Document_and_Entity_Informatio
Document and Entity Information | 4 Months Ended | |
Apr. 20, 2014 | 20-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'RED ROBIN GOURMET BURGERS INC | ' |
Entity Central Index Key | '0001171759 | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 20-Apr-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 14,291,221 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Apr. 20, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $14,635 | $17,108 |
Accounts receivable, net | 14,326 | 22,568 |
Inventories | 21,922 | 21,992 |
Prepaid expenses and other current assets | 9,191 | 15,766 |
Deferred tax asset and other | 2,959 | 3,212 |
Total current assets | 63,033 | 80,646 |
Property and equipment, net | 451,834 | 444,727 |
Goodwill | 64,608 | 62,525 |
Intangible assets, net | 38,862 | 36,800 |
Other assets, net | 11,165 | 9,947 |
Total assets | 629,502 | 634,645 |
Current liabilities: | ' | ' |
Trade accounts payable | 17,376 | 19,117 |
Construction related payables | 14,105 | 14,682 |
Accrued payroll and payroll-related liabilities | 38,701 | 45,919 |
Unearned revenue | 27,037 | 35,740 |
Accrued liabilities and other | 26,999 | 24,454 |
Total current liabilities | 124,218 | 139,912 |
Deferred rent | 54,597 | 51,985 |
Long-term debt | 78,375 | 79,375 |
Long-term portion of capital lease obligations | 8,317 | 8,513 |
Other non-current liabilities | 9,147 | 7,457 |
Total liabilities | 274,654 | 287,242 |
Stockholders' equity: | ' | ' |
Common stock; $0.001 par value: 30,000 shares authorized; 17,845 and 17,851 shares issued; 14,298 and 14,350 shares outstanding | 18 | 18 |
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Treasury stock 3,547 and 3,501 shares, at cost | -116,005 | -110,486 |
Paid-in capital | 198,190 | 197,145 |
Accumulated other comprehensive loss, net of tax | -50 | -25 |
Retained earnings | 272,695 | 260,751 |
Total stockholders' equity | 354,848 | 347,403 |
Total liabilities and stockholders' equity | $629,502 | $634,645 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Apr. 20, 2014 | Dec. 29, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 17,845,000 | 17,851,000 |
Common stock, shares outstanding | 14,298,000 | 14,350,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
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 | 3,547,000 | 3,501,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 4 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 20, 2014 | Apr. 21, 2013 |
Revenues: | ' | ' |
Restaurant revenue | $334,995 | $301,313 |
Franchise royalties, fees and other revenues | 5,489 | 5,036 |
Total revenues | 340,484 | 306,349 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ' | ' |
Cost of sales | 84,220 | 74,982 |
Labor | 110,921 | 101,882 |
Other operating | 40,597 | 37,090 |
Occupancy | 24,282 | 22,573 |
Depreciation and amortization | 18,886 | 17,834 |
Selling, general and administrative expenses | 42,423 | 37,608 |
Pre-opening and acquisition costs | 2,113 | 834 |
Total costs and expenses | 323,442 | 292,803 |
Income from operations | 17,042 | 13,546 |
Other expense: | ' | ' |
Interest expense, net and other | 674 | 1,089 |
Income before income taxes | 16,368 | 12,457 |
Provision for income taxes | 4,424 | 2,977 |
Net income | $11,944 | $9,480 |
Earnings per share: | ' | ' |
Basic (in dollars per share) | $0.83 | $0.67 |
Diluted (in dollars per share) | $0.82 | $0.66 |
Weighted average shares outstanding: | ' | ' |
Basic (in shares) | 14,352 | 14,062 |
Diluted (in shares) | 14,592 | 14,341 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 20, 2014 | Apr. 21, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $11,944 | $9,480 |
Cash flow hedges: | ' | ' |
Net change in fair value of interest rate swap | -70 | -80 |
Net loss reclassified into interest expense | 29 | 20 |
Total change in unrealized loss related to cash flow hedges | -41 | -60 |
Income tax benefit related to items of other comprehensive income | 16 | 24 |
Other comprehensive loss, net of tax | -25 | -36 |
Total comprehensive income | $11,919 | $9,444 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 4 Months Ended | |
In Thousands, unless otherwise specified | Apr. 20, 2014 | Apr. 21, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $11,944 | $9,480 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 18,886 | 17,834 |
Stock-based compensation expense | 1,009 | 1,192 |
Other, net | -659 | -285 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 8,167 | 7,187 |
Trade accounts payable and accrued liabilities | -3,246 | 6,476 |
Unearned revenue | -8,305 | -7,101 |
Other operating assets and liabilities, net | 8,239 | 5,584 |
Net cash provided by operating activities | 36,035 | 40,367 |
Cash flows from investing activities: | ' | ' |
Purchases of property, equipment and intangible assets | -24,314 | -13,640 |
Acquisition of franchise restaurants, net of cash acquired | -7,958 | 0 |
Other investing activities | -71 | 0 |
Net cash used in investing activities | -32,343 | -13,640 |
Cash flows from financing activities: | ' | ' |
Borrowings of long-term debt | 39,000 | 30,000 |
Payments of long-term debt and capital leases | -40,206 | -64,749 |
Purchase of treasury stock | -7,500 | 0 |
Tax benefit from exercise of stock options | 927 | 0 |
Proceeds from exercise of stock options and employee stock purchase plan | 1,614 | 2,957 |
Net cash used in financing activities | -6,165 | -31,792 |
Net decrease in cash and cash equivalents | -2,473 | -5,065 |
Cash and cash equivalents, beginning of year | 14,635 | 17,375 |
Cash and cash equivalents, end of year | 17,108 | 22,440 |
Supplemental of cash flow information | ' | ' |
Income taxes paid | 2,026 | 1,521 |
Interest paid, net of amounts capitalized | $797 | $948 |
Basis_of_Presentation_and_Rece
Basis of Presentation and Recent Account Pronouncements | 4 Months Ended |
Apr. 20, 2014 | |
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”), develops and operates casual-dining restaurants. As of April 20, 2014, the Company owned and operated 367 restaurants located in 35 states. The Company also sells franchises, of which there were 129 restaurants, in 19 states and two Canadian provinces as of April 20, 2014. The Company operates its business as one operating and one reportable segment. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements include the accounts of Red Robin and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates included in the preparation of these financial statements pertain to recoverability of long-lived assets, recoverability of goodwill, estimated useful lives of other intangible assets, variable compensation accruals, lease accounting, estimated fair value, self-insurance liabilities, stock-based compensation expense, estimated breakage on unredeemed gift cards and deferred revenue related to our customer loyalty program, legal contingencies, and income taxes. Actual results could differ from those estimates. The results of operations for any interim period are not necessarily indicative of results for the full year. | |
