Kona Grill (KONA) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Entity Registrant Name	KONA GRILL INC
Entity Central Index Key	1,265,572
Trading Symbol	kona
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		11,211,161
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 3,453	$ 9,055
Short-term investments	178	178
Receivables	635	1,574
Inventory	1,825	1,865
Prepaid expenses and other current assets	252	692
Total current assets	6,343	13,364
Other assets	1,226	1,228
Property and equipment, net	95,831	87,252
Total assets	103,400	101,844
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	3,554	4,548
Accrued expenses	13,740	14,282
Total current liabilities	17,294	$ 18,830
Long term debt	5,000
Deferred rent and other long term liabilities	20,645	$ 20,323
Total liabilities	$ 42,939	$ 39,153
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized, none issued
Common stock, $0.01 par value, 30,000,000 shares authorized, 11,327,361 shares issued and 11,211,161 shares outstanding at March 31, 2016; 11,387,724 shares issued and 11,271,524 shares outstanding at December 31, 2015	$ 114	$ 114
Additional paid-in capital	97,608	98,182
Accumulated deficit	(36,261)	(34,605)
Treasury stock, at cost, 116,200 shares at March 31, 2016 and December 31, 2015	(1,000)	(1,000)
Total stockholders’ equity	60,461	62,691
Total liabilities and stockholders’ equity	$ 103,400	$ 101,844

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	11,327,361	11,387,724
Common stock, shares outstanding (in shares)	11,211,161	11,271,524
Treasury stock, shares (in shares)	116,200	116,200

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restaurant sales	$ 39,277,000	$ 32,807,000
Costs and expenses:
Cost of sales	10,501,000	9,062,000
Labor	14,118,000	11,388,000
Occupancy	3,249,000	2,357,000
Restaurant operating expenses	5,639,000	4,608,000
General and administrative	3,516,000	3,283,000
Preopening expenses	711,000	817,000
Depreciation and amortization	3,121,000	2,184,000
Total costs and expenses	40,855,000	33,699,000
Income (loss) from operations	(1,578,000)	(892,000)
Interest expense, net	53,000	45,000
Income (loss) before income taxes	(1,631,000)	(937,000)
Income tax expense (benefit)	25,000	(12,000)
Net income (loss)	$ (1,656,000)	$ (925,000)
Net income (loss) per share:
Basic (in dollars per share)	$ (0.15)	$ (0.08)
Diluted (in dollars per share)	$ (0.15)	$ (0.08)
Weighted average shares used in computation:
Weighted average shares — Basic (in shares)	11,258	11,235
Diluted (in shares)	11,258	11,235
Comprehensive income (loss)	$ (1,656,000)	$ (925,000)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net income (loss)	$ (1,656,000)	$ (925,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	3,121,000	2,184,000
Share-based Compensation	299,000	301,000
Amortization of Debt Issuance Costs	21,000	20,000
Change in operating assets and liabilities:
Receivables	939,000	(538,000)
Inventory	40,000	72,000
Prepaid expenses and other current assets	440,000	396,000
Accounts payable	(248,000)	(372,000)
Accrued expenses	(437,000)	(396,000)
Deferred rent and other long term liabilities	322,000	844,000
Net cash provided by operating activities	2,841,000	1,586,000
Investing activities
Purchase of property and equipment	(12,551,000)	(6,561,000)
Change in other assets	(19,000)	(63,000)
Net cash used in investing activities	(12,570,000)	$ (6,624,000)
Financing activities
Borrowings under credit facility	5,000,000
Purchase and retirement of common stock	(984,000)
Proceeds from issuance of common stock under the Employee Stock Purchase Plan and exercise of stock options	111,000	$ 458,000
Net cash provided by financing activities	4,127,000	458,000
Net change in cash and cash equivalents	(5,602,000)	(4,580,000)
Cash and cash equivalents at the beginning of the period	9,055,000	36,578,000
Cash and cash equivalents at the end of the period	3,453,000	31,998,000
Supplemental disclosure of cash flow information
Cash paid for interest, net of capitalized interest	30,000	25,000
Cash paid for income taxes, net of refunds	26,000	(27,000)
Noncash investing activities
Accounts payable and accruals related to property and equipment	$ 6,416,000	$ 3,873,000

