Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 27, 2020 | Aug. 07, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ARK RESTAURANTS CORP | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --10-03 | |
Amendment Flag | false | |
Entity Central Index Key | 0000779544 | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 27, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 3,502,407 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 27, 2020 | Sep. 28, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents (includes $714 at June 27, 2020 and $170 at September 28, 2019 related to VIEs) | $ 20,725 | $ 7,177 |
Accounts receivable (includes $127 at June 27, 2020 and $219 at September 28, 2019 related to VIEs) | 1,293 | 2,621 |
Employee receivables | 396 | 414 |
Inventories (includes $33 at June 27, 2020 and $41 at September 28, 2019 related to VIEs) | 2,660 | 2,222 |
Prepaid and refundable income taxes (includes $254 at June 27, 2020 and September 28, 2019 related to VIEs) | 2,013 | 254 |
Prepaid expenses and other current assets (includes $7 at June 27, 2020 and $12 at September 28, 2019 related to VIEs) | 1,766 | 1,021 |
Total current assets | 28,853 | 13,709 |
FIXED ASSETS - Net (includes $238 at June 27, 2020 and $236 at September 28, 2019 related to VIEs) | 38,327 | 47,781 |
OPERATING LEASE RIGHT-OF-USE ASSETS - Net (includes $2,721 at June 27, 2020 related to VIEs) | 55,984 | 0 |
INTANGIBLE ASSETS - Net | 52 | 303 |
GOODWILL | 15,570 | 15,570 |
TRADEMARKS | 3,720 | 3,720 |
DEFERRED INCOME TAXES | 5,466 | 4,106 |
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK | 6,860 | 6,821 |
OTHER ASSETS (includes $82 at June 27, 2020 and September 28, 2019 related to VIEs) | 2,428 | 2,642 |
TOTAL ASSETS | 157,260 | 94,652 |
CURRENT LIABILITIES: | ||
Accounts payable - trade (includes $91 at June 27, 2020 and $65 at September 28, 2019 related to VIEs) | 2,884 | 3,549 |
Accrued expenses and other current liabilities (includes $331 at June 27, 2020 and $440 at September 28, 2019 related to VIEs) | 11,160 | 10,672 |
Accrued income taxes | 0 | 285 |
Dividend payable | 876 | 875 |
Current portion of operating lease liabilities (includes $221 at June 27, 2020 related to VIEs) | 6,222 | |
Current portion of notes payable | 2,701 | 2,701 |
Total current liabilities | 23,843 | 18,082 |
OPERATING LEASE DEFERRED CREDIT (includes $(30) at September 28, 2019 related to VIEs) | 10,077 | |
OPERATING LEASE LIABILITIES, LESS CURRENT PORTION (includes $2,500 at June 27, 2020 related to VIEs) | 51,587 | |
NOTES PAYABLE, LESS CURRENT PORTION, net of deferred financing costs (includes $723 at June 27, 2020 related to VIEs) | 43,701 | 23,786 |
TOTAL LIABILITIES | 119,131 | 51,945 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Common stock, par value $.01 per share - authorized, 10,000 shares; issued and outstanding, 3,502 shares at June 27, 2020 and 3,499 shares at September 28, 2019 | 35 | 35 |
Additional paid-in capital | 13,440 | 13,277 |
Retained earnings | 24,010 | 28,552 |
Total Ark Restaurants Corp. shareholders’ equity | 37,485 | 41,864 |
NON-CONTROLLING INTERESTS | 644 | 843 |
TOTAL EQUITY | 38,129 | 42,707 |
TOTAL LIABILITIES AND EQUITY | $ 157,260 | $ 94,652 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 27, 2020 | Sep. 28, 2019 |
Cash and cash equivalents | $ 20,725 | $ 7,177 |
Accounts receivable | 1,293 | 2,621 |
Inventories | 2,660 | 2,222 |
Prepaid and refundable income taxes | 2,013 | 254 |
Prepaid expenses and other current assets | 1,766 | 1,021 |
Fixed Assets | 38,327 | 47,781 |
Operating lease right-of-use asset | 55,984 | 0 |
Other assets | 2,428 | 2,642 |
Accounts payable - trade | 2,884 | 3,549 |
Accrued expenses and other current liabilities | 11,160 | 10,672 |
Current portion of operating lease liabilities | 6,222 | |
Operating lease liabilities, less current portion | 51,587 | |
Notes payable, less current portion | $ 43,701 | $ 23,786 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 3,502,000 | 3,499,000 |
Common stock, outstanding (in shares) | 3,502,000 | 3,499,000 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | $ 714 | $ 170 |
Accounts receivable | 127 | 219 |
Inventories | 33 | 41 |
Prepaid and refundable income taxes | 254 | 254 |
Prepaid expenses and other current assets | 7 | 12 |
Fixed Assets | 238 | 236 |
Operating lease right-of-use asset | 2,721 | |
Other assets | 82 | 82 |
Accounts payable - trade | 91 | 65 |
Accrued expenses and other current liabilities | 331 | 440 |
Current portion of operating lease liabilities | 221 | |
Operating lease deferred credit | (30) | |
Operating lease liabilities, less current portion | 2,500 | |
Notes payable, less current portion | $ 723 | $ 0 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
REVENUES: | ||||
Total revenues | $ 7,199 | $ 44,807 | $ 84,716 | $ 120,667 |
COSTS AND EXPENSES: | ||||
Payroll expenses | 3,701 | 14,864 | 31,925 | 41,948 |
Other operating costs and expenses | 852 | 4,840 | 11,834 | 15,051 |
General and administrative expenses | 2,437 | 3,238 | 7,888 | 8,840 |
Loss of termination of lease | 0 | 0 | 364 | 0 |
Loss on closure of Durgin-Park | 0 | 0 | 0 | 1,106 |
Depreciation and amortization | 981 | 1,174 | 3,188 | 3,568 |
Total costs and expenses | 12,822 | 40,076 | 89,839 | 115,553 |
OPERATING INCOME (LOSS) | (5,623) | 4,731 | (5,123) | 5,114 |
INTEREST (INCOME) EXPENSE: | ||||
Interest expense | 283 | 373 | 1,045 | 1,031 |
Interest income | (29) | (19) | (103) | (48) |
Total interest expense, net | 254 | 354 | 942 | 983 |
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES | (5,877) | 4,377 | (6,065) | 4,131 |
Provision (benefit) for income taxes | (3,118) | 283 | (3,213) | 728 |
CONSOLIDATED NET INCOME (LOSS) | (2,759) | 4,094 | (2,852) | 3,403 |
Net (income) loss attributable to non-controlling interests | 233 | (132) | 61 | (172) |
NET INCOME (LOSS) ATTRIBUTABLE TO ARK RESTAURANTS CORP. | $ (2,526) | $ 3,962 | $ (2,791) | $ 3,231 |
NET INCOME (LOSS) PER ARK RESTAURANTS CORP. COMMON SHARE: | ||||
Basic (in USD per share) | $ (0.72) | $ 1.14 | $ (0.80) | $ 0.93 |
Diluted (in USD per share) | $ (0.72) | $ 1.12 | $ (0.80) | $ 0.92 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||
Basic (in shares) | 3,502 | 3,481 | 3,500 | 3,477 |
Diluted (in shares) | 3,502 | 3,530 | 3,500 | 3,531 |
Food and beverage sales | ||||
REVENUES: | ||||
Total revenues | $ 6,907 | $ 43,888 | $ 82,850 | $ 118,212 |
COSTS AND EXPENSES: | ||||
Cost of goods and services sold | 1,847 | 11,714 | 22,366 | 31,982 |
Other revenue | ||||
REVENUES: | ||||
Total revenues | 292 | 919 | 1,866 | 2,455 |
Occupancy expenses | ||||
COSTS AND EXPENSES: | ||||
Cost of goods and services sold | $ 3,004 | $ 4,246 | $ 12,274 | $ 13,058 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Total Ark Restaurants Corp. Shareholders’ Equity | Non- controlling Interests |
BALANCE (in shares) at Sep. 29, 2018 | 3,470,000 | |||||
BALANCE at Sep. 29, 2018 | $ 43,736 | $ 35 | $ 12,897 | $ 29,364 | $ 42,296 | $ 1,440 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 3,403 | 3,231 | 3,231 | 172 | ||
Exercise of stock options (in shares) | 41,000 | |||||
Exercise of stock options | 503 | 503 | 503 | |||
Purchase and retirement of treasury stock (in shares) | (12,000) | |||||
Purchase and retirement of treasury shares | (235) | (235) | (235) | |||
Stock-based compensation | 89 | |||||
Distributions to non-controlling interests | (291) | (291) | ||||
Dividends paid and accrued | (2,613) | (2,613) | (2,613) | |||
BALANCE (in shares) at Jun. 29, 2019 | 3,499,000 | |||||
BALANCE at Jun. 29, 2019 | 44,592 | $ 35 | 13,254 | 29,982 | 43,271 | 1,321 |
BALANCE (in shares) at Mar. 29, 2019 | 3,477,000 | |||||
BALANCE at Mar. 29, 2019 | 41,245 | $ 35 | 13,015 | 26,895 | 39,945 | 1,300 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 4,094 | 3,962 | 3,962 | 132 | ||
Exercise of stock options (in shares) | 34,000 | |||||
Exercise of stock options | $ 409 | 409 | 409 | |||
Purchase and retirement of treasury stock (in shares) | (11,774) | (12,000) | ||||
Purchase and retirement of treasury shares | $ (235) | (235) | (235) | |||
Stock-based compensation | 65 | 65 | 65 | |||
Distributions to non-controlling interests | (111) | (111) | ||||
Dividends paid and accrued | (875) | (875) | (875) | |||
BALANCE (in shares) at Jun. 29, 2019 | 3,499,000 | |||||
BALANCE at Jun. 29, 2019 | 44,592 | $ 35 | 13,254 | 29,982 | 43,271 | 1,321 |
BALANCE (in shares) at Sep. 28, 2019 | 3,499,000 | |||||
BALANCE at Sep. 28, 2019 | 42,707 | $ 35 | 13,277 | 28,552 | 41,864 | 843 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ (2,852) | (2,791) | (2,791) | (61) | ||
Exercise of stock options (in shares) | 3,500 | 3,000 | ||||
Exercise of stock options | $ 50 | 50 | 50 | |||
Stock-based compensation | 113 | 113 | 113 | |||
Distributions to non-controlling interests | (138) | (138) | ||||
Dividends paid and accrued | (1,751) | (1,751) | (1,751) | |||
BALANCE (in shares) at Jun. 27, 2020 | 3,502,000 | |||||
BALANCE at Jun. 27, 2020 | 38,129 | $ 35 | 13,440 | 24,010 | 37,485 | 644 |
BALANCE (in shares) at Mar. 28, 2020 | 3,502,000 | |||||
BALANCE at Mar. 28, 2020 | 40,830 | $ 35 | 13,382 | 26,536 | 39,953 | 877 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (2,759) | (2,526) | (2,526) | (233) | ||
Stock-based compensation | 58 | 58 | 58 | |||
BALANCE (in shares) at Jun. 27, 2020 | 3,502,000 | |||||
BALANCE at Jun. 27, 2020 | $ 38,129 | $ 35 | $ 13,440 | $ 24,010 | $ 37,485 | $ 644 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parentheticals) - $ / shares | 9 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends accrued (in USD per share) | $ 0.50 | $ 0.75 |
Dividends paid (in USD per share) | $ 0.5 | $ 0.75 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net income (loss) | $ (2,852) | $ 3,403 |
Adjustments to reconcile consolidated net income (loss) to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 113 | 89 |
Loss of termination of lease | 364 | 0 |
Asset impairment on closure of Durgin-Park | 0 | 1,067 |
Deferred income taxes | (1,360) | 122 |
Accrued interest on note receivable from NMR | (39) | (48) |
Depreciation and amortization | 3,188 | 3,568 |
Change in operating lease assets and liabilities | 261 | 0 |
Amortization of deferred financing costs | 33 | 25 |
Operating lease deferred credit | (197) | (350) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,328 | (248) |
Inventories | (438) | (76) |
Prepaid, refundable and accrued income taxes | (2,044) | 1,352 |
Prepaid expenses and other current assets | (745) | (27) |
Other assets | 115 | 35 |
Accounts payable - trade | (665) | (1,626) |
Accrued expenses and other current liabilities | 428 | (534) |
Net cash provided by (used in) operating activities | (2,510) | 6,752 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of fixed assets | (2,004) | (2,488) |
Loans and advances made to employees | (75) | (201) |
Payments received on employee receivables | 93 | 139 |
Purchase of JB's on the Beach, net of cash acquired | 0 | (25) |
Net cash used in investing activities | (1,986) | (2,575) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on notes payable | (1,350) | (933) |
Borrowings under credit facility | 6,300 | 650 |
Repayments of borrowings under credit facility | 0 | (650) |
Proceeds from Paycheck Protection Program loans | 14,995 | 0 |
Payments of debt financing costs | (63) | (51) |
Dividends paid | (1,750) | (2,606) |
Proceeds from issuance of stock upon exercise of stock options | 50 | 268 |
Distributions to non-controlling interests | (138) | (291) |
Net cash provided by (used in) financing activities | 18,044 | (3,613) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 13,548 | 564 |
CASH AND CASH EQUIVALENTS, Beginning of period | 7,177 | 5,012 |
CASH AND CASH EQUIVALENTS, End of period | 20,725 | 5,576 |
Cash paid during the period for: | ||
Interest | 1,001 | 907 |
Income taxes | 192 | 215 |
Non-cash financing activities: | ||
Accrued divided | 876 | 0 |
Note payable in connection with the purchase of JB's on the Beach | 0 | 7,000 |
Changes in excess tax benefits from stock-based compensation | 0 | 97 |
Refinancing of credit facility borrowings to term notes | $ 0 | $ 3,200 |
BASIS OF PRESENTATION AND CRITI
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES | 9 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Critical Accounting Policies | BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES The consolidated condensed balance sheet as of September 28, 2019 , which has been derived from the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended September 28, 2019 (“Form 10-K”), and the unaudited interim consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. All adjustments that, in the opinion of management are necessary for a fair presentation for the periods presented, have been reflected as required by Article 10 of Regulation S-X. Such adjustments are of a normal, recurring nature. