Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Oct. 05, 2014 | Nov. 05, 2014 | |
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 | 5-Oct-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 14,017,194 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 05, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $19,940 | $17,108 |
Accounts receivable, net | 12,684 | 22,568 |
Inventories | 24,639 | 21,992 |
Prepaid expenses and other current assets | 13,817 | 15,766 |
Deferred tax asset and other | 3,058 | 3,212 |
Total current assets | 74,138 | 80,646 |
Property and equipment, net | 490,804 | 444,727 |
Goodwill | 86,727 | 62,525 |
Intangible assets, net | 43,429 | 36,800 |
Other assets, net | 12,849 | 9,947 |
Total assets | 707,947 | 634,645 |
Current liabilities: | ' | ' |
Trade accounts payable | 18,891 | 19,117 |
Construction related payables | 19,714 | 14,682 |
Accrued payroll and payroll-related liabilities | 42,069 | 45,919 |
Unearned revenue | 25,872 | 35,740 |
Accrued liabilities and other | 24,992 | 24,454 |
Total current liabilities | 131,538 | 139,912 |
Deferred rent | 56,510 | 51,985 |
Long-term debt | 147,375 | 79,375 |
Long-term portion of capital lease obligations | 8,071 | 8,513 |
Other non-current liabilities | 8,212 | 7,457 |
Total liabilities | 351,706 | 287,242 |
Stockholders’ equity: | ' | ' |
Common stock; $0.001 par value: 30,000 shares authorized; 17,845 and 17,851 shares issued; 14,033 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 3,812 and 3,501 shares, at cost | -131,898 | -110,486 |
Paid-in capital | 199,928 | 197,145 |
Accumulated other comprehensive loss, net of tax | -1,180 | -25 |
Retained earnings | 289,373 | 260,751 |
Total stockholders’ equity | 356,241 | 347,403 |
Total liabilities and stockholders’ equity | $707,947 | $634,645 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Oct. 05, 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 | 14,033,000 | 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 | 3,812,000 | 3,501,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 05, 2014 | Oct. 06, 2013 | Oct. 05, 2014 | Oct. 06, 2013 |
Revenues: | ' | ' | ' | ' |
Restaurant revenue | $263,883 | $226,844 | $850,696 | $762,647 |
Franchise royalties, fees and other revenues | 3,493 | 3,829 | 13,297 | 12,674 |
Total revenues | 267,376 | 230,673 | 863,993 | 775,321 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ' | ' | ' | ' |
Cost of sales | 68,241 | 57,253 | 216,150 | 190,259 |
Labor | 88,918 | 76,624 | 282,410 | 255,154 |
Other operating | 34,124 | 29,463 | 105,744 | 95,016 |
Occupancy | 21,222 | 17,132 | 64,122 | 56,484 |
Depreciation and amortization | 15,209 | 13,436 | 48,216 | 44,589 |
Selling, general and administrative expenses | 27,831 | 27,481 | 100,573 | 93,475 |
Pre-opening and acquisition costs | 2,605 | 2,482 | 7,045 | 4,607 |
Total costs and expenses | 258,150 | 223,871 | 824,260 | 739,584 |
Income from operations | 9,226 | 6,802 | 39,733 | 35,737 |
Other expense: | ' | ' | ' | ' |
Interest expense, net and other | 986 | 624 | 2,134 | 2,387 |
Income before income taxes | 8,240 | 6,178 | 37,599 | 33,350 |
Provision for income taxes | 1,032 | 1,517 | 8,977 | 8,070 |
Net income | $7,208 | $4,661 | $28,622 | $25,280 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.51 | $0.33 | $2 | $1.78 |
Diluted (in dollars per share) | $0.50 | $0.32 | $1.97 | $1.75 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 14,216 | 14,328 | 14,299 | 14,189 |
Diluted (in shares) | 14,397 | 14,600 | 14,517 | 14,472 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 05, 2014 | Oct. 06, 2013 | Oct. 05, 2014 | Oct. 06, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $7,208 | $4,661 | $28,622 | $25,280 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Net change in fair value of interest rate swap | -10 | -129 | -87 | -80 |
Net change in fair value of interest rate swap | 21 | 19 | 72 | 58 |
Tax (expense) benefit | -4 | 43 | 6 | 5 |
Net changes in derivative instrument | 7 | -67 | -9 | -17 |
Foreign currency translation adjustment | -1,146 | 0 | -1,146 | 0 |
Other comprehensive loss, net of tax | -1,139 | -67 | -1,155 | -17 |
Total comprehensive income | $6,069 | $4,594 | $27,467 | $25,263 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 05, 2014 | Oct. 06, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $28,622 | $25,280 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 48,216 | 44,589 |
Stock-based compensation expense | 3,211 | 3,099 |
Other, net | -1,998 | -4,196 |
Changes in operating assets and liabilities, net of business acquisitions: | ' | ' |
Accounts receivable | 7,958 | 1,997 |
Trade accounts payable and accrued liabilities | -1,125 | 13,940 |
Unearned revenue | -8,794 | -6,833 |
Other operating assets and liabilities, net | 6,848 | 4,306 |
Net cash provided by operating activities | 82,938 | 82,182 |
Cash flows from investing activities: | ' | ' |
Purchases of property, equipment and intangible assets | -75,859 | -50,393 |
Acquisition of franchise restaurants, net of cash acquired | -48,664 | 0 |
Other investing activities | -1,024 | 0 |
Net cash used in investing activities | -125,547 | -50,393 |
Cash flows from financing activities: | ' | ' |
Borrowings of long-term debt | 172,000 | 104,500 |
Payments of long-term debt and capital leases | -104,606 | -148,576 |
Purchase of common stock | -25,712 | -2,503 |
Debt issuance costs | -690 | 0 |
Tax benefit from exercise of stock options | 1,920 | 3,048 |
Proceeds from exercise of stock options and employee stock purchase plan | 2,579 | 7,266 |
Net cash provided by (used in) financing activities | 45,491 | -36,265 |
Effect of exchange rate changes on cash | -50 | 0 |
Net increase (decrease) in cash and cash equivalents | 2,832 | -4,476 |
Cash and cash equivalents, beginning of period | 17,108 | 22,440 |
Cash and cash equivalents, end of period | 19,940 | 17,964 |
Supplemental of cash flow information | ' | ' |
Income taxes paid | 12,496 | 4,786 |
Interest paid, net of amounts capitalized | $2,729 | $1,920 |
Basis_of_Presentation_and_Rece
Basis of Presentation and Recent Accounting Pronouncements | 9 Months Ended |
Oct. 05, 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 October 5, 2014, the Company owned and operated 409 restaurants located in 37 states and two Canadian provinces. The Company also sells franchises, of which there were 98 restaurants in 15 states as of October 5, 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. 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 October 5, 2014 is referred to as third quarter 2014, or the twelve weeks ended October 5, 2014; the quarter ended July 13, 2014 is referred to as second quarter 2014, or the twelve weeks ended July 13, 2014; the quarter ended April 20, 2014 is referred to as first quarter 2014, or the sixteen weeks ended April 20, 2014; and together the first, second, and third quarters of 2014 are referred to as the forty weeks ended October 5, 2014. The Company’s quarter that ended October 6, 2013 is referred to as third quarter 2013, or the twelve weeks ended October 6, 2013; the quarter ended July 14, 2013 is referred to as second quarter 2013, or the twelve weeks ended July 14, 2013; the quarter ended April 21, 2013 is referred to as first quarter 2013, or the sixteen weeks ended April 21, 2013; and together the first, second, and third quarters of 2013 are referred to as the forty weeks ended October 6, 2013. | |
