Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 27, 2015 | Nov. 02, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | CARROLS RESTAURANT GROUP, INC. | |
Entity Central Index Key | 809,248 | |
Current Fiscal Year End Date | --01-03 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 27, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 35,508,660 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 28, 2014 |
ASSETS | ||
Cash | $ 71,833 | $ 21,221 |
Trade and other receivables | 5,448 | 4,034 |
Inventories | 6,698 | 7,785 |
Prepaid rent | 1,659 | 3,164 |
Prepaid expenses and other current assets | 5,388 | 3,009 |
Refundable income taxes | 0 | 2,416 |
Deferred income taxes | 1,615 | 1,642 |
Total current assets | 92,641 | 43,271 |
Property and equipment, net | 188,203 | 179,383 |
Franchise rights, net | 100,045 | 102,900 |
Goodwill | 18,384 | 17,793 |
Franchise agreements, net | 14,887 | 14,602 |
Favorable leases, net | 4,319 | 4,725 |
Deferred financing fees | 5,036 | 3,399 |
Other assets | 1,688 | 3,324 |
Total assets | 425,203 | 369,397 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current portion of long-term debt | 1,333 | 1,272 |
Accounts payable | 17,163 | 19,239 |
Accrued interest | 6,891 | 2,170 |
Accrued payroll, related taxes and benefits | 24,824 | 17,321 |
Accrued real estate taxes | 5,094 | 4,908 |
Other liabilities | 14,668 | 10,273 |
Total current liabilities | 69,973 | 55,183 |
Long-term debt, net of current portion | 206,393 | 157,422 |
Lease financing obligations | 1,203 | 1,202 |
Deferred income-sale-leaseback of real estate | 13,154 | 15,108 |
Deferred income taxes | 1,615 | 1,642 |
Accrued postretirement benefits | 3,164 | 3,121 |
Unfavorable leases, net | 12,227 | 13,027 |
Other liabilities | 16,882 | 16,157 |
Total liabilities | $ 324,611 | $ 262,862 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, par value $.01 | $ 0 | $ 0 |
Voting common stock, par value $.01 | 350 | 348 |
Additional paid-in capital | 138,716 | 137,647 |
Accumulated deficit | (37,976) | (30,962) |
Accumulated other comprehensive loss | (357) | (357) |
Treasury stock, at cost | (141) | (141) |
Total stockholders' equity | 100,592 | 106,535 |
Total liabilities and stockholders' equity | $ 425,203 | $ 369,397 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 28, 2014 |
Property and equipment, accumulated depreciation | $ 219,623 | $ 206,448 |
Franchise rights, accumulated amortization | 86,618 | 83,184 |
Franchise agreements, accumulated amortization | 8,126 | 7,502 |
Favorable leases, accumulated amortization | 1,247 | 841 |
Unfavorable leases, accumulated amortization | $ 3,226 | $ 2,240 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 100 | 100 |
Preferred stock, shares outstanding | 100 | 100 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 35,508,660 | 35,222,667 |
Common stock, shares, outstanding | 35,036,710 | 34,827,240 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Revenues: | ||||
Restaurant sales | $ 217,676 | $ 179,822 | $ 629,948 | $ 499,858 |
Costs and expenses: | ||||
Cost of sales | 60,676 | 55,169 | 178,022 | 148,606 |
Restaurant wages and related expenses | 67,116 | 56,023 | 197,135 | 159,764 |
Restaurant rent expense | 14,106 | 12,205 | 43,101 | 35,269 |
Other restaurant operating expenses | 34,261 | 29,179 | 100,407 | 82,264 |
Advertising expense | 8,188 | 6,794 | 23,551 | 20,621 |
General and administrative | 11,764 | 10,031 | 36,263 | 28,923 |
Depreciation and amortization | 9,418 | 9,318 | 29,216 | 27,121 |
Impairment and other lease charges | 396 | 773 | 2,732 | 1,822 |
Other expense (income) | 0 | 0 | (126) | 25 |
Total operating expenses | 205,925 | 179,492 | 610,301 | 504,415 |
Income (loss) from operations | 11,751 | 330 | 19,647 | (4,557) |
Interest expense | 4,512 | 4,683 | 14,026 | 14,080 |
Loss on extinguishment of debt | 0 | 0 | 12,635 | 0 |
Income (loss) before income taxes | 7,239 | (4,353) | (7,014) | (18,637) |
Provision (benefit) for income taxes | 0 | (2,632) | 0 | (7,555) |
Net income (loss) | $ 7,239 | $ (1,721) | $ (7,014) | $ (11,082) |
Basic and diluted net income (loss) per share | $ 0.16 | $ (0.05) | $ (0.20) | $ (0.37) |
Weighted Average Number of Shares Outstanding, Basic | 35,009,656 | 34,797,490 | 34,930,326 | 29,571,846 |
Weighted Average Number of Shares Outstanding, Diluted | 44,678,514 | 34,797,490 | 34,930,326 | 29,571,846 |
Other comprehensive income (loss), net of tax: | ||||
Net income (loss) | $ 7,239 | $ (1,721) | $ (7,014) | $ (11,082) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ 7,239 | $ (1,721) | $ (7,014) | $ (11,082) |
Consolidated Statements of Ope5
Consolidated Statements of Operations And Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Stock-based compensation | $ 367 | $ 296 | $ 1,071 | $ 883 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Cash flows provided from (used for) operating activities: | ||
Net income (loss) | $ (7,014) | $ (11,082) |
Adjustments to reconcile net loss to net cash provided from (used for) operating activities | ||
Loss on disposals of property and equipment | 252 | 321 |
Stock-based compensation | 1,071 | 883 |
Impairment and other lease charges | 2,732 | 1,822 |
Depreciation and amortization | 29,216 | 27,121 |
Amortization of deferred financing costs | 663 | 754 |
Amortization of deferred gains from sale-leaseback transactions | (1,953) | (1,345) |
Deferred income taxes | 0 | (7,774) |
Change in refundable income taxes | 2,416 | 177 |
Loss on extinguishment of debt | 12,635 | 0 |
Changes in other operating assets and liabilities | 15,567 | 53 |
Net cash provided from (used for) operating activities | 55,585 | 10,930 |
Cash flows used for investing activities: | ||
New restaurant development | (556) | (1,661) |
Restaurant remodeling | (27,807) | (23,345) |
Other restaurant capital expenditures | (7,367) | (4,533) |
Corporate and restaurant information systems | (1,801) | (3,173) |
Total capital expenditures | (37,531) | (32,712) |
Acquisition of restaurants, net of cash acquired | (1,657) | (13,021) |
Proceeds from sale of other assets | 534 | 54 |
Properties purchased for sale-leaseback | (3,575) | (3,412) |
Proceeds from sale-leaseback transactions | 3,136 | 6,604 |
Net cash used for investing activities | (39,093) | (42,487) |
Cash flows provided from (used for) financing activities: | ||
Proceeds from Issuance of Senior Long-term Debt | 200,000 | 0 |
Early Repayment of Senior Debt | (159,771) | 0 |
Borrowings under senior credit facilities | 0 | 32,750 |
Repayments on prior revolving credit facilities | 0 | (32,750) |
Proceeds from Issuance of Common Stock | 0 | 67,327 |
Principal payments on capital leases | (945) | (756) |
Financing costs associated with issuance of debt | (5,164) | (7) |
Net cash provided from (used for) financing activities: | 34,120 | 66,564 |
Net increase (decrease) in cash | 50,612 | 35,007 |
Cash, beginning of period | 21,221 | 8,302 |
Cash, end of period | $ 71,833 | $ 43,309 |
Consolidated Statements Of Cas7
Consolidated Statements Of Cash Flows Supplemental Disclosures - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 27, 2015 | Sep. 28, 2014 | |
Statement of Cash Flows [Abstract] | ||
Interest paid on long-term debt | $ 8,565 | $ 9,019 |
Interest paid on lease financing obligations | 77 | 77 |
Accruals for capital expenditures | 3,084 | 2,514 |
Income Taxes Refunded | 2,416 | 41 |
Non-cash reduction of capital lease assets and obligation | $ 0 | $ 1,055 |
Basis Of Presentation (Notes)
