Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 29, 2015 | 5-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Diversified Restaurant Holdings, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -15 | |
Entity Common Stock, Shares Outstanding | 26,189,944 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1394156 | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | 29-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Current assets | ||
Cash and cash equivalents | $19,334,527 | $18,688,281 |
Investments | 0 | 2,917,232 |
Accounts receivable | 402,182 | 1,417,510 |
Inventory | 1,421,557 | 1,335,774 |
Prepaid assets | 306,496 | 397,715 |
Total current assets | 21,464,762 | 24,756,512 |
Deferred income taxes | 3,249,734 | 2,960,640 |
Property and equipment, net | 73,387,487 | 71,508,950 |
Intangible assets, net | 2,933,973 | 2,916,498 |
Goodwill | 10,998,630 | 10,998,630 |
Other long-term assets | 360,910 | 305,804 |
Total assets | 112,395,496 | 113,447,034 |
Current liabilities | ||
Accounts payable | 3,530,511 | 7,043,143 |
Accrued compensation | 2,019,674 | 2,786,830 |
Other accrued liabilities | 1,651,025 | 1,357,510 |
Current portion of long-term debt | 8,815,098 | 8,155,903 |
Current portion of deferred rent | 285,711 | 377,812 |
Total current liabilities | 16,302,019 | 19,721,198 |
Deferred rent, less current portion | 3,152,137 | 3,051,445 |
Unfavorable operating leases | 674,871 | 693,497 |
Other long-term liabilities | 3,709,236 | 3,212,376 |
Long-term debt, less current portion | 55,373,623 | 53,612,496 |
Total liabilities | 79,211,886 | 80,291,012 |
Commitments and contingencies (Notes 9 and 10) | ||
Stockholders' equity | ||
Common stock - $0.0001 par value; 100,000,000 shares authorized; 26,152,569 and 26,149,824, respectively, issued and outstanding | 2,582 | 2,582 |
Additional paid-in capital | 35,743,016 | 35,668,001 |
Accumulated other comprehensive loss | -485,225 | -175,156 |
Accumulated deficit | -2,076,763 | -2,339,405 |
Total stockholders' equity | 33,183,610 | 33,156,022 |
Total liabilities and stockholders' equity | $112,395,496 | $113,447,034 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 26,152,569 | 26,149,824 |
Common stock, shares outstanding | 26,152,569 | 26,149,824 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Income Statement [Abstract] | ||
Revenue | $39,440,332 | $30,473,014 |
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||
Food, beverage, and packaging costs | 11,447,903 | 8,705,423 |
Compensation costs | 10,154,792 | 7,993,667 |
Occupancy costs | 2,372,467 | 1,655,551 |
Other operating costs | 7,960,549 | 6,280,095 |
General and administrative expenses | 2,496,887 | 2,112,562 |
Pre-opening costs | 1,093,500 | 544,021 |
Depreciation and amortization | 3,157,322 | 2,247,460 |
Loss on disposal of property and equipment | 148,408 | 156,065 |
Total operating expenses | 38,831,828 | 29,694,844 |
Operating profit | 608,504 | 778,170 |
Interest expense | -432,223 | -476,401 |
Other income, net | 17,003 | 13,030 |
Income before income taxes | 193,284 | 314,799 |
Income tax benefit | -69,358 | -53,058 |
Net income | $262,642 | $367,857 |
Basic earnings per share (in dollars per share) | $0.01 | $0.01 |
Fully diluted earnings per share (in dollars per share) | $0.01 | $0.01 |
Weighted average number of common shares outstanding | ||
Basic (in shares) | 26,149,184 | 26,048,805 |
Diluted (in shares) | 26,248,424 | 26,153,595 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $262,642 | $367,857 |
Other comprehensive income (loss) | ||
Unrealized changes in fair value of interest rate swaps, net of tax of $161,691, and $15,633, respectively | -313,873 | 30,347 |
Unrealized changes in fair value of investments, net of tax of $1,959 and $11,876, respectively | 3,804 | 23,055 |
Total other comprehensive income (loss) | -310,069 | 53,402 |
Comprehensive income (loss) | ($47,427) | $421,259 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized changes in fair value of interest rate swaps, tax | $161,691 | $15,633 |
Unrealized changes in fair value of investments, tax | $1,959 | $11,876 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at Dec. 29, 2013 | $33,961,563 | $2,580 | $35,275,255 | ($245,364) | ($1,070,908) |
Balance (in shares) at Dec. 29, 2013 | 26,049,578 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Forfeitures of restricted shares (in shares) | -1,500 | ||||
Employee stock purchase plan (in shares) | 3,045 | ||||
Employee stock purchase plan | 15,015 | 15,015 | |||
Share-based compensation | 85,320 | ||||
Allocated Share-based Compensation Expense | 85,320 | ||||
Other comprehensive income (loss) | 53,402 | 53,402 | |||
Net income | 367,857 | 367,857 | |||
Balance at Mar. 30, 2014 | 34,483,157 | 2,580 | 35,375,590 | -191,962 | -703,051 |
Balance (in shares) at Mar. 30, 2014 | 26,051,123 | ||||
Balance at Dec. 28, 2014 | 33,156,022 | 2,582 | 35,668,001 | -175,156 | -2,339,405 |
Balance (in shares) at Dec. 28, 2014 | 26,149,824 | 26,149,824 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Forfeitures of restricted shares (in shares) | -1,917 | ||||
Employee stock purchase plan (in shares) | 4,662 | ||||
Employee stock purchase plan | 55,793 | ||||
Share-based compensation | 19,222 | 19,222 | |||
Allocated Share-based Compensation Expense | 55,793 | ||||
Other comprehensive income (loss) | -310,069 | -310,069 | |||
Net income | 262,642 | 262,642 | |||
Balance at Mar. 29, 2015 | $33,183,610 | $2,582 | $35,743,016 | ($485,225) | ($2,076,763) |
Balance (in shares) at Mar. 29, 2015 | 26,152,569 | 26,152,569 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Net income | ||
Net income | $262,642 | $367,857 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 3,157,322 | 2,247,460 |
Amortization of loan fees | 6,954 | 21,525 |
Realized loss on investments | 0 | 19,175 |
Sale Leaseback Transaction, Current Period Gain Recognized | -39,302 | 0 |
Loss on disposal of property and equipment | 148,408 | 156,065 |
Share-based compensation | 55,793 | 85,320 |
Deferred income taxes | -129,358 | -92,337 |
Changes in operating assets and liabilities that provided (used) cash | ||
Accounts receivable | 1,015,328 | 666,918 |
Inventory | -85,783 | -74,185 |
Prepaid assets | 91,219 | 250,660 |
Intangible assets | -68,796 | -27,849 |
Other long-term assets | -55,106 | -21,635 |
Accounts payable | -904,717 | -1,175,071 |
Accrued liabilities | -486,179 | 368,723 |
Deferred rent | 8,591 | -138,327 |
Net cash provided by operating activities | 3,055,620 | 2,654,299 |
Cash flows from investing activities | ||
Purchases of investments | 0 | -2,500,600 |
Proceeds from sale of investments | 2,917,522 | 3,955,969 |
Purchases of property and equipment | -7,766,440 | -5,626,473 |
Net cash used in investing activities | -4,848,918 | -4,171,104 |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt | 4,420,322 | 2,240,580 |
Repayments of long-term debt | -2,000,000 | -1,657,683 |
Payment of loan fees | 0 | -118,739 |
Proceeds from employee stock purchase plan | 19,222 | 15,015 |
Net cash provided by financing activities | 2,439,544 | 479,173 |
Net increase (decrease) in cash and cash equivalents | 646,246 | -1,037,632 |
Cash and cash equivalents, beginning of period | 18,688,281 | 9,562,473 |
Cash and cash equivalents, end of period | $19,334,527 | $8,524,841 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 29, 2015 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Nature of Business | |
Diversified Restaurant Holdings, Inc. (“DRH”) is a fast-growing restaurant company operating two complementary concepts: Bagger Dave’s Burger Tavern ® (“Bagger Dave’s”) and Buffalo Wild Wings ® Grill & Bar (“BWW”). As the creator, developer, and operator of Bagger Dave’s and as one of the largest franchisees of BWW, we provide a unique guest experience in a casual and inviting environment. We were incorporated in 2006 and are headquartered in the Detroit metropolitan area. As of March 29, 2015, we had 68 locations in Florida, Illinois, Indiana, and Michigan. | |
DRH and its wholly-owned subsidiaries (collectively, the “Company”), AMC Group, Inc. (“AMC”), AMC Wings, Inc. (“WINGS”), AMC Burgers, Inc. (“BURGERS”), and AMC Real Estate, Inc. (“REAL ESTATE”) own, operate, and manage Bagger Dave's and DRH-owned BWW restaurants located throughout Florida, Illinois, Indiana, and Michigan. | |
DRH originated the Bagger Dave’s concept with our first restaurant opening in January 2008 in Berkley, Michigan. Currently, there are 26 Bagger Dave’s, 17 in Michigan and nine in Indiana. The Company expects to operate between 38 and 42 Bagger Dave’s locations by the end of 2017. | |
DRH is also one of the largest BWW franchisees and currently operates 42 DRH-owned BWW restaurants (19 in Michigan, 14 in Florida, four in Illinois, and five in Indiana), including the nation’s largest BWW, based on square footage, in downtown Detroit, Michigan. We remain on track to fulfill our area development agreement (“ADA”) with Buffalo Wild Wings International, Inc. (“BWLD”) and expect to operate 52 DRH-owned BWW restaurants by the end of 2017, exclusive of potential additional BWW restaurant acquisitions. | |
The following organizational chart outlines the current corporate structure of DRH. A brief textual description of the entities follows the organizational chart. DRH is incorporated in Nevada. | |
AMC was formed on March 28, 2007 and serves as our operational and administrative center. AMC renders management, operational support, and advertising services to WINGS, BURGERS, REAL ESTATE and their subsidiaries. Services rendered by AMC include marketing, restaurant operations, restaurant management consultation, hiring and training of management and staff, and other management services reasonably required in the ordinary course of restaurant operations. | |
BURGERS was formed on March 12, 2007 and serves as a holding company for our Bagger Dave’s restaurants. Bagger Dave’s Franchising Corporation, a subsidiary of BURGERS, was formed to act as the franchisor for the Bagger Dave’s concept and has rights to franchise in Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, and Wisconsin. We do not intend to pursue franchise development at this time. | |
WINGS was formed on March 12, 2007 and serves as a holding company for our DRH-owned BWW restaurants. We are economically dependent on retaining our franchise rights with BWLD. The franchise agreements have specific initial term expiration dates ranging from September 2020 through February 2025, depending on the date each was executed and the duration of its initial term. The franchise agreements are renewable at the option of the franchisor and are generally renewable if the franchisee has complied with the franchise agreement. When factoring in any applicable renewals, the franchise agreements have specific expiration dates ranging from December 2025 through February 2050. We believe we are in compliance with the terms of these agreements. | |
REAL ESTATE was formed on March 18, 2013 and serves as the holding company for the real estate properties owned by DRH. REAL ESTATE’s portfolio currently includes three properties, two Bagger Dave’s restaurants and one DRH-owned BWW restaurants. The DRH-owned BWW and one of the Bagger Dave's will be sold as part of the sale leaseback transaction occurring in Second Quarter 2015. The DRH-owned BWW is currently under construction and the Bagger Dave's restaurants are open and operated by DRH. For additional information pertaining to the sale-leaseback transaction, refer to the 2014 10-K filed on March 13, 2015. | |
