Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2014 | Feb. 19, 2015 | Jul. 13, 2014 |
Document and Entity Information | |||
Entity Registrant Name | RED ROBIN GOURMET BURGERS INC | ||
Entity Central Index Key | 1171759 | ||
Current Fiscal Year End Date | -16 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 28-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 14,044,572 | ||
Entity Public Float | $987.30 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $22,408 | $17,108 |
Accounts receivable, net | 23,740 | 22,568 |
Inventories | 25,947 | 21,992 |
Prepaid expenses and other current assets | 23,160 | 16,026 |
Deferred tax asset | 4,677 | 2,952 |
Total current assets | 99,932 | 80,646 |
Property and equipment, net | 496,262 | 444,727 |
Goodwill | 84,115 | 62,525 |
Intangible assets, net | 42,479 | 36,800 |
Other assets, net | 13,101 | 9,947 |
Total assets | 735,889 | 634,645 |
Current Liabilities: | ||
Trade accounts payable | 28,522 | 19,117 |
Construction related payables | 15,652 | 14,682 |
Accrued payroll and payroll-related liabilities | 47,362 | 45,919 |
Unearned revenue | 45,049 | 35,740 |
Accrued liabilities and other current liabilities | 27,084 | 24,454 |
Total current liabilities | 163,669 | 139,912 |
Deferred rent | 57,341 | 51,985 |
Long-term debt | 139,375 | 79,375 |
Long-term portion of capital lease obligations | 7,938 | 8,513 |
Other non-current liabilities | 7,795 | 7,457 |
Total liabilities | 376,118 | 287,242 |
Stockholders’ Equity: | ||
Common stock; $0.001 par value: 30,000 shares authorized; 17,851 and 17,851 shares issued; 14,043 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 3,808 and 3,501 shares, at cost | -132,252 | -110,486 |
Paid-in capital | 200,617 | 197,145 |
Accumulated other comprehensive loss, net of tax | -1,924 | -25 |
Retained earnings | 293,312 | 260,751 |
Total stockholders’ equity | 359,771 | 347,403 |
Total liabilities and stockholders’ equity | $735,889 | $634,645 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 28, 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 | 17,851,000 | 17,851,000 |
Common stock, shares outstanding | 14,043,000 | 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 | 3,808,000 | 3,501,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Revenues: | |||
Restaurant revenue | $1,129,135 | $1,000,198 | $960,994 |
Franchise royalties and fees | 13,637 | 14,378 | 14,501 |
Other revenue | 3,330 | 2,671 | 1,637 |
Total revenues | 1,146,102 | 1,017,247 | 977,132 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | |||
Cost of sales | 287,221 | 250,237 | 242,641 |
Labor (includes $81, $151, and $349 of stock-based compensation) | 372,657 | 335,113 | 323,100 |
Other operating | 140,972 | 123,479 | 125,471 |
Occupancy | 86,734 | 74,079 | 70,971 |
Depreciation and amortization | 64,579 | 58,200 | 55,468 |
Selling, general and administrative expenses (includes $4,089, $3,672, and $3,459 of stock-based compensation) | 132,158 | 124,278 | 110,798 |
Pre-opening and acquisition costs | 8,264 | 6,530 | 3,474 |
Asset impairment charges | 8,833 | 1,517 | 0 |
Total costs and expenses | 1,101,418 | 973,433 | 931,923 |
Income from operations | 44,684 | 43,814 | 45,209 |
Other (income) expense: | |||
Interest expense | 3,045 | 2,692 | 5,662 |
Loss on debt refinancing | 0 | 0 | 2,919 |
Interest income and other, net | -220 | -127 | -229 |
Total other expenses | 2,825 | 2,565 | 8,352 |
Income before income taxes | 41,859 | 41,249 | 36,857 |
Provision for income taxes | 9,298 | 9,010 | 8,526 |
Net income | $32,561 | $32,239 | $28,331 |
Earnings per share: | |||
Basic (in dollars per share) | $2.29 | $2.27 | $1.97 |
Diluted (in dollars per share) | $2.25 | $2.22 | $1.93 |
Weighted average shares outstanding: | |||
Basic (in shares) | 14,237 | 14,225 | 14,411 |
Diluted (in shares) | 14,447 | 14,510 | 14,669 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Income Statement [Abstract] | |||
Labor, stock-based compensation | $81 | $151 | $349 |
Selling, general and administrative expenses, stock-based compensation | $4,089 | $3,672 | $3,459 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $32,561 | $32,239 | $28,331 |
Other comprehensive income (loss), net of tax: | |||
Net change in fair value of interest rate swap | -94 | -123 | -1,127 |
Net loss reclassified into interest expense | 95 | 80 | 449 |
Loss on de-designation reclassified into loss on debt refinancing | 0 | 0 | 1,220 |
Tax (expense) benefit | 0 | 13 | -211 |
Net changes in derivative instruments | 1 | -30 | 331 |
Foreign currency translation adjustment | -1,900 | 0 | 0 |
Other comprehensive income (loss), net of tax | -1,899 | -30 | 331 |
Total comprehensive income | $30,662 | $32,209 | $28,662 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Treasury Stock | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) net of tax | Retained Earnings |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 25, 2011 | $294,698 | $17 | ($83,285) | $178,111 | ($326) | $200,181 |
Balance (in shares) at Dec. 25, 2011 | 2,697,000 | |||||
Balance (in shares) at Dec. 25, 2011 | 17,276,000 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan, (in shares) | 223,000 | |||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan | 3,146 | 3,146 | ||||
Excess tax benefit from exercise of stock options | 683 | 683 | ||||
Acquisition of treasury stock (in shares) | 802,722 | 803,000 | ||||
Acquisition of treasury stock | -24,304 | -24,304 | ||||
Non-cash stock compensation | 4,034 | 4,034 | ||||
Net income | 28,331 | 28,331 | ||||
Other comprehensive income (loss) | 331 | 331 | ||||
Balance at Dec. 30, 2012 | 306,919 | 17 | -107,589 | 185,974 | 5 | 228,512 |
Balance (in shares) at Dec. 30, 2012 | 3,500,000 | |||||
Balance (in shares) at Dec. 30, 2012 | 17,499,000 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan, (in shares) | 352,000 | -68,000 | ||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan | 5,807 | 1 | 2,106 | 3,700 | ||
Excess tax benefit from exercise of stock options | 3,481 | 3,481 | ||||
Acquisition of treasury stock (in shares) | 68,816 | 69,000 | ||||
Acquisition of treasury stock | -5,003 | -5,003 | ||||
Non-cash stock compensation | 3,990 | 3,990 | ||||
Net income | 32,239 | 32,239 | ||||
Other comprehensive income (loss) | -30 | -30 | ||||
Balance at Dec. 29, 2013 | 347,403 | 18 | -110,486 | 197,145 | -25 | 260,751 |
Balance (in shares) at Dec. 29, 2013 | 3,501,000 | 3,501,000 | ||||
Balance (in shares) at Dec. 29, 2013 | 17,851,000 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan, (in shares) | -157,000 | |||||
Exercise of options, issuance of restricted stock, shares exchanged for exercise and tax, and stock issued through employee stock purchase plan | 2,069 | 5,118 | -3,049 | |||
Excess tax benefit from exercise of stock options | 2,224 | 2,224 | ||||
Acquisition of treasury stock (in shares) | 463,780 | 464,000 | ||||
Acquisition of treasury stock | -26,884 | -26,884 | ||||
Non-cash stock compensation | 4,297 | 4,297 | ||||
Net income | 32,561 | 32,561 | ||||
Other comprehensive income (loss) | -1,899 | -1,899 | ||||
Balance at Dec. 28, 2014 | $359,771 | $18 | ($132,252) | $200,617 | ($1,924) | $293,312 |
Balance (in shares) at Dec. 28, 2014 | 3,808,000 | 3,808,000 | ||||
Balance (in shares) at Dec. 28, 2014 | 17,851,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Cash Flows From Operating Activities: | |||
Net income | $32,561 | $32,239 | $28,331 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 64,579 | 58,200 | 55,468 |
Gift card breakage | -2,284 | -2,106 | -1,486 |
Provision for deferred income taxes and benefit from exercise of stock options | -1,990 | -1,662 | 1,846 |
Loss on debt refinance | 0 | 0 | 2,919 |
Asset impairment charges | 8,833 | 1,517 | 0 |
Stock-based compensation | 4,170 | 3,823 | 3,808 |
Amortization of debt issuance costs and other | 702 | 449 | 1,652 |
Changes in operating assets and liabilities, net of effects of acquired business: | |||
Accounts receivable and other current assets | -1,279 | -2,334 | -4,062 |
Inventory | -1,949 | -3,621 | -285 |
Other assets | -6,466 | -1,816 | -3,408 |
Trade accounts payable, accrued and other liabilities | 12,051 | 17,571 | -696 |
Unearned revenue | 8,877 | 7,830 | 5,516 |
Deferred rent | 5,776 | 3,439 | 4,776 |
Net cash provided by operating activities | 123,581 | 113,529 | 94,379 |
Cash Flows From Investing Activities: | |||
Purchases of property, equipment and intangible assets | -107,703 | -78,876 | -59,960 |
Acquisition of franchise restaurants, net of cash acquired | -47,511 | 0 | -3,247 |
Other investing activities | -64 | 645 | -98 |
Net cash used in investing activities | -155,278 | -78,231 | -63,305 |
Cash Flows From Financing Activities: | |||
Borrowings of long-term debt | 231,000 | 141,500 | 125,000 |
Payments of long-term debt and capital leases | -171,817 | -188,783 | -147,049 |
Purchase of treasury stock | -26,884 | -5,003 | -24,304 |
Debt issuance costs | -690 | 0 | -949 |
Tax benefit from exercise of stock options | 2,224 | 3,481 | 0 |
Proceeds from exercise of stock options and employee stock purchase plan | 3,218 | 8,175 | 3,632 |
Net cash provided by (used in) financing activities | 37,051 | -40,630 | -43,670 |
Effect of exchange rate changes on cash and cash equivalents | -54 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 5,300 | -5,332 | -12,596 |
Cash and cash equivalents, beginning of year | 17,108 | 22,440 | 35,036 |
Cash and cash equivalents, end of year | $22,408 | $17,108 | $22,440 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies | ||||||||||||
Red Robin Gourmet Burgers, Inc., together with its subsidiaries (“Red Robin” or the “Company”), a Delaware corporation, develops and operates casual-dining and fast-casual restaurants. At December 28, 2014, the Company owned and operated 415 restaurants located in 38 states, Washington, D.C., and two Canadian provinces. The Company also sells franchises, of which there were 99 restaurants in 15 states as of December 28, 2014. The Company operates its business as one operating and one reportable segment. | |||||||||||||
Principles of Consolidation and Fiscal Year—The consolidated financial statements of the Company include the accounts of Red Robin and its wholly owned subsidiaries after elimination of all intercompany accounts and transactions. The Company’s fiscal year is 52 or 53 weeks ending the last Sunday of the calendar year. Fiscal year 2014 included 52 weeks ending December 28, 2014, fiscal year 2013 included 52 weeks ending December 29, 2013 and fiscal year 2012 included 53 weeks ending December 30, 2012. Fiscal year 2015 will include 52 weeks and will end on December 27, 2015. | |||||||||||||
Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 periods. The areas that require management’s most significant estimates are impairment of long lived assets, allocation of purchase price for business combinations, goodwill, lease accounting, insurance/self-insurance reserves, estimating fair value, income taxes, unearned revenue, and stock-based compensation expense. Actual results could differ from those estimates. | |||||||||||||
Cash Equivalents—The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. Amounts receivable from credit card issuers are typically converted to cash within 2 to 4 days of the original sales transaction and are considered to be cash equivalents. | |||||||||||||
Cash and cash equivalents are maintained with multiple financial institutions. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company holds cash and cash equivalents at financial institutions in excess of amounts covered by the Federal Depository Insurance Corporation (the “FDIC”) and sometimes invests excess cash in money market funds not insured by the FDIC. | |||||||||||||
Accounts Receivable—Accounts receivable consists primarily of trade receivables due from franchisees for royalties, as well as third-party gift card receivables. At the end of fiscal years 2014, there was approximately $12.7 million of gift cards in transit in accounts receivable related to gift cards that were sold by third-party retailers, but for which cash settlement occurs anywhere from 15 to 45 days from sale, compared to $10.7 million at the end of fiscal year 2013. At the end of fiscal years 2014, there was approximately $3.2 million related to tenant improvement allowances in accounts receivable compared to $5.2 million at the end of fiscal year 2013. | |||||||||||||
Inventories—Inventories consist of food, beverages, and supplies valued at the lower of cost (first-in, first-out method) or market. At the end of fiscal years 2014 and 2013, food and beverage inventories were $8.5 million and $6.8 million and supplies inventories were $17.4 million and $15.2 million. | |||||||||||||
Property and Equipment—Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are expensed as incurred. Depreciation is computed on the straight-line method, based on the shorter of the estimated useful lives or the terms of the underlying leases of the related assets. Interest incurred on funds used to construct Company-owned restaurants is capitalized and amortized over the estimated useful life of the related assets. Capitalized interest totaled $0.2 million in fiscal year 2014 and $0.3 million in both fiscal years 2013 and 2012. | |||||||||||||
The estimated useful lives for property and equipment are: | |||||||||||||
Buildings | 5 to 20 years | ||||||||||||
Leasehold improvements | Shorter of lease term or estimated useful life, not to exceed 20 years | ||||||||||||
Furniture, fixtures and equipment | 3 to 7 years | ||||||||||||
Restaurant property leased to others | 3 to 20 years | ||||||||||||
The Company capitalizes certain overhead related to the development and construction of its new restaurants, remodeling restaurants to the Company’s new brand standards, as well as certain information technology infrastructure upgrades. Capitalized overhead for the years ended December 28, 2014, December 29, 2013, and December 30, 2012 was $3.8 million, $3.4 million, and $2.7 million. Costs incurred for the potential development of restaurants that are subsequently terminated are expensed. No material expense has been incurred in any of the fiscal years presented. | |||||||||||||
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 identifiable 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. | |||||||||||||
Goodwill and Intangible Assets, net—Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired. Intangible assets are comprised primarily of leasehold interests, acquired franchise rights, and the costs of purchased liquor licenses. Leasehold interests primarily represent the fair values of acquired lease contracts having contractual rents lower than fair market rents and are amortized on a straight-line basis over the remaining initial lease term. Acquired franchise rights, which represented the acquired value of franchise contracts, are amortized over the term of the franchise agreements. The costs of obtaining non-transferable liquor licenses from local government agencies are capitalized and generally amortized over a period of up to 20 years. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets. | |||||||||||||
Goodwill, which is not subject to amortization, is evaluated for impairment annually or more frequently at the level of the Company’s single operating segment, which also represents the Company’s only reporting unit, if indicators of impairment are present. The Company performed step one of the impairment test on the last day of fiscal year, December 28, 2014. Step one of the impairment test is based upon a comparison of the carrying value of net assets, including goodwill balances, to the fair value of net assets. Fair value is measured using a combination of the market capitalization method, the income approach, and the market approach. The market capitalization method uses the Company’s stock price to derive fair value. The income approach consists of utilizing the discounted cash flow method that incorporates the Company’s estimates of future revenues and costs, discounted using a risk-adjusted discount rate. The Company’s estimates used in the income approach are consistent with the plans and estimates used to manage operations. The market approach utilizes multiples of profit measures in order to estimate the fair value of the assets. The Company evaluates all methods to ensure reasonably consistent results. Additionally, the Company evaluates the key input factors in the models used to determine whether a moderate change in any input factor or combination of factors would significantly change the results of the tests. Based on the completion of the step one test, it was determined that goodwill was not impaired as of December 28, 2014. However, an impairment charge may be triggered in the future if the value of the Company’s stock declines, sales in the Company’s restaurants decline significantly, or if there are significant adverse changes in the operating environment of the restaurant industry. The Company has followed a consistent approach to evaluating whether there are impairments of goodwill. The Company makes adjustments to assumptions to reflect management’s view of current market and economic conditions. There was no goodwill impairment recorded during fiscal years 2014, 2013, and 2012. | |||||||||||||
Liquor licenses with indefinite lives are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. We determine fair value based on prices in the open market for license in same or similar jurisdictions. No impairment charges were required to be recorded for fiscal years 2014, 2013, and 2012. | |||||||||||||
Impairment of Long-Lived Assets—The Company reviews its long-lived assets, including restaurant sites, leasehold improvements, information technology systems and other fixed assets, and amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If the assets are determined to be impaired, the amount of impairment recognized is the amount by which the carrying amount of the assets exceeds their fair value. Fair value is generally determined using forecasted cash flows discounted using an estimated weighted average cost of capital. Restaurant sites and other assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell. Information technology systems, such as internal-use computer software, are reviewed and tested for recoverability if the internal-use computer software is not expected to provide substantive service potential, a significant change occurs in the extent or manner in which the software is used or is expected to be used, a significant change is made or will be made to the software program, or costs of developing or modifying internal-use software significantly exceed the amount originally expected to develop or modify the software. | |||||||||||||
During fiscal years 2014 and 2013, the Company recorded impairments of certain long-lived assets. There was no impairment recorded during fiscal year 2012. See Note 4, Impairment and Restaurant Closures. | |||||||||||||
Fair Value Measurements—The Company measures certain financial assets and liabilities at fair value in accordance with the accounting guidance for measuring fair value. These assets and liabilities are measured at each reporting period, and certain of these are revalued as required. Refer to Note 10, Fair Value Measurements. | |||||||||||||
Other Assets, net—Other assets, net consist primarily of assets related to various deposits, the employee deferred compensation plan and unamortized debt issuance costs. Debt issuance costs are capitalized and amortized to interest expense on a straight-line basis which approximates the effective interest rate method over the term of the Company’s long term debt. Due to the Company’s refinancing of debt in July 2014, the Company capitalized an additional $0.7 million of loan origination costs. Refer to Note 8, Borrowings. Unamortized debt issuance costs at the end of fiscal years 2014 and 2013 were $1.8 million and $1.4 million. | |||||||||||||
Revenue Recognition—Revenues consist of sales from restaurant operations, gift card breakage, franchise royalties and fees, and other miscellaneous revenue. Revenues from restaurant sales are recognized when payment is tendered at the point of sale. | |||||||||||||