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Form 10-K. COVID-19 PANDEMIC — On March 11, 2020, in light of the rapid spread of the novel Coronavirus (“COVID-19” or "Coronavirus"), the World Health Organization declared the COVID-19 outbreak to be a global pandemic and the United States declared a National Public Health Emergency. The COVID-19 pandemic has significantly disrupted consumer demand, as well as the Company’s restaurant operations. Following the pandemic declaration in March 2020, federal, state and local governments began to respond to the public health crisis by requiring social distancing, "stay at home" directives, and mandatory closure of all of our locations. As a result of state and local governments lifting “stay at home” orders and mandatory shut-down requirements in May and June 2020, the Company has reopened: (i) all of its properties located in Florida and Alabama, (ii) its operations in the New York-New York Hotel & Casino Resort in Las Vegas, (iii) Sequoia in Washington, DC, (iv) The Porch at Bryant Park in New York, NY, (v) Bryant Park Grill and Café in New York, NY, and (vi) El Rio Grande in New York, NY at varying levels of limited capacity as allowed by federal, state and local governments. Due to the impact of the COVID-19 pandemic, during the 13 and 39 weeks ended June 27, 2020, the Company has temporarily closed several restaurants, typically for one to five days . The Coronavirus has caused unprecedented business disruptions, especially in the hospitality industry. Although we have experienced some recovery from the initial impact of COVID-19, the long-term impact of COVID-19 on the economy and on our business remains uncertain, the duration and scope of which cannot currently be predicted. As a result of these developments, the Company is experiencing a significant negative impact on its revenues, results of operations and cash flows, which could negatively impact its ability to meet its obligations over the next 12 months. However, we believe that our existing cash balances, which include the proceeds from Paycheck Protection Program loans (see Note 7 - Notes Payable) and actions taken by management, set out below and otherwise, will be sufficient to meet our liquidity and capital spending requirements through August 12, 2021. In response to the business disruption and liquidity concerns caused by the COVID-19 pandemic, the Company has taken the following actions, which management expects will enable it to meet its obligations over the next 12 months: • While restaurants were closed or continue to be closed, we furloughed all hourly employees and approximately 95% of salaried restaurant management personnel, while enacting salary reductions for all remaining restaurant management personnel. • As restaurants re-open, restaurant management salaries were restored to 70% of pre-pandemic amounts. When a location is producing sustained cash flows, restaurant management salaries were restored to 100% of pre-pandemic amounts. • Initially reduced the pay of all corporate and administrative staff by 50% to 75% and senior management salaries by 75% to 95% , and temporarily suspended all board fees. As of June 27, 2020, most corporate salaries have been restored to 65% of pre-pandemic levels. • Entered into a Payment Suspension Agreement with its bank which deferred aggregate principal payments of $675,000 due on June 1, 2020 to the respective loan maturity dates. In addition, the bank agreed to relaxed financial covenants through fiscal Q3 2021 (see Note 7 - Notes Payable). • Canceled the payment of the $0.25 dividend declared on March 2, 2020 (see Note 14 - Subsequent Events). • Suspended future dividend payments until such time as the Board deems appropriate to reinstate. • Canceled or delayed all non-essential capital expenditures. • Suspended the vast majority of lease payments for the months of April, May and June 2020 and through August 2020 for all locations that are still closed and is currently in negotiations for rent concessions, abatements and deferrals with its landlords to reduce these lease payments. While most landlords have agreed to certain concessions subsequent to quarter end, there can be no assurance that the Company will be successful in obtaining all of the relief it is seeking. • Certain Company subsidiaries applied for and received a total of approximately $15.0 million of loans under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was enacted March 27, 2020 (see Note 7 - Notes Payable). • Utilized additional provisions of the CARES Act to obtain tax savings as well as the deferral of our portion of social security taxes to future years. Due to the rapid development and fluidity of this situation, the management cannot determine the ultimate impact that the COVID-19 pandemic will have on the Company’s consolidated financial condition, liquidity, future results of operations, suppliers, industry, and workforce and therefore any prediction as to the ultimate material adverse impact on the Company’s consolidated financial condition, liquidity, and future results of operations is uncertain. The disruption in operations has led the Company to consider the impact of the COVID-19 pandemic on its liquidity, debt covenant compliance, and recoverability of long-lived and ROU assets, goodwill and intangible assets, among others. In addition, we cannot predict how soon we will be able to reopen all of our restaurants at full capacity, and our ability to reopen will depend in part on the actions of a number of governmental bodies over which we have no control. Moreover, once restrictions are lifted, it is unclear how quickly customers will return to our restaurants, which may be a function of continued concerns over safety and/or depressed consumer sentiment due to adverse economic conditions, including job losses. If these disruptions continue, the Company expects a continued material negative impact on its consolidated financial condition, future results of operations and liquidity. The extent of such negative impact will be determined, in part, by the longevity and severity of the pandemic. PRINCIPLES OF CONSOLIDATION — The consolidated condensed financial statements include the accounts of Ark Restaurants Corp. and all of its wholly-owned subsidiaries, partnerships and other entities in which it has a controlling interest, collectively herein referred to as the “Company”. Also included in the consolidated condensed financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation. USE OF ESTIMATES — The preparation of financial statements in conformity with GAAP requires us 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 financial statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include projected cash flow, allowances for potential bad debts on receivables, assumptions regarding discount rates related to lease accounting, the useful lives and recoverability of its assets, such as property and intangibles, fair values of financial instruments and share-based compensation, the realizable value of its tax assets and determining when investment impairments are other-than-temporary. Because of the uncertainty in such estimates, actual results may differ from these estimates. The results of operations for the 13 and 39 weeks ended June 27, 2020 are not necessarily indicative of the results to be expected for any other interim period or for the year ending October 3, 2020 . RECLASSIFICATIONS — Certain reclassifications of prior period amounts have been made to conform to the current period presentation. The Company eliminated the presentation of restaurant operating income (loss) as a non-GAAP measure from its consolidated condensed statements of operations. SEASONALITY — The Company has substantial fixed costs that do not decline proportionally with sales. The first and second fiscal quarters, which include the winter months, usually reflect lower customer traffic than in the third and fourth fiscal quarters. However, sales in the third and fourth fiscal quarters can be adversely affected by inclement weather due to the significant amount of outdoor seating at the Company’s restaurants. FAIR VALUE OF FINANCIAL INSTRUMENTS — The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair values of notes receivable and payable are determined using current applicable rates for similar instruments as of the balance sheet dates and approximate the carrying value of such debt instruments. CASH AND CASH EQUIVALENTS — Cash and cash equivalents include cash on hand, deposits with banks and highly liquid investments generally with original maturities of three months or less. Outstanding checks in excess of account balances, typically vendor payments, payroll and other contractual obligations disbursed after the last day of a reporting period are reported as a current liability in the accompanying consolidated condensed balance sheets. CONCENTRATIONS OF CREDIT RISK — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed federally insured limits. Accounts receivable are primarily comprised of normal business receivables, such as credit card receivables, that are collected in a short period of time and amounts due from the hotel operators where the Company has a location, and are recorded upon satisfaction of the performance obligation. The Company reviews the collectability of its receivables on an ongoing basis, and provides for an allowance when it considers the entity unable to meet its obligation. The concentration of credit risk with respect to accounts receivable is generally limited due to the short payment terms extended by the Company and the number of customers comprising the Company’s customer base. As of June 27, 2020 , the Company had accounts receivable balances due from three hotel operators totaling 82% of total accounts receivable. As of September 28, 2019 , the Company had accounts receivable balances due from one hotel operator totaling 34% of total accounts receivable. For the 13-week period ended June 27, 2020 , the Company made purchases from three vendors that accounted for 46% of total purchases. For the 13-week period ended June 29, 2019 , the Company did no t make purchases from any one vendor that accounted for 10% or greater of total purchases. For the 39-week period ended June 27, 2020 , the Company made purchases from one vendor that accounted for 10% of total purchases. For the 39-week period ended June 29, 2019 , the Company did no t make purchases from any one vendor that accounted for 10% or greater of total purchases. As of June 27, 2020 and September 28, 2019, all debt outstanding, other than Paycheck Protection Program loans, is with one lender (see Note 7 – Notes Payable). GOODWILL AND TRADEMARKS — Goodwill and trademarks are not amortized, but are subject to impairment analysis. We assess the potential impairment of goodwill and trademarks annually (at the end of our fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If we determine through the impairment review process that goodwill or trademarks are impaired, we record an impairment charge in our consolidated condensed statements of operations. Due to the recent impact of the COVID-19 pandemic to the global economy, including but not limited to, the volatility of the Company's stock price, temporary closure of the Company's restaurants and the challenging environment for the restaurant industry in general, the Company determined that there were indicators of potential impairment of its goodwill and trademarks during the 13 weeks ended June 27, 2020 . As such, the Company performed a qualitative assessment for both goodwill and its trademarks and concluded that the fair value of these assets exceeded their carrying values. Accordingly, the Company did not record any impairment to its goodwill or trademarks during the 13 and 39 weeks ended June 27, 2020 . The ultimate severity and longevity of the COVID-19 pandemic is unknown, and therefore, it is possible that impairments could be identified in future periods, and such amounts could be material. LONG-LIVED AND RIGHT-OF-USE ASSETS — Long-lived assets, such as property, plant and equipment, purchased intangibles subject to amortization, and right-of-use assets ("ROU assets") are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In the evaluation of the fair value and future benefits of long-lived assets, the Company performs an analysis of the anticipated undiscounted future net cash flows of the related long-lived assets. If the carrying value of the related asset exceeds the undiscounted cash flows, the carrying value is reduced to its fair value. Various factors including estimated future sales growth and estimated profit margins are included in this analysis. The Company considers a triggering event related to long-lived assets or ROU assets in a net asset position to have occurred related to a specific restaurant if the restaurant’s cash flows for the last 12 months are less than a minimum threshold or if consistent levels of undiscounted cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. Additionally, the Company considers a triggering event related to ROU assets to have occurred related to a specific lease if the location has been subleased and future estimated sublease income is less than current lease payments. If the Company concludes that the carrying value of certain long-lived and ROU assets will not be recovered based on expected undiscounted future cash flows, an impairment loss is recorded to reduce the long-lived or ROU assets to their estimated fair value. The fair value is measured on a nonrecurring basis using unobservable (Level 3) inputs. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods, and such charges could be material. Based on the results of this analysis, the Company recognized an impairment charge of $364,000 related to long-lived assets and ROU assets during the 39 weeks ended June 27, 2020 (see Note 4 – Recent Restaurant Dispositions). Given the inherent uncertainty in projecting results of restaurants under the current circumstances, particularly taking into account the projected impact of the COVID-19 pandemic, the Company is monitoring the recoverability of the carrying value of the assets of several restaurants on an ongoing basis. For these restaurants, if expected performance is not realized, an impairment charge may be recognized in future periods, and such charge could be material. REVENUE RECOGNITION — We recognize revenues when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest or other customer. Revenues from restaurant operations are presented net of discounts, coupons, employee meals and complimentary meals and recognized when food, beverage and retail products are sold. Sales tax collected from customers is excluded from sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Catering service revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for the service. Revenues from catered events are recognized in income upon satisfaction of the performance obligation (the date the event is held) and all customer payments, including nonrefundable upfront deposits, are deferred as a contract liability until such time. We recognized $25,000 and $3,840,000 in catering services revenue for the 13-week periods ended June 27, 2020 and June 29, 2019 , respectively, and $7,259,000 and $11,322,000 for the 39-week periods ended June 27, 2020 and June 29, 2019 , respectively. Unearned revenue, which is included in accrued expenses and other current liabilities on the consolidated condensed balance sheets as of June 27, 2020 and September 28, 2019 , was $3,753,000 and $4,549,000 , respectively. LEASES — We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Operating lease right-of-use assets and Operating lease liabilities in our consolidated condensed balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. Our lease terms may include options to extend or terminate the lease. Options are included when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Amendments or modifications to lease terms are accounted for as variable lease payments. Leases with a lease term of 12 months or less are accounted for using the practical expedient which allows for straight-line rent expense over the remaining term of the lease. SEGMENT REPORTING — As of June 27, 2020 , the Company owned and operated 20 restaurants and bars, 17 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and services, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reporting segment in accordance with applicable accounting guidance. RECENTLY ADOPTED ACCOUNTING PRINCIPLES — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize assets and liabilities for leases with lease terms of more than 12 months. The new guidance also requires additional disclosures about leases. The Company adopted the new standard on September 29, 2019 (the first day of fiscal year 2020) using the modified retrospective approach, without restating comparative periods for those lease contracts for which we have taken possession of the property as of September 28, 2019. Accordingly, prior period amounts were not revised and continue to be reported in accordance with ASC Topic 840 (“ASC 840”), the accounting standard then in effect. As part of our adoption we elected the "package of practical expedients", as well as the hindsight practical expedient, permitted under the new guidance, which, among other things, allowed the Company to continue utilizing historical classifications of leases as well as allowing us to combine lease and non-lease components of our real estate leases. We also elected to adopt the short-term lease exception for all leases with terms of 12 months or less and account for them using straight-line rent expense over the remaining life of the lease. As a result of the adoption of this guidance, we recorded ROU assets of $62,330,000 and lease liabilities related to our real estate operating leases of $63,943,000 . The adoption of this standard did not materially impact retained earnings or our consolidated condensed statement of operations and had no impact on cash flows. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to non-employees for goods and services. Under this ASU, the guidance on share-based payments to non-employees would be aligned with the requirements for share-based payments granted to employees, with certain exceptions. The Company adopted this guidance in the first quarter of fiscal 2020. Such adoption did not have a material impact on our consolidated condensed financial statements. NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which modifies Topic 740 to simplify the accounting for income taxes. ASU 2019-12 is effective for financial statements issued for annual periods beginning after December 15, 2020, and for the interim periods therein. The Company is currently evaluating the effect of adopting ASU 2019-12 to determine the impact on the Company’s consolidated financial position and results of operations. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Jun. 27, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES The Company consolidates any variable interest entities in which it holds a variable interest and is the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company has determined that it is the primary beneficiary of three VIEs and, accordingly, consolidates the financial results of these entities. Following are the required disclosures associated with the Company’s consolidated VIEs: June 27, September 28, (in thousands) Cash and cash equivalents $ 714 $ 170 Accounts receivable 127 219 Inventories 33 41 Prepaid and refundable income taxes 254 254 Prepaid expenses and other current assets 7 12 Due from Ark Restaurants Corp. and affiliates (1) 336 392 Fixed assets - net 238 236 Operating lease right-of-use assets - net 2,721 — Other assets 82 82 Total assets $ 4,512 $ 1,406 Accounts payable - trade $ 91 $ 65 Accrued expenses and other current liabilities 331 440 Current portion of operating lease liabilities 221 — Operating lease deferred credit — (30 ) Operating lease liabilities, less current portion 2,500 — Notes payable, less current portion 723 — Total liabilities 3,866 475 Equity of variable interest entities 646 931 Total liabilities and equity $ 4,512 $ 1,406 (1) Amounts Due from and to Ark Restaurants Corp. and affiliates are eliminated upon consolidation. The liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. |
RECENT RESTAURANT EXPANSION AND
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS | 9 Months Ended |
Jun. 27, 2020 | |
Business Combinations [Abstract] | |
Recent Restaurant Expansion and Other Developments | RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS On May 15, 2019, the Company, through a newly formed, wholly-owned subsidiary, acquired the assets of JB's on the Beach , a restaurant and bar located in Deerfield Beach, Florida, for $7,036,000 as set out below. The acquisition is accounted for as a business combination and was financed with a bank loan from the Company’s existing lender in the amount of $7,000,000 and cash from operations. The fair values of the assets acquired, none of which are amortizable, were allocated as follows (amounts in thousands): Cash $ 11 Inventory 80 Furniture, fixtures and equipment 200 Trademarks 1,110 Goodwill 5,690 Liabilities assumed (55 ) $ 7,036 Goodwill recognized in connection with this transaction represents the residual amount of the purchase price over separately identifiable intangible assets and is expected to be deductible for tax purposes. Concurrent with the acquisition, the Company entered into a 20 -year lease (with a five -year extension option) for the restaurant facility and parking lot with the former owner of JB's on the Beach , who is also the owner of the underlying real estate. Payments under the lease are $600,000 per year with 10% increases every five years . The consolidated condensed statements of operations for the 13 and 39 weeks ended June 27, 2020 include revenues and income (loss) of approximately $646,000 and $6,126,000 and $(307,000) and $316,000 , respectively, related to JB's on the Beach . The unaudited pro forma financial information set forth below is based upon the Company’s historical consolidated condensed statements of income for the 13 and 39 weeks ended June 29, 2019 and includes the results of operations for JB's on the Beach for the period prior to acquisition. The unaudited pro forma financial information (which is presented in thousands except per share and share data), which has been adjusted for payments under the lease discussed above as well as interest expense of the term loan, is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the acquisition of JB's on the Beach occurred on the dates indicated, nor does it purport to represent the results of operations for future periods. 13 Weeks Ended 39 Weeks Ended June 29, June 29, (unaudited) (unaudited) Total revenues $ 46,423 $ 128,445 Net income $ 4,123 $ 3,891 Net income per share - basic $ 1.18 $ 1.12 Net income per share - diluted $ 1.17 $ 1.10 Basic 3,481 3,477 Diluted 3,530 3,531 During 2019, the Company was advised by the landlord of our food court at the Hard Rock Casino and Hotel in Hollywood, Florida, that they were exercising their right to relocate our space, at their sole cost, as contractually agreed to in the original lease. The new facilities were completed on September 16, 2019, on which date we closed our existing location and opened the new facilities. The Company recorded the value of the renovations made by the landlord, which includes leasehold improvements and furniture, fixtures and equipment, in the amount of $5,474,000 with a corresponding increase in deferred rent. The net book value of the existing leasehold improvements relating to the original location in the amount of $918,000 is being reflected as a reduction of deferred rent on a straight-line basis over the remaining lease term. During 2019, the Company was advised by the landlord of our food court at the Hard Rock Casino and Hotel in Tampa, Florida, that they were exercising their right to renovate the front of the house space, at their sole cost, as contractually agreed to in the original lease. In connection with this renovation, we closed our existing facilities on June 2, 2019 and re-opened the renovated facilities on September 28, 2019. The Company recorded the value of the renovations made by the landlord, which includes leasehold improvements and furniture, fixtures and equipment, in the amount of $3,179,000 with a corresponding increase in deferred rent. The net book value of the existing leasehold improvements relating to the original location in the amount of $459,000 is being reflected as a reduction of deferred rent on a straight-line basis over the remaining lease term. On September 29, 2019, upon adoption of ASC 842, the unamortized Hollywood and Tampa balances of leasehold improvements and deferred rent in the amounts of $8,269,000 and $7,198,000 , respectively, were reclassified as ROU assets in the net amount of $1,071,000 and are being amortized to lease expense on a straight-line basis over the remaining terms of the respective leases. The Company is in the process of developing three restaurants in Easton, Ohio in partnership with the landlord of the facility. Included in fixed assets are costs of approximately $500,000 in connection with the project. The Company expects the properties to open in fiscal 2021 and 2022. |
RECENT RESTAURANT DISPOSITIONS
RECENT RESTAURANT DISPOSITIONS | 9 Months Ended |
Jun. 27, 2020 | |
Recent Restaurant Dispositions [Abstract] | |
Recent Restaurant Dispositions | RECENT RESTAURANT DISPOSITIONS As of December 29, 2018, the Company determined that it would not be able to operate Durgin-Park profitably due to decreased traffic at the Faneuil Hall Marketplace in Boston, MA, where it is located, and rising labor costs. As a result, included in the consolidated condensed statements of operations for the 39 weeks ended June 29, 2019 are losses on closure in the amount of $1,106,000 , respectively, consisting of: (i) impairment of trademarks in the amount of $721,000 , (ii) accelerated depreciation of fixed assets in the amount of $333,000 , and (iii) write-offs of prepaid and other expenses in the amount of $52,000 . The restaurant closed on January 12, 2019. On April 2, 2020, the Company advised the landlord of a catering space in New York, NY that we would be terminating the lease. In connection with this notification, the Company recorded a loss of $364,000 during the 13 weeks ended March 28, 2020, consisting of (i) rent accrued in accordance with the termination provisions of the lease, (ii) the write-off of the unamortized balance of purchased leasehold rights, (iii) the write-off of our security deposit, (iv) the write-off of ROU assets and related lease liabilities, and (v) the write-off of net book value of fixed assets. |
INVESTMENT IN AND RECEIVABLE FR
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK | 9 Months Ended |
Jun. 27, 2020 | |
ASU 2016-01 Transition [Abstract] | |
Investment in and Receivable from New Meadowlands Racetrack | INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK On March 12, 2013, the Company made a $4,200,000 investment in the New Meadowlands Racetrack LLC (“NMR”) through its purchase of a membership interest in Meadowlands Newmark, LLC, an existing member of NMR with a then 63.7% ownership interest. On November 19, 2013, the Company invested an additional $464,000 in NMR through a purchase of an additional membership interest in Meadowlands Newmark, LLC resulting in a total ownership of 11.6% of Meadowlands Newmark, LLC, and an effective ownership interest in NMR of 7.4% , subject to dilution. In 2015, the Company invested an additional $222,000 in NMR and on February 7, 2017, the Company invested an additional $222,000 in NMR, both as a result of capital calls, bringing its total investment to $5,108,000 with no change in ownership. As of September 29, 2018 , this investment was accounted for based on the cost method. As of September 30, 2018, the Company elected to account for this investment at cost, less impairment, adjusted for subsequent observable price changes in accordance with ASU No. 2016-01. Such change did not affect the value of our investment in NMR. There are no observable prices for this investment. Due to the recent impact of the COVID-19 pandemic to the global economy, including but not limited to, the temporary closure of the NMR facility, the Company evaluated its investment in NMR for impairment and concluded that its fair value exceeds the carrying value. Accordingly, the Company did not record any impairment during the 13 and 39 weeks ended June 27, 2020 . The ultimate severity and longevity of the COVID-19 pandemic is unknown, and therefore, it is possible that impairments could be identified in future periods, and such amounts could be material. Any future changes in the carrying value of our Investment in NMR will be reflected in earnings. In addition to the Company’s ownership interest in NMR through Meadowlands Newmark, LLC, if casino gaming is approved at the Meadowlands and NMR is granted the right to conduct said gaming, neither of which can be assured, the Company shall be granted the exclusive right to operate the food and beverage concessions in the gaming facility with the exception of one restaurant. In conjunction with this investment, the Company, through a 97% owned subsidiary, Ark Meadowlands LLC (“AM VIE”), also entered into a long-term agreement with NMR for the exclusive right to operate food and beverage concessions serving the new raceway facilities (the “Racing F&B Concessions”) located in the new raceway grandstand constructed at the Meadowlands Racetrack in northern New Jersey. Under the agreement, NMR is responsible to pay for the costs and expenses incurred in the operation of the Racing F&B Concessions, and all revenues and profits thereof inure to the benefit of NMR. AM VIE receives an annual fee equal to 5% of the net profits received by NMR from the Racing F&B Concessions during each calendar year. AM VIE is a variable interest entity; however, based on qualitative consideration of the contracts with AM VIE, the operating structure of AM VIE, the Company’s role with AM VIE, and that the Company is not obligated to absorb expected losses of AM VIE, the Company has concluded that it is not the primary beneficiary and not required to consolidate the operations of AM VIE. The Company’s maximum exposure to loss as a result of its involvement with AM VIE is limited to any receivable from AM VIE’s primary beneficiary (NMR, a related party). As of June 27, 2020 and September 28, 2019 , no amounts were due AM VIE by NMR. On April 25, 2014, the Company loaned $1,500,000 to Meadowlands Newmark, LLC. The note bears interest at 3% , compounded monthly and added to the principal, and is due in its entirety on January 31, 2024 . The note may be prepaid, in whole or in part, at any time without penalty or premium. On July 13, 2016, the Company made an additional loan to Meadowlands Newmark, LLC in the amount of $200,000 . Such amount is subject to the same terms and conditions as the original loan as discussed above. The principal and accrued interest related to this note in the amounts of $1,753,000 and $1,713,000 are included in Investment In and Receivable From New Meadowlands Racetrack in the consolidated condensed balance sheets at June 27, 2020 and September 28, 2019 , respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Jun. 27, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Accrued Expenses and Other Current Liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: June 27, September 28, (In thousands) Sales tax payable $ 312 $ 1,141 Accrued wages and payroll related costs 2,001 2,942 Customer advance deposits 4,130 5,071 Accrued occupancy and other operating expenses 4,717 1,518 $ 11,160 $ 10,672 |
