Del Frisco's Restaurant (DFRG) 10-Q 13 Oct 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	8 Months Ended
	Sep. 08, 2015	Oct. 12, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 8, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	DFRG
Entity Registrant Name	Del Frisco's Restaurant Group, Inc.
Entity Central Index Key	1,415,301
Current Fiscal Year End Date	--12-29
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,307,169

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 08, 2015	Dec. 30, 2014
Current assets:
Cash and cash equivalents	$ 1,239,000	$ 3,520,000
Restricted cash	19,000	215,000
Inventory	16,788,000	16,592,000
Income taxes receivable	3,873,000	4,769,000
Deferred income taxes	3,166,000	3,124,000
Lease incentives receivable	3,667,000	5,406,000
Prepaid expenses and other	4,593,000	6,007,000
Total current assets	33,345,000	39,633,000
Property and equipment:
Less accumulated depreciation	(67,020,000)	(58,443,000)
Property and equipment, net of accumulated depreciation of $58,443 and $67,020 at December 30, 2014 and September 8, 2015 (unaudited), respectively	179,579,000	154,999,000
Other assets:
Goodwill	75,365,000	75,365,000
Intangible assets, net	36,437,000	36,575,000
Deferred compensation plan investments	13,373,000	12,760,000
Other assets	326,000	334,000
Total assets	338,425,000	319,666,000
Current liabilities:
Accounts payable	14,966,000	12,198,000
Accrued payroll	4,928,000	5,788,000
Accrued self-insurance	1,020,000	950,000
Deferred revenue	10,521,000	15,716,000
Other current liabilities	6,123,000	6,244,000
Total current liabilities	37,558,000	40,896,000
Long-term debt	15,100,000
Other liabilities	15,324,000	18,422,000
Deferred rent obligations	35,879,000	33,186,000
Deferred income taxes	16,214,000	16,179,000
Total liabilities	$ 120,075,000	$ 108,683,000
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value , 10,000,000 shares authorized, no shares issued and outstanding at December 30, 2014 or September 8, 2015
Common stock, $0.001 par value , 190,000,000 shares authorized, 23,908,542 shares issued and 23,443,046 shares outstanding at December 30, 2014 and 23,919,192 shares issued and 23,264,669 shares outstanding at September 8, 2015 (unaudited)	$ 24,000	$ 24,000
Treasury stock at cost: 465,496 shares and 654,523 shares at December 30, 2014 and September 8, 2015 (unaudited), respecitvely	(13,000,000)	(10,000,000)
Additional paid in capital	136,178,000	133,883,000
Retained earnings	95,148,000	87,076,000
Total stockholders' equity	218,350,000	210,983,000
Total liabilities and stockholders' equity	$ 338,425,000	$ 319,666,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 08, 2015	Dec. 30, 2014
Condensed Consolidated Balance Sheets [Abstract]
Less accumulated depreciation	$ (67,020)	$ (58,443)
Preferred stock, par value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	190,000,000	190,000,000
Common stock, shares issued	23,919,192	23,908,542
Common stock, shares outstanding	23,264,669	23,443,046
Treasury stock, shares	654,523	465,496

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 08, 2015	Sep. 09, 2014	Sep. 08, 2015	Sep. 09, 2014
Condensed Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss) [Abstract]
Revenues	$ 68,629	$ 61,949	$ 217,507	$ 195,957
Costs and expenses:
Costs of sales	19,901	18,693	62,839	59,038
Restaurant operating expenses	34,625	30,046	103,832	90,654
Marketing and advertising costs	1,765	1,410	4,882	4,017
Pre-opening costs	2,044	1,577	3,790	2,867
General and administrative costs	5,225	4,673	16,611	14,202
Secondary public offering costs				5
Non-cash impairment charges	3,338		3,338
Depreciation and amortization	3,811	3,098	11,001	9,053
Operating income (loss)	(2,080)	2,452	11,214	16,121
Other income (expense), net:
Interest expense, net of capitalized interest	(11)	(18)	(43)	(49)
Other	(61)	(61)	(238)	(100)
Income (loss) before income taxes	(2,152)	2,373	10,933	15,972
Income tax (benefit) expense	(1,117)	588	2,861	4,896
Net income (loss)	$ (1,035)	$ 1,785	$ 8,072	$ 11,076
Basic income (loss) per common share:
Basic earnings (loss) per common share	$ (0.04)	$ 0.08	$ 0.34	$ 0.47
Diluted income (loss) per common share:
Diluted earnings (loss) per common share	$ (0.04)	$ 0.08	$ 0.34	$ 0.47
Shares used in computing earnings per common share:
Basic	23,360,744	23,464,306	23,416,502	23,513,905
Diluted	23,360,744	23,682,508	23,584,426	23,754,781
Comprehensive income (loss)	$ (1,035)	$ 1,785	$ 8,072	$ 11,076