The Company sells gift cards which do not have an expiration date, and it does not deduct dormancy fees from outstanding gift card balances. The Company recognizes revenue from gift cards when: (i) the gift card is redeemed by the customer; or (ii) the likelihood of the gift card being redeemed by the customer is remote (gift card breakage), and the Company determines that there is not a legal obligation to remit the unredeemed gift card balance to the relevant jurisdiction. The determination of the gift card breakage rate is based upon the Company’s specific historical redemption patterns. The Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption. For the fiscal years ended 2014, 2013, and 2012, the Company recognized $2.3 million, $2.1 million and $1.5 million in revenue related to unredeemed gift card breakage. Gift card breakage is included in other revenue in the consolidated statements of operations. Unearned gift card revenue at the end of fiscal years 2014 and 2013 was $36.9 million and $29.8 million. | |||||||||||||
The Company typically grants franchise rights to franchisees for a term of 20 years, with the right to extend the term for an additional ten years if various conditions are satisfied by the franchisee. The Company provides management expertise, training, pre-opening assistance, and restaurant operating assistance in exchange for area development fees, franchise fees, license fees, and royalties of 3% to 4% of the franchised adjusted gross restaurant sales. The Company recognizes area development fees and franchise fees as income when the Company has performed all material obligations and initial services, which generally occurs upon the opening of the new restaurant. Until earned, these fees are accounted for as an accrued liability. Area development fees are recognized proportionately with the opening of each new restaurant. Royalties are accrued as earned and are calculated each period based on the franchisee’s reported adjusted sales. | |||||||||||||
The Company accounts for its Red Robin Royalty™ loyalty program using a deferred revenue approach in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) related to loyalty programs. Red Robin Royalty™ deferred revenue primarily relates to a program in which registered members earn an award for a free entrée for every nine entrées purchased. We recognize the current sale of an entrée and defer a portion of the revenue to reflect partial pre-payment for the future entrée the member is entitled to receive. We estimate the future value of the award based on the historical average value of redemptions. We also estimate what portion of registered members are not likely to reach the ninth purchase based on historical activity and recognize the deferred revenue related to those purchases. We recognize the deferred revenue in Restaurant revenue on earned rewards when redeemed or upon expiration, which is 60 days after the award is earned. We compare the estimate of the value of future awards to historical redemptions to evaluate the reasonableness of the deferred amount. Deferred loyalty revenue, which was included in Unearned revenue in the accompanying consolidated balance sheets, was $8.1 million and $5.9 million at December 28, 2014 and December 29, 2013. | |||||||||||||
Advertising—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 $43.5 million, $37.0 million, and $33.5 million in fiscal years 2014, 2013, and 2012, and are included in selling, general, and administrative expenses in the consolidated statements of income. | |||||||||||||
Under the Company’s franchise agreements, both the Company and the franchisees must contribute a minimum percentage of revenues to two marketing and national media advertising funds (the Marketing Funds). These Marketing Funds are used to develop and distribute Red Robin® branded marketing materials, for media purchases, and for administrative costs. The Company’s portion of costs incurred by the Marketing Funds is recorded as selling, general, and administrative expenses in the Company’s consolidated statements of income. | |||||||||||||
Rent—The Company’s leases generally contain escalating rent payments over the lease term as well as optional renewal periods. The Company accounts for its leases by recognizing rent expense on a straight-line basis over the lease term, which includes reasonably assured renewal periods. The lease term begins when the Company has the right to control the use of the property, which is typically before rent payments are due under the lease agreement. The difference between the rent expense and rent paid is recorded as deferred rent in the consolidated balance sheet. Rent expense for the period prior to the restaurant opening is expensed in pre-opening costs. Tenant incentives used to fund leasehold improvements are recorded in deferred rent and amortized as reductions of lease rent expense ratably over the lease term. | |||||||||||||
Additionally, certain of the Company’s operating lease agreements contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. The Company recognizes contingent rent expense prior to the achievement of the specified target that triggers contingent rent, provided the achievement of that target is considered probable. Refer to Note 13, Commitments and Contingencies. | |||||||||||||
Self-Insurance Programs—The Company utilizes a self-insurance plan for health, general liability, and workers’ compensation coverage. Predetermined loss limits have been arranged with insurance companies to limit the Company’s per occurrence cash outlay. Accrued liabilities and accrued payroll and payroll-related liabilities include the estimated cost to settle reported claims and incurred but unreported claims. | |||||||||||||
Pre-opening Costs—Pre-opening costs are expensed as incurred. Pre-opening costs include rental expenses through the date of opening for each restaurant, travel expenses, wages and benefits for the training and opening teams, and food, beverage and other restaurant opening costs incurred prior to a restaurant opening for business. | |||||||||||||
Income Taxes—Deferred tax liabilities are recognized for the estimated effects of all taxable temporary differences, and deferred tax assets are recognized for the estimated effects of all deductible temporary differences and net operating losses, if any, and tax credit carryforwards. Measurement of the Company’s current and deferred tax liabilities and assets is based on provisions of enacted tax laws. | |||||||||||||
Earnings Per Share—Basic earnings per share amounts are calculated by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share amounts are calculated based upon the weighted average number of common and potentially dilutive common shares outstanding during the year. 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 holdings into common stock. During fiscal years 2014, 2013 and 2012, a total of 65,000, 2,000, and 305,000 weighted average stock options outstanding 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 impact of outstanding stock options. | |||||||||||||
The computations for basic and diluted earnings per share for fiscal year ended December 28, 2014, December 29, 2013 and December 30, 2012 are as follows (in thousands, except per share data): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income | $ | 32,561 | $ | 32,239 | $ | 28,331 | |||||||
Shares: | |||||||||||||
Basic weighted average shares outstanding | 14,237 | 14,225 | 14,411 | ||||||||||
Dilutive effect of stock options and awards | 210 | 285 | 258 | ||||||||||
Diluted weighted average shares outstanding | 14,447 | 14,510 | 14,669 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 2.29 | $ | 2.27 | $ | 1.97 | |||||||
Diluted | $ | 2.25 | $ | 2.22 | $ | 1.93 | |||||||
Comprehensive Income (loss)—Comprehensive income (loss) consists of the net income or loss and other gains and losses affecting stockholders’ equity that, under U.S. GAAP, are excluded from net income. Other comprehensive income (loss) as presented in the consolidated statements of stockholders’ equity for fiscal years 2014, 2013 and 2012 consisted of the unrealized loss, net of tax, on the Company’s current cash flow hedge which will expire in June 2015, and the foreign currency translation adjustment. See Note 9, Derivative and Other Comprehensive Income. | |||||||||||||
Stock-Based Compensation—The Company maintains several equity incentive plans under which it may grant stock options, stock appreciation rights, restricted stock, stock variable compensation or other forms of awards granted or denominated in the Company’s common stock or units of the Company’s common stock, as well as cash variable compensation awards to employees, non-employees, directors, and consultants. The Company also maintains an employee stock purchase plan. See Note 16, Stock Incentive Plans, for additional details. | |||||||||||||
Deferred Compensation (Income) Expense —The Company has assets and liabilities related to a deferred compensation plan. In fiscal years 2013 and 2012, the Company purchased Company-owned whole-life insurance contracts on certain team members to offset the deferred compensation plan obligation. During the third quarter fiscal year 2013, the Company liquidated these insurance policies and placed the assets of the deferred compensation plan in a rabbi trust. Assets of the rabbi trust are invested in certain mutual funds that cover an investment spectrum range from equities to money market instruments. Increases in the market value of the investments held in the trust result in the recognition of deferred compensation expense reported in Selling, general and administrative expenses and recognition of investment gain reported in Interest income and other, net, in the consolidated statements of income. Decreases in the market value of the investments held in the trust result in the recognition of a reduction to deferred compensation expense and recognition of investment loss reported in Interest income and other, net, in the consolidated statements of income. We recognized deferred compensation expense and investment income of $0.3 million and $0.2 million in fiscal year 2014 and 2013. See Note 17, Employee Benefit Programs, for additional details. | |||||||||||||
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 consolidated statements of income. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 28, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
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. |
Acquisitions_of_Red_Robin_Fran
Acquisitions of Red Robin Franchised Restaurants | 12 Months Ended | |||
Dec. 28, 2014 | ||||
Business Combinations [Abstract] | ||||
Acquisitions of Red Robin Franchised Restaurants | Acquisitions of Red Robin Franchised Restaurants | |||
The Company acquires franchised restaurants from time to time. 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 $39.5 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 | 22,953 | |||
Inventory | 2,088 | |||
Deferred Tax Assets | 2,249 | |||
Deferred Tax Liabilities | (1,161 | ) | ||
Other current and non-current assets | 737 | |||
Other current and non-current liabilities | (2,906 | ) | ||
Total purchase price | 47,511 | |||
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 indefinite lives. Other current and non-current assets acquired primarily include prepaid expenses and deposits. Other current and non-current liabilities primarily consist of gift card and loyalty liabilities, accrued payroll related liabilities, unfavorable market leases, and other accrued operating expenses. | ||||
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 | 12 Months Ended |
Dec. 28, 2014 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restaurant Closures | Impairment and Restaurant Closures |
Impairment of Software in Development | |
During the fourth quarter of fiscal year 2014, the Company determined that certain software in development related to the supply chain and human resource management modules of an Enterprise Resource Planning (“ERP”) system would not meet the Company’s requirements if they were implemented. As the result, the Company recorded a $7.6 million impairment charge to write down the capitalized costs associated with the supply chain and human resource management system modules. | |
Restaurant Impairment | |
During fiscal year 2014, the Company determined that three Company-owned restaurants were impaired. The Company recognized a non-cash pre-tax impairment charge of $1.2 million resulting from the continuing and projected future results of these restaurants, primarily through projected cash flows. Each restaurant’s past and present operating performance were reviewed combined with projected future results, primarily through projected undiscounted cash flows, which indicated possible impairment. The Company compared the carrying amount of each restaurant’s assets to its fair value as estimated by management. The fair value of the long-lived assets is typically determined using a discounted cash flow projection model to estimate expected future cash flows. In certain cases, management uses market information, when available, to estimate the fair value of a restaurant. The impairment charges represent the excess of each restaurant’s carrying amount over its estimated fair value. | |
During fiscal year 2013, the Company impaired long-lived assets of four Company-owned restaurants, and recognized a non-cash pre-tax impairment charge of $1.5 million resulting from the continuing and projected losses of these restaurants. There were no restaurant impairments during fiscal year 2012. | |
Restaurant Closures | |
In fiscal year 2014, the Company closed three restaurants that operated below acceptable profitability levels and temporarily closed one restaurant due to public construction. The Company did not close any restaurants in fiscal year 2013. In fiscal year 2012, one restaurant operating below acceptable profitability levels was closed and two restaurants were closed at the end of their respective lease terms. The Company recorded immaterial restaurant closure expenses in fiscal years 2014 and 2012. | |
The Company evaluates restaurants that are sold or 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. The Company allocates goodwill to disposed restaurants, if necessary. No goodwill was allocated to the three restaurants that were permanently closed in fiscal year 2014, because those restaurants had projected negative cash flow and consequently did not have positive fair value. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | Property and Equipment | ||||||||
Property and equipment consist of the following at December 28, 2014, and December 29, 2013, (in thousands): | |||||||||
2014 | 2013 | ||||||||
Land | $ | 33,896 | $ | 33,896 | |||||
Buildings | 82,802 | 79,698 | |||||||
Leasehold improvements | 567,303 | 498,097 | |||||||
Furniture, fixtures and equipment | 265,980 | 257,524 | |||||||
Restaurant property leased to others | 4,554 | 4,554 | |||||||
Construction in progress | 9,813 | 18,178 | |||||||
964,348 | 891,947 | ||||||||
Accumulated depreciation and amortization | (468,086 | ) | (447,220 | ) | |||||
Property and equipment, net | $ | 496,262 | $ | 444,727 | |||||
Depreciation and amortization expense on property and equipment, including assets under capital lease, was $60.6 million in fiscal year 2014, $54.5 million in fiscal year 2013 and $50.9 million in fiscal year 2012. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | ||||||||||||||||||||||||
The following table presents goodwill as of December 28, 2014, and December 29, 2013, (in thousands). | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Balance at beginning of year | $ | 62,525 | $ | 62,525 | |||||||||||||||||||||
Acquisitions | 22,953 | — | |||||||||||||||||||||||
Translation adjustment | (1,363 | ) | — | ||||||||||||||||||||||
Balance at end of year | $ | 84,115 | $ | 62,525 | |||||||||||||||||||||
The Company has had no goodwill impairment losses in the periods presented in the above table or any prior periods. | |||||||||||||||||||||||||
The following table presents intangible assets subject to amortization as of December 28, 2014, and December 29, 2013, (in thousands): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Franchise rights | $ | 50,826 | $ | (20,583 | ) | $ | 30,243 | $ | 43,330 | $ | (17,622 | ) | $ | 25,708 | |||||||||||
Leasehold interests | 12,991 | (5,553 | ) | 7,438 | 12,476 | (4,875 | ) | 7,601 | |||||||||||||||||
Liquor licenses | 10,058 | (9,548 | ) | 510 | 9,924 | (9,278 | ) | 646 | |||||||||||||||||
$ | 73,875 | $ | (35,684 | ) | $ | 38,191 | $ | 65,730 | $ | (31,775 | ) | $ | 33,955 | ||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Liquor licenses | $ | 4,288 | $ | — | $ | 4,288 | $ | 2,845 | $ | — | $ | 2,845 | |||||||||||||
Intangible assets, net | $ | 78,163 | $ | (35,684 | ) | $ | 42,479 | $ | 68,575 | $ | (31,775 | ) | $ | 36,800 | |||||||||||
No impairment charges were recorded related to indefinite-lived intangibles in fiscal years 2014, 2013, or 2012. There were insignificant impairments of franchise rights and leasehold interests related to the three restaurants impaired in fiscal year 2014 and four restaurants impaired in fiscal year 2013, which are discussed in Note 4, Impairment and Restaurant Closures. There were no other impairments of intangible assets subject to amortization in fiscal years 2014, 2013, or 2012. | |||||||||||||||||||||||||
The aggregate amortization expense related to intangible assets subject to amortization for fiscal years 2014, 2013, and 2012 was $3.9 million, $3.7 million, and $4.6 million. | |||||||||||||||||||||||||
The estimated aggregate future amortization expense as of December 28, 2014 is as follows, (in thousands): | |||||||||||||||||||||||||
2015 | $ | 4,176 | |||||||||||||||||||||||
2016 | 3,933 | ||||||||||||||||||||||||
2017 | 3,802 | ||||||||||||||||||||||||
2018 | 3,530 | ||||||||||||||||||||||||
2019 | 3,459 | ||||||||||||||||||||||||
Thereafter | 19,291 | ||||||||||||||||||||||||
$ | 38,191 | ||||||||||||||||||||||||
Accrued_Payroll_and_Payrollrel
Accrued Payroll and Payroll-related Liabilities, and Accrued Liabilities and Other Current Liabilities | 12 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Payroll and Payroll-related Liabilities, and Accrued Liabilities and Other Current Liabilities | Accrued Payroll and Payroll-related Liabilities, and Accrued Liabilities and Other Current Liabilities | ||||||||
Accrued payroll and payroll-related liabilities consist of the following at December 28, 2014 and December 29, 2013 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Payroll | $ | 9,195 | $ | 8,498 | |||||
Corporate and restaurant variable compensation | 15,077 | 17,893 | |||||||
Workers compensation insurance | 7,563 | 6,020 | |||||||
Accrued vacation | 5,809 | 5,256 | |||||||
Other | 9,718 | 8,252 | |||||||
$ | 47,362 | $ | 45,919 | ||||||
Accrued liabilities and other current liabilities consist of the following at December 28, 2014 and December 29, 2013 (in thousands): | |||||||||
2014 | 2013 | ||||||||
State and city sales taxes | $ | 6,839 | $ | 5,965 | |||||
Real estate, personal property, state income and other taxes payable | 2,999 | 2,360 | |||||||
General liability insurance | 3,531 | 3,996 | |||||||
Utilities | 2,938 | 2,177 | |||||||
Other | 10,777 | 9,956 | |||||||
$ | 27,084 | $ | 24,454 | ||||||
Borrowings
Borrowings | 12 Months Ended | ||||||||||||||
Dec. 28, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Borrowings | Borrowings | ||||||||||||||
Borrowings as of December 28, 2014, and December 29, 2013, are summarized below (in thousands): | |||||||||||||||
2014 | 2013 | ||||||||||||||
Borrowings | Weighted | Borrowings | Weighted | ||||||||||||
Average | Average | ||||||||||||||
Interest Rate | Interest Rate | ||||||||||||||
Revolving credit facility and other long-term debt | $ | 139,375 | 1.71 | % | $ | 79,375 | 1.73 | % | |||||||
Capital lease obligations | 8,521 | 5.11 | % | 9,339 | 5.43 | % | |||||||||
Total debt and capital lease obligations | 147,896 | 88,714 | |||||||||||||
Less: Current portion | (583 | ) | (826 | ) | |||||||||||
Long-term debt and capital lease obligations | $ | 147,313 | $ | 87,888 | |||||||||||
Maturities of long-term debt and capital lease obligations as of December 28, 2014 are as follows (in thousands): | |||||||||||||||
2015 | $ | 583 | |||||||||||||
2016 | 535 | ||||||||||||||
2017 | 564 | ||||||||||||||
2018 | 598 | ||||||||||||||
2019 | 139,136 | ||||||||||||||
Thereafter | 6,480 | ||||||||||||||
$ | 147,896 | ||||||||||||||