Basis Of Presentation (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation Business Description. At September 27, 2015 Carrols Restaurant Group, Inc. ("Carrols Restaurant Group") operated, as franchisee, 660 restaurants under the trade name “Burger King®” in 15 Northeastern, Midwestern and Southeastern states. Basis of Consolidation. Carrols Restaurant Group is a holding company and conducts all of its operations through Carrols Corporation (“Carrols”) and its wholly-owned subsidiary, Carrols LLC, a Delaware limited liability company . The unaudited consolidated financial statements presented herein include the accounts of Carrols Restaurant Group and its wholly-owned subsidiary Carrols. Unless the context otherwise requires, Carrols Restaurant Group, Carrols and Carrols LLC are collectively referred to as the “Company.” All intercompany transactions have been eliminated in consolidation. Fiscal Year. The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended December 28, 2014 contained 52 weeks. The three and nine months ended September 27, 2015 and September 28, 2014 each contained thirteen and thirty-nine weeks, respectively. The 2015 fiscal year will end January 3, 2016 and will contain 53 weeks. Basis of Presentation. The accompanying unaudited consolidated financial statements for the three and nine months ended September 27, 2015 and September 28, 2014 have been prepared without an audit, pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain of the information and the footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such unaudited consolidated financial statements have been included. The results of operations for the three and nine months ended September 27, 2015 and September 28, 2014 are not necessarily indicative of the results to be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 28, 2014 . The December 28, 2014 consolidated balance sheet data is derived from those audited financial statements. Use of Estimates. The preparation of the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include: accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill, long-lived assets and franchise rights and lease accounting matters. Actual results could differ from those estimates. Segment Information. Operating segments are components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker in order to allocate resources and assess performance. The Company's chief operating decision maker currently evaluates the Company's operations from a number of different operational perspectives, however resource allocation decisions are made on a total-company basis. The Company derives all significant revenues from a single operating segment. Accordingly, the Company views the operating results of its Burger King restaurants as one reportable segment. Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect the Company's own assumptions. Financial instruments include cash, accounts receivable, accounts payable and long-term debt. The carrying amounts of cash, accounts receivable and accounts payable approximate fair value because of the short-term nature of these financial instruments. The fair value of the Carrols Restaurant Group 8% Senior Secured Second Lien Notes due 2022 is based on a recent trading value, which is considered Level 2, and at September 27, 2015 was approximately $211.8 million . Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. Goodwill is reviewed annually for impairment on the last day of the fiscal year, or more frequently, if impairment indicators arise. Recently Issued Accounting Pronouncements. In September 2015, the FASB issued ASU No. 2015-16 Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. These amendments require the acquirer to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting for the acquisition activity had been completed at the acquisition date. The amendments also require an entity to separately present or disclose the portion of the amount recorded in the current-period earnings, by line item, that would have been reflected in previous reporting periods. This amendment is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. The Company will implement this guidance in fiscal 2016. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this ASU. The amendments in this ASU are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. Deferred financing costs that will be presented as a reduction from the carrying value of The Company's outstanding debt upon adoption were $4.7 million at September 27, 2015 . In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides guidance to customers for accounting for fees in a cloud computing arrangement. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. ASU 2015-05 is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. |
Acquisition (Notes)
Acquisition (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Acquisitions Since the beginning of the first quarter of 2014, the Company has acquired an aggregate of 132 restaurants from other franchisees, which we refer to as the "2014 and 2015 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Market Location April 30, 2014 4 $ 681 Fort Wayne, Indiana June 30, 2014 4 3,819 (1) Pittsburgh, Pennsylvania July 22, 2014 21 8,609 Rochester, New York and Southern Tier of Western New York October 8, 2014 30 20,330 (1) Wilmington and Greenville, North Carolina November 4, 2014 64 18,761 (2) Nashville, Tennessee; Indiana and Illinois March 31, 2015 4 794 Northern Vermont August 4, 2015 5 663 South Carolina 132 $ 53,657 (1) The acquisitions on June 30, 2014 and October 8, 2014 included the purchase of one and twelve fee-owned properties, respectively. Ten of these fee-owned properties were sold in sale-leaseback transactions during the fourth quarter of 2014 for net proceeds of $12,961 and one property was sold in a sale-leaseback transaction at the beginning of the first quarter of 2015 for net proceeds of $1,123 . (2) In connection with the acquisition on November 4, 2014 , the Company entered into an agreement with BKC to remodel 46 of the restaurants acquired over a five-year period beginning in 2014. The consolidated statements of operations include restaurant sales related to the 2014 and 2015 acquisitions for the three and nine months ended September 27, 2015 of $39.4 million and $110.8 million , respectively, and for the three and nine months ended September 28, 2014 of $7.8 million and $8.6 million , respectively. It is impracticable to disclose net earnings for the post-acquisition periods as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision. The pro forma impact for the 2014 and 2015 acquisitions on the results of operations for the three and nine months ended September 28, 2014 and September 27, 2015 is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the 2014 and 2015 acquisitions been consummated at the beginning of the periods presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited pro forma operating results: Three Months Ended Nine Months Ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Restaurant sales $ 218,154 $ 209,996 $ 634,061 $ 600,197 Net income (loss) $ 7,319 $ (814 ) $ (6,669 ) $ (8,011 ) Basic and diluted net income (loss) per share $ 0.16 $ (0.02 ) $ (0.19 ) $ (0.27 ) This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings or any transaction costs related to the 2014 and 2015 acquired restaurants. On October 1, 2015 , the Company completed the acquisition of five restaurants in Ohio and West Virginia for a purchase price of $5.0 million , including one fee-owned property, and on October 20, 2015 the Company completed the acquisition of one restaurant in Michigan for a purchase price of $0.7 million . |
Intangible Assets (Notes)
Intangible Assets (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Franchise Rights [Text Block] | Intangible Assets Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of its fiscal year and does not believe circumstances have changed since the last assessment date which would make it necessary to reassess its value. There were no goodwill impairment losses during the three and nine months ended September 27, 2015 and September 28, 2014 . The change in goodwill for the nine months ended September 27, 2015 is summarized below: Balance at December 28, 2014 $ 17,793 Acquisition of nine restaurants (Note 2) 591 Balance at September 27, 2015 $ 18,384 Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. The Company assesses the potential impairment of franchise rights whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If an indicator of impairment exists, an estimate of the aggregate undiscounted cash flows from the acquired restaurants is compared to the respective carrying value of franchise rights for each acquisition. If an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. No impairment charges were recorded related to the Company’s franchise rights for the three and nine months ended September 27, 2015 or September 28, 2014 . The change in franchise rights for the nine months ended September 27, 2015 is summarized below: Balance at December 28, 2014 $ 102,900 Acquisition of nine restaurants (Note 2) 579 Amortization expense (3,434 ) Balance at September 27, 2015 $ 100,045 Amortization expense related to franchise rights was $1.2 million and $1.1 million for the three months ended September 27, 2015 and September 28, 2014 , respectively, and $3.4 million and $3.2 million for the nine months ended September 27, 2015 and September 28, 2014 , respectively. The Company expects annual amortization expense to be $4.7 million in 2015 and in each of the following five years. Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. Additions to unfavorable leases from the 2015 acquisitions referenced in Note 2 totaled $0.2 million for the three and nine months ended September 27, 2015 . The net reduction of rent expense related to the amortization of favorable and unfavorable leases was $0.2 million for both the three months ended September 27, 2015 and September 28, 2014 , and was $0.6 million and $0.5 million for the nine months ended September 27, 2015 and September 28, 2014 , respectively. The Company expects the net annual reduction of rent expense to be $0.8 million for all of 2015 and 2016 , $0.7 million in 2017 and 2018 and $0.6 million in 2019 and 2020 . |