NOTES PAYABLE - BANK
NOTES PAYABLE - BANK | 9 Months Ended |
Jun. 27, 2020 | |
Notes Payable [Abstract] | |
Notes Payable - Bank | NOTES PAYABLE Long-term debt consists of the following: June 27, September 28, (In thousands) Promissory Note - Rustic Inn purchase $ 3,901 $ 4,043 Promissory Note - Shuckers purchase 4,505 4,675 Promissory Note - Oyster House purchase 4,418 4,728 Promissory Note - JB's on the Beach purchase 6,250 6,750 Promissory Note - Sequoia renovation 2,857 3,086 Revolving Facility 9,666 3,366 Paycheck Protection Program Loans 14,995 — 46,592 26,648 Less: Current maturities (2,701 ) (2,701 ) Less: Unamortized deferred financing costs (190 ) (161 ) Long-term debt $ 43,701 $ 23,786 Notes Payable - Bank On June 1, 2018, the Company refinanced (the "Refinancing") its then existing indebtedness with its current lender, Bank Hapoalim B.M. (“BHBM”), by entering into an amended and restated credit agreement (the "Revolving Facility”), which expires on May 31, 2021 . The Revolving Facility provides for total availability of the lesser of (i) $10,000,000 and (ii) $35,000,000 less the then aggregate amount of all indebtedness and obligations to BHBM. Borrowings under the Revolving Facility are payable upon maturity of the Revolving Facility with interest payable monthly at LIBOR plus 3.5% , subject to adjustment based on certain ratios. As of June 27, 2020 and September 28, 2019 , borrowings of $9,666,000 and $ 3,366,000 , respectively, were outstanding under the Revolving Facility and had a weighted average interest rate of 3.0% and 4.9% , respectively. As of June 27, 2020 , no amounts were available under the Revolving Facility to be drawn down. In connection with the Refinancing, the Company also amended the principal amounts and payment terms of its outstanding term notes with BHBM as follows: • Promissory Note – Rustic Inn purchase – On February 25, 2013, the Company issued a promissory note to BHBM for $3,000,000 . The note bore interest at LIBOR plus 3.5% per annum, and was payable in 36 equal monthly installments of $83,333 , commencing on March 25, 2013 . On February 24, 2014, in connection with the acquisition of the Rustic Inn , the Company borrowed an additional $6,000,000 from BHBM under the same terms and conditions as the original loan which was consolidated with the remaining principal balance from the original borrowing at that date. The new loan was payable in 60 equal monthly installments of $134,722 , which commenced on March 25, 2014 . In connection with the Refinancing, this note was amended and restated and increased by $2,783,333 of credit facility borrowings. The new principal amount of $4,400,000 , which is secured by a mortgage on the Rustic Inn real estate, is payable in 27 equal quarterly installments of $71,333 , commencing on September 1, 2018 , with a balloon payment of $2,474,000 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. • Promissory Note – Shuckers purchase – On October 22, 2015, in connection with the acquisition of Shuckers , the Company issued a promissory note to BHBM for $5,000,000 . The note bore interest at LIBOR plus 3.5% per annum, and was payable in 60 equal monthly installments of $83,333 , commencing on November 22, 2015 . In connection with the Refinancing, this note was amended and restated and increased by $2,433,324 of credit facility borrowings. The new principal amount of $5,100,000 , which is secured by a mortgage on the Shuckers real estate, is payable in 27 equal quarterly installments of $85,000 , commencing on September 1, 2018 , with a balloon payment of $2,805,000 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. • Promissory Note – Oyster House purchase – On November 30, 2016, in connection with the acquisition of the Oyster House properties, the Company issued a promissory note under the Revolving Facility to BHBM for $8,000,000 . The note bore interest at LIBOR plus 3.5% per annum, and was payable in 60 equal monthly installments of $133,273 , commencing on January 1, 2017 . In connection with the Refinancing, this note was amended and restated and separated into two notes. The first note, in the principal amount of $3,300,000 , is secured by a mortgage on the Oyster House Gulf Shores real estate, is payable in 19 equal quarterly installments of $117,857 , commencing on September 1, 2018 , with a balloon payment of $1,060,716 on June 1, 2023 and bears interest at LIBOR plus 3.5% per annum. The second note, in the principal amount of $2,200,000 , is secured by a mortgage on the Oyster House Spanish Fort real estate, is payable in 27 equal quarterly installments of $36,667 , commencing on September 1, 2018 , with a balloon payment of $1,210,000 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. • Promissory Note – JB's on the Beach purchase – On May 15, 2019, in connection with the previously discussed acquisition of JB’s on the Beach , the Company issued a promissory note under the Revolving Facility to BHBM for $7,000,000 which is payable in 23 equal quarterly installments of $250,000 , commencing on September 1, 2019 , with a balloon payment of $1,250,000 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. • Promissory Note – Sequoia renovation – Also on May 15, 2019, the Company converted $3,200,000 of Revolving Facility borrowings incurred in connection with the Sequoia renovation to a promissory note which is payable in 23 equal quarterly installments of $114,286 , commencing on September 1, 2019 , with a balloon payment of $571,429 on June 1, 2025 and bears interest at LIBOR plus 3.5% per annum. Borrowings under the Revolving Facility, which include all of the above promissory notes, are secured by all tangible and intangible personal property (including accounts receivable, inventory, equipment, general intangibles, documents, chattel paper, instruments, letter-of-credit rights, investment property, intellectual property and deposit accounts) and fixtures of the Company. The loan agreements provide, among other things, that the Company meet minimum quarterly tangible net worth amounts, as defined therein, maintain a fixed charge coverage ratio of not less than 1.1 :1 on a latest 12-months' basis and minimum annual net income amounts, and contain customary representations, warranties and affirmative covenants. The agreements also contain customary negative covenants, subject to negotiated exceptions on liens, relating to other indebtedness, capital expenditures, liens, affiliate transactions, disposal of assets and certain changes in ownership. On April 20, 2020, the Company entered into a Payment Suspension Agreement with BHBM which deferred all monthly interest payments through June 1, 2020 and deferred aggregate principal payments of $675,000 due on June 1, 2020 to the respective loan maturity date. In addition, on June 12, 2020, as a result of the impact of COVID-19 on our business, BHBM agreed to relaxed financial covenants through fiscal Q3 2021. The Company was in compliance with all of its financial covenants under the Revolving Facility as of June 27, 2020. Paycheck Protection Program Loans During the 13 weeks ended June 27, 2020, subsidiaries (the “Borrowers”) of the Company received loan proceeds from several banks (the “Lenders”) in the aggregate amount of $14,995,000 (the “PPP Loans”) under the Paycheck Protection Program (the “PPP”) of the CARES Act, which was enacted March 27, 2020. The PPP Loans are evidenced by individual promissory notes of each of the Borrowers (together, the “Notes”) in favor of the Lender, which Notes bear interest at the rate of 1.00% per annum. Funds from the PPP Loans may be used only for payroll and related costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations that were incurred by a Borrower prior to February 15, 2020 (the “Qualifying Expenses”). Under the terms of the PPP Loans, some or all of the amounts thereunder, including accrued interest, may be forgiven if they are used for Qualifying Expenses as described in and in compliance with the CARES Act. No payments of principal or interest are due under the Notes until the date on which the amount of loan forgiveness (if any) under the CARES Act for each respective Note is remitted to the Lender, which can be up to 10 months after the end of the related notes covered period (which is defined as 24 weeks after the date of the loan) (the “Deferral Period”). Each Note may be prepaid by the respective Borrower at any time prior to maturity with no prepayment penalties. While the Company and each Borrower intends to use the PPP Loan proceeds exclusively for Qualifying Expenses, it is unclear and uncertain whether the conditions for forgiveness of the PPP Loans will be met under the current guidelines of the CARES Act. Accordingly, we cannot make any assurance that the Company, or any of the Borrowers, will be eligible for forgiveness of the PPP Loans, in whole or in part. To the extent, if any, that any or all of the PPP Loans are not forgiven, beginning one month following expiration of the Deferral Period, and continuing monthly until 24 months from the date of each applicable Note (the “Maturity Date”), each respective Borrower is obligated to make monthly payments of principal and interest to the Lender with respect to any unforgiven portion of the Notes, in such equal amounts required to fully amortize the principal amount outstanding on such Notes as of the last day of the applicable Deferral Period by the applicable Maturity Date. Each Borrower is permitted to prepay its respective Note at any time without payment of any premium. Debt issuance costs incurred in the amount of $271,000 are being amortized over the life of the agreements using the effective interest rate method and included in interest expense. Amortization expense of approximately $13,000 and $9,000 is included in interest expense for the 13 weeks ended June 27, 2020 and June 29, 2019 , respectively. Amortization expense was $33,000 and $26,000 for the 39 weeks ended June 27, 2020 and June 29, 2019 , respectively. |
LEASES
LEASES | 9 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Leases | LEASES Other than locations where we own the underlying property, we lease our restaurant locations as well as our corporate office under various non-cancelable real-estate lease agreements that expire on various dates through 2044. We evaluate whether we control the use of the asset, which is determined by assessing whether we obtain substantially all economic benefits from the use of the asset, and whether we have the right to direct the use of the asset. If these criteria are met and we have identified a lease, we account for the contract under the requirements of ASC 842. Upon taking possession of a leased asset, we determine its classification as an operating or finance lease. All of our real estate leases are classified as operating leases. We do not have any finance leases as of June 27, 2020 . Generally, our real estate leases have initial terms ranging from 10 to 25 years and typically include renewal options. Renewal options are recognized as part of the ROU assets and lease liabilities if it is reasonably certain at the date of adoption that we would exercise the options to extend the lease. Our real estate leases typically provide for fixed minimum rent payments and/or contingent rent payments based upon sales in excess of specified thresholds. When the achievement of such sales thresholds are deemed to be probable, variable lease expense is accrued in proportion to the sales recognized during the period. For operating leases that include rent holidays and rent escalation clauses, we recognize lease expense on a straight-line basis over the lease term from the date we take possession of the leased property. We record the straight-line lease expense and any contingent rent, if applicable, in occupancy expenses in the consolidated condensed statements of operations. Many of our real estate leases also require us to pay real estate taxes, common area maintenance costs and other occupancy costs (“non-lease components”) which are included in occupancy related expenses in the consolidated condensed statements of operations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As there were no explicit rates provided in our leases, we used our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The components of lease expense in the consolidated condensed statements of operations are as follows: 13 Weeks Ended 39 Weeks Ended June 27, June 27, (In thousands) (In thousands) Operating lease expense - occupancy expenses (1) $ 2,088 $ 7,005 Occupancy lease expense - general and administrative expenses 158 481 Variable lease expense 132 2,500 Total lease expense $ 2,378 $ 9,986 _________________________________ (1) Includes short-term leases, which are immaterial. Supplemental cash flow information related to leases: 39 Weeks Ended June 