On December 14, 2012, the Company terminated its prior credit arrangements and entered into a credit facility (“Previous Credit Facility”) with a consortium of banks. The Previous Credit Facility provided for a $225 million revolving line of credit with a sublimit for the issuance of up to $25 million in letters of credits and swingline loans up to $15 million and included an option to increase the amount available under the credit facility up to an additional $100 million in the aggregate, subject to lenders’ participation. Borrowings under the Previous Credit Facility were 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 Prime Rate, (b) the Federal Funds Rate plus .50% and (c) LIBOR for an Interest Period of one month plus 1%). The Previous Credit Facility had a maturity date of December 14, 2017. Borrowings under the Previous Credit Facility were 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 were 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 the result of refinancing, in fiscal year 2012, the Company recorded a non-cash, pre-tax charge of approximately $2.9 million, comprised of a write-off of unamortized fees from the prior credit arrangements of $1.7 million and a charge related to the de-designation of an interest rate swap of $1.2 million (see Note 9, Derivative and Other Comprehensive Income). 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, which reduced the amount available under the credit facility but were not recorded as debt. | |||||||||||||||
On July 2, 2014, the Company replaced the Previous Credit Facility with a new credit facility (“New Credit Facility”) with the same group of lenders. 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 US 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 .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 December 28, 2014, the Company had outstanding borrowings under the New Credit Facility of $138.5 million, in addition to amounts issued under letters of credit of $8.2 million, which reduced the amount available under the credit facility but were not recorded as debt. | |||||||||||||||
Loan origination costs associated with the New Credit Facility were $0.7 million and are included as deferred costs in Other assets, net in the accompanying consolidated balance sheets. Unamortized debt issuance costs were $1.8 million and $1.4 million as of December 28, 2014 and December 29, 2013. | |||||||||||||||
The Company has a pay fixed/receive variable interest rate swap agreement with Rabobank International, Utrecht (“Rabobank”) to hedge a portion of 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. 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, dividend payments, and requirements to maintain certain financial ratios. The Company was in compliance with such covenants as of December 28, 2014. |
Derivative_and_Other_Comprehen
Derivative and Other Comprehensive Income | 12 Months Ended | ||||||||||||||||||||||||
Dec. 28, 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 December 28, 2014 and December 29, 2013 with Rabobank to hedge a portion of its floating interest rate borrowings. The Company entered into this variable-to-fixed interest rate swap agreement 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 December 28, 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. | |||||||||||||||||||||||||
Concurrent with the December 14, 2012 refinancing of Company’s prior credit arrangements (See Note 8 Borrowings), the Company de-designated the original hedging relationship for this interest rate swap and reclassified the $1.2 million of deferred losses in Accumulated other comprehensive loss into earnings. The Company consequently re-designated the interest rate swap on the Previous Credit Facility. 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 to the New Credit Facility and 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 as of December 28, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||||||||||
Losses recognized in OCI on derivative (effective portion) | Losses reclassified from AOCI into income (effective portion) | Gains recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||||||||||||||
28-Dec-14 | 29-Dec-13 | 28-Dec-14 | 29-Dec-13 | 28-Dec-14 | 29-Dec-13 | ||||||||||||||||||||
Fifty-two Weeks Ended | $ | (94 | ) | $ | (123 | ) | $ | (95 | ) | $ | (80 | ) | $ | 2 | $ | 5 | |||||||||
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 December 28, 2014 and December 29, 2013 (in thousands): | |||||||||||||||||||||||||
Derivative Liability | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value at | Fair Value at | |||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | ||||||||||||||||||||||||
Accrued liabilities | $ | 347 | $ | 516 | |||||||||||||||||||||
Other non-current liabilities | — | 271 | |||||||||||||||||||||||
Total derivatives | $ | 347 | $ | 787 | |||||||||||||||||||||
The components of accumulated other comprehensive loss related to the interest rate swap being used to hedge cash flows were immaterial as of December 28, 2014 and December 29, 2013. | |||||||||||||||||||||||||
The interest rate swap was highly effective during fiscal year 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 $32 thousand of the deferred losses, pre-tax effect, included in accumulated other comprehensive loss on the accompanying consolidated balance sheets at December 28, 2014 is expected to be reclassified into earnings before the swap matures on June 30, 2015. Additionally, the Company had no obligations at December 28, 2014 to post collateral under the terms of the interest rate swap agreement. If the Company had breached any of its provisions at December 28, 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 | 12 Months Ended | |
Dec. 28, 2014 | ||
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | Fair Value Measurements | |
Fair value measurements are made under a three-tier fair value hierarchy, which prioritizes the inputs used in the measuring of fair value: | ||
Level 1: | Observable inputs that reflect unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |
Level 2: | Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. | |
Level 3: | Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | |
Assets and Liabilities Measured at Fair Value 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 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. | ||
The Company maintains a rabbi trust to fund obligations under a deferred compensation plan. See Note 17, Employee Benefit Programs. 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 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 $5.7 million and $3.8 million as of December 28, 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. | ||
Other than as disclosed in Note 3, Acquisitions of Red Robin Franchised Restaurants, as of December 28, 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 December 28, 2014 and December 29, 2013 was $138.5 million and $78.5 million. The fair value of the Company’s credit facility as of December 28, 2014 and December 29, 2013 was approximately $138.4 million and $78.4 million. There were $8.5 million of outstanding borrowings recorded for the Company’s capital leases as of December 28, 2014, which have an estimated fair value of $10.0 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. | ||
Asset Impairment | ||
The Company recorded impairment charges for three and four of its restaurants in 2014 and 2013. In addition, the Company recorded an impairment charge in fiscal year 2014 related to certain software in development. These assets are considered to be assets that are measured at fair value on a nonrecurring basis. The inputs used for the fair value measurement of the restaurants are considered Level 3. For further information refer to Note 4, Restaurant Impairment and Restaurant Closures. |
Supplemental_Disclosures_to_Co
Supplemental Disclosures to Consolidated Statements of Cash Flows | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||
Supplemental Disclosures to Consolidated Statements of Cash Flows | Supplemental Disclosures to Consolidated Statements of Cash Flows | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Cash paid during the year for: | |||||||||||||
Income taxes | $ | 12,827 | $ | 7,205 | $ | 5,871 | |||||||
Interest, net of amounts capitalized | 3,370 | 2,342 | 5,531 | ||||||||||
Non-cash investing and financing activities: | |||||||||||||
Change in construction related payables | 970 | 9,988 | 1,366 | ||||||||||
Capital lease obligations incurred for real estate and equipment purchases | — | 126 | 113 | ||||||||||
Note entered for liquor license purchase | — | 875 | — | ||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
Income (loss) before income taxes includes the following components for the fiscal years ended December 28, 2014, December 29, 2013, and December 30, 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. | $ | 42,898 | $ | 41,249 | $ | 36,857 | |||||||
Foreign | (1,039 | ) | — | — | |||||||||
$ | 41,859 | $ | 41,249 | $ | 36,857 | ||||||||
The provision (benefit) for income taxes for fiscal year ended December 28, 2014, December 29, 2013, and December 30, 2012 consist of the following (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 5,169 | $ | 4,667 | $ | 3,977 | |||||||
State | 3,895 | 2,525 | 2,703 | ||||||||||
Foreign | — | — | — | ||||||||||
Deferred: | |||||||||||||
Federal | 1,146 | 2,755 | 2,115 | ||||||||||
State | (649 | ) | (937 | ) | (269 | ) | |||||||
Foreign | (263 | ) | — | — | |||||||||
$ | 9,298 | $ | 9,010 | $ | 8,526 | ||||||||
The reconciliation between the income tax provision and the amount of income tax computed by applying the U.S. federal statutory rate to income before the provision for income taxes as shown in the accompanying consolidated statements of income for fiscal years ended December 28, 2014, December 29, 2013, and December 30, 2012 is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax provision at U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes | 5.1 | 2.5 | 4.1 | ||||||||||
FICA tip tax credits | (16.0 | ) | (14.8 | ) | (15.9 | ) | |||||||
Foreign taxes versus U.S statutory rate | (0.1 | ) | — | — | |||||||||
Other tax credits | (2.3 | ) | (2.5 | ) | — | ||||||||
Other | 0.5 | 1.6 | (0.1 | ) | |||||||||
Effective tax rate | 22.2 | % | 21.8 | % | 23.1 | % | |||||||
The increase in the Company’s effective tax rate in fiscal year 2014 is primarily attributable to an increase in state income taxes. The decrease in the Company’s effective tax rate in fiscal year 2013 from fiscal year 2012 is primarily attributable to an increase in general business credits as well as an increase in state income tax credits. | |||||||||||||
The Company’s federal and state deferred taxes at December 28, 2014 and December 29, 2013 are as follows (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets and (liabilities), net: | |||||||||||||
Accrued compensation and related costs | $ | 10,941 | $ | 8,966 | |||||||||
Advanced payments | 2,764 | 1,754 | |||||||||||
General business and other tax credits | (275 | ) | — | ||||||||||
Interest rate swap | 13 | 24 | |||||||||||
Other current deferred tax assets | 3,583 | 2,525 | |||||||||||
Other current deferred tax liabilities | — | (180 | ) | ||||||||||
Prepaid expenses | (5,426 | ) | (3,877 | ) | |||||||||
Supplies inventory | (6,923 | ) | (6,260 | ) | |||||||||
Current deferred tax asset, net | 4,677 | 2,952 | |||||||||||
Non-current deferred tax assets and (liabilities), net: | |||||||||||||
Deferred Rent | 16,900 | 15,505 | |||||||||||
Stock-based compensation | 6,461 | 6,034 | |||||||||||
General business and other tax credits | 5,551 | 7,742 | |||||||||||
Alternative minimum tax credits | 1,262 | 1,262 | |||||||||||
Accrued compensation and related costs | 2,067 | 1,241 | |||||||||||
Advanced payments | — | ||||||||||||
Other non-current deferred tax assets | 413 | 631 | |||||||||||
Other non-current deferred tax liabilities | (789 | ) | (1,056 | ) | |||||||||
Goodwill | (7,260 | ) | (8,876 | ) | |||||||||
Property and equipment | (25,369 | ) | (26,640 | ) | |||||||||
Franchise rights | 63 | 1,440 | |||||||||||
Interest rate swap | — | (10 | ) | ||||||||||
Subtotal | (701 | ) | (2,727 | ) | |||||||||
Valuation Allowance | (990 | ) | (290 | ) | |||||||||
Non-current deferred tax liability, net, included in other non-current liabilities | (1,691 | ) | (3,017 | ) | |||||||||
Net deferred tax asset (liability) | $ | 2,986 | $ | (65 | ) | ||||||||
Realization of net deferred tax assets is dependent upon profitable operations and future reversals of existing taxable temporary differences. Based on the Company’s evaluation of its deferred tax assets, as of December 28, 2014, a valuation allowance of approximately $1.0 million has been recorded against the deferred tax asset for state income tax credits in order to measure only the portion of the deferred tax assets that more likely than not will be realized. However, the amount of the deferred tax assets considered realizable could be adjusted if estimates of future taxable income during the carry forward period are increased or reduced or if there are differences in the timing or amount of future reversals of existing taxable temporary differences. | |||||||||||||
We do not provide for deferred taxes on the excess of the financial reporting basis over the tax basis in our investments in foreign subsidiaries that are essentially permanent in duration. We intend to reinvest earnings from our foreign subsidiaries, if any, in those operations for the foreseeable future. We have not, nor do we anticipate the need to, repatriate funds to the U.S. to satisfy domestic liquidity needs and, accordingly, we do not provide for U.S. federal income and foreign withholding tax on these earnings. While we do not expect to repatriate cash to the U.S., if these funds were distributed to the U.S., in the form of dividends or otherwise, we would be subject to additional US income taxes. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because such liability, if any, is dependent on circumstances existing if and when remittance occurs. | |||||||||||||
The Company has federal alternative minimum tax credits of $1.3 million available with no expiration date. The Company also has general business and other tax credits totaling $5.1 million available to offset future taxes which expire through 2033. | |||||||||||||
Pursuant to the guidance for uncertain tax positions, a taxpayer must be able to more likely than not sustain a position to recognize a tax benefit, and the measurement of the benefit is calculated as the largest amount that is more than 50 percent likely to be realized upon resolution of the benefit. The Company has analyzed filing positions in all of the federal, state, and foreign jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The only periods subject to examination for the Company’s federal and state returns are the 2010 through 2014 tax years. | |||||||||||||
The following table summarizes the Company’s unrecognized tax benefits at December 28, 2014 and December 29, 2013 (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Beginning of year | $ | 401 | $ | 335 | |||||||||
Increase due to current year tax positions | 96 | 140 | |||||||||||
Decrease due to current year tax positions | (5 | ) | — | ||||||||||
Settlements | (122 | ) | (19 | ) | |||||||||
Reductions related to lapses | (51 | ) | (55 | ) | |||||||||
End of year | $ | 319 | $ | 401 | |||||||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is approximately $0.3 million. The Company does not anticipate significant changes in the aggregate amount of unrecognized tax benefits within the next twelve months, other than nominal tax settlements. | |||||||||||||
The Company’s policy for recording interest and penalties associated with audits is to record such items as a component of income before taxes. Penalties are recorded in Interest income and other, net, and interest paid or received is recorded in Interest expense in the consolidated statements of income. The Company recorded nominal interest expense on the identified tax liabilities in fiscal years 2014, 2013, and 2012, and no penalties were recorded in those fiscal years. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies | Commitments and Contingencies | ||||||||||||
Commitments | |||||||||||||
Leasing Activities—The Company leases land, buildings, and equipment used in its operations under operating leases. The Company’s operating leases have remaining non-cancelable terms ranging from less than one year to more than 15 years. These leases generally contain renewal options which permit the Company to renew the leases at defined contractual rates or prevailing market rates. Certain equipment leases also include options to purchase equipment at the end of the lease term. Certain leases provide for contingent rents, which are determined as a percentage of adjusted restaurant sales in excess of specified levels. The Company records a contingent rent liability and the corresponding rent expense when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. Certain lease agreements also require the Company to pay maintenance, insurance, and property tax costs. Rental expense related to land, building, and equipment leases for the fiscal year ended December 28, 2014, December 29, 2013, and December 30, 2012 are as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Minimum rent | $ | 58,083 | $ | 49,206 | $ | 47,287 | |||||||
Contingent rent | 2,239 | 2,164 | 1,861 | ||||||||||
Equipment rent under operating leases | 895 | 990 | 788 | ||||||||||
$ | 61,217 | $ | 52,360 | $ | 49,936 | ||||||||
The Company leases certain of its owned land, buildings, and equipment to outside parties under non-cancelable operating leases. Cost of the leased land, buildings, and equipment was $4.6 million at the fiscal year ended December 28, 2014, December 29, 2013, and related accumulated depreciation was $2.8 million and $2.7 million, respectively. Rental income was immaterial for fiscal years 2014, 2013, and 2012. | |||||||||||||
Future minimum lease commitments and minimum rental income under all leases as of December 28, 2014 are as follows (in thousands): | |||||||||||||
Capital | Operating | Rental | |||||||||||
Leases | Leases | Income | |||||||||||
2015 | $ | 1,003 | $ | 65,779 | $ | 150 | |||||||
2016 | 906 | 63,710 | 38 | ||||||||||
2017 | 900 | 60,333 | |||||||||||
2018 | 900 | 55,345 | |||||||||||
2019 | 900 | 49,219 | |||||||||||
Thereafter | 6,550 | 192,306 | |||||||||||
Total | 11,159 | $ | 486,692 | $ | 188 | ||||||||
Less amount representing interest | (2,638 | ) | |||||||||||
Present value of future minimum lease payments | 8,521 | ||||||||||||
Less current portion | (583 | ) | |||||||||||
Long-term capital lease obligations | $ | 7,938 | |||||||||||
At the end of fiscal years 2014 and 2013, property and equipment included $21.7 million and $20.0 million of assets under capital lease, and $10.0 million and $8.6 million of related accumulated depreciation. | |||||||||||||
Contingencies | |||||||||||||
In the normal course of business, there are various claims in process, matters in litigation, and other contingencies. These include claims resulting from “slip and fall” accidents, 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 other suits, legal proceedings and claims with certainty, management is of the opinion that adequate provision for potential losses associated with these other matters has been made in the financial statements and that the ultimate resolution of these other matters will not have a material effect on the Company’s financial position and results of operations. |
Franchise_Operations
Franchise Operations | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Franchisors [Abstract] | ||||||||||||
Franchise Operations | Franchise Operations | |||||||||||
Results of franchise operations included in the consolidated statements of income for the fiscal year ended December 28, 2014, December 29, 2013 and December 30, 2012 consist of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Franchise royalties and fees: | ||||||||||||
Royalty income | $ | 13,540 | $ | 14,315 | $ | 14,440 | ||||||
Franchise fees | 97 | 63 | 61 | |||||||||
Total franchise royalties and fees | $ | 13,637 | $ | 14,378 | $ | 14,501 | ||||||