Condensed Consolidated Stateme5

Condensed Consolidated Statement Of Changes In Stockholders' Equity - 8 months ended Sep. 08, 2015 - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Total
Balance at Dec. 30, 2014	$ 24	$ 133,883	$ (10,000)	$ 87,076	$ 210,983
Balance, shares at Dec. 30, 2014	23,443,046
Net income				8,072	8,072
Share-based compensation costs		2,146			2,146
Stock option exercises, including tax effects		149			$ 149
Stock option exercises, including tax effects, shares	10,650				10,650
Treasury stock purchases			(3,000)		$ (3,000)
Treasury stock purchases, shares	(189,027)
Balance at Sep. 08, 2015	$ 24	$ 136,178	$ (13,000)	$ 95,148	$ 218,350
Balance, shares at Sep. 08, 2015	23,264,669

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	8 Months Ended
	Sep. 08, 2015	Sep. 09, 2014
Cash flows from operating activities:
Net income	$ 8,072	$ 11,076
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,001	9,053
Loss on disposal of restaurant property	28	100
Loan cost amortization	12	12
Share-based compensation	2,146	1,750
Non-cash impairment charges	3,338
Deferred income taxes	(7)	(2,452)
Amortization of deferred lease incentives	(732)	(543)
Changes in operating assets and liabilities:
Restricted cash	196
Inventories	(196)	(285)
Lease incentives receivable	3,832	3,298
Other assets	139	(117)
Accounts payable	4,428	(2,682)
Income taxes	(2,647)	2,022
Deferred rent obligations	1,538	1,534
Other liabilities	(5,205)	(2,548)
Net cash provided by operating activities	25,943	20,218
Cash flows from investing activities:
Proceeds from sale of property and equipment	1	9
Purchases of property and equipment	(40,510)	(33,037)
Other	36	(332)
Net cash used in investing activities	(40,473)	(33,360)
Cash flows from financing activities:
Proceeds from long-term debt	15,100	6,000
Purchases of treasury stock	(3,000)	(6,319)
Proceeds from exercise of stock options	149	895
Net cash provided by financing activities	12,249	576
Net decrease in cash and cash equivalents	(2,281)	(12,566)
Cash and cash equivalents at beginning of period	3,520	13,674
Cash and cash equivalents at end of period	1,239	1,108
Supplemental disclosures of cash flow information:
Cash paid for interest	83	42
Cash paid for income taxes	3,690	5,514
Capital expenditures included in accounts payable	$ 1,660	$ 750

Business And Basis Of Presentat

Business And Basis Of Presentation	8 Months Ended
	Sep. 08, 2015
Business And Basis Of Presentation [Abstract]
Business And Basis of Presentation	1. BUSINESS AND BASIS OF PRESENTATION As of September 8, 2015, Del Frisco’s Restaurant Group, Inc. (the “Company”) owned and operated 49 restaurants under the concept names of Del Frisco’s Double Eagle Steak House (“Del Frisco’s”), Sullivan’s Steakhouse (“Sullivan’s”), and Del Frisco’s Grille (“Grille”). Of the 49 restaurants the Company operated at the end of the period covered by this report, there were 12 Del Frisco’s restaurants, 18 Sullivan’s restaurants and 19 Grille restaurants in operation in 21 states and the District of Columbia. During the 36 weeks ended September 8, 2015, the Company opened a new Del Frisco’s in Orlando, Florida as well as new Grille locations in The Woodlands, Texas, Plano, Texas and Stamford, Connecticut. The Company also closed a Sullivan’s location in Denver, Colorado. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. Operating results for the 12 and 36 weeks ended September 8, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 29, 2015. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2014 filed with the SEC on February 27, 2015 (the “2014 10-K”). The Company operates on a 52- or 53-week fiscal year ending the last Tuesday in December. The fiscal quarters ended September 8, 2015 and September 9, 2014 each contained 12 weeks and are referred to herein as the third quarter of fiscal year 2015 and the third quarter of fiscal year 2014, respectively. Fiscal year 2015 will be a 52-week fiscal year as was fiscal year 2014. Accounting Estimates The preparation of the unaudited condensed 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 unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances at the time. Actual amounts may differ from those estimates. There have been no material changes to the significant accounting policies from what was previously reported in the 2014 10-K. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”), 2014-09, Revenue from Contracts with Customers. This ASU is a comprehensive new revenue recognition model, which requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. In July 2015, the FASB voted to defer the effective date of this ASU by one year to annual periods beginning after December 15, 2017 and the ASU permits the use of either the retrospective or cumulative effect transition method. Early adoption is permitted as of the original effective date. The Company is evaluating the effect that ASU 2014-09 will have on the Company’s consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has the Company determined the effect, if any, of the standard on the Company’s ongoing financial reporting. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this ASU. The amendments in this ASU are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the impact of adopting this ASU to be material to the Company’s financial statements and related disclosures.

