involves claims under the California Private Attorneys’ General Act (“PAGA”) that partially overlap in the claims made in the Vigueras matter. In the first quarter of 2020, the Company reached a tentative settlement agreement resolving all claims and the cost of class administration in both cases for an aggregate $8.5 million. The Company is in the process of finalizing the settlement agreement, which will then be submitted to the court for approval. Court approval is required before any settlement agreement between the parties becomes final. An additional $4.5 million was accrued to reach the $8.5 million settlement amount during the first fiscal quarter of 2020. Amounts recorded in the periods presented for litigation contingencies are disclosed in Note 7, Other Charges . 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 condensed consolidated financial statements. |
Basis of Presentation and Rec_2
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 4 Months Ended |
Apr. 19, 2020 | |
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 29, 2019 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 29, 2019, filed with the SEC on February 25, 2020. Our current and prior year periods, period end dates, and number of weeks included in the period are summarized in the table below: Periods Period End Date Number of Weeks in Period Current and Prior Fiscal Quarters: First Quarter 2020 April 19, 2020 16 First Quarter 2019 April 21, 2019 16 Current and Prior Fiscal Years: Fiscal Year 2020 December 27, 2020 52 Fiscal Year 2019 December 29, 2019 52 |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform with the current period presentation. For the sixteen weeks ended April 21, 2019, the Company reclassified the following within net cash (used in) provided by operating activities on the condensed consolidated statements of cash flows: $3.7 million from Other, net to Lease assets, net of liabilities presented in the changes to operating assets and liabilities, $0.8 million from Other, net to Deferred income tax provision (benefit) presented in the adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities, and $0.7 million from Prepaid expense and other current assets to Inventories presented in the changes to operating assets and liabilities. Going Concern Under ASC 205-40, Presentation of Financials Statements – Going Concern, the Company is required to assess whether substantial doubt is raised in that conditions or events indicate that it is probable the Company will be unable to meet its obligations when they come due within one year from the financial statement issuance date. The assessment also includes the Company's consideration of any management plans to alleviate such substantial doubt. The conditions related to the COVID-19 pandemic have had a material adverse impact on the Company's revenues, profitability, and cash flows. Pursuant to the terms of the First Amendment to the Credit Agreement and Waiver (the "Amendment") to the Company's Amended and Restated Credit Agreement (the "Credit Facility"), further described in Note 2, COVID-19 Pandemic , the lenders thereto agreed, among other things, to waive the existing events of default under the Credit Facility related to the Company's failure to comply with the financial covenants as of the end of the fiscal quarter ended April 19, 2020. In addition, the lenders agreed to (a) suspend the application of the lease adjusted leverage ratio financial covenant (the "Leverage Ratio Covenant") and the fixed charge coverage ratio financial covenant (the "FCCR Covenant"), in each case, for the fiscal quarters ending on July 12, 2020, October 4, 2020 and December 27, 2020 and (b) increase the maximum leverage permitted for purposes of the Leverage Ratio Covenant for each of the first three fiscal quarters ending in 2021; provided that the Company issues new equity (or convertible debt) generating net cash proceeds of at least $25 million. The Company is actively evaluating options for raising equity capital in order to satisfy the requirements of the Amendment. If the Company is unable to raise sufficient equity capital within the timeframe prescribed by the Amendment, and is unable to obtain a further waiver or amendment to the Credit Facility, then the Company could experience an event of default under the Credit Facility, which could have a material adverse effect on the Company's