Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 27, 2015 | Feb. 26, 2016 | Jun. 28, 2015 | |
Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding (in shares) | 33,638,024 | ||
Unvested Restricted Stock [Member] | |||
Entity Common Stock, Shares Outstanding (in shares) | 1,150,082 | ||
Entity Registrant Name | Ruths Hospitality Group, Inc. | ||
Entity Central Index Key | 1,324,272 | ||
Trading Symbol | ruth | ||
Current Fiscal Year End Date | --12-27 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 546,701,336 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 27, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 27, 2015 | Dec. 28, 2014 |
Franchise Rights [Member] | ||
Current assets: | ||
Finite-lived intangible assets | $ 32,200,000 | $ 32,237,000 |
Other Intangible Assets [Member] | ||
Current assets: | ||
Finite-lived intangible assets | 3,011,000 | 2,775,000 |
Cash and cash equivalents | 3,095,000 | 4,301,000 |
Accounts receivable, less allowance for doubtful accounts 2015 - $732; 2014 - $760 | 18,501,000 | 20,458,000 |
Inventory | 7,479,000 | 7,206,000 |
Assets held for sale | 250,000 | 15,119,000 |
Prepaid expenses and other | 1,259,000 | 1,291,000 |
Total current assets | 30,584,000 | 48,375,000 |
Property and equipment, net of accumulated depreciation 2015 - $125,362; 2014 - $114,708 | 87,984,000 | 80,354,000 |
Goodwill | 24,293,000 | 24,293,000 |
Deferred income taxes | 19,309,000 | 28,829,000 |
Other assets | 1,216,000 | 1,704,000 |
Total assets | 198,597,000 | 218,567,000 |
Current liabilities: | ||
Accounts payable | 10,018,000 | 13,414,000 |
Accrued payroll | 17,064,000 | 15,304,000 |
Accrued expenses | 9,280,000 | 11,065,000 |
Deferred revenue | $ 35,202,000 | 34,552,000 |
Liabilities associated with assets held for sale | 4,869,000 | |
Other current liabilities | $ 6,308,000 | 7,277,000 |
Total current liabilities | $ 77,872,000 | 86,481,000 |
Long-term debt | 13,000,000 | |
Deferred rent | $ 20,275,000 | 19,990,000 |
Other liabilities | 2,548,000 | 2,785,000 |
Total liabilities | $ 100,695,000 | $ 122,256,000 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock, par value $.01 per share; 100,000,000 shares authorized, 33,145,687 shares issued and outstanding at December 27, 2015 34,333,858 shares issued and outstanding at December 28, 2014 | $ 331,000 | $ 343,000 |
Additional paid-in capital | 135,403,000 | 155,457,000 |
Accumulated deficit | $ (37,832,000) | $ (59,489,000) |
Treasury stock, at cost; 71,950 shares at December 27, 2015 and December 28, 2014 | ||
Total shareholders' equity | $ 97,902,000 | $ 96,311,000 |
Total liabilities and shareholders' equity | $ 198,597,000 | $ 218,567,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 27, 2015 | Dec. 28, 2014 |
Franchise Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 218 | $ 180 |
Other Intangible Assets [Member] | ||
Finite-lived intangible assets, accumulated amortization | 1,090 | 1,002 |
Allowance for doubtful accounts | 732 | 760 |
Property and equipment, accumulated depreciation | $ 125,362 | $ 114,708 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 33,145,687 | 34,333,858 |
Common stock, shares outstanding (in shares) | 33,145,687 | 34,333,858 |
Treasury stock, shares (in shares) | 71,950 | 71,950 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Revenues: | |||
Restaurant sales | $ 351,875 | $ 325,437 | $ 304,200 |
Franchise income | 16,661 | 15,763 | 15,012 |
Other operating income | 4,897 | 4,897 | 3,142 |
Total revenues | 373,433 | 346,097 | 322,354 |
Costs and expenses: | |||
Food and beverage costs | 108,101 | 103,259 | 93,386 |
Restaurant operating expenses | 165,847 | 156,242 | 145,664 |
Marketing and advertising | 10,925 | 10,076 | 9,341 |
General and administrative costs | 30,242 | 24,311 | 27,808 |
Depreciation and amortization expenses | 12,520 | 10,917 | 10,229 |
Pre-opening costs | $ 1,032 | $ 1,630 | 691 |
Gain on settlements, net | (1,719) | ||
Total costs and expenses | $ 328,667 | $ 306,435 | 285,400 |
Operating income | 44,766 | 39,662 | 36,954 |
Other income (expense): | |||
Interest expense | (790) | (1,159) | (1,640) |
Other | 358 | 37 | (77) |
Income from continuing operations before income tax expense | 44,334 | 38,540 | 35,237 |
Income tax expense | 14,168 | 11,830 | 10,744 |
Income from continuing operations | 30,166 | 26,710 | 24,493 |
Discontinued operations: | |||
Loss from discontinued operations, net of income tax benefit: 2015-($869); 2014-($7,472); 2013-($2,426) | (162) | (10,255) | (2,004) |
Net income | $ 30,004 | $ 16,455 | $ 22,489 |
Basic earnings (loss) per common share: | |||
Continuing operations (in dollars per share) | $ 0.88 | $ 0.76 | $ 0.71 |
Discontinued operations (in dollars per share) | 0 | (0.29) | (0.06) |
Basic earnings (loss) per share (in dollars per share) | 0.88 | 0.47 | 0.65 |
Diluted earnings (loss) per common share: | |||
Continuing operations (in dollars per share) | 0.87 | 0.75 | 0.69 |
Discontinued operations (in dollars per share) | 0 | (0.29) | (0.06) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.87 | $ 0.46 | $ 0.63 |
Shares used in computing earnings (loss) per common share: | |||
Basic (in shares) | 34,018,582 | 34,955,760 | 34,761,160 |
Diluted (in shares) | 34,434,407 | 35,415,483 | 35,784,430 |
Dividends declared per common share (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.12 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income tax benefit | $ (869) | $ (7,472) | $ (2,426) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 30, 2012 | 34,434 | 72 | |||
Balance at Dec. 30, 2012 | $ 344 | $ 167,404 | $ (87,015) | $ 80,733 | |
Net income | 22,489 | 22,489 | |||
Cash dividends | (4,278) | (4,278) | |||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 556 | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 6 | (1,772) | (1,766) | ||
Excess tax benefit from stock based compensation | 1,132 | 1,132 | |||
Stock-based compensation | 2,343 | 2,343 | |||
Balance (in shares) at Dec. 29, 2013 | 34,990 | 72 | |||
Balance at Dec. 29, 2013 | $ 350 | 169,107 | (68,804) | 100,653 | |
Net income | 16,455 | 16,455 | |||
Cash dividends | (7,138) | (7,138) | |||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 588 | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 6 | (2,945) | (2,939) | ||
Excess tax benefit from stock based compensation | 1,868 | 1,868 | |||
Stock-based compensation | 2,821 | 2,821 | |||
Balance (in shares) at Dec. 28, 2014 | 34,334 | 72 | |||
Balance at Dec. 28, 2014 | $ 343 | 155,455 | (59,487) | 96,311 | |
Repurchase of common stock (in shares) | (1,244) | ||||
Repurchase of common stock | $ (12) | (15,397) | (15,409) | ||
Net income | 30,004 | 30,004 | |||
Cash dividends | (8,349) | (8,349) | |||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 295 | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 3 | (1,145) | (1,142) | ||
Excess tax benefit from stock based compensation | 743 | 743 | |||
Stock-based compensation | 4,087 | 4,087 | |||
Balance (in shares) at Dec. 27, 2015 | 33,146 | 72 | |||
Balance at Dec. 27, 2015 | $ 331 | 135,403 | $ (37,832) | 97,902 | |
Repurchase of common stock (in shares) | (1,483) | ||||
Repurchase of common stock | $ (15) | $ (23,737) | $ (23,752) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 30,004,000 | $ 16,455,000 | $ 22,489,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 12,520,000 | 13,185,000 | 13,060,000 |
Deferred income taxes | 9,519,000 | 753,000 | 6,093,000 |
Non-cash interest expense | $ 421,000 | 421,000 | 421,000 |
Loss on impairment and asset disposals | 15,805,000 | 3,262,000 | |
Amortization of below market lease | $ 0 | 129,000 | 129,000 |
Stock-based compensation expense | 4,087,000 | 2,821,000 | 2,343,000 |
Changes in operating assets and liabilities: | |||
Accounts receivables | 1,957,000 | (7,049,000) | (2,114,000) |
Inventories | (273,000) | (151,000) | 8,000 |
Prepaid expenses and other | 32,000 | 1,193,000 | (621,000) |
Other assets | 92,000 | 200,000 | 225,000 |
Accounts payable and accrued expenses | (3,763,000) | (2,669,000) | 3,036,000 |
Deferred revenue | 650,000 | 2,717,000 | 622,000 |
Deferred rent | 285,000 | 50,000 | (1,123,000) |
Other liabilities | (944,000) | (512,000) | (34,000) |
Net cash provided by operating activities | 54,587,000 | 43,348,000 | 47,796,000 |
Cash flows from investing activities: | |||
Acquisition of property and equipment | (20,292,000) | (17,365,000) | $ (15,311,000) |
Acquisition of franchise restaurant, net of cash acquired | 0 | (2,800,000) | |
Proceeds from sale of the Mitchell's Restaurants | $ 10,000,000 | 0 | $ 0 |
Proceeds on disposal of property and equipment | 149,000 | 1,104,000 | |
Net cash used in investing activities | $ (10,292,000) | (20,016,000) | (14,207,000) |
Cash flows from financing activities: | |||
Principal repayments on long-term debt | (48,000,000) | (32,000,000) | (32,500,000) |
Principal borrowings on long-term debt | 35,000,000 | 26,000,000 | $ 6,500,000 |
Repurchase of common stock | (23,752,000) | (15,409,000) | |
Cash dividend payments | (8,349,000) | (7,138,000) | $ (4,278,000) |
Excess tax benefits from stock compensation | 743,000 | 1,868,000 | 1,132,000 |
Tax payments from the vesting of restricted stock and option exercises | (1,393,000) | (3,121,000) | (1,974,000) |
Proceeds from exercise of stock options | 250,000 | 183,000 | 208,000 |
Net cash used in financing activities | (45,501,000) | (29,617,000) | (30,912,000) |
Net increase (decrease) in cash and cash equivalents | (1,206,000) | (6,285,000) | 2,677,000 |
Cash and cash equivalents at beginning of period | 4,301,000 | 10,586,000 | 7,909,000 |
Cash and cash equivalents at end of period | 3,095,000 | 4,301,000 | 10,586,000 |
Supplemental disclosures of cash flow information: | |||
Interest, net of capitalized interest | 428,000 | 709,000 | 1,272,000 |
Income taxes | 410,000 | 2,135,000 | 2,383,000 |
Noncash investing and financing activities: | |||
Excess accrual-based acquisition of property and equipment | $ 1,608,000 | $ 1,243,000 | $ 1,213,000 |
Note 1 - The Company, Organizat
Note 1 - The Company, Organization and Description of Business | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | (1) The Company, Organization and Description of Business Ruth’s Hospitality Group, Inc. and its subsidiaries (the Company) operate Ruth’s Chris Steak House restaurants and sell franchise rights to Ruth’s Chris Steak House franchisees giving the franchisees the exclusive right to operate similar restaurants in a particular area designated in the franchise agreement. At December 27, 2015, there were 148 Ruth’s Chris Steak House restaurants, of which 67 were Company-owned, 80 were franchisee-owned, and one location was operating under a management agreement. All Company-owned restaurants are located in the United States. The franchisee-owned restaurants include 20 international restaurants in Aruba, Canada, China (Hong Kong and Shanghai), El Salvador, Japan, Mexico, Panama, Singapore, Taiwan and the United Arab Emirates. A Ruth’s Chris Steak House located at Harrah’s Casino in Cherokee, NC operates under a management agreement between the Company and the Eastern Band of Cherokee Indians. Five new Ruth’s Chris Steak House locations opened during fiscal year 2015, including two Company-owned restaurants and three franchisee-owned restaurants. The Company opened two new Company-owned Ruth’s Chris Steak House restaurants in 2015 – one in St. Petersburg, FL in February and one in Dallas, TX in November. Subsequent to the Company’s fiscal year 2015, the franchisee-owned Ruth’s Chris Steak House restaurant in San Salvador, El Salvador and the Company-owned Ruth’s Chris Steak House restaurant in Columbus, OH were closed. As of December 28, 2014, the Company also operated eighteen Mitchell’s Fish Markets and three Mitchell’s/Cameron’s Steakhouse restaurants (collectively, the Mitchell’s Restaurants), located primarily in the Midwest and Florida. On January 21, 2015, the Company sold the Mitchell’s Restaurants to a third party. For financial reporting purposes, the Mitchell’s Restaurants are classified as a discontinued operation for all periods presented and, as of December 28, 2014, the assets and liabilities are classified as held for sale. See Notes 3, 4 and 5 for additional information regarding the Mitchell’s Restaurants and the sale. The following table summarizes the changes in the number of Company-owned Ruth’s Chris Steak House restaurants and franchisee-owned restaurants during the thirteen and fifty-two weeks ended December 27, 2015. 13 Weeks Ending 52 Weeks Ending December 27, 2015 December 27, 2015 Ruth's Chris Steak House Company Franchised Managed Total Company Franchised Managed Total Beginning of period 66 79 1 146 65 77 1 143 Acquired 0 0 0 0 0 0 0 0 Sold 0 0 0 0 0 0 0 0 New 1 1 0 2 2 3 0 5 Closed 0 0 0 0 0 0 0 0 End of period 67 80 1 148 67 80 1 148 % of total 45% 54% 1% 100% 45% 54% 1% 100% |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (2) Summary of Significant Accounting Policies (a) Basis of Presentation The Company utilizes a 52- or 53-week reporting period ending on the last Sunday of December. The periods ended December 27, 2015 (fiscal year 2015) December 28, 2014 (fiscal year 2014) and December 29, 2013 each had a 52-week reporting period. The consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles and include the financial statements of Ruth’s Hospitality Group, Inc. and its wholly owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation. Most significantly, the results of the Mitchell’s Restaurants have been reclassified as a discontinued operation. (b) Change in Accounting for Gift Card Breakage The portion of gift cards sold to customers which are never redeemed is commonly referred to as gift card breakage. Prior to the fourth quarter of fiscal year 2013, the Company recognized breakage revenue using the delayed method of accounting. At the end of the fourth quarter of fiscal year 2013, the Company elected to change its policy for recognizing gift card breakage revenue by changing from the delayed method to the preferable redemption method of accounting. Under the redemption method, breakage revenue is recognized and the gift card liability is derecognized for unredeemed gift cards in proportion to actual gift card redemptions. The impact of the cumulative catch-up adjustment recorded in the fourth quarter of fiscal year 2013 was to reduce gift card breakage revenue by $2.2 million. Inclusive of this adjustment, the Company recognized $804 thousand of gift card breakage revenue in fiscal year 2013. Gift card breakage revenue recognized in fiscal years 2014 and 2015 was $2.6 million and $2.4 million, respectively. Consistent with the cumulative catch-up method of accounting for a change in accounting estimate effected by a change in accounting principle, previously issued financial statements were not revised. (c) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective. The new standard was originally effective for interim and annual periods in fiscal years beginning after December 15, 2016. In July 2015, the FASB affirmed its proposal for a one year deferral of the effective date. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. The FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” in April 2015, which requires entities to present debt issuance costs related to a recognized debt liability on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Entities will no longer record the cost of issuing debt as a separate asset, except when the cost is incurred before receipt of the funding from the associated debt liability. The new standard is effective for interim and annual periods beginning after December 15, 2015. On August 18, 2015 the FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements – Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting,” (ASU 2015-15), which addresses the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. ASU 2015-15 states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are outstanding borrowings under that line-of-credit arrangement. The Company’s current financial statement presentation of debt issuance costs is consistent with the guidance in ASU 2015-15, so no material change in the Company’s financial reporting is expected from the recent debt issuance cost standards. 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. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2015-05 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 ASU No. 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 November 2015, the FASB issued ASU No. 2015-17, “Income Taxes” which requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. Prior to the issuance of the standard, deferred tax liabilities and assets were required to be separately classified into a current amount and a noncurrent amount in the balance sheet. The new accounting guidance represents a change in accounting principle and the standard is required to be adopted in annual periods beginning after December 15, 2016. Early adoption is permitted and the Company elected to early adopt this guidance as of December 27, 2015 and to apply the guidance retrospectively to all periods presented. Accordingly, the Company reclassified the prior period amount of $3.8 million related to its deferred tax asset from current to noncurrent, resulting in an offset to the noncurrent deferred income tax liability for the same amount for that period, according to the requirement to offset and present as a single amount. Because the application of this guidance affects classification only, such reclassifications did not have a material effect on the Company’s consolidated financial position or results of operations. ( d ) Contingencies The Company recognizes liabilities for contingencies when there is an exposure that indicates it is both probable that an asset has been impaired or that a liability has been incurred and that the amount of impairment or loss can be reasonably estimated. (e) Cash Equivalents For purposes of the consolidated financial statements, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company has included outstanding checks totaling $4.5 million and $7.6 million at December 27, 2015 and December 28, 2014, respectively, in “Accounts payable” and “Accrued payroll” in the consolidated balance sheets. Changes in such amounts are reflected in cash flows from operating activities in the consolidated statements of cash flows. ( f ) Accounts Receivable Accounts receivable consists primarily of bank credit cards receivable, landlord contributions, franchise royalty payments receivable, banquet billings receivable and other miscellaneous receivables. (g) Allowance for Doubtful Accounts The Company performs a specific review of account balances and applies historical collection experience to the various aging categories of receivable balances in establishing an allowance. ( h ) Inventories Inventories consist of food, beverages and supplies and are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. ( i ) Property and Equipment, net Property and equipment are stated at cost. Expenditures for improvements and major renewals are capitalized and minor replacement, maintenance and repairs are charged to expense. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the lease term or the estimated useful lives of the assets. The estimated useful lives for assets are as follows: Building and Building Improvements, 20 to 40 years; Equipment, 5 years; Furniture and Fixtures, 5 to 7 years; Computer Equipment, 3 to 5 years; and Leasehold Improvements, 5 to 20 years (limited by the lease term). ( j ) Goodwill , Franchise Rights and Trademarks Goodwill and trademarks acquired in a business combination that are determined to have an indefinite useful life are not amortized, but tested for impairment at least annually in accordance with the provisions of FASB ASC Topic 350, “Intangibles-Goodwill and Other.” Goodwill and trademarks are tested annually for impairment on a reporting unit basis and more frequently if events and circumstances indicate that the asset might be impaired. For purposes of testing goodwill impairment, a reporting unit is defined as a group of restaurants with similar economic characteristics. For purposes of testing trademark impairment, a reporting unit is defined as a group of acquired restaurants sharing a common trade name. An impairment loss is recognized to the extent that the financial statement carrying amount exceeds the asset’s fair value. Franchise rights acquired prior to 2008 in a purchase business combination that are determined to have an indefinite useful life are not amortized, but are tested for impairment at least annually on a reporting unit basis, which is defined as a group of reacquired restaurants, and more frequently if events and circumstances indicate that the asset might be impaired. The Company allows and expects franchisees to renew agreements indefinitely ensuring consistent cash flows. As a result, franchise rights acquired prior to 2008 are determined to have indefinite useful lives. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Franchise rights acquired after 2007 are no longer considered to have indefinite useful lives and are amortized in accordance with FASB ASC Topic 350. ( k ) Impairment or Disposal of Long-Lived Assets In accordance with FASB ASC Topic 360-10, “Property, Plant and Equipment—Impairment or Disposal of Long-Lived Assets,” (Topic 360-10), long lived assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment on a restaurant-by-restaurant basis whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the financial statement carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Key assumptions in the determination of fair value are the future after-tax cash flows of the restaurant and discount rate. The after-tax cash flows incorporate reasonable sales growth and margin improvement assumptions that would be expected by a franchisee in the determination of a purchase price for the restaurant. Estimates of future cash flows are highly subjective judgments and can be significantly impacted by changes in the business or economic conditions. The discount rate used in the fair value calculations is our estimate of the required rate of return that a market participant would expect to receive when purchasing a similar restaurant or groups of restaurants and the related long-lived assets. The discount rate incorporates rates of returns for historical refranchising market transactions and is commensurate with the risks and uncertainty inherent in the forecasted cash flows. The assets and liabilities of a disposed group classified as held for sale are presented separately in the appropriate asset and liability sections of the consolidated balance sheets. Assets are classified as held for sale when certain criteria are met, including the requirement that it is probable that the assets will be disposed of within one year. Assets classified as held for sale are separately presented in the balance sheet and reported at the lower of the carrying amount or the fair value less costs to sell, and are no longer depreciated. We account for exit or disposal activities, including restaurant closures, in accordance with Topic 360-10. Such costs include the cost of disposing of the assets as well as other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we record a liability under FASB ASC Topic 420, “Exit and Disposal Cost Obligations” for the net present value of any remaining lease obligations, net of estimated sublease income. Any subsequent adjustments to that liability as a result of lease termination or changes in estimates of sublease income are recorded in the period incurred. Upon disposal of the assets associated with a closed restaurant, any gain or loss is recorded in the same line within our consolidated statements of income as the original impairment. ( l ) Deferred Financing Costs Deferred financing costs represent fees paid in connection with obtaining bank and other long-term financing. The Company paid no financing costs during fiscal years 2015, 2014 and 2013. The Company amortizes deferred financing costs using a method that approximates the effective interest method over the term of the related financing. Amortization of deferred financing costs was $421 thousand in each of the fiscal years 2015, 2014 and 2013 and is included in interest expense on the consolidated statements of income. ( m ) Revenues Revenues are derived principally from food and beverage sales. The Company does not rely on any major customers as a source of revenue. Revenue from restaurant sales is recognized when food and beverage products are sold. Restaurant sales are presented net of sales taxes and discounts. Gratuities remitted by customers for the benefit of restaurant staff are not included in either revenues or operating expenses. Deferred revenue primarily represents the Company’s liability for gift cards that have been sold but not yet redeemed. When the gift cards are redeemed, the Company recognizes restaurant sales and reduces the deferred revenue liability. Company issued gift cards redeemed at franchisee-owned restaurants reduce the deferred revenue liability but do not result in Company restaurant sales. Gift card transactions involving franchisees are settled on a monthly basis through the Company’s third party gift card provider. The expected redemption value of gift cards represents the full value of all gift cards issued less the amount the Company has recognized as other operating income for gift cards that are not expected to be redeemed. Gift card breakage revenue is classified as a component of other operating income. (n) International Revenues The Company currently has 20 international franchisee-owned restaurants in Aruba, Canada, China, El Salvador, Japan, Mexico, Panama, Puerto Rico, Singapore, Taiwan and the United Arab Emirates. In accordance with its franchise agreements relating to these international restaurants, the Company receives royalty revenue from these franchisees in U.S. dollars. Franchise fee revenues from international restaurants were $3.0 million, $3.2 million and $3.0 million in fiscal years 2015, 2014 and 2013, respectively. ( o ) Rent Certain of the Company’s operating leases contain predetermined fixed escalations of the minimum rent during the term of the lease. For these leases, the Company recognizes the related rent expense on a straight-line basis over the life of the lease and records the difference between amounts charged to operations and amounts paid as deferred rent. Additionally, certain of the Company’s operating leases contain clauses that provide additional contingent rent based on a percentage of sales greater than certain specified target amounts. The Company recognizes contingent rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of that target is considered probable. ( p ) Marketing and Advertising Marketing and advertising expenses in the accompanying consolidated statements of income include advertising expenses of $6.5 million, $6.1 million and $6.1 million in fiscal years 2015, 2014 and 2013, respectively. Advertising costs are expensed as incurred. ( q ) Insurance Liability The Company maintains various policies for workers’ compensation, employee health, general liability and property damage. Pursuant to those policies, the Company is responsible for losses up to certain limits. The Company records liabilities for the estimated exposure for aggregate losses below those limits. The recorded liabilities are based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liabilities are not discounted and are based on a number of assumptions and factors, including historical trends, actuarial assumptions and economic conditions. Independent actuaries are used to develop estimates of the workers’ compensation, general and employee health care liabilities. (r) Stock-Based Compensation The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718, “Compensation—Stock Compensation, (Topic 718). Stock-based compensation cost includes compensation cost for all share-based payments granted based on the grant date fair value estimated in accordance with the provisions of Topic 718. Compensation cost is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period of each award. ( s ) Pre -Opening Costs Pre-opening costs incurred with the opening of new restaurants are expensed as incurred. These costs include rent expense, wages, benefits, travel and lodging for the training and opening management teams, and food, beverage and other restaurant operating expenses incurred prior to a restaurant opening for business. ( t ) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company applies the provisions of FASB ASC Topic 740, “Income Taxes” (Topic 740). Topic 740 requires that a position taken or expected to be taken in a tax return be recognized (or derecognized) in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company’s continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. ( u ) Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net income by the diluted weighted average shares of common stock outstanding during each period. Potentially dilutive securities include shares of non-vested stock awards. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Stock awards are excluded from the calculation of diluted earnings per share in the event they are antidilutive. ( v ) Restaurant Acquisition |
Note 3 - Mitchell's Restaurants
Note 3 - Mitchell's Restaurants | 12 Months Ended |
Dec. 27, 2015 | |
Mitchells Restaurants [Member] | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (3) Mitchell’s Restaurants As of December 28, 2014, the Company operated eighteen Mitchell’s Fish Markets and three Mitchell’s/Cameron’s Steakhouse restaurants (collectively, the Mitchell’s Restaurants). During the third quarter of fiscal year 2014, the Company reassessed its asset grouping specific to the Mitchell’s Restaurants under Topic 360 and concluded that it was appropriate to change the asset group from the individual restaurant unit to the set of Mitchell’s Restaurants. As a result of the reassessment, the Company determined that a triggering event had occurred requiring an impairment evaluation of its trademarks and long-lived assets. Consequently, during the third quarter of fiscal year 2014, the Company recorded an impairment loss aggregating to $15.3 million. Specifically, the Company recorded a $7.3 million impairment loss related to trademark intangible assets and an $8.0 million impairment loss related to long-lived assets (primarily leasehold improvements). The impairment of both the trademark intangible assets and the long-lived assets was measured based on the amount by which the carrying amount of assets exceeded fair value. Fair value was estimated based on both the market and income approaches utilizing market participant assumptions reflecting all available information as of the September 28, 2014 balance sheet date. These impairment losses have been reclassified to discontinued operations. In November 2014, the Company and Landry’s, Inc. and Mitchell’s Entertainment, Inc., an affiliate of Landry’s Inc. (together with Landry’s Inc., Landry’s), entered into an asset purchase agreement (the Agreement). Pursuant to the Agreement, the Company agreed to sell the Mitchell’s Restaurants and related assets to Landry’s for $10 million. The sale of the Mitchell’s Restaurants closed on January 21, 2015. The assets sold consisted primarily of leasehold interests, leasehold improvements, restaurant equipment and furnishings, inventory, and related intangible assets, including brand names and trademarks associated with the 21 Mitchell’s Restaurants. The assets and related liabilities of the Mitchell’s Restaurants were classified as held for sale in the consolidated balance sheet as of December 28, 2014. A $1.8 million loss on assets held for sale was recorded in the fourth quarter of fiscal year 2014. The results of operations, impairment charges and loss on assets held for sale have been classified as discontinued operations in the consolidated statements of income for all periods presented. No amounts for shared general and administrative costs or interest expense were allocated to discontinued operations. Substantially all direct cash flows related to operating these restaurants were eliminated at the closing date of the sale. The Company’s continuing involvement was limited to transition services up to four months with minimal impact on cash flows. Under the terms of the Agreement, Landry’s assumed the Mitchell’s Restaurants’ facility lease obligations and the Company will reimburse Landry’s for gift cards that are sold prior to the closing date and used at the Mitchell’s Restaurants during the eighteen months following the closing date. In the Agreement, the Company and Landry’s have made customary representations and warranties and have agreed to customary covenants relating to the sale of the Mitchell’s Restaurants. Specifically, (i) before the closing date, the Company was subject to certain business conduct restrictions with respect to its operation of the Mitchell’s Restaurants, and (ii) for eighteen months following the closing date, neither the Company nor Landry’s will knowingly solicit or employ, or seek to solicit or employ, certain key employees of the other party, subject to certain limited exceptions. Landry’s offered employment to substantially all of the employees of the Mitchell’s Restaurants. The Company and Landry’s have agreed to indemnify each other for losses arising from certain breaches of the Agreement and for certain other liabilities. The following summarizes the financial statement carrying amounts of assets and liabilities associated with the Mitchell’s Restaurants which are classified as held for sale as of December 28, 2014 (in thousands): Inventory $ 952 Property and equipment, net 8,775 Trademarks 2,847 Other intangibles 2,545 Total assets held for sale $ 15,119 Deferred rent liability $ 4,869 Total liabilities associated with assets held for sale $ 4,869 |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (4) Discontinued Operations The Company accounts for its closed restaurants in accordance with the provisions of FASB ASC Topic 360, “Property, Plant and Equipment.” As of December 29, 2014, the Company adopted ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changed the criteria for reporting discontinued operations and requires additional disclosures about discontinued operations. ASU 2014-08 requires that an entity report as a discontinued operation only a disposal that represents a strategic shift in operations that has a major effect on its operations and financial results. Therefore, individual restaurants which are closed after December 28, 2014 will not be classified as discontinued operations. Prior to the Company’s adoption of ASU 2014-08, when a restaurant was closed or the restaurant was either held for sale or abandoned, the restaurant’s operations were eliminated from the ongoing operations. Accordingly, the operations of such restaurants, net of applicable income taxes, are presented as discontinued operations and prior period operations of such restaurants, net of applicable income taxes, were reclassified. For fiscal years 2015, 2014 and 2013, all impairment charges, loss on disposal and remeasurement of lease liabilities along with restaurant sales, direct recurring costs and expenses and income taxes attributable to restaurants classified as discontinued operations have been aggregated to a single caption entitled loss from discontinued operations, net of tax benefit in the consolidated statements of income for all periods presented. Loss from discontinued operations, net of tax benefit is comprised of the following (in thousands): Fiscal Year 2015 2014 2013 Revenues Mitchell's Restaurants $ 4,343 $ 73,974 $ 75,925 Other Restaurants (3 ) 3,386 9,176 Total revenues 4,340 77,360 85,101 Costs and expenses Recurring costs and expenses Mitchell's Restaurants 5,196 73,852 75,396 Other Restaurants 175 4,115 9,594 Impairment losses Mitchell's Restaurants - 15,295 2,512 Other Restaurants - - 750 Loss on pending sale of Mitchell's Restaurants - 1,825 - Gain on settlement - Mitchell's Restaurants - - (437 ) Remeasurement of lease exit liability - - 1,716 Total costs and expenses 5,371 95,087 89,531 Loss before income taxes (1,031 ) (17,727 ) (4,430 ) Income tax benefit (869 ) (7,472 ) (2,426 ) Loss from discontinued operations, net of income taxes $ (162 ) $ (10,255 ) $ (2,004 ) In addition to the Mitchell’s Restaurants, discontinued operations for fiscal years 2015, 2014 and 2013 also includes the results of the other closed restaurants. Due to an expiring lease term, the Company closed the Company-owned Ruth’s Chris Steak House in Kansas City, MO in March 2014 after seventeen years of operation. Due to an expiring lease term, the Company closed the Company-owned Ruth’s Chris Steak House restaurant in Phoenix, AZ in March 2013 after 27 years of operation. As the closing of these restaurants coincided with the termination of the lease agreements, the Company did not incur significant expenses related to closing these locations. Due to local market conditions and disappointing financial results, the Company negotiated early terminations of the facility leases for the Stamford, CT Mitchell’s Fish Market restaurant, which closed in March 2014, and the Providence, RI Ruth’s Chris Steak House restaurant, which closed in September 2014. The Company recognized an impairment loss of $750 thousand in fiscal year 2013 related to the Stamford, CT Mitchell’s Fish Market restaurant. |
Note 4 - Discontinued Operation
