Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 25, 2019 | Oct. 23, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 25, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-18051 | |
Entity Registrant Name | DENNY’S CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3487402 | |
Entity Address, Address Line One | 203 East Main Street | |
Entity Address, City or Town | Spartanburg | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29319-0001 | |
City Area Code | 864 | |
Local Phone Number | 597-8000 | |
Title of 12(b) Security | $.01 Par Value, Common Stock | |
Trading Symbol | DENN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,058,729 | |
Entity Central Index Key | 0000852772 | |
Current Fiscal Year End Date | --12-25 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 25, 2019 | Dec. 26, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,020 | $ 5,026 |
Investments | 3,188 | 1,709 |
Receivables, net | 19,903 | 26,283 |
Inventories | 1,468 | 2,993 |
Assets held for sale | 1,419 | 723 |
Prepaid and other current assets | 11,034 | 10,866 |
Total current assets | 39,032 | 47,600 |
Property, net of accumulated depreciation of $153,175 and $226,620, respectively | 98,540 | 117,251 |
Financing lease right-of-use assets, net of accumulated amortization of $9,973 and $15,526, respectively | 12,410 | 22,753 |
Operating lease right-of-use assets, net | 143,371 | 0 |
Goodwill | 36,884 | 39,781 |
Intangible assets, net | 54,591 | 59,067 |
Deferred financing costs, net | 1,879 | 2,335 |
Deferred income taxes, net | 21,423 | 17,333 |
Other noncurrent assets | 33,301 | 29,229 |
Total assets | 441,431 | 335,349 |
Current liabilities: | ||
Current finance lease liabilities | 1,812 | 3,410 |
Current operating lease liabilities | 16,718 | 0 |
Accounts payable | 17,705 | 29,527 |
Other current liabilities | 51,618 | 61,790 |
Total current liabilities | 87,853 | 94,727 |
Long-term liabilities: | ||
Long-term debt | 213,000 | 286,500 |
Noncurrent finance lease liabilities | 15,407 | 27,181 |
Noncurrent operating lease liabilities | 137,165 | 0 |
Liability for insurance claims, less current portion | 12,556 | 12,199 |
Other noncurrent liabilities | 94,196 | 48,087 |
Total long-term liabilities | 472,324 | 373,967 |
Total liabilities | 560,177 | 468,694 |
Shareholders' deficit | ||
Common stock $0.01 par value; 135,000 shares authorized; September 25, 2019: 109,413 shares issued and 59,340 shares outstanding; December 26, 2018: 108,585 shares issued and 61,533 shares outstanding | 1,094 | 1,086 |
Paid-in capital | 604,406 | 592,944 |
Deficit | (207,957) | (306,414) |
Accumulated other comprehensive loss, net of tax | (41,907) | (4,146) |
Treasury stock, at cost, 50,073 and 47,052 shares, respectively | (474,382) | (416,815) |
Total shareholders' deficit | (118,746) | (133,345) |
Total liabilities and shareholders' deficit | $ 441,431 | $ 335,349 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 25, 2019 | Dec. 26, 2018 |
Assets [Abstract] | ||
Accumulated depreciation | $ 153,175 | $ 226,620 |
Accumulated amortization | $ 9,973 | $ 15,526 |
Shareholders' deficit | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 135,000 | 135,000 |
Common stock, shares issued | 109,413 | 108,585 |
Common stock, shares outstanding | 59,340 | 61,533 |
Treasury stock, at cost, shares | 50,073 | 47,052 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2019 | Sep. 26, 2018 | Sep. 25, 2019 | Sep. 26, 2018 | |
Revenue: | ||||
Total operating revenue | $ 124,258 | $ 158,023 | $ 427,553 | $ 470,630 |
Costs of company restaurant sales, excluding depreciation and amortization: | ||||
Product costs | 15,603 | 25,303 | 62,871 | 75,292 |
Payroll and benefits | 23,777 | 41,041 | 100,475 | 123,332 |
Occupancy | 4,301 | 6,083 | 15,583 | 17,165 |
Other operating expenses | 10,625 | 15,419 | 39,320 | 45,490 |
Total costs of company restaurant sales | 54,306 | 87,846 | 218,249 | 261,279 |
Costs of franchise and license revenue, excluding depreciation and amortization | 31,136 | 28,174 | 87,065 | 85,779 |
General and administrative expenses | 16,395 | 15,981 | 53,659 | 48,138 |
Depreciation and amortization | 4,338 | 6,760 | 15,619 | 19,965 |
Operating (gains), losses and other charges, net | (50,091) | 793 | (85,459) | 1,615 |
Total operating costs and expenses, net | 56,084 | 139,554 | 289,133 | 416,776 |
Operating income | 68,174 | 18,469 | 138,420 | 53,854 |
Interest expense, net | 4,188 | 5,314 | 14,977 | 15,324 |
Other nonoperating income, net | (415) | (460) | (2,111) | (877) |
Income before income taxes | 64,401 | 13,615 | 125,554 | 39,407 |
Provision for income taxes | 15,279 | 2,810 | 26,703 | 7,217 |
Net income | $ 49,122 | $ 10,805 | $ 98,851 | $ 32,190 |