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1 . Basis of Presentation Kona Grill, Inc., including its wholly-owned subsidiaries, (referred to herein as the “Company” or “we,” “us,” and “our”) develops, owns and operates upscale casual dining restaurants under the name “Kona Grill.” Our restaurants feature a diverse selection of flavorful American favorites and award-winning sushi items that are prepared fresh daily at each restaurant location. As of March 31, 2016, we owned and operated 37 restaurants in 19 states and Puerto Rico. In April 2016, we opened a new restaurant in Irvine, California and currently have operations in 20 states and Puerto Rico. Our chief operating decision maker function is comprised of our Chief Executive Officer and Chief Financial Officer who manage our restaurant operation base that aggregates into one reportable segment. Accordingly, we have a single operating segment and reporting unit structure. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by U.S. GAAP for complete financial statements. Accordingly, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2015. The Company has evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the day the financial statements are issued. In February and April 2016, we entered into franchise agreements for the development of six Kona Grill restaurants in Mexico and six restaurants in the United Arab Emirates. Territory and franchise fees received in conjunction with these agreements are recorded as deferred revenue and included in “Deferred rent and other long term liabilities” in our consolidated balance sheets. Territory fees are recognized as income on a pro-rata basis at the same time the individual franchise fees for each location are considered earned, typically when the individual franchise unit is opened. We have not recognized any franchise related income in the quarter ended March 31, 2016. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The pronouncement was issued to clarify the principles for recognizing revenue and is effective for reporting periods beginning after December 15, 2017. The expected adoption method of ASU 2014-09 is being evaluated by the Company. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This guidance requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying value of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by this new guidance. The adoption of this guidance in the first quarter of 2016 did not have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). The pronouncement was issued to provide guidance concerning accounting for fees in a cloud computing arrangement. We have elected to adopt the guidance prospectively. The adoption of ASU 2015-05 in the first quarter of 2016 did not have a significant impact on our consolidated financial position or results of operations. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330). The pronouncement was issued to simplify the measurement of inventory and changes the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for reporting periods beginning after December 15, 2016. The adoption of ASU 2015-11 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In February 2016, a new accounting standard, ASC Topic 842, “Leases,” was issued to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In order to meet that objective, the new standard requires recognition of the assets and liabilities that arise from leases. Accordingly, a lessee will recognize a right-of-use (ROU) asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. Both the ROU asset and lease liability will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance or an operating lease. Initial costs directly attributable to negotiating and arranging the lease will be included in the ROU asset. Lessees can make an accounting policy election by class of underlying asset not to recognize a ROU asset and corresponding lease liability for leases with a term of 12 months or less. Accounting by lessors will remain largely unchanged from current U.S. GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that companies may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The transition guidance also provides specific guidance for sale and leaseback transactions, build-to-suit leases, leveraged leases, and amounts previously recognized in accordance with the business combinations guidance for leases. The new standard is effective for public companies for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The expected adoption method is being evaluated by our company. We expect the adoption of this guidance to have a significant impact on our consolidated financial position and results of operations. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for fiscal years beginning after December 31, 2016, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the timing and the impact of adopting the standard.

Note 2 - Fair Value Measurement

Note 2 - Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Fair Value Disclosures [Text Block]	2 . Fair Value Measurements The carrying value for certain of our financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short-term nature. Our investments represent certificates of deposit and are considered available-for-sale securities that are valued using market observable inputs (Level 2). Our long-term debt, when incurred, is valued using primarily Level 2 inputs including current applicable rates for similar instruments and approximates the carrying value of such obligations.

Note 3 - Net Income (Loss) Per

Note 3 - Net Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	3. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share includes the dilutive effect of potential stock option exercises, calculated using the treasury stock method. The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended March 31, 2016 2015 (In thousands, except per share data) Numerator: Net income (loss) $ (1,656 ) $ (925 ) Denominator: Weighted average shares — Basic 11,258 11,235 Effect of dilutive stock options — — Weighted average shares — Diluted 11,258 11,235 Net income (loss) per share: Basic $ (0.15 ) $ (0.08 ) Diluted $ (0.15 ) $ (0.08 ) For the three months ended March 31, 2016 and 2015, there were 846,000 and 581,000 stock options outstanding, respectively, that were not included in the dilutive earnings per share calculation because the effect would have been anti-dilutive.