27, (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 8,086 Non-cash investing activities: ROU assets obtained in exchange for new operating lease liabilities $ 62,330 The weighted average remaining lease terms and discount rates as of June 27, 2020 are as follows: Weighted Average Remaining Lease Term Weighted Average Discount Rate Operating leases 10.8 Years 5.5 % The annual maturities of our lease liabilities as of June 27, 2020 are as follows: Operating Leases Fiscal Year Ending (In thousands) October 3, 2020 $ 2,290 October 2, 2021 9,236 October 1, 2022 9,313 September 30, 2023 7,800 September 28, 2024 7,413 Thereafter 40,592 Total future lease commitments 76,644 Less imputed interest (18,835 ) Present value of lease liabilities $ 57,809 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Leases — The Company leases several restaurants, bar facilities, and administrative headquarters through its subsidiaries under terms expiring at various dates through 2044 . Most of the leases provide for the payment of base rents plus real estate taxes, insurance and other expenses and, in certain instances, for the payment of a percentage of the restaurant’s sales in excess of stipulated amounts at such facility and in one instance based on profits. Legal Proceedings — In the ordinary course of its business, the Company is a party to various lawsuits arising from accidents at its restaurants and workers' compensation claims, which are generally handled by the Company’s insurance carriers. The employment by the Company of management personnel, waiters, waitresses and kitchen staff at a number of different restaurants has resulted, from time to time, in litigation alleging violation by the Company of employment discrimination laws. Management believes, based in part on the advice of counsel, 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. On May 1, 2018, two former tipped service workers (the “Plaintiffs”), individually and on behalf of all other similarly situated personnel, filed a putative class action lawsuit (the “Complaint”) against the Company and certain subsidiaries as well as certain officers of the Company (the “Defendants”). Plaintiffs allege on behalf of themselves and the putative class, that the Company violated certain of the New York State Labor Laws and related regulations. The Complaint seeks unspecified money damages, together with interest, liquidated damages and attorney fees. There has been no discovery on the merits of the Complaint and the matter is still in the initial stages of discovery concerning whether the named Plaintiffs are seeking to represent an appropriate class of tipped service workers and if so, whether the named Plaintiffs are appropriate class representatives. The Company's Motion to Dismiss the Complaint was denied on June 27, 2019. The Company believes that the allegations and claims in the Complaint are without merit, and it intends to defend itself vigorously in this litigation. However, the outcomes of legal actions are unpredictable and subject to significant uncertainties, and thus it is inherently difficult to determine the probability or quantification of any loss. Based on information currently available, including the Company’s assessment of the facts underlying the Complaint and advice of counsel, the Company recorded an accrual for this matter and related expenses as of June 27, 2020 . |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Jun. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options | STOCK OPTIONS The Company has options outstanding under two stock option plans, the 2010 Stock Option Plan (the “2010 Plan”) and the 2016 Stock Option Plan (the “2016 Plan”). Options granted under both plans are exercisable at prices at least equal to the fair market value of such stock on the dates the options were granted and expire 10 years after the date of grant. During the 39-week period ended June 27, 2020, options to purchase 266,500 shares of common stock at an exercise price of $21.90 per share were granted to employees, directors of the Company and other service providers. Such options are exercisable as to 50% of the shares commencing on the second anniversary of the date of grant and as to the remaining 50% commencing on the fourth anniversary of the date of grant. The grant date fair value of these stock options was $3.35 per share. The fair value of each of the Company’s stock options is estimated on the date of grant using a Black-Scholes option-pricing model that uses assumptions that relate to the expected volatility of the Company’s common stock, the expected dividend yield of our stock, the expected life of the options and the risk free interest rate. The assumptions used for the above grant include a risk free interest rate of 1.54% , volatility of 30.3% , a dividend yield of 5.2% and an expected life of 10 years . During the 13-week period ended June 29, 2019, options to purchase 23,000 shares of common stock at an exercise price of $19.61 per share were granted to employees of the Company. Such options are exercisable as to 50% of the shares commencing on the date of grant and as to an additional 50% commencing on the first anniversary of the date of grant. Such options had an aggregate grant date fair value of $3.48 per share and totaled approximately $80,000 . During the 13-week period ended June 29, 2019, options to purchase 11,000 shares of common stock at an exercise price of $20.18 per share were granted to employees of the Company. Such options are exercisable as to 25% of the shares commencing on the first anniversary of the date of grant and 25% on the second, third and fourth anniversary thereof. Such options had an aggregate grant date fair value of $3.55 per share and totaled approximately $39,000 . During the 13 weeks ended June 29, 2019, options to purchase 19,500 shares of common stock with a strike price of $12.04 were exercised on a net issue basis as provided in the 2010 Plan. Accordingly, 11,774 shares were immediately repurchased and retired from treasury. The Company also maintains a Section 162(m) Cash Bonus Plan. Under the Company's Section 162(m) Cash Bonus Plan, compensation paid in excess of $1,000,000 to any employee who is the chief executive officer or one of the three highest paid executive officers on the last day of that tax year (other than the chief executive officer or the chief financial officer) is not tax deductible. A summary of stock option activity is presented below: 2020 Shares Weighted Average Exercise Price Weighted Average Contractual Term Aggregate Intrinsic Value Outstanding, beginning of period 363,500 $19.25 4.7 Years Options: Granted 266,500 $21.90 Exercised (3,500 ) $14.40 Canceled or expired — Outstanding and expected to vest, end of period 626,500 $20.41 6.4 Years $ — Exercisable, end of period 337,500 $19.26 3.7 Years $ — Shares available for future grant 174,500 Compensation cost charged to operations for the 13 weeks ended June 27, 2020 and June 29, 2019 for share-based compensation programs was approximately $58,000 and $65,000 , respectively, and for the 39 weeks ended June 27, 2020 and June 29, 2019 was approximately $113,000 and $89,000 , respectively. The compensation cost recognized is classified as a general and administrative expense in the consolidated condensed statements of operations. As of June 27, 2020 , there was approximately $834,000 of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a period of 3.6 years . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We calculate our interim income tax provision in accordance with ASC Topic 270, Interim Reporting and ASC Topic 740, Accounting for Income Taxes. At the end of each interim period, we estimate the annual effective tax rate and apply that rate to our ordinary year to date earnings. The related tax expense or benefit is recognized in the interim period in which it occurs. In addition, the effect of changes in enacted tax laws, rates or tax status is recognized in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including the expected operating (loss) income for the year, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets generated in the current fiscal year. The accounting estimates used to compute income tax expense may change as new events occur, additional information is obtained, or the tax environment changes. On March 27, 2020, the CARES Act was enacted to provide economic relief to those impacted by the COVID-19 pandemic. The CARES Act includes provisions, among others, allowing for the carryback of net operating losses generated in 2018, 2019 and 2020, refunds of alternative minimum tax credits, temporary modifications to the limitations placed on the tax deductibility of net interest expense, and technical amendments regarding the expensing of qualified improvement property. As a result of the CARES Act, the Company is expecting to carry back estimated taxable losses in fiscal year 2020 to previous tax years in which the Company was subject to higher federal corporate income tax rates. The Company accounted for this income tax benefit as part of its estimated annual effective tax rate. The income tax benefit for the 39-week period ended June 27, 2020 was $(3,213,000) . The effective tax rate for the 39-week period ended June 27, 2020 of 52.3% differed from the statutory rate of 21% primarily as a result of the tax benefits related to the generation of FICA tax credits and the incremental benefit arising from the ability to carry back the 2020 net operating loss to prior years when the tax rate was 34%. The income tax provision for the 39-week period ended June 29, 2019 was $728,000 and includes a discrete tax provision of approximately $304,000 in connection with the settlement of various state and local tax examinations as well as changes in the uncertain tax position liability as a result of lapses in the statute of limitations. The effective tax rate for the 39-week period ended June 29, 2019 of 17.6% differed from the statutory rate of 21% as a result of the tax benefits related to the generation of FICA tax credits, a discrete tax provision in connection with the settlement of various state and local tax examinations offset by changes in the uncertain tax position liability as a result of lapses in the statute of limitations during the interim period ended June 29, 2019. The Company’s overall effective tax rate in the future will be affected by factors such as the utilization of state and local net operating loss carryforwards, the generation of FICA tax credits and the mix of earnings by state taxing jurisdictions as Nevada does not impose a state income tax, as compared to the other major state and local jurisdictions in which the Company has operations. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual tax rate could differ from current estimates. |
INCOME PER SHARE OF COMMON STOC
INCOME PER SHARE OF COMMON STOCK | 9 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Income Per Share of Common Stock | INCOME PER SHARE OF COMMON STOCK Basic earnings per share is computed by dividing net income attributable to Ark Restaurants Corp. by the weighted average number of common shares outstanding for the period. Our diluted earnings per share is computed similarly to basic earnings per share, except that it reflects the effect of common shares issuable upon exercise of stock options, using the treasury stock method in periods in which they have a dilutive effect. A reconciliation of shares used in calculating earnings per basic and diluted share follows: 13 Weeks Ended 39 Weeks Ended June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Basic 3,502 3,481 3,500 3,477 Effect of dilutive securities: Stock options — 49 — 54 Diluted 3,502 3,530 3,500 3,531 For the 13-week and 39-week periods ended June 27, 2020 , the dilutive effect of options to purchase 129,000 shares of common stock at an exercise price of $14.40 per share, options to purchase 5,000 shares of common stock at an exercise price of $20.26 per share, options to purchase 172,500 shares of common stock at an exercise price of $22.50 per share, options to purchase 20,000 shares of common stock at an exercise price of $22.30 per share, options to purchase 11,000 shares of common stock at an exercise price of $20.18 per share and options to purchase 266,500 shares of common stock at an exercise price of $21.90 per share were not included in diluted earnings per share as their impact would be anti-dilutive. For the 13-week and 39-week periods ended June 29, 2019 , the dilutive effect of options to purchase 209,000 shares of common stock at an exercise prices ranging from $20.18 per share to $22.50 per share were not included in diluted earnings per share as their impact would be anti-dilutive. |
DIVIDENDS
DIVIDENDS | 9 Months Ended |
Jun. 27, 2020 | |
Dividends [Abstract] | |
Dividends | DIVIDENDS On November 26, 2019, the Board of Directors declared a quarterly dividend of $0.25 per share on the Company’s common stock which was paid on January 7, 2020 , to shareholders of record at the close of business on December 16, 2019 . On March 13, 2020, the Company announced that, in light of the unprecedented circumstances and rapidly changing situation with respect to COVID-19, as part of an overall plan to preserve cash flow, the Board of Directors determined that it was appropriate for the Company to defer payment of the dividend that was declared on March 2, 2020. Payment of such dividend, which was scheduled for April 6, 2020 to shareholders of record on March 16, 2020, was canceled on July 1, 2020 (see Note 14 – Subsequent Events). The payment of future dividends is at the discretion of the Company’s Board of Directors and is based on future earnings, cash flow, financial condition, capital requirements, changes in U.S. taxation and other relevant factors. The Company does not expect to pay quarterly cash dividends for the foreseeable future as a result of the disruption to its operations from the COVID-19 pandemic. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 27, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Cancellation of Dividend As a result of disruption to the Company's operations from the COVID-19 pandemic, on July 1, the Board of Directors unanimously approved the cancellation of the divided that was declared on March 2, 2020. |
BASIS OF PRESENTATION AND CRI_2