Basic net income per share (in dollars per share) | $ 0.83 | $ 0.17 | $ 1.64 | $ 0.50 |
Diluted net income per share (in dollars per share) | $ 0.80 | $ 0.16 | $ 1.58 | $ 0.49 |
Basic weighted average shares outstanding (in shares) | 59,430 | 63,246 | 60,457 | 63,774 |
Diluted weighted average shares outstanding (in shares) | 61,189 | 65,522 | 62,370 | 66,122 |
Franchisor Owned Outlet [Member] | ||||
Revenue: | ||||
Total operating revenue | $ 63,582 | $ 103,609 | $ 257,574 | $ 307,543 |
Franchise [Member] | ||||
Revenue: | ||||
Total operating revenue | $ 60,676 | $ 54,414 | $ 169,979 | $ 163,087 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2019 | Sep. 26, 2018 | Sep. 25, 2019 | Sep. 26, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 49,122 | $ 10,805 | $ 98,851 | $ 32,190 |
Other comprehensive income (loss), net of tax: | ||||
Minimum pension liability adjustment, net of tax of $6, $7, $17 and $20, respectively | 16 | 21 | 48 | 64 |
Changes in the effective portion of the fair value of derivatives, net of tax of $(5,251), $1,543, $(13,574) and $1,611, respectively | (15,067) | 4,422 | (37,838) | 4,614 |
Reclassification of derivatives to interest expense, net of tax of $21, $40, $11 and $62, respectively | 57 | 115 | 29 | 179 |
Other comprehensive (loss) income | (14,994) | 4,558 | (37,761) | 4,857 |
Total comprehensive income | $ 34,128 | $ 15,363 | $ 61,090 | $ 37,047 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2019 | Sep. 26, 2018 | Sep. 25, 2019 | Sep. 26, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect of minimum pension liability adjustment | $ 6 | $ 7 | $ 17 | $ 20 |
Tax effect on changes in fair value of cash flow hedges | (5,251) | 1,543 | (13,574) | 1,611 |
Tax effect on amounts reclassified to earnings of cash flow hedges | $ 21 | $ 40 | $ 11 | $ 62 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member]Accelerated Share Repurchase 2018 [Member] | Paid-in Capital [Member] | (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance as of beginning of period (in shares) at Dec. 27, 2017 | 107,740 | ||||||
Balance as of beginning of period at Dec. 27, 2017 | $ (97,360) | $ 1,077 | $ (355,626) | $ 594,166 | $ (334,661) | $ (2,316) | |
Balance as of beginning of period, treasury stock (in shares) at Dec. 27, 2017 | (43,151) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 32,190 | 32,190 | |||||
Other comprehensive income (loss) | 4,857 | 4,857 | |||||
Share-based compensation on equity classified awards, net | 2,128 | 2,128 | |||||
Purchase of treasury stock (in shares) | (2,437) | ||||||
Purchase of treasury stock | (37,407) | $ (37,407) | |||||
Issuance of common stock for share-based compensation (in shares) | 447 | ||||||
Issuance of common stock for share-based compensation | 0 | $ 5 | (5) | ||||
Exercise of common stock options (in shares) | 306 | ||||||
Exercise of common stock options | 1,058 | $ 3 | 1,055 | ||||
Balance as of end of period at Sep. 26, 2018 | (109,980) | $ 1,085 | $ (393,033) | 597,344 | (317,917) | 2,541 | |
Balance as of end of period (in shares) at Sep. 26, 2018 | 108,493 | ||||||
Balance as of end of period, treasury stock (in shares) at Sep. 26, 2018 | (45,588) | ||||||
Balance as of beginning of period (in shares) at Jun. 27, 2018 | 108,470 | ||||||
Balance as of beginning of period at Jun. 27, 2018 | (117,877) | $ 1,084 | $ (384,470) | 596,248 | (328,722) | (2,017) | |
Balance as of beginning of period, treasury stock (in shares) at Jun. 27, 2018 | (45,014) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 10,805 | 10,805 | |||||
Other comprehensive income (loss) | 4,558 | 4,558 | |||||
Share-based compensation on equity classified awards, net | 1,052 | 1,052 | |||||
Purchase of treasury stock (in shares) | (574) | ||||||
Purchase of treasury stock | (8,563) | $ (8,563) | |||||
Issuance of common stock for share-based compensation (in shares) | 3 | ||||||
Issuance of common stock for share-based compensation | 0 | $ 1 | (1) | ||||
Exercise of common stock options (in shares) | 20 | ||||||
Exercise of common stock options | 45 | 45 | |||||
Balance as of end of period at Sep. 26, 2018 | $ (109,980) | $ 1,085 | $ (393,033) | 597,344 | (317,917) | 2,541 | |
Balance as of end of period (in shares) at Sep. 26, 2018 | 108,493 | ||||||
Balance as of end of period, treasury stock (in shares) at Sep. 26, 2018 | (45,588) | ||||||
Balance as of beginning of period (in shares) at Dec. 26, 2018 | 108,585 | 108,585 | |||||
Balance as of beginning of period at Dec. 26, 2018 | $ (133,345) | $ 1,086 | $ (416,815) | 592,944 | (306,414) | (4,146) | |
Balance as of beginning of period, treasury stock (in shares) at Dec. 26, 2018 | (47,052) | (47,052) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 98,851 | 98,851 | |||||