Basis of Presentation | |
The consolidated financial statements as of March 29, 2015 and December 28, 2014, and for the three-month periods ended March 29, 2015 and March 30, 2014, have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information as of March 29, 2015 and for the three-month periods ended March 29, 2015 and March 30, 2014 is unaudited, but, in the opinion of management, reflects all adjustments and accruals necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods. | |
The consolidated financial information as of December 28, 2014 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 28 2014, which is included in Item 8 in the Fiscal 2014 Annual Report on Form 10-K, and should be read in conjunction with such consolidated financial statements. | |
The results of operations for the three-month period ended March 29, 2015 are not necessarily indicative of the results of operations that may be achieved for the entire year ending December 27, 2015. | |
Segment Reporting | |
The Company has two operating segments, Bagger Dave’s and BWW. The brands operate within the ultra-casual, full-service dining industry, providing similar products to similar customers. The brands also possess similar economic characteristics, resulting in similar long-term expected financial performance. Sales from external customers are derived principally from food and beverage sales. We do not rely on any major customers as a source of sales. We believe we meet the criteria for aggregating our operating segments into a single reporting segment. | |
Concentration Risks | |
Approximately 84.8% and 81.4% of the Company's revenues are generated from food and beverage sales of restaurants located in the Midwest region during the three-month periods ended March 29, 2015 and March 30, 2014, respectively. | |
Investments | |
The Company’s investment securities are classified as available-for-sale. Investments classified as available-for-sale are available to be sold in the future in response to the Company’s liquidity needs, changes in market interest rates, tax strategies, and asset-liability management strategies, among other reasons. Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of taxes, reported in the accumulated other comprehensive income (loss) component of stockholders’ equity, and accordingly, have no effect on net income. Realized gains or losses on sale of investments are determined on the basis of specific costs of the investments. Dividend income is recognized when declared and interest income is recognized when earned. Discount or premium on debt securities purchased at other than par value are amortized using the effective yield method. See Note 2 for details. | |
Goodwill | |
Goodwill is not amortized and represents the excess of cost over the fair value of identified net assets of businesses acquired. Goodwill is subject to an annual impairment analysis or more frequently if indicators of impairment exist. At March 29, 2015 and December 28, 2014, we had goodwill of $11.0 million, respectively that was assigned to our BWW operating segment. | |
The impairment analysis, if necessary, consists of a two-step process. The first step is to compare the fair value of the reporting unit to its carrying value, including goodwill. We estimate fair value using market information (market approach) and discounted cash flow projections (income approach). The income approach uses the reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that reflects market conditions. The projection uses management’s best estimates of projected revenue, costs and cash expenditures, including an estimate of new restaurant openings and related capital expenditures. Other significant estimates also include terminal growth rates and working capital requirements. We supplement our estimate of fair value under the income approach by using a market approach which estimates fair value by applying multiples to the reporting unit’s projected operating performance. The multiples are derived from comparable publicly traded companies with similar characteristics to the reporting unit. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment analysis must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of goodwill with the carrying amount of that goodwill. If the carrying amount of the goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. As of December December 28, 2014, based on our quantitative analysis, goodwill was considered recoverable. At March 29, 2015, there were no impairment indicators warranting an analysis. | |
Impairment of Long-Lived Assets and Definite-Lived Intangible Assets | |
We review long-lived assets and definite-live intangible assets quarterly to determine if triggering events have occurred which would require a test to determine if the carrying amount of these assets may not be recoverable based on estimated future cash flows. Assets are reviewed at the lowest level for which cash flows can be identified, which is at the individual restaurant level. In the absence of extraordinary circumstances, restaurants are included in the impairment analysis after they have been open for two years. We evaluate the recoverability of a restaurant’s long-lived assets, including buildings, intangibles, leasehold improvements, furniture, fixtures, and equipment over the remaining life of the primary asset in the asset group, after considering the potential impact of planned operational improvements, marketing programs, and anticipated changes in the trade area. In determining future cash flows, significant estimates are made by management with respect to future operating results for each restaurant over the remaining life of the primary asset in the asset group. If assets are determined to be impaired, the impairment charge is measured by calculating the amount by which the asset carrying amount exceeds its fair value based on our estimate of discounted future cash flows. The determination of asset fair value is also subject to significant judgment. No impairments were recognized for quarter-ended March 29, 2015 or year ended December 28, 2014. We are currently monitoring several restaurants in regards to the valuation of long-lived assets and have developed plans to improve operating results. Based on our current estimates of the future operating results of these restaurants, we believe that the assets at these restaurants are not impaired. As we periodically refine our estimated future operating results, changes in our estimates and assumptions may cause us to realize impairment charges in the future that could be material. | |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. | |
Interest Rate Swap Agreements | |
The Company utilizes interest rate swap agreements with RBS Citizens, N.A. (“RBS”) to fix interest rates on a portion of the Company’s portfolio of variable rate debt, which reduces exposure to interest rate fluctuations. The Company does not use any other types of derivative financial instruments to hedge such exposures, nor does it use derivatives for speculative purposes. The Company’s interest rate swap agreements qualify for hedge accounting. As such, the Company records the change in the fair value of its swap agreements as a component of accumulated other comprehensive income (loss), net of tax. The Company records the fair value of its interest swaps on the Consolidated Balance Sheet in other long-term assets or other long-term liabilities depending on the fair value of the swaps. See Note 6 and Note 13 for additional information on the interest rate swap agreements. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is currently effective for annual periods beginning after December 15, 2016, and interim periods therein. We evaluated the impact of the pending adoption of ASU 2014-09, and based on the nature of our business we do not expect the standard will have a significant impact on our consolidated financial statements. |
Investments
Investments | 3 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
INVESTMENTS | INVESTMENTS | ||||||||||||||||
Investments consist of available-for-sale securities that are carried at fair value. Available-for-sale securities are classified as current assets based upon our intent and ability to use any and all of the securities as necessary to satisfy the operational requirements of our business. Based on the call date of the investments, all securities have maturities of one year or less. Unrealized losses are charged against net earnings when a decline in fair value is determined to be other than temporary. In the First Quarter 2015, DRH opted to discontinue investing in debt securities and determined investing in a highly liquid money market account was better fit for the Company's liquidity needs. As of March 29, 2015, the outstanding investments as of December 28, 2014 had fully matured and have been redeemed. | |||||||||||||||||
The amortized cost, gross unrealized holding gains, gross unrealized holding loss, and fair value of available-for-sale securities by type are as follows: | |||||||||||||||||
28-Dec-14 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Loss | Fair Value | ||||||||||||||
Debt securities: | |||||||||||||||||
Obligations of states/municipals | 1,190,261 | — | (4,278 | ) | 1,185,983 | ||||||||||||
Corporate securities | 1,732,734 | — | (1,485 | ) | 1,731,249 | ||||||||||||
Total debt securities | $ | 2,922,995 | $ | — | $ | (5,763 | ) | $ | 2,917,232 | ||||||||
As of December 28, 2014, $2.9 million of investments were in a loss position with a cumulative unrealized loss of $5,763. The Company may had incurred future impairment charges if decline in market values continued and/or worsened and the impairments would no longer be considered temporary. All investments with unrealized losses have been in such position for less than 12 months. | |||||||||||||||||
Gross unrealized gains and losses on available-for-sale securities, recorded in accumulated other comprehensive income (loss), as of December 28, 2014, was as follows: | |||||||||||||||||
December 28, | |||||||||||||||||
2014 | |||||||||||||||||
Unrealized gains | $ | — | |||||||||||||||
Unrealized loss | (5,763 | ) | |||||||||||||||
Net unrealized loss | (5,763 | ) | |||||||||||||||
Deferred federal income tax benefit | 1,959 | ||||||||||||||||
Net unrealized loss on investments, net of deferred income tax | $ | (3,804 | ) |
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT | ||||||||
Property and equipment are comprised of the following assets: | |||||||||
29-Mar-15 | 28-Dec-14 | ||||||||
Land | $ | 3,087,514 | $ | 3,087,514 | |||||
Building | 2,339,219 | 2,339,219 | |||||||
Equipment | 31,196,205 | 29,251,119 | |||||||
Furniture and fixtures | 7,919,393 | 7,458,292 | |||||||
Leasehold improvements | 61,049,580 | 56,971,815 | |||||||
Restaurant construction in progress | 1,305,099 | 4,731,045 | |||||||
Total | 106,897,010 | 103,839,004 | |||||||
Less accumulated depreciation | (33,509,523 | ) | (32,330,054 | ) | |||||
Property and equipment, net | $ | 73,387,487 | $ | 71,508,950 | |||||
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS | ||||||||
