Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 04, 2015 | Nov. 03, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | RED ROBIN GOURMET BURGERS INC | |
Entity Central Index Key | 1,171,759 | |
Current Fiscal Year End Date | --12-27 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 4, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 13,927,944 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 04, 2015 | Dec. 28, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 21,823 | $ 22,408 |
Accounts receivable, net | 12,875 | 23,740 |
Inventories | 26,643 | 25,947 |
Prepaid expenses and other current assets | 19,360 | 23,160 |
Deferred tax asset and other | 4,184 | 4,677 |
Total current assets | 84,885 | 99,932 |
Property and equipment, net | 580,631 | 496,262 |
Goodwill | 82,646 | 84,115 |
Intangible assets, net | 40,275 | 42,479 |
Other assets, net | 13,892 | 13,101 |
Total assets | 802,329 | 735,889 |
Current liabilities: | ||
Trade accounts payable | 22,244 | 28,522 |
Construction related payables | 33,248 | 15,652 |
Accrued payroll and payroll-related liabilities | 46,494 | 47,362 |
Unearned revenue | 30,221 | 45,049 |
Accrued liabilities and other | 31,512 | 27,084 |
Total current liabilities | 163,719 | 163,669 |
Deferred rent | 63,635 | 57,341 |
Long-term debt | 164,875 | 139,375 |
Long-term portion of capital lease obligations | 7,534 | 7,938 |
Other non-current liabilities | 9,647 | 7,795 |
Total liabilities | 409,410 | 376,118 |
Stockholders’ equity: | ||
Common stock, $0.001 par value: 45,000 shares authorized; 17,851 and 17,851 shares issued; 14,047 and 14,043 shares outstanding | 18 | 18 |
Preferred stock, $0.001 par value: 3,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Treasury stock 3,804 and 3,808 shares, at cost | (137,211) | (132,252) |
Paid-in capital | 205,255 | 200,617 |
Accumulated other comprehensive loss, net of tax | (4,468) | (1,924) |
Retained earnings | 329,325 | 293,312 |
Total stockholders’ equity | 392,919 | 359,771 |
Total liabilities and stockholders’ equity | $ 802,329 | $ 735,889 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 04, 2015 | Dec. 28, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 17,851,000 | 17,851,000 |
Common stock, shares outstanding | 14,047,000 | 14,043,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 3,804,000 | 3,808,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Oct. 05, 2014 | Oct. 04, 2015 | Oct. 05, 2014 | |
Revenues: | ||||
Restaurant revenue | $ 279,496 | $ 263,883 | $ 956,709 | $ 850,696 |
Franchise royalties, fees, and other revenues | 3,916 | 3,493 | 14,583 | 13,297 |
Total revenues | 283,412 | 267,376 | 971,292 | 863,993 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||
Cost of sales | 68,197 | 68,241 | 237,812 | 216,150 |
Labor | 92,097 | 88,918 | 309,966 | 282,410 |
Other operating | 36,144 | 34,124 | 118,084 | 105,744 |
Occupancy | 22,804 | 21,222 | 76,161 | 64,122 |
Depreciation and amortization | 18,618 | 15,209 | 58,881 | 48,216 |
Selling, general, and administrative expenses | 31,608 | 27,831 | 113,795 | 100,573 |
Pre-opening and acquisition costs | 2,239 | 2,605 | 4,563 | 7,045 |
Total costs and expenses | 271,707 | 258,150 | 919,262 | 824,260 |
Income from operations | 11,705 | 9,226 | 52,030 | 39,733 |
Other expense: | ||||
Interest expense, net and other | 1,098 | 986 | 3,062 | 2,134 |
Income before income taxes | 10,607 | 8,240 | 48,968 | 37,599 |
Provision for income taxes | 2,325 | 1,032 | 12,955 | 8,977 |
Net income | $ 8,282 | $ 7,208 | $ 36,013 | $ 28,622 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.59 | $ 0.51 | $ 2.55 | $ 2 |
Diluted (in dollars per share) | $ 0.58 | $ 0.50 | $ 2.52 | $ 1.97 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 14,138 | 14,216 | 14,115 | 14,299 |
Diluted (in shares) | 14,308 | 14,397 | 14,297 | 14,517 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Oct. 05, 2014 | Oct. 04, 2015 | Oct. 05, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,282 | $ 7,208 | $ 36,013 | $ 28,622 |
Changes in derivative instrument: | ||||
Net change in fair value of interest rate swap | 0 | (10) | (3) | (87) |
Net loss reclassified into interest expense | 0 | 21 | 36 | 72 |
Tax (expense) benefit | 0 | (4) | (13) | 6 |
Net change in derivative instrument | 0 | 7 | 20 | (9) |
Foreign currency translation adjustment | (753) | (1,146) | (2,564) | (1,146) |
Other comprehensive loss, net of tax | (753) | (1,139) | (2,544) | (1,155) |
Total comprehensive income | $ 7,529 | $ 6,069 | $ 33,469 | $ 27,467 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 04, 2015 | Oct. 05, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 36,013 | $ 28,622 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 58,881 | 48,216 |
Stock-based compensation expense | 4,043 | 3,211 |
Other, net | (4,058) | (1,998) |
Changes in operating assets and liabilities, net of business acquisitions: | ||
Accounts receivable | 12,768 | 7,958 |
Trade accounts payable and accrued liabilities | 2,967 | (1,125) |
Unearned revenue | (10,833) | (8,794) |
Other operating assets and liabilities, net | 1,570 | 6,848 |
Net cash provided by operating activities | 101,351 | 82,938 |
Cash flows from investing activities: | ||
Purchases of property, equipment, and intangible assets | (120,738) | (75,859) |
Acquisition of franchise restaurants, net of cash acquired | (2,532) | (48,664) |
Other investing activities | 191 | (1,024) |
Net cash used in investing activities | (123,079) | (125,547) |