Note 4 - Property and Equipment

Note 4 - Property and Equipment	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	4. Property and Equipment Property and equipment consisted of the following (in thousands): March 31, 201 6 December 31, 201 5 Leasehold improvements $ 99,973 $ 96,473 Equipment 26,509 25,825 Furniture and fixtures 11,586 11,126 138,068 133,424 Less accumulated depreciation and amortization (57,154 ) (54,027 ) 80,914 79,397 Construction in progress 14,917 7,855 Total property and equipment, net $ 95,831 $ 87,252 We capitalize direct internal payroll and travel costs on the construction of leasehold improvements incurred during the development and construction period. Capitalized costs were $269,000 and $182,000 in the three months ended March 31, 2016 and 2015, respectively.

Note 5 - Accrued Expenses

Note 5 - Accrued Expenses	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	5. Accrued Expenses Accrued expenses consisted of the following (in thousands): March 31, December 31, 2016 20 15 Accrued payroll and benefits $ 3,747 $ 3,786 Accrued construction and remodel costs (1) 4,911 5,017 Gift card liability 1,886 2,309 Sales taxes 1,621 1,678 Accrued occupancy 326 296 Business and income taxes 293 321 Other 956 875 Total accrued expenses $ 13,740 $ 14,282 (1)

Note 6 - Debt and Credit Agreem

Note 6 - Debt and Credit Agreements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	6. Debt and Credit Agreements On April 19, 2013, we entered into a Credit Agreement for a $20 million revolving line of credit maturing on April 19, 2017 with KeyBank National Association (“KeyBank”) and Stearns Bank National Association (“Stearns Bank”). On November 7, 2014, we entered into an Amended and Restated Credit Agreement (the “Amended Credit Agreement”) with KeyBank to (i) increase the credit facility from $20 million to $35 million, and (ii) extend the maturity date of the credit facility to November 7, 2019. The credit facility is secured by our personal property and assets. Certain of our wholly owned subsidiaries have also guaranteed the credit facility. We had $5 million in outstanding borrowings and $30 million available under the credit facility at March 31, 2016. In April 2016, we borrowed another $4 million under the credit facility. We may from time to time request that the total revolving credit commitment be increased up to an amount not to exceed $60 million. Any such increase is subject to agreement of the respective lenders in the lending syndicate or new lenders in certain circumstances. Any such increase, which may be for a lesser amount than requested by us, is also subject to certain other terms and conditions as provided in the Amended Credit Agreement. The interest rate under the Amended Credit Agreement is KeyBank’s prime rate or LIBOR, at our option, plus an applicable margin depending on our leverage ratio. The LIBOR margins range from 1.5% to 2.5% and the base rate margins range from 0.5% to 1.5%. Payments on the credit facility are interest only, payable quarterly with respect to each base rate loan and at varying times with respect to LIBOR rate loans, with outstanding principal and interest due at maturity. Prepayment is permitted at any time without penalty, subject to certain restrictions on the order of repayment or prepayment. We are obligated to pay a commitment fee at an annual rate of 0.175% to 0.350%, depending on our leverage ratio, times the unused total revolving commitment of the credit facility based on the average daily amount outstanding under the credit facility for the previous quarter. The commitment fee is payable quarterly in arrears. We incurred gross interest expense of $53,000 and $45,000 during the quarter ended March 31, 2016 and 2015, consisting primarily of loan fee amortization of $21,000 and $20,000, respectively, and commitment fees of $26,000 and $22,000, respectively. Unamortized loan fees of $301,000 at March 31, 2016 are being amortized over the life of the credit facility and are included in other assets in the consolidated balance sheet. Capitalized interest was immaterial for the quarter ended March 31, 2016 and none for the quarter ended March 31, 2015, respectively. We generally use available cash to repay any borrowings under the credit facility and any remaining balances are maintained by extending the maturities of the borrowings. Our current projections indicate that we will maintain the outstanding borrowings for the next 12 months and, as a result, all borrowings under the credit facility are classified as long-term debt. The credit facility also requires us to comply with certain covenants, including (a) a fixed charge coverage ratio of not less than 1.50 and (b) a maximum leverage ratio of 5.0 to 1.0 through March 31, 2016 and 4.75 to 1.0 from April 1, 2016 through the maturity date. We were in compliance with all covenants at March 31, 2016.