Intangible assets are comprised of the following: | |||||||||
29-Mar-15 | 28-Dec-14 | ||||||||
Amortized intangibles: | |||||||||
Franchise fees | $ | 640,641 | $ | 647,363 | |||||
Trademark | 66,826 | 64,934 | |||||||
Non-compete agreement | 76,560 | 76,560 | |||||||
Favorable lease | 239,000 | 239,000 | |||||||
Loan fees | 130,377 | 130,377 | |||||||
Total | 1,153,404 | 1,158,234 | |||||||
Less accumulated amortization | (410,534 | ) | (377,839 | ) | |||||
Amortized intangibles, net | 742,870 | 780,395 | |||||||
Unamortized intangibles: | |||||||||
Liquor licenses | 2,191,103 | 2,136,103 | |||||||
Total intangibles, net | $ | 2,933,973 | $ | 2,916,498 | |||||
Amortization expense for the three-month periods ended March 29, 2015 and March 30, 2014 was $25,742 and $14,378, respectively. Amortization of favorable leases and loan fees are reflected as part of occupancy and interest expense, respectively. | |||||||||
Based on the current intangible assets and their estimated useful lives, future intangible-related expense for the next five years is projected as follows: | |||||||||
Year | Amount | ||||||||
Remainder of 2015 | $ | 76,813 | |||||||
2016 | 86,276 | ||||||||
2017 | 84,740 | ||||||||
2018 | 83,065 | ||||||||
2019 | 80,334 | ||||||||
2020 and thereafter | 331,642 | ||||||||
Total | $ | 742,870 | |||||||
The aggregate weighted-average amortization period for intangible assets is 7.3 years. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 29, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS |
Fees for monthly accounting and financial statement services are paid to an entity owned by a member of the DRH Board of Directors and a stockholder of the Company. Fees paid during the three-month periods ended March 29, 2015 and March 30, 2014, were $138,620, and $125,988, respectively. | |
See Note 9 for related party operating lease transactions. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
LONG-TERM DEBT | LONG-TERM DEBT | ||||||||
Long-term debt consists of the following obligations: | |||||||||
29-Mar-15 | 28-Dec-14 | ||||||||
Note payable - $56.0 million term loan; payable to RBS with a senior lien on all the Company’s personal property and fixtures. Scheduled monthly principal payments are approximately $666,667 plus accrued interest through maturity in December 2019. Interest is charged based on one-month LIBOR plus an applicable margin, which ranges from 2.25% to 3.15%, depending on the lease adjusted leverage ratio defined in the terms of the agreement. The rate at March 29, 2015 was approximately 2.7%. | $ | 54,000,000 | 56,000,000 | ||||||
Note payable - $20.0 million development line of credit; payable to RBS with a senior lien on all the Company’s personal property and fixtures. Payments are due monthly once fully drawn and matures in December 2019. Interest is charged based on one-month LIBOR plus an applicable margin, which ranges from 2.25% to 3.15%, depending on the lease adjusted leverage ratio defined in the terms of the agreement. Once fully drawn, payments will be due monthly; the note matures December 2019. | $ | 10,188,721 | 5,768,399 | ||||||
Total long-term debt | 64,188,721 | 61,768,399 | |||||||
Less current portion | (8,815,098 | ) | (8,155,903 | ) | |||||
Long-term debt, net of current portion | $ | 55,373,623 | $ | 53,612,496 | |||||
On December 16, 2014, the Company entered into a $77.0 million senior secured credit facility with RBS (the “December 2014 Senior Secured Credit Facility”). The December 2014 Senior Secured Credit Facility consist of a $56.0 million term loan (the “December 2014 Term Loan”), a $20.0 million development line of credit (the “December 2014 DLOC”), and a $1.0 million revolving line of credit (the “December 2014 RLOC”). The Company used approximately $35.5 million of the December 2014 Term Loan to refinance existing outstanding debt with RBS and used approximately $20.0 million of the December 2014 Term Loan to refinance and term out the outstanding balance of the existing development line of credit loan between the Company and RBS. The remaining balance of the December 2014 Term Loan, approximately $0.5 million, was used to pay the fees, costs, and expenses associated with the closing of the December 2014 Senior Secured Credit Facility. The December 2014 Term Loan is for a period of 5 years. Payments of principal are based upon an 84-month straight-line amortization schedule, with monthly principal payments of $666,667 plus accrued interest. The interest rate for the December 2014 Term Loan is LIBOR plus an applicable margin, which ranges from 2.25% to 3.15%, depending on the lease adjusted leverage ratio defined in the terms of the agreement. The entire remaining outstanding principal and accrued interest on the December 2014 Term Loan is due and payable on the maturity date of December 16, 2019. The December 2014 DLOC is for a term of two years and is convertible upon maturity into a term note based on the terms of the agreement at which time monthly principal payments will be due based on a 84-month straight-line amortization schedule, plus interest, through maturity on December 16, 2014. The December 2014 RLOC is for a term of two years and no amounts were outstanding as of March 29, 2015. | |||||||||
Based on the long-term debt terms that existed at March 29, 2015, the scheduled principal maturities for the next five years and thereafter are summarized as follows: | |||||||||
Year | Amount | ||||||||
Remainder of 2015 | $ | 6,407,549 | |||||||
2016 | 9,630,195 | ||||||||
2017 | 9,630,195 | ||||||||
2018 | 9,630,195 | ||||||||
2019 | 28,890,587 | ||||||||
2020 and thereafter | — | ||||||||
Total | $ | 64,188,721 | |||||||
For the three-month periods ended March 29, 2015 and March 30, 2014, interest expense was $432,223 and $476,401, respectively. | |||||||||
The current debt agreement contains various customary financial covenants generally based on the performance of the specific borrowing entity and other related entities. The more significant covenants consist of a minimum debt service coverage ratio and a maximum lease adjusted leverage ratio, both of which we are in compliance with as of March 29, 2015. | |||||||||
At March 29, 2015, the Company has five interest rate swap agreements to fix a portion of the interest rates on its variable rate debt. The swap agreements all qualify for hedge accounting. The swap agreements have a combined notional amount of $57.4 million at March 29, 2015. Under the swap agreements, the Company receives interest at the one-month LIBOR and pays a fixed rate. The April 2012 swap has a rate of 1.4% (notional amount of $9.3 million) and expires April 2019, the October 2012 swap has a rate of 0.9% (notional amount of $3.9 million) and expires October 2017, the July 2013 swap has a rate of 1.4% (notional amount of $10.8 million) and expires April 2018, the May 2014 forward swap has a rate of 1.54% (notional amount of $12.9 million) and expires April 2018, and a January 2015 forward swap has a rate of 1.82% (notional amount of $20.5 million) and expires December 2019. The fair value of these swap agreements was a liability of $735,190 and $259,626 at March 29, 2015 and December 28, 2014, respectively. Since these swap agreements qualify for hedge accounting, the changes in fair value are recorded in other comprehensive income (loss), net of tax. See Note 1 and Note 13 for additional information pertaining to interest rate swaps. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||
Mar. 29, 2015 | |||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION | ||
The Company established a Stock Incentive Plan in 2011 (“Stock Incentive Plan”) to attract and retain directors, consultants, and team members and to align their interests with the interests of the Company’s shareholders through the opportunity for increased stock ownership. The plan permits the grant and award of 750,000 shares of common stock by way of stock options and/or restricted stock. Stock options must be awarded at exercise prices at least equal to or greater than 100.0% of the fair market value of the shares on the date of grant. The options will expire no later than ten years from the date of grant, with vesting terms to be defined at grant date, ranging from a vesting schedule based on performance to a vesting schedule that extends over a period of time as selected by the Compensation Committee of the Board of Directors (the “Committee”) or another committee as determined by the Board of Directors. The Committee also determines the grant, issuance, retention, and vesting timing and conditions of awards of restricted stock. The Committee may place limitations, such as continued employment, passage of time, and/or performance measures, on restricted stock. Awards of restricted stock may not provide for vesting or settlement in full of restricted stock over a period of less than one year from the date the award is made. | |||
During the first fiscal quarter of 2015 and 2014, no restricted shares were granted. Restricted shares are granted with a per share purchase price at 100.0% of the fair market value on the date of grant. Based on the Stock Award Agreement, shares vest ratably over a 3 years or 1 year period or upon the 3 years anniversary of the granted shares, the vesting terms are determined by the Committee. Unrecognized stock-based compensation expense of $484,437 at March 29, 2015 will be recognized over the remaining weighted-average vesting period of 1.7 years. The total fair value of shares vested during the three-month periods ended March 29, 2015 and March 30, 2014 was $15,436 and $46,167, respectively. Under the Stock Incentive Plan, there are 498,720 shares available for future awards at March 29, 2015. | |||
The Company also reserved 250,000 shares of common stock for issuance under the Employee Stock Purchase Plan (“ESPP”). The ESPP is available to team members subject to employment eligibility requirements. Participants may purchase common stock at 85.0% of the lesser of the start or end price for the offering period. The plan has four offering periods, each start/end dates coincide with the fiscal quarter and are awarded on the last day of the offering period. During the three-month periods ended March 29, 2015 and March 30, 2014, we issued 4,662 and 3,045 shares, respectively. Under the ESPP, there are 229,550 shares available for future awards at March 29, 2015. | |||
The following table presents the restricted shares transactions during the three months ended March 29, 2015: | |||
Number of | |||
Restricted | |||
Stock Shares | |||
Unvested, December 28, 2014 | 164,867 | ||
Granted | — | ||
Vested | (3,334 | ) | |
Expired/Forfeited | (1,917 | ) | |
Unvested, March 29, 2015 | 159,616 | ||
The following table presents the restricted shares transactions during the three months ended March 30, 2014: | |||
Number of | |||
Restricted | |||
Stock Shares | |||
Unvested, December 39, 2013 | 116,667 | ||
Granted | — | ||
Vested | (11,875 | ) | |
Expired/Forfeited | (1,500 | ) | |
Unvested, March 30, 2014 | 103,292 | ||