Significant Accounting Policies | |
Our significant accounting policies are described in 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, except for the addition of the following accounting policies that we adopted as a result of our recent franchised restaurant acquisitions: | |
Business Combinations. The Company allocates the purchase price of an acquired business to its net identifiable assets and liabilities based on the estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. The Company uses all available information to estimate fair values including the fair value determination of indefinable intangible assets such as reacquired franchise rights, and any other significant assets or liabilities. In making these determinations, the Company may use the assistance of an independent third party valuation group. | |
Foreign Currency Translation. The Canadian dollar is the functional currency for our Canadian restaurant operations. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at exchange rates in effect as of the balance sheet date. Income and expense accounts are translated using the average exchange rates prevailing throughout the period. The resulting translation adjustment is recorded as a separate component of other comprehensive income (loss). Gain or loss from foreign currency transactions is recognized in our condensed consolidated statements of income. | |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The guidance is effective for reporting periods beginning after December 15, 2016. We are currently evaluating the impact this guidance will have on our consolidated financial position or results of operations. | |
In April 2014, the FASB issued guidance that changes the criteria for reporting discontinued operations. To qualify as a discontinued operation under the amended guidance, a component or group of components of an entity that has been disposed of or is classified as held for sale must represent a strategic shift that has or will have a major effect on the entity's operations and financial results. This guidance also expands related disclosure requirements. The guidance is effective for the reporting periods beginning after December 15, 2014. We do not expect the adoption of this guidance will have a material impact to our financial statements. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||
Oct. 05, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets | |||||||||||||||||||||||||
The following table presents goodwill as of October 5, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||||||||||
Balance, December 29, 2013 | $ | 62,525 | |||||||||||||||||||||||
Acquisitions | 24,891 | ||||||||||||||||||||||||
Effect of Foreign Currency Translation Adjustment | $ | (689 | ) | ||||||||||||||||||||||
Balance, October 5, 2014 | $ | 86,727 | |||||||||||||||||||||||
The Company has had no goodwill impairment losses in the periods presented in the above table or any prior periods. Refer to Note 5, Acquisitions of Red Robin Franchised Restaurants for details of the acquisitions. | |||||||||||||||||||||||||
The following table presents intangible assets as of October 5, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||||||||||
October 5, 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: | |||||||||||||||||||||||||
Acquired franchise rights and favorable leases | $ | 51,363 | $ | (19,786 | ) | $ | 31,577 | $ | 43,330 | $ | (17,622 | ) | $ | 25,708 | |||||||||||
Leasehold interests | 12,476 | (5,402 | ) | 7,074 | 12,476 | (4,875 | ) | 7,601 | |||||||||||||||||
Liquor licenses | 10,030 | (9,493 | ) | 537 | 9,924 | (9,278 | ) | 646 | |||||||||||||||||
$ | 73,869 | $ | (34,681 | ) | $ | 39,188 | $ | 65,730 | $ | (31,775 | ) | $ | 33,955 | ||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Liquor licenses | $ | 4,241 | $ | — | $ | 4,241 | $ | 2,845 | $ | — | $ | 2,845 | |||||||||||||
Intangible assets, net | $ | 78,110 | $ | (34,681 | ) | $ | 43,429 | $ | 68,575 | $ | (31,775 | ) | $ | 36,800 | |||||||||||
There were no impairments to intangible assets during the forty weeks ended October 5, 2014 and October 6, 2013. The aggregate amortization expense related to intangible assets subject to amortization was $1.0 million and $0.4 million for the twelve weeks ended October 5, 2014 and October 6, 2013, and $2.9 million and $2.8 million for the forty weeks ended October 5, 2014 and October 6, 2013. | |||||||||||||||||||||||||
The estimated aggregate future amortization expense as of October 5, 2014 is as follows, (in thousands): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 985 | |||||||||||||||||||||||
2015 | 4,121 | ||||||||||||||||||||||||
2016 | 3,942 | ||||||||||||||||||||||||
2017 | 3,810 | ||||||||||||||||||||||||
2018 | 3,546 | ||||||||||||||||||||||||
Thereafter | 22,784 | ||||||||||||||||||||||||
$ | 39,188 | ||||||||||||||||||||||||
Stock_Incentive_Plans
Stock Incentive Plans | 9 Months Ended | |||||||||||||||
Oct. 05, 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: | ||||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||
October 5, 2014 | October 6, 2013 | October 5, 2014 | October 6, 2013 | |||||||||||||
Risk-free interest rate | 1.4 | % | N/A | 1.7 | % | 0.7 | % | |||||||||
Expected years until exercise | 4.2 | N/A | 5.7 | 4.2 | ||||||||||||
Expected stock volatility | 40.2 | % | N/A | 44.6 | % | 44.4 | % | |||||||||
Dividend yield | — | % | N/A | — | % | — | % | |||||||||
Weighted average Black-Scholes fair value per share at date of grant | $ | 18.12 | N/A | $ | 30.7 | $ | 15.19 | |||||||||
The following table presents a summary of the Company’s stock-based compensation activity for the forty weeks ended October 5, 2014 (in thousands): | ||||||||||||||||
Stock Options | Restricted Stock Units | |||||||||||||||
Outstanding, December 29, 2013 | 491 | 139 | ||||||||||||||
Granted | 76 | 37 | ||||||||||||||
Forfeited/expired | (10 | ) | (5 | ) | ||||||||||||
Exercised/vested | (68 | ) | (70 | ) | ||||||||||||
Outstanding, October 5, 2014 | 489 | 101 | ||||||||||||||
We recognized expense from stock-based compensation for twelve weeks and forty weeks ended October 5, 2014 and October 6, 2013 as follows (in thousands): | ||||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||
October 5, 2014 | October 6, 2013 | October 5, 2014 | October 6, 2013 | |||||||||||||
Restaurant related | $ | 16 | $ | 25 | $ | 65 | $ | 129 | ||||||||
Selling, general and administrative related | 1,162 | 831 | 3,146 | 2,970 | ||||||||||||
Total stock-based compensation | $ | 1,178 | $ | 856 | $ | 3,211 | $ | 3,099 | ||||||||