Cash flows from financing activities: | ||
Borrowings of long-term debt | 324,500 | 172,000 |
Payments of long-term debt and capital leases | (299,457) | (104,606) |
Purchase of treasury stock | (9,849) | (25,712) |
Debt issuance costs | 0 | (690) |
Tax benefit from exercise of stock options | 1,969 | 1,920 |
Proceeds from exercise of stock options and employee stock purchase plan | 4,149 | 2,579 |
Net cash provided by financing activities | 21,312 | 45,491 |
Effect of exchange rate changes on cash | (169) | (50) |
Net change in cash and cash equivalents | (585) | 2,832 |
Cash and cash equivalents, beginning of period | 22,408 | 17,108 |
Cash and cash equivalents, end of period | 21,823 | 19,940 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 11,402 | 12,496 |
Interest paid, net of amounts capitalized | 2,949 | 2,729 |
Change in construction related payables | $ 17,596 | $ 1,594 |
Basis of Presentation and Recen
Basis of Presentation and Recent Accounting Pronouncements | 9 Months Ended |
Oct. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Recent Accounting Pronouncements | Basis of Presentation and Recent Accounting Pronouncements Red Robin Gourmet Burgers, Inc., a Delaware corporation, together with its subsidiaries (“Red Robin” or the “Company”), develops and operates casual-dining and fast-casual restaurants. As of October 4, 2015 , the Company owned and operated 428 restaurants located in 38 states, the District of Columbia, and two Canadian provinces. The Company also had 99 franchised casual-dining restaurants in 15 states as of October 4, 2015 . The Company operates its business as one operating and one reportable segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Red Robin and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. The accompanying condensed consolidated financial statements of Red Robin have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 28, 2014 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. For further information, please refer to and read these interim condensed consolidated financial statements in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2014 , filed with the SEC on February 20, 2015. The Company’s quarter that ended October 4, 2015 is referred to as third quarter 2015, or the twelve weeks ended October 4, 2015 ; the second quarter ended July 12, 2015 is referred to as second quarter 2015, or the twelve weeks ended July 12, 2015; the first quarter ended April 19, 2015 is referred to as first quarter 2015, or the sixteen weeks ended April 19, 2015; and together the first, second, and third quarters of 2015 are referred to as the forty weeks ended October 4, 2015. The Company’s quarter that ended October 5, 2014 is referred to as third quarter 2014, or the twelve weeks ended October 5, 2014 ; the second quarter ended July 13, 2014 is referred to as second quarter 2014, or the twelve weeks ended July 13, 2014; the first quarter ended April 20, 2014 is referred to as first quarter 2014, or the sixteen weeks ended April 20, 2014; and together the first, second, and third quarters of 2014 are referred to as the forty weeks ended October 5, 2014 . Change in Accounting Estimate - Gift Card Breakage During the first quarter 2015, the Company re-evaluated the estimated redemption pattern related to gift cards and aligned the recognition of gift card breakage revenue to the updated estimated redemption pattern. As a result, the Company recognized $1.4 million of additional gift card breakage revenue in the first quarter of 2015. Gift card breakage revenue is included in other revenue in the condensed consolidated statement of income. This change in accounting estimate increased net income by $0.9 million or $0.06 per diluted share for the first quarter 2015. Recently Issued Accounting Standards In September 2015, the Financial Accounting Standards Board (“FASB”) issued new guidance eliminating the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The prior period impact of the adjustment should be either presented separately on the face of the income statement or disclosed in the notes. The guidance is effective for reporting periods beginning after December 15, 2015 with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In July 2015, the FASB issued guidance on the subsequent measurement of inventory, which changes the measurement from lower of cost or market to lower of cost and net realizable value. The guidance is effective for reporting periods beginning after December 15, 2016 and permits adoption in an earlier period. We do not expect the adoption of this guidance will have a material impact to our financial statements. In April 2015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires debt issuance costs to be presented in the balance sheet as a reduction of the related debt liability, rather than an asset. The guidance is effective for reporting periods beginning after December 15, 2015 and will result in an immaterial change in presentation of these costs on our consolidated balance sheets. In April 2015, the FASB issued guidance clarifying that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for reporting periods beginning after December 15, 2015. We are currently evaluating the impact this guidance may have on our consolidated financial position and results of operations. In May 2014, the 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. In July 2015, the FASB approved a one-year deferral of the effective date of the new revenue standard. The guidance is now effective for reporting periods beginning after December 15, 2017 with early adoption permitted. We are currently evaluating the impact this guidance will have on our consolidated financial position and results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Oct. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents goodwill as of October 4, 2015 and December 28, 2014 (in thousands): Balance, December 28, 2014 $ 84,115 Acquisition and adjustment 295 Translation adjustment $ (1,764 ) Balance, October 4, 2015 $ 82,646 The Company had no goodwill impairment losses in the period presented in the table above or any prior periods. During the first three quarters of 2015, the Company acquired one restaurant from a franchisee and finalized the purchase price accounting for acquisitions made in 2014, resulting in an immaterial adjustment to goodwill. The following table presents intangible assets as of October 4, 2015 and December 28, 2014 (in thousands): October 4, 2015 December 28, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Franchise rights $ 50,877 $ (23,155 ) $ 27,722 $ 50,826 $ (20,583 ) $ 30,243 Favorable leases 12,991 (6,461 ) 6,530 12,991 (5,553 ) 7,438 Liquor licenses 10,096 (9,717 ) 379 10,058 (9,548 ) 510 $ 73,964 $ (39,333 ) $ 34,631 $ 73,875 $ (35,684 ) $ 38,191 Indefinite-lived intangible assets: Liquor licenses and other $ 5,644 $ — $ 5,644 $ 4,288 $ — $ 4,288 Intangible assets, net $ 79,608 $ (39,333 ) $ 40,275 $ 78,163 $ (35,684 ) $ 42,479 There were no impairments to intangible assets during the forty weeks ended October 4, 2015 and October 5, 2014 . The aggregate amortization expense related to intangible assets subject to amortization was $1.2 million and $3.6 million for the twelve and forty weeks ended October 4, 2015 . The estimated aggregate future amortization expense as of October 4, 2015 is as follows, (in thousands): Remainder of 2015 $ 966 2016 4,025 2017 3,915 2018 3,699 2019 3,617 Thereafter 18,409 $ 34,631 |
Stock Incentive Plans
Stock Incentive Plans | 9 Months Ended |
Oct. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans Under the Company’s Second Amended and Restated 2007 Performance Incentive Plan (the “2007 Stock Plan”), various stock options and stock awards may be granted to employees of the Company and any of the Company’s subsidiaries, directors of the Company, and certain consultants and advisors to the Company or any of its subsidiaries. Stock options are granted with an exercise price equal to the fair market value of shares of the Company’s common stock at the grant date. We account for stock-based compensation in accordance with fair value recognition provisions, calculated using the Black-Scholes option pricing model (“the pricing model”). The weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model were as follows for periods in which options were granted: Twelve Weeks Ended Forty Weeks Ended October 4, 2015 October 5, 2014 October 4, 2015 October 5, 2014 Risk-free interest rate N/A 1.4 % 1.4 % 1.7 % Expected years until exercise N/A 4.2 4.8 5.7 Expected stock volatility N/A 40.2 % 40.6 % 44.6 % Dividend yield N/A — % — % — % Weighted average Black-Scholes fair value per share at date of grant N/A $ 18.12 $ 29.71 $ 30.70 The following table presents a summary of the Company’s stock-based compensation activity for the forty weeks ended October 4, 2015 (in thousands): Stock Options Restricted Stock Units Outstanding, December 28, 2014 462 101 Granted 72 33 Forfeited/expired (43 ) (12 ) Exercised/vested (94 ) (45 ) Outstanding, October 4, 2015 397 77 We recognized expense from stock-based compensation for the twelve and forty weeks ended October 4, 2015 and October 5, 2014 as follows (in thousands): Twelve Weeks Ended Forty Weeks Ended October 4, 2015 October 5, 2014 October 4, 2015 October 5, 2014 Restaurant related $ 26 $ 16 $ 88 $ 65 Selling, general, and administrative related 1,168 1,162 3,955 3,146 Total stock-based compensation $ 1,194 $ 1,178 $ 4,043 $ 3,211 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 04, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share amounts are calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share amounts are calculated based upon the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Potentially dilutive shares are excluded from the computation in periods in which they have an anti-dilutive effect. Diluted earnings per share reflect the potential dilution that could occur if holders of options exercised their options into common stock. During the twelve and forty weeks ended October 4, 2015 , weighted average stock options outstanding of 43 thousand shares and 56 thousand shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. During the twelve and forty weeks ended October 5, 2014 , weighted average stock options outstanding of 79 thousand and 61 thousand shares were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. The Company uses the treasury stock method to calculate the effect of outstanding stock options. The computations for basic and diluted earnings per share are as follows (in thousands, except per share data): Twelve Weeks Ended Forty Weeks Ended October 4, 2015 October 5, 2014 October 4, 2015 October 5, 2014 Net income $ 8,282 $ 7,208 $ 36,013 $ 28,622 Basic weighted average shares outstanding 14,138 14,216 14,115 14,299 Dilutive effect of stock options and awards 170 181 182 218 Diluted weighted average shares outstanding 14,308 14,397 14,297 14,517 Earnings per share: Basic $ 0.59 $ 0.51 $ 2.55 $ 2.00 Diluted $ 0.58 $ 0.50 $ 2.52 $ 1.97 |