Earnings Per Share

Earnings Per Share	8 Months Ended
	Sep. 08, 2015
Earnings Per Share [Abstract]
Earnings Per Share	2. EARNINGS PER SHARE Basic earnings per share (“EPS”) data is computed based on the weighted average number of shares of common stock outstanding during the periods. Diluted EPS data is computed based on the weighted average number of shares of common stock outstanding, including all potentially issuable shares of common stock. Diluted EPS for the 12 and 36 weeks ended September 8, 2015 excludes options to purchase 844, 392 and 748,456 s hares of common stock, respectively, which were outstanding during the periods, but were antidilutive. Diluted EPS for the 12 and 36 weeks ended September 9, 2014, excludes options to purchase 728,303 and 709,625 shares of common stock, respectively, which were outstanding during the periods but were antidilutive. (dollars in thousands, except per share data) 12 Weeks Ended 36 Weeks Ended September 8, September 9, September 8, September 9, 2015 2014 2015 2014 Net income (loss) $ $ $ $ Shares: Weighted average number of common shares outstanding Dilutive shares — Total Diluted Shares Basic earnings (loss) per common share $ $ $ $ Diluted earnings (loss) per common share $ $ $ $

Stock-Based Employee Compensati

Stock-Based Employee Compensation	8 Months Ended
	Sep. 08, 2015
Stock-Based Employee Compensation [Abstract]
Stock-Based Employee Compensation	3. STOCK-BASED EMPLOYEE COMPENSATION 2012 Long-Term Equity Incentive Plan On July 16, 2012, the Company adopted the Del Frisco’s Restaurant Group, Inc. 2012 Long-Term Equity Incentive Plan (the “2012 Plan”), which allows the Company to grant stock options, restricted stock, restricted stock units, deferred stock units and other equity-based awards to directors, officers, key employees and other key individuals performing services for the Company. The 2012 Plan provides for granting of options to purchase shares of common stock at an exercise price not less than the fair value of the stock on the date of grant. Equity-based awards become exercisable at various periods ranging from one to four years from the date of grant. The 2012 Plan has 2,232,800 shares authorized for issuance under the plan. There were 1,304,225 shares of common stock issuable upon exercise of outstanding options and 140,074 shares of unvested restricted stock outstanding at September 8, 2015 with 663,976 shares available for future grants. The following table details the Company’s total stock-based compensation cost during the 12 and 36 weeks ended September 8, 2015 and September 9, 2014 as well as where the costs were expensed (in thousands): 12 Weeks Ended 36 Weeks Ended September 8, September 9, September 8, September 9, 2015 2014 2015 2014 Restaurant operating expenses $ $ $ $ General and administrative costs Total stock compensation cost $ $ $ $ Restricted Stock The following table summarizes restricted stock activity during the 36 week period ended September 8, 2015: 36 Weeks Ended September 8, 2015 Shares Weighted average grant date fair value Aggregate intrinsic value ($000's) Outstanding at beginning of year — $ — Granted Vested — — Forfeited Outstanding at end of period $ As of September 8, 2015 , there was $2.3 million of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a period of approximately 3.2 years. Of the restricted shares outstanding at the end of the period, 52,618 of the 140,074 shares outstanding are subject to forfeiture if certain performance conditions are not achieved during fiscal 2015. Stock Options The following table summarizes stock option activity during the 36 week period ended September 8, 2015: 36 Weeks Ended September 8, 2015 Shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value ($000's) Outstanding at beginning of year $ Granted — — Exercised Forfeited Outstanding at end of period $ 7.5 years Options exercisable at end of period $ 7.4 years A summary of the status of non-vested stock options as of September 8, 2015 and changes during the 36 weeks ended September 8, 2015 is presented below: 36 Weeks Ended September 8, 2015 Shares Weighted average grant-date fair value Non-vested stock options at beginning of year $ Granted — — Vested Forfeited Non-vested stock options at end of period $ As of September 8, 2015, there was $3.4 million of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a period of approximately 1.6 years. No stock options were issued under the 2012 Plan during the 36 weeks ended September 8, 2015. The following table details the values from and assumptions for the Black-Scholes option pricing model for stock options issued during the 36 weeks ended September 9, 2014: 36 Weeks Ended September 9, 2014 Weighted average grant date fair value $8.85 Weighted average risk-free interest rate 1.91% Weighted average expected life 5.91 years Weighted average volatility 38.00% Expected dividend — The Black-Scholes option valuation model requires the input of subjective assumptions, including the expected life of the stock-based award. The assumptions above represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management’s judgment. The expected term of options granted is based on a representative peer group with similar employee groups and expected behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury constant maturities rate in effect at the time of grant. The Company utilized a weighted rate for expected volatility based on a representative peer group with a similar expected term of options granted. Outstanding options granted under the 2012 Plan are subject to a four year vesting period and have a ten year maximum contractual term. In addition, the Company is required to estimate the expected forfeiture rate and only recognizes expense for those stock options expected to vest. If the actual forfeiture rate is materially different from the Company’s estimate, the share-based compensation expense could be materially different.