Other comprehensive income (loss) | (37,761) | (37,761) | |||||
Share-based compensation on equity classified awards, net | 3,741 | 3,741 | |||||
Purchase of treasury stock (in shares) | (2,632) | (389) | |||||
Purchase of treasury stock | (50,804) | $ (50,804) | $ (6,800) | ||||
Equity forward contract settlement | 0 | (6,763) | 6,763 | ||||
Issuance of common stock for share-based compensation (in shares) | 468 | ||||||
Issuance of common stock for share-based compensation | 0 | $ 5 | (5) | ||||
Exercise of common stock options (in shares) | 360 | ||||||
Exercise of common stock options | 966 | $ 3 | 963 | ||||
Balance as of end of period at Sep. 25, 2019 | $ (118,746) | $ 1,094 | $ (474,382) | 604,406 | (207,957) | (41,907) | |
Balance as of end of period (in shares) at Sep. 25, 2019 | 109,413 | 109,413 | |||||
Balance as of end of period, treasury stock (in shares) at Sep. 25, 2019 | (50,073) | (50,073) | |||||
Balance as of beginning of period (in shares) at Jun. 26, 2019 | 109,291 | ||||||
Balance as of beginning of period at Jun. 26, 2019 | $ (142,572) | $ 1,093 | $ (461,575) | 601,902 | (257,079) | (26,913) | |
Balance as of beginning of period, treasury stock (in shares) at Jun. 26, 2019 | (49,484) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 49,122 | 49,122 | |||||
Other comprehensive income (loss) | (14,994) | (14,994) | |||||
Share-based compensation on equity classified awards, net | 2,089 | 2,089 | |||||
Purchase of treasury stock (in shares) | (589) | ||||||
Purchase of treasury stock | (12,807) | $ (12,807) | |||||
Issuance of common stock for share-based compensation (in shares) | 3 | ||||||
Issuance of common stock for share-based compensation | 0 | ||||||
Exercise of common stock options (in shares) | 119 | ||||||
Exercise of common stock options | 416 | $ 1 | 415 | ||||
Balance as of end of period at Sep. 25, 2019 | $ (118,746) | $ 1,094 | $ (474,382) | $ 604,406 | $ (207,957) | $ (41,907) | |
Balance as of end of period (in shares) at Sep. 25, 2019 | 109,413 | 109,413 | |||||
Balance as of end of period, treasury stock (in shares) at Sep. 25, 2019 | (50,073) | (50,073) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 25, 2019 | Sep. 26, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 98,851 | $ 32,190 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation and amortization | 15,619 | 19,965 |
Operating (gains), losses and other charges, net | (85,459) | 1,615 |
Amortization of deferred financing costs | 456 | 455 |
Gains on investments | (179) | 0 |
Gains on early extinguishments of debt and leases | (157) | (159) |
Deferred income tax expense | 9,594 | 5,044 |
Share-based compensation | 7,142 | 3,661 |
Changes in assets and liabilities: | ||
Receivables | 8,095 | 3,582 |
Inventories | 1,525 | 83 |
Other current assets | (168) | 1,292 |
Other assets | (3,081) | (565) |
Operating lease assets/liabilities | (577) | |
Accounts payable | (9,411) | (11,948) |
Accrued salaries and vacations | (6,224) | (858) |
Accrued taxes | (524) | 1,974 |
Other accrued liabilities | (5,544) | (7,733) |
Other noncurrent liabilities | 2,068 | (2,339) |
Net cash flows provided by operating activities | 32,026 | 46,259 |
Cash flows from investing activities: | ||
Capital expenditures | (12,646) | (17,294) |
Acquisition of restaurants and real estate | (9,456) | (10,416) |
Deposits on acquisitions of real estate | (1,538) | 0 |
Proceeds from sales of restaurants, real estate and other assets | 118,370 | 969 |
Investment purchases | (1,300) | (1,709) |
Collections on notes receivable | 3,027 | 2,478 |
Issuance of notes receivable | (822) | (2,525) |
Net cash flows provided by (used in) investing activities | 95,635 | (28,497) |
Cash flows from financing activities: | ||
Revolver borrowings | 102,500 | 91,000 |
Revolver payments | (176,000) | (72,000) |
Long-term debt payments | (2,044) | (2,429) |
Proceeds from exercise of stock options | 966 | 1,058 |
Tax withholding on share-based payments | (3,206) | (1,714) |
Purchase of treasury stock | (50,649) | (37,108) |
Net bank overdrafts | (2,234) | 319 |
Net cash flows used in financing activities | (130,667) | (20,874) |
Decrease in cash and cash equivalents | (3,006) | (3,112) |
Cash and cash equivalents at beginning of period | 5,026 | 4,983 |
Cash and cash equivalents at end of period | $ 2,020 | $ 1,871 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 9 Months Ended |