The accompanying condensed consolidated financial statements of Red Robin have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 29, 2013, has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required by generally accepted accounting principles. For further information, please refer to and read these interim condensed consolidated financial statements in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2013, filed with the SEC on February 24, 2014. | |
The Company’s quarter that ended April 20, 2014 is referred to as first quarter 2014, or the sixteen weeks ended April 20, 2014; the first quarter ended April 21, 2013 is referred to as first quarter 2013, or the sixteen weeks ended April 21, 2013. | |
Recently Issued Accounting Standards | |
In January 2013, the Financial Accounting Standards Board (“FASB”) issued Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This guidance clarifies the scope of transactions that are subject to the disclosures about offsetting and will require disclosure of information about the effect or potential effect of financial instrument netting arrangements on financial position. The guidance became effective for us at the beginning of our first quarter of fiscal year 2014 and did not have a material impact on our financial statements. | |
In July 2013, the FASB issued Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This guidance requires entities to present its unrecognized tax benefits net of its deferred tax assets when settlement in this manner is available under the tax law, which would be based on facts and circumstances as of the balance sheet reporting date and would not consider future events. Gross presentation in the notes to the financial statements will still be required. The guidance became effective for us at the beginning of our first quarter of fiscal year 2014 and did not have a material impact on our financial statements. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 4 Months Ended | ||||||||||||||||||||||||
Apr. 20, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets | |||||||||||||||||||||||||
The following table presents goodwill as of April 20, 2014, and December 29, 2013, (in thousands): | |||||||||||||||||||||||||
Balance, December 30, 2012 | $ | 62,525 | |||||||||||||||||||||||
Acquisition | — | ||||||||||||||||||||||||
Balance, December 29, 2013 | $ | 62,525 | |||||||||||||||||||||||
Acquisition | 2,083 | ||||||||||||||||||||||||
Balance, April 20, 2014 | $ | 64,608 | |||||||||||||||||||||||
The Company has had no goodwill impairment losses in the periods presented in the above table or any prior periods. Refer to Note 5, Acquisition of Red Robin Franchised Restaurant for details of the acquisition. | |||||||||||||||||||||||||
The following table presents intangible assets as of April 20, 2014, and December 29, 2013, (in thousands): | |||||||||||||||||||||||||
April 20, 2014 | December 29, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Franchise rights | $ | 46,611 | $ | (18,537 | ) | $ | 28,074 | $ | 43,330 | $ | (17,622 | ) | $ | 25,708 | |||||||||||
Leasehold interests | 12,656 | (5,272 | ) | 7,384 | 12,476 | (4,875 | ) | 7,601 | |||||||||||||||||
Liquor licenses | 9,937 | (9,378 | ) | 559 | 9,924 | (9,278 | ) | 646 | |||||||||||||||||
$ | 69,204 | $ | (33,187 | ) | $ | 36,017 | $ | 65,730 | $ | (31,775 | ) | $ | 33,955 | ||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Liquor licenses | $ | 2,845 | $ | — | $ | 2,845 | $ | 2,845 | $ | — | $ | 2,845 | |||||||||||||
Intangible assets, net | $ | 72,049 | $ | (33,187 | ) | $ | 38,862 | $ | 68,575 | $ | (31,775 | ) | $ | 36,800 | |||||||||||
There were no impairments to intangible assets during the sixteen weeks ended April 20, 2014, and April 21, 2013. The aggregate amortization expense related to intangible assets subject to amortization for the sixteen weeks ended April 20, 2014 and April 21, 2013 was $1.1 million and $1.4 million. | |||||||||||||||||||||||||
The estimated aggregate future amortization expense as of April 20, 2014 is as follows, (in thousands): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 2,289 | |||||||||||||||||||||||
2015 | 3,195 | ||||||||||||||||||||||||
2016 | 3,118 | ||||||||||||||||||||||||
2017 | 3,089 | ||||||||||||||||||||||||
2018 | 3,017 | ||||||||||||||||||||||||
Thereafter | 21,309 | ||||||||||||||||||||||||
$ | 36,017 | ||||||||||||||||||||||||
Stock_Incentive_Plans
Stock Incentive Plans | 4 Months Ended | ||||||||
Apr. 20, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Stock Incentive Plans | ' | ||||||||
Stock Incentive Plans | |||||||||
Under the Company's Second Amended and Restated 2007 Performance Incentive Plan (the "2007 Stock Plan"), various stock options and stock awards may be granted to employees of the Company and any of the Company's subsidiaries, directors of the Company, certain consultants and advisors to the Company or any of its subsidiaries. | |||||||||
Stock options are granted with an exercise price equal to the fair market value of shares of the Company's common stock at the grant date. We account for stock-based compensation in accordance with fair value recognition provisions, calculated using the Black-Scholes option pricing model ("the pricing model"). The weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model were as follows: | |||||||||
Sixteen Weeks Ended | |||||||||
April 20, 2014 | April 21, 2013 | ||||||||
Risk-free interest rate | 1.7 | % | 0.7 | % | |||||
Expected years until exercise | 5.8 | 4.1 | |||||||
Expected stock volatility | 44.7 | % | 44.3 | % | |||||
Dividend yield | — | % | — | % | |||||
Weighted average Black-Scholes fair value per share at date of grant | $ | 31.53 | $ | 14.84 | |||||
The following table presents a summary of the Company's stock-based compensation activity for the sixteen weeks ended April 20, 2014 (in thousands): | |||||||||
Stock Options | Restricted Stock Units | ||||||||
Outstanding, December 29, 2013 | 491 | 139 | |||||||
Granted | 67 | 19 | |||||||
Forfeited/ expired | (6 | ) | (4 | ) | |||||
Exercised/ vested | (42 | ) | (22 | ) | |||||
Outstanding, April 20, 2014 | 510 | 132 | |||||||