liquidity, financial condition, and results of operations. We cannot make any assurance regarding the likelihood, certainty, or exact timing of the Company's ability to raise capital or execute further amendments to the Credit Facility. As a result, under applicable accounting standards, the Company concluded, because the equity raise is outside of management's control, substantial doubt exists surrounding the Company's ability to meet its obligations within one year of the financial statement issuance date and to continue as a going concern. The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q do not include any adjustments that might result from the outcome of this uncertainty. |
Recent Accounting Pronouncements and Recently Adopted Accounting Standards | Recent Accounting Pronouncements Income Taxes In December 2019, the Financial Accounting Standards Board ("FASB") issued Update 2019-12, Income Taxes ("Topic 740") as part of its Simplification Initiative. This guidance provides amendments to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for annual and interim reporting periods beginning after December 15, 2020, and early adoption is permitted. We are currently evaluating the full impact this guidance will have on our consolidated financial statements. We reviewed all other recently issued accounting pronouncements and concluded they were either not applicable or not expected to have a significant impact on the Company's condensed consolidated financial statements. Recently Adopted Accounting Standards Current and Expected Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued Update 2016-13, Financial Instruments - Credit Losses (“Topic 326”), subsequently amended by various standard updates. This guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information when determining credit loss estimates and requires financial assets to be measured net of expected credit losses at the time of initial recognition. The Company performed an analysis to determine the impact on our condensed consolidated financial statements and recognized an immaterial adjustment to Accounts Receivable, Net on our condensed consolidated balance sheets upon adoption during the first quarter of 2020. We performed an update to our analysis in the context of the COVID-19 pandemic and recognized an additional immaterial adjustment related to our franchise receivables. |
Revenue (Tables)
Revenue (Tables) | 4 Months Ended |
Apr. 19, 2020 | |
Revenue from Contract with Customer [Abstract] | |
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 19, 2020 April 21, 2019 Restaurant revenue $ 301,434 $ 400,484 Franchise revenue (1) 2,897 5,363 Gift card breakage 1,414 3,680 Other revenue 320 339 Total revenues $ 306,065 $ 409,866 ——————————————————— (1) The decrease in Franchise revenue is driven by the temporary abatement and non-collection of franchise payments. See Note 2, COVID-19 Pandemic , for further discussion. |
Schedule of revenue recognized that were included in liability balances at the beginning of the fiscal year | Components of Unearned revenue in the accompanying condensed consolidated balance sheets are as follows (in thousands): April 19, 2020 December 29, 2019 Unearned gift card revenue $ 32,650 $ 43,544 Deferred loyalty revenue $ 10,699 $ 10,679 Revenue recognized in the condensed consolidated statements of operations and comprehensive (loss) income 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 19, 2020 April 21, 2019 Gift card revenue $ 11,911 $ 16,097 |
Leases (Tables)
Leases (Tables) | 4 Months Ended |
Apr. 19, 2020 | |
Leases [Abstract] | |
Asset and Balance Sheet effects of adoption of 2016-02 | Leases are included in right-of-use assets, net, short-term portion of lease obligations, and long-term portion of lease liabilities on our condensed consolidated balance sheet as of April 19, 2020 and December 29, 2019 as follows (in thousands): April 19, 2020 Finance Operating Total Right of use assets, net $ 7,324 $ 405,963 $ 413,287 Short-term portion of lease obligations 738 48,916 49,654 Long-term portion of lease obligations 8,624 445,151 453,775 Total $ 9,362 $ 494,067 $ 503,429 December 29, 2019 Finance Operating Total Right of use assets, net $ 7,552 $ 418,696 $ 426,248 Short-term portion of lease obligations 725 41,974 42,699 Long-term portion of lease obligations 8,822 456,613 465,435 Total $ 9,547 $ 498,587 $ 508,134 |