Sep. 25, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | Introduction and Basis of Presentation Denny’s Corporation, or Denny’s or the Company, is one of America’s largest full-service restaurant chains based on number of restaurants. At September 25, 2019 , the Denny's brand consisted of 1,706 restaurants, 1,629 of which were franchised/licensed restaurants and 77 of which were company operated. Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates are reasonable. These interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the fiscal year ended December 26, 2018 which are contained in our Annual Report on Form 10-K for the fiscal year ended December 26, 2018 . Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 25, 2019 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 25, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Newly Adopted Accounting Standards Effective December 27, 2018, the first day of fiscal 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The new guidance established a right-of-use ("ROU") model that requires lessees to recognize a ROU asset and a lease liability for all leases with terms greater than 12 months. Lessees classify leases as financing or operating. The guidance requires lessors to classify leases as sales-type, direct financing or operating. We elected to apply the modified retrospective transition approach as the date of initial application without restating comparative period financial statements. Results for reporting periods beginning after December 26, 2018 are presented under Topic 842. Prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Accounting Standards Codification 840, "Leases (Topic 840)". Our transition to Topic 842 represents a change in accounting principle. The new guidance provided a number of optional practical expedients in transition. We elected the package of practical expedients that permitted us not to reassess our prior conclusions regarding lease identification, lease classification or initial direct costs. In addition, we did not elect the practical expedient which would have permitted us to use hindsight in evaluating our leases, nor did we elect the land easement practical expedient. In preparation for adoption, we implemented a new lease management system. Upon adoption of Topic 842, we recorded operating lease liabilities of $101.3 million and ROU assets of $94.1 million related to existing operating leases. In addition, we recorded a cumulative effect adjustment increasing opening deficit by $0.4 million and deferred tax assets by $0.1 million . The lease liabilities were based on the present value of remaining rental payments under previous leasing standards for existing operating leases primarily related to real estate leases. Exit cost and straight-line lease liabilities that existed at the adoption date were reclassified against the ROU assets upon adoption. The amount recorded to opening deficit represents the initial impairment of ROU assets, net of the deferred tax impact. See Note 3 for further information about our transition to Topic 842 and the required disclosures. Accounting Standards to be Adopted In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The new guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform financial statement users of credit loss estimates. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 (our fiscal 2020) with early adoption permitted for annual and interim periods beginning after December 15, 2018 (our fiscal 2019). We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption. |
Leases
Leases | 9 Months Ended |
Sep. 25, 2019 | |
Leases [Abstract] | |
Leases | Leases Lessee We lease certain real estate and equipment for our restaurants and support facilities. At contract inception, we determine whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. We recognize a lease liability and an ROU asset at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases, and is subsequently measured at amortized cost using the effective interest method. Operating lease ROU assets are initially and subsequently measured throughout the lease term at the carrying amount of the lease liability adjusted for initial direct costs, prepayments, accrued payments and lease incentives, if any. Lease cost is recognized on a straight-line basis over the lease term. Operating lease payments are classified as cash flows for operating activities with ROU asset amortization and the change in the lease liability combined as "Operating lease assets/liabilities" in the reconciliation of net income to net cash flows provided by operating activities in the Consolidated Statement of Cash Flows. Finance lease ROU assets are initially measured at cost and subsequently amortized on a straight-line basis over the lesser of the useful life or the lease term. Finance lease payments are classified as cash flows used in financing activities in the Consolidated Statement of Cash Flows. Operating and finance lease ROU assets are assessed for impairment using the long-lived assets impairment guidance. The new lease guidance provides practical