Long-Term Debt

Long-Term Debt	8 Months Ended
	Sep. 08, 2015
Long-Term Debt [Abstract]
Long-Term Debt	4. LONG-TERM DEBT On October 15, 2012, the Company entered into a credit facility that provides for a three -year unsecured revolving credit facility of up to $25.0 million. Borrowings under the credit facility bear interest, at the option of the Company, based on (i) a rate of LIBOR plus 1.50% or (ii) the prime rate as defin ed in the credit facility. The Company is required to pay a commitment fee equal to 0.25% per annum on the available but unused revolving credit facility. The credit facility is guaranteed by certain subsidiaries of the Company. The credit facility contains various financial covenants, including a maximum ratio of total indebtedness to EBITDA and minimum fixed charge coverage, both as defined in the credit agreement. The credit facility also contains covenants restricting certain corporate actions, including asset dispositions, acquisitions, the payment of dividends, the incurrence of indebtedness and providing financing or other transactions with affiliates. On June 30, 2015, the Company entered into a Second Amendment to the credit facility (the “Amendment”.) The Amendment, among other things, extended the termination date of the credit facility to October 15, 2017 and modified the revolving credit commitment to $15.0 million, with such amount subject to increases in increments of $5.0 million at the Company’s request, up to a maximum amount of $30.0 million. All other major terms remained unchanged. There were no outstanding borrowings on the Company’s revolving credit facility on December 30, 2014. As of September 8, 2015, there were $15.1 million in outstanding borrowings on the Company’s revolving credit facility, and the Company had approximately $13.5 million of borrowings available, with $1.4 million in outstanding letters of credit commitments. The Company was in compliance with all of the debt covenants as of September 8, 2015 and December 30, 2014.

Income Taxes

Income Taxes	8 Months Ended
	Sep. 08, 2015
Income Taxes [Abstract]
Income Taxes	5. INCOME TAXES The effective income tax benefit rate for the 12 weeks ended September 8, 2015 was 51.9% and the effective income tax rate for the 36 weeks ended September 8, 2015 was 26.2% , compared to an effective income tax rate of 24.8% and 30.7% , respectively, for the 12 and 36 weeks ended September 9, 2014 . The factors that cause the effective tax rates to vary from the federal statutory rate of 35% include the impact of FICA tip and other credits, partially offset by state income taxes and certain non-deductible expenses. Additionally, during the third quarter of fiscal 2015, the Company settled an outstanding uncertain state tax position which resulted in the payment of $1.9 million for which the Company had previously estimated and reserved $2.6 million. This resulted in an approximately $0.5 million tax benefit, net of federal tax.

Fair Value Measurement

Fair Value Measurement	8 Months Ended
	Sep. 08, 2015
Fair Value Measurement [Abstract]
Fair Value Measurement	6. FAIR VALUE MEASUREMENT Under GAAP, the Company is required to measure certain assets and liabilities at fair value, or to disclose the fair value of certain assets and liabilities recorded at cost. Pursuant to these fair value measurement and disclosure requirements, fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value is calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities includes consideration of non-performance risk, including the Company’s own credit risk. Each fair value measurement is reported in one of the following three levels: Level 1—valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2—valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis at September 8, 2015 and December 30, 2014, respectively (in thousands): Fair Value Measurements Level September 8, 2015 December 30, 2014 Deferred compensation plan investments 2 $ $ Deferred compensation plan liabilities (included in Other liabilities) 2 $ $ There were no transfers among levels within the fair-value hierarchy during the first three quarters of fiscal 2015 and fiscal 2014. The carrying value of the Company’s cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value due to their short term nature.

Segment Reporting

Segment Reporting	8 Months Ended
	Sep. 08, 2015
Segment Reporting [Abstract]
Segment Reporting	7. SEGMENT REPORTING The Company operates the Del Frisco’s, Sullivan’s, and Grille brands as operating segments. The restaurant concepts operate solely in the U.S. within the full-service dining industry, providing similar products to similar customers. Sales from external customers are derived principally from food and beverage sales, and the Company does not rely on any major customers as a source of sales. The restaurant concepts also possess similar economic characteristics, resulting in similar long-term expected financial performance characteristics. However, as Del Frisco’s restaurants typically have higher revenues, driven by their larger physical presence and higher average check, the Del Frisco’s, Sullivan’s, and Grille operating segments have varying operating income and restaurant-level EBITDA margins due to the leveraging of higher revenues on certain fixed operating costs such as management labor, rent, utilities, and building maintenance. The following tables present information about reportable segments for the 12 and 36 weeks ended September 8, 2015 and September 9, 2014 and as of September 8, 2015 and September 9, 2014, respectively (in thousands): 12 Weeks Ended September 8, 2015 Del Frisco's Sullivan's Grille Corporate Consolidated Revenues $ $ $ $ — $ Restaurant-level EBITDA — Capital expenditures Property and equipment 12 Weeks Ended September 9, 2014 Del Frisco's Sullivan's Grille Corporate Consolidated Revenues $ $ $ $ — $ Restaurant-level EBITDA — Capital expenditures Property and equipment 36 Weeks Ended September 8, 2015 Del Frisco's Sullivan's Grille Corporate Consolidated Revenues $ $ $ $ — $ Restaurant-level EBITDA — Capital expenditures Property and equipment 36 Weeks Ended September 9, 2014 Del Frisco's Sullivan's Grille Corporate Consolidated Revenues $ $ $ $ — $ Restaurant-level EBITDA — Capital expenditures Property and equipment In addition to using consolidated results in evaluating the Company’s performance and allocating its resources, the Company’s chief operating decision maker uses restaurant-level EBITDA, which is not a measure defined by GAAP. The Company defines restaurant-level EBITDA as operating income before pre-opening costs, general and administrative costs, secondary public offering costs, non-cash impairment charges and depreciation and amortization. Pre-opening costs are excluded because they vary in timing and magnitude and are not related to the health of ongoing operations. General and administrative costs are only included in the Company’s consolidated financial results as they are generally not specifically identifiable to individual operating segments as these costs relate to supporting all of the restaurant operations of the Company and the extension of the Company’s concepts into new markets. Public offering costs and depreciation and amortization are excluded because they are not ongoing controllable cash expenses and they are not related to the health of ongoing operations. Property and equipment is the only balance sheet measure used by the Company’s chief operating decision maker in allocating resources. See table below (in thousands) for a reconciliation of restaurant-level EBITDA to operating income from continuing operations. 12 Weeks Ended 36 Weeks Ended September 8, 2015 September 9, 2014 September 8, 2015 September 9, 2014 Restaurant-level EBITDA $ $ $ $ Less: Pre-opening costs General and administrative costs Secondary public offering costs — — — Non-cash impairment charges — — Depreciation and amortization Operating income (loss) $ $ $ $