Earnings_per_Share
Earnings per Share | 9 Months Ended | |||||||||||||||
Oct. 05, 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 twelve and forty weeks ended October 5, 2014, weighted average stock options outstanding of 79 thousand shares and 61 thousand shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. During the twelve and forty weeks ended October 6, 2013, weighted average stock options outstanding of 5 thousand shares and 102 thousand shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. The Company uses the treasury stock method to calculate the effect of outstanding stock options. The computations for basic and diluted earnings per share are as follows (in thousands, except per share data): | ||||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||
5-Oct-14 | 6-Oct-13 | 5-Oct-14 | 6-Oct-13 | |||||||||||||
Net income | $ | 7,208 | $ | 4,661 | $ | 28,622 | $ | 25,280 | ||||||||
Basic weighted average shares outstanding | 14,216 | 14,328 | 14,299 | 14,189 | ||||||||||||
Dilutive effect of stock options and awards | 181 | 272 | 218 | 283 | ||||||||||||
Diluted weighted average shares outstanding | 14,397 | 14,600 | 14,517 | 14,472 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.51 | $ | 0.33 | $ | 2 | $ | 1.78 | ||||||||
Diluted | $ | 0.5 | $ | 0.32 | $ | 1.97 | $ | 1.75 | ||||||||
Acquisitions_of_Red_Robin_Fran
Acquisitions of Red Robin Franchised Restaurants | 9 Months Ended | ||||
Oct. 05, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Acquisitions of Red Robin Franchised Restaurants | ' | ||||
Acquisitions of Red Robin Franchised Restaurants | |||||
The Company acquires franchised restaurants to enhance opportunity for future growth. On March 24, 2014, the Company acquired four restaurants from one of its U.S. franchisees with a purchase price of $8.0 million in cash. On July 14, 2014, the Company completed an acquisition of 32 Red Robin franchised restaurants, 14 in the United States and 18 in Canada, from Mach Robin, LLC and its Canadian affiliate, with a purchase price of $40.7 million in cash. | |||||
The pro forma impact of these acquisitions and the operating results of the acquired restaurants are not presented as the impact was not material to reported results. | |||||
The above acquisitions were accounted for using the purchase method as defined in ASC 805, Business Combinations. The goodwill arising from these acquisitions consists largely of the synergies and economies of scale expected from combining the acquired operations with the Company. The goodwill generated by the acquisitions is not amortizable for book purposes but is amortizable and deductible for tax purposes. The Company preliminarily allocated the purchase price to the fair value of the assets acquired and liabilities assumed as follows (in thousands): | |||||
Fair Value at | |||||
Acquisition Date | |||||
Property, plant and equipment | $ | 14,157 | |||
Intangible assets | 9,394 | ||||
Goodwill | 24,892 | ||||
Net working capital | 221 | ||||
Total purchase price | $ | 48,664 | |||
Of the $9.4 million of intangible assets, $7.6 million is related to reacquired franchise rights, which will be amortized on a straight-line basis over 10 to 14 years, and $1.3 million is related to acquired non-amortizable liquor licenses with an indefinite life. 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 fair value measurement. |
Impairment_and_Restaurant_Clos
Impairment and Restaurant Closures | 9 Months Ended |
Oct. 05, 2014 | |
Restructuring and Related Activities [Abstract] | ' |
Impairment and Restaurant Closures | ' |
Impairment and Restaurant Closures | |
The value of long-lived assets, including restaurants sites, leasehold improvements, information technology systems and other fixed assets are evaluated when events or changes in circumstances indicate that impairment may be present. As of October 5, 2014, the Company has approximately $8.0 million of software in development related to our supply chain and human resource management system modules. Subsequent to October 5, 2014, the Company completed an upgrade of its ERP system which will allow management to determine whether implementation of these modules will meet the Company's operating requirements. If the Company determines that the modules will not meet necessary operating requirements, it could result in an impairment of all or a portion of the investment. | |
The Company closed two restaurants during the first quarter 2014 and did not close any restaurants during the second quarter 2014. Both restaurants had been impaired in fiscal year 2013. The Company temporarily closed one restaurant due to public construction during the third quarter 2014 and expects to reopen this restaurant in 2015. No impairments to restaurants were recorded during the forty weeks ended October 5, 2014 and October 6, 2013. | |
The Company evaluates restaurants that are closed and allocates goodwill based on the relative fair value of the disposed 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 | 9 Months Ended |
Oct. 05, 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 $8.9 million and $8.4 million for the twelve weeks ended October 5, 2014 and October 6, 2013, which included $7.7 million and $6.8 million related to selling expense. Advertising and marketing costs were $32.2 million and $27.2 million for the forty weeks ended October 5, 2014 and October 6, 2013, which included $27.9 million and $22.0 million related to selling expense. |
Borrowings
Borrowings | 9 Months Ended | ||||||||
Oct. 05, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Borrowings | ' | ||||||||
Borrowings | |||||||||
Borrowings as of October 5, 2014 and December 29, 2013 are summarized below (in thousands): | |||||||||
5-Oct-14 | 29-Dec-13 | ||||||||
Revolving credit facility and other long-term debt | $ | 147,375 | $ | 79,375 | |||||
Capital lease obligations | 8,733 | 9,339 | |||||||
Total debt | 156,108 | 88,714 | |||||||
Less: Current portion | (662 | ) | (826 | ) | |||||
Long-term debt | $ | 155,446 | $ | 87,888 | |||||
On July 2, 2014, the Company replaced its existing credit facility (“Previous Credit Facility”) with a new credit facility (“New Credit Facility”) with the same lenders as the Previous Credit Facility. The New Credit Facility provides for a $250 million revolving line of credit with a sublimit for the issuance of up to $25 million in letters of credit and swingline loans up to $15 million, and includes an option to increase the amount available under the credit facility up to an additional $100 million in the aggregate, subject to the lenders’ participation. The New Credit Facility also provides a Canadian Dollar borrowing sublimit equivalent to $20 million. Borrowings under the New Credit Facility, if denominated in Dollars, are subject to rates based on the London Interbank Offered Rate (“LIBOR”) plus a spread based on leverage or a base rate plus a spread based on leverage (base rate is the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) LIBOR for an Interest Period of one month plus 1%). Borrowings under the New Credit Facility, if denominated in Canadian Dollars, are subject to rates based on LIBOR plus a spread based on leverage or a base rate plus a spread based on leverage (base rate is the highest of (a) the Canadian Prime Rate and (b) the Canadian Dealer Offered Rate (“CDOR Rate”) for an interest period of one month plus 1%). | |||||||||