On July 30, 2010, DRH granted options for the purchase of 210,000 shares of common stock to the directors of the Company. These options are fully vested and expire six years from issuance, July 30, 2016. Once vested, the options can be exercised at a price of $2.50 per share. At March 29, 2015, 210,000 shares of authorized common stock are reserved for issuance to provide for the exercise of these options. The intrinsic value of outstanding options is $338,100 and $525,000 as of March 29, 2015 and March 30, 2014, respectively. | |||
Stock-based compensation of $55,793 and $85,320 was recognized during the three-month periods ended March 29, 2015 and March 30, 2014, respectively, as compensation cost in the Consolidated Statements of Operations and as additional paid-in capital on the Consolidated Statement of Stockholders' Equity to reflect the fair value of shares vested. | |||
The Company has authorized 10,000,000 shares of preferred stock at a par value of $0.0001. No preferred shares are issued or outstanding as of March 29, 2015. Any preferences, rights, voting powers, restrictions, dividend limitations, qualifications, and terms and conditions of redemption shall be set forth and adopted by a Board of Directors' resolution prior to issuance of any series of preferred stock. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||||
Mar. 29, 2015 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
INCOME TAXES | INCOME TAXES | |||||||||
The benefit for income taxes consists of the following components for the three-month periods ended March 29, 2015 and March 30, 2014, respectively: | ||||||||||
Three Months Ended | ||||||||||
29-Mar-15 | 30-Mar-14 | |||||||||
Federal: | ||||||||||
Current | $ | — | $ | — | ||||||
Deferred | (148,937 | ) | (61,703 | ) | ||||||
State: | ||||||||||
Current | 60,000 | 39,279 | ||||||||
Deferred | 19,579 | (30,634 | ) | |||||||
Income tax benefit | $ | (69,358 | ) | $ | (53,058 | ) | ||||
The benefit for income taxes is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes before income taxes. The items causing this difference are as follows: | ||||||||||
29-Mar-15 | 30-Mar-14 | |||||||||
Income tax provision at federal statutory rate | $ | 65,716 | $ | 107,032 | ||||||
State income tax provision | 79,579 | 5,706 | ||||||||
Permanent differences | 96,095 | 67,754 | ||||||||
Tax credits | (310,748 | ) | (233,550 | ) | ||||||
Income tax benefit | $ | (69,358 | ) | $ | (53,058 | ) | ||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company expects the deferred tax assets to be fully realizable within the next several years. Significant components of the Company's deferred income tax assets and liabilities are summarized as follows: | ||||||||||
29-Mar-15 | 28-Dec-14 | |||||||||
Deferred tax assets: | ||||||||||
Net operating loss carry forwards | $ | 412,768 | $ | 915,900 | ||||||
Deferred rent expense | 471,869 | 481,543 | ||||||||
Start-up costs | 96,769 | 99,261 | ||||||||
Tax credit carry forwards | 3,728,464 | 3,417,716 | ||||||||
Interest rate swaps | 249,968 | 88,121 | ||||||||
Investments | — | 1,959 | ||||||||
Sale leaseback deferred gain | 774,832 | 788,195 | ||||||||
Stock-based compensation | 330,977 | 310,790 | ||||||||
Other | 437,586 | 397,117 | ||||||||
Total deferred tax assets | 6,503,233 | 6,500,602 | ||||||||
Deferred tax liabilities: | ||||||||||
Tax depreciation in excess of book | 2,720,374 | 3,069,315 | ||||||||
Goodwill and other | 533,125 | 470,647 | ||||||||
Total deferred tax liabilities | 3,253,499 | 3,539,962 | ||||||||
Net deferred income tax asset | $ | 3,249,734 | $ | 2,960,640 | ||||||
If deemed necessary by management, the Company establishes valuation allowances in accordance with the provisions of Accounting Standards Codification (“ASC”) 740, Income Taxes ("ASC 740") issued by FASB. Management continually reviews the likelihood that deferred tax assets will be realized and the Company recognizes these benefits only as reassessment indicates that it is more likely than not that such tax benefits will be realized. | ||||||||||
The Company expects to use net operating loss and general business tax credit carryforwards before their 20-year expiration. As of March 29, 2015, the Company has available federal net operating loss carryforwards of approximately $1.8 million. Of that amount, approximately $0.6 million relates to stock-based compensation tax deductions in excess of book compensation expense that will be credited to additional paid in capital in future periods when such deductions reduce taxes payable as determined based on a "with-and-without" approach. Net operating losses relating to such benefits are not included in the table above. General business tax credits of $3.7 million will expire between 2028 and 2036. | ||||||||||
The Company applies the provisions of ASC 740 regarding the accounting for uncertainty in income taxes. There are no amounts recorded on the Company's consolidated financial statements for uncertain positions. The Company classifies all interest and penalties as income tax expense. There are no accrued interest amounts or penalties related to uncertain tax positions as of March 29, 2015. | ||||||||||
The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions, and is subject to U.S. Federal, state, and local income tax examinations for tax years 2011 through 2013. |
Operating_Leases_Including_Rel
Operating Leases (Including Related Party) | 3 Months Ended | |||
Mar. 29, 2015 | ||||
Leases, Operating [Abstract] | ||||
OPERATING LEASES (INCLUDING RELATED PARTY) | OPERATING LEASES (INCLUDING RELATED PARTY) | |||
Lease terms range from five to 24 years, generally include renewal options, and frequently require us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs. Some restaurant leases provide for contingent rental payments based on sales thresholds. | ||||
Total rent expense was $1.9 million and $1.3 million for the three-month periods ended March 29, 2015 and March 30, 2014, respectively (of which $0 and $34,821, respectively, were paid to a related party). | ||||
Scheduled future minimum lease payments for each of the five years and thereafter for non-cancelable operating leases with initial or remaining lease terms in excess of one year at March 29, 2015 are summarized as follows: | ||||
Year | Amount | |||
Remainder of 2015 | $ | 5,974,021 | ||
2016 | 8,006,510 | |||
2017 | 7,771,040 | |||
2018 | 7,416,526 | |||
2019 | 6,912,322 | |||
2020 and thereafter | 39,319,097 | |||
Total | $ | 75,399,516 | ||
Scheduled future minimum lease payments for each of the five years and thereafter for non-cancelable operating leases for restaurants under development with initial or remaining lease terms in excess of one year at March 29, 2015 are summarized as follows: | ||||
Year | Amount | |||
Remainder of 2015 | $ | 263,039 | ||
2016 | 753,689 | |||
2017 | 754,536 | |||
2018 | 755,382 | |||
2019 | 743,108 | |||
2020 and thereafter | 5,331,672 | |||
Total | $ | 8,601,426 | ||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES |
The Company’s ADA requires DRH to open 32 restaurants by March 1, 2017. Failure to develop restaurants in accordance with the schedule detailed in the agreement could lead to potential penalties of up to $50,000 for each undeveloped restaurant, payment of the initial franchise fees for each undeveloped restaurant, and loss of rights to development territory. As of March 29, 2015 we have opened 24 of the 32 restaurants required by the ADA. With the remaining eight restaurants, along with two additional franchise agreements, we expect the Company will operate 52 BWW restaurants by 2017, exclusive of potential additional BWW restaurant acquisitions. | |
The Company is required to pay BWLD royalties (5.0% of net sales) and advertising fund contributions (3.0% of net sales globally and 0.5% of net sales for certain cities) for the term of the individual franchise agreements. The Company incurred royalty fees of $1.6 million and $1.3 million for the three-month periods ended March 29, 2015 and March 30, 2014, respectively. Advertising fund contribution expenses were $1.0 million and $767,157 for the three-month periods ended March 29, 2015 and March 30, 2014, respectively. | |
The Company is required by its various BWLD franchise agreements to modernize the restaurants during the term of the agreements. The individual agreements generally require improvements between the fifth and tenth year to meet the most current design model that BWLD has approved. The modernization costs for a restaurant can range from approximately $50,000 to approximately $1.1 million depending on an individual restaurant's needs. | |
The Company is subject to ordinary and routine legal proceedings, as well as demands, claims and threatened litigation, which arise in the ordinary course of its business. The ultimate outcome of any litigation is uncertain. While unfavorable outcomes could have adverse effects on the Company's business, results of operations, and financial condition, management believes that the Company is adequately insured and does not believe an unfavorable outcome of any pending or threatened proceedings is probable or reasonably possible. Therefore, no separate reserve or disclosure has been established for these types of legal proceedings. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | ||||||||
The following is a reconciliation of basic and fully diluted earnings per common share for the three months ended March 29, 2015 and March 30, 2014: | |||||||||
Three months ended | |||||||||
29-Mar-15 | 30-Mar-14 | ||||||||
Income available to common stockholders | $ | 262,642 | $ | 367,857 | |||||
Weighted-average shares outstanding | 26,149,184 | 26,048,805 | |||||||
Effect of dilutive securities | 99,240 | 104,790 | |||||||
Weighted-average shares outstanding - assuming dilution | 26,248,424 | 26,153,595 | |||||||
Earnings per share | $ | 0.01 | $ | 0.01 | |||||
Earnings per share - assuming dilution | $ | 0.01 | $ | 0.01 | |||||
Supplemental_Cash_Flows_Inform
Supplemental Cash Flows Information | 3 Months Ended |
Mar. 29, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOWS INFORMATION | SUPPLEMENTAL CASH FLOWS INFORMATION |
Other Cash Flows Information | |
Cash paid for interest was $419,674 and $464,115 during the three-month periods ended March 29, 2015 and March 30, 2014 respectively. | |
Cash paid for income taxes was $60,000 and $0 during the three-month periods ended March 29, 2015 and March 30, 2014, respectively. | |
Supplemental Schedule of Non-Cash Operating, Investing, and Financing Activities | |
Noncash investing activities for property and equipment not yet paid during the three months ended March 29, 2015 and March 30, 2014, was $0.4 million and $1.0 million, respectively. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
The guidance for fair value measurements, FASB ASC 820, Fair Value Measurements and Disclosures, establishes the authoritative definition of fair value, sets out a framework for measuring fair value, and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three-tier fair value hierarchy based upon observable and non-observable inputs as follows: | |||||||||||||||||
● | Level 1 | Quoted market prices in active markets for identical assets and liabilities; | |||||||||||||||
● | Level 2 | Inputs, other than level 1 inputs, either directly or indirectly observable; and | |||||||||||||||
● | Level 3 | Unobservable inputs developed using internal estimates and assumptions (there is little or no market data) which reflect those that market participants would use. | |||||||||||||||