Impairment Of Long-Lived Assets
Impairment Of Long-Lived Assets And Other Lease Charges (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment Charges [Text Block] | Impairment of Long-Lived Assets and Other Lease Charges The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. The Company determined the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions and the Company’s history of using these assets in the operation of its business. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. During the three months ended September 27, 2015 , the Company recorded asset impairment charges of $0.4 million , resulting primarily from capital expenditures at previously impaired restaurants. During the nine months ended September 27, 2015 , the Company recorded other lease charges of $1.5 million associated with the closure of ten of the Company's restaurants and asset impairment charges of $1.2 million , including $1.0 million of capital expenditures at previously impaired restaurants. During the three months ended September 28, 2014 , the Company recorded impairment and other lease charges of $0.8 million consisting of asset impairment charges of $0.4 million due primarily to capital expenditures at previously impaired restaurants and other lease charges of $0.3 million associated with the closure of two of the Company's restaurants. During the nine months ended September 28, 2014 , the Company recorded other lease charges of $0.8 million associated with the closure of three of the Company's restaurants, including $0.1 million to terminate an operating lease, and asset impairment charges of $1.0 million consisting of approximately $0.6 million of capital expenditures at previously impaired restaurants and approximately $0.5 million related to initial impairment charges for five underperforming restaurants. The following table presents the activity in the accrual for closed restaurant locations: Nine Months Ended Year Ended September 27, 2015 December 28, 2014 Balance, beginning of the period $ 1,721 $ 1,466 Provisions for restaurant closures 1,472 724 Changes in estimates of accrued costs (45 ) 87 Payments, net (1,003 ) (721 ) Other adjustments, including the effect of discounting future obligations 157 165 Balance, end of the period $ 2,302 $ 1,721 |
Other Liabilities, Long-Term (N
Other Liabilities, Long-Term (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities, Long-Term Other liabilities, long-term, at September 27, 2015 and December 28, 2014 consisted of the following: September 27, 2015 December 28, 2014 Accrued occupancy costs $ 10,195 $ 9,287 Accrued workers’ compensation and general liability claims 3,517 3,211 Deferred compensation 885 567 Long-term obligation to BKC for right of first refusal 378 939 Other 1,907 2,153 $ 16,882 $ 16,157 Accrued occupancy costs above include long-term obligations pertaining to closed restaurant locations, contingent rent, and accruals to expense operating lease rental payments on a straight-line basis over the lease term. |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-term Debt Long-term debt at September 27, 2015 and December 28, 2014 consisted of the following: September 27, 2015 December 28, 2014 Collateralized: Carrols Restaurant Group 8% Senior Secured Second Lien Notes $ 200,000 $ — Carrols Restaurant Group 11.25% Senior Secured Second Lien Notes — 150,000 Capital leases 7,726 8,694 207,726 158,694 Less: current portion (1,333 ) (1,272 ) $ 206,393 $ 157,422 On April 29, 2015, the Company issued $200.0 million of 8% Senior Secured Second Lien Notes due 2022 (the "8% Notes") pursuant to an indenture dated as of April 29, 2015 governing such notes. In connection with the issuance of the 8% Notes, on April 15, 2015 the Company commenced a cash tender offer to purchase or redeem its outstanding $150.0 million aggregate principal amount of 11.25% Senior Secured Second Lien Notes (the "11.25% Notes"). The tender and redemption premium associated with the repurchase and redemption of the 11.25% Notes and other transactions costs of approximately $9.8 million and the write-off of $2.8 million of previously deferred financing costs related to the 11.25% Notes are reflected as loss on extinguishment of debt in the nine months ended September 27, 2015 . 8% Notes. The 8% Notes mature and are payable on May 1, 2022. Interest is payable semi-annually on May 1 and November 1 commencing November 1, 2015. The 8% Notes are guaranteed by the Company's subsidiaries and are secured by second-priority liens on substantially all of the Company's and its subsidiaries' assets (including a pledge of all of the capital stock and equity interests of its subsidiaries). The 8% Notes are redeemable at the option of the Company in whole or in part at any time after May 1, 2018 at a price of 104% of the principal amount plus accrued and unpaid interest, if any, if redeemed before May 1, 2019 , 102% of the principal amount plus accrued and unpaid interest, if any, if redeemed after May 1, 2019 but before May 1, 2020 and 100% of the principal amount plus accrued and unpaid interest, if any, if redeemed after May 1, 2020 . Prior to May 1, 2018 , the Company may redeem some or all of the 8% Notes at a redemption price of 100% of the principal amount of each note plus accrued and unpaid interest, if any, and a make-whole premium. In addition, the indenture governing the 8% Notes also provides that the Company may redeem up to 35% of the 8% Notes using the proceeds of certain equity offerings completed before May 15, 2018. The 8% Notes are jointly and severally guaranteed, unconditionally and in full by the Company's subsidiaries which are directly or indirectly 100% owned by the Company. Separate condensed consolidating information is not included because Carrols Restaurant Group is a holding company that has no independent assets or operations. There are no significant restrictions on its ability or any of the guarantor subsidiaries' ability to obtain funds from its respective subsidiaries. All consolidated amounts in our financial statements are representative of the combined guarantors. The indenture governing the 8% Notes includes certain covenants, including limitations and restrictions on the Company and its subsidiaries who are guarantors under such indenture to, among other things: incur indebtedness or issue preferred stock; incur liens; pay dividends or make distributions in respect of capital stock or make certain other restricted payments or investments; sell assets; agree to payment restrictions affecting certain subsidiaries; enter into transaction with affiliates; or merge, consolidate or sell substantially all of the Company's assets. The indenture governing the 8% Notes and the security agreement provide that any capital stock and equity interests of any of the Company's subsidiaries will be excluded from the collateral to the extent that the par value, book value or market value of such capital stock or equity interests exceeds 20% of the aggregate principal amount of the 8% Notes then outstanding. The indenture governing the 8% Notes contains customary default provisions, including without limitation, a cross default provision pursuant to which it is an event of default under the 8% Notes and the indenture governing the 8% Notes if there is a default under any of the Company's indebtedness having an outstanding principal amount of $20.0 million or more which results in the acceleration of such indebtedness prior to its stated maturity or is caused by a failure to pay principal when due. Senior Credit Facility. On April 29, 2015, the Company entered into an amendment to its senior credit facility which increased aggregate revolving credit borrowings, extended the maturity term, increased potential incremental increases in revolving credit borrowings (subject to approval of the lenders), amended certain financial ratios and reduced the interest rate for