expedients and accounting elections for our ongoing accounting after adoption. We elected the practical expedient to not separate nonlease components (such as common area maintenance) from lease components in regard to all leases and the portfolio approach in applying the discount rate to our leases. Key estimates and judgments include how we determine (1) lease payments, (2) lease term and (3) the discount rate used to discount the unpaid lease payments to present value. We have certain lease agreements structured with both a fixed base rent and a contingent rent based on a percentage of sales over contractual levels, others with only contingent rent based on a percentage of sales and some with a fixed base rent adjusted periodically for inflation or changes in fair market rent rate. Contingent rent is recognized as sales occur. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The exercise of lease renewal options is at our sole discretion, except in certain sublease situations in which we have determined that it is reasonably certain that one or more options will be exercised, including where the exercise of a sublease option compels us to exercise the renewal option of the underlying master lease. Renewal option periods are included in the measurement of lease ROU asset and lease liability where the exercise is reasonably certain to occur. Initial terms of real estate leases generally range from 10 to 20 years , exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years . The discount rate used to determine the present value of the lease payments is our estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as we generally cannot determine the interest rate implicit in the lease. Lessor We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are the same as the lessee leases described above. Similar to our lessee accounting, we elected the lessor practical expedient to not separate nonlease components from lease components in regard to all leases. The components of lease costs were as follows: Quarter Ended Three Quarters Ended Classification September 25, 2019 September 25, 2019 (In thousands) Lease costs Finance lease costs: Amortization of right-of-use assets Depreciation and amortization $ 592 $ 2,473 Interest on lease liabilities Interest expense, net 906 3,740 Operating lease costs: Operating lease costs - company Occupancy 1,811 6,824 Operating lease costs - franchise Costs of franchise and license revenue 4,850 11,926 Operating lease costs - general and administrative General and administrative expenses 27 80 Variable lease costs: Variable lease costs - company Occupancy 1,324 4,992 Variable lease costs - franchise Costs of franchise and license revenue 1,924 4,862 Variable lease costs - general and administrative General and administrative expenses 15 25 Variable lease costs - closed stores Restructuring charges and exit costs — 55 Sublease income Franchise and license revenue (8,156 ) (20,164 ) Total lease costs $ 3,293 $ 14,813 Lease terms and discount rates were as follows: September 25, 2019 Weighted-average remaining lease term (in years) Finance leases 9.6 Operating leases 10.8 Weighted-average discount rate Finance leases 23.5 % Operating leases 6.1 % The components of lease income were as follows: Quarter Ended Three Quarters Ended Classification September 25, 2019 September 25, 2019 (In thousands) Lease income Operating lease income - franchise Franchise and license revenue $ 7,963 $ 19,234 Operating lease income - closed stores Restructuring charges and exit costs 56 188 Variable lease income - franchise Franchise and license revenue 2,770 7,170 Variable lease income - closed stores Restructuring charges and exit costs 13 37 Total lease income $ 10,802 $ 26,629 Cash and supplemental noncash amounts were as follows: Quarter Ended Three Quarters Ended September 25, 2019 September 25, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 906 $ 3,740 Operating cash flows from operating leases 6,816 19,569 Financing cash flows from finance leases 497 2,044 Right-of-use assets obtained in exchange for new finance lease liabilities — 305 Right-of-use assets obtained in exchange for new operating lease liabilities 31,050 58,581 Maturities of lease liabilities and receipts in accordance with Topic 842 as of September 25, 2019 were as follows: Lease Liabilities Lease Receipts Finance Operating Operating (In thousands) Remainder of 2019 $ 1,256 $ 6,543 $ 8,225 2020 4,839 24,749 31,029 2021 4,571 22,629 28,145 2022 4,287 20,469 25,756 2023 3,769 17,875 22,682 Thereafter 25,672 120,696 155,741 Total undiscounted cash flows 44,394 212,961 $ 271,578 Less: interest 27,175 59,078 Present value of lease liabilities 17,219 153,883 Less: current lease liabilities 1,812 16,718 Long-term lease liabilities $ 15,407 $ 137,165 Maturities of lease liabilities in accordance with Topic 840 as of December 26, 2018 were as follows: Commitments Lease Receipts Capital Operating Operating (In thousands) 2019 $ 9,271 $ 23,504 $ 21,001 2020 8,664 20,161 18,493 2021 8,010 17,316 16,573 2022 7,320 14,646 14,887 2023 6,451 11,881 12,932 Thereafter 33,670 49,004 65,273 Total 73,386 $ 136,512 $ 149,159 Less imputed interest 42,795 Present value of capital lease obligations $ 30,591 |