We recognized expense from stock-based compensation for sixteen weeks ended April 20, 2014 as follows (in thousands): | |||||||||
Sixteen Weeks Ended | |||||||||
April 20, 2014 | April 21, 2013 | ||||||||
Labor related | $ | 31 | $ | 69 | |||||
Selling, general and administrative related | 978 | 1,123 | |||||||
Total stock-based compensation | $ | 1,009 | $ | 1,192 | |||||
Earnings_per_Share
Earnings per Share | 4 Months Ended | ||||||||
Apr. 20, 2014 | |||||||||
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. During the sixteen weeks ended April 20, 2014 and April 21, 2013, weighted average stock options outstanding of $36.0 thousand and $114.0 thousand were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. The Company uses the treasury stock method to calculate the effect of outstanding stock options. The computations for basic and diluted earnings per share are as follows (in thousands, except per share data): | |||||||||
Sixteen Weeks Ended | |||||||||
4/20/14 | 4/21/13 | ||||||||
Net income | $ | 11,944 | $ | 9,480 | |||||
Basic weighted average shares outstanding | 14,352 | 14,062 | |||||||
Dilutive effect of stock options and awards | 240 | 279 | |||||||
Diluted weighted average shares outstanding | 14,592 | 14,341 | |||||||
Earnings per share: | |||||||||
Basic | $ | 0.83 | $ | 0.67 | |||||
Diluted | $ | 0.82 | $ | 0.66 | |||||
Acquisition_of_Red_Robin_Franc
Acquisition of Red Robin Franchised Restaurants | 4 Months Ended | ||||
Apr. 20, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Acquisition of Red Robin Franchised Restaurants | ' | ||||
Acquisition of Red Robin® Franchised Restaurants | |||||
On March 24, 2014, the Company acquired four restaurants from one of its franchisees as a part of its overall expansion strategy. The purchase price was $8.0 million in cash and the Company incurred acquisition costs of $0.1 million for sixteen weeks ended April 20, 2014. See Note 12, Subsequent Events for more information regarding acquisition costs incurred in the first quarter of 2014. The condensed consolidated statements of income include the results of operations for the restaurants from the date of acquisition. The pro forma impact of the acquisition is not presented, as the impact was not material to reported results. | |||||
The acquisition of the four restaurants was accounted for using the purchase method as defined in ASC 805, Business Combination. The goodwill generated by the acquisition is not amortizable for book purposes but is amortizable and deductible for tax purposes. The Company preliminary allocated the purchase price to the fair value of the assets acquired and liabilities assumed on the closing date as follows (in thousands): | |||||
Fair Value at | |||||
3/24/14 | |||||
Property, plant and equipment | 3,785 | ||||
Intangible assets | 3,132 | ||||
Goodwill | 2,083 | ||||
Other current and non-current assets | 276 | ||||
Gift card liabilities | (59 | ) | |||
Unfavorable market leases | (1,256 | ) | |||
Total purchase price | $ | 7,961 | |||
Of the $3.1 million of intangible assets, $2.6 million related to reacquired franchise rights, which will be amortized on a straight-line basis over a period of approximately 14 years, and $0.5 million related to a leasehold interest and will be amortized on a straight-line basis over a life of 9 years. The unfavorable market leases, which were included in Deferred rent in the accompany condensed consolidated balance sheets, will be amortized on a straight-line basis over a period of approximately 14 years. The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date is based on significant inputs not observed in the market and thus represents a level 3 measurement that is subject to change. |
Restaurant_Impairment_and_Rest
Restaurant Impairment and Restaurant Closures | 4 Months Ended |
Apr. 20, 2014 | |
Restructuring and Related Activities [Abstract] | ' |
Restaurant Impairment and Restaurant Closures | ' |
Restaurant Impairment and Restaurant Closures | |
The Company closed two restaurants during the first quarter 2014. Both restaurants had been impaired in fiscal year 2013 and no impairments were recorded during the first quarter 2014. The Company closed no restaurants during the first quarter 2013, and no impairments to restaurants were recorded during the first quarter 2013. | |
The Company evaluates restaurants that are closed and allocates goodwill based on the relative fair value of the disposal restaurants to the Company's reporting unit. Since restaurant operations are typically valued based on cash flow from operations, the Company compares the historical cash flow from the closed restaurants to the cash flow from the reporting unit to determine the relative value. No goodwill was allocated to the restaurants closed during first quarter 2014, because both restaurants had projected negative cash flow and consequently did not have positive fair value. |
Advertising_Costs
Advertising Costs | 4 Months Ended |
Apr. 20, 2014 | |
Other Income and Expenses [Abstract] | ' |
Advertising Costs | ' |
Advertising Costs | |
Costs incurred in connection with the advertising and marketing of the Company are included in selling, general and administrative expenses. Advertising and marketing includes salaries and benefits of marketing personnel, advertising, media and marketing materials. Advertising production costs are expensed in the period when the advertising first takes place. Other advertising and marketing costs are expensed as incurred. Advertising and marketing costs were $12.3 million and $11.1 million for the sixteen weeks ended April 20, 2014 and April 21, 2013, which included $10.3 million and $8.6 million related to selling expense. |
Derivative_and_Other_Comprehen
Derivative and Other Comprehensive Income | 4 Months Ended | ||||||||||||||||
Apr. 20, 2014 | |||||||||||||||||
Derivative and Other Comprehensive Income | ' | ||||||||||||||||
Derivative and Other Comprehensive Income | ' | ||||||||||||||||
Derivative and Other Comprehensive Income | |||||||||||||||||
The Company enters into derivative instruments for risk management purposes only, including a derivative designated as a cash flow hedge under guidance for derivative instruments and hedging activities. The Company uses interest rate-related derivative instruments to manage the exposure to fluctuations in interest rates. By using these instruments, the Company exposes itself, from time to time, to both credit and market risk. Credit risk is the failure of either party to the contract to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, creating credit risk for the Company. The Company minimizes credit risk by entering into transactions with high-quality counterparties whose credit ratings are evaluated on a quarterly basis. Market risk, as it relates to the Company's interest-rate derivative, is the adverse effect on the value of a financial instrument resulting from changes in interest rates. The Company minimizes market risk by establishing and monitoring parameters that limit the types and degree of market risk that the Company accepts. | |||||||||||||||||
