| Business Segment Information | Business Segment Information The Company is engaged in the fast-casual restaurant industry, with two restaurant concepts (each of which is an operating segment): Pollo Tropical and Taco Cabana. Pollo Tropical is a fast-casual restaurant brand offering a wide variety of freshly prepared Caribbean inspired food, while our Taco Cabana restaurants offer a broad selection of hand-made, freshly prepared and authentic Mexican food. The accounting policies of each segment are the same as those described in the summary of significant accounting policies discussed in Note 1. The Company reports more than one measure of segment profit or loss to the chief operating decision maker for the purposes of allocating resources to the segments and assessing their performance. The primary measures of segment profit or loss used to assess performance and allocate resources are income before taxes and Adjusted EBITDA, which is defined as earnings attributable to the applicable operating segment before interest, income taxes, depreciation and amortization, impairment and other lease charges, stock-based compensation expense and other income and expense. Although the chief operating decision maker uses Adjusted EBITDA as a measure of segment profitability, in accordance with Accounting Standards Codification 280, Segment Reporting, the following table includes segment income before taxes, which is the measure of segment profit or loss determined in accordance with the measurement principles that are most consistent with the principles used in measuring the corresponding amounts in the consolidated financial statements. The “Other” column includes corporate related items not allocated to reportable segments and consists primarily of corporate owned property and equipment, miscellaneous prepaid costs, capitalized costs associated with the issuance of indebtedness, corporate cash accounts, and a current income tax receivable. Three Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2015: Restaurant sales $ 91,440 $ 80,029 $ — $ 171,469 Franchise revenue 468 168 — 636 Cost of sales 31,054 24,355 — 55,409 Restaurant wages and related expenses (1) 20,984 23,199 — 44,183 Restaurant rent expense 4,158 4,238 — 8,396 Other restaurant operating expenses 11,741 10,770 — 22,511 Advertising expense 2,448 2,383 — 4,831 General and administrative expense (2) 8,419 5,840 — 14,259 Depreciation and amortization 4,504 3,092 — 7,596 Pre-opening costs 1,597 92 — 1,689 Impairment and other lease charges 387 — — 387 Interest expense 204 289 — 493 Income before taxes 6,567 5,949 — 12,516 Capital expenditures 22,960 3,847 (488 ) 26,319 September 28, 2014: Restaurant sales $ 77,887 $ 76,756 $ — $ 154,643 Franchise revenue 520 135 — 655 Cost of sales 25,939 23,041 — 48,980 Restaurant wages and related expenses (1) 17,681 22,143 — 39,824 Restaurant rent expense 3,051 4,263 — 7,314 Other restaurant operating expenses 10,110 10,576 — 20,686 Advertising expense 2,097 2,083 — 4,180 General and administrative expense (2) 6,526 5,319 — 11,845 Depreciation and amortization 3,104 2,934 — 6,038 Pre-opening costs 1,318 109 — 1,427 Impairment and other lease charges 183 — — 183 Interest expense 252 284 — 536 Income before taxes 8,146 6,691 — 14,837 Capital expenditures 17,397 5,009 508 22,914 Nine Months Ended Pollo Tropical Taco Cabana Other Consolidated September 27, 2015: Restaurant sales $ 267,898 $ 237,897 $ — $ 505,795 Franchise revenue 1,626 459 — 2,085 Cost of sales 89,687 71,068 — 160,755 Restaurant wages and related expenses (1) 58,989 68,167 — 127,156 Restaurant rent expense 11,627 12,824 — 24,451 Other restaurant operating expenses 32,723 31,009 — 63,732 Advertising expense 6,710 8,819 — 15,529 General and administrative expense (2) 23,867 17,780 — 41,647 Depreciation and amortization 12,583 9,261 — 21,844 Pre-opening costs 3,611 240 — 3,851 Impairment and other lease charges 387 94 — 481 Interest expense 565 780 — 1,345 Income before taxes 29,065 18,703 — 47,768 Capital expenditures 55,104 9,505 1,610 66,219 September 28, 2014: Restaurant sales $ 224,496 $ 228,487 $ — $ 452,983 Franchise revenue 1,550 386 — 1,936 Cost of sales 74,151 69,318 — 143,469 Restaurant wages and related expenses (1) 49,369 66,077 — 115,446 Restaurant rent expense 9,039 12,853 — 21,892 Other restaurant operating expenses 27,909 30,128 — 58,037 Advertising expense 5,698 8,577 — 14,275 General and administrative expense (2) 19,186 16,942 — 36,128 Depreciation and amortization 8,431 8,530 — 16,961 Pre-opening costs 2,819 479 — 3,298 Impairment and other lease charges 113 87 — 200 Interest expense 801 906 — 1,707 Income before taxes 28,530 15,534 — 44,064 Capital expenditures 41,520 14,780 2,638 58,938 Identifiable Assets: September 27, 2015: $ 225,779 $ 164,211 $ 9,276 $ 399,266 December 28, 2014 177,923 167,729 12,304 357,956 (1) Includes stock-based compensation expense of $ 40 and $ 147 for the three and nine months ended September 27, 2015 , respectively, and $ 20 and $ 50 for the three and nine months ended September 28, 2014 , respectively. (2) Includes stock-based compensation expense of $1,127 and $3,056 for the three and nine months ended September 27, 2015 , respectively, and $812 and $ 2,582 for the three and nine months ended September 28, 2014 , respectively. |