Leases | Leases Lessee We lease certain real estate and equipment for our restaurants and support facilities. At contract inception, we determine whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. We recognize a lease liability and an ROU asset at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases, and is subsequently measured at amortized cost using the effective interest method. Operating lease ROU assets are initially and subsequently measured throughout the lease term at the carrying amount of the lease liability adjusted for initial direct costs, prepayments, accrued payments and lease incentives, if any. Lease cost is recognized on a straight-line basis over the lease term. Operating lease payments are classified as cash flows for operating activities with ROU asset amortization and the change in the lease liability combined as "Operating lease assets/liabilities" in the reconciliation of net income to net cash flows provided by operating activities in the Consolidated Statement of Cash Flows. Finance lease ROU assets are initially measured at cost and subsequently amortized on a straight-line basis over the lesser of the useful life or the lease term. Finance lease payments are classified as cash flows used in financing activities in the Consolidated Statement of Cash Flows. Operating and finance lease ROU assets are assessed for impairment using the long-lived assets impairment guidance. The new lease guidance provides practical expedients and accounting elections for our ongoing accounting after adoption. We elected the practical expedient to not separate nonlease components (such as common area maintenance) from lease components in regard to all leases and the portfolio approach in applying the discount rate to our leases. Key estimates and judgments include how we determine (1) lease payments, (2) lease term and (3) the discount rate used to discount the unpaid lease payments to present value. We have certain lease agreements structured with both a fixed base rent and a contingent rent based on a percentage of sales over contractual levels, others with only contingent rent based on a percentage of sales and some with a fixed base rent adjusted periodically for inflation or changes in fair market rent rate. Contingent rent is recognized as sales occur. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The exercise of lease renewal options is at our sole discretion, except in certain sublease situations in which we have determined that it is reasonably certain that one or more options will be exercised, including where the exercise of a sublease option compels us to exercise the renewal option of the underlying master lease. Renewal option periods are included in the measurement of lease ROU asset and lease liability where the exercise is reasonably certain to occur. Initial terms of real estate leases generally range from 10 to 20 years , exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years . The discount rate used to determine the present value of the lease payments is our estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as we generally cannot determine the interest rate implicit in the lease. Lessor We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are the same as the lessee leases described above. Similar to our lessee accounting, we elected the lessor practical expedient to not separate nonlease components from lease components in regard to all leases. The components of lease costs were as follows: Quarter Ended Three Quarters Ended Classification September 25, 2019 September 25, 2019 (In thousands) Lease costs Finance lease costs: Amortization of right-of-use assets Depreciation and amortization $ 592 $ 2,473 Interest on lease liabilities Interest expense, net 906 3,740 Operating lease costs: Operating lease costs - company Occupancy 1,811 6,824 Operating lease costs - franchise Costs of franchise and license revenue 4,850 11,926 Operating lease costs - general and administrative General and administrative expenses 27 80 Variable lease costs: Variable lease costs - company Occupancy 1,324 4,992 Variable lease costs - franchise Costs of franchise and license revenue 1,924 4,862 Variable lease costs - general and administrative General