The Company had one interest rate swap at April 20, 2014 and December 29, 2013 and its counterparty is Rabobank International, Utrecht ("Rabobank"). The Company entered into this variable-to-fixed interest rate swap agreement with Rabobank in August 2011 to hedge the floating interest rate on a portion of the term loan under the Company's credit facility. The interest rate swap was effective August 5, 2011 with an initial notional amount of $74.1 million. In accordance with its original terms, the notional amount of the interest rate swap amortizes over time from $74.1 million at inception to $50.6 million at its maturity on June 30, 2015. The remaining notional amount as of April 20, 2014 and December 29, 2013 was $60.0 million and $61.9 million. Under the terms of the interest rate swap, the quarterly cash payment or receipt is equal to the net of (1) the fixed interest rate of 1.135% paid by the Company and (2) the 3 month LIBOR rate for the applicable interest period received by the Company multiplied by the remaining notional amount as of the payment date. Concurrent with the December 14, 2012 refinancing of the previous facility, the Company de-designated the original hedging relationship and consequently re-designated the interest rate swap on the new credit facility's $225.0 million revolving line. | |||||||||||||||||
Changes in fair value of the interest rate swap are recorded, net of tax, as a component of accumulated other comprehensive income, in the accompanying consolidated balance sheets. The Company reclassifies the effective gain or loss from accumulated other comprehensive income, net of tax, to interest expense on the Company's consolidated statements of income as the interest expense is recognized on the related debt. The ineffective portion of the change in fair value of the interest rate swap, if any, is recognized directly in earnings in interest expense. Ineffectiveness from the Company's interest rate swap occurs because the fair value was not equal to zero when it was re-designated in December 2012. The following table presents the impact of the interest rate swap designated as a cash flow hedge as of April 20, 2014 (in thousands): | |||||||||||||||||
Derivative in cash flow hedging relationship | Amount of loss recognized in OCI on derivative (effective portion) | Location of loss reclassified from AOCI into income (effective portion) | Amount of loss reclassified from AOCI into income (effective portion) | Location of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Amount of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
Interest rate swap | $ | (70 | ) | Interest expense, net and other | $ | (29 | ) | Interest expense, net and other | $ | — | |||||||
The following table summarizes the fair value and presentation of the interest rate swap in the accompanying consolidated balance sheets as hedging instruments as of April 20, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||
Derivative Liability | |||||||||||||||||
Balance Sheet Location | Fair Value at | Fair Value at | |||||||||||||||
20-Apr-14 | December 29, 2013 | ||||||||||||||||
Accrued liabilities | $ | 492 | $ | 516 | |||||||||||||
Other non-current liabilities | 92 | 271 | |||||||||||||||
Total derivatives | $ | 584 | $ | 787 | |||||||||||||
The components of accumulated other comprehensive income related to the interest rate swap being used to hedge cash flows as of April 20, 2014 and December 29, 2013 were as follows (in thousands): | |||||||||||||||||
20-Apr-14 | 29-Dec-13 | ||||||||||||||||
Unrealized loss related to cash flow hedges, pretax | $ | (41 | ) | $ | (43 | ) | |||||||||||
Tax benefit | 16 | 13 | |||||||||||||||
Accumulated other comprehensive loss, net | $ | (25 | ) | $ | (30 | ) | |||||||||||
The interest rate swap was highly effective during the sixteen weeks ended April 20, 2014. Amounts reclassified from accumulated other comprehensive loss into interest expense represent payments made to the counterparty for the effective portion of the interest rate swap. The Company expects the swap to continue to be highly effective during the next twelve months. Approximately $76.0 thousand of the deferred losses included in accumulated other comprehensive loss on the accompanying consolidated balance sheets at April 20, 2014 is expected to be reclassified into earnings during the next twelve months. Additionally, the Company had no obligations as of April 20, 2014 to post collateral under the terms of the interest rate swap agreements. If the Company had breached any of its provisions at April 20, 2014, it could have been required to settle its obligations on the interest rate swap at a termination value of $0.6 million. |
Fair_Value_Measurements
Fair Value Measurements | 4 Months Ended |
Apr. 20, 2014 | |
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 receivables and accounts payables approximate fair value due to the short term nature or maturity of the instruments. | |
The Company maintains a rabbi trust to fund obligations under a deferred compensation plan. Amounts in the rabbi trust are invested in mutual funds, which are designated as trading securities and carried at fair value, and are included in Other assets, net in the accompanying condensed consolidated balance sheets. Fair market value of mutual funds is measured using level 1 inputs (quoted prices for identical assets in active markets). The fair value of the investments in the rabbi trust was $5.1 million and $3.8 million as of April 20, 2014 and December 29, 2013. The value of the deferred compensation plan liability is dependent upon the fair values of the assets held in the rabbi trust and therefore is not measured at fair value. | |
The derivative liability associated with the interest rate swap is considered to be a level 2 instrument. The interest rate swap is a standard cash flow hedge whose fair value is estimated using industry-standard valuation models. Such models project future cash flows and discount the future amounts to a present value using market-based observable inputs, including interest rate curves. See Note 8, Derivative and Other Comprehensive Income, for the discussion of the derivative liability. | |