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION — The consolidated condensed financial statements include the accounts of Ark Restaurants Corp. and all of its wholly-owned subsidiaries, partnerships and other entities in which it has a controlling interest, collectively herein referred to as the “Company”. Also included in the consolidated condensed financial statements are certain variable interest entities (“VIEs”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | USE OF ESTIMATES — The preparation of financial statements in conformity with GAAP requires us 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 financial statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include projected cash flow, allowances for potential bad debts on receivables, assumptions regarding discount rates related to lease accounting, the useful lives and recoverability of its assets, such as property and intangibles, fair values of financial instruments and share-based compensation, the realizable value of its tax assets and determining when investment impairments are other-than-temporary. Because of the uncertainty in such estimates, actual results may differ from these estimates. The results of operations for the 13 and 39 weeks ended June 27, 2020 are not necessarily indicative of the results to be expected for any other interim period or for the year ending October 3, 2020 . |
Reclassifications | RECLASSIFICATIONS — Certain reclassifications of prior period amounts have been made to conform to the current period presentation. The Company eliminated the presentation of restaurant operating income (loss) as a non-GAAP measure from its consolidated condensed statements of operations. |
Seasonality | SEASONALITY — The Company has substantial fixed costs that do not decline proportionally with sales. The first and second fiscal quarters, which include the winter months, usually reflect lower customer traffic than in the third and fourth fiscal quarters. However, sales in the third and fourth fiscal quarters can be adversely affected by inclement weather due to the significant amount of outdoor seating at the Company’s restaurants |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS — The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair values of notes receivable and payable are determined using current applicable rates for similar instruments as of the balance sheet dates and approximate the carrying value of such debt instruments. |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS — Cash and cash equivalents include cash on hand, deposits with banks and highly liquid investments generally with original maturities of three months or less. Outstanding checks in excess of account balances, typically vendor payments, payroll and other contractual obligations disbursed after the last day of a reporting period are reported as a current liability in the accompanying consolidated condensed balance sheets. |
Concentrations of Credit Risk | CONCENTRATIONS OF CREDIT RISK — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company reduces credit risk by placing its cash and cash equivalents with major financial institutions with high credit ratings. At times, such amounts may exceed federally insured limits. Accounts receivable are primarily comprised of normal business receivables, such as credit card receivables, that are collected in a short period of time and amounts due from the hotel operators where the Company has a location, and are recorded upon satisfaction of the performance obligation. The Company reviews the collectability of its receivables on an ongoing basis, and provides for an allowance when it considers the entity unable to meet its obligation. The concentration of credit risk with respect to accounts receivable is generally limited due to the short payment terms extended by the Company and the number of customers comprising the Company’s customer base. |
Goodwill and Trademarks | GOODWILL AND TRADEMARKS — Goodwill and trademarks are not amortized, but are subject to impairment analysis. We assess the potential impairment of goodwill and trademarks annually (at the end of our fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If we determine through the impairment review process that goodwill or trademarks are impaired, we record an impairment charge in our consolidated condensed statements of operations. Due to the recent impact of the COVID-19 pandemic to the global economy, including but not limited to, the volatility of the Company's stock price, temporary closure of the Company's restaurants and the challenging environment for the restaurant industry in general, the Company determined that there were indicators of potential impairment of its goodwill and trademarks during the 13 weeks ended June 27, 2020 . As such, the Company performed a qualitative assessment for both goodwill and its trademarks and concluded that the fair value of these assets exceeded their carrying values. Accordingly, the Company did not record any impairment to its goodwill or trademarks during the 13 and 39 weeks ended June 27, 2020 . The ultimate severity and longevity of the COVID-19 pandemic is unknown, and therefore, it is possible that impairments could be identified in future periods, and such amounts could be material. |
Long-lived And Right-Of-Use-Assets | LONG-LIVED AND RIGHT-OF-USE ASSETS — Long-lived assets, such as property, plant and equipment, purchased intangibles subject to amortization, and right-of-use assets ("ROU assets") are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In the evaluation of the fair value and future benefits of long-lived assets, the Company performs an analysis of the anticipated undiscounted future net cash flows of the related long-lived assets. If the carrying value of the related asset exceeds the undiscounted cash flows, the carrying value is reduced to its fair value. Various factors including estimated future sales growth and estimated profit margins are included in this analysis. The Company considers a triggering event related to long-lived assets or ROU assets in a net asset position to have occurred related to a specific restaurant if the restaurant’s cash flows for the last 12 months are less than a minimum threshold or if consistent levels of undiscounted cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. Additionally, the Company considers a triggering event related to ROU assets to have occurred related to a specific lease if the location has been subleased and future estimated sublease income is less than current lease payments. If the Company concludes that the carrying value of certain long-lived and ROU assets will not be recovered based on expected undiscounted future cash flows, an impairment loss is recorded to reduce the long-lived or ROU assets to their estimated fair value. The fair value is measured on a nonrecurring basis using unobservable (Level 3) inputs. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods, and such charges could be material. |
Revenue Recognition | REVENUE RECOGNITION — We recognize revenues when it satisfies a performance obligation by transferring control over a product or service to a restaurant guest or other customer. Revenues from restaurant operations are presented net of discounts, coupons, employee meals and complimentary meals and recognized when food, beverage and retail products are sold. Sales tax collected from customers is excluded from sales and the obligation is included in sales tax payable until the taxes are remitted to the appropriate taxing authorities. Catering service revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for the service. Revenues from catered events are recognized in income upon satisfaction of the performance obligation (the date the event is held) and all customer payments, including nonrefundable upfront deposits, are deferred as a contract liability until such time. |
Leases | LEASES — We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Operating lease right-of-use assets and Operating lease liabilities in our consolidated condensed balance sheet. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. Our lease terms may include options to extend or terminate the lease. Options are included when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Amendments or modifications to lease terms are accounted for as variable lease payments. Leases with a lease term of 12 months or less are accounted for using the practical expedient which allows for straight-line rent expense over the remaining term of the lease. |
Segment Reporting | SEGMENT REPORTING — As of June 27, 2020 , the Company owned and operated 20 restaurants and bars, 17 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and services, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reporting segment in accordance with applicable accounting guidance. |
Recently Adopted Accounting Principles and New Accounting Standards Not Yet Adopted | RECENTLY ADOPTED ACCOUNTING PRINCIPLES — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize assets and liabilities for leases with lease terms of more than 12 months. The new guidance also requires additional disclosures about leases. The Company adopted the new standard on September 29, 2019 (the first day of fiscal year 2020) using the modified retrospective approach, without restating comparative periods for those lease contracts for which we have taken possession of the property as of September 28, 2019. Accordingly, prior period amounts were not revised and continue to be reported in accordance with ASC Topic 840 (“ASC 840”), the accounting standard then in effect. As part of our adoption we elected the "package of practical expedients", as well as the hindsight practical expedient, permitted under the new guidance, which, among other things, allowed the Company to continue utilizing historical classifications of leases as well as allowing us to combine lease and non-lease components of our real estate leases. We also elected to adopt the short-term lease exception for all leases with terms of 12 months or less and account for them using straight-line rent expense over the remaining life of the lease. As a result of the adoption of this guidance, we recorded ROU assets of $62,330,000 and lease liabilities related to our real estate operating leases of $63,943,000 . The adoption of this standard did not materially impact retained earnings or our consolidated condensed statement of operations and had no impact on cash flows. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to non-employees for goods and services. Under this ASU, the guidance on share-based payments to non-employees would be aligned with the requirements for share-based payments granted to employees, with certain exceptions. The Company adopted this guidance in the first quarter of fiscal 2020. Such adoption did not have a material impact on our consolidated condensed financial statements. NEW ACCOUNTING STANDARDS NOT YET ADOPTED — In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which modifies Topic 740 to simplify the accounting for income taxes. ASU 2019-12 is effective for financial statements issued for annual periods beginning after December 15, 2020, and for the interim periods therein. The Company is currently evaluating the effect of adopting ASU 2019-12 to determine the impact on the Company’s consolidated financial position and results of operations. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | Following are the required disclosures associated with the Company’s consolidated VIEs: June 27, September 28, (in thousands) Cash and cash equivalents $ 714 $ 170 Accounts receivable 127 219 Inventories 33 41 Prepaid and refundable income taxes 254 254 Prepaid expenses and other current assets 7 12 Due from Ark Restaurants Corp. and affiliates (1) 336 392 Fixed assets - net 238 236 Operating lease right-of-use assets - net 2,721 — Other assets 82 82 Total assets $ 4,512 $ 1,406 Accounts payable - trade $ 91 $ 65 Accrued expenses and other current liabilities 331 440 Current portion of operating lease liabilities 221 — Operating lease deferred credit — (30 ) Operating lease liabilities, less current portion 2,500 — Notes payable, less current portion 723 — Total liabilities 3,866 475 Equity of variable interest entities 646 931 Total liabilities and equity $ 4,512 $ 1,406 (1) Amounts Due from and to Ark Restaurants Corp. and affiliates are eliminated upon consolidation. |
RECENT RESTAURANT EXPANSION A_2
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Business Combinations [Abstract] | |
Allocation of Fair Values of Assets Acquired | The fair values of the assets acquired, none of which are amortizable, were allocated as follows (amounts in thousands): Cash $ 11 Inventory 80 Furniture, fixtures and equipment 200 Trademarks 1,110 Goodwill 5,690 Liabilities assumed (55 ) $ 7,036 |
Pro Forma Information | The unaudited pro forma financial information (which is presented in thousands except per share and share data), which has been adjusted for payments under the lease discussed above as well as interest expense of the term loan, is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the acquisition of JB's on the Beach occurred on the dates indicated, nor does it purport to represent the results of operations for future periods. 13 Weeks Ended 39 Weeks Ended June 29, June 29, (unaudited) (unaudited) Total revenues $ 46,423 $ 128,445 Net income $ 4,123 $ 3,891 Net income per share - basic $ 1.18 $ 1.12 Net income per share - diluted $ 1.17 $ 1.10 Basic 3,481 3,477 Diluted 3,530 3,531 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: June 27, September 28, (In thousands) Sales tax payable $ 312 $ 1,141 Accrued wages and payroll related costs 2,001 2,942 Customer advance deposits 4,130 5,071 Accrued occupancy and other operating expenses 4,717 1,518 $ 11,160 $ 10,672 |
NOTES PAYABLE - BANK (Tables)
NOTES PAYABLE - BANK (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Notes Payable [Abstract] | |