The Company provides management expertise, training, pre-opening assistance, and restaurant operating assistance in exchange for area development fees, franchise fees, license fees, and royalties of 3% to 4% of the franchised restaurant sales pursuant to the franchise agreements. Franchise fee revenue is recognized when all material obligations and initial services to be provided by the Company have been performed, generally upon the opening of the new restaurant. Until earned, these fees are accounted for as deferred revenue. Area development fees are dependent upon the number of restaurants in the territory as well as the Company’s obligations under the area franchise agreement. Consequently, as the Company’s obligations are met, area development fees are recognized proportionately with the opening of each new restaurant. Royalties are accrued as earned and are calculated each period based on the franchisee’s reported adjusted sales. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 28, 2014 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity |
On November 15, 2012, the Company’s board of directors authorized a repurchase of up to $50 million of the Company’s common stock. This authorization became effective on January 1, 2013, and will terminate upon completing the repurchase of $50 million of common stock unless earlier terminated by the Company’s board of directors. Purchases under the repurchase program may be made in open market or privately negotiated transactions. Purchases may be made from time to time at the Company’s discretion and the timing and amount of any share repurchases will be determined based on share price, market conditions, legal requirements and other factors. The repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or discontinued at any time. In fiscal year 2014, the Company purchased 463,780 shares with an average purchase price of $57.97 per share for a total of $26.9 million. In fiscal year 2013, the Company purchased 68,816 shares with an average purchase price of $72.71 per share for a total of $5.0 million. | |
On October 26, 2011, the Company’s board of directors authorized a repurchase of up to $50.0 million of the Company’s common stock. This authorization expired on December 31, 2012. In fiscal year 2012, the Company purchased 802,722 shares, with an average purchase price of $30.28 per share for a total of $24.3 million. |
Stock_Incentive_Plans
Stock Incentive Plans | 12 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Stock Incentive Plans | Stock Incentive Plans | |||||||||||||||
In 2007, the Company’s stockholders approved the 2007 Performance Incentive Plan which was amended and restated in 2008 and 2011 (the “2007 Stock Plan”). The 2007 Stock Plan authorizes the issuance of stock options, stock appreciation rights (SARs), restricted stock, stock variable compensation and other forms of awards granted or denominated in the Company’s common stock or units of the Company’s common stock, as well as cash variable compensation awards pursuant to the plan. Persons eligible to receive awards under the 2007 Stock Plan include officers and employees of the Company and any of the Company’s subsidiaries, directors of the Company, and certain consultants and advisors to the Company or any of its subsidiaries. The maximum number of shares of the Company’s common stock that may be issued or transferred pursuant to awards under the 2007 Stock Plan is 2,074,600 shares. Vesting of the awards under the 2007 Stock Plan is determined at the date of grant by the plan administrator. Each award granted under the 2007 Stock Plan fully vests, becomes exercisable and/or payable, as applicable, upon a change in control event. However, unless the individual award agreement provides otherwise, with respect to executive and certain other high level officers of the Company, upon the occurrence of a change in control, no award will vest unless such officers’ employment with the Company is terminated by the Company without cause during the two-year period following such change in control event. Each award expires on such date as shall be determined at the date of grant; however, the maximum term of options, SARs and other rights to acquire common stock under the plan is ten years after the initial date of the award, subject to provisions for further deferred payment in certain circumstances. The 2007 Stock Plan terminates on April 4, 2021, unless terminated earlier by the Company’s board of directors. As of December 28, 2014, options to acquire a total of 449,586 shares of the Company’s common stock remained outstanding under this plan of which 235,365 were vested. | ||||||||||||||||
The Company has four other stock-based compensation plans: the 1996 Stock Option Plan (the 1996 Stock Plan), the 2000 Management Performance Common Stock Option Plan (the 2000 Stock Plan), the 2002 Incentive Stock Option Plan (2002 Stock Plan) and the 2004 Performance Incentive Plan (the 2004 Stock Plan). No further grants can be made under these plans. In general, options granted under these plans were issued at the estimated fair market value at the date of grant. Vesting of awards under these plans were generally time based over a period of one to four years; however, in some cases, options under these plans vested based on the attainment of certain financial results. As of December 28, 2014, options to acquire a total of 12,100 of the Company’s common stock remain outstanding under these plans of which all are fully vested. Options granted under these plans expire within ten years from the date of grant. Forfeited options revert back to the 2007 Stock Plan for potential reissuance. | ||||||||||||||||
Total stock-based compensation costs recognized in fiscal years 2014, 2013, and 2012 were $4.2 million, $3.8 million, and $3.8 million, with related income tax benefits of $1.7 million, $1.5 million, and $1.5 million. As of December 28, 2014, there was $3.9 million of total unrecognized compensation cost, excluding estimated forfeitures, which is expected to be recognized over the weighted average remaining vesting period of approximately 1.2 years for stock options and 1.2 years for the restricted stock units. As of December 28, 2014, all performance-based stock units and restricted stocks were vested. | ||||||||||||||||
Stock Options | ||||||||||||||||
The tables below summarize the status of the Company’s stock option plans (in thousands, except per share data and exercise price): | ||||||||||||||||
Stock Options | ||||||||||||||||
Shares | Weighted Average Exercise Price | |||||||||||||||
Outstanding, December 29, 2013 | 491 | $ | 31.78 | |||||||||||||
Granted | 76 | 71.02 | ||||||||||||||
Forfeited/expired | (14 | ) | 37.06 | |||||||||||||
Exercised | (91 | ) | 27.91 | |||||||||||||
Outstanding, December 28, 2014 | 462 | $ | 38.83 | |||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||
Average | Average | Intrinsic Value | ||||||||||||||
Exercise | Remaining | |||||||||||||||
Price | Years of | |||||||||||||||
Contractual | ||||||||||||||||
Life | ||||||||||||||||
Outstanding as of December 28, 2014 | 462 | $ | 38.83 | 5.89 | $ | 17,353 | ||||||||||
Vested and expected to vest as of December 28, 2014 (1) | 427 | $ | 37.54 | 5.75 | $ | 16,586 | ||||||||||
Exercisable as of December 28, 2014 | 247 | $ | 28.93 | 4.69 | $ | 11,754 | ||||||||||
___________________________________ | ||||||||||||||||
(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options. | ||||||||||||||||
The estimated fair value of each option granted is calculated using the Black-Scholes multiple option-pricing model. The average assumptions used in the model for the fiscal year ended December 28, 2014, December 29, 2013, and December 30, 2012 were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | 1.7 | % | 0.7 | % | 0.7 | % | ||||||||||
Expected years until exercise | 5.7 | 4.2 | 4.1 | |||||||||||||
Expected stock volatility | 44.6 | % | 44.4 | % | 52.8 | % | ||||||||||
Dividend yield | — | % | — | % | — | % | ||||||||||
Weighted average Black-Scholes fair value per share at date of grant | $ | 30.7 | $ | 15.19 | $ | 14.6 | ||||||||||
Total intrinsic value of options exercised (in thousands) | $ | 3,954 | $ | 8,263 | $ | 1,477 | ||||||||||
The risk-free interest rate was based on the rate for zero coupon U.S. Government issues with a remaining term similar to the expected life. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends and team member exercise patterns. The expected stock price volatility represents an average of the Company’s historical volatility measured over a period approximating the expected life. The dividend yield assumption is based on the Company’s history and expectations of dividend payouts. | ||||||||||||||||
Restricted Stock | ||||||||||||||||
In the past, the Company has granted restricted stock to its directors, executive officers, and other key employees. The restricted shares granted to directors were generally subject to a three year vesting requirement. The restricted shares granted to executive officers and other key employees were generally subject to a four year graded vesting requirement. The fair value of the non-vested common shares is based on the grant date market value of the common shares. During the fiscal years ended December 28, 2014 and December 29, 2013, the Company did not issue restricted stock as permitted under the 2007 Stock Plan. As of December 28, 2014 and December 29, 2013, all restricted stock was vested. | ||||||||||||||||
Time-Based RSUs | ||||||||||||||||
During fiscal years 2014 and 2013, the Company issued time-based restricted stock units (RSUs) to certain employees as permitted under the 2007 Stock Plan. The Company can grant RSUs to its directors, executive officers and other key employees. The RSUs vest in equal installments over four years and upon vesting, one share of the Company’s common stock is issued for each RSU. The fair value of each RSU granted is equal to the market price of the Company’s stock at the date of grant. | ||||||||||||||||
The table below summarizes the status of the Company’s time-based RSUs under the 2007 Stock Plan (shares in thousands): | ||||||||||||||||
Restricted Stock Units | ||||||||||||||||
Shares | Weighted Average Grant-Date Fair Value (per share) | |||||||||||||||
Outstanding, December 29, 2013 | 139 | $ | 46.81 | |||||||||||||
Awarded | 38 | 69.5 | ||||||||||||||
Forfeited | (6 | ) | 45.06 | |||||||||||||
Vested | (70 | ) | 31.64 | |||||||||||||
Outstanding, December 28, 2014 | 101 | $ | 49.78 | |||||||||||||
Performance-Based RSUs | ||||||||||||||||
In March and September 2010, the Company granted performance-based restricted stock units (“PSUs”) to executives and other key employees. These PSUs were subject to company performance metrics based on Total Shareholder Return and measured the overall stock price performance of the Company relative to the stock price performance of a selected industry peer group, thus resulting in a market condition. The fair value of the PSUs was calculated using the Monte Carlo valuation method. This method utilizes multiple input variables to determine the probability of the Company achieving the market condition and the fair value of the awards. These awards had a three-year performance period and were classified as equity as each unit was convertible into one share of the Company’s common stock upon vesting. Compensation expense was recognized on a straight-line basis over the requisite service period (or to an employee’s eligible retirement date, if earlier). In fiscal year 2013, the Company awarded an additional 31 thousand PSUs based on achievement of the performance metrics during fiscal year 2010 to fiscal year 2013 performance period and these PSUs were vested immediately. | ||||||||||||||||
There were no PSUs awarded in fiscal year 2014. As of December 28, 2014 and December 29, 2013, no PSUs were outstanding. | ||||||||||||||||
Long-Term Cash Incentive Plan | ||||||||||||||||
In fiscal year 2011, the Company began a long-term cash incentive program. The long-term cash incentive plan is based on operational metrics with a three-year performance period. Compensation expense is recognized over the performance period based on the plan-to-date performance achievement. The awards cliff vest at the end of each three-year performance cycle. In fiscal years 2014, 2013, and 2012, the Company recorded approximately $0.8 million, $4.2 million, and $1.5 million compensation expenses related to this program. In fiscal year 2014, the Company paid out $2.4 million cash awards related to achievement of the performance metrics of 2011 long-term cash incentive plan. At December 28, 2014 and December 29, 2013, $4.8 million and $6.4 million long-term cash incentive plan liability were included in Accrued payroll and payroll-related liabilities in the accompanying consolidated balance sheets. |
Employee_Benefit_Programs
Employee Benefit Programs | 12 Months Ended |
Dec. 28, 2014 | |
Employee Benefits and Share-based Compensation [Abstract] | |
Employee Benefit Programs | Employee Benefit Programs |
Employee Deferred Compensation Plan—In 2003, the Company adopted a deferred compensation plan that permits key employees and other members of management not eligible to participate in the Employee Defined Contribution Plan to defer portions of their compensation. Under this plan, eligible team members may elect to defer up to 75% of their base salary and up to 100% of variable compensation and commissions each plan year. The Company pays all administrative expenses of the plan and may make matching contributions in an amount determined by the board of directors. In 2014, the board of directors authorized matching contributions equal to 25% of the first 4% of compensation that is deferred by the participant. The Company recognized an immaterial matching contribution expense in fiscal years 2014. There was no matching contribution authorized by the board of directors in fiscal year 2013 and 2012. | |
At the end of fiscal year 2012, a liability for participant contributions and investment income thereon of $3.0 million was included in Other non-current liabilities. To offset its obligation, the Company’s plan administrator purchased Company-owned whole-life insurance contracts on certain team members. The cash surrender value of these policies at the end of fiscal year 2012 of $2.9 million was included in Other assets, net on the accompanying consolidated balance sheet. | |
During fiscal year 2013, the Company liquidated these insurance policies and invested the deferred compensation plan assets through a rabbi trust. Assets in the rabbi trust are invested in certain mutual funds that cover an investment spectrum ranging from equities to money market instruments and are available to satisfy the claims of the Company’s creditors in the event of bankruptcy or insolvency. These mutual funds have published market prices and are reported at fair value. See Note 10, Fair Value Measurement. Changes in the market value of the investments held in the trust result in the recognition of a corresponding gain or loss reported in Interest income and other, net in the consolidated statements of income. A corresponding change in the liability associated with the deferred compensation plan results in an offsetting deferred compensation expense, or reduction of expense, reported in Selling, general and administrative expenses in the consolidated statements of income. The Company recognized deferred compensation expense of $0.3 million and 0.2 million in fiscal year 2014 and 2013. As of December 28, 2014 and December 29, 2013, $5.7 million and $3.8 million of deferred compensation assets is included in Other assets, net and $5.7 million and $3.8 million of deferred compensation plan liability is included in Other non-current liability in the accompanying consolidated balance sheets. | |
Employee Stock Purchase Plan—In 2002, the Company adopted an Employee Stock Purchase Plan under which eligible team members may voluntarily contribute up to 15% of their salary, subject to limitations, to purchase common stock at a price equal to 85% of the fair market value of a share of the Company’s common stock on the first day of each offering period or 85% of the fair market value of a share of the Company’s common stock on the last day of each offering period, whichever amount is less. In general, all of the Company’s officers and team members who have been employed by the Company for at least one year and who are regularly scheduled to work more than 20 hours per week are eligible to participate in this plan which operates in successive six month periods commencing on each January 1 and July 1 of each fiscal year. A total of 300,000 shares of common stock are available for issuance under this plan. The Company has issued a total of 240,570 shares under this plan, including 12,532 shares that were issued in fiscal year 2014. A total of 59,430 shares remain available for future issuance. For fiscal year 2014, in accordance with the guidance for accounting for stock compensation, the Company estimated the fair value of the stock purchase plan using the Black-Scholes multiple-option pricing model. The average assumptions used in the model included a 0.12% risk-free interest rate; 0.5 year expected life; expected volatility of 41.22%; and a 0% dividend yield. The weighted average fair value per share at grant date was $14.42. For fiscal year 2013, the average assumptions used in the model included a 0.14% risk-free interest rate; 0.5 year expected life; expected volatility of 42.3%; and a 0% dividend yield. The weighted average fair value per share at grant date was $11.51. The Company recognized $0.2 million compensation expense related to this plan in each of fiscal years 2014, 2013, and 2012. | |
Employee Defined Contribution Plan—The Company maintains a 401(k) Savings Plan (“401K Plan”) which covers eligible team members who have satisfied the service requirements and reached 21 years of age. The 401K Plan, which qualifies under Section 401(k) of the Internal Revenue Code, allows team members to defer specified percentages of their compensation on a pre-tax basis. The Company may make matching contributions in an amount determined by the board of directors. In addition, the Company may contribute each period, at its discretion, an additional amount from profits. In 2006, the board of directors authorized matching contributions equal to 25% of the first 4% of compensation that is deferred by the participant. The Company recognized matching contribution expense of $0.3 million in each of fiscal years 2014, 2013, and 2012. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 28, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
The former president and majority owner of one of the Company’s former franchisees served on the Company’s board of directors from 2009 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 $1.3 million, $1.3 million, and $1.2 million for fiscal years 2014, 2013, and 2012. |
Quarterly_Results_of_Operation
Quarterly Results of Operations (unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) | ||||||||||||||||||||
The following tables summarize the unaudited consolidated quarterly financial information for fiscal years 2014 and 2013 (in thousands, except per share data): | |||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 (1) | 2014 | |||||||||||||||||
(16 weeks) | (12 weeks) | (12 weeks) | (12 weeks) | (52 weeks) | |||||||||||||||||
Total revenues | $ | 340,484 | $ | 256,133 | $ | 267,376 | $ | 282,109 | $ | 1,146,102 | |||||||||||
Income from operations | $ | 17,042 | $ | 13,466 | $ | 9,226 | $ | 4,950 | $ | 44,684 | |||||||||||
Net income | $ | 11,944 | $ | 9,470 | $ | 7,208 | $ | 3,939 | $ | 32,561 | |||||||||||
Basic earnings per share | $ | 0.83 | $ | 0.66 | $ | 0.51 | $ | 0.28 | $ | 2.29 | |||||||||||
Diluted earnings per share | $ | 0.82 | $ | 0.65 | $ | 0.5 | $ | 0.28 | $ | 2.25 | |||||||||||
Q1 | Q2 | Q3 | Q4 (2) (12 weeks) | 2013 | |||||||||||||||||
(16 weeks) | (12 weeks) | (12 weeks) | (52 weeks) | ||||||||||||||||||
Total revenues | $ | 306,349 | $ | 238,299 | $ | 230,673 | $ | 241,926 | $ | 1,017,247 | |||||||||||
Income from operations | $ | 13,546 | $ | 15,389 | $ | 6,802 | $ | 8,077 | $ | 43,814 | |||||||||||
Net income | $ | 9,480 | $ | 11,139 | $ | 4,661 | $ | 6,959 | $ | 32,239 | |||||||||||
Basic earnings per share | $ | 0.67 | $ | 0.78 | $ | 0.33 | $ | 0.49 | $ | 2.27 | |||||||||||
Diluted earnings per share | $ | 0.66 | $ | 0.77 | $ | 0.32 | $ | 0.48 | $ | 2.22 | |||||||||||
___________________________________ | |||||||||||||||||||||
-1 | During the fourth quarter of fiscal year 2014, it was determined that three Company-owned restaurants and certain software in development related to the supply chain and human resource management modules of Company’s ERP system were impaired. The Company recognized a pre-tax non-cash impairment charge of $8.8 million for these restaurants and software. | ||||||||||||||||||||