Other than disclosed in Note 5, Acquisition of Red Robin Franchised Restaurants, as of April 20, 2014 and December 29, 2013, the Company had no financial assets or liabilities that were measured using level 3 inputs. The Company also had no non-financial assets or liabilities that were required to be measured on a recurring basis. | |
Disclosures of Fair Value of Other Assets and Liabilities | |
The Company's liabilities under its credit facility and capital leases are carried at historical cost in the accompanying consolidated balance sheets. For disclosure purposes, the Company estimated the fair value of the credit facility and capital lease obligations using discounted cash flow analysis based on market rates obtained from independent third parties for similar types of debt. Both the credit facility and the Company's capital lease obligations are considered to be level 2 instruments. The carrying value of the Company's credit facility as of April 20, 2014 and December 29, 2013 was $77.5 million and $78.5 million. The fair value of the Company's credit facility as of April 20, 2014 and December 29, 2013 was approximately$77.4 million and $78.4 million. There were $9.1 million of outstanding borrowings recorded for the Company's capital leases as of April 20, 2014, which have an estimated fair value of $10.3 million. At December 29, 2013, the carrying amount of the Company's capital lease obligations was $9.3 million and the fair value was $10.9 million. |
Commitments_and_Contingencies
Commitments and Contingencies | 4 Months Ended |
Apr. 20, 2014 | |
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. To date, no claims of these types of litigation, certain of which are covered by insurance policies, have had a material effect on the Company. While it is not possible to predict the outcome of these suits, legal proceedings and claims with certainty, management is of the opinion that adequate provision for potential losses associated with these matters has been made in the financial statements and that the ultimate resolution of these matters will not have a material effect on the Company's financial position and results of operations. |
Related_Party_Transactions
Related Party Transactions | 4 Months Ended |
Apr. 20, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
The former president and majority owner of one of the Company's former franchises served on the Company's board of directors from 2009 until his retirement in May 2013. The Company purchased 13 Red Robin® restaurants in Washington from this former franchisee in 2006. The retired board member is a principal of and holds, directly or indirectly, interests of between 45% and 100% in each of three privately-held entities that hold the leases for three of the acquired Washington restaurants. These leases were assumed by the Company in connection with the acquisition. Under these leases, the Company recognized rent and other related payments in the amounts of $0.4 million, $0.3 million for the sixteen weeks ended April 20, 2014 and April 21, 2013. Future minimum lease commitments under these leases are $3.1 million at April 20, 2014. |
Subsequent_Events
Subsequent Events | 4 Months Ended |
Apr. 20, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On April 30, 2014, the Company announced it had signed purchase agreements to acquire 32 Red Robin franchised restaurants in the United States and Canada, for approximately $40.0 million. The acquisition is expected to close late summer 2014 pending the completion of certain closing conditions. The Company incurred $0.5 million acquisition costs related to this acquisition for the sixteen weeks ended April 20, 2014. |
Basis_of_Presentation_and_Rece1
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 4 Months Ended |
Apr. 20, 2014 | |
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 and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates included in the preparation of these financial statements pertain to recoverability of long-lived assets, recoverability of goodwill, estimated useful lives of other intangible assets, variable compensation accruals, lease accounting, estimated fair value, self-insurance liabilities, stock-based compensation expense, estimated breakage on unredeemed gift cards and deferred revenue related to our customer loyalty program, legal contingencies, and income taxes. Actual results could differ from those estimates. The results of operations for any interim period are not necessarily indicative of results for the full year. | |
The accompanying condensed consolidated financial statements of Red Robin have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 29, 2013, has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required by generally accepted accounting principles. For further information, please refer to and read these interim condensed consolidated financial statements in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2013, filed with the SEC on February 24, 2014. | |
The Company’s quarter that ended April 20, 2014 is referred to as first quarter 2014, or the sixteen weeks ended April 20, 2014; the first quarter ended April 21, 2013 is referred to as first quarter 2013, or the sixteen weeks ended April 21, 2013. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In January 2013, the Financial Accounting Standards Board (“FASB”) issued Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This guidance clarifies the scope of transactions that are subject to the disclosures about offsetting and will require disclosure of information about the effect or potential effect of financial instrument netting arrangements on financial position. The guidance became effective for us at the beginning of our first quarter of fiscal year 2014 and did not have a material impact on our financial statements. | |
In July 2013, the FASB issued Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This guidance requires entities to present its unrecognized tax benefits net of its deferred tax assets when settlement in this manner is available under the tax law, which would be based on facts and circumstances as of the balance sheet reporting date and would not consider future events. Gross presentation in the notes to the financial statements will still be required. The guidance became effective for us at the beginning of our first quarter of fiscal year 2014 and did not have a material impact on our financial statements. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 4 Months Ended | ||||||||||||||||||||||||