Schedule of Debt | Long-term debt consists of the following: June 27, September 28, (In thousands) Promissory Note - Rustic Inn purchase $ 3,901 $ 4,043 Promissory Note - Shuckers purchase 4,505 4,675 Promissory Note - Oyster House purchase 4,418 4,728 Promissory Note - JB's on the Beach purchase 6,250 6,750 Promissory Note - Sequoia renovation 2,857 3,086 Revolving Facility 9,666 3,366 Paycheck Protection Program Loans 14,995 — 46,592 26,648 Less: Current maturities (2,701 ) (2,701 ) Less: Unamortized deferred financing costs (190 ) (161 ) Long-term debt $ 43,701 $ 23,786 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Lease Cost | The components of lease expense in the consolidated condensed statements of operations are as follows: 13 Weeks Ended 39 Weeks Ended June 27, June 27, (In thousands) (In thousands) Operating lease expense - occupancy expenses (1) $ 2,088 $ 7,005 Occupancy lease expense - general and administrative expenses 158 481 Variable lease expense 132 2,500 Total lease expense $ 2,378 $ 9,986 _________________________________ (1) Includes short-term leases, which are immaterial. Supplemental cash flow information related to leases: 39 Weeks Ended June 27, (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 8,086 Non-cash investing activities: ROU assets obtained in exchange for new operating lease liabilities $ 62,330 The weighted average remaining lease terms and discount rates as of June 27, 2020 are as follows: Weighted Average Remaining Lease Term Weighted Average Discount Rate Operating leases 10.8 Years 5.5 % |
Annual Maturities of Lease Liabilities | The annual maturities of our lease liabilities as of June 27, 2020 are as follows: Operating Leases Fiscal Year Ending (In thousands) October 3, 2020 $ 2,290 October 2, 2021 9,236 October 1, 2022 9,313 September 30, 2023 7,800 September 28, 2024 7,413 Thereafter 40,592 Total future lease commitments 76,644 Less imputed interest (18,835 ) Present value of lease liabilities $ 57,809 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Option Activity | A summary of stock option activity is presented below: 2020 Shares Weighted Average Exercise Price Weighted Average Contractual Term Aggregate Intrinsic Value Outstanding, beginning of period 363,500 $19.25 4.7 Years Options: Granted 266,500 $21.90 Exercised (3,500 ) $14.40 Canceled or expired — Outstanding and expected to vest, end of period 626,500 $20.41 6.4 Years $ — Exercisable, end of period 337,500 $19.26 3.7 Years $ — Shares available for future grant 174,500 |
INCOME PER SHARE OF COMMON ST_2
INCOME PER SHARE OF COMMON STOCK (Tables) | 9 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of shares used in calculating earnings per basic and diluted share follows: 13 Weeks Ended 39 Weeks Ended June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Basic 3,502 3,481 3,500 3,477 Effect of dilutive securities: Stock options — 49 — 54 Diluted 3,502 3,530 3,500 3,531 |
BASIS OF PRESENTATION AND CRI_3
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | Apr. 20, 2020USD ($) | Mar. 02, 2020$ / shares | Nov. 26, 2019$ / shares | Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($)$ / shares | Jun. 27, 2020USD ($)segment$ / shares | Jun. 29, 2019USD ($)$ / shares | Sep. 28, 2019USD ($) | Sep. 29, 2019USD ($) |
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Deferred aggregate principal payments | $ 675 | ||||||||
Deferred dividend payment (in USD per share) | $ / shares | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.75 | ||||
Impairment charge | $ 364 | ||||||||
Revenues | 7,199 | $ 44,807 | $ 84,716 | $ 120,667 | |||||
Unearned revenue | 3,753 | 3,753 | $ 4,549 | ||||||
Right-of-use asset | 55,984 | 55,984 | $ 0 | $ 62,330 | |||||
Lease liabilities | 57,809 | $ 57,809 | $ 63,943 | ||||||
Restaurants and Bars | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of operating segments | segment | 20 | ||||||||
Fast Food Concepts and Catering Operations | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of operating segments | segment | 17 | ||||||||
Catering Services | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Revenues | $ 25 | $ 3,840 | $ 7,259 | $ 11,322 | |||||
Three Vendors | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration risk | 46.00% | ||||||||
Three Hotel Operators | Accounts Receivable | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration risk | 82.00% | ||||||||
One Hotel Operator | Accounts Receivable | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration risk | 34.00% | ||||||||
Paycheck Protection Program Loan | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Paycheck Protection Program loan | $ 14,995 | $ 14,995 | |||||||
COVID-19 | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Restaurant management personnel furloughed | 95.00% | ||||||||
Salary restoration, restaurant management | 70.00% | ||||||||
Salary restoration for sustained profitability restaurants | 100.00% | ||||||||
Salary restoration for corporate staff | 65.00% | ||||||||
Deferred aggregate principal payments | $ 675 | ||||||||
COVID-19 | Minimum | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Length of restaurant temporary closure | 1 day | ||||||||
Temporary salary reduction, corporate and administrative staff | 50.00% | ||||||||
Temporary salary reduction, senior management | 75.00% | ||||||||
COVID-19 | Maximum | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Length of restaurant temporary closure | 5 days | ||||||||
Temporary salary reduction, corporate and administrative staff | 75.00% | ||||||||
Temporary salary reduction, senior management | 95.00% | ||||||||
COVID-19 | Paycheck Protection Program Loan | |||||||||
Business And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Paycheck Protection Program loan | $ 15,000 | $ 15,000 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) | Jun. 27, 2020variable_interest_entity |
Variable Interest Entities [Abstract] | |
Number of VIEs with primary benefits | 3 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of variable interest entities (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 29, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 29, 2019 | Sep. 29, 2018 |
Variable Interest Entity [Line Items] | |||||||
Cash and cash equivalents | $ 20,725 | $ 7,177 | |||||
Accounts receivable | 1,293 | 2,621 | |||||
Inventories | 2,660 | 2,222 | |||||
Prepaid and refundable income taxes | 2,013 | 254 | |||||
Prepaid expenses and other current assets | 1,766 | 1,021 | |||||
Fixed Assets | 38,327 | 47,781 | |||||
Operating lease right-of-use asset | 55,984 | $ 62,330 | 0 | ||||
Other assets | 2,428 | 2,642 | |||||
TOTAL ASSETS | 157,260 | 94,652 | |||||
Accounts payable - trade | 2,884 | 3,549 | |||||
Accrued expenses and other current liabilities | 11,160 | 10,672 | |||||
Current portion of operating lease liabilities | 6,222 | ||||||
Operating lease liabilities, less current portion | 51,587 | ||||||
Notes payable, less current portion | 43,701 | 23,786 | |||||
TOTAL LIABILITIES | 119,131 | 51,945 | |||||
Equity of variable interest entities | 38,129 | $ 40,830 | 42,707 | $ 44,592 | $ 41,245 | $ 43,736 | |
TOTAL LIABILITIES AND EQUITY | 157,260 | 94,652 | |||||
Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Cash and cash equivalents | 714 | 170 | |||||
Accounts receivable | 127 | 219 | |||||
Inventories | 33 | 41 | |||||
Prepaid and refundable income taxes | 254 | 254 | |||||
Prepaid expenses and other current assets | 7 | 12 | |||||
Due from Ark Restaurants Corp. and affiliates | 336 | 392 | |||||
Fixed Assets | 238 | 236 | |||||
Operating lease right-of-use asset | 2,721 | ||||||
Other assets | 82 | 82 | |||||
TOTAL ASSETS | 4,512 | 1,406 | |||||
Accounts payable - trade | 91 | 65 | |||||
Accrued expenses and other current liabilities | 331 | 440 | |||||
Current portion of operating lease liabilities | 221 | ||||||
Operating lease deferred credit | (30) | ||||||
Operating lease liabilities, less current portion | 2,500 | ||||||
Notes payable, less current portion | 723 | 0 | |||||
TOTAL LIABILITIES | 3,866 | 475 | |||||
Equity of variable interest entities | 646 | 931 | |||||
TOTAL LIABILITIES AND EQUITY | $ 4,512 | $ 1,406 |
RECENT RESTAURANT EXPANSION A_3
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS - Narrative (Details) | Sep. 29, 2019USD ($) | Sep. 28, 2019USD ($) | Sep. 16, 2019USD ($) | May 15, 2019USD ($) | Jun. 27, 2020USD ($) | Jun. 27, 2020USD ($)developing_restaurant |
Business Acquisition [Line Items] | ||||||
Notes payable | $ 26,648,000 | $ 46,592,000 | $ 46,592,000 | |||
Property, plant and equipment, net | 47,781,000 | 38,327,000 | 38,327,000 | |||
Deferred rent | 10,077,000 | |||||
Right-of-use asset | $ 62,330,000 | 0 | 55,984,000 | $ 55,984,000 | ||
Number of developing restaurants | developing_restaurant | 3 | |||||
JB's on the Beach | ||||||
Business Acquisition [Line Items] | ||||||
Consideration | $ 7,036,000 | |||||
Notes payable | 3,086,000 | $ 7,000,000 | 2,857,000 | $ 2,857,000 | ||
Revenues of acquiree since acquisition | 646,000 | 6,126,000 | ||||
Income of acquiree since acquisition | $ (307,000) | 316,000 | ||||
JB's on the Beach | ||||||
Business Acquisition [Line Items] | ||||||
Lease term | 20 years | |||||
Lease renewal term | 5 years | |||||
Annual rent payments | $ 600,000 | |||||
Rent percent increase every five years | 10.00% | |||||
Rent increase period | 5 years | |||||
Easton, Ohio | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant and equipment, additions | $ 500,000 | |||||
Leasehold Improvements And Furniture, Fixtures And Equipment | Hard Rock Casino and Hotel, Hollywood Florida | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant and equipment, additions | $ 5,474,000 | |||||
Property, plant and equipment, net | 918,000 | |||||
Deferred rent | $ 5,474,000 | |||||
Leasehold Improvements And Furniture, Fixtures And Equipment | Hard Rock Casino and Hotel, Tampa, Florida | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant and equipment, additions | 3,179,000 | |||||
Property, plant and equipment, net | 459,000 | |||||
Deferred rent | $ 3,179,000 | |||||
ASC 842 | Leasehold Improvements And Furniture, Fixtures And Equipment | ||||||
Business Acquisition [Line Items] | ||||||
Right-of-use asset | 1,071,000 | |||||
ASC 842 | Leasehold Improvements And Furniture, Fixtures And Equipment | Hard Rock Casino And Hotel, Hollywood And Tampa, Florida | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant and equipment, additions | (8,269,000) | |||||
Deferred rent | $ (7,198,000) |
RECENT RESTAURANT EXPANSION A_4
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS - Schedule of Assets Acquired (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Sep. 28, 2019 | May 15, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 15,570 | $ 15,570 | |
JB's on the Beach | |||
Business Acquisition [Line Items] | |||
Cash | $ 11 | ||
Inventory | 80 | ||
Furniture, fixtures and equipment | 200 | ||
Trademarks | 1,110 | ||
Goodwill | 5,690 | ||
Liabilities assumed | (55) | ||
Assets acquired, net | $ 7,036 |
RECENT RESTAURANT EXPANSION A_5
RECENT RESTAURANT EXPANSION AND OTHER DEVELOPMENTS - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Business Acquisition [Line Items] | ||||
Basic (in shares) | 3,502 | 3,481 | 3,500 | 3,477 |
Diluted (in shares) | 3,502 | 3,530 | 3,500 | 3,531 |
JB's on the Beach | ||||
Business Acquisition [Line Items] | ||||
Total revenues | $ 46,423 | $ 128,445 | ||
Net income | $ 4,123 | $ 3,891 | ||
Net income per share - basic (in USD per share) | $ 1.18 | $ 1.12 | ||
Net income per share - diluted (in USD per share) | $ 1.17 | $ 1.10 | ||
Basic (in shares) | 3,481 | 3,477 | ||
Diluted (in shares) | 3,530 | 3,531 |
RECENT RESTAURANT DISPOSITIONS
RECENT RESTAURANT DISPOSITIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
RECENT RESTAURANT DISPOSITIONS (Details) [Line Items] | |||||
Loss on closure of Durgin-Park | $ 0 | $ 0 | $ 0 | $ 1,106 | |
Loss of termination of lease | $ 0 | $ 364 | $ 0 | $ 364 | 0 |
Durgin Park | |||||
RECENT RESTAURANT DISPOSITIONS (Details) [Line Items] | |||||
Loss on closure of Durgin-Park | 1,106 | ||||
Accelerated depreciation | 333 | ||||
Amortization of prepaid and other expenses | 52 | ||||
Durgin Park | Trademarks | |||||
RECENT RESTAURANT DISPOSITIONS (Details) [Line Items] | |||||
Trademark impairment | $ 721 |
INVESTMENT IN AND RECEIVABLE _2
INVESTMENT IN AND RECEIVABLE FROM NEW MEADOWLANDS RACETRACK (Details) - USD ($) | Feb. 07, 2017 | Apr. 25, 2014 | Nov. 19, 2013 | Mar. 12, 2013 | Jun. 27, 2020 | Dec. 31, 2015 | Sep. 28, 2019 | Jul. 13, 2016 |
New Meadowlands Racetrack LLC | ||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||
Payments to acquire businesses | $ 4,200,000 | |||||||
Ownership percentage | 7.40% | |||||||
Payments to acquire additional interest in subsidiaries | $ 222,000 | $ 464,000 | $ 222,000 | |||||
Long-term Investments | $ 5,108,000 | |||||||
Meadowlands Newmark LLC | ||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||
Ownership percentage | 11.60% | 63.70% | ||||||
Loans to related party | $ 1,500,000 | |||||||
Interest rate | 3.00% | |||||||
Loan maturity date | Jan. 31, 2024 | |||||||
Additional loan | $ 200,000 | |||||||
Principal and accrued interest | $ 1,753,000 | $ 1,713,000 | ||||||
Ark Meadowlands LLC | ||||||||
INVESTMENT IN NEW MEADOWLANDS RACETRACK (Details) [Line Items] | ||||||||
Ownership percentage by parent | 97.00% | |||||||
Profit participation percentage | 5.00% | |||||||
Maximum loss | $ 0 | $ 0 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses And Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Sep. 28, 2019 |
Schedule of Accrued Expenses And Other Current Liabilities [Abstract] | ||
Sales tax payable | $ 312 | $ 1,141 |
Accrued wages and payroll related costs | 2,001 | 2,942 |
Customer advance deposits | 4,130 | 5,071 |
Accrued occupancy and other operating expenses | 4,717 | 1,518 |
Accrued expenses and other current liabilities | $ 11,160 | $ 10,672 |
NOTES PAYABLE - BANK - Schedule
NOTES PAYABLE - BANK - Schedule of Long-term Debt (Details) - USD ($) | Jun. 27, 2020 | Sep. 28, 2019 | May 15, 2019 |
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | |||
Notes payable | $ 46,592,000 | $ 26,648,000 | |
Less: Current maturities | (2,701,000) | (2,701,000) | |
Less: Unamortized deferred financing costs | (190,000) | (161,000) | |
Long-term debt | 43,701,000 | 23,786,000 | |
Revolving Credit Facility | |||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | |||
Notes payable | 9,666,000 | 3,366,000 | |
The Rustic Inn | |||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | |||
Notes payable | 3,901,000 | 4,043,000 | |
Shuckers Inc | |||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | |||
Notes payable | 4,505,000 | 4,675,000 | |
Oyster House | |||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | |||
Notes payable | 4,418,000 | 4,728,000 | |
Sequoia Renovation | |||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | |||