Lease cost | The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in occupancy on our condensed consolidated statement of operations as follows (in thousands): Sixteen Weeks Ended April 19, 2020 April 21, 2019 Operating lease cost $ 21,990 $ 23,672 Finance lease cost: Amortization of right of use assets 203 248 Interest on lease liabilities 138 169 Total finance lease cost $ 341 $ 417 Variable lease cost 8,317 8,885 Total $ 30,648 $ 32,974 Supplemental cash flow information related to leases is as follows (in thousands, except other information): Sixteen Weeks Ended April 19, 2020 April 21, 2019 Cash flows from operating activities Cash paid related to lease liabilities Operating leases $ 12,683 $ 19,772 Finance leases 138 137 Cash flows from financing activities Cash paid related to lease liabilities Finance leases — 239 Cash paid for amounts included in the measurement of lease liabilities: $ 12,821 $ 20,148 Right of use assets obtained in exchange for operating lease obligations $ 2,311 $ 4,325 Right of use assets obtained in exchange for finance lease obligations $ — $ 1,669 Other information related to operating leases as follows: Weighted average remaining lease term 10.50 years 11.32 years Weighted average discount rate 7.38 % 7.34 % Other information related to financing leases as follows: Weighted average remaining lease term 12.14 years 11.96 years Weighted average discount rate 4.86 % 4.77 % |
Schedule of operating lease maturities | Maturities of our lease liabilities as of April 19, 2020 were as follows (in thousands): Finance Leases Operating Leases Total Remainder of 2020 $ 877 $ 57,349 $ 58,226 2021 1,133 76,042 77,175 2022 979 73,629 74,608 2023 916 71,600 72,516 2024 932 68,384 69,316 Thereafter 7,458 379,808 387,266 Total future lease liability $ 12,295 $ 726,812 $ 739,107 Less imputed interest 2,933 232,745 235,678 Fair value of lease liability $ 9,362 $ 494,067 $ 503,429 |
Schedule of finance lease maturities | Maturities of our lease liabilities as of April 19, 2020 were as follows (in thousands): Finance Leases Operating Leases Total Remainder of 2020 $ 877 $ 57,349 $ 58,226 2021 1,133 76,042 77,175 2022 979 73,629 74,608 2023 916 71,600 72,516 2024 932 68,384 69,316 Thereafter 7,458 379,808 387,266 Total future lease liability $ 12,295 $ 726,812 $ 739,107 Less imputed interest 2,933 232,745 235,678 Fair value of lease liability $ 9,362 $ 494,067 $ 503,429 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 4 Months Ended |
Apr. 19, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents goodwill as of April 19, 2020 and December 29, 2019 (in thousands): Balance, December 29, 2019 $ 96,397 Foreign currency translation adjustment (983) Goodwill impairment (1) (95,414) Balance, April 19, 2020 $ — ——————————————————— (1) See Note 2, COVID-19 Pandemic , for further discussion of goodwill impairment recognized during the sixteen weeks ended April 19, 2020. |
Schedule of intangible assets subject to amortization | The following table presents intangible assets as of April 19, 2020 and December 29, 2019 (in thousands): April 19, 2020 December 29, 2019 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Franchise rights $ 50,584 $ (35,520) $ 15,064 $ 53,336 $ (35,896) $ 17,440 Favorable leases 13,001 (8,957) 4,044 13,001 (8,794) 4,207 Liquor licenses and other 10,713 (9,912) 801 10,737 (9,869) 868 $ 74,298 $ (54,389) $ 19,909 $ 77,074 $ (54,559) $ 22,515 Indefinite-lived intangible assets: Liquor licenses and other $ 7,460 $ — $ 7,460 $ 7,460 $ — $ 7,460 Intangible assets, net $ 81,758 $ (54,389) $ 27,369 $ 84,534 $ (54,559) $ 29,975 |
Schedule of intangible assets not subject to amortization | The following table presents intangible assets as of April 19, 2020 and December 29, 2019 (in thousands): April 19, 2020 December 29, 2019 Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization: Franchise rights $ 50,584 $ (35,520) $ 15,064 $ 53,336 $ (35,896) $ 17,440 Favorable leases 13,001 (8,957) 4,044 13,001 (8,794) 4,207 Liquor licenses and other 10,713 (9,912) 801 10,737 (9,869) 868 $ 74,298 $ (54,389) $ 19,909 $ 77,074 $ (54,559) $ 22,515 Indefinite-lived intangible assets: Liquor licenses and other $ 7,460 $ — $ 7,460 $ 7,460 $ — $ 7,460 Intangible assets, net $ 81,758 $ (54,389) $ 27,369 $ 84,534 $ (54,559) $ 29,975 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 4 Months Ended |