Apr. 20, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of goodwill | ' | ||||||||||||||||||||||||
The following table presents goodwill as of April 20, 2014, and December 29, 2013, (in thousands): | |||||||||||||||||||||||||
Balance, December 30, 2012 | $ | 62,525 | |||||||||||||||||||||||
Acquisition | — | ||||||||||||||||||||||||
Balance, December 29, 2013 | $ | 62,525 | |||||||||||||||||||||||
Acquisition | 2,083 | ||||||||||||||||||||||||
Balance, April 20, 2014 | $ | 64,608 | |||||||||||||||||||||||
Schedule of intangible assets subject to amortization | ' | ||||||||||||||||||||||||
The following table presents intangible assets as of April 20, 2014, and December 29, 2013, (in thousands): | |||||||||||||||||||||||||
April 20, 2014 | December 29, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Franchise rights | $ | 46,611 | $ | (18,537 | ) | $ | 28,074 | $ | 43,330 | $ | (17,622 | ) | $ | 25,708 | |||||||||||
Leasehold interests | 12,656 | (5,272 | ) | 7,384 | 12,476 | (4,875 | ) | 7,601 | |||||||||||||||||
Liquor licenses | 9,937 | (9,378 | ) | 559 | 9,924 | (9,278 | ) | 646 | |||||||||||||||||
$ | 69,204 | $ | (33,187 | ) | $ | 36,017 | $ | 65,730 | $ | (31,775 | ) | $ | 33,955 | ||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Liquor licenses | $ | 2,845 | $ | — | $ | 2,845 | $ | 2,845 | $ | — | $ | 2,845 | |||||||||||||
Intangible assets, net | $ | 72,049 | $ | (33,187 | ) | $ | 38,862 | $ | 68,575 | $ | (31,775 | ) | $ | 36,800 | |||||||||||
Schedule of intangible assets not subject to amortization | ' | ||||||||||||||||||||||||
The following table presents intangible assets as of April 20, 2014, and December 29, 2013, (in thousands): | |||||||||||||||||||||||||
April 20, 2014 | December 29, 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Franchise rights | $ | 46,611 | $ | (18,537 | ) | $ | 28,074 | $ | 43,330 | $ | (17,622 | ) | $ | 25,708 | |||||||||||
Leasehold interests | 12,656 | (5,272 | ) | 7,384 | 12,476 | (4,875 | ) | 7,601 | |||||||||||||||||
Liquor licenses | 9,937 | (9,378 | ) | 559 | 9,924 | (9,278 | ) | 646 | |||||||||||||||||
$ | 69,204 | $ | (33,187 | ) | $ | 36,017 | $ | 65,730 | $ | (31,775 | ) | $ | 33,955 | ||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Liquor licenses | $ | 2,845 | $ | — | $ | 2,845 | $ | 2,845 | $ | — | $ | 2,845 | |||||||||||||
Intangible assets, net | $ | 72,049 | $ | (33,187 | ) | $ | 38,862 | $ | 68,575 | $ | (31,775 | ) | $ | 36,800 | |||||||||||
Schedule of estimated aggregate future amortization expense | ' | ||||||||||||||||||||||||
The estimated aggregate future amortization expense as of April 20, 2014 is as follows, (in thousands): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 2,289 | |||||||||||||||||||||||
2015 | 3,195 | ||||||||||||||||||||||||
2016 | 3,118 | ||||||||||||||||||||||||
2017 | 3,089 | ||||||||||||||||||||||||
2018 | 3,017 | ||||||||||||||||||||||||
Thereafter | 21,309 | ||||||||||||||||||||||||
$ | 36,017 | ||||||||||||||||||||||||
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 4 Months Ended | ||||||||
Apr. 20, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Schedule of average assumptions used in estimation of fair value of options | ' | ||||||||
The weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model were as follows: | |||||||||
Sixteen Weeks Ended | |||||||||
April 20, 2014 | April 21, 2013 | ||||||||
Risk-free interest rate | 1.7 | % | 0.7 | % | |||||
Expected years until exercise | 5.8 | 4.1 | |||||||
Expected stock volatility | 44.7 | % | 44.3 | % | |||||
Dividend yield | — | % | — | % | |||||
Weighted average Black-Scholes fair value per share at date of grant | $ | 31.53 | $ | 14.84 | |||||
Summary of status of the Company's stock option plans | ' | ||||||||
The following table presents a summary of the Company's stock-based compensation activity for the sixteen weeks ended April 20, 2014 (in thousands): | |||||||||
Stock Options | Restricted Stock Units | ||||||||
Outstanding, December 29, 2013 | 491 | 139 | |||||||
Granted | 67 | 19 | |||||||
Forfeited/ expired | (6 | ) | (4 | ) | |||||
Exercised/ vested | (42 | ) | (22 | ) | |||||
Outstanding, April 20, 2014 | 510 | 132 | |||||||
Schedule of recognized expense from stock-based compensation | ' | ||||||||
We recognized expense from stock-based compensation for sixteen weeks ended April 20, 2014 as follows (in thousands): | |||||||||
Sixteen Weeks Ended | |||||||||
April 20, 2014 | April 21, 2013 | ||||||||
Labor related | $ | 31 | $ | 69 | |||||
Selling, general and administrative related | 978 | 1,123 | |||||||
Total stock-based compensation | $ | 1,009 | $ | 1,192 | |||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 4 Months Ended | ||||||||
Apr. 20, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of computations for basic and diluted earnings per share | ' | ||||||||
The computations for basic and diluted earnings per share are as follows (in thousands, except per share data): | |||||||||
Sixteen Weeks Ended | |||||||||
4/20/14 | 4/21/13 | ||||||||
Net income | $ | 11,944 | $ | 9,480 | |||||
Basic weighted average shares outstanding | 14,352 | 14,062 | |||||||
Dilutive effect of stock options and awards | 240 | 279 | |||||||
Diluted weighted average shares outstanding | 14,592 | 14,341 | |||||||
Earnings per share: | |||||||||
Basic | $ | 0.83 | $ | 0.67 | |||||
Diluted | $ | 0.82 | $ | 0.66 | |||||
Acquisition_of_Red_Robin_Franc1
Acquisition of Red Robin Franchised Restaurants (Tables) | 4 Months Ended | ||||
Apr. 20, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Schedule of purchase price allocated | ' | ||||
The Company preliminary allocated the purchase price to the fair value of the assets acquired and liabilities assumed on the closing date as follows (in thousands): | |||||
Fair Value at | |||||
3/24/14 | |||||
Property, plant and equipment | 3,785 | ||||
Intangible assets | 3,132 | ||||
Goodwill | 2,083 | ||||
Other current and non-current assets | 276 | ||||
Gift card liabilities | (59 | ) | |||
Unfavorable market leases | (1,256 | ) | |||
Total purchase price | $ | 7,961 | |||
Derivative_and_Other_Comprehen1
Derivative and Other Comprehensive Income (Tables) | 4 Months Ended | ||||||||||||||||
Apr. 20, 2014 | |||||||||||||||||
Derivative and Other Comprehensive Income | ' | ||||||||||||||||
Schedule of interest rate swaps designated as a cash flow hedge | ' | ||||||||||||||||
The following table presents the impact of the interest rate swap designated as a cash flow hedge as of April 20, 2014 (in thousands): | |||||||||||||||||