-2 | During the fourth quarter of fiscal year 2013, it was determined that four Company-owned restaurants were impaired. The Company recognized a pre-tax non-cash impairment charge of $1.5 million for these restaurants. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 28, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On February 11, 2015, the Company’s board of directors re-authorized the share repurchase program, which had approximately $18.1 million remaining under the current board authorization for future stock repurchases. The board has approved the repurchase of up to a total of $50 million of the Company’s common stock. The share repurchase authorization is effective February 11, 2015, and will terminate upon completing repurchases of $50 million of common stock unless otherwise terminated by the board. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Principles of Consolidation and Fiscal Year | Principles of Consolidation and Fiscal Year—The consolidated financial statements of the Company include the accounts of Red Robin and its wholly owned subsidiaries after elimination of all intercompany accounts and transactions. The Company’s fiscal year is 52 or 53 weeks ending the last Sunday of the calendar year. Fiscal year 2014 included 52 weeks ending December 28, 2014, fiscal year 2013 included 52 weeks ending December 29, 2013 and fiscal year 2012 included 53 weeks ending December 30, 2012. Fiscal year 2015 will include 52 weeks and will end on December 27, 2015. | ||||||||||||
Use of Estimates | Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 periods. The areas that require management’s most significant estimates are impairment of long lived assets, allocation of purchase price for business combinations, goodwill, lease accounting, insurance/self-insurance reserves, estimating fair value, income taxes, unearned revenue, and stock-based compensation expense. Actual results could differ from those estimates. | ||||||||||||
Cash Equivalents | Cash Equivalents—The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. Amounts receivable from credit card issuers are typically converted to cash within 2 to 4 days of the original sales transaction and are considered to be cash equivalents. | ||||||||||||
Cash and cash equivalents are maintained with multiple financial institutions. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company holds cash and cash equivalents at financial institutions in excess of amounts covered by the Federal Depository Insurance Corporation (the “FDIC”) and sometimes invests excess cash in money market funds not insured by the FDIC. | |||||||||||||
Accounts Receivable | Accounts Receivable—Accounts receivable consists primarily of trade receivables due from franchisees for royalties, as well as third-party gift card receivables. At the end of fiscal years 2014, there was approximately $12.7 million of gift cards in transit in accounts receivable related to gift cards that were sold by third-party retailers, but for which cash settlement occurs anywhere from 15 to 45 days from sale, compared to $10.7 million at the end of fiscal year 2013. At the end of fiscal years 2014, there was approximately $3.2 million related to tenant improvement allowances in accounts receivable compared to $5.2 million at the end of fiscal year 2013. | ||||||||||||
Inventories | Inventories—Inventories consist of food, beverages, and supplies valued at the lower of cost (first-in, first-out method) or market. At the end of fiscal years 2014 and 2013, food and beverage inventories were $8.5 million and $6.8 million and supplies inventories were $17.4 million and $15.2 million. | ||||||||||||
Property and Equipment | Property and Equipment—Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are expensed as incurred. Depreciation is computed on the straight-line method, based on the shorter of the estimated useful lives or the terms of the underlying leases of the related assets. Interest incurred on funds used to construct Company-owned restaurants is capitalized and amortized over the estimated useful life of the related assets. Capitalized interest totaled $0.2 million in fiscal year 2014 and $0.3 million in both fiscal years 2013 and 2012. | ||||||||||||
The estimated useful lives for property and equipment are: | |||||||||||||
Buildings | 5 to 20 years | ||||||||||||
Leasehold improvements | Shorter of lease term or estimated useful life, not to exceed 20 years | ||||||||||||
Furniture, fixtures and equipment | 3 to 7 years | ||||||||||||
Restaurant property leased to others | 3 to 20 years | ||||||||||||
The Company capitalizes certain overhead related to the development and construction of its new restaurants, remodeling restaurants to the Company’s new brand standards, as well as certain information technology infrastructure upgrades. Capitalized overhead for the years ended December 28, 2014, December 29, 2013, and December 30, 2012 was $3.8 million, $3.4 million, and $2.7 million. Costs incurred for the potential development of restaurants that are subsequently terminated are expensed. No material expense has been incurred in any of the fiscal years presented. | |||||||||||||
Goodwill and Intangible Assets, net | Goodwill and Intangible Assets, net—Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired. Intangible assets are comprised primarily of leasehold interests, acquired franchise rights, and the costs of purchased liquor licenses. Leasehold interests primarily represent the fair values of acquired lease contracts having contractual rents lower than fair market rents and are amortized on a straight-line basis over the remaining initial lease term. Acquired franchise rights, which represented the acquired value of franchise contracts, are amortized over the term of the franchise agreements. The costs of obtaining non-transferable liquor licenses from local government agencies are capitalized and generally amortized over a period of up to 20 years. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets. | ||||||||||||
Goodwill, which is not subject to amortization, is evaluated for impairment annually or more frequently at the level of the Company’s single operating segment, which also represents the Company’s only reporting unit, if indicators of impairment are present. The Company performed step one of the impairment test on the last day of fiscal year, December 28, 2014. Step one of the impairment test is based upon a comparison of the carrying value of net assets, including goodwill balances, to the fair value of net assets. Fair value is measured using a combination of the market capitalization method, the income approach, and the market approach. The market capitalization method uses the Company’s stock price to derive fair value. The income approach consists of utilizing the discounted cash flow method that incorporates the Company’s estimates of future revenues and costs, discounted using a risk-adjusted discount rate. The Company’s estimates used in the income approach are consistent with the plans and estimates used to manage operations. The market approach utilizes multiples of profit measures in order to estimate the fair value of the assets. The Company evaluates all methods to ensure reasonably consistent results. Additionally, the Company evaluates the key input factors in the models used to determine whether a moderate change in any input factor or combination of factors would significantly change the results of the tests. Based on the completion of the step one test, it was determined that goodwill was not impaired as of December 28, 2014. However, an impairment charge may be triggered in the future if the value of the Company’s stock declines, sales in the Company’s restaurants decline significantly, or if there are significant adverse changes in the operating environment of the restaurant industry. The Company has followed a consistent approach to evaluating whether there are impairments of goodwill. The Company makes adjustments to assumptions to reflect management’s view of current market and economic conditions. There was no goodwill impairment recorded during fiscal years 2014, 2013, and 2012. | |||||||||||||
Liquor licenses with indefinite lives are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. We determine fair value based on prices in the open market for license in same or similar jurisdictions. No impairment charges were required to be recorded for fiscal years 2014, 2013, and 2012. | |||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets—The Company reviews its long-lived assets, including restaurant sites, leasehold improvements, information technology systems and other fixed assets, and amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If the assets are determined to be impaired, the amount of impairment recognized is the amount by which the carrying amount of the assets exceeds their fair value. Fair value is generally determined using forecasted cash flows discounted using an estimated weighted average cost of capital. Restaurant sites and other assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell. Information technology systems, such as internal-use computer software, are reviewed and tested for recoverability if the internal-use computer software is not expected to provide substantive service potential, a significant change occurs in the extent or manner in which the software is used or is expected to be used, a significant change is made or will be made to the software program, or costs of developing or modifying internal-use software significantly exceed the amount originally expected to develop or modify the software. | ||||||||||||
During fiscal years 2014 and 2013, the Company recorded impairments of certain long-lived assets. There was no impairment recorded during fiscal year 2012. See Note 4, Impairment and Restaurant Closures. | |||||||||||||
Fair Value Measurements | Fair Value Measurements—The Company measures certain financial assets and liabilities at fair value in accordance with the accounting guidance for measuring fair value. These assets and liabilities are measured at each reporting period, and certain of these are revalued as required. Refer to Note 10, Fair Value Measurements. | ||||||||||||
Other Assets, net | Other Assets, net—Other assets, net consist primarily of assets related to various deposits, the employee deferred compensation plan and unamortized debt issuance costs. Debt issuance costs are capitalized and amortized to interest expense on a straight-line basis which approximates the effective interest rate method over the term of the Company’s long term debt. Due to the Company’s refinancing of debt in July 2014, the Company capitalized an additional $0.7 million of loan origination costs. Refer to Note 8, Borrowings. Unamortized debt issuance costs at the end of fiscal years 2014 and 2013 were $1.8 million and $1.4 million. | ||||||||||||
Revenue Recognition | Revenue Recognition—Revenues consist of sales from restaurant operations, gift card breakage, franchise royalties and fees, and other miscellaneous revenue. Revenues from restaurant sales are recognized when payment is tendered at the point of sale. | ||||||||||||
The Company sells gift cards which do not have an expiration date, and it does not deduct dormancy fees from outstanding gift card balances. The Company recognizes revenue from gift cards when: (i) the gift card is redeemed by the customer; or (ii) the likelihood of the gift card being redeemed by the customer is remote (gift card breakage), and the Company determines that there is not a legal obligation to remit the unredeemed gift card balance to the relevant jurisdiction. The determination of the gift card breakage rate is based upon the Company’s specific historical redemption patterns. The Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption. For the fiscal years ended 2014, 2013, and 2012, the Company recognized $2.3 million, $2.1 million and $1.5 million in revenue related to unredeemed gift card breakage. Gift card breakage is included in other revenue in the consolidated statements of operations. Unearned gift card revenue at the end of fiscal years 2014 and 2013 was $36.9 million and $29.8 million. | |||||||||||||
The Company typically grants franchise rights to franchisees for a term of 20 years, with the right to extend the term for an additional ten years if various conditions are satisfied by the franchisee. The Company provides management expertise, training, pre-opening assistance, and restaurant operating assistance in exchange for area development fees, franchise fees, license fees, and royalties of 3% to 4% of the franchised adjusted gross restaurant sales. The Company recognizes area development fees and franchise fees as income when the Company has performed all material obligations and initial services, which generally occurs upon the opening of the new restaurant. Until earned, these fees are accounted for as an accrued liability. Area development fees are recognized proportionately with the opening of each new restaurant. Royalties are accrued as earned and are calculated each period based on the franchisee’s reported adjusted sales. | |||||||||||||
The Company accounts for its Red Robin Royalty™ loyalty program using a deferred revenue approach in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) related to loyalty programs. Red Robin Royalty™ deferred revenue primarily relates to a program in which registered members earn an award for a free entrée for every nine entrées purchased. We recognize the current sale of an entrée and defer a portion of the revenue to reflect partial pre-payment for the future entrée the member is entitled to receive. We estimate the future value of the award based on the historical average value of redemptions. We also estimate what portion of registered members are not likely to reach the ninth purchase based on historical activity and recognize the deferred revenue related to those purchases. We recognize the deferred revenue in Restaurant revenue on earned rewards when redeemed or upon expiration, which is 60 days after the award is earned. We compare the estimate of the value of future awards to historical redemptions to evaluate the reasonableness of the deferred amount. Deferred loyalty revenue, which was included in Unearned revenue in the accompanying consolidated balance sheets, was $8.1 million and $5.9 million at December 28, 2014 and December 29, 2013. | |||||||||||||
Advertising | Advertising—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 $43.5 million, $37.0 million, and $33.5 million in fiscal years 2014, 2013, and 2012, and are included in selling, general, and administrative expenses in the consolidated statements of income. | ||||||||||||
Under the Company’s franchise agreements, both the Company and the franchisees must contribute a minimum percentage of revenues to two marketing and national media advertising funds (the Marketing Funds). These Marketing Funds are used to develop and distribute Red Robin® branded marketing materials, for media purchases, and for administrative costs. The Company’s portion of costs incurred by the Marketing Funds is recorded as selling, general, and administrative expenses in the Company’s consolidated statements of income. | |||||||||||||
Rent | Rent—The Company’s leases generally contain escalating rent payments over the lease term as well as optional renewal periods. The Company accounts for its leases by recognizing rent expense on a straight-line basis over the lease term, which includes reasonably assured renewal periods. The lease term begins when the Company has the right to control the use of the property, which is typically before rent payments are due under the lease agreement. The difference between the rent expense and rent paid is recorded as deferred rent in the consolidated balance sheet. Rent expense for the period prior to the restaurant opening is expensed in pre-opening costs. Tenant incentives used to fund leasehold improvements are recorded in deferred rent and amortized as reductions of lease rent expense ratably over the lease term. | ||||||||||||
Additionally, certain of the Company’s operating lease agreements contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. The Company recognizes contingent rent expense prior to the achievement of the specified target that triggers contingent rent, provided the achievement of that target is considered probable. Refer to Note 13, Commitments and Contingencies. | |||||||||||||
Self-Insurance Programs | Self-Insurance Programs—The Company utilizes a self-insurance plan for health, general liability, and workers’ compensation coverage. Predetermined loss limits have been arranged with insurance companies to limit the Company’s per occurrence cash outlay. Accrued liabilities and accrued payroll and payroll-related liabilities include the estimated cost to settle reported claims and incurred but unreported claims. | ||||||||||||
Pre-opening Costs | Pre-opening Costs—Pre-opening costs are expensed as incurred. Pre-opening costs include rental expenses through the date of opening for each restaurant, travel expenses, wages and benefits for the training and opening teams, and food, beverage and other restaurant opening costs incurred prior to a restaurant opening for business. | ||||||||||||
Income Taxes | Income Taxes—Deferred tax liabilities are recognized for the estimated effects of all taxable temporary differences, and deferred tax assets are recognized for the estimated effects of all deductible temporary differences and net operating losses, if any, and tax credit carryforwards. Measurement of the Company’s current and deferred tax liabilities and assets is based on provisions of enacted tax laws. | ||||||||||||
Earnings Per Share | Earnings Per Share—Basic earnings per share amounts are calculated by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share amounts are calculated based upon the weighted average number of common and potentially dilutive common shares outstanding during the year. 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 holdings into common stock. During fiscal years 2014, 2013 and 2012, a total of 65,000, 2,000, and 305,000 weighted average stock options outstanding 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 impact of outstanding stock options. | ||||||||||||
The computations for basic and diluted earnings per share for fiscal year ended December 28, 2014, December 29, 2013 and December 30, 2012 are as follows (in thousands, except per share data): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income | $ | 32,561 | $ | 32,239 | $ | 28,331 | |||||||
Shares: | |||||||||||||
Basic weighted average shares outstanding | 14,237 | 14,225 | 14,411 | ||||||||||
Dilutive effect of stock options and awards | 210 | 285 | 258 | ||||||||||
Diluted weighted average shares outstanding | 14,447 | 14,510 | 14,669 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 2.29 | $ | 2.27 | $ | 1.97 | |||||||
Diluted | $ | 2.25 | $ | 2.22 | $ | 1.93 | |||||||
Comprehensive Income (Loss) | Comprehensive Income (loss)—Comprehensive income (loss) consists of the net income or loss and other gains and losses affecting stockholders’ equity that, under U.S. GAAP, are excluded from net income. Other comprehensive income (loss) as presented in the consolidated statements of stockholders’ equity for fiscal years 2014, 2013 and 2012 consisted of the unrealized loss, net of tax, on the Company’s current cash flow hedge which will expire in June 2015, and the foreign currency translation adjustment. See Note 9, Derivative and Other Comprehensive Income. | ||||||||||||
Stock-Based Compensation/Deferred Compensation (Income) Expense | Stock-Based Compensation—The Company maintains several equity incentive plans under which it may grant stock options, stock appreciation rights, restricted stock, stock variable compensation or other forms of awards granted or denominated in the Company’s common stock or units of the Company’s common stock, as well as cash variable compensation awards to employees, non-employees, directors, and consultants. The Company also maintains an employee stock purchase plan. See Note 16, Stock Incentive Plans, for additional details. | ||||||||||||