Commitments And Contingencies

Commitments And Contingencies	8 Months Ended
	Sep. 08, 2015
Commitments And Contingencies [Abstract]
Commitments And Contingencies	8. COMMITMENTS AND CONTINGENCIES The Company is subject to various claims, possible legal actions, and other matters arising out of the normal course of business. While it is not possible to predict the outcome of these issues, management is of the opinion that adequate provision for potential losses has been made in the accompanying condensed consolidated financial statements and that the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Prior to the acquisition of Lone Star Steakhouse & Saloon, Inc. by Lone Star Fund, the Company’s predecessor guaranteed certain lease payments of certain non-Company restaurants in connection with the leasing of real estate for restaurant locations. As of September 8, 2015 and December 30, 2014, the Company was responsible as guarantor for five of these leases of its former affiliate. The leases expire at various times through 2016 . These guarantees will require payment by the Company only in an event of default by the former affiliate where it is unable or unwilling to make the required lease payments. During fiscal 2015, the Company received notification that its former affiliate ceased payments on two of the five aforementioned leases. The two leases, for which payment had not been made, are non-operating land leases, while the other three leases guaranteed by the Company are operating properties. The lessor of these two non-operating land leases obtained a court judgement against the Company’s former affiliate and as a settlement, the Company agreed to pay half of the judgement, which was approximately $210 thousand. Accordingly, $210 thousand was recorded to Other expense during the first 36 weeks of fiscal 2015. Management believes that the likelihood is remote that material payments will be required under the remaining three guarantees. At September 8, 2015 and December 30, 2014 the maximum potential amount of future lease payments the Company could be required to make as a result of the guarantees was approximately $0.5 million and $0.9 million, respectively. At September 8, 2015 and December 30, 2014, the Company had outstanding letters of credit of $1,423,250 and $1,076,000 , respectively, of which $1,404,250 and $861,000 , respectively, were drawn on the Company’s credit facility (see Note 4, Long-Term Debt ) and $19,000 and $215,000 , respectively, were collateralized by restricted cash. The letters of credit typically act as guarantee of payment to certain third parties in accordance with specified terms and conditions.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets	8 Months Ended
	Sep. 08, 2015
Impairment of Long-Lived Assets [Abstract]
Asset Impairment Charges [Text Block]	9 9 . IMPAIRMENT OF LONG-LIVED ASSETS Property and equipment and finite-lived intangibles are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company reviews applicable finite-lived intangible assets and long-lived assets related to each restaurant on a periodic basis. The Company’s assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual restaurant. When events or changes in circumstances indicate an asset may not be recoverable, the Company estimates the future cash flows expected to result from the use of the asset. If the sum of the expected undiscounted future cash flows is less than the carrying value of the asset, an impairment loss is recognized. The impairment loss is recognized by measuring the difference between the carrying value of the assets and the estimated fair value of the assets. The Company’s estimates of fair values are based on the best information available and require the use of estimates, judgements and projections. The actual results may vary significantly from the estimates. During the third quarter of fiscal 2015, the Company determined that the carrying amount of one of its Grille restaurants was not recoverable. Therefore, the Company recorded a non-cash impairment charge of $3.3 million, which represents the difference between the carrying value of the restaurant assets and the value of furniture and restaurant equipment that may be transferred to future Grille locations. This amount is included in non-cash impairment charges in the consolidated statements of income (loss) and comprehensive income (loss).