Note 4 - Discontinued Operations | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (4) Discontinued Operations The Company accounts for its closed restaurants in accordance with the provisions of FASB ASC Topic 360, “Property, Plant and Equipment.” As of December 29, 2014, the Company adopted ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changed the criteria for reporting discontinued operations and requires additional disclosures about discontinued operations. ASU 2014-08 requires that an entity report as a discontinued operation only a disposal that represents a strategic shift in operations that has a major effect on its operations and financial results. Therefore, individual restaurants which are closed after December 28, 2014 will not be classified as discontinued operations. Prior to the Company’s adoption of ASU 2014-08, when a restaurant was closed or the restaurant was either held for sale or abandoned, the restaurant’s operations were eliminated from the ongoing operations. Accordingly, the operations of such restaurants, net of applicable income taxes, are presented as discontinued operations and prior period operations of such restaurants, net of applicable income taxes, were reclassified. For fiscal years 2015, 2014 and 2013, all impairment charges, loss on disposal and remeasurement of lease liabilities along with restaurant sales, direct recurring costs and expenses and income taxes attributable to restaurants classified as discontinued operations have been aggregated to a single caption entitled loss from discontinued operations, net of tax benefit in the consolidated statements of income for all periods presented. Loss from discontinued operations, net of tax benefit is comprised of the following (in thousands): Fiscal Year 2015 2014 2013 Revenues Mitchell's Restaurants $ 4,343 $ 73,974 $ 75,925 Other Restaurants (3 ) 3,386 9,176 Total revenues 4,340 77,360 85,101 Costs and expenses Recurring costs and expenses Mitchell's Restaurants 5,196 73,852 75,396 Other Restaurants 175 4,115 9,594 Impairment losses Mitchell's Restaurants - 15,295 2,512 Other Restaurants - - 750 Loss on pending sale of Mitchell's Restaurants - 1,825 - Gain on settlement - Mitchell's Restaurants - - (437 ) Remeasurement of lease exit liability - - 1,716 Total costs and expenses 5,371 95,087 89,531 Loss before income taxes (1,031 ) (17,727 ) (4,430 ) Income tax benefit (869 ) (7,472 ) (2,426 ) Loss from discontinued operations, net of income taxes $ (162 ) $ (10,255 ) $ (2,004 ) In addition to the Mitchell’s Restaurants, discontinued operations for fiscal years 2015, 2014 and 2013 also includes the results of the other closed restaurants. Due to an expiring lease term, the Company closed the Company-owned Ruth’s Chris Steak House in Kansas City, MO in March 2014 after seventeen years of operation. Due to an expiring lease term, the Company closed the Company-owned Ruth’s Chris Steak House restaurant in Phoenix, AZ in March 2013 after 27 years of operation. As the closing of these restaurants coincided with the termination of the lease agreements, the Company did not incur significant expenses related to closing these locations. Due to local market conditions and disappointing financial results, the Company negotiated early terminations of the facility leases for the Stamford, CT Mitchell’s Fish Market restaurant, which closed in March 2014, and the Providence, RI Ruth’s Chris Steak House restaurant, which closed in September 2014. The Company recognized an impairment loss of $750 thousand in fiscal year 2013 related to the Stamford, CT Mitchell’s Fish Market restaurant. |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | (5) Fair Value Measurements Fair value is defined under FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (Topic 820), as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Topic 820 also establishes a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels of inputs are: • Level 1—quoted prices (unadjusted) for an identical asset or liability in an active market. • Level 2—quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. • Level 3—unobservable and significant to the fair value measurement of the asset or liability. The following were used to estimate the fair value of each class of financial instruments: • The carrying amount of cash and cash equivalents, receivables, prepaid expenses, accounts payable and accrued expenses and other current liabilities are a reasonable estimate of their fair values due to their short duration. • Borrowings under the senior credit facility as of December 27, 2015 and December 28, 2014 have variable interest rates that reflect currently available terms and conditions for similar debt. The carrying amount of this debt is a reasonable estimate of its fair value (Level 2). The Company’s non-financial assets measured at fair value on a non-recurring basis as of the end of fiscal year 2014 were as follows (in thousands): Fair Value as of December 28, 2014 Significant Unobservable Inputs (Level 3) Total Losses on Impairment Valuation Method Long-lived assets held for sale $ 11,320 $ 11,320 $ 9,809 Market approach Fair Value as of December 28, 2014 Significant Unobservable Inputs (Level 3) Total Losses on Impairment Valuation Method Trademarks held for sale $ 2,847 $ 2,847 $ 7,311 Income approach Losses on these assets are recorded as loss on impairment in the accompanying consolidated statements of income. When the operating results of closed or sold restaurants are reclassified to discontinued operations, the impairment losses related to the assets of those closed or sold restaurants are also reclassified to discontinued operations. See Notes 6 and 7 for a description of the valuation techniques used to measure fair value of intangibles and long-lived assets, as well as . |
Note 6 - Goodwill, Franchise Ri
Note 6 - Goodwill, Franchise Rights and Trademarks | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | (6) Goodwill, Franchise Rights and Trademarks During the fourth quarter of each year, the Company completes an analysis to determine if goodwill and certain intangible assets are impaired as of the balance sheet date. The Company bases its fair value estimates on assumptions it believes to be reasonable, but which are inherently uncertain. During the fourth quarter of fiscal year 2015, the Company changed its testing date for determining whether goodwill and other intangible assets are impaired from the last day of the fiscal year to the last day of the Company’s 48 th Franchise Rights In accordance with FASB ASC Topic 350, owned franchise rights that have been determined to have indefinite lives must be reviewed for potential impairment annually and when triggering events are detected. No impairment charges related to franchise rights were recognized in fiscal years 2015, 2014 or 2013. To determine the fair value of acquired franchise rights, the Company used a multi-period excess earnings approach. This approach involves projecting after-royalty future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment, assembled workforce and customer relationships to arrive at excess earnings attributable to these franchise rights. The Company calculated the present value of cash flows generated from future excess earnings and determined that the fair values exceeded the financial statement carrying value as of December 27, 2015. Trademarks In accordance with FASB ASC Topic 350, owned trademarks that have been determined to have indefinite lives must be reviewed for potential impairment annually and when triggering events are detected. To determine the fair value of the Mitchell’s trademarks, including Mitchell’s Fish Market, Columbus Fish Market, Mitchell’s Steakhouse and Cameron’s Steakhouse, the Company used a relief-from-royalty valuation approach. This approach assumes that in lieu of ownership, a third party would be willing to pay a royalty in order to exploit the related benefits of these types of assets. This approach is dependent on a number of factors, including estimates of future revenue growth and trends, royalty rates in the category of intellectual property, discount rates and other variables. After the sale of the Mitchell’s Restaurants in January 2015, the Company no longer had a recorded asset for trademarks. As of December 28, 2014, the Mitchell’s trademarks were recorded as assets held for sale (lower of carrying amount or fair value, less costs to sell). As discussed in Note (3), during the third quarter of fiscal year 2014, a $7.3 million impairment loss related to the trademarks of the Mitchell’s Restaurants was recorded. During the fourth quarter of fiscal year 2013, a $400 thousand loss on impairment of an ancillary trademark not expected to be used was recorded. No impairment charge related to trademarks was recognized in fiscal year 2015. Goodwill No impairment charges related to goodwill were recognized in fiscal years 2015, 2014 or 2013. Goodwill increased $2.2 million during fiscal year 2014 due to the acquisition of the Austin, TX Ruth’s Chris Steak House restaurant. In performing the fiscal year 2015 evaluation of goodwill impairment under FASB ASC Topic 350-20, the Company compared the carrying value of the reporting unit, which is considered to be the steakhouse operating segment, to its fair value. Consistent with the valuation of restaurant operations, the Company utilized a multiple of EBITDA to approximate the fair value of the reporting unit for purposes of completing Step 1 of the evaluation. The Company considered EBITDA multiples of publicly held companies, including its own, as well as recent industry acquisitions. For reporting units whose estimated fair value exceeded its carrying value, no impairment is recorded. As of November 29, 2015, the estimated fair values of all reporting units substantially exceeded their respective carrying values. If a reporting unit’s fair value did not exceed its carrying value as the balance sheet date, the Company would have completed Step 2 of the evaluation by comparing the implied fair value of goodwill with the net asset value of the reporting unit. The Company would have calculated the implied fair value by allocating the fair value of a reporting unit to all of its assets and liabilities as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the unit. The financial statement carrying values of the Company’s franchise rights, trademarks and goodwill were as follows (amounts in thousands): Franchise Rights Gross Goodwill Accumulated Goodwill Impairment Losses Net Carrying Value of Goodwill Balance as of December 28, 2014 $ 32,237 $ 57,665 $ (33,372 ) $ 24,293 Balance as of December 27, 2015 $ 32,200 $ 34,851 $ (10,558 ) $ 24,293 Any losses are included in “loss on impairment” in the accompanying consolidated statements of income. When the operating results of closed or sold restaurants are reclassified to discontinued operations, the impairment losses related to the assets of those closed or sold restaurants are also reclassified to discontinued operations. |
Note 7 - Property and Equipment
Note 7 - Property and Equipment, Net | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | (7) Property and Equipment, net Property and equipment consists of the following (amounts in thousands): December 27, December 28, 2015 2014 Land $ 917 $ 917 Building and building improvements 24,451 24,175 Equipment 33,931 31,458 Computer equipment 10,069 9,735 Furniture and fixtures 17,943 16,583 Automobiles 27 27 Leasehold improvements 117,364 108,061 Construction-in-progress 8,644 4,106 213,346 195,062 Less accumulated depreciation (125,362 ) (114,708 ) $ 87,984 $ 80,354 As discussed in Note (3), during the third quarter of fiscal year 2014, the Company recognized an $8.0 million impairment loss on long-lived assets (primarily leasehold improvements) related to Mitchell’s Restaurants. In addition, during the fourth quarter of fiscal year 2014, the Company recognized a $1.8 million loss on the pending sale related to Mitchell’s Restaurants. Impairment losses are reclassified to discontinued operations when the restaurant is closed, sold or held for sale. |
Note 8 - Long-term Debt
Note 8 - Long-term Debt | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (8) Long-term Debt Long-term debt consists of the following (amounts in thousands): December 27, December 28, 2015 2014 Senior Credit Facility: Revolving credit facility $ - $ 13,000 Less current maturities - - $ - $ 13,000 As of December 27, 2015, the Company had no outstanding indebtedness under its senior credit with approximately $95.8 million of borrowings available, net of outstanding letters of credit of approximately $4.2 million. As of December 27, 2015, the weighted average interest rate on the Company’s outanding letters of credit was 2.13%. In addition, the fee on the Company’s unused senior credit facility was 0.2%. On February 14, 2012, the Company entered into a Second Amended and Restated Credit Agreement with Wells Fargo Bank, as administrative agent, and certain other lenders (the Amended and Restated Credit Agreement). The Amended and Restated Credit Agreement allows for loan advances plus outstanding letters of credit of up to $100.0 million to be outstanding at any time that the conditions for borrowings are met. The Amended and Restated Credit Agreement has a maturity date of February 14, 2017. The Amended and Restated Credit Agreement sets the interest rates applicable to borrowings based on the Company’s actual leverage ratio, ranging (a) from 2.00% to 2.75% above the applicable LIBOR rate or (b) at the Company’s option, from 1.00% to 1.75% above the applicable base rate. The Amended and Restated Credit Agreement contains customary covenants and restrictions, including, but not limited to: (1) prohibitions on incurring additional indebtedness and from guaranteeing obligations of others; (2) prohibitions on creating, incurring, assuming or permitting to exist any lien on or with respect to any property or asset; (3) limitations on the Company’s ability to enter into joint ventures, acquisitions and other investments; (4) prohibitions on directly or indirectly creating or becoming liable with respect to certain contingent liabilities; and (5) restrictions on directly or indirectly declaring, ordering, paying, or making any restricted junior payments. The Amended and Restated Credit Agreement requires the Company to maintain a fixed charge coverage ratio of 1.25:1.00 and the maximum leverage ratio of 2.50:1.00. The agreement was amended in May 2013 to reset the limit applicable to junior stock payments, which include both cash dividend payments and repurchase of common and preferred stock. Junior stock payments made subsequent to December 30, 2012 through the end of the agreement are limited to $100 million; $58.9 million of such payments had been made as of December 27, 2015. The Company’s obligations under the Amended and Restated Credit Agreement are guaranteed by each of its existing and future subsidiaries and are secured by substantially all of its assets and a pledge of the capital stock of its subsidiaries. The Amended and Restated Credit Agreement includes customary events of default. As of December 27, 2015, the Company was in compliance with the covenants under the Amended and Restated Credit Agreement. |
Note 9 - Leases
Note 9 - Leases | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | (9) Leases At December 27, 2015, all of the Company-owned Ruth’s Chris Steak House restaurants operated in leased premises, with the exception of the restaurants in Columbus, OH and Ft. Lauderdale, FL, which were owned properties, and the restaurants in Anaheim, CA, Lake Mary, FL, Princeton, NJ and South Barrington, IL, which operate on leased land. The leases generally provide for minimum annual rental payments and are subject to escalations based, in some cases, upon increases in the Consumer Price Index, real estate taxes and other costs. In addition, certain leases contain contingent rental provisions based upon the sales at the underlying restaurants. Certain leases also provide for rent deferral during the initial term of such lease and/or scheduled minimum rent increases during the terms of the leases. For financial reporting purposes, rent expense is recorded on a straight-line basis over the life of the lease. Accordingly, included in liabilities in the accompanying consolidated balance sheets at December 27, 2015 and December 28, 2014 are accruals related to such rent deferrals and the pro rata portion of scheduled rent increases of approximately $20.3 million and $20.0 million, respectively, net of the current portion included in other current liabilities $1.9 million and $2.0 million, respectively. The Company also leases certain restaurant-related equipment under non-cancellable operating lease agreements with third parties, which are included with leased premises in future minimum annual rental commitments. Future minimum annual rental commitments under operating leases as of December 27, 2015 are as follows (in thousands): Company 2016 $ 21,120 2017 20,072 2018 18,514 2019 17,265 2020 15,865 Thereafter 117,325 $ 210,160 The recognized financial accounting lease liabilities pertaining to the Mitchell’s Restaurants are included in the liabilities associated with assets held for sale caption as of December 28, 2014. Pursuant to the terms of the Agreement, upon closing of the sale of the Mitchell’s Restaurants, Landry’s assumed the lease obligations of the Mitchell’s Restaurants. However, the Company has guaranteed Landry’s lease obligations aggregating $37.8 million under nine of the leases. The Company did not record a financial accounting liability for the lease guarantees, because the likelihood of Landry’s defaulting on the lease agreements was deemed to be remote. Landry’s also indemnified the Company in the event of a default under any of the leases. The Company did record a $250 thousand liability for its letter of credit obligation related to one of the leases. The above table does not include potential lease obligations for the Mitchell’s Restaurants. Rental expense consists of the following and is included in restaurant operating expenses in the accompanying consolidated statements of income (in thousands): Fiscal Year 2015 2014 2013 Minimum rentals $ 18,846 $ 17,647 $ 16,424 Contingent rentals 2,877 2,558 2,456 $ 21,723 $ 20,205 $ 18,880 |
Note 10 - Franchise Operations
Note 10 - Franchise Operations | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Franchise Income [Text Block] | (10) Franchise Operations The Company franchises Ruth’s Chris Steak House restaurants. The Company executes franchise agreements for each franchisee-owned restaurant, which sets out the terms of its arrangement with the franchisee. The franchise agreements typically require the franchisee to pay an initial, non-refundable fee and continuing fees based upon a percentage of sales. The Company collects ongoing royalties of 5% of sales at franchisee-owned restaurants plus a 1% advertising fee applied to national advertising expenditures. The Company is not required to perform any services for the ongoing royalties and thus these royalties are recognized when the royalties are due from the franchisee on a monthly basis. These ongoing royalties are reflected in the accompanying consolidated statements of income as franchise income. The 1% advertising fee is not recorded as revenue, but rather is recorded as a liability against which specified advertising and marketing costs are charged. The Company executes an area development agreement with franchisees that gives each franchisee exclusive rights to develop a specific number of restaurants within a specified area. The Company receives a development fee at the time that an area development agreement is executed. The development fee is recognized as revenue as franchisee-owned restaurants are opened. The Company also executes separate, site-specific franchise agreements for each restaurant developed by a franchisee under an area development agreement. The Company charges a site-specific fee at the time the franchise agreement is executed. This fee is related to construction assistance and consulting regarding operating procedures and purchasing. These services are performed prior to the restaurant opening. The Company recognizes the site-specific franchise fee when the related restaurant opens. The Company currently has 80 franchisee-owned Ruth’s Chris Steak House restaurants, including 20 international restaurants. Three new franchisee-owned restaurants opened in fiscal year 2015 including the Ann Arbor, MI and Charleston, SC which both opened in May and one in San Antonio, TX in November. During fiscal year 2014 three new franchisee-owned restaurants were opened - one in Boise, ID in February, one in Panama City, Panama in September and one in Taipei, Taiwan in December. During fiscal year 2013, four new Ruth’s Chris Steak House franchise locations opened, including a second franchisee-owned restaurant located in San Juan in April , a franchisee-owned restaurant located in Chattanooga, TN in July, a location in Las Vegas, NV operating under a license agreement with the Company and a franchisee-owned restaurant located in Shanghai in December. One of two franchisee-owned restaurants located in Dubai was closed in July 2013. The franchisee-owned Ruth’s Chris Steak House restaurant in San Salvador, El Salvador closed subsequent to the Company’s fiscal year 2015. In February 2014, the Company acquired a franchisee-owned restaurant located in Austin, TX. No franchisee-owned restaurants were sold or purchased during fiscal years 2015 or 2013. Franchise income includes opening and development fees and income generated from existing franchisee-owned restaurants. The Company classifies franchise income separately in the consolidated statements of income (in thousands): Fiscal Year 2015 2014 2013 Franchise income: Income from existing franchise locations $ 16,361 $ 15,598 $ 14,612 Opening and development fee income 300 165 400 Total franchise income: $ 16,661 $ 15,763 $ 15,012 |