As of March 29, 2015 and December 28, 2014, respectively, our financial instruments consisted of cash and cash equivalents; including money market funds, accounts receivable, available-for-sale investments, accounts payable, and debt. The fair value of cash and cash equivalents, accounts receivable, and accounts payable approximate carrying value, due to their short-term nature. | |||||||||||||||||
The fair value of our interest rate swaps is determined based on valuation models, which utilize quoted interest rate curves to calculate the forward value and then discount the forward values to the present period. The Company measures the fair value using broker quotes which are generally based on market observable inputs including yield curves and the value associated with counterparty credit risk. Our interest rate swaps are classified as a Level 2 measurement as these securities are not actively traded in the market, but are observable based on transactions associated with bank loans with similar terms and maturities. See Note 1 and Note 6 for additional information pertaining to interest rates swaps. | |||||||||||||||||
The estimated fair values of the Company’s investment portfolio are based on prices provided by a third party pricing service and a third party investment manager. The prices provided by these services are based on quoted market prices, when available, non-binding broker quotes, or matrix pricing. The third party pricing service and the third party investment manager provide a single price or quote per security and the Company has not historically adjusted security prices. The Company obtains an understanding of the methods, models and inputs used by the third party pricing service and the third party investment manager, and has controls in place to validate that amounts provided represent fair values. Our investments are classified as a Level 2 measurement as these securities are not actively traded in the market, but are observable based on the quoted prices provided by our Portfolio managers. | |||||||||||||||||
As of March 29, 2015 and December 28, 2014, our total debt was approximately $64.2 million and $61.8 million, respectively, which approximated fair value. The Company estimates the fair value of its fixed-rate debt using discounted cash flow analysis based on the Company’s incremental borrowing rate (Level 2). | |||||||||||||||||
There were no transfers between levels of the fair value hierarchy during the three months ended March 29, 2015 and the fiscal year ended December 28, 2014. | |||||||||||||||||
The following table presents the fair values for those assets and liabilities measured on a recurring basis as of March 29, 2015: | |||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Asset/(Liability) | |||||||||||||
Total | |||||||||||||||||
Cash equivalents | $ | 10,000,000 | $ | — | $ | — | $ | 10,000,000 | |||||||||
Interest rate swaps | — | (735,190 | ) | — | (735,190 | ) | |||||||||||
Total | $ | 10,000,000 | $ | (735,190 | ) | $ | — | $ | 9,264,810 | ||||||||
The following table presents the fair values for those assets and liabilities measured on a recurring basis as of December 28, 2014: | |||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Asset/(Liability) | |||||||||||||
Total | |||||||||||||||||
Interest rate swaps | $ | — | $ | (259,626 | ) | $ | — | $ | (259,626 | ) | |||||||
Debt securities | |||||||||||||||||
Obligations of states/municipals | — | 1,185,983 | — | 1,185,983 | |||||||||||||
Corporate securities | — | 1,731,249 | — | 1,731,249 | |||||||||||||
Total debt securities | — | 2,917,232 | — | 2,917,232 | |||||||||||||
Total | $ | — | $ | 2,657,606 | $ | — | $ | 2,657,606 | |||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
The following table summarizes each component of Accumulated Other Comprehensive Income (loss): | |||||||||||||
Three Months Ended March 29, 2015 | |||||||||||||
Interest Rate Swap | Investments | Total | |||||||||||
Beginning balance | $ | (171,352 | ) | $ | (3,804 | ) | $ | (175,156 | ) | ||||
Gain(loss) recorded to other comprehensive income | (475,564 | ) | 5,763 | (469,801 | ) | ||||||||
Tax benefit (expense) | $ | 161,691 | $ | (1,959 | ) | $ | 159,732 | ||||||
Other comprehensive income (loss) | (313,873 | ) | 3,804 | (310,069 | ) | ||||||||
Accumulated OCI | $ | (485,225 | ) | $ | — | $ | (485,225 | ) | |||||
Three Months Ended March 30, 2014 | |||||||||||||
Interest Rate Swap | Investments | Total | |||||||||||
Beginning balance | $ | (216,188 | ) | $ | (29,176 | ) | $ | (245,364 | ) | ||||
Gain recorded to other comprehensive income | 45,980 | 34,931 | 80,911 | ||||||||||
Tax expense | $ | (15,633 | ) | $ | (11,876 | ) | $ | (27,509 | ) | ||||
Other comprehensive income | 30,347 | 23,055 | 53,402 | ||||||||||
Accumulated OCI | $ | (185,841 | ) | $ | (6,121 | ) | $ | (191,962 | ) |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 29, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
On February 17, 2015, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) to acquire substantially all of the assets of Screamin' Hot Concepts, LLC, Screamin' Hot Nampa, LLC, Screamin’ Hot Twin Falls, LLC, each an Idaho limited liability company, and Screamin’ Hot Reno, LLC, a Nevada limited liability company. BWLD had the right of first refusal, exercisable for a period of 45 days, to acquire the restaurants on the same terms proposed in the Purchase Agreement. On April 8, 2015, we received notice from the BWLD of its intent to exercise its right of first refusal. As a result, the Company is relieved of its obligations under the Purchase Agreement. | |
On April 2, 2015, the Company entered into an program to repurchase up to $1.0 million of the Company’s common stock from time to time in open market transactions at prevailing market prices or by other means in accordance with applicable regulations of the SEC. The Company has entered into a Rule 10b5-1 purchase plan with a broker to facilitate the repurchase program. |
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 29, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The consolidated financial statements as of March 29, 2015 and December 28, 2014, and for the three-month periods ended March 29, 2015 and March 30, 2014, have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial information as of March 29, 2015 and for the three-month periods ended March 29, 2015 and March 30, 2014 is unaudited, but, in the opinion of management, reflects all adjustments and accruals necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods. | |
The consolidated financial information as of December 28, 2014 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 28 2014, which is included in Item 8 in the Fiscal 2014 Annual Report on Form 10-K, and should be read in conjunction with such consolidated financial statements. | |
The results of operations for the three-month period ended March 29, 2015 are not necessarily indicative of the results of operations that may be achieved for the entire year ending December 27, 2015. | |
Segment Reporting | Segment Reporting |
The Company has two operating segments, Bagger Dave’s and BWW. The brands operate within the ultra-casual, full-service dining industry, providing similar products to similar customers. The brands also possess similar economic characteristics, resulting in similar long-term expected financial performance. Sales from external customers are derived principally from food and beverage sales. We do not rely on any major customers as a source of sales. We believe we meet the criteria for aggregating our operating segments into a single reporting segment. | |
Concentration Risks | Concentration Risks |
Approximately 84.8% and 81.4% of the Company's revenues are generated from food and beverage sales of restaurants located in the Midwest region during the three-month periods ended March 29, 2015 and March 30, 2014, respectively. | |
Investments | Investments |
The Company’s investment securities are classified as available-for-sale. Investments classified as available-for-sale are available to be sold in the future in response to the Company’s liquidity needs, changes in market interest rates, tax strategies, and asset-liability management strategies, among other reasons. Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of taxes, reported in the accumulated other comprehensive income (loss) component of stockholders’ equity, and accordingly, have no effect on net income. Realized gains or losses on sale of investments are determined on the basis of specific costs of the investments. Dividend income is recognized when declared and interest income is recognized when earned. Discount or premium on debt securities purchased at other than par value are amortized using the effective yield method. | |
Goodwill | Goodwill |
Goodwill is not amortized and represents the excess of cost over the fair value of identified net assets of businesses acquired. Goodwill is subject to an annual impairment analysis or more frequently if indicators of impairment exist. At March 29, 2015 and December 28, 2014, we had goodwill of $11.0 million, respectively that was assigned to our BWW operating segment. | |
The impairment analysis, if necessary, consists of a two-step process. The first step is to compare the fair value of the reporting unit to its carrying value, including goodwill. We estimate fair value using market information (market approach) and discounted cash flow projections (income approach). The income approach uses the reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that reflects market conditions. The projection uses management’s best estimates of projected revenue, costs and cash expenditures, including an estimate of new restaurant openings and related capital expenditures. Other significant estimates also include terminal growth rates and working capital requirements. We supplement our estimate of fair value under the income approach by using a market approach which estimates fair value by applying multiples to the reporting unit’s projected operating performance. The multiples are derived from comparable publicly traded companies with similar characteristics to the reporting unit. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment analysis must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of goodwill with the carrying amount of that goodwill. If the carrying amount of the goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. As of December December 28, 2014, based on our quantitative analysis, goodwill was considered recoverable. At March 29, 2015, there were no impairment indicators warranting an analysis. | |
Impairment of Long-Lived Assets and Definite-Lived Intangible Assets | Impairment of Long-Lived Assets and Definite-Lived Intangible Assets |