Impairment and Restaurant Closu
Impairment and Restaurant Closures | 9 Months Ended |
Oct. 04, 2015 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restaurant Closures | Impairment and Restaurant Closures During the forty weeks ended October 4, 2015 , the Company closed one restaurant at the end of its lease term. The Company closed two restaurants that operated below acceptable profitability levels during the forty weeks ended October 5, 2014 . Both restaurants closed during the forty weeks ended October 5, 2014 had been impaired in fiscal year 2013. No impairments were recorded during the forty weeks ended October 4, 2015 or October 5, 2014 . The Company evaluates restaurants that are closed and allocates goodwill based on the relative fair value of the disposed restaurants to the Company’s reporting unit. Since restaurant operations are typically valued based on cash flow from operations, the Company compares the cash flow from the closed restaurants to the cash flow from the reporting unit to determine the relative value. No goodwill was allocated to the restaurants closed during the forty weeks ended October 4, 2015 or October 5, 2014 , because those restaurants did not have positive cash flow or fair value. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Oct. 04, 2015 | |
Derivative and Other Comprehensive Income | |
Derivative Financial Instruments | Derivative Financial Instruments From time to time, the Company enters into derivative instruments for risk management purposes only, including a derivative designated as cash flow hedge under guidance for derivative instruments and hedging activities. 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 the Company accepts. The Company had one interest rate swap at December 28, 2014 with a remaining notional amount of $54.4 million . The Company entered into this variable-to-fixed interest rate swap agreement with Rabobank in August 2011 with an initial notional amount of $74.1 million to hedge its floating interest rate borrowings. The notional amount amortized over time from $74.1 million at inception to $50.6 million at its maturity on June 30, 2015. Under the terms of the interest rate swap, the quarterly cash payment or receipt was 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. Changes in fair value of the interest rate swap are recorded, net of tax, as a component of Accumulated other comprehensive loss (“AOCL”), in the accompanying condensed consolidated balance sheets. The Company reclassifies the effective gain or loss from Accumulated other comprehensive loss, net of tax, to Interest expense, net and other, on the Company’s condensed 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 losses on the interest rate swap designated as a cash flow hedge recognized in other comprehensive loss (“OCL”) and reclassifications from AOCL to earnings for the forty weeks ended October 4, 2015 and for the twelve and forty weeks ended October 5, 2014 (in thousands): Losses recognized in OCL on derivative (effective portion) Losses reclassified from AOCL into income (effective portion) October 4, 2015 October 5, 2014 October 4, 2015 October 5, 2014 Twelve Weeks Ended $ — $ (10 ) $ (13 ) $ (21 ) Forty Weeks Ended $ (3 ) $ (87 ) $ (36 ) $ (72 ) The following table summarizes the fair value and presentation of the interest rate swap in the accompanying condensed consolidated balance sheets as hedging instruments as of October 4, 2015 and December 28, 2014 (in thousands): Derivative Liability Balance Sheet Location Fair Value at October 4, 2015 Fair Value at December 28, 2014 Accrued liabilities $ — $ 347 Total derivatives $ — $ 347 The components of Accumulated other comprehensive loss related to the interest rate swap being used to hedge cash flows were immaterial as of October 4, 2015 and December 28, 2014 . The interest rate swap was highly effective during 2015 until it matured on June 30, 2015. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short term nature or maturity of the instruments. The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of October 4, 2015 and December 28, 2014 (in thousands): October 4, 2015 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 6,630 $ 6,630 $ — $ — Total assets measured at fair value $ 6,630 $ 6,630 $ — $ — Liabilities: Derivative—interest rate swap $ — $ — $ — $ — Total liabilities measured at fair value $ — $ — $ — $ — December 28, 2014 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 5,723 $ 5,723 $ — $ — Total assets measured at fair value $ 5,723 $ 5,723 $ — $ — Liabilities: Derivative—interest rate swap $ 347 $ — 347 $ — Total liabilities measured at fair value $ 347 $ — $ 347 $ — The Company had no financial assets or liabilities that were measured using level 3 inputs during the forty weeks ended October 4, 2015 , other than an immaterial amount related to the land and building associated with one restaurant acquired from a franchisee. 