Note 11 - Gain on Settlements,
Note 11 - Gain on Settlements, Commitments and Contingencies | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (11) Gain on Settlements, Commitments and Contingencies During the third quarter of fiscal year 2013, the Company settled two loss claims asserted by the Company which previously arose and recognized an aggregate gain of $2.2 million, net of fees incurred. Approximately $437 thousand of the gain related to Mitchell’s Restaurants and has been reclassified to discontinued operations. The majority of the gain pertained to compensation for the Company’s lost operating income awarded by the claims administrator pursuant to the settlement agreement reached in litigation related to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. The Company is subject to various claims, possible legal actions and other matters arising in the normal course of business. Management does not expect disposition of these other matters to have a material adverse effect on the financial position, results of operations or liquidity of the Company. The Company expenses legal fees as incurred. The legislation and regulations related to tax and unclaimed property matters are complex and subject to varying interpretations by both government authorities and taxpayers. The Company remits a variety of taxes and fees to various governmental authorities, including excise taxes, property taxes, sales and use taxes, and payroll taxes. The taxes and fees remitted by the Company are subject to review and audit by the applicable governmental authorities which could assert claims for additional assessments. Although management believes that the tax positions are reasonable and consequently there are no accrued liabilities for claims which may be asserted, various taxing authorities may challenge certain of the positions taken by the Company which may result in additional liability for taxes and interest. These tax positions are reviewed periodically based on the availability of new information, the lapsing of applicable statutes of limitations, the conclusion of tax audits, the identification of new tax contingencies, or the rendering of relevant court decisions. An unfavorable resolution of assessments by a governmental authority could negatively impact the Company’s results of operations and cash flows in future periods. The Company is subject to unclaimed or abandoned property (escheat) laws which require the Company to turn over to certain state governmental authorities the property of others held by the Company that has been unclaimed for specified periods of time. The Company is subject to audit by individual U.S. states with regard to its escheatment practices. During fiscal year 2012, the Company agreed to pay $2.5 million to settle certain potential liabilities pertaining to unclaimed property returns which had not been filed timely, which was paid during the first quarter of fiscal year 2013. Prior to fiscal year 2014 the Company had not filed unclaimed property returns. During fiscal year 2014, the Company filed unclaimed property returns, provided additional information to the applicable governmental entities and remitted amounts due for unclaimed property liabilities. The settlement of unclaimed property liabilities did not have a material adverse impact on the financial position, results of operations or liquidity of the Company. The Company sells a considerable number of gift cards, which are issued and administered by a third party gift card issuer and service provider, consistent with common retail industry practice. The third party gift card issuer is paid a net fee for its services by the Company. The third party gift card issuer and service provider, as well as a number of other restaurant companies, retailers and gift card issuers, were named as defendants in a qui tam action filed under seal in June 2013 by William French on behalf of the State of Delaware in the Superior Court of Delaware in and for New Castle County. The complaint alleges that the Company and the other defendants intentionally failed to report and remit money with respect to unused gift cards to the State of Delaware under the Delaware Escheats Law, and knowingly made, used or caused to be made or used, false statements and records to conceal, avoid or decrease an obligation to pay or transmit such money to Delaware in violation of the Delaware False Claims and Reporting Act (DFCRA). The complaint further alleges that the amount of money that the Company should have escheated to Delaware is approximately $30 million. The complaint seeks monetary damages (including treble damages under the DFCRA), penalties, and attorneys’ fees and costs. The case was unsealed in March 2014, at which time the court also granted the State of Delaware’s motion to intervene. In early 2015, the Company and the other defendants jointly filed a motion to dismiss the case on various grounds. In November 2015, the motion was granted in part and denied in part. The Company filed its answer to the complaint in December 2015. All parties to the case are now in the process of seeking discovery. The deadline for completing fact discovery is March 2017. The Company believes it is in compliance with the Delaware Escheats Law and has not violated the DFCRA. The Company has been vigorously defending the action, and intends to continue to do so. The Company currently buys a majority of its beef from two suppliers. Although there are a limited number of beef suppliers, management believes that other suppliers could provide similar product on comparable terms. A change in suppliers, however, could cause supply shortages and a possible loss of sales, which would affect operating results adversely. |
Note 12 - Shareholders' Equity
Note 12 - Shareholders' Equity | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | (12) Shareholders’ Equity The holders of the Company’s common stock are entitled to one vote per share on all matters to be voted on by the Company’s shareholders. In May 2013, the Company announced that the Board of Directors approved a share repurchase program. Under the program the Company was authorized from time to time purchase up to $30 million of its outstanding common stock. During fiscal year 2014, 866,410 shares were repurchased under this program at an aggregate cost of $10.3 million or an average cost of $11.87 per share. The share repurchases were made at the Company’s discretion, within pricing parameters set by the Board of Directors, in the open market. On November 17, 2014, the Company announced that its Board of Directors has approved a new share repurchase program under which the Company is authorized to repurchase up to $50 million of outstanding common stock from time to time in the open market, through negotiated transactions or otherwise, depending on share price, market conditions and other factors. The new share repurchase program replaces the Company’s previous share repurchase program announced in May 2013, which has been terminated. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of its shares. The program has no termination date. During the fiscal year 2015, 1,483,085 shares were repurchased at an aggregate cost of $23.8 million or an average cost of $16.01 per share. As of December 27, 2015, $21.1 million remained available for future purchases under the new program. Share repurchases under both programs were accounted for under the cost method and all repurchased shares were retired and cancelled. The excess of the purchase price over the par value of the shares was recorded as a reduction in additional paid-in capital. The Company’s Board of Directors declared the following dividends during the periods presented (amounts in thousands, except per share amounts): Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2013: May 3, 2013 $ 0.04 May 16, 2013 $ 1,430 May 30, 2013 July 24, 2013 $ 0.04 August 15, 2013 $ 1,424 August 29, 2013 October 22, 2013 $ 0.04 November 14, 2013 $ 1,424 November 26, 2013 Fiscal Year 2014: February 21, 2014 $ 0.05 March 13, 2014 $ 1,798 March 27, 2014 April 22, 2014 $ 0.05 May 15, 2014 $ 1,798 May 29, 2014 July 23, 2014 $ 0.05 August 14, 2014 $ 1,778 August 28, 2014 October 29, 2014 $ 0.05 November 20, 2014 $ 1,764 December 4, 2014 Fiscal Year 2015: February 13, 2015 $ 0.06 February 26, 2015 $ 2,082 March 12, 2015 April 21, 2015 $ 0.06 May 14, 2015 $ 2,090 May 28, 2015 July 22, 2015 $ 0.06 August 13, 2015 $ 2,108 August 27, 2015 October 30, 2015 $ 0.06 November 19, 2015 $ 2,069 December 3, 2015 Subsequent to the end of fiscal year 2015, the Company’s Board of Directors declared a $0.07 per share cash dividend ($2.4 million in total) payable on March 10, 2016. Dividends are paid to holders of common stock and restricted stock. |
Note 13 - Employee Benefit Plan
Note 13 - Employee Benefit Plan | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | (13) Employee Benefit Plan In 2000, the Company established a 401(k) and Profit Sharing Plan. The Company may make matching contributions in an amount determined by the Board of Directors. In addition, the Company may contribute each period, at its discretion, an additional amount from profits. The Company matches the employees’ contributions at year end. Employees vest in the Company’s contributions based upon their years of service. The Company’s expenses relating to matching contributions were approximately $305 thousand, $307 thousand and $305 thousand for fiscal years 2015, 2014 and 2013, respectively. |
Note 14 - Incentive Stock Optio
Note 14 - Incentive Stock Option Plans | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (14) Incentive and Stock Option Plans As of December 27, 2015, the Company had the following share-based compensation plans. 2005 Long-Term Equity Incentive Plan In connection with the initial public offering, the Company adopted the Ruth’s Chris Steak House, Inc. 2005 Long-Term Equity Incentive Plan (the 2005 Equity Incentive Plan), which allows the Company’s Board of Directors to grant stock options, restricted stock, restricted stock units, deferred stock units and other equity-based awards to directors, officers, key employees and other key individuals performing services for the Company. Initially, 2.4 million shares were authorized for issuance under the 2005 Equity Incentive Plan. The 2005 Equity Incentive Plan provides for granting of options to purchase shares of common stock at an exercise price not less than the fair value of the stock on the date of grant. Options are exercisable, and restricted stock vests, at various periods ranging from one to five years from date of grant. Effective May 22, 2008, the 2005 Equity Incentive Plan was amended, with stockholder approval, to increase the number of shares authorized for issuance under the plan by 1.5 million shares. The Amended and Restated 2005 Equity Incentive Plan was adopted on October 26, 2012, and the number of shares authorized for issuance under the Amended and Restated 2005 Long-Term Equity Incentive Plan was increased by 2.0 million shares at the 2013 annual meeting of stockholders. Under the Amended and Restated 2005 Equity Incentive Plan there are 1.4 million shares of common stock issuable upon exercise of currently outstanding options and restricted stock awards at December 27, 2015, and 2.1 million shares available for future grants. During fiscal year 2013, the Company issued 247,225 shares of restricted stock to certain employees and executive officers from available shares under the Amended and Restated 2005 Equity Incentive Plan. The shares were issued with a grant date fair market value equal to the closing price of the stock on the date of the grants. Of the 247,225 shares of restricted stock issued during 2013, 155,441 shares vest on the second anniversary of the grant date and the remaining shares vest one-third on each of the three anniversary dates following the grant date. During fiscal year 2014, the Company issued 275,794 shares of restricted stock to certain employees and executive officers from available shares under the Amended and Restated 2005 Equity Incentive Plan. The shares were issued with a grant date fair market value equal to the closing price of the stock on the date of the grants. Of the 275,794 shares of restricted stock issued during 2014, 125,932 shares vest on the second anniversary of the grant date and the remaining shares vest one-third on each of the three anniversary dates following the grant date. During fiscal year 2015, the Company issued 893,662 shares of restricted stock to certain employees and executive officers from available shares under the Amended and Restated 2005 Equity Incentive Plan. The shares were issued with a grant date fair market value equal to the closing price of the stock on the date of the grants. Of the 893,662 shares of restricted stock issued during 2015, 54,095 shares vest on the second anniversary of the grant date, 214,567 shares will vest one-third on each of the three anniversary dates following the grant date, 300,000 shares will vest at 25% annually with the first vesting date occurring on the anniversary date in 2017 and ending on the anniversary date in 2020 and 325,000 shares will vest at 25% annually with the first vesting date occurring on the anniversary date in 2018 and ending on the anniversary date in 2021. The Company recorded $4.1 million, $2.8 million and $2.3 million in total stock option and restricted stock compensation expense during fiscal years 2015, 2014 and 2013, respectively that was classified primarily as general and administrative costs. The Company recognized $0.7 million, $2.1 million and $0.9 million in income tax benefit related to stock-based compensation plans during fiscal years 2015, 2014 and 2013, respectively. As of December 27, 2015, the Company had a $7.9 million hypothetical Additional Paid-in Capital Pool (APIC Pool) balance. The hypothetical APIC Pool balance represents the tax benefit of the cumulative excess of corporate income tax deductions over financial accounting compensation expense recognized for equity based compensation awards which have fully vested. The hypothetical APIC Pool will increase or decrease each year, dependent upon both the vesting of restricted stock awards and the stock options exercised and/or cancelled. Shortfalls generated by the excess of compensation expense for financial accounting purposes over the corresponding corporate income tax deduction will be charged to the hypothetical APIC Pool balance rather than income tax expense. Once the hypothetical APIC Pool is fully depleted, the tax effect of any excess of financial accounting expense over the corresponding corporate income tax deduction beyond that point will be treated as income tax expense in the consolidated statements of income. A summary of the status of non-vested restricted stock as of December 27, 2015 and changes during fiscal year 2015 is presented below. 2015 Shares Weighted-Average Grant-Date Fair Value Per Share Non-vested shares at beginning of year 569,275 $ 10.46 Granted 893,662 15.74 Vested (312,852 ) 9.09 Non-vested shares at end of year 1,150,085 $ 14.93 As of December 27, 2015, there was $13.1 million of total unrecognized compensation cost related to 1,150,085 shares of non-vested restricted stock. This cost is expected to be recognized over a weighted-average period of approximately 4.04 years. The total grant date fair value of restricted stock vested in fiscal years 2015, 2014 and 2013 was $2.8 million, $1.9 million and $3.3 million, respectively. The following table summarizes stock option activity for fiscal year 2015: 2015 Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value ($000's) Outstanding at beginning of year 439,880 $ 13.12 Granted - - Exercised (72,875 ) 3.46 Forfeited (104,257 ) 17.78 Outstanding at end of year 262,748 $ 13.88 1.69 $ 1,107,544 Options exercisable at year end 262,748 $ 13.88 1.69 $ 1,107,544 As of December 27, 2015, there was no unrecognized compensation cost related to non-vested stock options. The total intrinsic value of options exercised in fiscal years 2015, 2014 and 2013 was $863 thousand, $6.3 million and $273 thousand, respectively. During fiscal years 2015, 2014 and 2013, the Company received $250 thousand, $183 thousand and $208 thousand, respectively, in cash related to the exercise of options. The exercise of shares were fulfilled from shares reserved for issuance under the Amended and Restated 2005 Equity Incentive Plan and resulted in an increase in issued shares outstanding. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (15) Income Taxes Total income tax expense (benefit) for fiscal years 2015, 2014 and 2013 was (amounts in thousands): 2015 2014 2013 Income from continuing operations $ 14,168 $ 11,830 $ 10,744 Loss from discontinued operations (869 ) (7,472 ) (2,426 ) Total consolidated income tax expense $ 13,299 $ 4,358 $ 8,318 Income tax expense from continuing operations consists of the following: Current Deferred Total Year ended December 27, 2015 U.S. Federal $ 14,692 $ (3,445 ) $ 11,247 State 2,697 (120 ) 2,577 Foreign 344 - 344 $ 17,733 $ (3,565 ) $ 14,168 Year ended December 28, 2014 U.S. Federal $ 3,475 $ 6,447 $ 9,922 State 562 961 1,523 Foreign 385 - 385 $ 4,422 $ 7,408 $ 11,830 Year ended December 29, 2013 U.S. Federal $ 2,056 $ 6,708 $ 8,764 State 136 1,495 1,631 Foreign 349 - 349 $ 2,541 $ 8,203 $ 10,744 Income tax expense differs from amounts computed by applying the federal statutory income tax rate to income from continuing operations before income taxes as follows (amounts in thousands): 2015 2014 2013 Income tax expense at statutory rates $ 15,517 $ 13,489 $ 12,333 Increase (decrease) in income taxes resulting from: State income taxes at state statutory rate, net of federal benefit 2,010 1,813 1,444 Federal FICA tip credit net benefit (3,124 ) (2,814 ) (2,634 ) State employment tax credits generated in prior years (60 ) (331 ) (623 ) Increase to valuation allowance 75 - 243 Other (250 ) (327 ) (19 ) $ 14,168 $ 11,830 $ 10,744 Effective tax rate 32.0 % 30.7 % 30.5 % The Company utilizes the federal FICA tip credit to reduce its periodic federal income tax expense. A restaurant company employer may claim a credit against the company’s federal income taxes for FICA taxes paid on certain tip wages (the FICA tip credit). The credit against income tax liability is for the full amount of eligible FICA taxes. Employers cannot deduct from taxable income the amount of FICA taxes taken into account in determining the credit. Income taxes applicable to discontinued operations are comprised of (a) taxes calculated at the composite federal and state statutory tax rate times the pre-tax loss plus (b) the FICA tip credit benefit attributable to the restaurant sales of the Mitchell’s Restaurants. A reconciliation of the U.S. statutory tax rate to the effective tax rate applicable to discontinued operations for fiscal years 2015, 2014 and 2013 follows (amounts in thousands): 2015 2014 2013 Income tax benefit at statutory rates $ (361 ) $ (6,204 ) $ (1,550 ) Increase (decrease) in income taxes resulting from: State income taxes at state statutory rate, net of federal impact (411 ) (701 ) (198 ) Other, primarily federal FICA tip credit net benefit (97 ) (567 ) (678 ) $ (869 ) $ (7,472 ) $ (2,426 ) Effective tax rate 84.3 % 42.2 % 54.8 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets are presented below (amounts in thousands): 2015 2014 Deferred tax assets: Accounts payable and accrued expenses $ 8,222 $ 3,775 Deferred rent 8,655 9,911 Net state operating loss carryforwards 3,281 2,923 Tax credit carryforwards 9,339 6,236 Property and equipment 5,098 10,589 Other 209 335 Total gross deferred tax assets 34,804 33,769 Less valuation allowance (979 ) (947 ) Net deferred tax assets 33,825 32,822 Deferred tax liabilities: Intangible assets (14,516 ) (3,993 ) Total gross deferred tax liabilities (14,516 ) (3,993 ) Net deferred tax assets $ 19,309 $ 28,829 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of the net deferred tax assets. As of December 27, 2015, the Company has state net operating loss carry-forwards of $85.2 million and federal and state tax credit carry-forwards of $9.3 million, which are available to offset federal and state taxable income with the last of such benefit expiring in 2035 . As of December 27, 2015, the Company’s gross unrecognized tax benefits totaled approximately $607 thousand, of which $398 thousand, if recognized, would impact the effective tax rate. The Company does not anticipate there will be any material changes in the unrecognized tax benefits within the next 12 months. Our continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows (amounts in thousands): Unrecognized tax benefits balance at December 28, 2014 $ 958 Gross increases for tax positions of prior years 107 Settlements (458 ) Unrecognized tax benefits balance at December 27, 2015 $ 607 The Company files consolidated and separate income tax returns in the United States Federal jurisdiction and many state jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal or state and local income tax examinations for fiscal years before 2011. |