Notes payable | 6,250,000 | 6,750,000 | |
JB's on the Beach | |||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | |||
Notes payable | 2,857,000 | 3,086,000 | $ 7,000,000 |
Paycheck Protection Program Loan | |||
NOTES PAYABLE - Schedule of Long-term debt [Line Items] | |||
Notes payable | $ 14,995,000 | $ 0 |
NOTES PAYABLE - BANK - Narrativ
NOTES PAYABLE - BANK - Narrative (Details) | Apr. 20, 2020USD ($) | May 15, 2019USD ($)installment | Jun. 01, 2018USD ($)installment | Nov. 30, 2016USD ($)installment | Oct. 22, 2015USD ($)installment | Feb. 24, 2014USD ($)installment | Feb. 25, 2013USD ($)installment | Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($) | Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($) | Sep. 28, 2019USD ($) |
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Notes payable | $ 46,592,000 | $ 46,592,000 | $ 26,648,000 | |||||||||
Deferred aggregate principal payments | $ 675,000 | |||||||||||
Deferred financing costs incurred | 271,000 | 271,000 | ||||||||||
Amortization | 13,000 | $ 9,000 | 33,000 | $ 26,000 | ||||||||
The Rustic Inn | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Notes payable | 3,901,000 | 3,901,000 | 4,043,000 | |||||||||
Shuckers Inc | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Notes payable | 4,505,000 | 4,505,000 | 4,675,000 | |||||||||
Oyster House | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Notes payable | 4,418,000 | 4,418,000 | 4,728,000 | |||||||||
JB's on the Beach | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Notes payable | $ 7,000,000 | 2,857,000 | 2,857,000 | 3,086,000 | ||||||||
Sequoia Renovation | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Notes payable | 6,250,000 | 6,250,000 | 6,750,000 | |||||||||
Paycheck Protection Program Loan | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Notes payable | 14,995,000 | 14,995,000 | 0 | |||||||||
Paycheck Protection Program loan | 14,995,000 | 14,995,000 | ||||||||||
Bank Hapoalim B.M. | The Rustic Inn | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Face amount | $ 3,000,000 | |||||||||||
Number of installments | installment | 60 | 36 | ||||||||||
Frequency of periodic payment | monthly | monthly | ||||||||||
Periodic payment | $ 134,722 | $ 83,333 | ||||||||||
Date of first required payment | Mar. 25, 2014 | Mar. 25, 2013 | ||||||||||
Bank loan related to acquisition | $ 6,000,000 | |||||||||||
Bank Hapoalim B.M. | Shuckers Inc | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Face amount | $ 5,000,000 | |||||||||||
Number of installments | installment | 60 | |||||||||||
Frequency of periodic payment | monthly | |||||||||||
Periodic payment | $ 83,333 | |||||||||||
Date of first required payment | Nov. 22, 2015 | |||||||||||
Revolving Credit Facility | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Notes payable | 9,666,000 | 9,666,000 | 3,366,000 | |||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Expiration date | May 31, 2021 | |||||||||||
Current borrowing capacity | $ 10,000,000 | |||||||||||
Maximum borrowing capacity | $ 35,000,000 | |||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Credit facility | $ 9,666,000 | $ 9,666,000 | $ 3,366,000 | |||||||||
Weighted average interest rate | 3.00% | 3.00% | 4.90% | |||||||||
Available borrowing capacity | $ 0 | $ 0 | ||||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | Oyster House | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Face amount | $ 8,000,000 | |||||||||||
Number of installments | installment | 60 | |||||||||||
Frequency of periodic payment | monthly | |||||||||||
Periodic payment | $ 133,273 | |||||||||||
Date of first required payment | Jan. 1, 2017 | |||||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | JB's on the Beach | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Number of installments | installment | 23 | |||||||||||
Periodic payment | $ 250,000 | |||||||||||
Date of first required payment | Sep. 1, 2019 | |||||||||||
Balloon payment to be paid | $ 1,250,000 | |||||||||||
Notes payable | $ 7,000,000 | |||||||||||
Revolving Credit Facility | Bank Hapoalim B.M. | Sequoia Renovation | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Number of installments | installment | 23 | |||||||||||
Periodic payment | $ 114,286 | |||||||||||
Date of first required payment | Sep. 1, 2019 | |||||||||||
Balloon payment to be paid | $ 571,429 | |||||||||||
Notes payable | $ 3,200,000 | |||||||||||
Revolving Credit Facility | Amendment | Bank Hapoalim B.M. | The Rustic Inn | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Face amount | $ 4,400,000 | |||||||||||
Number of installments | installment | 27 | |||||||||||
Frequency of periodic payment | quarterly | |||||||||||
Periodic payment | $ 71,333 | |||||||||||
Date of first required payment | Sep. 1, 2018 | |||||||||||
Additional borrowing capacity | $ 2,783,333 | |||||||||||
Balloon payment to be paid | $ 2,474,000 | |||||||||||
Revolving Credit Facility | Amendment | Bank Hapoalim B.M. | Shuckers Inc | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Face amount | $ 5,100,000 | |||||||||||
Number of installments | installment | 27 | |||||||||||
Frequency of periodic payment | quarterly | |||||||||||
Periodic payment | $ 85,000 | |||||||||||
Date of first required payment | Sep. 1, 2018 | |||||||||||
Additional borrowing capacity | $ 2,433,324 | |||||||||||
Balloon payment to be paid | $ 2,805,000 | |||||||||||
Revolving Credit Facility | Amendment | Bank Hapoalim B.M. | Oyster House Gulf Shores | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Face amount | $ 3,300,000 | |||||||||||
Number of installments | installment | 19 | |||||||||||
Frequency of periodic payment | quarterly | |||||||||||
Periodic payment | $ 117,857 | |||||||||||
Date of first required payment | Sep. 1, 2018 | |||||||||||
Balloon payment to be paid | $ 1,060,716 | |||||||||||
Revolving Credit Facility | Amendment | Bank Hapoalim B.M. | Oyster House Spanish Fort | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Basis spread on variable rate | 3.50% | |||||||||||
Face amount | $ 2,200,000 | |||||||||||
Number of installments | installment | 27 | |||||||||||
Frequency of periodic payment | quarterly | |||||||||||
Periodic payment | $ 36,667 | |||||||||||
Date of first required payment | Sep. 1, 2018 | |||||||||||
Balloon payment to be paid | $ 1,210,000 | |||||||||||
Minimum | ||||||||||||
NOTES PAYABLE - BANK (Details) [Line Items] | ||||||||||||
Fixed charge coverage ratio | 1.1 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Jun. 27, 2020 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lease term | 10 years |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lease term | 25 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 27, 2020 | Jun. 27, 2020 | |
Leases [Abstract] | ||
Operating lease expense - occupancy expenses | $ 2,088 | $ 7,005 |
Occupancy lease expense - general and administrative expenses | 158 | 481 |
Variable lease expense | 132 | 2,500 |
Total lease expense | $ 2,378 | $ 9,986 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow (Details) $ in Thousands | 9 Months Ended |
Jun. 27, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows related to operating leases | $ 8,086 |
ROU assets obtained in exchange for new operating lease liabilities | $ 62,330 |
LEASES - Weighted Average Lease
LEASES - Weighted Average Lease Terms (Details) | Jun. 27, 2020 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term | 10 years 9 months 18 days |
Weighted Average Discount Rate | 5.50% |
LEASES - Annual Maturities of L
LEASES - Annual Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Sep. 29, 2019 |
Leases [Abstract] | ||
October 3, 2020 | $ 2,290 | |
October 2, 2021 | 9,236 | |
October 1, 2022 | 9,313 | |
September 30, 2023 | 7,800 | |
September 28, 2024 | 7,413 | |
Thereafter | 40,592 | |
Total future lease commitments | 76,644 | |
Less imputed interest | (18,835) | |
Present value of lease liabilities | $ 57,809 | $ 63,943 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 9 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease expiration year | 2044 |
STOCK OPTIONS (Details)
STOCK OPTIONS (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($)$ / sharesshares | Jun. 27, 2020USD ($)plan$ / sharesshares | Jun. 29, 2019USD ($) | |
STOCK OPTIONS (Details) [Line Items] | ||||
Granted (in shares) | shares | 19,500 | 266,500 | ||
Exercise price (in USD per share) | $ 12.04 | $ 21.90 | ||
Risk free interest rate | 1.50% | |||
Volatility rate | 30.30% | |||
Dividend yield | 5.20% | |||
Expected term | 10 years | |||
Purchase and retirement of treasury stock (in shares) | shares | 11,774 | |||
Compensation paid | $ | $ 1,000,000 | |||
Stock-based compensation | $ | $ 58,000 | $ 65,000 | 113,000 | $ 89,000 |
Unrecognized compensation | $ | $ 834,000 | $ 834,000 | ||
Unrecognized compensation, period for recognition | 3 years 7 months 6 days | |||
Employee Stock Option | ||||
STOCK OPTIONS (Details) [Line Items] | ||||
Number of stock option plans | plan | 2 | |||
Expiration period | 10 years | |||
Granted (in shares) | shares | 266,500 | |||
Exercise price (in USD per share) | $ 21.90 | |||
Grant date fair value (in US dollars per share) | $ 3.35 | |||
Tranche One | Employee Stock Option | ||||
STOCK OPTIONS (Details) [Line Items] | ||||
Vesting percentage | 50.00% | |||
Tranche Two | Employee Stock Option | ||||
STOCK OPTIONS (Details) [Line Items] | ||||
Vesting percentage | 50.00% | |||
Stock Option 2010 Plan | Employee Stock Option | ||||
STOCK OPTIONS (Details) [Line Items] | ||||
Granted (in shares) | shares | 23,000 | |||
Exercise price (in USD per share) | $ 19.61 | |||
Grant date fair value (in US dollars per share) | $ 3.48 | |||
Share-based payment award granted fair value | $ | $ 80,000 | |||
Stock Option 2010 Plan | Tranche One | Employee Stock Option | ||||
STOCK OPTIONS (Details) [Line Items] | ||||
Vesting percentage | 50.00% | |||
Stock Option 2010 Plan | Tranche Two | Employee Stock Option | ||||
STOCK OPTIONS (Details) [Line Items] | ||||
Vesting percentage | 50.00% | |||
Stock Option 2016 Plan | Employee Stock Option | ||||
STOCK OPTIONS (Details) [Line Items] | ||||
Granted (in shares) | shares | 11,000 | |||
Exercise price (in USD per share) | $ 20.18 | |||
Grant date fair value (in US dollars per share) | $ 3.55 | |||
Share-based payment award granted fair value | $ | $ 39,000 | |||
Stock Option 2016 Plan | Tranche One | Employee Stock Option | ||||
STOCK OPTIONS (Details) [Line Items] | ||||
Vesting percentage | 25.00% | |||
Stock Option 2016 Plan | Tranche Two | Employee Stock Option | ||||
STOCK OPTIONS (Details) [Line Items] | ||||
Vesting percentage | 25.00% |
STOCK OPTIONS (Details) - Sched
STOCK OPTIONS (Details) - Schedule of stock options, activity - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 29, 2019 | Jun. 27, 2020 | Sep. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 363,500 | ||
Granted (in shares) | 19,500 | 266,500 | |
Exercised (in shares) | (3,500) | ||
Canceled or expired (in shares) | 0 | ||
Outstanding and expected to vest, end of period (in shares) | 626,500 | 363,500 | |
Exercisable, end of period (in shares) | 337,500 | ||
Shares available for future grant (in shares) | 174,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of period (in USD per share) | $ 19.25 | ||
Exercised (in USD per share) | $ 12.04 | 21.90 | |
Canceled or expired (in USD per share) | 14.40 | ||
Outstanding and expected to vest, end of period (in USD per share) | 20.41 | $ 19.25 | |
Exercisable, end of period (in USD per share) | $ 19.26 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average contractual term, outstanding | 6 years 4 months 24 days | 4 years 8 months 12 days | |
Weighted average contractual term, exercisable | 3 years 8 months 12 days | ||
Aggregate intrinsic value, outstanding and expected to vest | $ 0 | ||
Aggregate intrinsic value, exercisable | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes | $ (3,118) | $ 283 | $ (3,213) | $ 728 |
Effective income tax rate | 52.30% | 17.60% | ||
Discrete tax provision | $ 304 |
INCOME PER SHARE OF COMMON ST_3
INCOME PER SHARE OF COMMON STOCK (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic (in shares) | 3,502 | 3,481 | 3,500 | 3,477 |
Effect of dilutive securities: | ||||
Stock options (in shares) | 0 | 49 | 0 | 54 |
Diluted (in shares) | 3,502 | 3,530 | 3,500 | 3,531 |
INCOME PER SHARE OF COMMON ST_4
INCOME PER SHARE OF COMMON STOCK - NARRATIVE (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 209,000 | 209,000 | ||
Exercise Price One | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 129,000 | 129,000 | ||
Exercise price of shares excluded from computation of earnings per share (in USD per share) | $ 14.40 | $ 14.40 | ||
Exercise Price Two | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 5,000 | 5,000 | ||
Exercise price of shares excluded from computation of earnings per share (in USD per share) | $ 20.26 | $ 20.26 | ||
Exercise Price Three | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 172,500 | 172,500 | ||
Exercise price of shares excluded from computation of earnings per share (in USD per share) | $ 22.50 | $ 22.50 | ||
Exercise Price Four | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 20,000 | 20,000 | ||
Exercise price of shares excluded from computation of earnings per share (in USD per share) | $ 22.30 | $ 22.30 | ||
Exercise Price Five | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 11,000 | 11,000 | ||
Exercise price of shares excluded from computation of earnings per share (in USD per share) | $ 20.18 | $ 20.18 | ||
Exercise Price Six | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 266,500 | 266,500 | ||
Exercise price of shares excluded from computation of earnings per share (in USD per share) | $ 21.90 | $ 21.90 | ||
Minimum | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Exercise price of shares excluded from computation of earnings per share (in USD per share) | $ 20.18 | $ 20.18 | ||
Maximum | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Exercise price of shares excluded from computation of earnings per share (in USD per share) | $ 22.50 | $ 22.50 |
DIVIDENDS (Details)
DIVIDENDS (Details) - $ / shares | Mar. 02, 2020 | Nov. 26, 2019 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 |
Dividends [Abstract] | |||||
Dividends declared (in USD per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.75 |