Earnings Per Share (Tables)

Earnings Per Share (Tables)	8 Months Ended
	Sep. 08, 2015
Earnings Per Share [Abstract]
Computation Of Basic And Diluted Earnings Per Share	12 Weeks Ended 36 Weeks Ended September 8, September 9, September 8, September 9, 2015 2014 2015 2014 Net income (loss) $ $ $ $ Shares: Weighted average number of common shares outstanding Dilutive shares — Total Diluted Shares Basic earnings (loss) per common share $ $ $ $ Diluted earnings (loss) per common share $ $ $ $

Stock-Based Employee Compensa17

Stock-Based Employee Compensation (Tables)	8 Months Ended
	Sep. 08, 2015
Stock-Based Employee Compensation [Abstract]
Stock Option Compensation Cost	12 Weeks Ended 36 Weeks Ended September 8, September 9, September 8, September 9, 2015 2014 2015 2014 Restaurant operating expenses $ $ $ $ General and administrative costs Total stock compensation cost $ $ $ $
Summary of Restricted Stock Activity	36 Weeks Ended September 8, 2015 Shares Weighted average grant date fair value Aggregate intrinsic value ($000's) Outstanding at beginning of year — $ — Granted Vested — — Forfeited Outstanding at end of period $
Summary Of Stock Option Activity	36 Weeks Ended September 8, 2015 Shares Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value ($000's) Outstanding at beginning of year $ Granted — — Exercised Forfeited Outstanding at end of period $ 7.5 years Options exercisable at end of period $ 7.4 years
Summary Of Non-Vested Shares - Stock Options	36 Weeks Ended September 8, 2015 Shares Weighted average grant-date fair value Non-vested stock options at beginning of year $ Granted — — Vested Forfeited Non-vested stock options at end of period $
Schedule Of Stock Option Valuation Assumptions	36 Weeks Ended September 9, 2014 Weighted average grant date fair value $8.85 Weighted average risk-free interest rate 1.91% Weighted average expected life 5.91 years Weighted average volatility 38.00% Expected dividend —

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	8 Months Ended
	Sep. 08, 2015
Fair Value Measurement [Abstract]
Schedule Of Financial Assets And Liabilities Measured At Fair Value On Recurring Basis	Fair Value Measurements Level September 8, 2015 December 30, 2014 Deferred compensation plan investments 2 $ $ Deferred compensation plan liabilities (included in Other liabilities) 2 $ $

Segment Reporting (Tables)

Segment Reporting (Tables)	8 Months Ended
	Sep. 08, 2015
Segment Reporting [Abstract]
Schedule Of Segment Reporting Information By Segment	12 Weeks Ended September 8, 2015 Del Frisco's Sullivan's Grille Corporate Consolidated Revenues $ $ $ $ — $ Restaurant-level EBITDA — Capital expenditures Property and equipment 12 Weeks Ended September 9, 2014 Del Frisco's Sullivan's Grille Corporate Consolidated Revenues $ $ $ $ — $ Restaurant-level EBITDA — Capital expenditures Property and equipment 36 Weeks Ended September 8, 2015 Del Frisco's Sullivan's Grille Corporate Consolidated Revenues $ $ $ $ — $ Restaurant-level EBITDA — Capital expenditures Property and equipment 36 Weeks Ended September 9, 2014 Del Frisco's Sullivan's Grille Corporate Consolidated Revenues $ $ $ $ — $ Restaurant-level EBITDA — Capital expenditures Property and equipment
Reconciliation Of Restaurant-Level EBITDA To Operating Income	12 Weeks Ended 36 Weeks Ended September 8, 2015 September 9, 2014 September 8, 2015 September 9, 2014 Restaurant-level EBITDA $ $ $ $ Less: Pre-opening costs General and administrative costs Secondary public offering costs — — — Non-cash impairment charges — — Depreciation and amortization Operating income (loss) $ $ $ $

Business And Basis Of Present20

Business And Basis Of Presentation (Details)	Sep. 08, 2015store
Business And Basis Of Presentation [Line Items]
Number of restaurants owned and operated	49
Restaurant operated in number of states	21
Del Frisco's Double Eagle Steak House [Member]
Business And Basis Of Presentation [Line Items]
Number of restaurants owned and operated	12
Sullivan's [Member]
Business And Basis Of Presentation [Line Items]
Number of restaurants owned and operated	18
Grille [Member]
Business And Basis Of Presentation [Line Items]
Number of restaurants owned and operated	19

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - shares	3 Months Ended		8 Months Ended
	Sep. 08, 2015	Sep. 09, 2014	Sep. 08, 2015	Sep. 09, 2014
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	844,392	728,303	748,456	709,625

Earnings Per Share (Computation

Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 08, 2015	Sep. 09, 2014	Sep. 08, 2015	Sep. 09, 2014
Earnings Per Share [Abstract]
Net income (loss)	$ (1,035)	$ 1,785	$ 8,072	$ 11,076
Shares:
Basic weighted average shares outstanding	23,360,744	23,464,306	23,416,502	23,513,905
Dilutive shares		218,202	167,924	240,876
Total Diluted Shares	23,360,744	23,682,508	23,584,426	23,754,781
Basic income (loss) per common share:
Basic earnings (loss) per common share	$ (0.04)	$ 0.08	$ 0.34	$ 0.47
Diluted income (loss) per common share:
Diluted earnings (loss) per common share	$ (0.04)	$ 0.08	$ 0.34	$ 0.47