Note 16 - Earnings Per Share
Note 16 - Earnings Per Share | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (16) Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net income by the diluted weighted average shares of common stock outstanding during each period. Potentially dilutive securities include shares of non-vested stock awards. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Stock awards are excluded from the calculation of diluted earnings per share in the event they are antidilutive. The following table sets forth the computation of basic earnings per common share (amounts in thousands, except share and per share data): 2015 2014 2013 Income from continuing operations $ 30,166 $ 26,710 $ 24,493 Loss from discontinued operations, net of income taxes (162 ) (10,255 ) (2,004 ) Net income $ 30,004 $ 16,455 $ 22,489 Shares: Weighted average number of common shares outstanding - basic 34,018,582 34,955,760 34,761,160 Basic earnings per common share: Continuing operations $ 0.88 $ 0.76 $ 0.71 Discontinued operations 0.00 (0.29 ) (0.06 ) Basic earnings per common share $ 0.88 $ 0.47 $ 0.65 Diluted earnings (loss) per share for fiscal years 2015, 2014 and 2013 excludes 46,117 stock options and restricted shares at a weighted-average price of $18.84, 153,613 stock options and restricted shares at a weighted-average price of $18.70 and 202,824 stock options and restricted shares at a weighted-average price of $18.67, respectively, which were outstanding during the periods but were anti-dilutive. The following table sets forth the computation of diluted earnings per share (amounts in thousands, except share and per share data): 2015 2014 2013 Income from continuing operations $ 30,166 $ 26,710 $ 24,493 Loss from discontinued operations, net of income taxes (162 ) (10,255 ) (2,004 ) Net income $ 30,004 $ 16,455 $ 22,489 Shares: Weighted average number of common shares outstanding - basic 34,018,582 34,955,760 34,761,160 Dilutive shares 415,825 459,723 1,023,270 Weighted-average number of common shares outstanding - diluted 34,434,407 35,415,483 35,784,430 Diluted earnings per common share: Continuing operations $ 0.87 $ 0.75 $ 0.69 Discontinued operations 0.00 (0.29 ) (0.06 ) Diluted earnings per common share $ 0.87 $ 0.46 $ 0.63 |
Note 17 - Segment Information
Note 17 - Segment Information | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (17) Segment Information The Company has two reportable segments – the Company-owned steakhouse segment and the franchise operations segment. Previously reported segment information has been revised to exclude the Mitchell’s Restaurants. The Company does not rely on any major customers as a source of revenue. The Company-owned Ruth’s Chris Steak House restaurants, all of which are located in North America, operate within the full-service dining industry, providing similar products to similar customers. Revenues are derived principally from food and beverage sales. As of December 27, 2015, (i) the Company-owned steakhouse restaurant segment included 67 Ruth’s Chris Steak House restaurants and one Ruth’s Chris Steak House restaurant operating under a management agreement and (ii) the franchise operations segment included 80 franchisee-owned Ruth’s Chris Steak House restaurants. Segment profits for the Company-owned steakhouse restaurant segments equal segment revenues less segment expenses. Segment revenues for the Company-owned steakhouse restaurants include restaurant sales, management agreement income and other restaurant income. Gift card breakage revenue is not allocated to operating segments. Not all operating expenses are allocated to operating segments. Segment expenses for the Company-owned steakhouse segment include food and beverage costs and restaurant operating expenses. No other operating costs are allocated to the segments for the purpose of determining segment profits because such costs are not directly related to the operation of individual restaurants. The accounting policies applicable to each segment are consistent with the policies used to prepare the consolidated financial statements. The profit of the franchise operations segment equals franchise income, which consists of franchise royalty fees and franchise opening fees. No costs are allocated to the franchise operations segment. Segment information related to the Company’s two reportable business segments follows. Fiscal Year 2015 2014 2013 (Dollar amounts in thousands) Revenues: Company-owned steakhouse restaurants $ 354,398 $ 327,731 $ 306,539 Franchise operations 16,661 15,763 15,012 Unallocated other revenue and revenue discounts 2,374 2,603 803 Total revenues $ 373,433 $ 346,097 $ 322,354 Segment profits: Company-owned steakhouse restaurants $ 80,450 $ 68,230 $ 67,489 Franchise operations 16,661 15,763 15,012 Total segment profit 97,111 83,993 82,501 Unallocated operating income 2,374 2,603 803 Marketing and advertising expenses (10,925 ) (10,076 ) (9,341 ) General and administrative costs (30,242 ) (24,311 ) (27,808 ) Depreciation and amortization expenses (12,520 ) (10,917 ) (10,229 ) Pre-opening costs (1,032 ) (1,630 ) (691 ) Gain on settlements, net - - 1,719 Interest expense, net (790 ) (1,159 ) (1,640 ) Other income (expense) 358 37 (77 ) Income from continuing operations before income tax expense $ 44,334 $ 38,540 $ 35,237 Capital expenditures: Company-owned steakhouse restaurants $ 18,934 $ 14,867 $ 11,242 Corporate assets 1,133 1,097 1,723 Mitchell's Restaurants 225 1,401 2,346 Total capital expenditures $ 20,292 $ 17,365 $ 15,311 December 27, December 28, 2015 2014 (Dollar amounts in thousands) Total assets: Company-owned steakhouse restaurants $ 168,766 $ 155,757 Franchise operations 2,444 2,151 Corporate assets - unallocated 7,828 16,711 Deferred income taxes - unallocated 19,309 28,829 Mitchell's Restaurants 250 15,119 Total assets $ 198,597 $ 218,567 |
Note 18 - Supplemental Consolid
Note 18 - Supplemental Consolidated Financial Statement Information | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Additional Financial Information Disclosure [Text Block] | (18) Supplemental Consolidated Financial Statement Information (a) Accounts Receivable, net Accounts receivable, net consists of the following (amounts in thousands): Accounts receivable December 27, December 28, 2015 2014 Bank credit card receivables $ 11,417 $ 11,262 Landlord contributions 396 443 Franchise fees 2,306 2,116 Trade 751 682 Refundable income tax - 2,335 Receivable from gift card issuances 929 2,216 Other 3,434 2,164 Allowance for doubtful accounts (732 ) (760 ) $ 18,501 $ 20,458 (b) Other Assets Other assets consist of the following (amounts in thousands): Other assets December 27, December 28, 2015 2014 Deposits $ 702 $ 764 Deferred financing costs, net 481 901 Other 33 39 $ 1,216 $ 1,704 |
Note 19 - Quarterly Financial D
Note 19 - Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | (19) Quarterly Financial Data (Unaudited) Summarized unaudited quarterly financial data (amounts in thousands, except per share information): Quarter Ended March 29, June 28, September 27, December 27, 2015 2015 2015 2015 Total Total revenues $ 97,344 $ 91,049 $ 80,292 $ 104,747 $ 373,433 Cost and expenses (81,136 ) (79,645 ) (76,137 ) (91,750 ) (328,667 ) Operating income 16,208 11,404 4,155 12,997 44,766 Interest expense, net (226 ) (174 ) (188 ) (202 ) (790 ) Debt issuance costs written off 15 16 9 318 358 Income from continuing operations before income tax expense 15,997 11,246 3,976 13,113 44,334 Income tax expense 5,229 3,577 1,338 4,023 14,168 Income from continuing operations 10,768 7,669 2,638 9,090 30,166 Discontinued operations, net of income tax (357 ) (153 ) (73 ) 420 (162 ) Net income $ 10,411 $ 7,516 $ 2,565 $ 9,510 $ 30,004 Basic earnings per share: Continuing operations $ 0.31 $ 0.22 $ 0.08 $ 0.27 $ 0.88 Discontinued operations (0.01 ) 0.00 0.00 0.01 0.00 Basic earnings per share $ 0.30 $ 0.22 $ 0.08 $ 0.28 $ 0.88 Diluted earnings per share: Continuing operations $ 0.31 $ 0.22 $ 0.08 $ 0.27 $ 0.87 Discontinued operations (0.01 ) 0.00 0.00 0.01 0.00 Diluted earnings per share $ 0.30 $ 0.22 $ 0.08 $ 0.28 $ 0.87 Dividends declared per common share $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.24 Quarter Ended March 30, June 29, September 28, December 28, 2014 2014 2014 2014 Total Total revenues $ 90,354 $ 83,006 $ 73,795 $ 98,941 $ 346,097 Cost and expenses (76,400 ) (73,172 ) (69,833 ) (87,029 ) (306,435 ) Operating income 13,954 9,834 3,962 11,912 39,662 Interest expense, net (287 ) (298 ) (297 ) (278 ) (1,159 ) Other 9 12 5 12 37 Income from continuing operations before income tax expense 13,676 9,548 3,670 11,646 38,540 Income tax expense 4,686 2,880 1,472 2,791 11,830 Income from continuing operations 8,990 6,668 2,198 8,855 26,710 Discontinued operations, net of income tax (125 ) 236 (9,496 ) (870 ) (10,255 ) Net income (loss) $ 8,865 $ 6,904 $ (7,298 ) $ 7,985 $ 16,455 Basic earnings per share: Continuing operations $ 0.25 $ 0.19 $ 0.06 $ 0.26 $ 0.75 Discontinued operations 0.00 0.01 (0.27 ) (0.03 ) (0.29 ) Basic earnings per share $ 0.25 $ 0.20 $ (0.21 ) $ 0.23 $ 0.47 Diluted earnings per share: Continuing operations $ 0.25 $ 0.18 $ 0.06 $ 0.26 $ 0.75 Discontinued operations 0.00 0.01 (0.27 ) (0.03 ) (0.29 ) Diluted earnings per share $ 0.25 $ 0.19 $ (0.21 ) $ 0.23 $ 0.46 Dividends declared per common share $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.20 During the third quarter of fiscal year 2014, the Company recorded an impairment loss aggregating $15.3 million pertaining to the assets of the Mitchell’s Restaurants. During the fourth quarter, the Company recorded a $1.8 million loss on the assets of the Mitchell’s Restaurants held for sale. The impairments and loss on assets held for sale are classified as discontinued operations. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 27, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | (a) Basis of Presentation The Company utilizes a 52- or 53-week reporting period ending on the last Sunday of December. The periods ended December 27, 2015 (fiscal year 2015) December 28, 2014 (fiscal year 2014) and December 29, 2013 each had a 52-week reporting period. The consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles and include the financial statements of Ruth’s Hospitality Group, Inc. and its wholly owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain prior year amounts have been reclassified to conform to the current year presentation. Most significantly, the results of the Mitchell’s Restaurants have been reclassified as a discontinued operation. |
Revenue Recognition, Gift Cards [Policy Text Block] | (b) Change in Accounting for Gift Card Breakage The portion of gift cards sold to customers which are never redeemed is commonly referred to as gift card breakage. Prior to the fourth quarter of fiscal year 2013, the Company recognized breakage revenue using the delayed method of accounting. At the end of the fourth quarter of fiscal year 2013, the Company elected to change its policy for recognizing gift card breakage revenue by changing from the delayed method to the preferable redemption method of accounting. Under the redemption method, breakage revenue is recognized and the gift card liability is derecognized for unredeemed gift cards in proportion to actual gift card redemptions. The impact of the cumulative catch-up adjustment recorded in the fourth quarter of fiscal year 2013 was to reduce gift card breakage revenue by $2.2 million. Inclusive of this adjustment, the Company recognized $804 thousand of gift card breakage revenue in fiscal year 2013. Gift card breakage revenue recognized in fiscal years 2014 and 2015 was $2.6 million and $2.4 million, respectively. Consistent with the cumulative catch-up method of accounting for a change in accounting estimate effected by a change in accounting principle, previously issued financial statements were not revised. |
New Accounting Pronouncements, Policy [Policy Text Block] | (c) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective. The new standard was originally effective for interim and annual periods in fiscal years beginning after December 15, 2016. In July 2015, the FASB affirmed its proposal for a one year deferral of the effective date. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. The FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” in April 2015, which requires entities to present debt issuance costs related to a recognized debt liability on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts. Entities will no longer record the cost of issuing debt as a separate asset, except when the cost is incurred before receipt of the funding from the associated debt liability. The new standard is effective for interim and annual periods beginning after December 15, 2015. On August 18, 2015 the FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements – Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting,” (ASU 2015-15), which addresses the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. ASU 2015-15 states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are outstanding borrowings under that line-of-credit arrangement. The Company’s current financial statement presentation of debt issuance costs is consistent with the guidance in ASU 2015-15, so no material change in the Company’s financial reporting is expected from the recent debt issuance cost standards. 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. The pronouncement is effective for reporting periods beginning after December 15, 2015. The adoption of ASU 2015-05 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 ASU No. 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 November 2015, the FASB issued ASU No. 2015-17, “Income Taxes” which requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. Prior to the issuance of the standard, deferred tax liabilities and assets were required to be separately classified into a current amount and a noncurrent amount in the balance sheet. The new accounting guidance represents a change in accounting principle and the standard is required to be adopted in annual periods beginning after December 15, 2016. Early adoption is permitted and the Company elected to early adopt this guidance as of December 27, 2015 and to apply the guidance retrospectively to all periods presented. Accordingly, the Company reclassified the prior period amount of $3.8 million related to its deferred tax asset from current to noncurrent, resulting in an offset to the noncurrent deferred income tax liability for the same amount for that period, according to the requirement to offset and present as a single amount. Because the application of this guidance affects classification only, such reclassifications did not have a material effect on the Company’s consolidated financial position or results of operations. |
Commitments and Contingencies, Policy [Policy Text Block] | ( d ) Contingencies The Company recognizes liabilities for contingencies when there is an exposure that indicates it is both probable that an asset has been impaired or that a liability has been incurred and that the amount of impairment or loss can be reasonably estimated. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (e) Cash Equivalents For purposes of the consolidated financial statements, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company has included outstanding checks totaling $4.5 million and $7.6 million at December 27, 2015 and December 28, 2014, respectively, in “Accounts payable” and “Accrued payroll” in the consolidated balance sheets. Changes in such amounts are reflected in cash flows from operating activities in the consolidated statements of cash flows. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ( f ) Accounts Receivable Accounts receivable consists primarily of bank credit cards receivable, landlord contributions, franchise royalty payments receivable, banquet billings receivable and other miscellaneous receivables. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | (g) Allowance for Doubtful Accounts The Company performs a specific review of account balances and applies historical collection experience to the various aging categories of receivable balances in establishing an allowance. |
Inventory, Policy [Policy Text Block] | ( h ) Inventories Inventories consist of food, beverages and supplies and are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. |
Property, Plant and Equipment, Policy [Policy Text Block] | ( i ) Property and Equipment, net Property and equipment are stated at cost. Expenditures for improvements and major renewals are capitalized and minor replacement, maintenance and repairs are charged to expense. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the lease term or the estimated useful lives of the assets. The estimated useful lives for assets are as follows: Building and Building Improvements, 20 to 40 years; Equipment, 5 years; Furniture and Fixtures, 5 to 7 years; Computer Equipment, 3 to 5 years; and Leasehold Improvements, 5 to 20 years (limited by the lease term). |