The New Credit Facility matures on July 2, 2019. Borrowings under the New Credit Facility are secured by first priority liens and security interests in substantially all of the Company’s assets, including the capital stock of certain Company subsidiaries, and are available for financing activities including restaurant construction costs, working capital and general corporate purposes, including, among other uses, to refinance certain indebtedness, permitted acquisitions, and redemption of capital stock. As of October 5, 2014, the Company had outstanding borrowings under the New Credit Facility of $146.5 million, in addition to amounts issued under letters of credit of $8.0 million, which reduce the amount available under the credit facility but are not recorded as debt. As of December 29, 2013, the Company had outstanding borrowings under the Previous Credit Facility of $78.5 million, in addition to amounts issued under letters of credit of $8.1 million. | |||||||||
Loan origination costs associated with the New Credit Facility are included as deferred costs in Other assets, net in the accompanying consolidated balance sheets. Unamortized debt issuance costs were $1.9 million and $1.4 million as of October 5, 2014 and December 29, 2013. | |||||||||
The Company has a pay fixed/receive variable interest rate swap agreement with Rabobank International, Utrecht (“Rabobank”) to hedge the floating interest rate on its credit facilities. The terms of the Company’s interest rate swap with Rabobank were unaffected by the replacement of the Company’s Previous Credit Facility with the New Credit Facility on July 2, 2014. The notional amount hedged pursuant to the agreement as of October 5, 2014 and December 29, 2013 was $54.4 million and $61.9 million. Refer to Note 9, Derivative and Other Comprehensive Income. | |||||||||
The Company is subject to a number of customary covenants under its New Credit Facility, including limitations on additional borrowings, acquisitions, capital expenditures, share repurchases, lease commitments, and dividend payments, and requirements to maintain certain financial ratios. The Company was in compliance with such covenants as of October 5, 2014. |
Derivative_and_Other_Comprehen
Derivative and Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||||||||
Oct. 05, 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 October 5, 2014 and December 29, 2013 with Rabobank to hedge its floating interest rate borrowings. The Company entered into this variable-to-fixed interest rate swap agreement with Rabobank in August 2011 with an initial notional amount of $74.1 million. The notional amount 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 October 5, 2014 and December 29, 2013 was $54.4 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. The Company’s hedging relationship with Rabobank was not affected by the replacement of the Previous Credit Facility with the New Credit Facility on July 2, 2014. The designation of the interest rate swap applied on the New Credit Facility as the hedging relationship is still highly effective. Changes in fair value of the interest rate swap are recorded, net of tax, as a component of Accumulated other comprehensive income (“AOCI”), 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. The following table presents gains and losses on the interest rate swap designated as a cash flow hedge recognized in the Other comprehensive income (“OCI”) and reclassifications from AOCI to earnings for the twelve and forty weeks ended October 5, 2014 and October 6, 2013 (in thousands): | |||||||||||||||||||||||||
Gains (Losses) recognized in OCI on derivative (effective portion) | Losses reclassified from AOCI into income (effective portion) | Gains (Losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||||||||||||||
5-Oct-14 | 6-Oct-13 | 5-Oct-14 | 6-Oct-13 | 5-Oct-14 | 6-Oct-13 | ||||||||||||||||||||
Twelve Weeks Ended | $ | (10 | ) | $ | (129 | ) | $ | (21 | ) | $ | (19 | ) | $ | — | $ | 3 | |||||||||
Forty Weeks Ended | $ | (87 | ) | $ | (80 | ) | $ | (72 | ) | $ | (58 | ) | $ | 2 | $ | 3 | |||||||||
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 October 5, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||||||||||
Derivative Liability | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value at | Fair Value at | |||||||||||||||||||||||
5-Oct-14 | December 29, 2013 | ||||||||||||||||||||||||
Accrued liabilities | $ | 341 | $ | 516 | |||||||||||||||||||||
Other non-current liabilities | — | 271 | |||||||||||||||||||||||
Total derivatives | $ | 341 | $ | 787 | |||||||||||||||||||||
The components of accumulated other comprehensive income related to the interest rate swap being used to hedge cash flows as of October 5, 2014 and December 29, 2013 were as follows (in thousands): | |||||||||||||||||||||||||
5-Oct-14 | 29-Dec-13 | ||||||||||||||||||||||||
Unrealized loss related to cash flow hedges, pretax | $ | (48 | ) | $ | (43 | ) | |||||||||||||||||||
Tax benefit | 14 | 13 | |||||||||||||||||||||||
Accumulated other comprehensive loss related to interest rate swap | $ | (34 | ) | $ | (30 | ) | |||||||||||||||||||
The interest rate swap was highly effective during the twelve and forty weeks ended October 5, 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 until it matures on June 30, 2015. Approximately $48 thousand of the deferred losses included in accumulated other comprehensive loss on the accompanying consolidated balance sheets at October 5, 2014 is expected to be reclassified into earnings during the next twelve months. Additionally, the Company had no obligations as of October 5, 2014 to post collateral under the terms of the interest rate swap agreements. If the Company had breached any of its provisions at October 5, 2014, it could have been required to settle its obligations on the interest rate swap at a termination value of $0.3 million. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 05, 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 receivable, and accounts payable 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 $5.4 million and $3.8 million as of October 5, 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 9, Derivative and Other Comprehensive Income, for the discussion of the derivative liability. | |