We review long-lived assets and definite-live intangible assets quarterly to determine if triggering events have occurred which would require a test to determine if the carrying amount of these assets may not be recoverable based on estimated future cash flows. Assets are reviewed at the lowest level for which cash flows can be identified, which is at the individual restaurant level. In the absence of extraordinary circumstances, restaurants are included in the impairment analysis after they have been open for two years. We evaluate the recoverability of a restaurant’s long-lived assets, including buildings, intangibles, leasehold improvements, furniture, fixtures, and equipment over the remaining life of the primary asset in the asset group, after considering the potential impact of planned operational improvements, marketing programs, and anticipated changes in the trade area. In determining future cash flows, significant estimates are made by management with respect to future operating results for each restaurant over the remaining life of the primary asset in the asset group. If assets are determined to be impaired, the impairment charge is measured by calculating the amount by which the asset carrying amount exceeds its fair value based on our estimate of discounted future cash flows. The determination of asset fair value is also subject to significant judgment. No impairments were recognized for quarter-ended March 29, 2015 or year ended December 28, 2014. We are currently monitoring several restaurants in regards to the valuation of long-lived assets and have developed plans to improve operating results. Based on our current estimates of the future operating results of these restaurants, we believe that the assets at these restaurants are not impaired. As we periodically refine our estimated future operating results, changes in our estimates and assumptions may cause us to realize impairment charges in the future that could be material. | |
Use of Estimates | Use of Estimates |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. | |
Interest Rate Swap Agreements | Interest Rate Swap Agreements |
The Company utilizes interest rate swap agreements with RBS Citizens, N.A. (“RBS”) to fix interest rates on a portion of the Company’s portfolio of variable rate debt, which reduces exposure to interest rate fluctuations. The Company does not use any other types of derivative financial instruments to hedge such exposures, nor does it use derivatives for speculative purposes. The Company’s interest rate swap agreements qualify for hedge accounting. As such, the Company records the change in the fair value of its swap agreements as a component of accumulated other comprehensive income (loss), net of tax. The Company records the fair value of its interest swaps on the Consolidated Balance Sheet in other long-term assets or other long-term liabilities depending on the fair value of the swaps. See Note 6 and Note 13 for additional information on the interest rate swap agreements. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is currently effective for annual periods beginning after December 15, 2016, and interim periods therein. We evaluated the impact of the pending adoption of ASU 2014-09, and based on the nature of our business we do not expect the standard will have a significant impact on our consolidated financial statements. |
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Available-for-sale Securities | The amortized cost, gross unrealized holding gains, gross unrealized holding loss, and fair value of available-for-sale securities by type are as follows: | ||||||||||||||||
28-Dec-14 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Loss | Fair Value | ||||||||||||||
Debt securities: | |||||||||||||||||
Obligations of states/municipals | 1,190,261 | — | (4,278 | ) | 1,185,983 | ||||||||||||
Corporate securities | 1,732,734 | — | (1,485 | ) | 1,731,249 | ||||||||||||
Total debt securities | $ | 2,922,995 | $ | — | $ | (5,763 | ) | $ | 2,917,232 | ||||||||
Unrealized Gain (Loss) on Investments | Gross unrealized gains and losses on available-for-sale securities, recorded in accumulated other comprehensive income (loss), as of December 28, 2014, was as follows: | ||||||||||||||||
December 28, | |||||||||||||||||
2014 | |||||||||||||||||
Unrealized gains | $ | — | |||||||||||||||
Unrealized loss | (5,763 | ) | |||||||||||||||
Net unrealized loss | (5,763 | ) | |||||||||||||||
Deferred federal income tax benefit | 1,959 | ||||||||||||||||
Net unrealized loss on investments, net of deferred income tax | $ | (3,804 | ) |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | Property and equipment are comprised of the following assets: | ||||||||
29-Mar-15 | 28-Dec-14 | ||||||||
Land | $ | 3,087,514 | $ | 3,087,514 | |||||
Building | 2,339,219 | 2,339,219 | |||||||
Equipment | 31,196,205 | 29,251,119 | |||||||
Furniture and fixtures | 7,919,393 | 7,458,292 | |||||||
Leasehold improvements | 61,049,580 | 56,971,815 | |||||||
Restaurant construction in progress | 1,305,099 | 4,731,045 | |||||||
Total | 106,897,010 | 103,839,004 | |||||||
Less accumulated depreciation | (33,509,523 | ) | (32,330,054 | ) | |||||
Property and equipment, net | $ | 73,387,487 | $ | 71,508,950 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets are comprised of the following: | ||||||||
29-Mar-15 | 28-Dec-14 | ||||||||
Amortized intangibles: | |||||||||
Franchise fees | $ | 640,641 | $ | 647,363 | |||||
Trademark | 66,826 | 64,934 | |||||||
Non-compete agreement | 76,560 | 76,560 | |||||||
Favorable lease | 239,000 | 239,000 | |||||||
Loan fees | 130,377 | 130,377 | |||||||
Total | 1,153,404 | 1,158,234 | |||||||
Less accumulated amortization | (410,534 | ) | (377,839 | ) | |||||
Amortized intangibles, net | 742,870 | 780,395 | |||||||
Unamortized intangibles: | |||||||||
Liquor licenses | 2,191,103 | 2,136,103 | |||||||
Total intangibles, net | $ | 2,933,973 | $ | 2,916,498 | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the current intangible assets and their estimated useful lives, future intangible-related expense for the next five years is projected as follows: | ||||||||
Year | Amount | ||||||||
Remainder of 2015 | $ | 76,813 | |||||||
2016 | 86,276 | ||||||||
2017 | 84,740 | ||||||||
2018 | 83,065 | ||||||||
2019 | 80,334 | ||||||||
2020 and thereafter | 331,642 | ||||||||
Total | $ | 742,870 | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Long-term Debt | |||||||||
29-Mar-15 | 28-Dec-14 | ||||||||
Note payable - $56.0 million term loan; payable to RBS with a senior lien on all the Company’s personal property and fixtures. Scheduled monthly principal payments are approximately $666,667 plus accrued interest through maturity in December 2019. Interest is charged based on one-month LIBOR plus an applicable margin, which ranges from 2.25% to 3.15%, depending on the lease adjusted leverage ratio defined in the terms of the agreement. The rate at March 29, 2015 was approximately 2.7%. | $ | 54,000,000 | 56,000,000 | ||||||
Note payable - $20.0 million development line of credit; payable to RBS with a senior lien on all the Company’s personal property and fixtures. Payments are due monthly once fully drawn and matures in December 2019. Interest is charged based on one-month LIBOR plus an applicable margin, which ranges from 2.25% to 3.15%, depending on the lease adjusted leverage ratio defined in the terms of the agreement. Once fully drawn, payments will be due monthly; the note matures December 2019. | $ | 10,188,721 | 5,768,399 | ||||||
Total long-term debt | 64,188,721 | 61,768,399 | |||||||
Less current portion | (8,815,098 | ) | (8,155,903 | ) | |||||
Long-term debt, net of current portion | $ | 55,373,623 | $ | 53,612,496 | |||||
Schedule of Maturities of Long-term Debt | |||||||||
Year | Amount | ||||||||
Remainder of 2015 | $ | 6,407,549 | |||||||
2016 | 9,630,195 | ||||||||
2017 | 9,630,195 | ||||||||
2018 | 9,630,195 | ||||||||
2019 | 28,890,587 | ||||||||
2020 and thereafter | — | ||||||||
Total | $ | 64,188,721 | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||
Mar. 29, 2015 | |||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Nonvested Restricted Stock Shares Activity | The following table presents the restricted shares transactions during the three months ended March 29, 2015: | ||
Number of | |||
Restricted | |||
Stock Shares | |||
Unvested, December 28, 2014 | 164,867 | ||
Granted | — | ||
Vested | (3,334 | ) | |
Expired/Forfeited | (1,917 | ) | |
Unvested, March 29, 2015 | 159,616 | ||
The following table presents the restricted shares transactions during the three months ended March 30, 2014: | |||
Number of | |||
Restricted | |||
Stock Shares | |||
Unvested, December 39, 2013 | 116,667 | ||
Granted | — | ||
Vested | (11,875 | ) | |
Expired/Forfeited | (1,500 | ) | |
Unvested, March 30, 2014 | 103,292 | ||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||||
Mar. 29, 2015 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The benefit for income taxes consists of the following components for the three-month periods ended March 29, 2015 and March 30, 2014, respectively: | |||||||||
Three Months Ended | ||||||||||
29-Mar-15 | 30-Mar-14 | |||||||||
Federal: | ||||||||||
Current | $ | — | $ | — | ||||||
Deferred | (148,937 | ) | (61,703 | ) | ||||||
State: | ||||||||||
Current | 60,000 | 39,279 | ||||||||
Deferred | 19,579 | (30,634 | ) | |||||||
Income tax benefit | $ | (69,358 | ) | $ | (53,058 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation | The items causing this difference are as follows: | |||||||||
29-Mar-15 | 30-Mar-14 | |||||||||
Income tax provision at federal statutory rate | $ | 65,716 | $ | 107,032 | ||||||
State income tax provision | 79,579 | 5,706 | ||||||||
Permanent differences | 96,095 | 67,754 | ||||||||
Tax credits | (310,748 | ) | (233,550 | ) | ||||||
Income tax benefit | $ | (69,358 | ) | $ | (53,058 | ) | ||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred income tax assets and liabilities are summarized as follows: | |||||||||
29-Mar-15 | 28-Dec-14 | |||||||||
Deferred tax assets: | ||||||||||
Net operating loss carry forwards | $ | 412,768 | $ | 915,900 | ||||||
Deferred rent expense | 471,869 | 481,543 | ||||||||
Start-up costs | 96,769 | 99,261 | ||||||||
Tax credit carry forwards | 3,728,464 | 3,417,716 | ||||||||
Interest rate swaps | 249,968 | 88,121 | ||||||||
Investments | — | 1,959 | ||||||||
Sale leaseback deferred gain | 774,832 | 788,195 | ||||||||
Stock-based compensation | 330,977 | 310,790 | ||||||||
Other | 437,586 | 397,117 | ||||||||
Total deferred tax assets | 6,503,233 | 6,500,602 | ||||||||
Deferred tax liabilities: | ||||||||||
Tax depreciation in excess of book | 2,720,374 | 3,069,315 | ||||||||
Goodwill and other | 533,125 | 470,647 | ||||||||
Total deferred tax liabilities | 3,253,499 | 3,539,962 | ||||||||
Net deferred income tax asset | $ | 3,249,734 | $ | 2,960,640 | ||||||
Operating_Leases_Including_Rel1
Operating Leases (Including Related Party) (Tables) | 3 Months Ended | |||
Mar. 29, 2015 | ||||
Leases, Operating [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | Scheduled future minimum lease payments for each of the five years and thereafter for non-cancelable operating leases with initial or remaining lease terms in excess of one year at March 29, 2015 are summarized as follows: | |||
Year | Amount | |||
Remainder of 2015 | $ | 5,974,021 | ||
2016 | 8,006,510 | |||
2017 | 7,771,040 | |||
2018 | 7,416,526 | |||
2019 | 6,912,322 | |||
2020 and thereafter | 39,319,097 | |||
Total | $ | 75,399,516 | ||
Scheduled future minimum lease payments for each of the five years and thereafter for non-cancelable operating leases for restaurants under development with initial or remaining lease terms in excess of one year at March 29, 2015 are summarized as follows: | ||||
Year | Amount | |||
Remainder of 2015 | $ | 263,039 | ||