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 condensed 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 following table presents the carrying value and estimated fair value of Company’s credit facility and capital lease obligations as of October 4, 2015 and December 28, 2014 (in thousands): October 4, 2015 December 28, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Credit facility $ 164,000 $ 163,876 $ 138,500 $ 138,397 Capital lease obligations 8,065 9,362 8,521 10,004 Total $ 172,065 $ 173,238 $ 147,021 $ 148,401 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, there are various claims in process, matters in litigation, and other contingencies. These include employment-related claims and claims alleging illness, injury, or other food quality, health, or operational issues. To date, no claims of these types of litigation, certain of which are covered by insurance policies, have had a material effect on the Company. While it is not possible to predict the outcome of these suits, legal proceedings and claims with certainty, management is of the opinion that adequate provision for potential losses associated with these matters has been made in the financial statements and that the ultimate resolution of these matters will not have a material effect on the Company’s financial position and results of operations. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 04, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events and found there to be no events requiring recognition or disclosure through the date of issuance of this report. |
Basis of Presentation and Rec16
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Oct. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Red Robin and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. The accompanying condensed consolidated financial statements of Red Robin have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 28, 2014 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. For further information, please refer to and read these interim condensed consolidated financial statements in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2014 , filed with the SEC on February 20, 2015. The Company’s quarter that ended October 4, 2015 is referred to as third quarter 2015, or the twelve weeks ended October 4, 2015 ; the second quarter ended July 12, 2015 is referred to as second quarter 2015, or the twelve weeks ended July 12, 2015; the first quarter ended April 19, 2015 is referred to as first quarter 2015, or the sixteen weeks ended April 19, 2015; and together the first, second, and third quarters of 2015 are referred to as the forty weeks ended October 4, 2015. The Company’s quarter that ended October 5, 2014 is referred to as third quarter 2014, or the twelve weeks ended October 5, 2014 ; the second quarter ended July 13, 2014 is referred to as second quarter 2014, or the twelve weeks ended July 13, 2014; the first quarter ended April 20, 2014 is referred to as first quarter 2014, or the sixteen weeks ended April 20, 2014; and together the first, second, and third quarters of 2014 are referred to as the forty weeks ended October 5, 2014 . |
Change in Accounting Estimate - Gift Card Breakage | Change in Accounting Estimate - Gift Card Breakage During the first quarter 2015, the Company re-evaluated the estimated redemption pattern related to gift cards and aligned the recognition of gift card breakage revenue to the updated estimated redemption pattern. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In September 2015, the Financial Accounting Standards Board (“FASB”) issued new guidance eliminating the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The prior period impact of the adjustment should be either presented separately on the face of the income statement or disclosed in the notes. The guidance is effective for reporting periods beginning after December 15, 2015 with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In July 2015, the FASB issued guidance on the subsequent measurement of inventory, which changes the measurement from lower of cost or market to lower of cost and net realizable value. The guidance is effective for reporting periods beginning after December 15, 2016 and permits adoption in an earlier period. We do not expect the adoption of this guidance will have a material impact to our financial statements. In April 2015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires debt issuance costs to be presented in the balance sheet as a reduction of the related debt liability, rather than an asset. The guidance is effective for reporting periods beginning after December 15, 2015 and will result in an immaterial change in presentation of these costs on our consolidated balance sheets. In April 2015, the FASB issued guidance clarifying that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for reporting periods beginning after December 15, 2015. We are currently evaluating the impact this guidance may have on our consolidated financial position and results of operations. In May 2014, the 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. In July 2015, the FASB approved a one-year deferral of the effective date of the new revenue standard. The guidance is now effective for reporting periods beginning after December 15, 2017 with early adoption permitted. We are currently evaluating the impact this guidance will have on our consolidated financial position and results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents goodwill as of October 4, 2015 and December 28, 2014 (in thousands): Balance, December 28, 2014 $ 84,115 Acquisition and adjustment 295 Translation adjustment $ (1,764 ) Balance, October 4, 2015 $ 82,646 |