Derivative in cash flow hedging relationship | Amount of loss recognized in OCI on derivative (effective portion) | Location of loss reclassified from AOCI into income (effective portion) | Amount of loss reclassified from AOCI into income (effective portion) | Location of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Amount of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ||||||||||||
Interest rate swap | $ | (70 | ) | Interest expense, net and other | $ | (29 | ) | Interest expense, net and other | $ | — | |||||||
Schedule of fair value and presentation of interest rate hedging instruments in condensed consolidated balance sheets | ' | ||||||||||||||||
The following table summarizes the fair value and presentation of the interest rate swap in the accompanying consolidated balance sheets as hedging instruments as of April 20, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||
Derivative Liability | |||||||||||||||||
Balance Sheet Location | Fair Value at | Fair Value at | |||||||||||||||
20-Apr-14 | December 29, 2013 | ||||||||||||||||
Accrued liabilities | $ | 492 | $ | 516 | |||||||||||||
Other non-current liabilities | 92 | 271 | |||||||||||||||
Total derivatives | $ | 584 | $ | 787 | |||||||||||||
Schedule of components of accumulated other comprehensive income | ' | ||||||||||||||||
The components of accumulated other comprehensive income related to the interest rate swap being used to hedge cash flows as of April 20, 2014 and December 29, 2013 were as follows (in thousands): | |||||||||||||||||
20-Apr-14 | 29-Dec-13 | ||||||||||||||||
Unrealized loss related to cash flow hedges, pretax | $ | (41 | ) | $ | (43 | ) | |||||||||||
Tax benefit | 16 | 13 | |||||||||||||||
Accumulated other comprehensive loss, net | $ | (25 | ) | $ | (30 | ) |
Basis_of_Presentation_and_Rece2
Basis of Presentation and Recent Accounting Pronouncements (Details) | 4 Months Ended | |
Apr. 20, 2014 | Apr. 21, 2013 | |
segment | ||
Franchisor Disclosure [Line Items] | ' | ' |
Length of fiscal period | '112 days | '112 days |
Number of operating segments | 1 | ' |
Number of reportable segments | 1 | ' |
Company-owned operated restaurants | ' | ' |
Franchisor Disclosure [Line Items] | ' | ' |
Number of restaurants | 367 | ' |
Number of states in which restaurants are located | 35 | ' |
Franchised restaurants | ' | ' |
Franchisor Disclosure [Line Items] | ' | ' |
Number of restaurants | 129 | ' |
Number of states in which restaurants are located | 19 | ' |
Number of Canadian provinces in which restaurants are located | 2 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 4 Months Ended | 12 Months Ended | |
Apr. 20, 2014 | Apr. 21, 2013 | Dec. 29, 2013 | |
Goodwill | ' | ' | ' |
Balance at beginning of year | $62,525,000 | $62,525,000 | $62,525,000 |
Acquisitions | 2,083,000 | ' | 0 |
Balance at end of year | 64,608,000 | ' | 62,525,000 |
Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 69,204,000 | ' | 65,730,000 |
Accumulated Amortization | -33,187,000 | ' | -31,775,000 |
Net Carrying Amount | 36,017,000 | ' | 33,955,000 |
Intangible assets, Gross Carrying Amount | 72,049,000 | ' | 68,575,000 |
Intangible assets, Accumulated Amortization | -33,187,000 | ' | -31,775,000 |
Intangible assets, Net Carrying Amount | 38,862,000 | ' | 36,800,000 |
Aggregate amortization expense | 1,100,000 | 1,400,000 | ' |
Liquor licenses | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross Carrying Amount, Indefinite-lived intangible assets | 2,845,000 | ' | 2,845,000 |
Accumulated Amortization, Indefinite-lived intangible assets | 0 | ' | 0 |
Net Carrying Amount, Indefinite-lived intangible assets | 2,845,000 | ' | 2,845,000 |
Franchise rights | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 46,611,000 | ' | 43,330,000 |
Accumulated Amortization | -18,537,000 | ' | -17,622,000 |
Net Carrying Amount | 28,074,000 | ' | 25,708,000 |
Leasehold interests | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 12,656,000 | ' | 12,476,000 |
Accumulated Amortization | -5,272,000 | ' | -4,875,000 |
Net Carrying Amount | 7,384,000 | ' | 7,601,000 |
Liquor licenses | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 9,937,000 | ' | 9,924,000 |
Accumulated Amortization | -9,378,000 | ' | -9,278,000 |
Net Carrying Amount | $559,000 | ' | $646,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 1) (USD $) | Apr. 20, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Estimated aggregate future amortization expense | ' | ' |
Remainder of 2014 | $2,289 | ' |
2015 | 3,195 | ' |
2016 | 3,118 | ' |
2017 | 3,089 | ' |
2018 | 3,017 | ' |
Thereafter | 21,309 | ' |
Net Carrying Amount | $36,017 | $33,955 |
Stock_Incentive_Plans_Details
Stock Incentive Plans (Details) (USD $) | 4 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 20, 2014 | Apr. 21, 2013 |
Stock-based compensation expense recognized | ' | ' |
Stock-based compensation expense | $1,009 | $1,192 |
Stock Options | ' | ' |
Weighted average assumptions used in estimation of fair value of options | ' | ' |
Risk-free interest rate (as a percent) | 1.70% | 0.70% |
Expected years until exercise | '5 years 9 months | '4 years 1 month |
Expected stock volatility (as a percent) | 44.70% | 44.30% |
Dividend yield (as a percent) | 0.00% | 0.00% |
Weighted average Black-Scholes fair value per share at date of grant (in dollars per share) | $31.53 | $14.84 |
Stock Options | ' | ' |
Outstanding, December 29, 2013 (in shares) | 491 | ' |
Granted (in shares) | 67 | ' |
Forfeited/ expired (in shares) | -6 | ' |
Exercised (shares) | -42 | ' |
Outstanding, April 20, 2014 (in shares) | 510 | ' |
Restricted Stock Units | ' | ' |
Restricted Stock Units | ' | ' |
Outstanding, December 29, 2013 (in shares) | 139 | ' |
Granted (in shares) | 19 | ' |
Forfeited/ expired (in shares) | -4 | ' |
Vested (in shares) | -22 | ' |
Outstanding, April 20, 2014 (in shares) | 132 | ' |
Labor related | ' | ' |
Stock-based compensation expense recognized | ' | ' |
Stock-based compensation expense | 31 | 69 |
Selling, general, administrative related | ' | ' |
Stock-based compensation expense recognized | ' | ' |
Stock-based compensation expense | $978 | $1,123 |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 4 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Apr. 20, 2014 | Apr. 21, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Weighted average stock options outstanding | 36,000 | 114,000 |
Net income | $11,944 | $9,480 |
Basic weighted average shares outstanding (in shares) | 14,352,000 | 14,062,000 |
Dilutive effect of stock options and awards (in shares) | 240,000 | 279,000 |
Diluted weighted average shares outstanding (in shares) | 14,592,000 | 14,341,000 |
Basic (in dollars per share) | $0.83 | $0.67 |
Diluted (in dollars per share) | $0.82 | $0.66 |