2016 | 753,689 | |||
2017 | 754,536 | |||
2018 | 755,382 | |||
2019 | 743,108 | |||
2020 and thereafter | 5,331,672 | |||
Total | $ | 8,601,426 | ||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of basic and fully diluted earnings per common share for the three months ended March 29, 2015 and March 30, 2014: | ||||||||
Three months ended | |||||||||
29-Mar-15 | 30-Mar-14 | ||||||||
Income available to common stockholders | $ | 262,642 | $ | 367,857 | |||||
Weighted-average shares outstanding | 26,149,184 | 26,048,805 | |||||||
Effect of dilutive securities | 99,240 | 104,790 | |||||||
Weighted-average shares outstanding - assuming dilution | 26,248,424 | 26,153,595 | |||||||
Earnings per share | $ | 0.01 | $ | 0.01 | |||||
Earnings per share - assuming dilution | $ | 0.01 | $ | 0.01 | |||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the fair values for those assets and liabilities measured on a recurring basis as of March 29, 2015: | ||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Asset/(Liability) | |||||||||||||
Total | |||||||||||||||||
Cash equivalents | $ | 10,000,000 | $ | — | $ | — | $ | 10,000,000 | |||||||||
Interest rate swaps | — | (735,190 | ) | — | (735,190 | ) | |||||||||||
Total | $ | 10,000,000 | $ | (735,190 | ) | $ | — | $ | 9,264,810 | ||||||||
The following table presents the fair values for those assets and liabilities measured on a recurring basis as of December 28, 2014: | |||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Asset/(Liability) | |||||||||||||
Total | |||||||||||||||||
Interest rate swaps | $ | — | $ | (259,626 | ) | $ | — | $ | (259,626 | ) | |||||||
Debt securities | |||||||||||||||||
Obligations of states/municipals | — | 1,185,983 | — | 1,185,983 | |||||||||||||
Corporate securities | — | 1,731,249 | — | 1,731,249 | |||||||||||||
Total debt securities | — | 2,917,232 | — | 2,917,232 | |||||||||||||
Total | $ | — | $ | 2,657,606 | $ | — | $ | 2,657,606 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes each component of Accumulated Other Comprehensive Income (loss): | ||||||||||||
Three Months Ended March 29, 2015 | |||||||||||||
Interest Rate Swap | Investments | Total | |||||||||||
Beginning balance | $ | (171,352 | ) | $ | (3,804 | ) | $ | (175,156 | ) | ||||
Gain(loss) recorded to other comprehensive income | (475,564 | ) | 5,763 | (469,801 | ) | ||||||||
Tax benefit (expense) | $ | 161,691 | $ | (1,959 | ) | $ | 159,732 | ||||||
Other comprehensive income (loss) | (313,873 | ) | 3,804 | (310,069 | ) | ||||||||
Accumulated OCI | $ | (485,225 | ) | $ | — | $ | (485,225 | ) | |||||
Three Months Ended March 30, 2014 | |||||||||||||
Interest Rate Swap | Investments | Total | |||||||||||
Beginning balance | $ | (216,188 | ) | $ | (29,176 | ) | $ | (245,364 | ) | ||||
Gain recorded to other comprehensive income | 45,980 | 34,931 | 80,911 | ||||||||||
Tax expense | $ | (15,633 | ) | $ | (11,876 | ) | $ | (27,509 | ) | ||||
Other comprehensive income | 30,347 | 23,055 | 53,402 | ||||||||||
Accumulated OCI | $ | (185,841 | ) | $ | (6,121 | ) | $ | (191,962 | ) |
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
Mar. 29, 2015 | Dec. 28, 2014 | Mar. 30, 2014 | Dec. 31, 2017 | |
segment | restaurant | |||
restaurant | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 68 | |||
Number of operating segments | 2 | |||
Goodwill | $10,998,630 | $10,998,630 | ||
Asset impairment loss | 0 | 0 | ||
AMC Real Estate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 3 | |||
Scenario, Forecast [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 52 | |||
Midwest Region [Member] | Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 84.80% | 81.40% | ||
Bagger Dave's [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 26 | |||
Bagger Dave's [Member] | AMC Real Estate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 2 | |||
Bagger Dave's [Member] | Minimum [Member] | Scenario, Forecast [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 38 | |||
Bagger Dave's [Member] | Maximum [Member] | Scenario, Forecast [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 42 | |||
Bagger Dave's [Member] | Michigan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 17 | |||
Bagger Dave's [Member] | Indiana [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 9 | |||
BWW [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 42 | |||
Goodwill | $11,000,000 | $11,000,000 | ||
BWW [Member] | AMC Real Estate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 1 | |||
BWW [Member] | Scenario, Forecast [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 52 | |||
BWW [Member] | Michigan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 19 | |||
BWW [Member] | Indiana [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 5 | |||
BWW [Member] | Florida [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 14 | |||
BWW [Member] | Illinois [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of restaurants | 4 |
Investments_Details
Investments (Details) (USD $) | Dec. 28, 2014 |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $2,922,995 |
Unrealized Gains | 0 |
Unrealized Loss | -5,763 |
Estimated Fair Value | 2,917,232 |
Obligations of States/Municipals [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,190,261 |
Unrealized Gains | 0 |
Unrealized Loss | -4,278 |
Estimated Fair Value | 1,185,983 |
Corporate Debt Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,732,734 |
Unrealized Gains | 0 |
Unrealized Loss | -1,485 |
Estimated Fair Value | $1,731,249 |
Investments_Gross_Unrealized_G
Investments (Gross Unrealized Gains and Losses on Available for Sales Securities) (Details) - (USD $) | 12 Months Ended |
Dec. 28, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized gains | $0 |
Unrealized loss | -5,763 |
Net unrealized loss | -5,763 |
Deferred federal income tax benefit | 1,959 |
Net unrealized loss on investments, net of deferred income tax | ($3,804) |
Investments_Details_Textual
Investments (Details Textual) (USD $) | Dec. 28, 2014 |
Investments, Debt and Equity Securities [Abstract] | |
Investments in a loss position | $2,900,000 |
Cumulative unrealized loss | $5,763 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $106,897,010 | $103,839,004 |
Less accumulated depreciation | -33,509,523 | -32,330,054 |
Property and equipment, net | 73,387,487 | 71,508,950 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,087,514 | 3,087,514 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,339,219 | 2,339,219 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 31,196,205 | 29,251,119 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,919,393 | 7,458,292 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 61,049,580 | 56,971,815 |
Restaurant Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $1,305,099 | $4,731,045 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | |
Amortized intangibles: | |||
Franchise fees | $640,641 | $647,363 | |
Trademark | 66,826 | 64,934 | |
Non-compete agreement | 76,560 | 76,560 | |
Favorable lease | 239,000 | 239,000 | |
Loan fees | 130,377 | 130,377 | |
Total | 1,153,404 | 1,158,234 | |
Less accumulated amortization | -410,534 | -377,839 | |
Amortized intangibles, net | 742,870 | 780,395 | |
Unamortized intangibles: | |||
Liquor licenses | 2,191,103 | 2,136,103 | |
Total intangibles, net | 2,933,973 | 2,916,498 | |
Amortization expense | $25,742 | $14,378 |
Intangible_Assets_Future_Intan
Intangible Assets (Future Intangible-Related Expense) (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Dec. 28, 2014 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Remainder of 2015 | $76,813 | |
2016 | 86,276 | |
2017 | 84,740 | |
2018 | 83,065 | |
2019 | 80,334 | |
2020 and thereafter | 331,642 | |
Amortized intangibles, net | $742,870 | $780,395 |
Aggregate weighted-average amortization period | 7 years 99 days |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Related Party Transactions [Abstract] | ||
Professional fees | $138,620 | $125,988 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Debt Instrument [Line Items] | ||
Total | $64,188,721 | $61,768,399 |
Less current portion | -8,815,098 | -8,155,903 |
Long-term debt, net of current portion | 55,373,623 | 53,612,496 |
Term Loan [Member] | December 2014 Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 54,000,000 | 56,000,000 |
Line of Credit [Member] | December 2014 DLOC [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $10,188,721 | $5,768,399 |
LongTerm_Debt_Additional_Infor
Long-Term Debt (Additional Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 29, 2015 | Dec. 28, 2014 | |
Term Loan [Member] | December 2014 Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $56,000,000 | $56,000,000 |
Scheduled monthly principal and interest paymP5nts (in Dollars) | 666,667 | 666,667 |
Interest rate range, low | 2.25% | 2.25% |
Interest rate range, high | 3.15% | 3.15% |
IntP5rP5st ratP5 at P5nd of pP5riod | 2.70% | |
Line of Credit [Member] | December 2014 DLOC [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $20,000,000 | $20,000,000 |
Interest rate range, low | 2.25% | 2.25% |
Interest rate range, high | 3.15% | 3.15% |
LongTerm_Debt_Principal_Maturi
Long-Term Debt (Principal Maturities) (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Debt Disclosure [Abstract] | ||
Remainder of 2015 | $6,407,549 | |
2016 | 9,630,195 | |
2017 | 9,630,195 | |
2018 | 9,630,195 | |
2019 | 28,890,587 | |
2020 and thereafter | 0 | |
Total | $64,188,721 | $61,768,399 |
LongTerm_Debt_Details_Textual
Long-Term Debt (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | Dec. 16, 2014 | Jan. 31, 2015 | 31-May-14 | Jul. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2012 | |
Debt Instrument [Line Items] | |||||||||
Payments of fees and closing costs | $0 | $118,739 | |||||||
Interest expense | 432,223 | 476,401 | |||||||
Fair value of swap agreements, liability | 735,190 | 259,626 | |||||||
Interest Rate Swap [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of interest rate swap agreements | 5 | ||||||||
Notional amount | 57,400,000 | 20,500,000 | 12,900,000 | 10,800,000 | 3,900,000 | 9,300,000 | |||
Interest swap rate | 1.82% | 1.54% | 1.40% | 0.90% | 1.40% | ||||
Term Loan [Member] | December 2014 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 56,000,000 | 56,000,000 | |||||||
Scheduled monthly principal and interest paymP5nts (in Dollars) | 666,667 | 666,667 | |||||||
Interest rate range, low | 2.25% | 2.25% | |||||||
Interest rate range, high | 3.15% | 3.15% | |||||||
Line of Credit [Member] | December 2014 DLOC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 20,000,000 | 20,000,000 | |||||||
Interest rate range, low | 2.25% | 2.25% | |||||||
Interest rate range, high | 3.15% | 3.15% | |||||||
RBS [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 77,000,000 | ||||||||
RBS [Member] | Revolving Credit Facility [Member] | December 2014 RLOC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 1,000,000 | ||||||||
Debt term | 2 years | ||||||||
Outstanding revolving line of credit | 0 | ||||||||
RBS [Member] | Term Loan [Member] | December 2014 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 56,000,000 | ||||||||
Payments used to refinance existing outstanding debt | 35,500,000 | ||||||||
Payments used to refinance and term out the outstanding balance of existing development line of credit loan | 20,000,000 | ||||||||