Other than disclosed in Note 5, Acquisitions of Red Robin Franchised Restaurants, as of October 5, 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 October 5, 2014 and December 29, 2013 was $146.5 million and $78.5 million. The fair value of the Company’s credit facility as of October 5, 2014 and December 29, 2013 was approximately$146.4 million and $78.4 million. There were $8.7 million of outstanding borrowings recorded for the Company’s capital leases as of October 5, 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 | 9 Months Ended |
Oct. 05, 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 | 9 Months Ended |
Oct. 05, 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 $0.3 million and $0.9 million for the twelve and forty weeks ended October 6, 2013. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Oct. 05, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
The Company has evaluated subsequent events and found there to be no events requiring recognition or disclosure through the date of issuance of this report. |
Basis_of_Presentation_and_Rece1
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Oct. 05, 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. 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 October 5, 2014 is referred to as third quarter 2014, or the twelve weeks ended October 5, 2014; the quarter ended July 13, 2014 is referred to as second quarter 2014, or the twelve weeks ended July 13, 2014; the quarter ended April 20, 2014 is referred to as first quarter 2014, or the sixteen weeks ended April 20, 2014; and together the first, second, and third quarters of 2014 are referred to as the forty weeks ended October 5, 2014. The Company’s quarter that ended October 6, 2013 is referred to as third quarter 2013, or the twelve weeks ended October 6, 2013; the quarter ended July 14, 2013 is referred to as second quarter 2013, or the twelve weeks ended July 14, 2013; the quarter ended April 21, 2013 is referred to as first quarter 2013, or the sixteen weeks ended April 21, 2013; and together the first, second, and third quarters of 2013 are referred to as the forty weeks ended October 6, 2013. | |
Business Combinations | ' |
Business Combinations. The Company allocates the purchase price of an acquired business to its net identifiable assets and liabilities based on the estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. The Company uses all available information to estimate fair values including the fair value determination of indefinable intangible assets such as reacquired franchise rights, and any other significant assets or liabilities. In making these determinations, the Company may use the assistance of an independent third party valuation group. | |
Foreign Currency Translation | ' |
Foreign Currency Translation. The Canadian dollar is the functional currency for our Canadian restaurant operations. Assets and liabilities denominated in Canadian dollars are translated into U.S. dollars at exchange rates in effect as of the balance sheet date. Income and expense accounts are translated using the average exchange rates prevailing throughout the period. The resulting translation adjustment is recorded as a separate component of other comprehensive income (loss). Gain or loss from foreign currency transactions is recognized in our condensed consolidated statements of income. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The guidance is effective for reporting periods beginning after December 15, 2016. We are currently evaluating the impact this guidance will have on our consolidated financial position or results of operations. | |
In April 2014, the FASB issued guidance that changes the criteria for reporting discontinued operations. To qualify as a discontinued operation under the amended guidance, a component or group of components of an entity that has been disposed of or is classified as held for sale must represent a strategic shift that has or will have a major effect on the entity's operations and financial results. This guidance also expands related disclosure requirements. The guidance is effective for the reporting periods beginning after December 15, 2014. We do not expect the adoption of this guidance will have a material impact to our financial statements. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Oct. 05, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of goodwill | ' | ||||||||||||||||||||||||
The following table presents goodwill as of October 5, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||||||||||
Balance, December 29, 2013 | $ | 62,525 | |||||||||||||||||||||||
Acquisitions | 24,891 | ||||||||||||||||||||||||
Effect of Foreign Currency Translation Adjustment | $ | (689 | ) | ||||||||||||||||||||||
Balance, October 5, 2014 | $ | 86,727 | |||||||||||||||||||||||
Schedule of intangible assets subject to amortization | ' | ||||||||||||||||||||||||
The following table presents intangible assets as of October 5, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||||||||||
October 5, 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: | |||||||||||||||||||||||||
Acquired franchise rights and favorable leases | $ | 51,363 | $ | (19,786 | ) | $ | 31,577 | $ | 43,330 | $ | (17,622 | ) | $ | 25,708 | |||||||||||
Leasehold interests | 12,476 | (5,402 | ) | 7,074 | 12,476 | (4,875 | ) | 7,601 | |||||||||||||||||
Liquor licenses | 10,030 | (9,493 | ) | 537 | 9,924 | (9,278 | ) | 646 | |||||||||||||||||
$ | 73,869 | $ | (34,681 | ) | $ | 39,188 | $ | 65,730 | $ | (31,775 | ) | $ | 33,955 | ||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Liquor licenses | $ | 4,241 | $ | — | $ | 4,241 | $ | 2,845 | $ | — | $ | 2,845 | |||||||||||||
Intangible assets, net | $ | 78,110 | $ | (34,681 | ) | $ | 43,429 | $ | 68,575 | $ | (31,775 | ) | $ | 36,800 | |||||||||||
Schedule of intangible assets not subject to amortization | ' | ||||||||||||||||||||||||
The following table presents intangible assets as of October 5, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||||||||||
October 5, 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: | |||||||||||||||||||||||||
Acquired franchise rights and favorable leases | $ | 51,363 | $ | (19,786 | ) | $ | 31,577 | $ | 43,330 | $ | (17,622 | ) | $ | 25,708 | |||||||||||
Leasehold interests | 12,476 | (5,402 | ) | 7,074 | 12,476 | (4,875 | ) | 7,601 | |||||||||||||||||
Liquor licenses | 10,030 | (9,493 | ) | 537 | 9,924 | (9,278 | ) | 646 | |||||||||||||||||
$ | 73,869 | $ | (34,681 | ) | $ | 39,188 | $ | 65,730 | $ | (31,775 | ) | $ | 33,955 | ||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Liquor licenses | $ | 4,241 | $ | — | $ | 4,241 | $ | 2,845 | $ | — | $ | 2,845 | |||||||||||||
Intangible assets, net | $ | 78,110 | $ | (34,681 | ) | $ | 43,429 | $ | 68,575 | $ | (31,775 | ) | $ | 36,800 | |||||||||||
Schedule of estimated aggregate future amortization expense | ' | ||||||||||||||||||||||||
The estimated aggregate future amortization expense as of October 5, 2014 is as follows, (in thousands): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 985 | |||||||||||||||||||||||
2015 | 4,121 | ||||||||||||||||||||||||
2016 | 3,942 | ||||||||||||||||||||||||