Note 7 - Income Taxes

Note 7 - Income Taxes	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	7. Income Taxes We recorded an income tax expense of $25,000 during the three months ended March 31, 2016 and income tax benefit of $12,000 during the three months ended March 31, 2015. The income tax expense for the three months ended March 31, 2016 consists of state income tax expenses for which no net operating losses or other credits exist. The income tax benefit for the three months ended March 31, 2015 relates to refunds of $27,000 primarily associated with prior year federal income tax partially offset by state income tax expense of $15,000 for which no net operating loss carryforwards or other credits exist. At March 31, 2016, we had approximately $21 million in deferred tax assets primarily related to state net operating loss carryforwards and federal business tax credit carryforwards. We have a full valuation allowance for these carryforwards due to the uncertainty surrounding their future utilization. The realization of our deferred tax assets ultimately depends on the existence of sufficient taxable income in the appropriate taxing jurisdictions in future periods. We have analyzed, and will continue to analyze, the positive and negative evidence to support our conclusion regarding the appropriate amount of our valuation allowance. The valuation allowance could be reduced in a subsequent period if there is sufficient evidence to support a conclusion that it is more likely than not that the state net operating loss carryforwards and/or the federal business tax credit carryforwards will be realized. Future changes in our valuation allowance could have a material effect on our results of operations in the period recorded.

Note 8 - Stock-based Compensati

Note 8 - Stock-based Compensation	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	8. Stock-Based Compensation The fair value of stock options granted during the three months ended March 31, 2016 and 2015 was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Three Months Ended March 31, 2016 20 15 Expected volatility 45.2 % 40.7 % Risk-free interest rate 0.9 % 0.9 % Expected option life (in years) 3.2 3.0 Dividend yield 0.0 % 0.0 % Weighted average fair value per option granted $ 4.57 $ 6.74 The following table summarizes our stock option activity for the three months ended March 31, 2016: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options at December 31, 2015 961,468 $ 15.15 Granted 251,532 14.26 Forfeited (5,600 ) 15.59 Exercised (19,050 ) 5.20 Outstanding options at March 31, 2016 1,188,350 $ 15.12 3.1 $ 1,972,000 Exercisable at March 31, 2016 582,900 $ 13.34 2.3 $ 1,682,000 We recognized stock-based compensation expense of $0.3 million in each of the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was $2.8 million of unrecognized stock-based compensation expense related to unvested stock-based compensation awards, which is expected to be recognized over a weighted average period of 2.7 years. The total shares of common stock reserved for issuance totaled 3.7 million, of which 1.3 million shares were available for grant as of March 31, 2016.

Note 9 - Stock Purchase and Ret

Note 9 - Stock Purchase and Retirement Program	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	9. Stock Purchase and Retirement Program In November 2015, our Board of Directors authorized a repurchase program of up to $10.0 million of our outstanding common stock. As of March 31, 2016, we have repurchased and retired $1.2 million or 98,600 shares under the 2015 authorization, including $1.0 million or 80,406 shares during the first quarter of 2016. The authorization of the program does not have an expiration date and it does not require us to purchase a specific dollar amount of shares. This authorization may be modified, suspended or terminated at any time. The timing and number of shares purchased pursuant to the share purchase authorization are subject to a number of factors, including current market conditions, legal constraints and available cash. If we do not continue to repurchase shares of our common stock, this could have an adverse effect on the market price of our common stock.

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	10. Commitments and Contingencies We are engaged in various legal actions, which arise in the ordinary course of our business. Although there can be no assurance as to the ultimate disposition of these matters, it is the opinion of our management, based upon the information available at this time, that the expected outcome of these matters, individually or in the aggregate, will not have a material adverse effect on the results of operations or financial condition of our company. On December 13, 2012, Frank Neal Goss filed a lawsuit against Kona Grill Macadamia, Inc., a wholly-owned subsidiary of the Company (“Macadamia”) and Anthony DeAngelo in the Circuit Court of Jackson County, Kansas City, Missouri. The claim revolves around a fight that Goss and DeAngelo allegedly had outside of the Company’s Kansas City restaurant on March 1, 2011, which is claimed to have resulted in physical injury to the plaintiff. The plaintiff also claims that Macadamia failed to take certain actions that allegedly would have prevented the fight. A default judgment of approximately $3.5 million was entered on December 18, 2013 against Macadamia, but was subsequently set aside by order of the Circuit Court on April 7, 2014. On August 17, 2015, Macadamia filed a Motion for Summary Judgment requesting judgment in its favor on all claims asserted against it by the plaintiff. On August 18, 2015, the plaintiff filed for a voluntary dismissal of the claim without prejudice; however, on April 22, 2016, the plaintiff re-filed the claim in the Circuit Court. We believe that we have a strong defense to the claim asserted by the plaintiff and insurance coverage for the claim.