Stock-Based Employee Compensa23

Stock-Based Employee Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	8 Months Ended
	Sep. 08, 2015	Sep. 08, 2015	Sep. 09, 2014	Dec. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock issuable upon exercise of currently outstanding options	1,304,225	1,304,225		1,429,000
Shares of unvested restricted stock outstanding	140,074	140,074
Total unrecognized compensation cost related to non-vested restricted stock	$ 2,300	$ 2,300
Total unrecognized compensation cost related to non-vested stock options	$ 3,400	3,400
Fair value of each option award, risk free interest rate			1.91%
Fair value of each option award, expected option life			5 years 10 months 28 days
Fair value of each option award, expected volatility			38.00%
Estimated dividend yield
Equity-based compensation		$ 2,146	$ 1,750
2012 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted under the company's equity incentive plan, vesting period		4 years
Shares authorized for issuance	2,232,800	2,232,800
Shares of common stock issuable upon exercise of currently outstanding options	1,304,225	1,304,225
Shares of unvested restricted stock outstanding	140,074	140,074
Shares available for future grants	663,976	663,976
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted under the company's equity incentive plan, vesting period	1 year
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted under the company's equity incentive plan, vesting period	4 years
Maximum [Member] | 2012 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted under the Company's equity incentive plan, contractual term		10 years
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost is expected to be recognized	1 year 7 months 6 days
Performance Target [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of unvested restricted stock outstanding	52,618	52,618
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost is expected to be recognized	3 years 2 months 12 days

Stock-Based Employee Compensa24

Stock-Based Employee Compensation (Stock Option Compensation Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 08, 2015	Sep. 09, 2014	Sep. 08, 2015	Sep. 09, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation cost	$ 764	$ 596	$ 2,146	$ 1,750
Restaurant Operating Expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation cost	109	101	332	300
General and administrative cost [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation cost	$ 655	$ 495	$ 1,814	$ 1,450

Stock Based Employee Compensati

Stock Based Employee Compensation (Summary of Restricted Stock Activity) (Details) $ / shares in Units, $ in Thousands	3 Months Ended	8 Months Ended
	Sep. 08, 2015USD ($)$ / sharesshares	Sep. 08, 2015USD ($)$ / sharesshares
Stock-Based Employee Compensation [Abstract]
Granted, Shares	140,074	160,271
Forfeited, Shares		(20,197)
Outstanding at end of period, Shares	140,074	140,074
Granted, Weighted average grant date fair value | $ / shares		$ 20.30
Forfeited, Weighted average grant date fair value | $ / shares		20.30
Outstanding at end of period, Weighted average grant date fair value | $ / shares	$ 20.30	$ 20.30
Outstanding at end of period, Aggregate intrinsic value | $	$ 1,926	$ 1,926

Stock-Based Employee Compensa26

Stock-Based Employee Compensation (Summary Of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands	8 Months Ended
	Sep. 08, 2015USD ($)$ / sharesshares
Stock-Based Employee Compensation [Abstract]
Outstanding at beginning of year, Shares	1,429,000
Exercised, Shares	(10,650)
Forfeited, Shares	(114,125)
Outstanding at end of period, Shares	1,304,225
Options exercisable at end of period, Shares	783,725
Outstanding at beginning of year, Weighted average exercise price | $ / shares	$ 17.45
Exercised, Weighted average exercise price | $ / shares	14.01
Forfeited, Weighted average exercise price | $ / shares	18.25
Outstanding at end of period, Weighted average exercise price | $ / shares	17.41
Options exercisable at end of period, Weighted average exercise price | $ / shares	$ 16.62
Outstanding at end of period, Weighted average Remaining Contractual Term	7 years 6 months
Options exercisable at end of period, Weighted average Remaining Contractual Term	7 years 4 months 24 days
Outstanding at end of period, Aggregate Intrinsic Value | $	$ 421
Options exercisable at end of period, Aggregate Intrinsic Value | $	$ 298

Stock-Based Employee Compensa27

Stock-Based Employee Compensation (Summary Of Non-Vested Shares) (Details) - $ / shares	8 Months Ended
	Sep. 08, 2015	Sep. 09, 2014
Stock-Based Employee Compensation [Abstract]
Non-vested shares at beginning of year	974,250
Non-vested shares, Vested	(343,125)
Non-vested shares, Forfeited	(110,625)
Non-vested shares at end of period	520,500
Non-vested shares, Weighted average Grant-Date Fair Value, Beginning of year	$ 7.08
Non-vested shares, Weighted average Grant-Date Fair Value, Granted		$ 8.85
Non-vested shares, Weighted average Grant-Date Fair Value, Vested	6.66
Non-vested shares, Weighted average Grant-Date Fair Value, Forfeited	7.38
Non-vested shares, Weighted average Grant-Date Fair Value, End of period	$ 7.29

Stock-Based Employee Compensa28

Stock-Based Employee Compensation (Schedule Of Stock Option Valuation Assumptions) (Details)	8 Months Ended
	Sep. 09, 2014$ / shares
Stock-Based Employee Compensation [Abstract]
Weighted average grant date fair value	$ 8.85
Weighted average risk-free interest rate	1.91%
Weighted average expected life	5 years 10 months 28 days
Weighted average volatility	38.00%
Expected dividend