Schedule of intangible assets subject to amortization | The following table presents intangible assets as of October 4, 2015 and December 28, 2014 (in thousands): October 4, 2015 December 28, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Franchise rights $ 50,877 $ (23,155 ) $ 27,722 $ 50,826 $ (20,583 ) $ 30,243 Favorable leases 12,991 (6,461 ) 6,530 12,991 (5,553 ) 7,438 Liquor licenses 10,096 (9,717 ) 379 10,058 (9,548 ) 510 $ 73,964 $ (39,333 ) $ 34,631 $ 73,875 $ (35,684 ) $ 38,191 Indefinite-lived intangible assets: Liquor licenses and other $ 5,644 $ — $ 5,644 $ 4,288 $ — $ 4,288 Intangible assets, net $ 79,608 $ (39,333 ) $ 40,275 $ 78,163 $ (35,684 ) $ 42,479 |
Schedule of intangible assets not subject to amortization | The following table presents intangible assets as of October 4, 2015 and December 28, 2014 (in thousands): October 4, 2015 December 28, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Franchise rights $ 50,877 $ (23,155 ) $ 27,722 $ 50,826 $ (20,583 ) $ 30,243 Favorable leases 12,991 (6,461 ) 6,530 12,991 (5,553 ) 7,438 Liquor licenses 10,096 (9,717 ) 379 10,058 (9,548 ) 510 $ 73,964 $ (39,333 ) $ 34,631 $ 73,875 $ (35,684 ) $ 38,191 Indefinite-lived intangible assets: Liquor licenses and other $ 5,644 $ — $ 5,644 $ 4,288 $ — $ 4,288 Intangible assets, net $ 79,608 $ (39,333 ) $ 40,275 $ 78,163 $ (35,684 ) $ 42,479 |
Schedule of estimated aggregate future amortization expense | The estimated aggregate future amortization expense as of October 4, 2015 is as follows, (in thousands): Remainder of 2015 $ 966 2016 4,025 2017 3,915 2018 3,699 2019 3,617 Thereafter 18,409 $ 34,631 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of average assumptions used in estimation of fair value of options | The weighted-average fair value of non-qualified stock options and the related assumptions used in the pricing model were as follows for periods in which options were granted: Twelve Weeks Ended Forty Weeks Ended October 4, 2015 October 5, 2014 October 4, 2015 October 5, 2014 Risk-free interest rate N/A 1.4 % 1.4 % 1.7 % Expected years until exercise N/A 4.2 4.8 5.7 Expected stock volatility N/A 40.2 % 40.6 % 44.6 % Dividend yield N/A — % — % — % Weighted average Black-Scholes fair value per share at date of grant N/A $ 18.12 $ 29.71 $ 30.70 |
Summary of status of the Company's stock option plans | The following table presents a summary of the Company’s stock-based compensation activity for the forty weeks ended October 4, 2015 (in thousands): Stock Options Restricted Stock Units Outstanding, December 28, 2014 462 101 Granted 72 33 Forfeited/expired (43 ) (12 ) Exercised/vested (94 ) (45 ) Outstanding, October 4, 2015 397 77 |
Schedule of recognized expense from stock-based compensation | We recognized expense from stock-based compensation for the twelve and forty weeks ended October 4, 2015 and October 5, 2014 as follows (in thousands): Twelve Weeks Ended Forty Weeks Ended October 4, 2015 October 5, 2014 October 4, 2015 October 5, 2014 Restaurant related $ 26 $ 16 $ 88 $ 65 Selling, general, and administrative related 1,168 1,162 3,955 3,146 Total stock-based compensation $ 1,194 $ 1,178 $ 4,043 $ 3,211 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of computations for basic and diluted earnings per share | The computations for basic and diluted earnings per share are as follows (in thousands, except per share data): Twelve Weeks Ended Forty Weeks Ended October 4, 2015 October 5, 2014 October 4, 2015 October 5, 2014 Net income $ 8,282 $ 7,208 $ 36,013 $ 28,622 Basic weighted average shares outstanding 14,138 14,216 14,115 14,299 Dilutive effect of stock options and awards 170 181 182 218 Diluted weighted average shares outstanding 14,308 14,397 14,297 14,517 Earnings per share: Basic $ 0.59 $ 0.51 $ 2.55 $ 2.00 Diluted $ 0.58 $ 0.50 $ 2.52 $ 1.97 |
Derivative Financial Instrume20
Derivative Financial Instruments (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Derivative and Other Comprehensive Income | |
Schedule of interest rate swaps designated as a cash flow hedge | The following table presents losses on the interest rate swap designated as a cash flow hedge recognized in other comprehensive loss (“OCL”) and reclassifications from AOCL to earnings for the forty weeks ended October 4, 2015 and for the twelve and forty weeks ended October 5, 2014 (in thousands): Losses recognized in OCL on derivative (effective portion) Losses reclassified from AOCL into income (effective portion) October 4, 2015 October 5, 2014 October 4, 2015 October 5, 2014 Twelve Weeks Ended $ — $ (10 ) $ (13 ) $ (21 ) Forty Weeks Ended $ (3 ) $ (87 ) $ (36 ) $ (72 ) |
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 condensed consolidated balance sheets as hedging instruments as of October 4, 2015 and December 28, 2014 (in thousands): Derivative Liability Balance Sheet Location Fair Value at October 4, 2015 Fair Value at December 28, 2014 Accrued liabilities $ — $ 347 Total derivatives $ — $ 347 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets measured on recurring basis | The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of October 4, 2015 and December 28, 2014 (in thousands): October 4, 2015 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 6,630 $ 6,630 $ — $ — Total assets measured at fair value $ 6,630 $ 6,630 $ — $ — Liabilities: Derivative—interest rate swap $ — $ — $ — $ — Total liabilities measured at fair value $ — $ — $ — $ — December 28, 2014 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 5,723 $ 5,723 $ — $ — Total assets measured at fair value $ 5,723 $ 5,723 $ — $ — Liabilities: Derivative—interest rate swap $ 347 $ — 347 $ — Total liabilities measured at fair value $ 347 $ — $ 347 $ — |