Note 3 - Net Income (Loss) Pe16

Note 3 - Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31, 2016 2015 (In thousands, except per share data) Numerator: Net income (loss) $ (1,656 ) $ (925 ) Denominator: Weighted average shares — Basic 11,258 11,235 Effect of dilutive stock options — — Weighted average shares — Diluted 11,258 11,235 Net income (loss) per share: Basic $ (0.15 ) $ (0.08 ) Diluted $ (0.15 ) $ (0.08 )

Note 4 - Property and Equipme17

Note 4 - Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Property, Plant and Equipment [Table Text Block]	March 31, 201 6 December 31, 201 5 Leasehold improvements $ 99,973 $ 96,473 Equipment 26,509 25,825 Furniture and fixtures 11,586 11,126 138,068 133,424 Less accumulated depreciation and amortization (57,154 ) (54,027 ) 80,914 79,397 Construction in progress 14,917 7,855 Total property and equipment, net $ 95,831 $ 87,252

Note 5 - Accrued Expenses (Tabl

Note 5 - Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	March 31, December 31, 2016 20 15 Accrued payroll and benefits $ 3,747 $ 3,786 Accrued construction and remodel costs (1) 4,911 5,017 Gift card liability 1,886 2,309 Sales taxes 1,621 1,678 Accrued occupancy 326 296 Business and income taxes 293 321 Other 956 875 Total accrued expenses $ 13,740 $ 14,282

Note 8 - Stock-based Compensa19

Note 8 - Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Three Months Ended March 31, 2016 20 15 Expected volatility 45.2 % 40.7 % Risk-free interest rate 0.9 % 0.9 % Expected option life (in years) 3.2 3.0 Dividend yield 0.0 % 0.0 % Weighted average fair value per option granted $ 4.57 $ 6.74
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options at December 31, 2015 961,468 $ 15.15 Granted 251,532 14.26 Forfeited (5,600 ) 15.59 Exercised (19,050 ) 5.20 Outstanding options at March 31, 2016 1,188,350 $ 15.12 3.1 $ 1,972,000 Exercisable at March 31, 2016 582,900 $ 13.34 2.3 $ 1,682,000

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation (Details Textual)	1 Months Ended		3 Months Ended
	Apr. 30, 2016	Feb. 29, 2016	Mar. 31, 2016USD ($)
Subsequent Event [Member] | UNITED ARAB EMIRATES
Significant Changes, Franchises Sold	6
Subsequent Event [Member]
Number of States in which Entity Operates	20
MEXICO
Significant Changes, Franchises Sold		6
Number of Restaurants			37
Number of States in which Entity Operates			19
Number of Reportable Segments			1
Franchise Revenue			$ 0

Note 3 - Net Income (Loss) Pe21

Note 3 - Net Income (Loss) Per Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	846,000	581,000

Note 3 - Basic and Diluted Net

Note 3 - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator:
Net income (loss)	$ (1,656)	$ (925)
Denominator:
Weighted average shares — Basic (in shares)	11,258	11,235
Effect of dilutive stock options (in shares)
Weighted average shares — Diluted (in shares)	11,258	11,235
Net income (loss) per share:
Basic (in dollars per share)	$ (0.15)	$ (0.08)
Diluted (in dollars per share)	$ (0.15)	$ (0.08)

Note 4 - Property and Equipme23

Note 4 - Property and Equipment (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Internal Payroll Travel Costs Capitalized	$ 269,000	$ 182,000

Note 4 - Summary of Property an

Note 4 - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Leasehold Improvements [Member]
Property, plant and equipment gross	$ 99,973	$ 96,473
Equipment [Member]
Property, plant and equipment gross	26,509	25,825
Furniture and Fixtures [Member]
Property, plant and equipment gross	11,586	11,126
Excluding Construction In Progress [Member]
Property, plant and equipment, net	80,914	79,397
Construction in Progress [Member]
Property, plant and equipment gross	14,917	7,855
Property, plant and equipment gross	138,068	133,424
Less accumulated depreciation and amortization	(57,154)	(54,027)
Property, plant and equipment, net	$ 95,831	$ 87,252

Note 5 - Accrued Expenses - Acc

Note 5 - Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Accrued payroll and benefits		$ 3,747	$ 3,786
Accrued construction and remodel costs(1)	[1]	4,911	5,017
Gift card liability		1,886	2,309
Sales taxes		1,621	1,678
Accrued occupancy		326	296
Business and income taxes		293	321
Other		956	875
Total accrued expenses		$ 13,740	$ 14,282
[1]	Balance is attributable to property additions for our new restaurants and remodels.