2017 | 3,810 | ||||||||||||||||||||||||
2018 | 3,546 | ||||||||||||||||||||||||
Thereafter | 22,784 | ||||||||||||||||||||||||
$ | 39,188 | ||||||||||||||||||||||||
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 9 Months Ended | |||||||||||||||
Oct. 05, 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: | ||||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||
October 5, 2014 | October 6, 2013 | October 5, 2014 | October 6, 2013 | |||||||||||||
Risk-free interest rate | 1.4 | % | N/A | 1.7 | % | 0.7 | % | |||||||||
Expected years until exercise | 4.2 | N/A | 5.7 | 4.2 | ||||||||||||
Expected stock volatility | 40.2 | % | N/A | 44.6 | % | 44.4 | % | |||||||||
Dividend yield | — | % | N/A | — | % | — | % | |||||||||
Weighted average Black-Scholes fair value per share at date of grant | $ | 18.12 | N/A | $ | 30.7 | $ | 15.19 | |||||||||
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 forty weeks ended October 5, 2014 (in thousands): | ||||||||||||||||
Stock Options | Restricted Stock Units | |||||||||||||||
Outstanding, December 29, 2013 | 491 | 139 | ||||||||||||||
Granted | 76 | 37 | ||||||||||||||
Forfeited/expired | (10 | ) | (5 | ) | ||||||||||||
Exercised/vested | (68 | ) | (70 | ) | ||||||||||||
Outstanding, October 5, 2014 | 489 | 101 | ||||||||||||||
Schedule of recognized expense from stock-based compensation | ' | |||||||||||||||
We recognized expense from stock-based compensation for twelve weeks and forty weeks ended October 5, 2014 and October 6, 2013 as follows (in thousands): | ||||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||
October 5, 2014 | October 6, 2013 | October 5, 2014 | October 6, 2013 | |||||||||||||
Restaurant related | $ | 16 | $ | 25 | $ | 65 | $ | 129 | ||||||||
Selling, general and administrative related | 1,162 | 831 | 3,146 | 2,970 | ||||||||||||
Total stock-based compensation | $ | 1,178 | $ | 856 | $ | 3,211 | $ | 3,099 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Oct. 05, 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): | ||||||||||||||||
Twelve Weeks Ended | Forty Weeks Ended | |||||||||||||||
5-Oct-14 | 6-Oct-13 | 5-Oct-14 | 6-Oct-13 | |||||||||||||
Net income | $ | 7,208 | $ | 4,661 | $ | 28,622 | $ | 25,280 | ||||||||
Basic weighted average shares outstanding | 14,216 | 14,328 | 14,299 | 14,189 | ||||||||||||
Dilutive effect of stock options and awards | 181 | 272 | 218 | 283 | ||||||||||||
Diluted weighted average shares outstanding | 14,397 | 14,600 | 14,517 | 14,472 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.51 | $ | 0.33 | $ | 2 | $ | 1.78 | ||||||||
Diluted | $ | 0.5 | $ | 0.32 | $ | 1.97 | $ | 1.75 | ||||||||
Acquisitions_of_Red_Robin_Fran1
Acquisitions of Red Robin Franchised Restaurants (Tables) (Series of business acquisitions, 2014) | 9 Months Ended | ||||
Oct. 05, 2014 | |||||
Series of business acquisitions, 2014 | ' | ||||
Business Acquisition [Line Items] | ' | ||||
Schedule of purchase price allocated | ' | ||||
The Company preliminarily allocated the purchase price to the fair value of the assets acquired and liabilities assumed as follows (in thousands): | |||||
Fair Value at | |||||
Acquisition Date | |||||
Property, plant and equipment | $ | 14,157 | |||
Intangible assets | 9,394 | ||||
Goodwill | 24,892 | ||||
Net working capital | 221 | ||||
Total purchase price | $ | 48,664 | |||
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | ||||||||
Oct. 05, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of borrowings | ' | ||||||||
Borrowings as of October 5, 2014 and December 29, 2013 are summarized below (in thousands): | |||||||||
5-Oct-14 | 29-Dec-13 | ||||||||
Revolving credit facility and other long-term debt | $ | 147,375 | $ | 79,375 | |||||
Capital lease obligations | 8,733 | 9,339 | |||||||
Total debt | 156,108 | 88,714 | |||||||
Less: Current portion | (662 | ) | (826 | ) | |||||
Long-term debt | $ | 155,446 | $ | 87,888 | |||||
Derivative_and_Other_Comprehen1
Derivative and Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Oct. 05, 2014 | |||||||||||||||||||||||||
Derivative and Other Comprehensive Income | ' | ||||||||||||||||||||||||
Schedule of interest rate swaps designated as a cash flow hedge | ' | ||||||||||||||||||||||||
The following table presents gains and losses on the interest rate swap designated as a cash flow hedge recognized in the Other comprehensive income (“OCI”) and reclassifications from AOCI to earnings for the twelve and forty weeks ended October 5, 2014 and October 6, 2013 (in thousands): | |||||||||||||||||||||||||
Gains (Losses) recognized in OCI on derivative (effective portion) | Losses reclassified from AOCI into income (effective portion) | Gains (Losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||||||||||||||
5-Oct-14 | 6-Oct-13 | 5-Oct-14 | 6-Oct-13 | 5-Oct-14 | 6-Oct-13 | ||||||||||||||||||||
Twelve Weeks Ended | $ | (10 | ) | $ | (129 | ) | $ | (21 | ) | $ | (19 | ) | $ | — | $ | 3 | |||||||||
Forty Weeks Ended | $ | (87 | ) | $ | (80 | ) | $ | (72 | ) | $ | (58 | ) | $ | 2 | $ | 3 | |||||||||
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 October 5, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||||||||||
Derivative Liability | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value at | Fair Value at | |||||||||||||||||||||||
5-Oct-14 | December 29, 2013 | ||||||||||||||||||||||||
Accrued liabilities | $ | 341 | $ | 516 | |||||||||||||||||||||
Other non-current liabilities | — | 271 | |||||||||||||||||||||||
Total derivatives | $ | 341 | $ | 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 October 5, 2014 and December 29, 2013 were as follows (in thousands): | |||||||||||||||||||||||||
5-Oct-14 | 29-Dec-13 | ||||||||||||||||||||||||
Unrealized loss related to cash flow hedges, pretax | $ | (48 | ) | $ | (43 | ) | |||||||||||||||||||
Tax benefit | 14 | 13 | |||||||||||||||||||||||
Accumulated other comprehensive loss related to interest rate swap | $ | (34 | ) | $ | (30 | ) |
Basis_of_Presentation_and_Rece2
Basis of Presentation and Recent Accounting Pronouncements (Details) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||||
Oct. 05, 2014 | Jul. 13, 2014 | Oct. 06, 2013 | Jul. 14, 2013 | Apr. 20, 2014 | Apr. 21, 2013 | Oct. 05, 2014 | Oct. 06, 2013 | |
segment | ||||||||
Franchisor Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Length of fiscal period | '84 days | '84 days | '84 days | '84 days | '112 days | '112 days | '280 days | '280 days |
Number of operating segments | ' | ' | ' | ' | ' | ' | 1 | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | 1 | ' |
Company-owned operated restaurants | ' | ' | ' | ' | ' | ' | ' | ' |
Franchisor Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants | 409 | ' | ' | ' | ' | ' | 409 | ' |
Number of states in which restaurants are located | 37 | ' | ' | ' | ' | ' | 37 | ' |
Number of Canadian provinces in which restaurants are located | 2 | ' | ' | ' | ' | ' | 2 | ' |
Franchised restaurants | ' | ' | ' | ' | ' | ' | ' | ' |