Schedule of fair value liabilities measured on recurring basis | The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of October 4, 2015 and December 28, 2014 (in thousands): October 4, 2015 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 6,630 $ 6,630 $ — $ — Total assets measured at fair value $ 6,630 $ 6,630 $ — $ — Liabilities: Derivative—interest rate swap $ — $ — $ — $ — Total liabilities measured at fair value $ — $ — $ — $ — December 28, 2014 Level 1 Level 2 Level 3 Assets: Investments in rabbi trust $ 5,723 $ 5,723 $ — $ — Total assets measured at fair value $ 5,723 $ 5,723 $ — $ — Liabilities: Derivative—interest rate swap $ 347 $ — 347 $ — Total liabilities measured at fair value $ 347 $ — $ 347 $ — |
Summary of fair value of debt | The following table presents the carrying value and estimated fair value of Company’s credit facility and capital lease obligations as of October 4, 2015 and December 28, 2014 (in thousands): October 4, 2015 December 28, 2014 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Credit facility $ 164,000 $ 163,876 $ 138,500 $ 138,397 Capital lease obligations 8,065 9,362 8,521 10,004 Total $ 172,065 $ 173,238 $ 147,021 $ 148,401 |
Basis of Presentation and Rec22
Basis of Presentation and Recent Accounting Pronouncements (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||||
Oct. 04, 2015USD ($)stateprovincerestaurant$ / shares | Jul. 12, 2015 | Oct. 05, 2014USD ($)$ / shares | Jul. 13, 2014 | Apr. 19, 2015USD ($)$ / shares | Apr. 20, 2014 | Oct. 04, 2015USD ($)stateprovincerestaurantsegment$ / shares | Oct. 05, 2014USD ($)$ / shares | |
Franchisor Disclosure [Line Items] | ||||||||
Number of operating segments | segment | 1 | |||||||
Number of reportable segments | segment | 1 | |||||||
Length of fiscal period | 84 days | 84 days | 84 days | 84 days | 112 days | 112 days | 280 days | 280 days |
Gift card breakage revenue recognized | $ 1,400 | |||||||
Net income | $ 8,282 | $ 7,208 | $ 36,013 | $ 28,622 | ||||
Earnings per share, diluted (in dollars per share) | $ / shares | $ 0.58 | $ 0.50 | $ 2.52 | $ 1.97 | ||||
Company-owned operated restaurants | ||||||||
Franchisor Disclosure [Line Items] | ||||||||
Number of restaurants | restaurant | 428 | 428 | ||||||
Number of states in which restaurants are located | state | 38 | 38 | ||||||
Number of Canadian provinces in which restaurants are located | province | 2 | 2 | ||||||
Franchised restaurants | ||||||||
Franchisor Disclosure [Line Items] | ||||||||
Number of restaurants | restaurant | 99 | 99 | ||||||
Number of states in which restaurants are located | state | 15 | 15 | ||||||
Change in accounting estimate | ||||||||
Franchisor Disclosure [Line Items] | ||||||||
Net income | $ 900 | |||||||
Earnings per share, diluted (in dollars per share) | $ / shares | $ 0.06 |
Goodwill and Intangible Asset23
Goodwill and Intangible Assets (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015USD ($)restaurant | Oct. 04, 2015USD ($)restaurant | Oct. 05, 2014USD ($) | Dec. 28, 2014USD ($) | |
Goodwill | ||||
Balance, December 28, 2014 | $ 84,115,000 | |||
Acquisition and adjustment | 295,000 | |||
Translation adjustment | (1,764,000) | |||
Balance, October 4, 2015 | $ 82,646,000 | 82,646,000 | ||
Impairment to intangible assets | 0 | $ 0 | ||
Intangible Assets | ||||
Gross Carrying Amount | 73,964,000 | 73,964,000 | $ 73,875,000 | |
Accumulated Amortization | (39,333,000) | (39,333,000) | (35,684,000) | |
Net Carrying Amount | 34,631,000 | 34,631,000 | 38,191,000 | |
Intangible assets, Gross Carrying Amount | 79,608,000 | 79,608,000 | 78,163,000 | |
Intangible assets, Accumulated Amortization | (39,333,000) | (39,333,000) | (35,684,000) | |
Intangible assets, Net Carrying Amount | 40,275,000 | 40,275,000 | 42,479,000 | |
Aggregate amortization expense | 1,200,000 | 3,600,000 | ||
Liquor licenses and other | ||||
Intangible Assets | ||||
Gross Carrying Amount, Indefinite-lived intangible assets | 5,644,000 | 5,644,000 | 4,288,000 | |
Accumulated Amortization, Indefinite-lived intangible assets | 0 | 0 | 0 | |
Net Carrying Amount, Indefinite-lived intangible assets | 5,644,000 | 5,644,000 | 4,288,000 | |
Franchise rights | ||||
Intangible Assets | ||||
Gross Carrying Amount | 50,877,000 | 50,877,000 | 50,826,000 | |
Accumulated Amortization | (23,155,000) | (23,155,000) | (20,583,000) | |
Net Carrying Amount | 27,722,000 | 27,722,000 | 30,243,000 | |
Favorable leases | ||||
Intangible Assets | ||||
Gross Carrying Amount | 12,991,000 | 12,991,000 | 12,991,000 | |
Accumulated Amortization | (6,461,000) | (6,461,000) | (5,553,000) | |
Net Carrying Amount | 6,530,000 | 6,530,000 | 7,438,000 | |
Liquor licenses and other | ||||
Intangible Assets | ||||
Gross Carrying Amount | 10,096,000 | 10,096,000 | 10,058,000 | |
Accumulated Amortization | (9,717,000) | (9,717,000) | (9,548,000) | |
Net Carrying Amount | $ 379,000 | $ 379,000 | $ 510,000 | |
August 2015, acquisition of franchise restaurant | United States | ||||
Goodwill | ||||
Number of restaurants acquired from franchisees | restaurant | 1 | 1 |
Goodwill and Intangible Asset24
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | Oct. 04, 2015 | Dec. 28, 2014 |
Estimated aggregate future amortization expense | ||
Remainder of 2015 | $ 966 | |
2,016 | 4,025 | |
2,017 | 3,915 | |
2,018 | 3,699 | |
2,019 | 3,617 | |
Thereafter | 18,409 | |
Net Carrying Amount | $ 34,631 | $ 38,191 |