Goodwill and Intangible Assets, Policy [Policy Text Block] | ( j ) Goodwill , Franchise Rights and Trademarks Goodwill and trademarks acquired in a business combination that are determined to have an indefinite useful life are not amortized, but tested for impairment at least annually in accordance with the provisions of FASB ASC Topic 350, “Intangibles-Goodwill and Other.” Goodwill and trademarks are tested annually for impairment on a reporting unit basis and more frequently if events and circumstances indicate that the asset might be impaired. For purposes of testing goodwill impairment, a reporting unit is defined as a group of restaurants with similar economic characteristics. For purposes of testing trademark impairment, a reporting unit is defined as a group of acquired restaurants sharing a common trade name. An impairment loss is recognized to the extent that the financial statement carrying amount exceeds the asset’s fair value. Franchise rights acquired prior to 2008 in a purchase business combination that are determined to have an indefinite useful life are not amortized, but are tested for impairment at least annually on a reporting unit basis, which is defined as a group of reacquired restaurants, and more frequently if events and circumstances indicate that the asset might be impaired. The Company allows and expects franchisees to renew agreements indefinitely ensuring consistent cash flows. As a result, franchise rights acquired prior to 2008 are determined to have indefinite useful lives. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Franchise rights acquired after 2007 are no longer considered to have indefinite useful lives and are amortized in accordance with FASB ASC Topic 350. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ( k ) Impairment or Disposal of Long-Lived Assets In accordance with FASB ASC Topic 360-10, “Property, Plant and Equipment—Impairment or Disposal of Long-Lived Assets,” (Topic 360-10), long lived assets, such as property and equipment and purchased intangibles subject to amortization, are reviewed for impairment on a restaurant-by-restaurant basis whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the financial statement carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Key assumptions in the determination of fair value are the future after-tax cash flows of the restaurant and discount rate. The after-tax cash flows incorporate reasonable sales growth and margin improvement assumptions that would be expected by a franchisee in the determination of a purchase price for the restaurant. Estimates of future cash flows are highly subjective judgments and can be significantly impacted by changes in the business or economic conditions. The discount rate used in the fair value calculations is our estimate of the required rate of return that a market participant would expect to receive when purchasing a similar restaurant or groups of restaurants and the related long-lived assets. The discount rate incorporates rates of returns for historical refranchising market transactions and is commensurate with the risks and uncertainty inherent in the forecasted cash flows. The assets and liabilities of a disposed group classified as held for sale are presented separately in the appropriate asset and liability sections of the consolidated balance sheets. Assets are classified as held for sale when certain criteria are met, including the requirement that it is probable that the assets will be disposed of within one year. Assets classified as held for sale are separately presented in the balance sheet and reported at the lower of the carrying amount or the fair value less costs to sell, and are no longer depreciated. We account for exit or disposal activities, including restaurant closures, in accordance with Topic 360-10. Such costs include the cost of disposing of the assets as well as other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we record a liability under FASB ASC Topic 420, “Exit and Disposal Cost Obligations” for the net present value of any remaining lease obligations, net of estimated sublease income. Any subsequent adjustments to that liability as a result of lease termination or changes in estimates of sublease income are recorded in the period incurred. Upon disposal of the assets associated with a closed restaurant, any gain or loss is recorded in the same line within our consolidated statements of income as the original impairment. |
Deferred Charges, Policy [Policy Text Block] | ( l ) Deferred Financing Costs Deferred financing costs represent fees paid in connection with obtaining bank and other long-term financing. The Company paid no financing costs during fiscal years 2015, 2014 and 2013. The Company amortizes deferred financing costs using a method that approximates the effective interest method over the term of the related financing. Amortization of deferred financing costs was $421 thousand in each of the fiscal years 2015, 2014 and 2013 and is included in interest expense on the consolidated statements of income. |
Revenue Recognition, Policy [Policy Text Block] | ( m ) Revenues Revenues are derived principally from food and beverage sales. The Company does not rely on any major customers as a source of revenue. Revenue from restaurant sales is recognized when food and beverage products are sold. Restaurant sales are presented net of sales taxes and discounts. Gratuities remitted by customers for the benefit of restaurant staff are not included in either revenues or operating expenses. Deferred revenue primarily represents the Company’s liability for gift cards that have been sold but not yet redeemed. When the gift cards are redeemed, the Company recognizes restaurant sales and reduces the deferred revenue liability. Company issued gift cards redeemed at franchisee-owned restaurants reduce the deferred revenue liability but do not result in Company restaurant sales. Gift card transactions involving franchisees are settled on a monthly basis through the Company’s third party gift card provider. The expected redemption value of gift cards represents the full value of all gift cards issued less the amount the Company has recognized as other operating income for gift cards that are not expected to be redeemed. Gift card breakage revenue is classified as a component of other operating income. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (n) International Revenues The Company currently has 20 international franchisee-owned restaurants in Aruba, Canada, China, El Salvador, Japan, Mexico, Panama, Puerto Rico, Singapore, Taiwan and the United Arab Emirates. In accordance with its franchise agreements relating to these international restaurants, the Company receives royalty revenue from these franchisees in U.S. dollars. Franchise fee revenues from international restaurants were $3.0 million, $3.2 million and $3.0 million in fiscal years 2015, 2014 and 2013, respectively. |
Lease, Policy [Policy Text Block] | ( o ) Rent Certain of the Company’s operating leases contain predetermined fixed escalations of the minimum rent during the term of the lease. For these leases, the Company recognizes the related rent expense on a straight-line basis over the life of the lease and records the difference between amounts charged to operations and amounts paid as deferred rent. Additionally, certain of the Company’s operating leases contain clauses that provide additional contingent rent based on a percentage of sales greater than certain specified target amounts. The Company recognizes contingent rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of that target is considered probable. |
Advertising Costs, Policy [Policy Text Block] | ( p ) Marketing and Advertising Marketing and advertising expenses in the accompanying consolidated statements of income include advertising expenses of $6.5 million, $6.1 million and $6.1 million in fiscal years 2015, 2014 and 2013, respectively. Advertising costs are expensed as incurred. |
Self Insurance Reserve [Policy Text Block] | ( q ) Insurance Liability The Company maintains various policies for workers’ compensation, employee health, general liability and property damage. Pursuant to those policies, the Company is responsible for losses up to certain limits. The Company records liabilities for the estimated exposure for aggregate losses below those limits. The recorded liabilities are based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liabilities are not discounted and are based on a number of assumptions and factors, including historical trends, actuarial assumptions and economic conditions. Independent actuaries are used to develop estimates of the workers’ compensation, general and employee health care liabilities. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | (r) Stock-Based Compensation The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718, “Compensation—Stock Compensation, (Topic 718). Stock-based compensation cost includes compensation cost for all share-based payments granted based on the grant date fair value estimated in accordance with the provisions of Topic 718. Compensation cost is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period of each award. |
Pre-opening Costs [Policy Text Block] | ( s ) Pre -Opening Costs Pre-opening costs incurred with the opening of new restaurants are expensed as incurred. These costs include rent expense, wages, benefits, travel and lodging for the training and opening management teams, and food, beverage and other restaurant operating expenses incurred prior to a restaurant opening for business. |
Income Tax, Policy [Policy Text Block] | ( t ) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company applies the provisions of FASB ASC Topic 740, “Income Taxes” (Topic 740). Topic 740 requires that a position taken or expected to be taken in a tax return be recognized (or derecognized) in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company’s continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. |
Earnings Per Share, Policy [Policy Text Block] | ( u ) Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net income by the diluted weighted average shares of common stock outstanding during each period. Potentially dilutive securities include shares of non-vested stock awards. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Stock awards are excluded from the calculation of diluted earnings per share in the event they are antidilutive. |
Business Combinations Policy [Policy Text Block] | ( v ) Restaurant Acquisition |
Note 1 - The Company, Organiz28
Note 1 - The Company, Organization and Description of Business (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Franchisor Disclosure [Table Text Block] | 13 Weeks Ending 52 Weeks Ending December 27, 2015 December 27, 2015 Ruth's Chris Steak House Company Franchised Managed Total Company Franchised Managed Total Beginning of period 66 79 1 146 65 77 1 143 Acquired 0 0 0 0 0 0 0 0 Sold 0 0 0 0 0 0 0 0 New 1 1 0 2 2 3 0 5 Closed 0 0 0 0 0 0 0 0 End of period 67 80 1 148 67 80 1 148 % of total 45% 54% 1% 100% 45% 54% 1% 100% |
Note 3 - Mitchell's Restauran29
Note 3 - Mitchell's Restaurants (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Mitchells Restaurants [Member] | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Inventory $ 952 Property and equipment, net 8,775 Trademarks 2,847 Other intangibles 2,545 Total assets held for sale $ 15,119 Deferred rent liability $ 4,869 Total liabilities associated with assets held for sale $ 4,869 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Fiscal Year 2015 2014 2013 Revenues Mitchell's Restaurants $ 4,343 $ 73,974 $ 75,925 Other Restaurants (3 ) 3,386 9,176 Total revenues 4,340 77,360 85,101 Costs and expenses Recurring costs and expenses Mitchell's Restaurants 5,196 73,852 75,396 Other Restaurants 175 4,115 9,594 Impairment losses Mitchell's Restaurants - 15,295 2,512 Other Restaurants - - 750 Loss on pending sale of Mitchell's Restaurants - 1,825 - Gain on settlement - Mitchell's Restaurants - - (437 ) Remeasurement of lease exit liability - - 1,716 Total costs and expenses 5,371 95,087 89,531 Loss before income taxes (1,031 ) (17,727 ) (4,430 ) Income tax benefit (869 ) (7,472 ) (2,426 ) Loss from discontinued operations, net of income taxes $ (162 ) $ (10,255 ) $ (2,004 ) |
Note 4 - Discontinued Operati30
Note 4 - Discontinued Operations (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Fiscal Year 2015 2014 2013 Revenues Mitchell's Restaurants $ 4,343 $ 73,974 $ 75,925 Other Restaurants (3 ) 3,386 9,176 Total revenues 4,340 77,360 85,101 Costs and expenses Recurring costs and expenses Mitchell's Restaurants 5,196 73,852 75,396 Other Restaurants 175 4,115 9,594 Impairment losses Mitchell's Restaurants - 15,295 2,512 Other Restaurants - - 750 Loss on pending sale of Mitchell's Restaurants - 1,825 - Gain on settlement - Mitchell's Restaurants - - (437 ) Remeasurement of lease exit liability - - 1,716 Total costs and expenses 5,371 95,087 89,531 Loss before income taxes (1,031 ) (17,727 ) (4,430 ) Income tax benefit (869 ) (7,472 ) (2,426 ) Loss from discontinued operations, net of income taxes $ (162 ) $ (10,255 ) $ (2,004 ) |
Note 5 - Fair Value Measureme31
Note 5 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Fair Value Measurements, Nonrecurring [Table Text Block] | Fair Value as of December 28, 2014 Significant Unobservable Inputs (Level 3) Total Losses on Impairment Valuation Method Long-lived assets held for sale $ 11,320 $ 11,320 $ 9,809 Market approach Fair Value as of December 28, 2014 Significant Unobservable Inputs (Level 3) Total Losses on Impairment Valuation Method Trademarks held for sale $ 2,847 $ 2,847 $ 7,311 Income approach |
Note 6 - Goodwill, Franchise 32
Note 6 - Goodwill, Franchise Rights and Trademarks (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Franchise Rights Gross Goodwill Accumulated Goodwill Impairment Losses Net Carrying Value of Goodwill Balance as of December 28, 2014 $ 32,237 $ 57,665 $ (33,372 ) $ 24,293 Balance as of December 27, 2015 $ 32,200 $ 34,851 $ (10,558 ) $ 24,293 |
Note 7 - Property and Equipme33
Note 7 - Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 27, December 28, 2015 2014 Land $ 917 $ 917 Building and building improvements 24,451 24,175 Equipment 33,931 31,458 Computer equipment 10,069 9,735 Furniture and fixtures 17,943 16,583 Automobiles 27 27 Leasehold improvements 117,364 108,061 Construction-in-progress 8,644 4,106 213,346 195,062 Less accumulated depreciation (125,362 ) (114,708 ) $ 87,984 $ 80,354 |
Note 8 - Long-term Debt (Tables
Note 8 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 27, December 28, 2015 2014 Senior Credit Facility: Revolving credit facility $ - $ 13,000 Less current maturities - - $ - $ 13,000 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Company 2016 $ 21,120 2017 20,072 2018 18,514 2019 17,265 2020 15,865 Thereafter 117,325 $ 210,160 |
Schedule of Rent Expense [Table Text Block] | Fiscal Year 2015 2014 2013 Minimum rentals $ 18,846 $ 17,647 $ 16,424 Contingent rentals 2,877 2,558 2,456 $ 21,723 $ 20,205 $ 18,880 |
Note 10 - Franchise Operations
Note 10 - Franchise Operations (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Condensed Income Statement [Table Text Block] | Fiscal Year 2015 2014 2013 Franchise income: Income from existing franchise locations $ 16,361 $ 15,598 $ 14,612 Opening and development fee income 300 165 400 Total franchise income: $ 16,661 $ 15,763 $ 15,012 |
Note 12 - Shareholders' Equity
Note 12 - Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Dividends Payable [Table Text Block] | Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2013: May 3, 2013 $ 0.04 May 16, 2013 $ 1,430 May 30, 2013 July 24, 2013 $ 0.04 August 15, 2013 $ 1,424 August 29, 2013 October 22, 2013 $ 0.04 November 14, 2013 $ 1,424 November 26, 2013 Fiscal Year 2014: February 21, 2014 $ 0.05 March 13, 2014 $ 1,798 March 27, 2014 April 22, 2014 $ 0.05 May 15, 2014 $ 1,798 May 29, 2014 July 23, 2014 $ 0.05 August 14, 2014 $ 1,778 August 28, 2014 October 29, 2014 $ 0.05 November 20, 2014 $ 1,764 December 4, 2014 Fiscal Year 2015: February 13, 2015 $ 0.06 February 26, 2015 $ 2,082 March 12, 2015 April 21, 2015 $ 0.06 May 14, 2015 $ 2,090 May 28, 2015 July 22, 2015 $ 0.06 August 13, 2015 $ 2,108 August 27, 2015 October 30, 2015 $ 0.06 November 19, 2015 $ 2,069 December 3, 2015 |
Note 14 - Incentive Stock Opt38
Note 14 - Incentive Stock Option Plans (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | 2015 Shares Weighted-Average Grant-Date Fair Value Per Share Non-vested shares at beginning of year 569,275 $ 10.46 Granted 893,662 15.74 Vested (312,852 ) 9.09 Non-vested shares at end of year 1,150,085 $ 14.93 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 2015 Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value ($000's) Outstanding at beginning of year 439,880 $ 13.12 Granted - - Exercised (72,875 ) 3.46 Forfeited (104,257 ) 17.78 Outstanding at end of year 262,748 $ 13.88 1.69 $ 1,107,544 Options exercisable at year end 262,748 $ 13.88 1.69 $ 1,107,544 |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Consolidated Income Tax Expense [Table Text Block] | 2015 2014 2013 Income from continuing operations $ 14,168 $ 11,830 $ 10,744 Loss from discontinued operations (869 ) (7,472 ) (2,426 ) Total consolidated income tax expense $ 13,299 $ 4,358 $ 8,318 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Current Deferred Total Year ended December 27, 2015 U.S. Federal $ 14,692 $ (3,445 ) $ 11,247 State 2,697 (120 ) 2,577 Foreign 344 - 344 $ 17,733 $ (3,565 ) $ 14,168 Year ended December 28, 2014 U.S. Federal $ 3,475 $ 6,447 $ 9,922 State 562 961 1,523 Foreign 385 - 385 $ 4,422 $ 7,408 $ 11,830 Year ended December 29, 2013 U.S. Federal $ 2,056 $ 6,708 $ 8,764 State 136 1,495 1,631 Foreign 349 - 349 $ 2,541 $ 8,203 $ 10,744 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2015 2014 2013 Income tax expense at statutory rates $ 15,517 $ 13,489 $ 12,333 Increase (decrease) in income taxes resulting from: State income taxes at state statutory rate, net of federal benefit 2,010 1,813 1,444 Federal FICA tip credit net benefit (3,124 ) (2,814 ) (2,634 ) State employment tax credits generated in prior years (60 ) (331 ) (623 ) Increase to valuation allowance 75 - 243 Other (250 ) (327 ) (19 ) $ 14,168 $ 11,830 $ 10,744 Effective tax rate 32.0 % 30.7 % 30.5 % 2015 2014 2013 Income tax benefit at statutory rates $ (361 ) $ (6,204 ) $ (1,550 ) Increase (decrease) in income taxes resulting from: State income taxes at state statutory rate, net of federal impact (411 ) (701 ) (198 ) Other, primarily federal FICA tip credit net benefit (97 ) (567 ) (678 ) $ (869 ) $ (7,472 ) $ (2,426 ) Effective tax rate 84.3 % 42.2 % 54.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2015 2014 Deferred tax assets: Accounts payable and accrued expenses $ 8,222 $ 3,775 Deferred rent 8,655 9,911 Net state operating loss carryforwards 3,281 2,923 Tax credit carryforwards 9,339 6,236 Property and equipment 5,098 10,589 Other 209 335 Total gross deferred tax assets 34,804 33,769 Less valuation allowance (979 ) (947 ) Net deferred tax assets 33,825 32,822 Deferred tax liabilities: Intangible assets (14,516 ) (3,993 ) Total gross deferred tax liabilities (14,516 ) (3,993 ) Net deferred tax assets $ 19,309 $ 28,829 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Unrecognized tax benefits balance at December 28, 2014 $ 958 Gross increases for tax positions of prior years 107 Settlements (458 ) Unrecognized tax benefits balance at December 27, 2015 $ 607 |
Note 16 - Earnings Per Share (T
Note 16 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2015 2014 2013 Income from continuing operations $ 30,166 $ 26,710 $ 24,493 Loss from discontinued operations, net of income taxes (162 ) (10,255 ) (2,004 ) Net income $ 30,004 $ 16,455 $ 22,489 Shares: Weighted average number of common shares outstanding - basic 34,018,582 34,955,760 34,761,160 Basic earnings per common share: Continuing operations $ 0.88 $ 0.76 $ 0.71 Discontinued operations 0.00 (0.29 ) (0.06 ) Basic earnings per common share $ 0.88 $ 0.47 $ 0.65 2015 2014 2013 Income from continuing operations $ 30,166 $ 26,710 $ 24,493 Loss from discontinued operations, net of income taxes (162 ) (10,255 ) (2,004 ) Net income $ 30,004 $ 16,455 $ 22,489 Shares: Weighted average number of common shares outstanding - basic 34,018,582 34,955,760 34,761,160 Dilutive shares 415,825 459,723 1,023,270 Weighted-average number of common shares outstanding - diluted 34,434,407 35,415,483 35,784,430 Diluted earnings per common share: Continuing operations $ 0.87 $ 0.75 $ 0.69 Discontinued operations 0.00 (0.29 ) (0.06 ) Diluted earnings per common share $ 0.87 $ 0.46 $ 0.63 |
Note 17 - Segment Information (