Acquisition_of_Red_Robin_Franc2
Acquisition of Red Robin Franchised Restaurants (Details) (USD $) | Apr. 20, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Mar. 24, 2014 | Apr. 20, 2014 | Mar. 24, 2014 | Mar. 24, 2014 | Mar. 24, 2014 |
March 2014, acquisition of four franchise restaurants | March 2014, acquisition of four franchise restaurants | Franchise rights | Leasehold interests | Unfavorable market lease | ||||
franchisee | March 2014, acquisition of four franchise restaurants | March 2014, acquisition of four franchise restaurants | March 2014, acquisition of four franchise restaurants | |||||
restaurant | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants acquired from franchisees | ' | ' | ' | 4 | ' | ' | ' | ' |
Number of franchisees | ' | ' | ' | 1 | ' | ' | ' | ' |
Purchase price, cash | ' | ' | ' | $8,000,000 | ' | ' | ' | ' |
Acquisition costs incurred | ' | ' | ' | ' | 100,000 | ' | ' | ' |
Amortization period of intangible assets | ' | ' | ' | ' | ' | '14 years | '9 years | '14 years |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | 3,785,000 | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | 3,132,000 | ' | 2,600,000 | 500,000 | ' |
Goodwill | 64,608,000 | 62,525,000 | 62,525,000 | 2,083,000 | ' | ' | ' | ' |
Other current and non-current assets | ' | ' | ' | 276,000 | ' | ' | ' | ' |
Gift card liabilities | ' | ' | ' | -59,000 | ' | ' | ' | ' |
Unfavorable market leases | ' | ' | ' | -1,256,000 | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | $7,961,000 | ' | ' | ' | ' |
Restaurant_Impairment_and_Rest1
Restaurant Impairment and Restaurant Closures (Details) (USD $) | 4 Months Ended | |
Apr. 20, 2014 | Apr. 21, 2013 | |
restaurant | restaurant | |
Restructuring and Related Activities [Abstract] | ' | ' |
Impairment recorded | $0 | $0 |
Number of restaurants closed | 2 | 0 |
Advertising_Costs_Details
Advertising Costs (Details) (USD $) | 4 Months Ended | |
In Millions, unless otherwise specified | Apr. 20, 2014 | Apr. 21, 2013 |
Other Income and Expenses [Abstract] | ' | ' |
Advertising and marketing costs | $12.30 | $11.10 |
Selling related expenses | $10.30 | $8.60 |
Derivative_and_Other_Comprehen2
Derivative and Other Comprehensive Income (Details) (USD $) | Apr. 20, 2014 | Dec. 29, 2013 | Apr. 20, 2014 | Apr. 20, 2014 | Dec. 29, 2013 | Aug. 05, 2011 | Apr. 20, 2014 | Dec. 14, 2012 |
Interest Rate Swap | Interest Rate Swap | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Interest expense, net and other | Revolving credit facility | |
Rabobank | Rabobank | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Cash Flow Hedging | New Credit Facility | |
interest_rate_swap | interest_rate_swap | Rabobank | Rabobank | Rabobank | ||||
Derivative and other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' |
Number of derivative instruments held | 1 | 1 | ' | ' | ' | ' | ' | ' |
Notional amount of derivatives | ' | ' | ' | $60,000,000 | $61,900,000 | $74,100,000 | ' | ' |
Estimated notional hedge amount on expiration date which is June 30, 2015 | 50,600,000 | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 225,000,000 |
Fixed rate of interest on derivative (as a percent) | 1.14% | ' | ' | ' | ' | ' | ' | ' |
Amount of loss recognized in OCI on derivative (effective portion) | ' | ' | -70,000 | ' | ' | ' | ' | ' |
Amount of loss reclassified from AOCI into income (effective portion) | ' | ' | ' | ' | ' | ' | -29,000 | ' |
Amount of loss recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ' | ' | ' | ' | ' | ' | $0 | ' |
Derivative_and_Other_Comprehen3
Derivative and Other Comprehensive Income (Details 2) (Designated as hedging instruments, Interest Rate Swap, USD $) | Apr. 20, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Designated as hedging instruments | Interest Rate Swap | ' | ' |
Derivative and other comprehensive income | ' | ' |
Accrued liabilities | $492 | $516 |
Other non-current liabilities | 92 | 271 |
Total derivatives | $584 | $787 |
Derivative_and_Other_Comprehen4
Derivative and Other Comprehensive Income (Details 3) (USD $) | 4 Months Ended | 12 Months Ended | ||
Apr. 20, 2014 | Apr. 21, 2013 | Apr. 20, 2014 | Dec. 29, 2013 | |
Cash Flow Hedging | Cash Flow Hedging | |||
Interest Rate Swap | Interest Rate Swap | |||
Accumulated other comprehensive income | ' | ' | ' | ' |
Unrealized loss related to cash flow hedges, pretax | ($41,000) | ($60,000) | ($41,000) | ($43,000) |
Tax benefit | 16,000 | 24,000 | 16,000 | 13,000 |
Other comprehensive loss, net of tax | -25,000 | -36,000 | -25,000 | -30,000 |
Deferred losses expected to be reclassified into earnings during next twelve months | ' | ' | 76,000 | ' |
Interest rate swap termination value | ' | ' | $600,000 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Apr. 20, 2014 | Dec. 29, 2013 |
In Millions, unless otherwise specified | ||
Recurring | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments held in rabbi trust, fair value | $5.10 | $3.80 |
Reported value measurement | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Credit facility | 77.5 | 78.5 |
Capital lease obligations | 9.1 | 9.3 |
Estimate of fair value | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Credit facility | 77.4 | 78.4 |
Capital lease obligations | $10.30 | $10.90 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Member and former franchisee appointed as board member, USD $) | 12 Months Ended | 4 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2006 | Apr. 20, 2014 | Apr. 20, 2014 | Apr. 20, 2014 | Apr. 20, 2014 | Apr. 21, 2013 |
restaurant | entity | Minimum | Maximum | Three privately-held entities | Three privately-held entities | |
restaurant | ||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' |
Number of restaurants acquired from member | 13 | ' | ' | ' | ' | ' |
Percentage of interests held in privately-held entity that hold leases for restaurants owned by the entity | ' | ' | 45.00% | 100.00% | ' | ' |
Number of privately-held entities | ' | 3 | ' | ' | ' | ' |
Number of restaurants for which privately-held entities hold leases | ' | ' | ' | ' | 3 | ' |
Rent and other related payments | ' | ' | ' | ' | $0.40 | $0.30 |
Future minimum lease commitments | ' | ' | ' | ' | $3.10 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Summer 2014, acquisition of 32 Red Robin restaurants, USD $) | 4 Months Ended |
In Millions, unless otherwise specified | Apr. 20, 2014 |
restaurant | |
Summer 2014, acquisition of 32 Red Robin restaurants | ' |
Subsequent Event [Line Items] | ' |
Number of restaurants | 32 |
Total cost for acquisitions | $40 |
Acquisition costs incurred | $0.50 |