Apr. 19, 2020 | |
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 19, 2020 April 21, 2019 Basic weighted average shares outstanding 12,903 12,967 Dilutive effect of stock options and awards — 74 Diluted weighted average shares outstanding 12,903 13,041 Awards excluded due to anti-dilutive effect on diluted earnings per share 318 487 |
Other Charges (Tables)
Other Charges (Tables) | 4 Months Ended |
Apr. 19, 2020 | |
Other Income and Expenses [Abstract] | |
Summary of other charges | Other charges consist of the following (in thousands): Sixteen Weeks Ended April 19, 2020 April 21, 2019 Goodwill impairment $ 95,414 $ — Restaurant asset impairment 15,498 — Litigation contingencies 4,500 — Board and stockholder matter costs 1,482 — Restaurant closure and refranchising costs 1,406 304 Severance and executive transition 881 1,994 COVID-19 related charges 198 — Executive retention — 100 Other charges $ 119,379 $ 2,398 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 4 Months Ended |
Apr. 19, 2020 | |
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 included in Other assets, net on the accompanying condensed consolidated balance sheets as of April 19, 2020 and December 29, 2019 (in thousands): April 19, 2020 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 6,332 $ 6,332 $ — $ — Total assets measured at fair value $ 6,332 $ 6,332 $ — $ — December 29, 2019 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 7,337 $ 7,337 $ — $ — Total assets measured at fair value $ 7,337 $ 7,337 $ — $ — |
Basis of Presentation and Rec_3
Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Details) $ in Thousands | 4 Months Ended | |
Apr. 19, 2020USD ($)staterestaurantsegment | Dec. 29, 2019USD ($) | |
Franchisor Disclosure [Line Items] | ||
Number of Canadian provinces in which restaurants are located | 1 | |
Number of operating segments | 1 | |
Number of reportable segments | 1 | |
Other non-current liabilities | $ | $ 9,883 | $ 10,164 |
Company-owned operated restaurants | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | restaurant | 452 | |
Number of states in which restaurants are located | state | 38 | |
Franchised restaurants | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | restaurant | 102 | |
Number of states in which restaurants are located | state | 16 |
COVID-19 Pandemic (Details)
COVID-19 Pandemic (Details) | May 29, 2020USD ($) | Apr. 19, 2020USD ($) | Mar. 19, 2020USD ($) | Apr. 19, 2020USD ($)segment | Apr. 21, 2019USD ($) | Jan. 10, 2020 |
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Goodwill impairment | $ 95,414,000 | $ 0 | ||||
Restaurant asset impairment | $ 15,498,000 | $ 0 | ||||
Number of restaurants impaired | segment | 24 | |||||
Previously utilized FICA tip credit | $ 38,000,000 | |||||
Valuation allowance attributable to FICA tip credits | $ 52,000,000 | |||||
Amount drawn on line of credit | $ 94,000,000 | |||||
Interest rate floor | 7.00% | |||||
Amended Credit Agreement | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Threshold proceeds from issuance of equity | $ 52,000,000 | |||||
Subsequent Event | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Threshold proceeds from issuance of equity | $ 25,000,000 | |||||
Subsequent Event | Amended Credit Agreement | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Consolidated cash on hand | 30,000,000 | |||||
Payment made on line of credit | 59,000,000 | |||||
Payments of amendment fees | $ 1,100,000 | |||||
Interest Rate Floor | Subsequent Event | Amended Credit Agreement | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Interest rate floor | 1.00% | |||||
London Interbank Offered Rate (LIBOR) | Subsequent Event | Amended Credit Agreement | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Variable interest rate | 3.25% |
Revenue - Schedule of Revenue D
Revenue - Schedule of Revenue Disaggregation by Product Type (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 19, 2020 | Apr. 21, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 306,065 | $ 409,866 |
Restaurant revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 301,434 | 400,484 |
Franchise revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 2,897 | 5,363 |
Gift card breakage | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 1,414 | 3,680 |
Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 320 | $ 339 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | Apr. 19, 2020 | Dec. 29, 2019 |