Note 17 - Segment Information (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Fiscal Year 2015 2014 2013 (Dollar amounts in thousands) Revenues: Company-owned steakhouse restaurants $ 354,398 $ 327,731 $ 306,539 Franchise operations 16,661 15,763 15,012 Unallocated other revenue and revenue discounts 2,374 2,603 803 Total revenues $ 373,433 $ 346,097 $ 322,354 Segment profits: Company-owned steakhouse restaurants $ 80,450 $ 68,230 $ 67,489 Franchise operations 16,661 15,763 15,012 Total segment profit 97,111 83,993 82,501 Unallocated operating income 2,374 2,603 803 Marketing and advertising expenses (10,925 ) (10,076 ) (9,341 ) General and administrative costs (30,242 ) (24,311 ) (27,808 ) Depreciation and amortization expenses (12,520 ) (10,917 ) (10,229 ) Pre-opening costs (1,032 ) (1,630 ) (691 ) Gain on settlements, net - - 1,719 Interest expense, net (790 ) (1,159 ) (1,640 ) Other income (expense) 358 37 (77 ) Income from continuing operations before income tax expense $ 44,334 $ 38,540 $ 35,237 Capital expenditures: Company-owned steakhouse restaurants $ 18,934 $ 14,867 $ 11,242 Corporate assets 1,133 1,097 1,723 Mitchell's Restaurants 225 1,401 2,346 Total capital expenditures $ 20,292 $ 17,365 $ 15,311 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | December 27, December 28, 2015 2014 (Dollar amounts in thousands) Total assets: Company-owned steakhouse restaurants $ 168,766 $ 155,757 Franchise operations 2,444 2,151 Corporate assets - unallocated 7,828 16,711 Deferred income taxes - unallocated 19,309 28,829 Mitchell's Restaurants 250 15,119 Total assets $ 198,597 $ 218,567 |
Note 18 - Supplemental Consol42
Note 18 - Supplemental Consolidated Financial Statement Information (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable December 27, December 28, 2015 2014 Bank credit card receivables $ 11,417 $ 11,262 Landlord contributions 396 443 Franchise fees 2,306 2,116 Trade 751 682 Refundable income tax - 2,335 Receivable from gift card issuances 929 2,216 Other 3,434 2,164 Allowance for doubtful accounts (732 ) (760 ) $ 18,501 $ 20,458 |
Schedule of Other Assets [Table Text Block] | Other assets December 27, December 28, 2015 2014 Deposits $ 702 $ 764 Deferred financing costs, net 481 901 Other 33 39 $ 1,216 $ 1,704 |
Note 19 - Quarterly Financial43
Note 19 - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Quarterly Financial Information [Table Text Block] | Quarter Ended March 29, June 28, September 27, December 27, 2015 2015 2015 2015 Total Total revenues $ 97,344 $ 91,049 $ 80,292 $ 104,747 $ 373,433 Cost and expenses (81,136 ) (79,645 ) (76,137 ) (91,750 ) (328,667 ) Operating income 16,208 11,404 4,155 12,997 44,766 Interest expense, net (226 ) (174 ) (188 ) (202 ) (790 ) Debt issuance costs written off 15 16 9 318 358 Income from continuing operations before income tax expense 15,997 11,246 3,976 13,113 44,334 Income tax expense 5,229 3,577 1,338 4,023 14,168 Income from continuing operations 10,768 7,669 2,638 9,090 30,166 Discontinued operations, net of income tax (357 ) (153 ) (73 ) 420 (162 ) Net income $ 10,411 $ 7,516 $ 2,565 $ 9,510 $ 30,004 Basic earnings per share: Continuing operations $ 0.31 $ 0.22 $ 0.08 $ 0.27 $ 0.88 Discontinued operations (0.01 ) 0.00 0.00 0.01 0.00 Basic earnings per share $ 0.30 $ 0.22 $ 0.08 $ 0.28 $ 0.88 Diluted earnings per share: Continuing operations $ 0.31 $ 0.22 $ 0.08 $ 0.27 $ 0.87 Discontinued operations (0.01 ) 0.00 0.00 0.01 0.00 Diluted earnings per share $ 0.30 $ 0.22 $ 0.08 $ 0.28 $ 0.87 Dividends declared per common share $ 0.06 $ 0.06 $ 0.06 $ 0.06 $ 0.24 Quarter Ended March 30, June 29, September 28, December 28, 2014 2014 2014 2014 Total Total revenues $ 90,354 $ 83,006 $ 73,795 $ 98,941 $ 346,097 Cost and expenses (76,400 ) (73,172 ) (69,833 ) (87,029 ) (306,435 ) Operating income 13,954 9,834 3,962 11,912 39,662 Interest expense, net (287 ) (298 ) (297 ) (278 ) (1,159 ) Other 9 12 5 12 37 Income from continuing operations before income tax expense 13,676 9,548 3,670 11,646 38,540 Income tax expense 4,686 2,880 1,472 2,791 11,830 Income from continuing operations 8,990 6,668 2,198 8,855 26,710 Discontinued operations, net of income tax (125 ) 236 (9,496 ) (870 ) (10,255 ) Net income (loss) $ 8,865 $ 6,904 $ (7,298 ) $ 7,985 $ 16,455 Basic earnings per share: Continuing operations $ 0.25 $ 0.19 $ 0.06 $ 0.26 $ 0.75 Discontinued operations 0.00 0.01 (0.27 ) (0.03 ) (0.29 ) Basic earnings per share $ 0.25 $ 0.20 $ (0.21 ) $ 0.23 $ 0.47 Diluted earnings per share: Continuing operations $ 0.25 $ 0.18 $ 0.06 $ 0.26 $ 0.75 Discontinued operations 0.00 0.01 (0.27 ) (0.03 ) (0.29 ) Diluted earnings per share $ 0.25 $ 0.19 $ (0.21 ) $ 0.23 $ 0.46 Dividends declared per common share $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.20 |
Note 1 - The Company, Organiz44
Note 1 - The Company, Organization and Description of Business (Details Textual) | 3 Months Ended | 12 Months Ended | |||
Dec. 27, 2015 | Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | Sep. 27, 2015 | |
Ruths Chris Steak House [Member] | Entity Operated Units [Member] | St. Petersburg, Florida [Member] | |||||
Number of Restaurants Opened During Period | 1 | ||||
Ruths Chris Steak House [Member] | Entity Operated Units [Member] | Dallas, Texas [Member] | |||||
Number of Restaurants Opened During Period | 1 | ||||
Ruths Chris Steak House [Member] | Entity Operated Units [Member] | |||||
Number of Restaurants | 67 | 67 | 65 | 66 | |
Number of Restaurants Opened During Period | 1 | 2 | |||
Ruths Chris Steak House [Member] | Franchised Units [Member] | International [Member] | |||||
Number of Restaurants | 20 | 20 | |||
Ruths Chris Steak House [Member] | Franchised Units [Member] | |||||
Number of Restaurants | 80 | 80 | 77 | 79 | |
Number of Restaurants Opened During Period | 1 | 3 | |||
Number of Franchise Restaurants Opened During Period | 3 | 3 | 4 | ||
Ruths Chris Steak House [Member] | Managed [Member] | |||||
Number of Restaurants | 1 | 1 | |||
Ruths Chris Steak House [Member] | |||||
Number of Restaurants | 148 | 148 | 143 | 146 | |
Number of Restaurants Opened During Period | 2 | 5 | |||
Mitchells Fish Market [Member] | Company-owned Fish Market Restaurants [Member] | |||||
Number of Restaurants | 18 | ||||
Camerons Mitchell Steak house [Member] | Company-owned Steakhouse Restaurants [Member] | |||||
Number of Restaurants | 3 | ||||
Franchised Units [Member] | International [Member] | |||||
Number of Restaurants | 20 | 20 |
Note 1 - Summary of Restaurants
Note 1 - Summary of Restaurants (Details) - Ruths Chris Steak House [Member] | 3 Months Ended | 12 Months Ended |
Dec. 27, 2015 | Dec. 27, 2015 | |
Entity Operated Units [Member] | ||
Beginning of period | 66 | 65 |
Acquired | 0 | 0 |
Number of Restaurants Sold During Period | 0 | 0 |
Number of Restaurants Opened During Period | 1 | 2 |
Number of Restaurants Closed During Period | 0 | 0 |
End of period | 67 | 67 |
% of total | 45.00% | 45.00% |
Franchised Units [Member] | ||
Beginning of period | 79 | 77 |
Acquired | 0 | 0 |
Number of Restaurants Sold During Period | 0 | 0 |
Number of Restaurants Opened During Period | 1 | 3 |
Number of Restaurants Closed During Period | 0 | 0 |
End of period | 80 | 80 |
% of total | 54.00% | 54.00% |
Entity Managed Units [Member] | ||
Beginning of period | 1 | 1 |
Acquired | 0 | 0 |
Number of Restaurants Sold During Period | 0 | 0 |
Number of Restaurants Opened During Period | 0 | 0 |
Number of Restaurants Closed During Period | 0 | 0 |
End of period | 1 | 1 |
% of total | 1.00% | 1.00% |
Beginning of period | 146 | 143 |
Acquired | 0 | 0 |
Number of Restaurants Sold During Period | 0 | 0 |
Number of Restaurants Opened During Period | 2 | 5 |
Number of Restaurants Closed During Period | 0 | 0 |
End of period | 148 | 148 |
% of total | 100.00% | 100.00% |
Note 2 - Summary of Significa46
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2014USD ($) | Dec. 29, 2013USD ($) | Dec. 27, 2015USD ($) | Dec. 28, 2014USD ($) | Dec. 29, 2013USD ($) | Dec. 30, 2012USD ($) | |
Reclassification from Current Deferred Tax Assets to Noncurrent Deferred Tax Assets [Member] | December 28, 2014 [Member] | ||||||
Prior Period Reclassification Adjustment | $ 3,800,000 | |||||
Accounts Payable and Accrued Payroll [Member] | Outstanding Checks [Member] | ||||||
Cash and Cash Equivalents, at Carrying Value | $ 4,500,000 | $ 7,600,000 | ||||
Building and Building Improvements [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 20 years | |||||
Building and Building Improvements [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 40 years | |||||
Equipment [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Furniture and Fixtures [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Furniture and Fixtures [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 7 years | |||||
Computer Equipment [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Computer Equipment [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Leasehold Improvements [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Leasehold Improvements [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 20 years | |||||
Franchised Units [Member] | International [Member] | ||||||
Number of Restaurants | 20 | |||||
International [Member] | Franchise Operations [Member] | ||||||
Franchise Revenue | $ 3,000,000 | 3,200,000 | $ 3,000,000 | |||
Ruths Chris Steak House [Member] | ||||||
Payments to Acquire Businesses, Gross | $ 2,800,000 | |||||
Goodwill | 2,200,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 259,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | $ 368,000 | |||||
Payments of Financing Costs | 0 | 0 | 0 | |||
Decrease in Revenue Recognition, Gift Card's Breakage | $ 2,200,000 | |||||
Revenue Recognition, Gift Cards, Breakage | 2,400,000 | 2,600,000 | 804,000 | |||
Cash and Cash Equivalents, at Carrying Value | $ 10,586,000 | 3,095,000 | 4,301,000 | 10,586,000 | $ 7,909,000 | |
Amortization of Financing Costs | 421,000 | 421,000 | 421,000 | |||
Franchise Revenue | 16,661,000 | 15,763,000 | 15,012,000 | |||
Advertising Expense | 6,500,000 | 6,100,000 | $ 6,100,000 | |||
Payments to Acquire Businesses, Gross | 0 | 2,800,000 | ||||
Goodwill | $ 24,293,000 | $ 24,293,000 |
Note 3 - Mitchell's Restauran47
Note 3 - Mitchell's Restaurants (Details Textual) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 27, 2015USD ($) | Sep. 27, 2015USD ($) | Jun. 28, 2015USD ($) | Mar. 29, 2015USD ($) | Dec. 28, 2014USD ($) | Sep. 28, 2014USD ($) | Jun. 29, 2014USD ($) | Mar. 30, 2014USD ($) | Dec. 29, 2013USD ($) | Dec. 27, 2015USD ($) | Dec. 28, 2014USD ($) | Dec. 29, 2013USD ($) | Nov. 30, 2014USD ($) | |
Mitchells Restaurants [Member] | |||||||||||||
General and Administrative Expense | $ 0 | ||||||||||||
Interest Expense | 0 | ||||||||||||
Number of Restaurants | 21 | ||||||||||||
Asset Impairment Charges | $ 15,295,000 | $ 2,512,000 | |||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 10,000,000 | ||||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (1,800,000) | ||||||||||||
Mitchells Fish Market [Member] | Company-owned Fish Market Restaurants [Member] | |||||||||||||
Number of Restaurants | 18 | 18 | |||||||||||
Camerons Mitchell Steak house [Member] | Company-owned Steakhouse Restaurants [Member] | |||||||||||||
Number of Restaurants | 3 | 3 | |||||||||||
Mitchells Restaurants [Member] | Trademarks [Member] | |||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 7,300,000 | ||||||||||||
Trademarks [Member] | |||||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 400,000 | $ 0 | |||||||||||
Mitchell's Fish Market and Cameron's Steakhouse [Member] | |||||||||||||
Impairment of Long-Lived Assets to be Disposed of | 8,000,000 | ||||||||||||
General and Administrative Expense | 30,242,000 | $ 24,311,000 | 27,808,000 | ||||||||||
Interest Expense | $ 202,000 | $ 188,000 | $ 174,000 | $ 226,000 | $ 278,000 | 297,000 | $ 298,000 | $ 287,000 | $ 790,000 | $ 1,159,000 | 1,640,000 | ||
Asset Impairment Charges | $ 15,300,000 | $ 15,300,000 | 750,000 | ||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (1,031,000) | $ (17,727,000) | $ (4,430,000) |
Note 3 - Carrying Amounts of As
Note 3 - Carrying Amounts of Assets and Liabilities with the Mitchell's Restaurants Classified as Held for Sale (Details) - Mitchells Restaurants [Member] $ in Thousands | Dec. 28, 2014USD ($) |
Trademarks [Member] | |
Intangible assets | $ 2,847 |
Other Intangible Assets [Member] | |
Intangible assets | 2,545 |
Inventory | 952 |
Property and equipment, net | 8,775 |
Total assets held for sale | 15,119 |
Deferred rent liability | 4,869 |
Total liabilities associated with assets held for sale | $ 4,869 |
Note 4 - Discontinued Operati49
Note 4 - Discontinued Operations (Details Textual) | 12 Months Ended |
Dec. 29, 2013USD ($) | |
Mitchells Fish Market [Member] | |
Impairment Loss Reclassified to Discontinued Operations, Before Tax | $ 750 |
Note 4 - Summary of Discontinue
Note 4 - Summary of Discontinued Operations (Details) - USD ($) | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Mitchells Restaurants [Member] | |||
Revenues | $ 4,343,000 | $ 73,974,000 | $ 75,925,000 |
Recurring costs and expenses | $ 5,196,000 | 73,852,000 | 75,396,000 |
Asset Impairment Charges | 15,295,000 | $ 2,512,000 | |
Loss on pending sale | $ 1,825,000 | ||
Gain (Loss) Related to Litigation Settlement | $ (437,000) | ||
Other Restaurants [Member] | |||
Revenues | $ (3,000) | $ 3,386,000 | 9,176,000 |
Recurring costs and expenses | 175,000 | 4,115,000 | 9,594,000 |
Revenues | 4,340,000 | 77,360,000 | 85,101,000 |
Recurring costs and expenses | $ 5,371,000 | $ 95,087,000 | 89,531,000 |
Asset Impairment Charges | 750,000 | ||
Gain (Loss) Related to Litigation Settlement | 1,719,000 | ||
Remeasurement of lease exit liability | 1,716,000 | ||
Loss before income taxes | $ (1,031,000) | $ (17,727,000) | (4,430,000) |
Income tax benefit | (869,000) | (7,472,000) | (2,426,000) |
Loss from discontinued operations, net of income taxes | $ (162,000) | $ (10,255,000) | $ (2,004,000) |
Note 5 - Fair Value of Long-liv
Note 5 - Fair Value of Long-lived Non-financial Assets (Details) - Fair Value, Measurements, Nonrecurring [Member] $ in Thousands | 12 Months Ended |
Dec. 28, 2014USD ($) | |
Market Approach Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair value | $ 11,320 |
Market Approach Valuation Technique [Member] | |
Fair value | 11,320 |
Impairment of Long-Lived Assets Held-for-use | 9,809 |
Income Approach Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair value | 2,847 |
Income Approach Valuation Technique [Member] | |
Fair value | 2,847 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 7,311 |
Note 6 - Goodwill, Franchise 52
Note 6 - Goodwill, Franchise Rights and Trademarks (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 28, 2014 | Dec. 29, 2013 | Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Franchise Rights [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 | $ 0 | ||
Trademarks [Member] | Mitchells Restaurants [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 7,300,000 | ||||
Trademarks [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 400,000 | 0 | |||
Austin, TX [Member] | |||||
Goodwill, Acquired During Period | 2,200,000 | ||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Note 6 - Carrying Value of Inta
Note 6 - Carrying Value of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Dec. 28, 2014 |
Franchise Rights | $ 32,200 | $ 32,237 |
Gross Goodwill | 34,851 | 57,665 |
Accumulated Goodwill Impairment Losses | (10,558) | (33,372) |
Goodwill | $ 24,293 | $ 24,293 |
Note 7 - Property and Equipme54
Note 7 - Property and Equipment, Net (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 28, 2014 | Sep. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Mitchells Restaurants [Member] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 8,000,000 | ||||
Mitchells Restaurants [Member] | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (1,800,000) | ||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (1,031,000) | $ (17,727,000) | $ (4,430,000) |
Note 7 - Summary of Property an
Note 7 - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Dec. 28, 2014 |
Land [Member] | ||
Property and equipment, gross | $ 917 | $ 917 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 24,451 | 24,175 |
Equipment [Member] | ||
Property and equipment, gross | 33,931 | 31,458 |
Computer Equipment [Member] | ||
Property and equipment, gross | 10,069 | 9,735 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 17,943 | 16,583 |
Automobiles [Member] | ||
Property and equipment, gross | 27 | 27 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 117,364 | 108,061 |
Construction in Progress [Member] | ||
Property and equipment, gross | 8,644 | 4,106 |
Property and equipment, gross | 213,346 | 195,062 |
Less accumulated depreciation | (125,362) | (114,708) |
$ 87,984 | $ 80,354 |
Note 8 - Long-term Debt (Detail
Note 8 - Long-term Debt (Details Textual) | Feb. 14, 2012USD ($) | Dec. 27, 2015USD ($) |
Senior Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Senior Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Senior Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Senior Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | Amended And Restated Credit Agreement [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Senior Credit Facility [Member] | ||
Long-term Line of Credit | $ 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 95,800,000 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |
Letter of Credit [Member] | ||
Letters of Credit Outstanding, Amount | $ 4,200,000 | |
Long-term Debt, Weighted Average Interest Rate | 2.13% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | |
Fixed Charge Coverage Ratio after Amendment | 1.25 | |
Maximum Leverage Ratio after Amendment | 2.5 | |
Debt Instrument Covenants on Cash Dividend Payments and Repurchases of Common or Preferred Stock | $ 100,000,000 | |
Debt Covenant Limit Used for Cash Dividends and Repurchases of Common or Preferred Stock | $ 58,900,000 |
Note 8 - Summary of Long-term D
Note 8 - Summary of Long-term Debt (Details) - USD ($) | Dec. 27, 2015 | Dec. 28, 2014 |
Revolving credit facility | $ 13,000,000 | |
Less current maturities | $ 0 | 0 |
$ 13,000,000 |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) - USD ($) $ in Thousands | Dec. 27, 2015 | Dec. 28, 2014 |
One of the Leases [Member] | ||
Letters of Credit Outstanding, Amount | $ 250 | |
Deferred Rent Credit | $ 20,300 | 20,000 |
Deferred Rent Credit, Current | 1,900 | $ 2,000 |
Lease Obligations Guaranteed | $ 37,800 |
Note 9 - Future Minimum Lease P
Note 9 - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 27, 2015USD ($) |
2,016 | $ 21,120 |
2,017 | 20,072 |
2,018 | 18,514 |
2,019 | 17,265 |
2,020 | 15,865 |
Thereafter | 117,325 |
$ 210,160 |
Note 9 - Summary of Rent Expens
Note 9 - Summary of Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Minimum rentals | $ 18,846 | $ 17,647 | $ 16,424 |
Contingent rentals | 2,877 | 2,558 | 2,456 |
$ 21,723 | $ 20,205 | $ 18,880 |
Note 10 - Franchise Operation61
Note 10 - Franchise Operations (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2015 | May. 31, 2015 | Dec. 28, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Jul. 31, 2013 | Dec. 27, 2015 | Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | Sep. 27, 2015 | |
Franchised Units [Member] | Ruths Chris Steak House [Member] | Ann Arbor, MI [Member] | |||||||||||
Number of Franchise Restaurants Opened During Period | 1 | ||||||||||
Franchised Units [Member] | Ruths Chris Steak House [Member] | Charleston, SC [Member] | |||||||||||
Number of Franchise Restaurants Opened During Period | 1 | ||||||||||
Franchised Units [Member] | Ruths Chris Steak House [Member] | International [Member] | |||||||||||