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2015	Oct. 15, 2012	Sep. 08, 2015
Proforma Debt Instrument [Line Items]
Revolving credit facility-maximum borrowing capacity	$ 30
Revolving credit facility - current borrowing capacity	15
Incremental increases in credit facility	$ 5
Revolving credit facility, amount outstanding			$ 15.1
Borrowings available under revolving credit facility			$ 13.5
Three-year unsecured revolving credit facility [Member]
Proforma Debt Instrument [Line Items]
Credit facility maturity date		3 years
Revolving credit facility-maximum borrowing capacity		$ 25
LIBOR interest rate			Borrowings under the credit facility bear interest, at the option of the Company, based on (i) a rate of LIBOR plus 1.50% or (ii) the prime rate as defined in the credit facility.
Basis spread on variable rate		1.50%
Percentage of commitment fee paid on unused revolving loan facility			0.25%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 08, 2015	Sep. 09, 2014	Sep. 08, 2015	Sep. 09, 2014
Income Taxes [Abstract]
Effective income tax (benefit) rate	(51.90%)	24.80%	26.20%	30.70%
Income tax expense at federal statutory rate, Percentage			35.00%
Tax Adjustments, Settlements, and Unusual Provisions			$ 1.9
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense			(0.5)
Deferred Tax Liabilities Other	$ 2.6		$ 2.6

Fair Value Measurement (Schedul

Fair Value Measurement (Schedule Of Financial Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) - Fair Value Measurements Level 2 [Member] - USD ($) $ in Thousands	Sep. 08, 2015	Dec. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan liabilities	$ (13,404)	$ (12,979)
Life Insurance Policies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan investments	$ 13,373	$ 12,760

Segment Reporting (Schedule Of

Segment Reporting (Schedule Of Segment Reporting Information By Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 08, 2015	Sep. 09, 2014	Sep. 08, 2015	Sep. 09, 2014
Segment Reporting Information [Line Items]
Revenues	$ 68,629	$ 61,949	$ 217,507	$ 195,957
Restaurant-level EBITDA	12,338	11,800	45,954	42,248
Capital expenditures			40,510	33,037
Del Frisco's [Member]
Segment Reporting Information [Line Items]
Revenues	33,059	30,803	106,255	97,233
Restaurant-level EBITDA	8,041	8,126	29,492	27,236
Capital expenditures	4,923	10,379	10,570	17,154
Property and equipment	103,432	90,592	103,432	90,592
Sullivan's [Member]
Segment Reporting Information [Line Items]
Revenues	15,650	16,067	52,966	53,523
Restaurant-level EBITDA	1,769	1,799	8,032	7,918
Capital expenditures	1,768	512	3,146	2,893
Property and equipment	47,081	45,342	47,081	45,342
Grille [Member]
Segment Reporting Information [Line Items]
Revenues	19,920	15,079	58,286	45,201
Restaurant-level EBITDA	2,528	1,875	8,430	7,094
Capital expenditures	12,501	5,776	24,978	13,426
Property and equipment	93,705	64,810	93,705	64,810
Corporate [Member]
Segment Reporting Information [Line Items]
Capital expenditures	38	43	156	314
Property and equipment	2,381	2,084	2,381	2,084
Other [Member]
Segment Reporting Information [Line Items]
Revenues	68,629	61,949	217,507	195,957
Restaurant-level EBITDA	12,338	11,800	45,954	42,248
Capital expenditures	19,230	16,710	38,850	33,787
Property and equipment	$ 246,599	$ 202,828	$ 246,599	$ 202,828

Segment Reporting (Reconciliati

Segment Reporting (Reconciliation Of Restaurant-Level EBITDA To Operating Income) (Details) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 08, 2015	Sep. 09, 2014	Sep. 08, 2015	Sep. 09, 2014
Segment Reporting [Abstract]
Restaurant-level EBITDA	$ 12,338	$ 11,800	$ 45,954	$ 42,248
Less: Pre-opening costs	2,044	1,577	3,790	2,867
Less: General and administrative	5,225	4,673	16,611	14,202
Less: Public offering costs				5
Less: Non-cash impairment charges	3,338		3,338
Less: Depreciation and amortization	3,811	3,098	11,001	9,053
Operating income (loss)	$ (2,080)	$ 2,452	$ 11,214	$ 16,121

Commitments And Contingencies (

Commitments And Contingencies (Details)	8 Months Ended
	Sep. 08, 2015USD ($)contract	Jun. 16, 2015contract	Mar. 24, 2015contract	Dec. 30, 2014USD ($)contract
Commitments And Contingencies [Line Items]
Number of leases | contract	5	5	5	5
Lease expiration date	2,016
Maximum potential amount of future payments	$ 500,000			$ 900,000
Outstanding letters of credit	1,423,250			1,076,000
Restricted cash collateralized	19,000			215,000
Loss Contingency, Loss in Period	$ 210,000
Nonoperating Lease
Commitments And Contingencies [Line Items]
Number of leases | contract	2
Operating Lease
Commitments And Contingencies [Line Items]
Number of leases | contract	3
Letter of credit [Member]
Commitments And Contingencies [Line Items]
Current maturities of long-term debt	$ 1,404,250			$ 861,000

Impairment of Long-Lived Asse35

Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended	8 Months Ended
	Sep. 08, 2015	Sep. 08, 2015
Impairment of Long-Lived Assets [Abstract]
Non-cash impairment charges	$ 3,338	$ 3,338