revolving credit borrowings. The Company's senior credit facility, as amended, provides for aggregate revolving credit borrowings of up to $30.0 million (including $20.0 million available for letters of credit) and matures on April 29, 2020. The senior credit facility, as amended, also provides for potential incremental borrowing increases of up to $25.0 million , in the aggregate. At September 27, 2015 , there were no revolving credit borrowings outstanding under the senior credit facility. Effective on April 29, 2015, borrowings under the senior credit facility bear interest at a rate per annum, at the Company’s option, of: (i) the Alternate Base Rate plus the applicable margin of 2.00% to 2.75% based on the Company’s Adjusted Leverage Ratio, or (ii) the LIBOR Rate plus the applicable margin of 3.00% to 3.75% based on the Company’s Adjusted Leverage Ratio. At September 27, 2015 the Company's LIBOR rate margin was 3.50% based on the Company's Adjusted Leverage Ratio at that date. The Company’s obligations under the senior credit facility are guaranteed by its subsidiaries and are secured by first priority liens on substantially all of the assets of the Company and its subsidiaries, including a pledge of all of the capital stock and equity interests of its subsidiaries. Under the senior credit facility, the Company is required to make mandatory prepayments of borrowings in the event of dispositions of assets, debt issuances and insurance and condemnation proceeds (all subject to certain exceptions). The senior credit facility contains certain covenants, including without limitation, those limiting the Company’s and its subsidiaries' ability to, among other things, incur indebtedness, incur liens, sell or acquire assets or businesses, change the character of its business in all material respects, engage in transactions with related parties, make certain investments, make certain restricted payments or pay dividends. In addition, the senior credit facility requires the Company to meet certain financial ratios, including a Fixed Charge Coverage Ratio, Adjusted Leverage Ratio and First Lien Leverage Ratio (all as defined under the amended senior credit facility). The Company was in compliance with the covenants under its senior credit facility at September 27, 2015 . The senior credit facility contains customary default provisions, including that the lenders may terminate their obligation to advance and may declare the unpaid balance of borrowings, or any part thereof, immediately due and payable upon the occurrence and during the continuance of customary defaults which include, without limitation, payment default, covenant defaults, bankruptcy type defaults, cross-defaults on other indebtedness, judgments or upon the occurrence of a change of control. After reserving $12.0 million for letters of credit issued under the senior credit facility for workers’ compensation and other insurance policies, $18.0 million was available for revolving credit borrowings under the senior credit facility at September 27, 2015 . |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The benefit for income taxes for the three and nine months ended September 27, 2015 and September 28, 2014 was comprised of the following: Three Months Ended Nine Months Ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Current $ — $ — $ — $ 219 Deferred 1,989 (2,632 ) (4,210 ) (7,774 ) Valuation allowance (1,989 ) — $ 4,210 $ — $ — $ (2,632 ) $ — $ (7,555 ) The benefit for income taxes for the three and nine months ended September 28, 2014 was derived using an estimated effective annual income tax rate for 2014 of 37.5% , which excluded any discrete tax adjustments. The Company performed an assessment of positive and negative evidence regarding the realization of its deferred income tax assets at December 28, 2014 as required by ASC 740. Under ASC 740, the weight given to negative and positive evidence is commensurate only to the extent that such evidence can be objectively verified. ASC 740 also prescribes that objective historical evidence, in particular the Company’s three-year cumulative loss position at December 28, 2014 , be given greater weight than subjective evidence, including the Company’s forecasts of future taxable income, which include assumptions that cannot be objectively verified. The Company determined, based on the required weight of that evidence under ASC 740, that a valuation allowance was needed for all of its net deferred income tax assets at December 28, 2014 . As a result, the Company recorded a valuation reserve of $24.3 million in the fourth quarter of 2014. Consequently, the Company recorded no expense or benefit from income taxes in the three months and nine months ended September 27, 2015 . The Company decreased its valuation reserve by $1.9 million in the three months ended September 27, 2015 and increased its valuation reserve by $4.3 million in the nine months ended September 27, 2015 for changes in the net deferred income tax assets recognized in the respective periods. At September 27, 2015 , the Company's valuation allowance on all its net deferred tax assets was $31.7 million . The Company's net deferred tax assets at September 27, 2015 included $3.4 million related to certain state net operating loss carryforwards, of which the most significant states begin to expire in 2025. The Company's federal net operating loss carryforwards expire beginning in 2033 . As of September 27, 2015 , the Company had federal net operating loss carryforwards of approximately $36.5 million . The estimation of future taxable income for federal and state purposes and the Company's ability to realize deferred tax assets can significantly change based on future events and operating results. Thus, recorded valuation allowances may be subject to future changes that could have a material impact on the consolidated financial statements. If the Company determines that it is more likely than not that it will realize these deferred tax assets in the future, the Company will make an adjustment to the valuation allowance at that time. The Company's policy is to recognize interest and/or penalties related to uncertain tax positions in income tax expense. At September 27, 2015 and December 28, 2014 , the Company had no unrecognized tax benefits and no accrued interest related to uncertain tax positions. The tax years 2012 - 2014 remain open to examination by the major taxing jurisdictions to which the Company is subject. In 2014, the Company concluded an examination of its consolidated federal income tax return for the tax years 2009 through 2012. Although it is not reasonably possible to estimate the amount by which unrecognized tax benefits may increase within the next twelve months due to the uncertainties regarding the timing of any examinations, the Company does not expect unrecognized tax benefits to significantly change in the next twelve months. |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense in the three months ended September 27, 2015 and September 28, 2014 was $0.4 million and $0.3 million , respectively, and for the nine months ended September 27, 2015 and September 28, 2014 was $1.1 million and $0.9 million , respectively. As of September 27, 2015 , the total unrecognized stock-based compensation expense relating to non-vested shares was approximately $2.9 million , which the Company expects to recognize over a remaining weighted average vesting period for non-vested shares of 2.6 years. The Company expects to record an additional $0.4 million as compensation expense for the remainder of 2015 . A summary of all non-vested shares activity for the nine months ended September 27, 2015 was as follows: Shares Weighted Average Grant Date Price Non-vested at December 28, 2014 395,427 $ 6.68 Granted 295,741 7.89 Vested (209,470 ) 7.28 Forfeited (9,748 ) 6.21 Non-vested at September 27, 2015 471,950 7.39 The fair value of the non-vested shares is based on the closing price on the date of grant. |
Commitments And Contingencies (