Note 6 - Debt and Credit Agre26

Note 6 - Debt and Credit Agreements (Details Textual)	Nov. 07, 2014USD ($)	Apr. 19, 2013USD ($)	Apr. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Revolving Credit Facility [Member] | Key Bank [Member] | Subsequent Event [Member]
Proceeds from Long-term Lines of Credit			$ 4,000,000
Revolving Credit Facility [Member] | Key Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 35,000,000	$ 20,000,000
Long-term Line of Credit, Noncurrent				$ 5,000,000
Line of Credit Facility, Remaining Borrowing Capacity				30,000,000
Line of Credit Facility, Maximum Commitment Increase Request, Amount				$ 60,000,000
Line of Credit Facility, Expiration Date	Nov. 7, 2019	Apr. 19, 2017
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate				2.50%
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate				1.50%
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate				1.50%
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate				0.50%
Revolving Credit Facility [Member] | Maximum [Member] | Through March 31, 2016 [Member]
Maximum Leverage Ratio				5
Revolving Credit Facility [Member] | Maximum [Member] | From April 1, 2016 Through the Maturity Date [Member]
Maximum Leverage Ratio				4.75
Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.35%
Revolving Credit Facility [Member] | Minimum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.175%
Revolving Credit Facility [Member]
Fixed Charge Coverage Ratio Minimum				1.5
Long-term Line of Credit, Noncurrent				$ 5,000,000
Interest Expense, Debt				53,000	$ 45,000
Amortization of Debt Issuance Costs				21,000	20,000
Line of Credit Facility, Commitment Fee Amount				26,000	$ 22,000
Unamortized Debt Issuance Expense				$ 301,000

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Domestic Tax Authority [Member]
Income Tax Expense (Benefit)		$ (27,000)
State and Local Jurisdiction [Member]
Income Tax Expense (Benefit)		15,000
Income Tax Expense (Benefit)	$ 25,000	$ (12,000)
Deferred Tax Assets, Gross	$ 21,000,000

Note 8 - Stock-based Compensa28

Note 8 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands, shares in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation	$ 299	$ 301
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2,800
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 255 days
Common Stock, Capital Shares Reserved for Future Issuance	3.7
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1.3

Note 8 - Stock-Based Compensa29

Note 8 - Stock-Based Compensation - Stock Options Fair Value Assumptions (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Expected volatility	45.20%	40.70%
Risk-free interest rate	0.90%	0.90%
Expected option life (in years)	3 years 73 days	3 years
Dividend yield	0.00%	0.00%
Weighted average fair value per option granted (in dollars per share)	$ 4.57	$ 6.74

Note 8 - Stock-Based Compensa30

Note 8 - Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Outstanding, shares under option (in shares) | shares	961,468
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 15.15
Granted, shares under option (in shares) | shares	251,532
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 14.26
Forfeited, shares under option (in shares) | shares	(5,600)
Forfeited, weighted average exercise price (in dollars per share) | $ / shares	$ 15.59
Exercised, shares under option (in shares) | shares	(19,050)
Exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 5.20
Outstanding, shares under option (in shares) | shares	1,188,350
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 15.12
Outstanding options at March 31, 2016	3 years 36 days
Outstanding options at March 31, 2016 | $	$ 1,972
Exercisable at March 31, 2016 (in shares) | shares	582,900
Exercisable at March 31, 2016 (in dollars per share) | $ / shares	$ 13.34
Exercisable at March 31, 2016	2 years 109 days
Exercisable at March 31, 2016 | $	$ 1,682

Note 9 - Stock Purchase and R31

Note 9 - Stock Purchase and Retirement Program (Details Textual) - USD ($) $ in Millions	3 Months Ended	5 Months Ended
	Mar. 31, 2016	Mar. 31, 2016	Nov. 30, 2015
Stock Repurchase Program, Authorized Amount			$ 10
Stock Repurchased and Retired During Period, Value	$ 1	$ 1.2
Stock Repurchased and Retired During Period, Shares	80,406	98,600

Note 10 - Commitments and Con32

Note 10 - Commitments and Contingencies (Details Textual) $ in Millions	Feb. 10, 2014USD ($)
Default Judgement Set Aside Amount	$ 3.5