Stock Incentive Plans (Details)
Stock Incentive Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Oct. 05, 2014 | Oct. 04, 2015 | Oct. 05, 2014 | |
Stock-based compensation expense recognized | ||||
Stock-based compensation expense | $ 1,194 | $ 1,178 | $ 4,043 | $ 3,211 |
Stock Options | ||||
Weighted average assumptions used in estimation of fair value of options | ||||
Risk-free interest rate (as a percent) | 1.40% | 1.40% | 1.70% | |
Expected years until exercise | 4 years 2 months 12 days | 4 years 9 months 18 days | 5 years 8 months 12 days | |
Expected stock volatility (as a percent) | 40.20% | 40.60% | 44.60% | |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | |
Weighted average Black-Scholes fair value per share at date of grant (in dollars per share) | $ 18.12 | $ 29.71 | $ 30.70 | |
Stock Options | ||||
Outstanding, Beginning of period (in shares) | 462 | |||
Granted (in shares) | 72 | |||
Forfeited/expired (in shares) | (43) | |||
Exercised (in shares) | (94) | |||
Outstanding, End of period (in shares) | 397 | 397 | ||
Restricted Stock Units | ||||
Restricted Stock Units | ||||
Outstanding, Beginning of period (in shares) | 101 | |||
Granted (in shares) | 33 | |||
Forfeited/expired (in shares) | (12) | |||
Vested (in shares) | (45) | |||
Outstanding, End of period (in shares) | 77 | 77 | ||
Restaurant related | ||||
Stock-based compensation expense recognized | ||||
Stock-based compensation expense | $ 26 | $ 16 | $ 88 | $ 65 |
Selling, general, administrative related | ||||
Stock-based compensation expense recognized | ||||
Stock-based compensation expense | $ 1,168 | $ 1,162 | $ 3,955 | $ 3,146 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 04, 2015 | Oct. 05, 2014 | Oct. 04, 2015 | Oct. 05, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted average stock options outstanding (in shares) | 43 | 79 | 56 | 61 |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income | $ 8,282 | $ 7,208 | $ 36,013 | $ 28,622 |
Basic weighted average shares outstanding (in shares) | 14,138 | 14,216 | 14,115 | 14,299 |
Dilutive effect of stock options and awards (in shares) | 170 | 181 | 182 | 218 |
Diluted weighted average shares outstanding (in shares) | 14,308 | 14,397 | 14,297 | 14,517 |
Basic (in dollars per share) | $ 0.59 | $ 0.51 | $ 2.55 | $ 2 |
Diluted (in dollars per share) | $ 0.58 | $ 0.50 | $ 2.52 | $ 1.97 |
Impairment and Restaurant Clo27
Impairment and Restaurant Closures (Details) | 9 Months Ended | |
Oct. 04, 2015USD ($)restaurant | Oct. 05, 2014USD ($)restaurant | |
Restructuring and Related Activities [Abstract] | ||
Number of restaurants closed | 1 | 2 |
Impairment recorded | $ | $ 0 | $ 0 |
Derivative Financial Instrume28
Derivative Financial Instruments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Oct. 04, 2015USD ($) | Oct. 05, 2014USD ($) | Oct. 04, 2015USD ($) | Oct. 05, 2014USD ($) | Jun. 30, 2015USD ($) | Dec. 28, 2014USD ($)interest_rate_swap | Aug. 31, 2011USD ($) | |
Interest Rate Swap | Rabobank | |||||||
Derivative and other comprehensive income | |||||||
Number of derivative instruments held | interest_rate_swap | 1 | ||||||
Estimated notional hedge amount on expiration date which is June 30, 2015 | $ 50,600 | ||||||
Fixed rate of interest on derivative (as a percent) | 1.135% | 1.135% | |||||
Cash Flow Hedging | |||||||
Derivative and other comprehensive income | |||||||
Losses recognized in OCL on derivative (effective portion) | $ 0 | $ (10) | $ (3) | $ (87) | |||
Losses reclassified from AOCL into income (effective portion) | $ (13) | $ (21) | $ (36) | $ (72) | |||
Cash Flow Hedging | Interest Rate Swap | Rabobank | |||||||
Derivative and other comprehensive income | |||||||
Notional amount of derivatives | $ 54,400 | $ 74,100 |
Derivative Financial Instrume29
Derivative Financial Instruments (Details 1) - Designated as hedging instruments - Interest Rate Swap - USD ($) $ in Thousands | Oct. 04, 2015 | Dec. 28, 2014 |
Derivative and other comprehensive income | ||
Total derivatives | $ 0 | $ 347 |
Accrued liabilities | ||
Derivative and other comprehensive income | ||
Accrued liabilities | $ 0 | $ 347 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Oct. 04, 2015 | Dec. 28, 2014 |
Assets: | ||
Investments in rabbi trust | $ 6,630 | $ 5,723 |
Total assets measured at fair value | 6,630 | 5,723 |
Liabilities: | ||
Derivative—interest rate swap | 0 | 347 |
Total liabilities measured at fair value | 0 | 347 |
Level 1 | ||
Assets: | ||
Investments in rabbi trust | 6,630 | 5,723 |
Total assets measured at fair value | 6,630 | 5,723 |
Liabilities: | ||
Derivative—interest rate swap | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Investments in rabbi trust | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Derivative—interest rate swap | 0 | 347 |
Total liabilities measured at fair value | 0 | 347 |
Level 3 | ||
Assets: | ||
Investments in rabbi trust | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Derivative—interest rate swap | 0 | 0 |
Total liabilities measured at fair value | $ 0 | $ 0 |
Fair Value Measurements (Deta31
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Oct. 04, 2015 | Dec. 28, 2014 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facility | $ 164,000 | $ 138,500 |
Capital lease obligations | 8,065 | 8,521 |
Total | 172,065 | 147,021 |
Estimated Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facility | 163,876 | 138,397 |
Capital lease obligations | 9,362 | 10,004 |
Total | $ 173,238 | $ 148,401 |