Franchisor Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants | 98 | ' | ' | ' | ' | ' | 98 | ' |
Number of states in which restaurants are located | 15 | ' | ' | ' | ' | ' | 15 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Oct. 05, 2014 | Oct. 06, 2013 | Oct. 05, 2014 | Oct. 06, 2013 | Dec. 29, 2013 | |
Goodwill | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | $62,525,000 | ' | ' |
Acquisitions | ' | ' | 24,891,000 | ' | ' |
Effect of Foreign Currency Translation Adjustment | ' | ' | -689,000 | ' | ' |
Balance at end of year | 86,727,000 | ' | 86,727,000 | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 73,869,000 | ' | 73,869,000 | ' | 65,730,000 |
Accumulated Amortization | -34,681,000 | ' | -34,681,000 | ' | -31,775,000 |
Net Carrying Amount | 39,188,000 | ' | 39,188,000 | ' | 33,955,000 |
Intangible assets, Gross Carrying Amount | 78,110,000 | ' | 78,110,000 | ' | 68,575,000 |
Intangible assets, Accumulated Amortization | -34,681,000 | ' | -34,681,000 | ' | -31,775,000 |
Intangible assets, Net Carrying Amount | 43,429,000 | ' | 43,429,000 | ' | 36,800,000 |
Impairment to intangible assets | ' | ' | 0 | 0 | ' |
Aggregate amortization expense | 1,000,000 | 400,000 | 2,900,000 | 2,800,000 | ' |
Liquor licenses | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' |
Gross Carrying Amount, Indefinite-lived intangible assets | 4,241,000 | ' | 4,241,000 | ' | 2,845,000 |
Accumulated Amortization, Indefinite-lived intangible assets | 0 | ' | 0 | ' | 0 |
Net Carrying Amount, Indefinite-lived intangible assets | 4,241,000 | ' | 4,241,000 | ' | 2,845,000 |
Acquired franchise rights and favorable leases | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 51,363,000 | ' | 51,363,000 | ' | 43,330,000 |
Accumulated Amortization | -19,786,000 | ' | -19,786,000 | ' | -17,622,000 |
Net Carrying Amount | 31,577,000 | ' | 31,577,000 | ' | 25,708,000 |
Leasehold interests | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 12,476,000 | ' | 12,476,000 | ' | 12,476,000 |
Accumulated Amortization | -5,402,000 | ' | -5,402,000 | ' | -4,875,000 |
Net Carrying Amount | 7,074,000 | ' | 7,074,000 | ' | 7,601,000 |
Liquor licenses | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' |
Gross Carrying Amount | 10,030,000 | ' | 10,030,000 | ' | 9,924,000 |
Accumulated Amortization | -9,493,000 | ' | -9,493,000 | ' | -9,278,000 |
Net Carrying Amount | $537,000 | ' | $537,000 | ' | $646,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 1) (USD $) | Oct. 05, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Estimated aggregate future amortization expense | ' | ' |
Remainder of 2014 | $985 | ' |
2015 | 4,121 | ' |
2016 | 3,942 | ' |
2017 | 3,810 | ' |
2018 | 3,546 | ' |
Thereafter | 22,784 | ' |
Net Carrying Amount | $39,188 | $33,955 |
Stock_Incentive_Plans_Details
Stock Incentive Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 05, 2014 | Oct. 06, 2013 | Oct. 05, 2014 | Oct. 06, 2013 |
Stock-based compensation expense recognized | ' | ' | ' | ' |
Stock-based compensation expense | $1,178 | $856 | $3,211 | $3,099 |
Stock Options | ' | ' | ' | ' |
Weighted average assumptions used in estimation of fair value of options | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | 1.40% | ' | 1.70% | 0.70% |
Expected years until exercise | '4 years 2 months | ' | '5 years 8 months | '4 years 2 months |
Expected volatility (as a percent) | 40.20% | ' | 44.60% | 44.40% |
Dividend yield (as a percent) | 0.00% | ' | 0.00% | 0.00% |
Weighted average Black-Scholes fair value per share at date of grant (in dollars per share) | $18.12 | ' | $30.70 | $15.19 |
Stock Options | ' | ' | ' | ' |
Outstanding, Beginning of period (in shares) | ' | ' | 491 | ' |
Granted (in shares) | ' | ' | 76 | ' |
Forfeited/expired (in shares) | ' | ' | -10 | ' |
Exercised (in shares) | ' | ' | -68 | ' |
Outstanding, End of period(in shares) | 489 | ' | 489 | ' |
Restricted Stock Units | ' | ' | ' | ' |
Restricted Stock Units | ' | ' | ' | ' |
Outstanding, Beginning of period (in shares) | ' | ' | 139 | ' |
Granted (in shares) | ' | ' | 37 | ' |
Forfeited/expired (in shares) | ' | ' | -5 | ' |
Vested (in shares) | ' | ' | -70 | ' |
Outstanding, End of period (in shares) | 101 | ' | 101 | ' |
Restaurant related | ' | ' | ' | ' |
Stock-based compensation expense recognized | ' | ' | ' | ' |
Stock-based compensation expense | 16 | 25 | 65 | 129 |
Selling, general, administrative related | ' | ' | ' | ' |
Stock-based compensation expense recognized | ' | ' | ' | ' |
Stock-based compensation expense | $1,162 | $831 | $3,146 | $2,970 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 05, 2014 | Oct. 06, 2013 | Oct. 05, 2014 | Oct. 06, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Weighted average stock options outstanding (in shares) | 79 | 5 | 61 | 102 |
Net income | $7,208 | $4,661 | $28,622 | $25,280 |
Basic weighted average shares outstanding (in shares) | 14,216 | 14,328 | 14,299 | 14,189 |
Dilutive effect of stock options and awards (in shares) | 181 | 272 | 218 | 283 |
Diluted weighted average shares outstanding (in shares) | 14,397 | 14,600 | 14,517 | 14,472 |
Basic (in dollars per share) | $0.51 | $0.33 | $2 | $1.78 |
Diluted (in dollars per share) | $0.50 | $0.32 | $1.97 | $1.75 |
Acquisitions_of_Red_Robin_Fran2
Acquisitions of Red Robin Franchised Restaurants (Details) (USD $) | Jul. 14, 2014 | Mar. 24, 2014 | Oct. 05, 2014 | Mar. 24, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 | Jul. 14, 2014 |
Series of business acquisitions, 2014 | March 2014, acquisition of four franchise restaurants | March 2014, acquisition of four franchise restaurants | March 2014, acquisition of four franchise restaurants | July 2014, Acquisition of 32 Red Robin franchised restaurant | July 2014, Acquisition of 32 Red Robin franchised restaurant | Acquired franchise rights | Liquor licenses | United States | Canada | Minimum | Maximum | |
franchisee | restaurant | restaurant | Series of business acquisitions, 2014 | Series of business acquisitions, 2014 | July 2014, Acquisition of 32 Red Robin franchised restaurant | July 2014, Acquisition of 32 Red Robin franchised restaurant | Acquired franchise rights | Acquired franchise rights | ||||
restaurant | restaurant | restaurant | Series of business acquisitions, 2014 | Series of business acquisitions, 2014 | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants acquired from franchisees | ' | ' | ' | 4 | ' | 32 | ' | ' | 14 | 18 | ' | ' |
Number of franchisees | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price, cash | ' | $8,000,000 | ' | ' | $40,700,000 | ' | ' | ' | ' | ' | ' | ' |
Acquisition costs | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | $9,394,000 | ' | ' | ' | ' | ' | $7,600,000 | $1,300,000 | ' | ' | ' | ' |
Amortization period of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '14 years |
Acquisitions_of_Red_Robin_Fran3
Acquisitions of Red Robin Franchised Restaurants (Details 2) (USD $) | Oct. 05, 2014 | Dec. 29, 2013 | Jul. 14, 2014 |