Deferred Compensation (Income) Expense —The Company has assets and liabilities related to a deferred compensation plan. In fiscal years 2013 and 2012, the Company purchased Company-owned whole-life insurance contracts on certain team members to offset the deferred compensation plan obligation. During the third quarter fiscal year 2013, the Company liquidated these insurance policies and placed the assets of the deferred compensation plan in a rabbi trust. Assets of the rabbi trust are invested in certain mutual funds that cover an investment spectrum range from equities to money market instruments. Increases in the market value of the investments held in the trust result in the recognition of deferred compensation expense reported in Selling, general and administrative expenses and recognition of investment gain reported in Interest income and other, net, in the consolidated statements of income. Decreases in the market value of the investments held in the trust result in the recognition of a reduction to deferred compensation expense and recognition of investment loss reported in Interest income and other, net, in the consolidated statements of income. We recognized deferred compensation expense and investment income of $0.3 million and $0.2 million in fiscal year 2014 and 2013. See Note 17, Employee Benefit Programs, for additional details. | |||||||||||||
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 consolidated statements of income. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Schedule of estimated useful lives for property and equipment | The estimated useful lives for property and equipment are: | ||||||||||||
Buildings | 5 to 20 years | ||||||||||||
Leasehold improvements | Shorter of lease term or estimated useful life, not to exceed 20 years | ||||||||||||
Furniture, fixtures and equipment | 3 to 7 years | ||||||||||||
Restaurant property leased to others | 3 to 20 years | ||||||||||||
Schedule of computations for basic and diluted earnings per share | The computations for basic and diluted earnings per share for fiscal year ended December 28, 2014, December 29, 2013 and December 30, 2012 are as follows (in thousands, except per share data): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income | $ | 32,561 | $ | 32,239 | $ | 28,331 | |||||||
Shares: | |||||||||||||
Basic weighted average shares outstanding | 14,237 | 14,225 | 14,411 | ||||||||||
Dilutive effect of stock options and awards | 210 | 285 | 258 | ||||||||||
Diluted weighted average shares outstanding | 14,447 | 14,510 | 14,669 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 2.29 | $ | 2.27 | $ | 1.97 | |||||||
Diluted | $ | 2.25 | $ | 2.22 | $ | 1.93 | |||||||
Acquisitions_of_Red_Robin_Fran1
Acquisitions of Red Robin Franchised Restaurants (Tables) | 12 Months Ended | |||
Dec. 28, 2014 | ||||
Business Combinations [Abstract] | ||||
Schedule of purchase price allocation | 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 | 22,953 | |||
Inventory | 2,088 | |||
Deferred Tax Assets | 2,249 | |||
Deferred Tax Liabilities | (1,161 | ) | ||
Other current and non-current assets | 737 | |||
Other current and non-current liabilities | (2,906 | ) | ||
Total purchase price | 47,511 | |||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of components of property and equipment | Property and equipment consist of the following at December 28, 2014, and December 29, 2013, (in thousands): | ||||||||
2014 | 2013 | ||||||||
Land | $ | 33,896 | $ | 33,896 | |||||
Buildings | 82,802 | 79,698 | |||||||
Leasehold improvements | 567,303 | 498,097 | |||||||
Furniture, fixtures and equipment | 265,980 | 257,524 | |||||||
Restaurant property leased to others | 4,554 | 4,554 | |||||||
Construction in progress | 9,813 | 18,178 | |||||||
964,348 | 891,947 | ||||||||
Accumulated depreciation and amortization | (468,086 | ) | (447,220 | ) | |||||
Property and equipment, net | $ | 496,262 | $ | 444,727 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of goodwill | The following table presents goodwill as of December 28, 2014, and December 29, 2013, (in thousands). | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Balance at beginning of year | $ | 62,525 | $ | 62,525 | |||||||||||||||||||||
Acquisitions | 22,953 | — | |||||||||||||||||||||||
Translation adjustment | (1,363 | ) | — | ||||||||||||||||||||||
Balance at end of year | $ | 84,115 | $ | 62,525 | |||||||||||||||||||||
Schedule of intangible assets subject to amortization | The following table presents intangible assets subject to amortization as of December 28, 2014, and December 29, 2013, (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Franchise rights | $ | 50,826 | $ | (20,583 | ) | $ | 30,243 | $ | 43,330 | $ | (17,622 | ) | $ | 25,708 | |||||||||||
Leasehold interests | 12,991 | (5,553 | ) | 7,438 | 12,476 | (4,875 | ) | 7,601 | |||||||||||||||||
Liquor licenses | 10,058 | (9,548 | ) | 510 | 9,924 | (9,278 | ) | 646 | |||||||||||||||||
$ | 73,875 | $ | (35,684 | ) | $ | 38,191 | $ | 65,730 | $ | (31,775 | ) | $ | 33,955 | ||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Liquor licenses | $ | 4,288 | $ | — | $ | 4,288 | $ | 2,845 | $ | — | $ | 2,845 | |||||||||||||
Intangible assets, net | $ | 78,163 | $ | (35,684 | ) | $ | 42,479 | $ | 68,575 | $ | (31,775 | ) | $ | 36,800 | |||||||||||
Schedule of intangible assets not subject to amortization | The following table presents intangible assets subject to amortization as of December 28, 2014, and December 29, 2013, (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Franchise rights | $ | 50,826 | $ | (20,583 | ) | $ | 30,243 | $ | 43,330 | $ | (17,622 | ) | $ | 25,708 | |||||||||||
Leasehold interests | 12,991 | (5,553 | ) | 7,438 | 12,476 | (4,875 | ) | 7,601 | |||||||||||||||||
Liquor licenses | 10,058 | (9,548 | ) | 510 | 9,924 | (9,278 | ) | 646 | |||||||||||||||||
$ | 73,875 | $ | (35,684 | ) | $ | 38,191 | $ | 65,730 | $ | (31,775 | ) | $ | 33,955 | ||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Liquor licenses | $ | 4,288 | $ | — | $ | 4,288 | $ | 2,845 | $ | — | $ | 2,845 | |||||||||||||
Intangible assets, net | $ | 78,163 | $ | (35,684 | ) | $ | 42,479 | $ | 68,575 | $ | (31,775 | ) | $ | 36,800 | |||||||||||
Schedule of estimated aggregate future amortization expense | The estimated aggregate future amortization expense as of December 28, 2014 is as follows, (in thousands): | ||||||||||||||||||||||||
2015 | $ | 4,176 | |||||||||||||||||||||||
2016 | 3,933 | ||||||||||||||||||||||||
2017 | 3,802 | ||||||||||||||||||||||||
2018 | 3,530 | ||||||||||||||||||||||||
2019 | 3,459 | ||||||||||||||||||||||||
Thereafter | 19,291 | ||||||||||||||||||||||||
$ | 38,191 | ||||||||||||||||||||||||
Accrued_Payroll_and_Payrollrel1
Accrued Payroll and Payroll-related Liabilities, and Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of accrued payroll and payroll-related liabilities | Accrued payroll and payroll-related liabilities consist of the following at December 28, 2014 and December 29, 2013 (in thousands): | ||||||||
2014 | 2013 | ||||||||
Payroll | $ | 9,195 | $ | 8,498 | |||||
Corporate and restaurant variable compensation | 15,077 | 17,893 | |||||||
Workers compensation insurance | 7,563 | 6,020 | |||||||
Accrued vacation | 5,809 | 5,256 | |||||||
Other | 9,718 | 8,252 | |||||||
$ | 47,362 | $ | 45,919 | ||||||
Schedule of accrued liabilities | Accrued liabilities and other current liabilities consist of the following at December 28, 2014 and December 29, 2013 (in thousands): | ||||||||
2014 | 2013 | ||||||||
State and city sales taxes | $ | 6,839 | $ | 5,965 | |||||
Real estate, personal property, state income and other taxes payable | 2,999 | 2,360 | |||||||
General liability insurance | 3,531 | 3,996 | |||||||
Utilities | 2,938 | 2,177 | |||||||
Other | 10,777 | 9,956 | |||||||
$ | 27,084 | $ | 24,454 | ||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||||||||
Dec. 28, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Schedule of borrowings | Borrowings as of December 28, 2014, and December 29, 2013, are summarized below (in thousands): | ||||||||||||||
2014 | 2013 | ||||||||||||||
Borrowings | Weighted | Borrowings | Weighted | ||||||||||||
Average | Average | ||||||||||||||
Interest Rate | Interest Rate | ||||||||||||||
Revolving credit facility and other long-term debt | $ | 139,375 | 1.71 | % | $ | 79,375 | 1.73 | % | |||||||
Capital lease obligations | 8,521 | 5.11 | % | 9,339 | 5.43 | % | |||||||||
Total debt and capital lease obligations | 147,896 | 88,714 | |||||||||||||
Less: Current portion | (583 | ) | (826 | ) | |||||||||||
Long-term debt and capital lease obligations | $ | 147,313 | $ | 87,888 | |||||||||||
Schedule of maturities of long-term debt and capital lease obligations | Maturities of long-term debt and capital lease obligations as of December 28, 2014 are as follows (in thousands): | ||||||||||||||
2015 | $ | 583 | |||||||||||||
2016 | 535 | ||||||||||||||
2017 | 564 | ||||||||||||||
2018 | 598 | ||||||||||||||
2019 | 139,136 | ||||||||||||||
Thereafter | 6,480 | ||||||||||||||
$ | 147,896 | ||||||||||||||
Derivative_and_Other_Comprehen1
Derivative and Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 28, 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 as of December 28, 2014 and December 29, 2013 (in thousands): | ||||||||||||||||||||||||
Losses recognized in OCI on derivative (effective portion) | Losses reclassified from AOCI into income (effective portion) | Gains recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | |||||||||||||||||||||||
28-Dec-14 | 29-Dec-13 | 28-Dec-14 | 29-Dec-13 | 28-Dec-14 | 29-Dec-13 | ||||||||||||||||||||
Fifty-two Weeks Ended | $ | (94 | ) | $ | (123 | ) | $ | (95 | ) | $ | (80 | ) | $ | 2 | $ | 5 | |||||||||
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 December 28, 2014 and December 29, 2013 (in thousands): | ||||||||||||||||||||||||
Derivative Liability | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value at | Fair Value at | |||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | ||||||||||||||||||||||||
Accrued liabilities | $ | 347 | $ | 516 | |||||||||||||||||||||
Other non-current liabilities | — | 271 | |||||||||||||||||||||||
Total derivatives | $ | 347 | $ | 787 | |||||||||||||||||||||
Supplemental_Disclosures_to_Co1
Supplemental Disclosures to Consolidated Statements of Cash Flows (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||
Supplemental disclosures to consolidated statements of cash flows | |||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Cash paid during the year for: | |||||||||||||
Income taxes | $ | 12,827 | $ | 7,205 | $ | 5,871 | |||||||
Interest, net of amounts capitalized | 3,370 | 2,342 | 5,531 | ||||||||||
Non-cash investing and financing activities: | |||||||||||||
Change in construction related payables | 970 | 9,988 | 1,366 | ||||||||||
Capital lease obligations incurred for real estate and equipment purchases | — | 126 | 113 | ||||||||||
Note entered for liquor license purchase | — | 875 | — | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of income (loss) before income tax | Income (loss) before income taxes includes the following components for the fiscal years ended December 28, 2014, December 29, 2013, and December 30, 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. | $ | 42,898 | $ | 41,249 | $ | 36,857 | |||||||
Foreign | (1,039 | ) | — | — | |||||||||
$ | 41,859 | $ | 41,249 | $ | 36,857 | ||||||||
Schedule of provision (benefit) for income taxes | The provision (benefit) for income taxes for fiscal year ended December 28, 2014, December 29, 2013, and December 30, 2012 consist of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 5,169 | $ | 4,667 | $ | 3,977 | |||||||
State | 3,895 | 2,525 | 2,703 | ||||||||||
Foreign | — | — | — | ||||||||||
Deferred: | |||||||||||||
Federal | 1,146 | 2,755 | 2,115 | ||||||||||
State | (649 | ) | (937 | ) | (269 | ) | |||||||
Foreign | (263 | ) | — | — | |||||||||
$ | 9,298 | $ | 9,010 | $ | 8,526 | ||||||||
Schedule of reconciliation of income tax provision that would result from applying the federal statutory rate to income tax provision | The reconciliation between the income tax provision and the amount of income tax computed by applying the U.S. federal statutory rate to income before the provision for income taxes as shown in the accompanying consolidated statements of income for fiscal years ended December 28, 2014, December 29, 2013, and December 30, 2012 is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax provision at U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes | 5.1 | 2.5 | 4.1 | ||||||||||
FICA tip tax credits | (16.0 | ) | (14.8 | ) | (15.9 | ) | |||||||
Foreign taxes versus U.S statutory rate | (0.1 | ) | — | — | |||||||||
Other tax credits | (2.3 | ) | (2.5 | ) | — | ||||||||
Other | 0.5 | 1.6 | (0.1 | ) | |||||||||
Effective tax rate | 22.2 | % | 21.8 | % | 23.1 | % | |||||||
Schedule of the Company's total deferred tax assets and liabilities | The Company’s federal and state deferred taxes at December 28, 2014 and December 29, 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets and (liabilities), net: | |||||||||||||
Accrued compensation and related costs | $ | 10,941 | $ | 8,966 | |||||||||
Advanced payments | 2,764 | 1,754 | |||||||||||
General business and other tax credits | (275 | ) | — | ||||||||||
Interest rate swap | 13 | 24 | |||||||||||
Other current deferred tax assets | 3,583 | 2,525 | |||||||||||
Other current deferred tax liabilities | — | (180 | ) | ||||||||||
Prepaid expenses | (5,426 | ) | (3,877 | ) | |||||||||
Supplies inventory | (6,923 | ) | (6,260 | ) | |||||||||
Current deferred tax asset, net | 4,677 | 2,952 | |||||||||||
Non-current deferred tax assets and (liabilities), net: | |||||||||||||
Deferred Rent | 16,900 | 15,505 | |||||||||||
Stock-based compensation | 6,461 | 6,034 | |||||||||||
General business and other tax credits | 5,551 | 7,742 | |||||||||||
Alternative minimum tax credits | 1,262 | 1,262 | |||||||||||
Accrued compensation and related costs | 2,067 | 1,241 | |||||||||||
Advanced payments | — | ||||||||||||
Other non-current deferred tax assets | 413 | 631 | |||||||||||
Other non-current deferred tax liabilities | (789 | ) | (1,056 | ) | |||||||||
Goodwill | (7,260 | ) | (8,876 | ) | |||||||||
Property and equipment | (25,369 | ) | (26,640 | ) | |||||||||
Franchise rights | 63 | 1,440 | |||||||||||
Interest rate swap | — | (10 | ) | ||||||||||
Subtotal | (701 | ) | (2,727 | ) | |||||||||
Valuation Allowance | (990 | ) | (290 | ) | |||||||||
Non-current deferred tax liability, net, included in other non-current liabilities | (1,691 | ) | (3,017 | ) | |||||||||
Net deferred tax asset (liability) | $ | 2,986 | $ | (65 | ) | ||||||||
Schedule of the Company's unrecognized tax benefits | The following table summarizes the Company’s unrecognized tax benefits at December 28, 2014 and December 29, 2013 (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Beginning of year | $ | 401 | $ | 335 | |||||||||
Increase due to current year tax positions | 96 | 140 | |||||||||||
Decrease due to current year tax positions | (5 | ) | — | ||||||||||
Settlements | (122 | ) | (19 | ) | |||||||||
Reductions related to lapses | (51 | ) | (55 | ) | |||||||||
End of year | $ | 319 | $ | 401 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Schedule of rental expense related to land, building, and equipment leases | Rental expense related to land, building, and equipment leases for the fiscal year ended December 28, 2014, December 29, 2013, and December 30, 2012 are as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Minimum rent | $ | 58,083 | $ | 49,206 | $ | 47,287 | |||||||
Contingent rent | 2,239 | 2,164 | 1,861 | ||||||||||
Equipment rent under operating leases | 895 | 990 | 788 | ||||||||||
$ | 61,217 | $ | 52,360 | $ | 49,936 | ||||||||
Schedule of future minimum lease commitments and minimum rental income under all leases | Future minimum lease commitments and minimum rental income under all leases as of December 28, 2014 are as follows (in thousands): | ||||||||||||
Capital | Operating | Rental | |||||||||||
Leases | Leases | Income | |||||||||||
2015 | $ | 1,003 | $ | 65,779 | $ | 150 | |||||||
2016 | 906 | 63,710 | 38 | ||||||||||
2017 | 900 | 60,333 | |||||||||||
2018 | 900 | 55,345 | |||||||||||
2019 | 900 | 49,219 | |||||||||||
Thereafter | 6,550 | 192,306 | |||||||||||
Total | 11,159 | $ | 486,692 | $ | 188 | ||||||||
Less amount representing interest | (2,638 | ) | |||||||||||
Present value of future minimum lease payments | 8,521 | ||||||||||||
Less current portion | (583 | ) | |||||||||||
Long-term capital lease obligations | $ | 7,938 | |||||||||||
Franchise_Operations_Tables
Franchise Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Franchisors [Abstract] | ||||||||||||
Schedule of results of franchise operations included in the consolidated statements of income. | Results of franchise operations included in the consolidated statements of income for the fiscal year ended December 28, 2014, December 29, 2013 and December 30, 2012 consist of the following (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Franchise royalties and fees: | ||||||||||||
Royalty income | $ | 13,540 | $ | 14,315 | $ | 14,440 | ||||||
Franchise fees | 97 | 63 | 61 | |||||||||
Total franchise royalties and fees | $ | 13,637 | $ | 14,378 | $ | 14,501 | ||||||
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||
Summary of status of the Company's stock option plans | The tables below summarize the status of the Company’s stock option plans (in thousands, except per share data and exercise price): | |||||||||||||||
Stock Options | ||||||||||||||||
Shares | Weighted Average Exercise Price | |||||||||||||||
Outstanding, December 29, 2013 | 491 | $ | 31.78 | |||||||||||||
Granted | 76 | 71.02 | ||||||||||||||
Forfeited/expired | (14 | ) | 37.06 | |||||||||||||
Exercised | (91 | ) | 27.91 | |||||||||||||
Outstanding, December 28, 2014 | 462 | $ | 38.83 | |||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||
Average | Average | Intrinsic Value | ||||||||||||||
Exercise | Remaining | |||||||||||||||
Price | Years of | |||||||||||||||
Contractual | ||||||||||||||||
Life | ||||||||||||||||
Outstanding as of December 28, 2014 | 462 | $ | 38.83 | 5.89 | $ | 17,353 | ||||||||||
Vested and expected to vest as of December 28, 2014 (1) | 427 | $ | 37.54 | 5.75 | $ | 16,586 | ||||||||||
Exercisable as of December 28, 2014 | 247 | $ | 28.93 | 4.69 | $ | 11,754 | ||||||||||
___________________________________ | ||||||||||||||||
(1) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options. | ||||||||||||||||
Schedule of average assumptions used in estimation of fair value of options | The estimated fair value of each option granted is calculated using the Black-Scholes multiple option-pricing model. The average assumptions used in the model for the fiscal year ended December 28, 2014, December 29, 2013, and December 30, 2012 were as follows: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Risk-free interest rate | 1.7 | % | 0.7 | % | 0.7 | % | ||||||||||
Expected years until exercise | 5.7 | 4.2 | 4.1 | |||||||||||||
Expected stock volatility | 44.6 | % | 44.4 | % | 52.8 | % | ||||||||||
Dividend yield | — | % | — | % | — | % | ||||||||||
Weighted average Black-Scholes fair value per share at date of grant | $ | 30.7 | $ | 15.19 | $ | 14.6 | ||||||||||
Total intrinsic value of options exercised (in thousands) | $ | 3,954 | $ | 8,263 | $ | 1,477 | ||||||||||
Summary of the status of the Company's restricted stock units | The table below summarizes the status of the Company’s time-based RSUs under the 2007 Stock Plan (shares in thousands): | |||||||||||||||
Restricted Stock Units | ||||||||||||||||
Shares | Weighted Average Grant-Date Fair Value (per share) | |||||||||||||||
Outstanding, December 29, 2013 | 139 | $ | 46.81 | |||||||||||||
Awarded | 38 | 69.5 | ||||||||||||||
Forfeited | (6 | ) | 45.06 | |||||||||||||
Vested | (70 | ) | 31.64 | |||||||||||||
Outstanding, December 28, 2014 | 101 | $ | 49.78 | |||||||||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Summary of Unaudited Consolidated Quarterly Financial Information | The following tables summarize the unaudited consolidated quarterly financial information for fiscal years 2014 and 2013 (in thousands, except per share data): | ||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 (1) | 2014 | |||||||||||||||||
(16 weeks) | (12 weeks) | (12 weeks) | (12 weeks) | (52 weeks) | |||||||||||||||||
Total revenues | $ | 340,484 | $ | 256,133 | $ | 267,376 | $ | 282,109 | $ | 1,146,102 | |||||||||||
Income from operations | $ | 17,042 | $ | 13,466 | $ | 9,226 | $ | 4,950 | $ | 44,684 | |||||||||||
Net income | $ | 11,944 | $ | 9,470 | $ | 7,208 | $ | 3,939 | $ | 32,561 | |||||||||||
Basic earnings per share | $ | 0.83 | $ | 0.66 | $ | 0.51 | $ | 0.28 | $ | 2.29 | |||||||||||
Diluted earnings per share | $ | 0.82 | $ | 0.65 | $ | 0.5 | $ | 0.28 | $ | 2.25 | |||||||||||