Commitments And Contingencies (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Lease Guarantees. Fiesta Restaurant Group, Inc. ("Fiesta"), a former wholly-owned subsidiary of the Company, was spun-off in 2012 to the Company's stockholders. As of September 27, 2015 , the Company is a guarantor under 31 Fiesta restaurant property leases, with lease terms expiring on various dates through 2030, and is the primary lessee on five Fiesta restaurant property leases, which it subleases to Fiesta. The Company is fully liable for all obligations under the terms of the leases in the event that Fiesta fails to pay any sums due under the lease, subject to indemnification provisions of the Separation and Distribution Agreement entered into in connection with the spin-off of Fiesta. The maximum potential amount of future undiscounted rental payments the Company could be required to make under these leases at September 27, 2015 was $34.0 million . The obligations under these leases will generally continue to decrease over time as these operating leases expire. No payments related to these guarantees have been made by the Company to date and none are expected to be required to be made in the future. The Company has not recorded a liability for these guarantees in accordance with ASC 460 - Guarantees as Fiesta has indemnified the Company for all such obligations and the Company did not believe it was probable it would be required to perform under any of the guarantees or direct obligations. Litigation. The Company is a party to various litigation matters that arise in the ordinary course of business. The Company does not believe that the outcome of any of these matters meet the disclosure or recognition standards, nor will they have a material adverse effect on its consolidated financial statements. |
Related Parties (Notes)
Related Parties (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Transactions with Related Parties In 2012, the Company issued to Burger King Corporation ("BKC") 100 shares of Series A Convertible Preferred Stock which is convertible into 9,414,580 shares of Carrols Restaurant Group Common Stock, which currently constitutes approximately 21.0% of the outstanding shares of the Company's common stock on a fully diluted basis. Pursuant to the terms of the Series A Convertible Preferred Stock, BKC has two representatives on the Company's board of directors. Each of the Company's restaurants operates under a separate franchise agreement with BKC. These franchise agreements generally provide for an initial term of twenty years and currently have an initial franchise fee of fifty thousand dollars. Any franchise agreement, including renewals, can be extended at the Company's discretion for an additional 20 year term, with BKC's approval, provided that, among other things, the restaurant meets the current Burger King image standard and the Company is not in default under terms of the franchise agreement. In addition to the initial franchise fee, the Company generally pays BKC a monthly royalty at a rate of 4.5 % of sales. Royalty expense was $9.2 million and $7.6 million in the three months ended September 27, 2015 and September 28, 2014 , respectively and was $26.5 million and $21.0 million in the nine months ended September 27, 2015 and September 28, 2014 , respectively. The Company is also generally required to contribute 4 % of restaurant sales from its Burger King restaurants to an advertising fund utilized by BKC for its advertising, promotional programs and public relations activities, and additional amounts for participation in local advertising campaigns in markets that approve such additional spending. Advertising expense related to BKC was $8.1 million and $6.8 million in the three months ended September 27, 2015 and September 28, 2014 , respectively, and was $23.5 million and $20.3 million in the nine months ended September 27, 2015 and September 28, 2014 , respectively. As of September 27, 2015 , the Company leased 290 of its restaurant locations from BKC and for 164 of these locations the terms and conditions of the lease with BKC are identical to those between BKC and the third-party lessor. Aggregate rent under these BKC leases for the three months ended September 27, 2015 and September 28, 2014 was $7.0 million and $6.7 million , respectively, and was $21.4 million and $19.6 million for the nine months ended September 27, 2015 and September 28, 2014 , respectively. The Company believes the related party lease terms have not been significantly affected by the fact that the Company and BKC are deemed related parties. As of September 27, 2015 , the Company owed BKC $1.1 million associated with its purchase of BKC's right of first refusal in 20 states as part of the acquisition of restaurants from BKC in 2012 and $5.7 million related to the payment of advertising, royalties and rent, which is remitted on a monthly basis. |
Net Income (Loss) Per Share (No
Net Income (Loss) Per Share (Notes) | 9 Months Ended |
Sep. 27, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) per Share The Company applies the two-class method to calculate and present net income (loss) per share. The Company's non-vested share awards and Series A Convertible Preferred Stock issued to BKC contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net loss per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. As the Company incurred net losses for the nine months ended September 27, 2015 and September 28, 2014 and the three months ended September 28, 2014 and those losses are not allocated to the participating securities under the two-class method, such method is not applicable for the aforementioned reporting periods. Basic net income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income (loss) per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method. The following table sets forth the calculation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Basic net income (loss) per share: Net income (loss) $ 7,239 $ (1,721 ) $ (7,014 ) $ (11,082 ) Less: Income attributable to non-vested restricted shares (80 ) — — — Less: Income attributable to preferred stock (1,517 ) — — — Net income available to common stockholders $ 5,642 $ (1,721 ) $ (7,014 ) $ (11,082 ) Weighted average common shares outstanding 35,009,656 34,797,490 34,930,326 29,571,846 Basic net income (loss) per share $ 0.16 $ (0.05 ) $ (0.20 ) $ (0.37 ) Diluted net income (loss) per share: Shares used in computed basic net income (loss) per share 35,009,656 34,797,490 34,930,326 29,571,846 Dilutive effect of preferred stock and non-vested shares 9,668,858 — — — Shares used in computed diluted net income (loss) per share 44,678,514 34,797,490 34,930,326 29,571,846 Diluted net income (loss) per share $ 0.16 $ (0.05 ) $ (0.20 ) $ (0.37 ) Shares excluded from diluted net income (loss) per share computation (1) — 9,813,285 9,886,530 9,813,285 (1) Shares issuable upon conversion of preferred stock and non-vested shares were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 9 Months Ended |
Sep. 27, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Consolidation. Carrols Restaurant Group is a holding company and conducts all of its operations through Carrols Corporation (“Carrols”) and its wholly-owned subsidiary, Carrols LLC, a Delaware limited liability company . The unaudited consolidated financial statements presented herein include the accounts of Carrols Restaurant Group and its wholly-owned subsidiary Carrols. Unless the context otherwise requires, Carrols Restaurant Group, Carrols and Carrols LLC are collectively referred to as the “Company.” All intercompany transactions have been eliminated in consolidation. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year. The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended December 28, 2014 contained 52 weeks. The three and nine months ended September 27, 2015 and September 28, 2014 each contained thirteen and thirty-nine weeks, respectively. |
Basis of Presentation, Policy [Policy Text Block] | Basis of Presentation. The accompanying unaudited consolidated financial statements for the three and nine months ended September 27, 2015 and September 28, 2014 have been prepared without an audit, pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain of the information and the footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such unaudited consolidated financial statements have been included. The results of operations for the three and nine months ended September 27, 2015 and September 28, 2014 are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates. The preparation of the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include: accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill, long-lived assets and franchise rights and lease accounting matters. Actual results could differ from those estimates. |