Disaggregation of Revenue [Line Items] | ||
Unearned revenue | $ 43,349 | $ 54,223 |
Gift card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Unearned revenue | 32,650 | 43,544 |
Deferred loyalty revenue | ||
Disaggregation of Revenue [Line Items] | ||
Unearned revenue | $ 10,699 | $ 10,679 |
Revenue - Schedule of Revenue R
Revenue - Schedule of Revenue Recognized Included in Liability Balances at Beginning of Fiscal Year (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 19, 2020 | Apr. 21, 2019 | |
Gift card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Gift card revenue | $ 11,911 | $ 16,097 |
Leases Additional Balance Sheet
Leases Additional Balance Sheet information (Details) - USD ($) $ in Thousands | Apr. 19, 2020 | Dec. 29, 2019 |
Finance | ||
Right of use assets, net | $ 7,324 | $ 7,552 |
Finance Lease Liabilities | ||
Short-term portion of lease obligations | 738 | 725 |
Long-term portion of lease obligations | 8,624 | 8,822 |
Total | 9,362 | 9,547 |
Operating | ||
Right of use assets, net | 405,963 | 418,696 |
Operating Lease Liabilities | ||
Short-term portion of lease obligations | 48,916 | 41,974 |
Long-term portion of lease obligations | 445,151 | 456,613 |
Total | 494,067 | 498,587 |
Total | ||
Right of use assets, net | 413,287 | 426,248 |
Total | ||
Short-term portion of lease obligations | 49,654 | 42,699 |
Long-term portion of lease obligations | 453,775 | 465,435 |
Total | $ 503,429 | $ 508,134 |
Leases Lease Cost (Details)
Leases Lease Cost (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 19, 2020 | Apr. 21, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 21,990 | $ 23,672 |
Finance lease cost: | ||
Amortization of right of use assets | 203 | 248 |
Interest on lease liabilities | 138 | 169 |
Total finance lease cost | 341 | 417 |
Variable lease cost | 8,317 | 8,885 |
Total | $ 30,648 | $ 32,974 |
Leases Schedules of Lease Matur
Leases Schedules of Lease Maturities (Details) - USD ($) $ in Thousands | Apr. 19, 2020 | Dec. 29, 2019 |
Finance Leases | ||
Remainder of 2020 | $ 877 | |
2021 | 1,133 | |
2022 | 979 | |
2023 | 916 | |
2024 | 932 | |
Thereafter | 7,458 | |
Total future lease liability | 12,295 | |
Less imputed interest | 2,933 | |
Total | 9,362 | $ 9,547 |
Operating Leases | ||
Remainder of 2020 | 57,349 | |
2021 | 76,042 | |
2022 | 73,629 | |
2023 | 71,600 | |
2024 | 68,384 | |
Thereafter | 379,808 | |
Total future lease liability | 726,812 | |
Less imputed interest | 232,745 | |
Fair value of lease liability | 494,067 | $ 498,587 |
Total | ||
Remainder of 2020 | 58,226 | |
2021 | 77,175 | |
2022 | 74,608 | |
2023 | 72,516 | |
2024 | 69,316 | |
Thereafter | 387,266 | |
Total future lease liability | 739,107 | |
Less imputed interest | 235,678 | |
Fair value of lease liability | $ 503,429 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 19, 2020 | Apr. 21, 2019 | |
Cash flows from operating activities | ||
Operating leases | $ 12,683 | $ 19,772 |
Finance leases | 138 | 137 |
Cash flows from financing activities | ||
Finance leases | 0 | 239 |
Cash paid for amounts included in the measurement of lease liabilities: | 12,821 | 20,148 |
Right of use assets obtained in exchange for operating lease obligations | 2,311 | 4,325 |
Right of use assets obtained in exchange for finance lease obligations | $ 0 | $ 1,669 |
Other information related to operating leases as follows: | ||
Weighted average remaining lease term | 10 years 6 months | 11 years 3 months 25 days |
Weighted average discount rate | 7.38% | 7.34% |
Other information related to financing leases as follows: | ||
Weighted average remaining lease term | 12 years 1 month 20 days | 11 years 11 months 15 days |
Weighted average discount rate | 4.86% | 4.77% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill Activity (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 19, 2020 | Apr. 21, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 96,397 | |
Foreign currency translation adjustment | (983) | |
Goodwill impairment | (95,414) | $ 0 |
Ending balance | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 19, 2020 | Dec. 29, 2019 |
Intangible Assets | ||
Gross Carrying Amount | $ 74,298 | $ 77,074 |
Accumulated Amortization | (54,389) | (54,559) |
Net Carrying Amount | 19,909 | 22,515 |
Intangible assets, gross carrying amount | 81,758 | 84,534 |
Intangible assets, net carrying amount | 27,369 | 29,975 |