Q1 | Q2 | Q3 | Q4 (2) (12 weeks) | 2013 | |||||||||||||||||
(16 weeks) | (12 weeks) | (12 weeks) | (52 weeks) | ||||||||||||||||||
Total revenues | $ | 306,349 | $ | 238,299 | $ | 230,673 | $ | 241,926 | $ | 1,017,247 | |||||||||||
Income from operations | $ | 13,546 | $ | 15,389 | $ | 6,802 | $ | 8,077 | $ | 43,814 | |||||||||||
Net income | $ | 9,480 | $ | 11,139 | $ | 4,661 | $ | 6,959 | $ | 32,239 | |||||||||||
Basic earnings per share | $ | 0.67 | $ | 0.78 | $ | 0.33 | $ | 0.49 | $ | 2.27 | |||||||||||
Diluted earnings per share | $ | 0.66 | $ | 0.77 | $ | 0.32 | $ | 0.48 | $ | 2.22 | |||||||||||
___________________________________ | |||||||||||||||||||||
-1 | During the fourth quarter of fiscal year 2014, it was determined that three Company-owned restaurants and certain software in development related to the supply chain and human resource management modules of Company’s ERP system were impaired. The Company recognized a pre-tax non-cash impairment charge of $8.8 million for these restaurants and software. | ||||||||||||||||||||
-2 | During the fourth quarter of fiscal year 2013, it was determined that four Company-owned restaurants were impaired. The Company recognized a pre-tax non-cash impairment charge of $1.5 million for these restaurants. |
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 28, 2014 | |
segment | |
Description of business and summary of significant accounting policies | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Company-owned operated restaurants | |
Description of business and summary of significant accounting policies | |
Number of restaurants | 415 |
Number of states in which restaurants are located | 38 |
Franchised restaurants | |
Description of business and summary of significant accounting policies | |
Number of restaurants | 99 |
Number of states in which restaurants are located | 15 |
Number of Canadian provinces in which restaurants are located | 2 |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 28, 2014 | Oct. 05, 2014 | Jul. 13, 2014 | Dec. 29, 2013 | Oct. 06, 2013 | Jul. 14, 2013 | Apr. 20, 2014 | Apr. 21, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Description of business and summary of significant accounting policies | |||||||||||
Duration of fiscal period | 84 days | 84 days | 84 days | 84 days | 84 days | 84 days | 112 days | 112 days | 364 days | 364 days | 371 days |
Length of next fiscal year | 364 days | ||||||||||
Accounts Receivable | |||||||||||
Gift cards in transit in accounts receivable | $12.70 | $10.70 | |||||||||
Tenant improvement allowances | 3.2 | 5.2 | 3.2 | 5.2 | |||||||
Inventories | |||||||||||
Food and beverage inventories | 8.5 | 6.8 | 8.5 | 6.8 | |||||||
Supplies inventories | $17.40 | $15.20 | $17.40 | $15.20 | |||||||
Minimum | |||||||||||
Description of business and summary of significant accounting policies | |||||||||||
Duration of fiscal period | 364 days | ||||||||||
Cash Equivalents | |||||||||||
Period for conversion of amounts receivable from credit card issuers into cash | 2 days | ||||||||||
Accounts Receivable | |||||||||||
Period for cash settlement of gift cards sold | 15 days | ||||||||||
Maximum | |||||||||||
Description of business and summary of significant accounting policies | |||||||||||
Duration of fiscal period | 371 days | ||||||||||
Cash Equivalents | |||||||||||
Period for conversion of amounts receivable from credit card issuers into cash | 4 days | ||||||||||
Accounts Receivable | |||||||||||
Period for cash settlement of gift cards sold | 45 days |
Description_of_Business_and_Su5
Description of Business and Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Property and equipment | |||
Capitalized interest | $0.20 | $0.30 | $0.30 |
Capitalized overhead | $3.80 | $3.40 | $2.70 |
Buildings | Minimum | |||
Property and equipment | |||
Estimated useful lives | 5 years | ||
Buildings | Maximum | |||
Property and equipment | |||
Estimated useful lives | 20 years | ||
Leasehold improvements | Maximum | |||
Property and equipment | |||
Estimated useful lives | 20 years | ||
Furniture, fixtures and equipment | Minimum | |||
Property and equipment | |||
Estimated useful lives | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property and equipment | |||
Estimated useful lives | 7 years | ||
Restaurant property leased to others | Minimum | |||
Property and equipment | |||
Estimated useful lives | 3 years | ||
Restaurant property leased to others | Maximum | |||
Property and equipment | |||
Estimated useful lives | 20 years |
Description_of_Business_and_Su6
Description of Business and Summary of Significant Accounting Policies (Details 4) (USD $) | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 30, 2012 | Dec. 28, 2014 | Dec. 29, 2013 |
Other Assets, net | |||
Write-off of certain unamortized loan origination costs associated with the previous credit facility | $0.70 | ||
Debt issuance costs | 1.8 | $1.40 | |
Liquor licenses | Maximum | |||
Goodwill and intangible assets, net | |||
Amortization period of non-transferable liquor licenses | 20 years |
Description_of_Business_and_Su7
Description of Business and Summary of Significant Accounting Policies (Details 5) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Oct. 05, 2014 | Jul. 13, 2014 | Dec. 29, 2013 | Oct. 06, 2013 | Jul. 14, 2013 | Apr. 20, 2014 | Apr. 21, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
fund | ||||||||||||
entree | ||||||||||||
Revenue Recognition | ||||||||||||
Revenue related to unredeemed gift card breakage | $2,284,000 | $2,106,000 | $1,486,000 | |||||||||
Unearned gift card revenue | 36,900,000 | 29,800,000 | 36,900,000 | 29,800,000 | ||||||||
Term of franchise rights | 20 years | |||||||||||
Additional term of franchise rights | 10 years | |||||||||||
Number of entrees to be purchased for each free entree | 9 | |||||||||||
Maximum period over which member may redeem reward after award is earned | 60 days | |||||||||||
Unearned loyalty revenue | 8,100,000 | 5,900,000 | 8,100,000 | 5,900,000 | ||||||||
Advertising | ||||||||||||
Advertising and marketing costs | 43,500,000 | 37,000,000 | 33,500,000 | |||||||||
Number of marketing and national media advertising funds to which the entity and franchisees must contribute a minimum percentage of revenue | 2 | |||||||||||
Earnings Per Share | ||||||||||||
Weighted average stock options outstanding excluded from computation of diluted earnings per share (in shares) | 65 | 2 | 305 | |||||||||
Net income | $3,939,000 | $7,208,000 | $9,470,000 | $6,959,000 | [1] | $4,661,000 | $11,139,000 | $11,944,000 | $9,480,000 | $32,561,000 | $32,239,000 | $28,331,000 |
Basic weighted-average shares outstanding | 14,237 | 14,225 | 14,411 | |||||||||
Dilutive effect of stock options and awards (in shares) | 210 | 285 | 258 | |||||||||
Diluted weighted average shares outstanding | 14,447 | 14,510 | 14,669 | |||||||||
Earnings per share: | ||||||||||||
Basic (in dollars per share) | $0.28 | $0.51 | $0.66 | $0.49 | [1] | $0.33 | $0.78 | $0.83 | $0.67 | $2.29 | $2.27 | $1.97 |
Diluted (in dollars per share) | $0.28 | $0.50 | $0.65 | $0.48 | [1] | $0.32 | $0.77 | $0.82 | $0.66 | $2.25 | $2.22 | $1.93 |
Minimum | ||||||||||||
Revenue Recognition | ||||||||||||
Royalties as a percentage of franchised adjusted gross restaurant sales | 3.00% | |||||||||||
Maximum | ||||||||||||
Revenue Recognition | ||||||||||||
Royalties as a percentage of franchised adjusted gross restaurant sales | 4.00% | |||||||||||
[1] | During the fourth quarter of fiscal year 2013, it was determined that four Company-owned restaurants were impaired. The Company recognized a pre-tax non-cash impairment charge of $1.5 million for these restaurants. |
Description_of_Business_and_Su8
Description of Business and Summary of Significant Accounting Policies (Details 6) (Employee Deferred Compensation Plan, Deferred compensation, excluding share-based payments and retirement benefits, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Employee Deferred Compensation Plan | Deferred compensation, excluding share-based payments and retirement benefits | ||
Share-based compensation plan disclosures | ||
Deferred compensation expense | $0.30 | $0.20 |
Acquisitions_of_Red_Robin_Fran2
Acquisitions of Red Robin Franchised Restaurants (Details) (USD $) | 0 Months Ended | |
Mar. 24, 2014 | Jul. 14, 2014 | |
franchisee | ||
restaurant | ||
March 2014, acquisition of four franchise restaurants | ||
Business Acquisition [Line Items] | ||
Number of restaurants acquired from franchises | 4 | |
Number of franchisees | 1 | |
Purchase price, cash | $8,000,000 | |
July 2014, acquisition of 32 Red Robin franchise restaurants | ||
Business Acquisition [Line Items] | ||
Number of restaurants acquired from franchises | 32 | |
Purchase price, cash | 39,500,000 | |
Series of business acquisitions, 2014 | ||
Business Acquisition [Line Items] | ||
Intangible assets | 9,394,000 | |
United States | July 2014, acquisition of 32 Red Robin franchise restaurants | ||
Business Acquisition [Line Items] | ||
Number of restaurants acquired from franchises | 14 | |
Canada | July 2014, acquisition of 32 Red Robin franchise restaurants | ||
Business Acquisition [Line Items] | ||
Number of restaurants acquired from franchises | 18 | |
Franchise rights | Series of business acquisitions, 2014 | ||
Business Acquisition [Line Items] | ||
Intangible assets | 7,600,000 | |
Minimum | Franchise rights | Series of business acquisitions, 2014 | ||
Business Acquisition [Line Items] | ||
Amortization period of intangible assets | 10 years | |
Maximum | Franchise rights | Series of business acquisitions, 2014 | ||
Business Acquisition [Line Items] | ||
Amortization period of intangible assets | 14 years | |
Liquor licenses | Series of business acquisitions, 2014 | ||
Business Acquisition [Line Items] | ||
Intangible assets | $1,300,000 |
Acquisitions_of_Red_Robin_Fran3
Acquisitions of Red Robin Franchised Restaurants (Details 2) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jul. 14, 2014 |
In Thousands, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $84,115 | $62,525 | $62,525 | |
Series of business acquisitions, 2014 | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | 14,157 | |||
Intangible assets | 9,394 | |||
Goodwill | 22,953 | |||
Inventory | 2,088 | |||
Deferred Tax Assets | 2,249 | |||
Deferred Tax Liabilities | -1,161 | |||
Other current and non-current assets | 737 | |||
Other current and non-current liabilities | -2,906 | |||
Total purchase price | $47,511 |
Impairment_and_Restaurant_Clos1
Impairment and Restaurant Closures (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 28, 2014 | |
restaurant | restaurant | restaurant | restaurant | ||
Restructuring Cost and Reserve [Line Items] | |||||
Number of restaurants impaired | 4 | 3 | 4 | 4 | |
Impairment of restaurants impaired | $1,200,000 | ||||
Pre-tax non-cash impairment charge | 1,517,000 | 8,833,000 | 1,517,000 | 0 | |
Number of restaurants closed operating below acceptable profitability levels | 3 | 1 | |||
Number of restaurants temporarily closed | 1 | ||||
Number of restaurants closed during period whose leases were not extended or capital improvements were not projected to provide acceptable returns | 2 | ||||
Software in development, related to supply Chain and human resource management system modules | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of software in development | $7,600,000 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Property and equipment | |||
Property and equipment, gross | $964,348,000 | $891,947,000 | |
Accumulated depreciation and amortization | -468,086,000 | -447,220,000 | |
Property and equipment, net | 496,262,000 | 444,727,000 | |
Depreciation and amortization expense | 60,600,000 | 54,500,000 | 50,900,000 |
Land | |||
Property and equipment | |||
Property and equipment, gross | 33,896,000 | 33,896,000 | |
Buildings | |||
Property and equipment | |||
Property and equipment, gross | 82,802,000 | 79,698,000 | |
Leasehold improvements | |||
Property and equipment | |||
Property and equipment, gross | 567,303,000 | 498,097,000 | |
Furniture, fixtures and equipment | |||
Property and equipment | |||
Property and equipment, gross | 265,980,000 | 257,524,000 | |
Restaurant property leased to others | |||
Property and equipment | |||
Property and equipment, gross | 4,554,000 | 4,554,000 | |
Construction in progress | |||
Property and equipment | |||
Property and equipment, gross | $9,813,000 | $18,178,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
restaurant | restaurant | restaurant | restaurant | |
Goodwill | ||||
Balance at beginning of year | $62,525,000 | $62,525,000 | ||
Acquisitions | 22,953,000 | 0 | ||
Translation adjustment | -1,363,000 | 0 | ||
Balance at end of year | 62,525,000 | 84,115,000 | 62,525,000 | 62,525,000 |
Foreign | -1,039,000 | 0 | 0 | |
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 65,730,000 | 73,875,000 | 65,730,000 | |
Accumulated Amortization | -31,775,000 | -35,684,000 | -31,775,000 | |
Net Carrying Amount | 33,955,000 | 38,191,000 | 33,955,000 | |
Intangible assets, Gross Carrying Amount | 68,575,000 | 78,163,000 | 68,575,000 | |
Intangible assets, Accumulated Amortization | -31,775,000 | -35,684,000 | -31,775,000 | |
Intangible assets, Net Carrying Amount | 36,800,000 | 42,479,000 | 36,800,000 | |
Number of restaurants impaired | 4 | 3 | 4 | 4 |
Aggregate amortization expense | 3,900,000 | 3,700,000 | 4,600,000 | |
Liquor licenses | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Indefinite-lived intangible assets | 2,845,000 | 4,288,000 | 2,845,000 | |
Accumulated Amortization, Indefinite-lived intangible assets | 0 | 0 | 0 | |
Net Carrying Amount, Indefinite-lived intangible assets | 2,845,000 | 4,288,000 | 2,845,000 | |
Franchise rights | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 43,330,000 | 50,826,000 | 43,330,000 | |
Accumulated Amortization | -17,622,000 | -20,583,000 | -17,622,000 | |
Net Carrying Amount | 25,708,000 | 30,243,000 | 25,708,000 | |
Leasehold interests | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 12,476,000 | 12,991,000 | 12,476,000 | |
Accumulated Amortization | -4,875,000 | -5,553,000 | -4,875,000 | |
Net Carrying Amount | 7,601,000 | 7,438,000 | 7,601,000 | |
Liquor licenses | ||||
Schedule of Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 9,924,000 | 10,058,000 | 9,924,000 | |
Accumulated Amortization | -9,278,000 | -9,548,000 | -9,278,000 | |
Net Carrying Amount | $646,000 | $510,000 | $646,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment of indefinite-lived intangible assets | $0 | $0 | $0 |
Estimated aggregate future amortization expense | |||
2015 | 4,176 | ||
2016 | 3,933 | ||
2017 | 3,802 | ||
2018 | 3,530 | ||
2019 | 3,459 | ||
Thereafter | 19,291 | ||
Net Carrying Amount | $38,191 | $33,955 |
Accrued_Payroll_and_Payrollrel2
Accrued Payroll and Payroll-related Liabilities, and Accrued Liabilities and Other Current Liabilities (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Accrued payroll and payroll-related liabilities | ||
Payroll | $9,195 | $8,498 |
Corporate and restaurant variable compensation | 15,077 | 17,893 |
Workers compensation insurance | 7,563 | 6,020 |
Accrued vacation | 5,809 | 5,256 |
Other | 9,718 | 8,252 |
Total | 47,362 | 45,919 |
Accrued liabilities | ||
State and city sales taxes | 6,839 | 5,965 |
Real estate, personal property, state income and other taxes payable | 2,999 | 2,360 |
General liability insurance | 3,531 | 3,996 |
Utilities | 2,938 | 2,177 |
Other | 10,777 | 9,956 |
Total | $27,084 | $24,454 |
Borrowings_Details
Borrowings (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||
Dec. 30, 2012 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 14, 2012 | Jul. 02, 2014 | |
Borrowings | ||||||
Debt and capital lease obligations | $147,896,000 | $88,714,000 | ||||
Less: Current portion | -583,000 | -826,000 | ||||
Long-term debt and capital lease obligations | 147,313,000 | 87,888,000 | ||||
Maturities of long-term debt and capital lease obligations | ||||||
2015 | 583,000 | |||||
2016 | 535,000 | |||||
2017 | 564,000 | |||||
2018 | 598,000 | |||||
2019 | 139,136,000 | |||||
Thereafter | 6,480,000 | |||||
Debt and capital lease obligations | 147,896,000 | 88,714,000 | ||||
Additional disclosure | ||||||
Loan origination costs | 1,800,000 | 1,400,000 | ||||
Write-off of unamortized fees | 700,000 | |||||
Charge related to the de-designation of an interest rate swap | 0 | 0 | 1,220,000 | |||
Capital lease obligations | ||||||
Borrowings | ||||||
Debt and capital lease obligations | 8,521,000 | 9,339,000 | ||||
Weighted Average Interest Rate | 5.11% | 5.43% | ||||
Maturities of long-term debt and capital lease obligations | ||||||
Debt and capital lease obligations | 8,521,000 | 9,339,000 | ||||
Previous Credit Facility | ||||||
Additional disclosure | ||||||
Additional borrowing capacity subject to lender participation | 100,000,000 | |||||
Non-cash pre-tax charge | 2,900,000 | |||||
Write-off of unamortized fees | 1,700,000 | |||||
Charge related to the de-designation of an interest rate swap | 1,200,000 | |||||
Previous Credit Facility | LIBOR | ||||||
Additional disclosure | ||||||
Variable interest rate basis | LIBOR | |||||
Previous Credit Facility | Base rate | ||||||
Additional disclosure | ||||||
Variable interest rate basis | Base rate | |||||
Previous Credit Facility | Prime rate | ||||||
Additional disclosure | ||||||
Variable interest rate basis | Prime Rate | |||||
Previous Credit Facility | Federal funds rate | ||||||
Additional disclosure | ||||||
Variable interest rate basis | Federal Funds | |||||
Previous Credit Facility | One month LIBOR rate | ||||||
Additional disclosure | ||||||
Variable interest rate basis | LIBOR for an interest Period of one month | |||||
Previous Credit Facility | Revolving credit facility | ||||||
Additional disclosure | ||||||
Maximum borrowing capacity | 225,000,000 | |||||
Amounts outstanding | 78,500,000 | |||||
Previous Credit Facility | Letter of credit | ||||||
Additional disclosure | ||||||
Maximum borrowing capacity | 25,000,000 | |||||
Amounts outstanding | 8,100,000 | |||||
Previous Credit Facility | Swingline loans | ||||||
Additional disclosure | ||||||
Maximum borrowing capacity | 15,000,000 | |||||
New Credit Facility | ||||||
Additional disclosure | ||||||
Maximum borrowing capacity | 20,000,000 | |||||
Additional borrowing capacity subject to lender participation | 100,000,000 | |||||
New Credit Facility | LIBOR | ||||||
Additional disclosure | ||||||
Variable interest rate basis | LIBOR | |||||
New Credit Facility | Base rate | ||||||
Additional disclosure | ||||||
Variable interest rate basis | Base rate | |||||
New Credit Facility | Prime rate | ||||||
Additional disclosure | ||||||
Variable interest rate basis | Prime Rate | |||||
New Credit Facility | Federal funds rate | ||||||
Additional disclosure | ||||||
Variable interest rate basis | Federal Funds | |||||
New Credit Facility | One month LIBOR rate | ||||||
Additional disclosure | ||||||
Variable interest rate basis | LIBOR for an interest Period of one month | |||||
New Credit Facility | Revolving credit facility | ||||||
Borrowings | ||||||
Debt and capital lease obligations | 139,375,000 | 79,375,000 | ||||
Weighted Average Interest Rate | 1.71% | 1.73% | ||||
Maturities of long-term debt and capital lease obligations | ||||||
Debt and capital lease obligations | 139,375,000 | 79,375,000 | ||||
Additional disclosure | ||||||
Maximum borrowing capacity | 250,000,000 | |||||
Amounts outstanding | 138,500,000 | |||||
New Credit Facility | Letter of credit | ||||||
Additional disclosure | ||||||
Maximum borrowing capacity | 25,000,000 | |||||
Amounts outstanding | 8,200,000 | |||||
New Credit Facility | Swingline loans | ||||||
Additional disclosure | ||||||
Maximum borrowing capacity | 15,000,000 | |||||
Federal Funds Rate | Previous Credit Facility | Revolving credit facility | ||||||
Additional disclosure | ||||||
Interest rate margin (as a percent) | 0.50% | |||||
Federal Funds Rate | New Credit Facility | Revolving credit facility | ||||||
Additional disclosure | ||||||
Interest rate margin (as a percent) | 0.50% | |||||
LIBOR | Previous Credit Facility | Revolving credit facility | ||||||
Additional disclosure | ||||||
Interest rate margin (as a percent) | 1.00% | |||||
LIBOR | New Credit Facility | Revolving credit facility | ||||||
Additional disclosure | ||||||
Interest rate margin (as a percent) | 1.00% | |||||
Canadian Dealer Offered Rate (CDOR) | New Credit Facility | Revolving credit facility | ||||||
Additional disclosure | ||||||