Segment Reporting, Policy [Policy Text Block] | Segment Information. Operating segments are components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker in order to allocate resources and assess performance. The Company's chief operating decision maker currently evaluates the Company's operations from a number of different operational perspectives, however resource allocation decisions are made on a total-company basis. The Company derives all significant revenues from a single operating segment. Accordingly, the Company views the operating results of its Burger King restaurants as one reportable segment. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect the Company's own assumptions. Financial instruments include cash, accounts receivable, accounts payable and long-term debt. The carrying amounts of cash, accounts receivable and accounts payable approximate fair value because of the short-term nature of these financial instruments. The fair value of the Carrols Restaurant Group 8% Senior Secured Second Lien Notes due 2022 is based on a recent trading value, which is considered Level 2, and at September 27, 2015 was approximately $211.8 million . Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. Goodwill is reviewed annually for impairment on the last day of the fiscal year, or more frequently, if impairment indicators arise. |
Intangible Assets (Policies)
Intangible Assets (Policies) | 9 Months Ended |
Sep. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of its fiscal year and does not believe circumstances have changed since the last assessment date which would make it necessary to reassess its value. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty -year renewal period. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. |
Impairment Of Long-Lived Asse21
Impairment Of Long-Lived Assets And Other Lease Charges (Policies) | 9 Months Ended |
Sep. 27, 2015 | |
Asset Impairment Charges [Abstract] | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. The Company determined the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions and the Company’s history of using these assets in the operation of its business. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. |
Stock-Based Compensation Polici
Stock-Based Compensation Policies (Policies) | 9 Months Ended |
Sep. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Costs, Policy [Policy Text Block] | The fair value of the non-vested shares is based on the closing price on the date of grant. |
Net Income (Loss) Per Share (Po
Net Income (Loss) Per Share (Policies) | 9 Months Ended |
Sep. 27, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | The Company applies the two-class method to calculate and present net income (loss) per share. The Company's non-vested share awards and Series A Convertible Preferred Stock issued to BKC contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net loss per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. As the Company incurred net losses for the nine months ended September 27, 2015 and September 28, 2014 and the three months ended September 28, 2014 and those losses are not allocated to the participating securities under the two-class method, such method is not applicable for the aforementioned reporting periods. Basic net income (loss) per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net income (loss) per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Since the beginning of the first quarter of 2014, the Company has acquired an aggregate of 132 restaurants from other franchisees, which we refer to as the "2014 and 2015 acquired restaurants", in the following transactions: Closing Date Number of Restaurants Purchase Price Market Location April 30, 2014 4 $ 681 Fort Wayne, Indiana June 30, 2014 4 3,819 (1) Pittsburgh, Pennsylvania July 22, 2014 21 8,609 Rochester, New York and Southern Tier of Western New York October 8, 2014 30 20,330 (1) Wilmington and Greenville, North Carolina November 4, 2014 64 18,761 (2) Nashville, Tennessee; Indiana and Illinois March 31, 2015 4 794 Northern Vermont August 4, 2015 5 663 South Carolina 132 $ 53,657 (1) The acquisitions on June 30, 2014 and October 8, 2014 included the purchase of one and twelve fee-owned properties, respectively. Ten of these fee-owned properties were sold in sale-leaseback transactions during the fourth quarter of 2014 for net proceeds of $12,961 and one property was sold in a sale-leaseback transaction at the beginning of the first quarter of 2015 for net proceeds of $1,123 . (2) In connection with the acquisition on November 4, 2014 , the Company entered into an agreement with BKC to remodel 46 of the restaurants acquired over a five-year period beginning in 2014. |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table summarizes the Company's unaudited pro forma operating results: Three Months Ended Nine Months Ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Restaurant sales $ 218,154 $ 209,996 $ 634,061 $ 600,197 Net income (loss) $ 7,319 $ (814 ) $ (6,669 ) $ (8,011 ) Basic and diluted net income (loss) per share $ 0.16 $ (0.02 ) $ (0.19 ) $ (0.27 ) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The change in goodwill for the nine months ended September 27, 2015 is summarized below: Balance at December 28, 2014 $ 17,793 Acquisition of nine restaurants (Note 2) 591 Balance at September 27, 2015 $ 18,384 |
Schedule of Franchise Rights [Table Text Block] | The change in franchise rights for the nine months ended September 27, 2015 is summarized below: Balance at December 28, 2014 $ 102,900 Acquisition of nine restaurants (Note 2) 579 Amortization expense (3,434 ) Balance at September 27, 2015 $ 100,045 |
Impairment Of Long-Lived Asse26
Impairment Of Long-Lived Assets And Other Lease Charges (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Asset Impairment Charges [Abstract] | |
Schedule of Closed-Store Restaurant Reserve by Type of Cost [Table Text Block] | The following table presents the activity in the accrual for closed restaurant locations: Nine Months Ended Year Ended September 27, 2015 December 28, 2014 Balance, beginning of the period $ 1,721 $ 1,466 Provisions for restaurant closures 1,472 724 Changes in estimates of accrued costs (45 ) 87 Payments, net (1,003 ) (721 ) Other adjustments, including the effect of discounting future obligations 157 165 Balance, end of the period $ 2,302 $ 1,721 |
Other Liabilities, Long-Term (T
Other Liabilities, Long-Term (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Assets and Other Liabilities [Table Text Block] | Other liabilities, long-term, at September 27, 2015 and December 28, 2014 consisted of the following: September 27, 2015 December 28, 2014 Accrued occupancy costs $ 10,195 $ 9,287 Accrued workers’ compensation and general liability claims 3,517 3,211 Deferred compensation 885 567 Long-term obligation to BKC for right of first refusal 378 939 Other 1,907 2,153 $ 16,882 $ 16,157 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt at September 27, 2015 and December 28, 2014 consisted of the following: September 27, 2015 December 28, 2014 Collateralized: Carrols Restaurant Group 8% Senior Secured Second Lien Notes $ 200,000 $ — Carrols Restaurant Group 11.25% Senior Secured Second Lien Notes — 150,000 Capital leases 7,726 8,694 207,726 158,694 Less: current portion (1,333 ) (1,272 ) $ 206,393 $ 157,422 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The benefit for income taxes for the three and nine months ended September 27, 2015 and September 28, 2014 was comprised of the following: Three Months Ended Nine Months Ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Current $ — $ — $ — $ 219 Deferred 1,989 (2,632 ) (4,210 ) (7,774 ) Valuation allowance (1,989 ) — $ 4,210 $ — $ — $ (2,632 ) $ — $ (7,555 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Nonvested Share Activity [Table Text Block] | A summary of all non-vested shares activity for the nine months ended September 27, 2015 was as follows: Shares Weighted Average Grant Date Price Non-vested at December 28, 2014 395,427 $ 6.68 Granted 295,741 7.89 Vested (209,470 ) 7.28 Forfeited (9,748 ) 6.21 Non-vested at September 27, 2015 471,950 7.39 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 27, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the calculation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended September 27, 2015 September 28, 2014 September 27, 2015 September 28, 2014 Basic net income (loss) per share: Net income (loss) $ 7,239 $ (1,721 ) $ (7,014 ) $ (11,082 ) Less: Income attributable to non-vested restricted shares (80 ) — — — Less: Income attributable to preferred stock (1,517 ) — — — Net income available to common stockholders $ 5,642 $ (1,721 ) $ (7,014 ) $ (11,082 ) Weighted average common shares outstanding 35,009,656 34,797,490 34,930,326 29,571,846 Basic net income (loss) per share $ 0.16 $ (0.05 ) $ (0.20 ) $ (0.37 ) Diluted net income (loss) per share: Shares used in computed basic net income (loss) per share 35,009,656 34,797,490 34,930,326 29,571,846 Dilutive effect of preferred stock and non-vested shares 9,668,858 — — — Shares used in computed diluted net income (loss) per share 44,678,514 34,797,490 34,930,326 29,571,846 Diluted net income (loss) per share $ 0.16 $ (0.05 ) $ (0.20 ) $ (0.37 ) Shares excluded from diluted net income (loss) per share computation (1) — 9,813,285 9,886,530 9,813,285 (1) Shares issuable upon conversion of preferred stock and non-vested shares were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. |