In Thousands, unless otherwise specified | Series of business acquisitions, 2014 | ||
Business Acquisition [Line Items] | ' | ' | ' |
Property, plant and equipment | ' | ' | $14,157 |
Intangible assets | ' | ' | 9,394 |
Goodwill | 86,727 | 62,525 | 24,892 |
Net working capital | ' | ' | 221 |
Total purchase price | ' | ' | $48,664 |
Impairment_and_Restaurant_Clos1
Impairment and Restaurant Closures (Details) (USD $) | 3 Months Ended | 4 Months Ended | 9 Months Ended | ||
Oct. 05, 2014 | Apr. 20, 2014 | Oct. 05, 2014 | Oct. 06, 2013 | Dec. 29, 2013 | |
restaurant | restaurant | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property and equipment | $490,804,000 | ' | $490,804,000 | ' | $444,727,000 |
Number of restaurants closed | ' | 2 | ' | ' | ' |
Number of restaurants temporarily closed during period | 1 | ' | ' | ' | ' |
Impairment recorded | ' | ' | 0 | 0 | ' |
Software in development, related to supply chain and human resource management system modules | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property and equipment | $8,000,000 | ' | $8,000,000 | ' | ' |
Advertising_Costs_Details
Advertising Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Oct. 05, 2014 | Oct. 06, 2013 | Oct. 05, 2014 | Oct. 06, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Advertising and marketing costs | $8.90 | $8.40 | $32.20 | $27.20 |
Selling related expenses | $7.70 | $6.80 | $27.90 | $22 |
Borrowings_Details
Borrowings (Details) (USD $) | Oct. 05, 2014 | Dec. 29, 2013 | Oct. 05, 2014 | Dec. 29, 2013 | Oct. 05, 2014 | Dec. 29, 2013 | Dec. 29, 2013 | Dec. 29, 2013 | Jul. 02, 2014 | Oct. 05, 2014 | Jul. 02, 2014 | Oct. 05, 2014 | Jul. 02, 2014 | Jul. 02, 2014 | Jul. 02, 2014 | Oct. 05, 2014 | Dec. 29, 2013 | Aug. 05, 2011 | Oct. 05, 2014 | Dec. 29, 2013 | Jul. 02, 2014 | Jul. 02, 2014 | Jul. 02, 2014 |
Revolving credit facility | Revolving credit facility | Capital lease obligations | Capital lease obligations | Previous Facility | Previous Facility | New Credit Facility | New Credit Facility | New Credit Facility | New Credit Facility | New Credit Facility | New Credit Facility | New Credit Facility | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Other assets, net | Other assets, net | Federal Funds Rate | One month LIBOR | Canadian Dealer Offered Rate 'CDOR' | |||
Revolving credit facility | Letter of credit | Revolving credit facility | Revolving credit facility | Letter of credit | Letter of credit | Swingline loans | Canadian dollar borrowing equivalent | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | New Credit Facility | New Credit Facility | New Credit Facility | New Credit Facility | New Credit Facility | ||||||||
Rabobank | Rabobank | Rabobank | Revolving credit facility | Revolving credit facility | Revolving credit facility | ||||||||||||||||||
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt and capital lease obligations | $156,108,000 | $88,714,000 | $147,375,000 | $79,375,000 | $8,733,000 | $9,339,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Current portion | -662,000 | -826,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt and capital lease obligations | 155,446,000 | 87,888,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | 25,000,000 | 15,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing capacity subject to lender participation | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% | 1.00% |
Amounts outstanding | ' | ' | ' | ' | ' | ' | 78,500,000 | 8,100,000 | ' | 146,500,000 | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan origination costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | 1,400,000 | ' | ' | ' |
Notional amount of derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $54,400,000 | $61,900,000 | $74,100,000 | ' | ' | ' | ' | ' |
Derivative_and_Other_Comprehen2
Derivative and Other Comprehensive Income (Details) (USD $) | Oct. 05, 2014 | Dec. 29, 2013 | Oct. 05, 2014 | Oct. 06, 2013 | Oct. 05, 2014 | Oct. 06, 2013 | Oct. 05, 2014 | Dec. 29, 2013 | Aug. 05, 2011 |
Interest Rate Swap | Interest Rate Swap | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | |
Rabobank | Rabobank | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | |||||
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 | ' | ' | ' | ' | ' | ' | $54,400,000 | $61,900,000 | $74,100,000 |
Estimated notional hedge amount on expiration date which is June 30, 2015 | 50,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed rate of interest on derivative (as a percent) | 1.14% | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (Losses) recognized in OCI on derivative (effective portion) | ' | ' | -10,000 | -129,000 | -87,000 | -80,000 | ' | ' | ' |
Losses reclassified from AOCI into income (effective portion) | ' | ' | -21,000 | -19,000 | -72,000 | -58,000 | ' | ' | ' |
Gains (Losses) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ' | ' | $0 | $3,000 | $2,000 | $3,000 | ' | ' | ' |
Derivative_and_Other_Comprehen3
Derivative and Other Comprehensive Income (Details 2) (Designated as hedging instruments, Interest Rate Swap, USD $) | Oct. 05, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Derivative and other comprehensive income | ' | ' |
Total derivatives | $341 | $787 |
Accrued liabilities | ' | ' |
Derivative and other comprehensive income | ' | ' |
Accrued liabilities | 341 | 516 |
Other non-current liabilities | ' | ' |
Derivative and other comprehensive income | ' | ' |
Other non-current liabilities | $0 | $271 |
Derivative_and_Other_Comprehen4
Derivative and Other Comprehensive Income (Details 3) (USD $) | 9 Months Ended | |
Oct. 05, 2014 | Dec. 29, 2013 | |
Accumulated other comprehensive income | ' | ' |
Accumulated other comprehensive loss related to interest rate swap | ($1,180,000) | ($25,000) |
Cash Flow Hedging | Interest Rate Swap | ' | ' |
Accumulated other comprehensive income | ' | ' |
Unrealized loss related to cash flow hedges, pretax | -48,000 | -43,000 |
Tax benefit | 14,000 | 13,000 |
Accumulated other comprehensive loss related to interest rate swap | -34,000 | -30,000 |
Deferred losses expected to be reclassified into earnings during next twelve months | 48,000 | ' |
Interest rate swap termination value | $300,000 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Oct. 05, 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 | $5.40 | $3.80 |
Reported value measurement | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Credit facility | 146.5 | 78.5 |
Capital lease obligations | 8.7 | 9.3 |
Estimate of fair value | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Credit facility | 146.4 | 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 | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2006 | Oct. 05, 2014 | Oct. 05, 2014 | Oct. 05, 2014 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 05, 2014 |
restaurant | entity | Minimum | Maximum | Three privately-held entities | 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 | ' | ' | ' | ' | $0.30 | $0.90 | ' |