Number of Restaurants | 20 | 20 | |||||||||
Franchised Units [Member] | Ruths Chris Steak House [Member] | San Antonio, TX [Member] | |||||||||||
Number of Franchise Restaurants Opened During Period | 1 | ||||||||||
Franchised Units [Member] | Ruths Chris Steak House [Member] | Boise, ID [Member] | |||||||||||
Number of Franchise Restaurants Opened During Period | 1 | ||||||||||
Franchised Units [Member] | Ruths Chris Steak House [Member] | Panama City, Panama [Member] | |||||||||||
Number of Franchise Restaurants Opened During Period | 1 | ||||||||||
Franchised Units [Member] | Ruths Chris Steak House [Member] | Taipei, Taiwan [Member] | |||||||||||
Number of Franchise Restaurants Opened During Period | 1 | ||||||||||
Franchised Units [Member] | Ruths Chris Steak House [Member] | Dubai [Member] | |||||||||||
Number of Restaurants | 2 | ||||||||||
Number of Restaurants Closed During Period | 1 | ||||||||||
Franchised Units [Member] | Ruths Chris Steak House [Member] | |||||||||||
Number of Restaurants Acquired During Period | 1 | 0 | 0 | ||||||||
Number of Restaurants Sold During Period | 0 | 0 | 0 | ||||||||
Number of Franchise Restaurants Opened During Period | 3 | 3 | 4 | ||||||||
Number of Restaurants | 77 | 80 | 80 | 77 | 79 | ||||||
Number of Restaurants Closed During Period | 0 | 0 | |||||||||
Franchised Units [Member] | International [Member] | |||||||||||
Number of Restaurants | 20 | 20 | |||||||||
Ruths Chris Steak House [Member] | |||||||||||
Number of Restaurants Sold During Period | 0 | 0 | |||||||||
Royalty of Sales Percentage | 5.00% | ||||||||||
Advertising Fee Percentage | 1.00% | ||||||||||
Number of Restaurants | 143 | 148 | 148 | 143 | 146 | ||||||
Number of Restaurants Closed During Period | 0 | 0 |
Note 10 - Franchise Income (Det
Note 10 - Franchise Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income from existing franchise locations | $ 16,361 | $ 15,598 | $ 14,612 |
Opening and development fee income | 300 | 165 | 400 |
Total franchise income: | $ 16,661 | $ 15,763 | $ 15,012 |
Note 11 - Gain on Settlements63
Note 11 - Gain on Settlements, Commitments and Contingencies (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2013USD ($) | Sep. 29, 2013USD ($) | Dec. 27, 2015USD ($) | Dec. 28, 2014USD ($) | Dec. 29, 2013USD ($) | Dec. 30, 2012USD ($) | |
Discontinued Operations [Member] | ||||||
Gain (Loss) Related to Litigation Settlement | $ 437 | |||||
Loss Contingency, Claims Settled, Number | 2 | |||||
Gain (Loss) Related to Litigation Settlement | $ 2,200 | $ 1,719 | ||||
Litigation Settlement, Amount | $ (2,500) | |||||
Loss Contingency, Damages Sought, Value | $ 30,000 | |||||
Number of Suppliers | 2 |
Note 12 - Shareholders' Equit64
Note 12 - Shareholders' Equity (Details Textual) $ / shares in Units, $ in Millions | Mar. 04, 2016USD ($)$ / shares | Dec. 27, 2015USD ($)$ / shares | Sep. 27, 2015$ / shares | Jun. 28, 2015$ / shares | Mar. 29, 2015$ / shares | Dec. 28, 2014$ / shares | Sep. 28, 2014$ / shares | Jun. 29, 2014$ / shares | Mar. 30, 2014$ / shares | Dec. 27, 2015USD ($)$ / sharesshares | Dec. 28, 2014USD ($)$ / sharesshares | Dec. 29, 2013$ / shares | Nov. 17, 2014USD ($) | May. 31, 2013USD ($) |
The 2013 Share Repurchase Plan [Member] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 30 | |||||||||||||
Stock Repurchased During Period, Shares | shares | 866,410 | |||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 10.3 | |||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 11.87 | |||||||||||||
The 2014 Share Repurchase Plan [Member] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 50 | |||||||||||||
Stock Repurchased During Period, Shares | shares | 1,483,085 | |||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 23.8 | |||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 16.01 | |||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 21.1 | $ 21.1 | ||||||||||||
Subsequent Event [Member] | ||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.07 | |||||||||||||
Dividends Payable, Current | $ 2.4 | |||||||||||||
Common Stock, Number of Voting Rights Per Share | 1 | |||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.24 | $ 0.20 | $ 0.12 |
Note 12 - Dividends Declared (D
Note 12 - Dividends Declared (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Dividend Declared 1 [Member] | |||
Dividend Per Share (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.04 |
Record Date | Feb. 26, 2015 | Mar. 13, 2014 | May 16, 2013 |
Total Amount | $ 2,082 | $ 1,798 | $ 1,430 |
Payment Date | Mar. 12, 2015 | Mar. 27, 2014 | May 30, 2013 |
Dividends Declared 2 [Member] | |||
Dividend Per Share (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.04 |
Record Date | May 14, 2015 | May 15, 2014 | Aug. 15, 2013 |
Total Amount | $ 2,090 | $ 1,798 | $ 1,424 |
Payment Date | May 28, 2015 | May 29, 2014 | Aug. 29, 2013 |
Dividends Declared 3 [Member] | |||
Dividend Per Share (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.04 |
Record Date | Aug. 13, 2015 | Aug. 14, 2014 | Nov. 14, 2013 |
Total Amount | $ 2,108 | $ 1,778 | $ 1,424 |
Payment Date | Aug. 27, 2015 | Aug. 28, 2014 | Nov. 26, 2013 |
Dividends Declared 4 [Member] | |||
Dividend Per Share (in dollars per share) | $ 0.06 | $ 0.05 | |
Record Date | Nov. 19, 2015 | Nov. 20, 2014 | |
Total Amount | $ 2,069 | $ 1,764 | |
Payment Date | Dec. 3, 2015 | Dec. 4, 2014 |
Note 13 - Employee Benefit Pl66
Note 13 - Employee Benefit Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Defined Contribution Plan, Cost Recognized | $ 305 | $ 307 | $ 305 |
Note 14 - Incentive Stock Opt67
Note 14 - Incentive Stock Option Plans (Details Textual) - USD ($) | May. 22, 2008 | Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 25, 2005 |
Long-term Equity Incentive Plan 2005 [Member] | After Grant Date [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.333% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 214,567 | ||||
Long-term Equity Incentive Plan 2005 [Member] | Second Anniversary [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 54,095 | 125,932 | 155,441 | ||
Long-term Equity Incentive Plan 2005 [Member] | Between 2017 Anniversary Date and 2020 Anniversary Date [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 300,000 | ||||
Long-term Equity Incentive Plan 2005 [Member] | Between the 2018 Anniversary Date and the 2021 Anniversary Date [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 325,000 | ||||
Long-term Equity Incentive Plan 2005 [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Long-term Equity Incentive Plan 2005 [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Long-term Equity Incentive Plan 2005 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,400,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,500,000 | 2,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issuable | 1,400,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,100,000 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 893,662 | 275,794 | 247,225 | ||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 893,662 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,150,085 | 569,275 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years 14 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 2,800,000 | $ 1,900,000 | $ 3,300,000 | ||
Allocated Share-based Compensation Expense | 4,100,000 | 2,800,000 | 2,300,000 | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 700,000 | 2,100,000 | 900,000 | ||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | 7,900,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 13,100,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 863,000 | 6,300,000 | 273,000 | ||
Proceeds from Stock Options Exercised | $ 250,000 | $ 183,000 | $ 208,000 |
Note 14 - Summary of Non-vested
Note 14 - Summary of Non-vested Restricted Stock (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 27, 2015$ / sharesshares | |
Non-vested shares at beginning of year (in shares) | shares | 569,275 |
Non-vested shares at beginning of year (in dollars per share) | $ / shares | $ 10.46 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 893,662 |
Granted (in dollars per share) | $ / shares | $ 15.74 |
Vested (in shares) | shares | (312,852) |
Vested (in dollars per share) | $ / shares | $ 9.09 |
Non-vested shares at end of year (in shares) | shares | 1,150,085 |
Non-vested shares at end of year (in dollars per share) | $ / shares | $ 14.93 |
Note 14 - Summary of Stock Opti
Note 14 - Summary of Stock Option Activity (Details) | 12 Months Ended |
Dec. 27, 2015USD ($)$ / sharesshares | |
Outstanding at beginning of year (in shares) | shares | 439,880 |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 13.12 |
Granted (in shares) | shares | |
Granted (in dollars per share) | $ / shares | |
Exercised (in shares) | shares | (72,875) |
Exercised (in dollars per share) | $ / shares | $ 3.46 |
Forfeited (in shares) | shares | (104,257) |
Forfeited (in dollars per share) | $ / shares | $ 17.78 |
Outstanding at end of year (in shares) | shares | 262,748 |
Outstanding at end of year (in dollars per share) | $ / shares | $ 13.88 |
Outstanding at end of year | 1 year 251 days |
Outstanding at end of year | $ | $ 1,107,544 |
Options exercisable at year end (in shares) | shares | 262,748 |
Options exercisable at year end (in dollars per share) | $ / shares | $ 13.88 |
Options exercisable at year end | 1 year 251 days |
Options exercisable at year end | $ | $ 1,107,544 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | Dec. 27, 2015 | Dec. 28, 2014 |
Operating Loss Carryforwards | $ 85,200 | |
Tax Credit Carryforward, Amount | 9,300 | |
Unrecognized Tax Benefits | 607 | $ 958 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 398 |
Note 15 - Income Tax Expense (D
Note 15 - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income from continuing operations | $ 14,168 | $ 11,830 | $ 10,744 |
Loss from discontinued operations | (869) | (7,472) | (2,426) |
Total consolidated income tax expense | $ 13,299 | $ 4,358 | $ 8,318 |
Note 15 - Income Tax Expense Fr
Note 15 - Income Tax Expense From Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
U.S. Federal | $ 14,692 | $ 3,475 | $ 2,056 |
U.S. Federal | (3,445) | 6,447 | 6,708 |
U.S. Federal | 11,247 | 9,922 | 8,764 |
State | 2,697 | 562 | 136 |
State | (120) | 961 | 1,495 |
State | 2,577 | 1,523 | 1,631 |
Foreign | $ 344 | $ 385 | $ 349 |
Foreign | |||
Foreign | $ 344 | $ 385 | $ 349 |
17,733 | 4,422 | 2,541 | |
(3,565) | 7,408 | 8,203 | |
Income from continuing operations | $ 14,168 | $ 11,830 | $ 10,744 |
Note 15 - Income Tax Reconcilia
Note 15 - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Continuing Operations [Member] | |||
Income tax expense (benefit) at statutory rates | $ 15,517 | $ 13,489 | $ 12,333 |
State income taxes at state statutory rate, net of federal benefit | 2,010 | 1,813 | 1,444 |
Federal FICA tip credit net benefit | (3,124) | (2,814) | (2,634) |
State employment tax credits generated in prior years | (60) | $ (331) | (623) |
Increase to valuation allowance | 75 | 243 | |
Other | (250) | $ (327) | (19) |
Income from continuing operations | $ 14,168 | $ 11,830 | $ 10,744 |
Effective tax rate | 32.00% | 30.70% | 30.50% |
Other, primarily federal FICA tip credit net benefit | $ (3,124) | $ (2,814) | $ (2,634) |
Discontinued Operations [Member] | |||
Income tax expense (benefit) at statutory rates | (361) | (6,204) | (1,550) |
State income taxes at state statutory rate, net of federal benefit | (411) | (701) | (198) |
Federal FICA tip credit net benefit | (97) | (567) | (678) |
Income from continuing operations | $ (869) | $ (7,472) | $ (2,426) |
Effective tax rate | 84.30% | 42.20% | 54.80% |
Other, primarily federal FICA tip credit net benefit | $ (97) | $ (567) | $ (678) |
Income from continuing operations | $ 14,168 | $ 11,830 | $ 10,744 |
Note 15 - Deferred Tax Assets (
Note 15 - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Dec. 28, 2014 |
Accounts payable and accrued expenses | $ 8,222 | $ 3,775 |
Deferred rent | 8,655 | 9,911 |
Net state operating loss carryforwards | 3,281 | 2,923 |
Tax credit carryforwards | 9,339 | 6,236 |
Property and equipment | 5,098 | 10,589 |
Other | 209 | 335 |
Total gross deferred tax assets | 34,804 | 33,769 |
Less valuation allowance | (979) | (947) |
Net deferred tax assets | 33,825 | 32,822 |
Intangible assets | (14,516) | (3,993) |
Total gross deferred tax liabilities | (14,516) | (3,993) |
Net deferred tax assets | $ 19,309 | $ 28,829 |
Note 15 - Unrecognized Tax Bene
Note 15 - Unrecognized Tax Benefit Reconciliation (Details) $ in Thousands | 12 Months Ended |
Dec. 27, 2015USD ($) | |
Unrecognized tax benefits balance at December 28, 2014 | $ 958 |
Gross increases for tax positions of prior years | 107 |
Settlements | (458) |
Unrecognized tax benefits balance at December 27, 2015 | $ 607 |
Note 16 - Earnings Per Share (D
Note 16 - Earnings Per Share (Details Textual) - $ / shares | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 46,117 | 153,613 | 202,824 |
Weighted Average Exercise Prices Anti Dilutive Stock Options | $ 18.84 | $ 18.70 | $ 18.67 |
Note 16 - Computation of Basic
Note 16 - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income from continuing operations | $ 30,166 | $ 26,710 | $ 24,493 |
Loss from discontinued operations, net of income taxes | (162) | (10,255) | (2,004) |
Net income | $ 30,004 | $ 16,455 | $ 22,489 |
Weighted average number of common shares outstanding - basic (in shares) | 34,018,582 | 34,955,760 | 34,761,160 |
Continuing operations (in dollars per share) | $ 0.88 | $ 0.76 | $ 0.71 |
Discontinued operations (in dollars per share) | 0 | (0.29) | (0.06) |
Basic earnings per common share (in dollars per share) | $ 0.88 | $ 0.47 | $ 0.65 |
Dilutive shares (in shares) | 415,825 | 459,723 | 1,023,270 |
Weighted-average number of common shares outstanding - diluted (in shares) | 34,434,407 | 35,415,483 | 35,784,430 |
Continuing operations (in dollars per share) | $ 0.87 | $ 0.75 | $ 0.69 |
Discontinued operations (in dollars per share) | 0 | (0.29) | (0.06) |
Diluted earnings per common share (in dollars per share) | $ 0.87 | $ 0.46 | $ 0.63 |
Note 17 - Segment Information78
Note 17 - Segment Information (Details Textual) | 12 Months Ended | ||
Dec. 27, 2015 | Sep. 27, 2015 | Dec. 28, 2014 | |
Entity Operated Units [Member] | Ruths Chris Steak House [Member] | |||
Number of Restaurants | 67 | 66 | 65 |
Entity Managed Units [Member] | Ruths Chris Steak House [Member] | |||
Number of Restaurants | 1 | 1 | 1 |
Franchised Units [Member] | Ruths Chris Steak House [Member] | |||
Number of Restaurants | 80 | 79 | 77 |
Ruths Chris Steak House [Member] | |||
Number of Restaurants | 148 | 146 | 143 |
Number of Operating Segments | 2 |
Note 17 - Segment Information,
Note 17 - Segment Information, Operating Profit (Loss) (Details) - USD ($) | 12 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | |||
Revenues: | |||
Revenues | $ 354,398,000 | $ 327,731,000 | $ 306,539,000 |
Segment profits: | |||
Gross profit | 80,450,000 | 68,230,000 | 67,489,000 |
Capital expenditures: | |||
Capital expenditure | 18,934,000 | 14,867,000 | 11,242,000 |
Operating Segments [Member] | Franchise Operations [Member] | |||
Revenues: | |||
Revenues | 16,661,000 | 15,763,000 | 15,012,000 |
Segment profits: | |||
Gross profit | 16,661,000 | 15,763,000 | 15,012,000 |
Segment Reconciling Items [Member] | |||
Revenues: | |||
Revenues | 2,374,000 | 2,603,000 | 803,000 |
Segment profits: | |||
Gross profit | 97,111,000 | 83,993,000 | 82,501,000 |
Corporate, Non-Segment [Member] | |||
Capital expenditures: | |||
Capital expenditure | 1,133,000 | 1,097,000 | 1,723,000 |
Mitchells Restaurants [Member] | |||
Capital expenditures: | |||
Capital expenditure | 225,000 | 1,401,000 | 2,346,000 |
Revenues | 373,433,000 | 346,097,000 | 322,354,000 |
Unallocated operating income | 2,374,000 | 2,603,000 | 803,000 |
Marketing and advertising expenses | (10,925,000) | (10,076,000) | (9,341,000) |
General and administrative costs | (30,242,000) | (24,311,000) | (27,808,000) |
Depreciation and amortization expenses | (12,520,000) | (10,917,000) | (10,229,000) |
Pre-opening costs | $ (1,032,000) | $ (1,630,000) | (691,000) |
Gain (Loss) Related to Litigation Settlement | 1,719,000 | ||
Interest expense, net | $ (790,000) | $ (1,159,000) | (1,640,000) |
Other income (expense) | 358,000 | 37,000 | (77,000) |
Income from continuing operations before income tax expense | 44,334,000 | 38,540,000 | 35,237,000 |
Capital expenditure | $ 20,292,000 | $ 17,365,000 | $ 15,311,000 |
Note 17 - Segment Information80
Note 17 - Segment Information, Assets (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Dec. 28, 2014 |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | ||
Assets | $ 168,766 | $ 155,757 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Assets | 2,444 | 2,151 |
Corporate, Non-Segment [Member] | ||
Assets | 7,828 | 16,711 |
Deferred income taxes - unallocated | 19,309 | 28,829 |
Mitchells Restaurants [Member] | ||
Assets | 250 | 15,119 |
Assets | 198,597 | 218,567 |
Deferred income taxes - unallocated | $ 19,309 | $ 28,829 |
Note 18 - Summary of Accounts R
Note 18 - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Dec. 28, 2014 |
Bank credit card receivables | $ 11,417 | $ 11,262 |
Landlord contributions | 396 | 443 |
Franchise fees | 2,306 | 2,116 |
Trade | $ 751 | 682 |
Refundable income tax | 2,335 | |
Receivable from gift card issuances | $ 929 | 2,216 |
Other | 3,434 | 2,164 |
Allowance for doubtful accounts | (732) | (760) |
$ 18,501 | $ 20,458 |
Note 18 - Summary of Other Asse
Note 18 - Summary of Other Assets (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Dec. 28, 2014 |
Deposits | $ 702 | $ 764 |
Deferred financing costs, net | 481 | 901 |
Other | 33 | 39 |
$ 1,216 | $ 1,704 |
Note 19 - Quarterly Financial83
Note 19 - Quarterly Financial Data (Unaudited) (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 28, 2014 | Sep. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Mitchells Restaurants [Member] | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (1,800,000) | ||||
Asset Impairment Charges | $ 15,300,000 | $ 15,300,000 | $ 750,000 | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (1,031,000) | $ (17,727,000) | $ (4,430,000) |
Note 19 - Quarterly Results of
Note 19 - Quarterly Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 27, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 27, 2015 | |
Revenues | $ 104,747 | $ 80,292 | $ 91,049 | $ 97,344 | $ 373,433 |
Cost and expenses | (91,750) | (76,137) | (79,645) | (81,136) | (328,667) |
Operating income | 12,997 | 4,155 | 11,404 | 16,208 | 44,766 |
Interest expense, net | (202) | (188) | (174) | (226) | (790) |
Debt issuance costs written off | 318 | 9 | 16 | 15 | 358 |
Income from continuing operations before income tax expense | 13,113 | 3,976 | 11,246 | 15,997 | 44,334 |
Income from continuing operations | 4,023 | 1,338 | 3,577 | 5,229 | 14,168 |
Income from continuing operations | 9,090 | 2,638 | 7,669 | 10,768 | 30,166 |
Loss from discontinued operations, net of income taxes | 420 | (73) | (153) | (357) | (162) |
Net income | $ 9,510 | $ 2,565 | $ 7,516 | $ 10,411 | $ 30,004 |
Continuing operations (in dollars per share) | $ 0.27 | $ 0.08 | $ 0.22 | $ 0.31 | $ 0.88 |
Discontinued operations (in dollars per share) | 0.01 | 0 | 0 | (0.01) | 0 |
Basic earnings per common share (in dollars per share) | 0.28 | 0.08 | 0.22 | 0.30 | 0.88 |
Continuing operations (in dollars per share) | 0.27 | 0.08 | 0.22 | 0.31 | 0.87 |
Discontinued operations (in dollars per share) | 0.01 | 0 | 0 | (0.01) | 0 |
Diluted earnings per common share (in dollars per share) | 0.28 | 0.08 | 0.22 | 0.30 | 0.87 |
Common Stock, Dividends, Per Share, Declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.24 |
Other income (expense) | $ 358 |