Basis Of Presentation (Details)
Basis Of Presentation (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 27, 2015USD ($) | Sep. 28, 2014 | Sep. 27, 2015USD ($) | Sep. 28, 2014 | Jan. 03, 2016 | Dec. 28, 2014USD ($) | |
Entity Information [Line Items] | ||||||
Number of Restaurants | 660 | 660 | ||||
Number of States in which Entity Operates | 15 | 15 | ||||
Weeks In Fiscal Period | 13 | 13 | 39 | 39 | 52 | |
Long-term Debt, Fair Value | $ 211,800 | $ 211,800 | ||||
Deferred financing fees | 5,036 | $ 5,036 | $ 3,399 | |||
Minimum [Member] | ||||||
Entity Information [Line Items] | ||||||
Weeks In Fiscal Period | 52 | |||||
Maximum [Member] | ||||||
Entity Information [Line Items] | ||||||
Weeks In Fiscal Period | 53 | |||||
Subsequent Event [Member] | ||||||
Entity Information [Line Items] | ||||||
Weeks In Fiscal Period | 53 | |||||
Liability [Member] | ||||||
Entity Information [Line Items] | ||||||
Deferred financing fees | $ 4,700 | $ 4,700 |
Acquisition (Details)
Acquisition (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 21 Months Ended | ||||||
Oct. 20, 2015USD ($) | Sep. 27, 2015USD ($)$ / shares | Jun. 28, 2015USD ($) | Mar. 29, 2015USD ($) | Dec. 28, 2014USD ($) | Sep. 28, 2014USD ($)$ / shares | Jun. 29, 2014USD ($) | Sep. 27, 2015USD ($)$ / shares | Sep. 28, 2014USD ($)$ / shares | Sep. 27, 2015USD ($) | |
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 9 | |||||||||
Business acquisitions, purchase price | $ 1,657 | $ 13,021 | ||||||||
Proceeds from sale-leaseback transactions | 3,136 | 6,604 | ||||||||
Restaurant sales | $ 217,676 | $ 179,822 | 629,948 | 499,858 | ||||||
April 30, 2014 Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 4 | |||||||||
Business Acquisition, Effective Date of Acquisition | Apr. 30, 2014 | |||||||||
Business acquisitions, purchase price | $ 681 | |||||||||
June 30, 2014 Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 4 | |||||||||
Business Acquisition, Effective Date of Acquisition | Jun. 30, 2014 | |||||||||
Business acquisitions, purchase price | $ 3,819 | |||||||||
Business acquisitions, properties purchased | 1 | |||||||||
July 22, 2014 Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 21 | |||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 22, 2014 | |||||||||
Business acquisitions, purchase price | $ 8,609 | |||||||||
October 8, 2014 Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 30 | |||||||||
Business Acquisition, Effective Date of Acquisition | Oct. 8, 2014 | |||||||||
Business acquisitions, purchase price | $ 20,330 | |||||||||
Business acquisitions, properties purchased | 12 | |||||||||
November 4, 2014 Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 64 | |||||||||
Business Acquisition, Effective Date of Acquisition | Nov. 4, 2014 | |||||||||
Business acquisitions, purchase price | $ 18,761 | |||||||||
Restaurants to be remodeled | 46 | |||||||||
March 31, 2015 Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 4 | |||||||||
Business Acquisition, Effective Date of Acquisition | Mar. 31, 2015 | |||||||||
Business acquisitions, purchase price | $ 794 | |||||||||
August 4, 2015 Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 5 | |||||||||
Business Acquisition, Effective Date of Acquisition | Aug. 4, 2015 | |||||||||
Business acquisitions, purchase price | $ 663 | |||||||||
2014 and 2015 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 132 | |||||||||
Business acquisitions, purchase price | $ 53,657 | |||||||||
Properties sold in sale-leaseback transactions | 1 | 10 | ||||||||
Proceeds from sale-leaseback transactions | $ 1,123 | $ 12,961 | ||||||||
Restaurant sales | $ 39,400 | 7,800 | 110,800 | 8,600 | ||||||
Business Acquisition, Pro Forma Revenue | 218,154 | 209,996 | 634,061 | 600,197 | ||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 7,319 | $ (814) | $ (6,669) | $ (8,011) | ||||||
Business Acquisition, Pro Forma Earnings Per Share, Basic and Diluted | $ / shares | $ 0.16 | $ (0.02) | $ (0.19) | $ (0.27) | ||||||
Subsequent Event [Member] | October 1, 2015 Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 5 | |||||||||
Business acquisitions, purchase price | $ 5,000 | |||||||||
Business acquisitions, properties purchased | 1 | |||||||||
Subsequent Event [Member] | October 20, 2015 Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of Restaurants Acquired | 1 | |||||||||
Business acquisitions, purchase price | $ 700 |
Goodwill (Details)
Goodwill (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Sep. 27, 2015USD ($) | Dec. 28, 2014USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | |
Goodwill | 18,384,000 | $ 18,384,000 | $ 17,793,000 | |
Goodwill, Acquired During Period | $ 591,000 | |||
Number of Restaurants Acquired | 9 |
Franchise Rights (Details)
Franchise Rights (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Dec. 28, 2014USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Franchise rights, net | $ 100,045,000 | $ 100,045,000 | $ 102,900,000 | ||
Franchisee Franchise Arrangements, Franchise Agreement, Renewal Term | 20 years | ||||
Franchise rights, acquired during period | $ 579,000 | ||||
Number of Restaurants Acquired | 9 | ||||
Franchise Rights [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | $ 0 | $ 0 | ||
Amortization of Intangible Assets | 1,200,000 | $ 1,100,000 | 3,434,000 | $ 3,200,000 | |
Amortization Expense, Expected Full Year | 4,700,000 | 4,700,000 | |||
Next Fiscal Year | 4,700,000 | 4,700,000 | |||
Second Fiscal Year | 4,700,000 | 4,700,000 | |||
Third Fiscal Year | 4,700,000 | 4,700,000 | |||
Fourth Fiscal Year | 4,700,000 | 4,700,000 | |||
Fifth Fiscal Year | $ 4,700,000 | $ 4,700,000 |
Favorable and Unfavorable Lease
Favorable and Unfavorable Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Unfavorable Leases | $ (0.2) | |||
Leases, Acquired-in-Place, Market Adjustment [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of favorable and unfavorable leases | $ 0.2 | $ 0.2 | 0.6 | $ 0.5 |
Amortization Expense, Expected Full Year | 0.8 | 0.8 | ||
Next Fiscal Year | 0.8 | 0.8 | ||
Second Fiscal Year | 0.7 | 0.7 | ||
Third Fiscal Year | 0.7 | 0.7 | ||
Fourth Fiscal Year | 0.6 | 0.6 | ||
Fifth Fiscal Year | $ 0.6 | $ 0.6 |
Impairment Of Long-Lived Asse37
Impairment Of Long-Lived Assets And Other Lease Charges (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Other lease charges | $ 300 | $ 1,500 | $ 800 | |
Other Lease Charges, Number of Restaurants | 2 | 10 | 3 | |
Lease termination charge | $ 100 | |||
Impairment Charges | $ 1,200 | $ 1,000 | ||
Impairment and other lease charges | $ 396 | 773 | 2,732 | 1,822 |
Previously Impaired [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment Charges | $ 400 | $ 400 | $ 1,000 | 600 |
Initial Impairments [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment Charges | $ 500 | |||
Asset Impairment Charges, Number of Restaurants | 5 |
Impairment Of Long-Lived Asse38
Impairment Of Long-Lived Assets And Other Lease Charges Closed Restaurant Reserve Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Dec. 28, 2014 | |
Restructuring Reserve [Roll Forward] | ||||
Closed-restaurant reserve, beginning of the period | $ 1,721 | $ 1,466 | $ 1,466 | |
Provision for restaurant closures | $ 300 | 1,500 | $ 800 | |
Payments, net | (1,003) | (721) | ||
Other adjustments, including the effect of discounting further obligations and changes in estimates | 157 | 165 | ||
Closed-restaurant reserve, end of the period | 2,302 | 1,721 | ||
Provisions for closures [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Provision for restaurant closures | 1,472 | 724 | ||
Changes in estimates [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Provision for restaurant closures | $ (45) | $ 87 |
Other Liabilities, Long-Term (D
Other Liabilities, Long-Term (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 28, 2014 |