Liquor licenses and other | ||
Intangible Assets | ||
Liquor licenses and other | 7,460 | 7,460 |
Franchise rights | ||
Intangible Assets | ||
Gross Carrying Amount | 50,584 | 53,336 |
Accumulated Amortization | (35,520) | (35,896) |
Net Carrying Amount | 15,064 | 17,440 |
Favorable leases | ||
Intangible Assets | ||
Gross Carrying Amount | 13,001 | 13,001 |
Accumulated Amortization | (8,957) | (8,794) |
Net Carrying Amount | 4,044 | 4,207 |
Liquor licenses and other | ||
Intangible Assets | ||
Gross Carrying Amount | 10,713 | 10,737 |
Accumulated Amortization | (9,912) | (9,869) |
Net Carrying Amount | $ 801 | $ 868 |
(Loss) Earnings Per Share - Sum
(Loss) Earnings Per Share - Summary of Earnings Per Share (Details) - shares shares in Thousands | 4 Months Ended | |
Apr. 19, 2020 | Apr. 21, 2019 | |
Earnings Per Share Reconciliation [Abstract] | ||
Basic weighted average shares outstanding (in shares) | 12,903 | 12,967 |
Dilutive effect of stock options and awards (in shares) | 0 | 74 |
Diluted weighted average shares outstanding (in shares) | 12,903 | 13,041 |
Awards excluded due to anti-dilutive effect on diluted earnings per share (in shares) | 318 | 487 |
Other Charges - Summary of Othe
Other Charges - Summary of Other Charges (Details) - USD ($) $ in Thousands | 4 Months Ended | |
Apr. 19, 2020 | Apr. 21, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Goodwill impairment | $ 95,414 | $ 0 |
Restaurant asset impairment | 15,498 | 0 |
Litigation contingencies | 4,500 | 0 |
Board and stockholder matter costs | 1,482 | 0 |
Severance and executive transition | 881 | 1,994 |
COVID-19 related charges | 198 | 0 |
Executive retention | 0 | 100 |
Other charges | 119,379 | 2,398 |
Restaurants | ||
Property, Plant and Equipment [Line Items] | ||
Restaurant closure and refranchising costs | $ 1,406 | $ 304 |
Other Charges - Additional Info
Other Charges - Additional Information (Details) | 4 Months Ended |
Apr. 19, 2020segment | |
Other Income and Expenses [Abstract] | |
Number of restaurants impaired | 24 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Apr. 19, 2020 | Jan. 10, 2020 | Dec. 29, 2019 |
Borrowings | |||
Long-term debt | $ 281,221,000 | $ 206,875,000 | |
Outstanding borrowings considered short-term | (9,692,000) | 0 | |
Loan origination costs | 1,700,000 | 1,000,000 | |
Interest rate floor | 7.00% | ||
Debt Refinanced, Net Of Loan Origination Fees | $ 186,600,000 | ||
Debt, Long-term and Short-term, Combined Amount | 290,900,000 | 206,900,000 | |
Credit Facility | |||
Borrowings | |||
Debt Instrument Contingent Increase In Borrowing Capacity | 100,000,000 | ||
Line of Credit Facility, Current Borrowing Capacity | 138,500,000 | ||
Debt Instrument, Face Amount | 300,000,000 | ||
Credit Facility | Revolving credit facility | |||
Borrowings | |||
Amounts outstanding | 206,000,000 | ||
Credit Facility | Letter of credit | |||
Borrowings | |||
Amounts outstanding | $ 7,500,000 | ||
Credit Facility | Line of credit | |||
Borrowings | |||
Amounts outstanding | 290,000,000 | ||
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 | ||
Revolving credit facility | Revolving credit facility | |||
Borrowings | |||
Maximum borrowing capacity | $ 161,500,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Apr. 19, 2020 | Dec. 29, 2019 |
Assets: | ||
Investments in rabbi trust | $ 6,332 | $ 7,337 |
Total assets measured at fair value | 6,332 | 7,337 |
Level 1 | ||
Assets: | ||
Investments in rabbi trust | 6,332 | 7,337 |
Total assets measured at fair value | 6,332 | 7,337 |
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 - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 4 Months Ended |
Apr. 19, 2020USD ($)segment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Number of restaurants impaired | segment | 24 |
Restaurants | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Restaurants carrying value | $ 34.6 |
Fair value of long-lived restaurant assets | $ 19.1 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - Settled Litigation $ in Millions | 4 Months Ended |
Apr. 19, 2020USD ($) | |
Loss Contingencies [Line Items] | |
Settlement of litigation | $ 8.5 |
Additional litigation expenses accrued | $ 4.5 |
Uncategorized Items - rrgb-2020
Label | Element | Value |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (15,172,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (15,172,000) |