Interest rate margin (as a percent) | 1.00% | |||||
Other assets, net | New Credit Facility | ||||||
Additional disclosure | ||||||
Loan origination costs | 700,000 |
Derivative_and_Other_Comprehen2
Derivative and Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jul. 02, 2014 | Aug. 05, 2011 | Dec. 14, 2012 | |
Derivative and other comprehensive income | ||||||
Charge related to the de-designation of an interest rate swap | $0 | $0 | $1,220,000 | |||
Losses recognized in OCI on derivative (effective portion) | -94,000 | -123,000 | ||||
Losses reclassified from AOCI into income (effective portion) | -95,000 | -80,000 | ||||
Gains recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 2,000 | 5,000 | ||||
Previous Credit Facility | ||||||
Derivative and other comprehensive income | ||||||
Charge related to the de-designation of an interest rate swap | 1,200,000 | |||||
New Credit Facility | ||||||
Derivative and other comprehensive income | ||||||
Maximum borrowing capacity | 20,000,000 | |||||
Interest Rate Swap | Rabobank | ||||||
Derivative and other comprehensive income | ||||||
Number of derivative instruments held | 1 | 1 | ||||
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% | |||||
Cash Flow Hedging | Interest Rate Swap | Rabobank | ||||||
Derivative and other comprehensive income | ||||||
Notional amount of derivatives | 54,400,000 | 61,900,000 | 74,100,000 | |||
Revolving credit facility | Previous Credit Facility | ||||||
Derivative and other comprehensive income | ||||||
Maximum borrowing capacity | 225,000,000 | |||||
Revolving credit facility | New Credit Facility | ||||||
Derivative and other comprehensive income | ||||||
Maximum borrowing capacity | $250,000,000 |
Derivative_and_Other_Comprehen3
Derivative and Other Comprehensive Income (Details 2) (Interest Rate Swap, USD $) | 12 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Designated as hedging instruments | ||
Derivative and other comprehensive income | ||
Accrued liabilities | $347,000 | $516,000 |
Other non-current liabilities | 0 | 271,000 |
Total derivatives | 347,000 | 787,000 |
Cash Flow Hedging | ||
Derivative and other comprehensive income | ||
Deferred losses expected to be reclassified into earnings before June 30, 2015 | -32,000 | |
Interest rate swap termination value | $300,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details ) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
restaurant | restaurant | restaurant | restaurant | |
Asset Impairment | ||||
Number of restaurants impaired | 4 | 3 | 4 | 4 |
Carrying amount | ||||
Disclosures of Fair Value of Other Assets and Liabilities | ||||
Credit facility | 78.5 | 138.5 | 78.5 | |
Capital lease obligations | 9.3 | 8.5 | 9.3 | |
Fair value | Level 2 | ||||
Disclosures of Fair Value of Other Assets and Liabilities | ||||
Credit facility | 78.4 | 138.4 | 78.4 | |
Capital lease obligations | 10.9 | 10 | 10.9 | |
Other assets, net | Level 1 | ||||
Disclosures of Fair Value of Other Assets and Liabilities | ||||
Investments in the rabbi trust | 3.8 | 5.7 | 3.8 |
Supplemental_Disclosures_to_Co2
Supplemental Disclosures to Consolidated Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Cash paid during the year for: | |||
Income taxes | $12,827 | $7,205 | $5,871 |
Interest, net of amounts capitalized | 3,370 | 2,342 | 5,531 |
Non-cash investing and financing activities: | |||
Change in construction related payables | 970 | 9,988 | 1,366 |
Capital lease obligations incurred for real estate and equipment purchases | 0 | 126 | 113 |
Note entered for liquor license purchase | $0 | $875 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
U.S. | $42,898 | $41,249 | $36,857 |
Foreign | -1,039 | 0 | 0 |
Income before income taxes | 41,859 | 41,249 | 36,857 |
Current: | |||
Federal | 5,169 | 4,667 | 3,977 |
State | 3,895 | 2,525 | 2,703 |
Foreign | 0 | 0 | 0 |
Foreign | |||
Federal | 1,146 | 2,755 | 2,115 |
State | -649 | -937 | -269 |
Foreign | -263 | 0 | 0 |
Provision (benefit) for income taxes | $9,298 | $9,010 | $8,526 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax provision at U.S. federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes (as a percent) | 5.10% | 2.50% | 4.10% |
FICA tip tax credits (as a percent) | -16.00% | -14.80% | -15.90% |
Foreign taxes versus U.S statutory rate (as a percent) | -0.10% | 0.00% | 0.00% |
Other tax credits (as a percent) | -2.30% | -2.50% | 0.00% |
Other (as a percent) | 0.50% | 1.60% | -0.10% |
Effective tax rate (as a percent) | 22.20% | 21.80% | 23.10% |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets and (liabilities), net: | ||
Accrued compensation and related costs | $10,941 | $8,966 |
Advanced payments | 2,764 | 1,754 |
General business and other tax credits | -275 | 0 |
Interest rate swap | 13 | 24 |
Other current deferred tax assets | 3,583 | 2,525 |
Other current deferred tax liabilities | 0 | -180 |
Prepaid expenses | -5,426 | -3,877 |
Supplies inventory | -6,923 | -6,260 |
Current deferred tax asset, net | 4,677 | 2,952 |
Non-current deferred tax assets and (liabilities), net: | ||
Deferred Rent | 16,900 | 15,505 |
Stock-based compensation | 6,461 | 6,034 |
General business and other tax credits | 5,551 | 7,742 |
Alternative minimum tax credits | 1,262 | 1,262 |
Accrued compensation and related costs | 2,067 | 1,241 |
Advanced payments | 0 | |
Other non-current deferred tax assets | 413 | 631 |
Other non-current deferred tax liabilities | -789 | -1,056 |
Goodwill | -7,260 | -8,876 |
Property and equipment | -25,369 | -26,640 |
Franchise rights | 63 | 1,440 |
Interest rate swap | 0 | -10 |
Subtotal | -701 | -2,727 |
Valuation Allowance | -990 | -290 |
Non-current deferred tax liability, net, included in other non-current liabilities | -1,691 | -3,017 |
Net deferred tax asset (liability) | $2,986 | ($65) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning of year | $401 | $335 |
Increase due to current year tax positions | 96 | 140 |
Decrease due to current year tax positions | -5 | 0 |
Settlements | -122 | -19 |
Reductions related to lapses | -51 | -55 |
End of year | $319 | $401 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $990,000 | $290,000 |
Federal alternative minimum tax credit | 1,262,000 | 1,262,000 |
General business and other tax credits | 5,100,000 | |
Unrecognized tax benefits that would impact effective tax rate if recognized | $300,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Minimum length of remaining non-cancelable terms, high end of range (less than one year) | 1 year | ||
Maximum length of remaining non-cancelable terms, low end of range (more than 15 years) | 15 years | ||
Rental expense related to land, building, and equipment leases | |||
Minimum rent | $58,083,000 | $49,206,000 | $47,287,000 |
Contingent rent | 2,239,000 | 2,164,000 | 1,861,000 |
Equipment rent under operating leases | 895,000 | 990,000 | 788,000 |
Rental expense | 61,217,000 | 52,360,000 | 49,936,000 |
Leases of owned land, buildings, and equipment to outside parties under non-cancelable operating leases | |||
Cost of the leased land, building and equipment | 4,600,000 | 4,600,000 | |
Accumulated depreciation of the leased land, building and equipment | 2,800,000 | 2,700,000 | |
Capital Leases | |||
2015 | 1,003,000 | ||
2016 | 906,000 | ||
2017 | 900,000 | ||
2018 | 900,000 | ||
2019 | 900,000 | ||
Thereafter | 6,550,000 | ||
Total | 11,159,000 | ||
Less amount representing interest | -2,638,000 | ||
Present value of future minimum lease payments | 8,521,000 | ||
Less current portion | -583,000 | ||
Long-term capital lease obligations | 7,938,000 | ||
Operating Leases | |||
2015 | 65,779,000 | ||
2016 | 63,710,000 | ||
2017 | 60,333,000 | ||
2018 | 55,345,000 | ||
2019 | 49,219,000 | ||
Thereafter | 192,306,000 | ||
Total | 486,692,000 | ||
Rental Income | |||
2015 | 150,000 | ||
2016 | 38,000 | ||
2017 | |||
2018 | |||
Total | 188,000 | ||
Assets under capital lease included in property and equipment | |||
Assets under capital lease | 21,700,000 | 20,000,000 | |
Accumulated depreciation | $10,000,000 | $8,600,000 |
Franchise_Operations_Details
Franchise Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Franchise royalties and fees: | |||
Royalty income | $13,540 | $14,315 | $14,440 |
Franchise fees | 97 | 63 | 61 |
Total franchise royalties and fees | $13,637 | $14,378 | $14,501 |
Minimum | |||
Franchise royalties and fees: | |||
Royalties as a percentage of franchised adjusted gross restaurant sales | 3.00% | ||
Maximum | |||
Franchise royalties and fees: | |||
Royalties as a percentage of franchised adjusted gross restaurant sales | 4.00% |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Nov. 15, 2012 | Oct. 26, 2011 | |
Stockholders' Equity Note [Abstract] | |||||
Amount authorized for repurchase of common stock | $50,000,000 | $50,000,000 | |||
Shares repurchased | 463,780 | 68,816 | 802,722 | ||
Average purchase price (in dollars per share) | $57.97 | $72.71 | $30.28 | ||
Aggregate price of shares repurchased | $26,884,000 | $5,003,000 | $24,304,000 |
Stock_Incentive_Plans_Details
Stock Incentive Plans (Details) (USD $) | 12 Months Ended | |||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | ||
Share-based compensation plan disclosures | ||||
Shares outstanding | 462 | |||
Number of common shares issued per RSU | 1 | |||
Expiration from date of grant | 10 years | |||
Total stock-based compensation cost | $4,200,000 | $3,800,000 | $3,800,000 | |
Income tax benefits from stock-based compensation cost | 1,700,000 | 1,500,000 | 1,500,000 | |
Total unrecognized compensation cost | 3,900,000 | |||
Shares | ||||
Outstanding, end of period (in shares) | 462 | |||
Stock Options | ||||
Share-based compensation plan disclosures | ||||
Shares outstanding | 462 | 491 | ||
Weighted average remaining vesting period | 1 year 2 months 12 days | |||
Shares | ||||
Outstanding, beginning of period (in shares) | 491 | |||
Granted (in shares) | 76 | |||
Forfeited (in shares) | -14 | |||
Exercised (in shares) | -91 | |||
Outstanding, end of period (in shares) | 462 | 491 | ||
Vested and expected to vest, as of the end of the period (in shares) | 427 | [1] | ||
Exercisable as of the end of the period (in shares) | 247 | |||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | $31.78 | |||
Granted (in dollars per share) | $71.02 | |||
Forfeited (in dollars per share) | $37.06 | |||
Exercised (in dollars per share) | $27.91 | |||
Outstanding, end of period (in dollars per share) | $38.83 | $31.78 | ||
Vested and expected to vest, as of the end of the period (in dollars per share) | $37.54 | [1] | ||
Exercisable as of the end of the period (in dollars per share) | $28.93 | |||
Weighted Average Remaining Years of Contractual Life | ||||
Outstanding, end of period | 5 years 10 months 21 days | |||
Vested and expected to vest, as of the end of the period | 5 years 9 months | [1] | ||
Exercisable as of the end of the period | 4 years 8 months 9 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, end of period (in dollars) | 17,353,000 | |||
Vested and expected to vest, as of the end of the period (in dollars) | 16,586,000 | [1] | ||
Exercisable as of the end of the period (in dollars) | 11,754,000 | |||
Weighted average assumptions used in estimation of fair value of options | ||||
Risk-free interest rate (as a percent) | 1.70% | 0.70% | 0.70% | |
Expected years until exercise | 5 years 8 months 12 days | 4 years 2 months | 4 years 1 month | |
Expected stock volatility (as a percent) | 44.60% | 44.40% | 52.80% | |
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) | $30.70 | $15.19 | $14.60 | |
Total intrinsic value of options exercised (in dollars) | 3,954,000 | 8,263,000 | 1,477,000 | |
Restricted Stock | ||||
Share-based compensation plan disclosures | ||||
Weighted average remaining vesting period | 1 year 2 months 12 days | |||
2007 Stock Plan | ||||
Share-based compensation plan disclosures | ||||
Maximum number of shares of the company's common stock that may be issued or transferred | 2,074,600 | |||
Period following the change in control during which termination of an individual without cause will trigger vesting of award | 2 years | |||
Shares outstanding | 449,586 | |||
Vested (in shares) | 235,365 | |||
Shares | ||||
Outstanding, end of period (in shares) | 449,586 | |||
Additional disclosure | ||||
Number of shares outstanding | 2,074,600 | |||
2007 Stock Plan | Time Based RSUs | ||||
Share-based compensation plan disclosures | ||||
Vesting period | 4 years | |||
Shares | ||||
Outstanding, beginning of period (in shares) | 139 | |||
Awarded (in shares) | 38 | |||
Forfeited (in shares) | -6 | |||
Vested (in shares) | -70 | |||
Outstanding, end of period (in shares) | 101 | |||
Weighted Average Grant-Date Fair Value (per share) | ||||
Outstanding, beginning of period (in dollars per share) | $46.81 | |||
Granted (in dollars per share) | $69.50 | |||
Cancelled (in dollars per share) | $45.06 | |||
Vested (in dollars per share) | $31.64 | |||
Outstanding, end of period (in dollars per share) | $49.78 | |||
2007 Stock Plan | Performance-Based RSUs | Executives and other key employees | ||||
Shares | ||||
Outstanding, beginning of period (in shares) | 0 | |||
Awarded (in shares) | 0 | 31,000 | ||
Outstanding, end of period (in shares) | 0 | 0 | ||
Additional disclosure | ||||
Performance period | 3 years | |||
Number of shares of common stock per award upon conversion | 1 | |||
Other stock-based compensation plans | ||||
Share-based compensation plan disclosures | ||||
Expiration term | 10 years | |||
Shares outstanding | 12,100 | |||
Number of stock-based compensation plans | 4 | |||
Shares | ||||
Outstanding, end of period (in shares) | 12,100 | |||
Other stock-based compensation plans | Minimum | ||||
Share-based compensation plan disclosures | ||||
Vesting period | 1 year | |||
Other stock-based compensation plans | Maximum | ||||
Share-based compensation plan disclosures | ||||
Vesting period | 4 years | |||
Long-Term Cash Incentive Plan | Deferred compensation, excluding share-based payments and retirement benefits | ||||
Additional disclosure | ||||
Performance and vesting period | 3 years | |||
Compensation expense | 800,000 | 4,200,000 | 1,500,000 | |
Payments of performance stock awards | 2,400,000 | |||
Accrued payroll liabilities and payroll-related liabilities | Long-Term Cash Incentive Plan | Deferred compensation, excluding share-based payments and retirement benefits | ||||
Additional disclosure | ||||
Long-term cash incentive plan liability | $4,800,000 | $6,400,000 | ||
[1] | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumption to total outstanding options. |
Employee_Benefit_Programs_Deta
Employee Benefit Programs (Details) (USD $) | 12 Months Ended | 156 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 28, 2014 |
Employee Stock Purchase Plan | ||||
Compensation expense | $4.20 | $3.80 | $3.80 | |
Employee Defined Contribution Plan | ||||
Minimum age of employees to be eligible to participate in defined contribution plan | 21 years | |||
Percentage of matching contribution | 25.00% | |||
Percentage of maximum compensation matched by employer | 4.00% | |||
Matching contribution expense | 0.3 | 0.3 | 0.3 | |
Employee Stock Purchase Plan | ||||
Employee Stock Purchase Plan | ||||
Maximum percentage of base compensation that can be contributed by the eligible team members | 15.00% | 15.00% | ||
Estimated subscription date fair value (as a percent) | 85.00% | |||
Requisite employment period to be eligible to participate in the plan | 1 year | |||
Requisite working hours per week to be eligible to participate in the plan | 20 hours | |||
Operational period of the plan | 6 months | |||
Number of shares outstanding | 300,000 | 300,000 | ||
Number of shares issued under the plan | 12,532 | 240,570 | ||
Number of shares available for future issuance under the plan | 59,430 | 59,430 | ||
Risk-free interest rate (as a percent) | 0.12% | 0.14% | ||
Expected life | 6 months | 6 months | ||
Expected volatility (as a percent) | 41.22% | 42.30% | ||
Dividend yield (as a percent) | 0.00% | 0.00% | ||
Weighted average fair value per share at grant date (in dollars per share) | $14.42 | $11.51 | ||
Compensation expense | 0.2 | 0.2 | 0.2 | |
Deferred compensation, excluding share-based payments and retirement benefits | Employee Deferred Compensation Plan | ||||
Employee Deferred Compensation Plan | ||||
Deferred payment, participant limit per calendar year as a percentage of base salary | 75.00% | |||
Deferred payment, participant limit per calendar year as a percentage of variable compensation and commissions | 100.00% | |||
Deferred payment, maximum employer match | 25.00% | |||
Deferred payment, maximum matching contribution percentage | 4.00% | |||
Deferred compensation expense | 0.3 | 0.2 | ||
Other assets, net | Deferred compensation, excluding share-based payments and retirement benefits | Employee Deferred Compensation Plan | ||||
Employee Deferred Compensation Plan | ||||
Liability for participant contributions and investment income | 3.8 | |||
Cash surrender value of company-owned whole-life insurance contracts | 2.9 | |||
Deferred compensation assets | 5.7 | 5.7 | ||
Other non-current liability | Deferred compensation, excluding share-based payments and retirement benefits | Employee Deferred Compensation Plan | ||||
Employee Deferred Compensation Plan | ||||
Liability for participant contributions and investment income | 5.7 | 3 | 5.7 | |
Cash surrender value of company-owned whole-life insurance contracts | $3.80 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Member and former franchisee appointed as board member, USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2006 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
restaurant | restaurant | |||
Related Party Transactions | ||||
Number of restaurants acquired from member | 13 | |||
Number of privately-held entities | 3 | |||
Minimum | ||||
Related Party Transactions | ||||
Percentage of interests held in privately-held entity that hold leases for restaurants owned by the entity | 45.00% | |||
Maximum | ||||
Related Party Transactions | ||||
Percentage of interests held in privately-held entity that hold leases for restaurants owned by the entity | 100.00% | |||
Three privately-held entities | ||||
Related Party Transactions | ||||
Number of restaurants for which privately-held entities hold leases | 3 | |||
Rent and other related payments | $1.30 | $1.30 | $1.20 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (unaudited) (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Oct. 05, 2014 | Jul. 13, 2014 | Dec. 29, 2013 | Oct. 06, 2013 | Jul. 14, 2013 | Apr. 20, 2014 | Apr. 21, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
restaurant | restaurant | restaurant | restaurant | |||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Total revenues | $282,109 | $267,376 | $256,133 | $241,926 | [1] | $230,673 | $238,299 | $340,484 | $306,349 | $1,146,102 | $1,017,247 | $977,132 |
Income from operations | 4,950 | 9,226 | 13,466 | 8,077 | [1] | 6,802 | 15,389 | 17,042 | 13,546 | 44,684 | 43,814 | 45,209 |
Net income | 3,939 | 7,208 | 9,470 | 6,959 | [1] | 4,661 | 11,139 | 11,944 | 9,480 | 32,561 | 32,239 | 28,331 |
Basic earning per share (in dollars per share) | $0.28 | $0.51 | $0.66 | $0.49 | [1] | $0.33 | $0.78 | $0.83 | $0.67 | $2.29 | $2.27 | $1.97 |
Diluted earning per share (in dollars per share) | $0.28 | $0.50 | $0.65 | $0.48 | [1] | $0.32 | $0.77 | $0.82 | $0.66 | $2.25 | $2.22 | $1.93 |
Number of restaurants impaired | 4 | 3 | 4 | 4 | ||||||||
Pre-tax non-cash impairment charge | $1,517 | $8,833 | $1,517 | $0 | ||||||||
Duration of fiscal period | 84 days | 84 days | 84 days | 84 days | 84 days | 84 days | 112 days | 112 days | 364 days | 364 days | 371 days | |
[1] | During the fourth quarter of fiscal year 2013, it was determined that four Company-owned restaurants were impaired. The Company recognized a pre-tax non-cash impairment charge of $1.5 million for these restaurants. |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Details) (USD $) | Nov. 15, 2012 | Oct. 26, 2011 | Feb. 11, 2015 |
Subsequent Event [Line Items] | |||
Amount authorized for repurchase of common stock | $50,000,000 | $50,000,000 | |
Common Stock | Subsequent event | |||
Subsequent Event [Line Items] | |||
Stock repurchase program, remaining authorization amount | 18,100,000 | ||
Re-Authorization of Share Repurchase Program, February 2015 | Common Stock | Subsequent event | |||
Subsequent Event [Line Items] | |||
Amount authorized for repurchase of common stock | $50,000,000 |