Other Liabilities, Noncurrent [Abstract] | ||
Accrued occupancy costs | $ 10,195 | $ 9,287 |
Accrued workers' compensation and general liability claims | 3,517 | 3,211 |
Deferred compensation | 885 | 567 |
Long-term obligation to BKC for right of first refusal | 378 | 939 |
Other | 1,907 | 2,153 |
Other Liabilities | $ 16,882 | $ 16,157 |
Long-Term Debt Debt Balances (D
Long-Term Debt Debt Balances (Details) - USD ($) $ in Thousands | Sep. 27, 2015 | Dec. 28, 2014 |
Debt Instrument [Line Items] | ||
Capital leases | $ 7,726 | $ 8,694 |
Long-term Debt | 207,726 | 158,694 |
Less: current portion | (1,333) | (1,272) |
Long-term debt, net of current portion | 206,393 | 157,422 |
Senior Notes Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | 150,000 |
Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 200,000 | $ 0 |
Long-Term Debt Debt Narrative (
Long-Term Debt Debt Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | Dec. 28, 2014 | |
Debt Instrument [Line Items] | |||||
Gains (Losses) on Extinguishment of Debt | $ 0 | $ 0 | $ (12,635) | $ 0 | |
Senior Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 200,000 | $ 200,000 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||
Senior Notes Due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Notes | $ 0 | $ 0 | $ 150,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | 11.25% | |||
Transaction Costs [Member] | |||||
Debt Instrument [Line Items] | |||||
Gains (Losses) on Extinguishment of Debt | $ 9,800 | ||||
Deferred financing [Member] | |||||
Debt Instrument [Line Items] | |||||
Gains (Losses) on Extinguishment of Debt | $ 2,800 |
Long-Term Debt Senior Secured S
Long-Term Debt Senior Secured Second Lien Notes (Details) $ in Millions | 9 Months Ended |
Sep. 27, 2015USD ($)Rate | |
Debt Instrument, Redemption [Line Items] | |
Senior Notes, Amount Redeemable with Proceeds from Equity Offerings | 35.00% |
Collateral exclusion for material subsidiaries, percentage of Senior Notes | 20.00% |
Senior Notes, Cross Default Provision, Minimum Debt Principal Amount | $ | $ 20 |
Debt Instrument, Redemption, Period One [Member] | |
Debt Instrument, Redemption [Line Items] | |
Senior Notes, Redemption Price | 100.00% |
Debt Instrument, Redemption Period, End Date | May 1, 2018 |
Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Period, Start Date | May 1, 2018 |
Senior Notes, Redemption Price | 104.00% |
Debt Instrument, Redemption Period, End Date | May 1, 2019 |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Period, Start Date | May 1, 2019 |
Senior Notes, Redemption Price | 102.00% |
Debt Instrument, Redemption Period, End Date | May 1, 2020 |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument, Redemption Period, Start Date | May 1, 2020 |
Senior Notes, Redemption Price | 100.00% |
Long-Term Debt Senior Credit Fa
Long-Term Debt Senior Credit Facility (Details) $ in Thousands | 9 Months Ended |
Sep. 27, 2015USD ($)Rate | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 30,000 |
Line of Credit Facility, Potential Incremental Increases | 25,000 |
Senior Credit Facility - Revolving credit borrowings | 0 |
Letters of Credit Outstanding, Amount | 12,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 18,000 |
Letter of Credit [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 20,000 |
Alternative Base Rate [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | Rate | 2.00% |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximim | Rate | 2.75% |
London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.00% |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximim | Rate | 3.75% |
Line of Credit Facility, Libor Rate, Interest Rate Margin | Rate | 3.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||
Current | $ 0 | $ 0 | $ 0 | $ 219 | |
Deferred | 1,989 | (2,632) | (4,210) | (7,774) | |
Valuation Allowance | (1,989) | 0 | 4,210 | 0 | |
Provision (benefit) for income taxes | 0 | $ (2,632) | 0 | $ (7,555) | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (1,900) | $ (24,300) | (4,300) | ||
Effective Income Tax Rate | 37.50% | 37.50% | |||
Deferred Tax Assets, Valuation Allowance | 31,700 | 31,700 | |||
Unrecognized Tax Benefits | 0 | 0 | 0 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0 | $ 0 | 0 | ||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred Tax Assets, Valuation Allowance | 3,400 | 3,400 | |||
Domestic Tax Authority [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating Loss Carryforwards | $ 36,500 | $ 36,500 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation | $ 367 | $ 296 | $ 1,071 | $ 883 |
Unrecognized Stock-Based Compensation Expense, Non-vested Shares | 2,900 | $ 2,900 | ||
Weighted Average Remaining Vesting Period, Non-Vested Shares | 2 years 7 months 6 days | |||
Expected Stock-Based Compensation, Remainder of Fiscal Year | $ 400 | $ 400 |
Stock-Based Compensation Summar
Stock-Based Compensation Summary of Non-Vested Stock Activity (Details) | 9 Months Ended |
Sep. 27, 2015$ / sharesshares | |
Nonvested share activity [Roll Forward] | |
Nonvested, beginning of period | shares | 395,427 |
Weighted Average Grant Date Price, beginning of period | $ 6.68 |
Granted | shares | 295,741 |
Weighted Average Grant Date Price, Granted Shares | $ 7.89 |
Vested Shares | shares | (209,470) |
Weighted Average Grant Date Price, Vested Shares | $ 7.28 |
Forfeited Shares | shares | (9,748) |
Weighted Average Grant Date Price, Forfeited Shares | $ 6.21 |
Nonvested, end of period | shares | 471,950 |
Weighted Average Grant Date Price, end of period | $ 7.39 |
Commitments And Contingencies47
Commitments And Contingencies (Details) $ in Millions | Sep. 27, 2015USD ($) |
Guarantor Obligations [Line Items] | |
Maximum potential future undiscounted rental payments | $ 34 |
Property Lease Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Restaurant leases | 31 |
Primary Lessee [Member] | |
Guarantor Obligations [Line Items] | |
Restaurant leases | 5 |
Related Parties (Details)
Related Parties (Details) $ in Thousands | 9 Months Ended | ||
Sep. 27, 2015USD ($)Rateshares | Dec. 28, 2014shares | May. 30, 2012shares | |
Related Party Transaction [Line Items] | |||
Preferred stock, shares issued | shares | 100 | 100 | 100 |
Convertible Preferred Stock, Common Shares Issuable upon Conversion | shares | 9,414,580 | ||
Preferred stock, ownership percentage if converted | Rate | 21.00% | ||
Initial Franchise Fees | $ 50 | ||
Franchise Term | 20 years | ||
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Board of directors, number of members | 2 | ||
Other Liabilities [Member] | |||
Related Party Transaction [Line Items] | |||
Liabilities due to BKC | $ 1,100 | ||
Accounts Payable [Member] | |||
Related Party Transaction [Line Items] | |||
Liabilities due to BKC | $ 5,700 |
Related Parties Expense Disclos
Related Parties Expense Disclosures (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015USD ($) | Sep. 28, 2014USD ($) | Sep. 27, 2015USD ($)Rate | Sep. 28, 2014USD ($) | |
Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Royalty Expense | $ 9.2 | $ 7.6 | $ 26.5 | $ 21 |
Advertising Expense | $ 8.1 | 6.8 | $ 23.5 | 20.3 |
Restaurant leases | 290 | 290 | ||
Operating Leases, Rent Expense | $ 7 | $ 6.7 | $ 21.4 | $ 19.6 |
Property Leases Identical to BKC's Lease with Third Party [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Restaurant leases | 164 | 164 | ||
Selling and Marketing Expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Royalty Fee Rate | Rate | 4.00% | |||
Royalty Agreement Terms [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Royalty Fee Rate | Rate | 4.50% |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2015 | Sep. 28, 2014 | Sep. 27, 2015 | Sep. 28, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) | $ 7,239 | $ (1,721) | $ (7,014) | $ (11,082) |
Net Income (Loss) Available to Common Stockholders, Basic | $ 5,642 | $ (1,721) | $ (7,014) | $ (11,082) |
Weighted Average Number of Shares Outstanding, Basic | 35,009,656 | 34,797,490 | 34,930,326 | 29,571,846 |
Basic and diluted net income (loss) per share | $ 0.16 | $ (0.05) | $ (0.20) | $ (0.37) |
Dilutive effect of preferred stock and non-vested shares | 9,668,858 | 0 | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 44,678,514 | 34,797,490 | 34,930,326 | 29,571,846 |
Common shares excluded from diluted net loss per share computation | 0 | 9,813,285 | 9,886,530 | 9,813,285 |
Restricted Stock [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | $ (80) | $ 0 | $ 0 | $ 0 |
Preferred Stock [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | $ (1,517) | $ 0 | $ 0 | $ 0 |