Payments of fees and closing costs | 500,000 | ||||||||
Debt term | 5 years | ||||||||
Debt payment term | 84 months | ||||||||
Scheduled monthly principal and interest paymP5nts (in Dollars) | 666,667 | ||||||||
Interest rate range, low | 2.25% | ||||||||
Interest rate range, high | 3.15% | ||||||||
RBS [Member] | Line of Credit [Member] | December 2014 DLOC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $20,000,000 | ||||||||
Debt term | 2 years | ||||||||
Debt payment term | 84 months |
StockBased_Compensation_Detail
Stock-Based Compensation (Details Textual) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | Jul. 30, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $0.00 | ||
Preferred stock, shares issued | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | |
Additional Paid-in Capital [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $55,793 | $85,320 | |
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 6 years | ||
Number of shares reserved for future issuance | 210,000 | ||
Number of options granted (in shares) | 210,000 | ||
Options, exercise price (in dollars per share) | $2.50 | ||
Intrinsic value of outstanding options | 338,100 | 525,000 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of restricted shares granted | 0 | 0 | |
Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 750,000 | ||
Stock Incentive Plan [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Stock Incentive Plan [Member] | Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price, percentage | 100.00% | ||
Stock Incentive Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price, percentage | 100.00% | ||
Unrecognized stock-based compensation expense | 484,437 | ||
Weighted-average vesting period | 1 year 259 days | ||
Total fair value of shares vested | $15,436 | $46,167 | |
Number of shares available for future awards | 498,720 | ||
Stock Incentive Plan [Member] | Restricted Stock [Member] | Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock Incentive Plan [Member] | Restricted Stock [Member] | Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Stock Incentive Plan [Member] | Restricted Stock [Member] | Tranche Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock Incentive Plan [Member] | Restricted Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for future awards | 229,550 | ||
Number of shares reserved for future issuance | 250,000 | ||
Number of offering periods | 4 | ||
Number of shares issued under the ESPP | 4,662 | 3,045 | |
ESPP [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price, percentage | 85.00% |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Shares Transactions) (Details) (Restricted Stock [Member]) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested, beginning of period (in shares) | 164,867 | 116,667 |
Granted (in shares) | 0 | 0 |
Vested (in shares) | -3,334 | -11,875 |
Expired/Forfeited (in shares) | -1,917 | -1,500 |
Unvested, end of period (in shares) | 159,616 | 103,292 |
Income_Taxes_Income_Tax_Benefi
Income Taxes (Income Tax (Benefit) Provision Components) (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Federal: | ||
Current | $0 | $0 |
Deferred | -148,937 | -61,703 |
State: | ||
Current | 60,000 | 39,279 |
Deferred | 19,579 | -30,634 |
Income tax benefit | ($69,358) | ($53,058) |
Income_Taxes_Income_Tax_Benefi1
Income Taxes (Income Tax (Benefit) Provision Reconciliation) (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at federal statutory rate | $65,716 | $107,032 |
State income tax provision | 79,579 | 5,706 |
Permanent differences | 96,095 | 67,754 |
Tax credits | -310,748 | -233,550 |
Income tax benefit | ($69,358) | ($53,058) |
Income_Taxes_Deferred_Income_T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Deferred tax assets: | ||
Net operating loss carry forwards | $412,768 | $915,900 |
Deferred rent expense | 471,869 | 481,543 |
Start-up costs | 96,769 | 99,261 |
Tax credit carry forwards | 3,728,464 | 3,417,716 |
Interest rate swaps | 249,968 | 88,121 |
Investments | 0 | 1,959 |
Sale leaseback deferred gain | 774,832 | 788,195 |
Stock-based compensation | 330,977 | 310,790 |
Other | 437,586 | 397,117 |
Total deferred tax assets | 6,503,233 | 6,500,602 |
Deferred tax liabilities: | ||
Tax depreciation in excess of book | 2,720,374 | 3,069,315 |
Goodwill and other | 533,125 | 470,647 |
Total deferred tax liabilities | 3,253,499 | 3,539,962 |
Net deferred income tax asset | $3,249,734 | $2,960,640 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended |
Mar. 29, 2015 | |
Note 9 - Income Taxes (Details) [Line Items] | |
Operating loss and general business tax credit carryforwards, expiration period | 20 years |
General business tax credits | $3,700,000 |
Unrecognized tax benefits | 0 |
Accrued interest amounts or penalties related to uncertain tax positions | 0 |
Stock-Based Compensation Tax Deductions [Member] | |
Note 9 - Income Taxes (Details) [Line Items] | |
Operating loss carryforwards | 600,000 |
General Business Tax Credit Carryforward [Member] | Earliest Tax Year [Member] | |
Note 9 - Income Taxes (Details) [Line Items] | |
General business tax credits, expiration year | 2028 |
General Business Tax Credit Carryforward [Member] | Latest Tax Year [Member] | |
Note 9 - Income Taxes (Details) [Line Items] | |
General business tax credits, expiration year | 2036 |
Domestic Tax Authority [Member] | |
Note 9 - Income Taxes (Details) [Line Items] | |
Operating loss carryforwards | $1,800,000 |
Operating_Leases_Including_Rel2
Operating Leases (Including Related Party) (Details Textual) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Operating Leased Assets [Line Items] | ||
Total rent expense | $1,900,000 | $1,300,000 |
Rent Expense [Member] | ||
Operating Leased Assets [Line Items] | ||
Total rent expense | $0 | $34,821 |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease terms | 5 years | |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Lease terms | 24 years |
Operating_Leases_Including_Rel3
Operating Leases (Including Related Party) (Future Minimum Lease Payments) (Details) (USD $) | Mar. 29, 2015 |
Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 and thereafter | $0 |
Open Restaurants [Member] | |
Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remainder of 2015 | 5,974,021 |
2016 | 8,006,510 |
2017 | 7,771,040 |
2018 | 7,416,526 |
2019 | 6,912,322 |
2020 and thereafter | 39,319,097 |
Total | 75,399,516 |
Restaurants Under Development [Member] | |
Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remainder of 2015 | 263,039 |
2016 | 753,689 |
2017 | 754,536 |
2018 | 755,382 |
2019 | 743,108 |
2020 and thereafter | 5,331,672 |
Total | $8,601,426 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 31, 2017 | Mar. 01, 2017 | |
restaurant | restaurant | restaurant | ||
Loss Contingencies [Line Items] | ||||
Number of restaurants | 68 | |||
Royalty fees, percentage | 5.00% | |||
Royalty fees | $1,600,000 | $1,300,000 | ||
Modernization costs for a restaurant, maximum | 1,100,000 | |||
Advertising Fund Contribution Expenses [Member] | ||||
Loss Contingencies [Line Items] | ||||
Advertising fund contribution expenses | 1,000,000 | 767,157 | ||
Global [Member] | ||||
Loss Contingencies [Line Items] | ||||
Advertising fund contributions | 3.00% | |||
Certain Cities [Member] | ||||
Loss Contingencies [Line Items] | ||||
Advertising fund contributions | 0.50% | |||
Scenario, Forecast [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of restaurants | 52 | |||
Original Number of Restaurants Required [Member] | Scenario, Forecast [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of restaurants | 32 | |||
Potential Penalty Per Undeveloped Restaurant [Member] | ||||
Loss Contingencies [Line Items] | ||||
Potential penalties for each undeveloped restaurant | 50,000 | |||
Modernization costs for a restaurant, minimum | $50,000 | |||
Open Restaurants [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of restaurants | 24 | |||
Restaurants Required [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of restaurants | 32 | |||
Additional Agreements [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of restaurants | 8 | |||
Additional Openings Not Related to Area Development Agreement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of restaurants | 2 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Income available to common stockholders | $262,642 | $367,857 |
Weighted-average shares outstanding | 26,149,184 | 26,048,805 |
Effect of dilutive securities | 99,240 | 104,790 |
Weighted-average shares outstanding - assuming dilution | 26,248,424 | 26,153,595 |
Earnings per share (in dollars per share) | $0.01 | $0.01 |
Earnings per share - assuming dilution (in dollars per share) | $0.01 | $0.01 |
Supplemental_Cash_Flows_Inform1
Supplemental Cash Flows Information (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $419,674 | $464,115 |
Cash paid for income taxes | 60,000 | 0 |
Property and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment not yet paid | $400,000 | $1,000,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 29, 2015 | Dec. 28, 2014 | |
Fair Value Disclosures [Abstract] | ||
Total debt | $64,200,000 | $61,800,000 |
Level 2 to level 1 transfers, assets | 0 | 0 |
Level 2 to level 1 transfers, liabilities | 0 | 0 |
Asset transfers into level 3 | 0 | 0 |
Liability transfers into level 3 | 0 | 0 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 10,000,000 | |
Interest rate swaps | -735,190 | -259,626 |
Debt securities | 2,917,232 | |
Total | 9,264,810 | 2,657,606 |
Obligations of States/Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,185,983 | |
Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,731,249 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 10,000,000 | |
Total | 10,000,000 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | -735,190 | -259,626 |
Debt securities | 2,917,232 | |
Total | -735,190 | 2,657,606 |
Level 2 [Member] | Obligations of States/Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 1,185,983 | |
Level 2 [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $1,731,249 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | ($175,156) | ($245,364) |
Gain(loss) recorded to other comprehensive income | -469,801 | 80,911 |
Tax benefit (expense) | 159,732 | -27,509 |
Total other comprehensive income (loss) | -310,069 | 53,402 |
Accumulated OCI | -485,225 | -191,962 |
Interest Rate Swap | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | -171,352 | -216,188 |
Gain(loss) recorded to other comprehensive income | -475,564 | 45,980 |
Tax benefit (expense) | 161,691 | -15,633 |
Total other comprehensive income (loss) | -313,873 | 30,347 |
Accumulated OCI | -485,225 | -185,841 |
Investments | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | -3,804 | -29,176 |
Gain(loss) recorded to other comprehensive income | 5,763 | 34,931 |
Tax benefit (expense) | -1,959 | -11,876 |
Total other comprehensive income (loss) | 3,804 | 23,055 |
Accumulated OCI | $0 | ($6,121) |
Subsequent_Events_Details
Subsequent Events (Details) | 0 Months Ended | |
Feb. 17, 2015 | Apr. 02, 2015 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Repurchase of common stock | 1,000,000 | |
Screamin' Hot [Member] | ||
Subsequent Event [Line Items] | ||
Right of first refusal, exercisable period | 45 days |