and administrative expenses 15 25 Variable lease costs - closed stores Restructuring charges and exit costs — 55 Sublease income Franchise and license revenue (8,156 ) (20,164 ) Total lease costs $ 3,293 $ 14,813 Lease terms and discount rates were as follows: September 25, 2019 Weighted-average remaining lease term (in years) Finance leases 9.6 Operating leases 10.8 Weighted-average discount rate Finance leases 23.5 % Operating leases 6.1 % The components of lease income were as follows: Quarter Ended Three Quarters Ended Classification September 25, 2019 September 25, 2019 (In thousands) Lease income Operating lease income - franchise Franchise and license revenue $ 7,963 $ 19,234 Operating lease income - closed stores Restructuring charges and exit costs 56 188 Variable lease income - franchise Franchise and license revenue 2,770 7,170 Variable lease income - closed stores Restructuring charges and exit costs 13 37 Total lease income $ 10,802 $ 26,629 Cash and supplemental noncash amounts were as follows: Quarter Ended Three Quarters Ended September 25, 2019 September 25, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 906 $ 3,740 Operating cash flows from operating leases 6,816 19,569 Financing cash flows from finance leases 497 2,044 Right-of-use assets obtained in exchange for new finance lease liabilities — 305 Right-of-use assets obtained in exchange for new operating lease liabilities 31,050 58,581 Maturities of lease liabilities and receipts in accordance with Topic 842 as of September 25, 2019 were as follows: Lease Liabilities Lease Receipts Finance Operating Operating (In thousands) Remainder of 2019 $ 1,256 $ 6,543 $ 8,225 2020 4,839 24,749 31,029 2021 4,571 22,629 28,145 2022 4,287 20,469 25,756 2023 3,769 17,875 22,682 Thereafter 25,672 120,696 155,741 Total undiscounted cash flows 44,394 212,961 $ 271,578 Less: interest 27,175 59,078 Present value of lease liabilities 17,219 153,883 Less: current lease liabilities 1,812 16,718 Long-term lease liabilities $ 15,407 $ 137,165 Maturities of lease liabilities in accordance with Topic 840 as of December 26, 2018 were as follows: Commitments Lease Receipts Capital Operating Operating (In thousands) 2019 $ 9,271 $ 23,504 $ 21,001 2020 8,664 20,161 18,493 2021 8,010 17,316 16,573 2022 7,320 14,646 14,887 2023 6,451 11,881 12,932 Thereafter 33,670 49,004 65,273 Total 73,386 $ 136,512 $ 149,159 Less imputed interest 42,795 Present value of capital lease obligations $ 30,591 |
Leases | Leases Lessee We lease certain real estate and equipment for our restaurants and support facilities. At contract inception, we determine whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. We recognize a lease liability and an ROU asset at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases, and is subsequently measured at amortized cost using the effective interest method. Operating lease ROU assets are initially and subsequently measured throughout the lease term at the carrying amount of the lease liability adjusted for initial direct costs, prepayments, accrued payments and lease incentives, if any. Lease cost is recognized on a straight-line basis over the lease term. Operating lease payments are classified as cash flows for operating activities with ROU asset amortization and the change in the lease liability combined as "Operating lease assets/liabilities" in the reconciliation of net income to net cash flows provided by operating activities in the Consolidated Statement of Cash Flows. Finance lease ROU assets are initially measured at cost and subsequently amortized on a straight-line basis over the lesser of the useful life or the lease term. Finance lease payments are classified as cash flows used in financing activities in the Consolidated Statement of Cash Flows. Operating and finance lease ROU assets are assessed for impairment using the long-lived assets impairment guidance. The new lease guidance provides practical expedients and accounting elections for our ongoing accounting after adoption. We elected the practical expedient to not separate nonlease components (such as common area maintenance) from lease components in regard to all leases and the portfolio approach in applying the discount rate to our leases. Key estimates and judgments include how we determine (1) lease payments, (2) lease term and (3) the discount rate used to discount the unpaid lease payments to present value. We have certain lease agreements structured with both a fixed base rent and a contingent rent based on a percentage of sales over contractual levels, others with only contingent rent based on a percentage of sales and some with a fixed base rent adjusted periodically for inflation or changes in fair market rent rate. Contingent rent is recognized as sales occur. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The exercise of lease renewal options is at our sole discretion, except in certain sublease situations in which we have determined that it is reasonably certain that one or more options will be exercised, including where the exercise of a sublease option compels us to exercise the renewal option of the underlying master lease. Renewal option periods are included in the measurement of lease ROU asset and lease liability where the exercise is reasonably certain to occur. Initial terms of real estate leases generally range from 10 to 20 years , exclusive of options to renew, which are typically for five year periods. Leases of equipment consist primarily of restaurant equipment, computer equipment and vehicles. Initial terms of equipment leases generally range from three to five years . The discount rate used to determine the present value of the lease payments is our estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as we generally cannot determine the interest rate implicit in the lease. Lessor We lease or sublease certain restaurant properties to our franchisees and occasionally to third parties. The lease descriptions, terms, variable lease payments and renewal options are the same as the lessee leases described above. Similar to our lessee accounting, we elected the lessor practical expedient to not separate nonlease components from lease components in regard to all leases. The components of lease costs were as follows: Quarter Ended Three Quarters Ended Classification September 25, 2019 September 25, 2019 (In thousands) Lease costs Finance lease costs: Amortization of right-of-use assets Depreciation and amortization $ 592 $ 2,473 Interest on lease liabilities Interest expense, net 906 3,740 Operating lease costs: Operating lease costs - company Occupancy 1,811 6,824 Operating lease costs - franchise Costs of franchise and license revenue 4,850 11,926 Operating lease costs - general and administrative General and administrative expenses 27 80 Variable lease costs: Variable lease costs - company Occupancy 1,324 4,992 Variable lease costs - franchise Costs of franchise and license revenue 1,924 4,862 Variable lease costs - general and administrative General and administrative expenses 15 25 Variable lease costs - closed stores Restructuring charges and exit costs — 55 Sublease income Franchise and license revenue (8,156 ) (20,164 ) Total lease costs $ 3,293 $ 14,813 Lease terms and discount rates were as follows: September 25, 2019 Weighted-average remaining lease term (in years) Finance leases 9.6 Operating leases 10.8 Weighted-average discount rate Finance leases 23.5 % Operating leases 6.1 % The components of lease income were as follows: Quarter Ended Three Quarters Ended Classification September 25, 2019 September 25, 2019 (In thousands) Lease income Operating lease income - franchise Franchise and license revenue $ 7,963 $ 19,234 Operating lease income - closed stores Restructuring charges and exit costs 56 188 Variable lease income - franchise Franchise and license revenue 2,770 7,170 Variable lease income - closed stores Restructuring charges and exit costs 13 37 Total lease income $ 10,802 $ 26,629 Cash and supplemental noncash amounts were as follows: Quarter Ended Three Quarters Ended September 25, 2019 September 25, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 906 $ 3,740 Operating cash flows from operating leases 6,816 19,569 Financing cash flows from finance leases 497 2,044 Right-of-use assets obtained in exchange for new finance lease liabilities — 305 Right-of-use assets obtained in exchange for new operating lease liabilities 31,050 58,581 Maturities of lease liabilities and receipts in accordance with Topic 842 as of September 25, 2019 were as follows: Lease Liabilities Lease Receipts Finance Operating Operating (In thousands) Remainder of 2019 $ 1,256 $ 6,543 $ 8,225 2020 4,839 24,749 31,029 2021 4,571 22,629 28,145 2022 4,287 20,469 25,756 2023 3,769 17,875 22,682 Thereafter 25,672 120,696 155,741 Total undiscounted cash flows 44,394 212,961 $ 271,578 Less: interest 27,175 59,078 Present value of lease liabilities 17,219 153,883 Less: current lease liabilities 1,812 16,718 Long-term lease liabilities $ 15,407 $ 137,165 Maturities of lease liabilities in accordance with Topic 840 as of December 26, 2018 were as follows: Commitments Lease Receipts Capital Operating Operating (In thousands) 2019 $ 9,271 $ 23,504 $ 21,001 2020 8,664 20,161 18,493 2021 8,010 17,316 16,573 2022 7,320 14,646 14,887 2023 6,451 11,881 12,932 Thereafter 33,670 49,004 65,273 Total 73,386 $ 136,512 $ 149,159 Less imputed interest 42,795 Present value of capital lease obligations $ 30,591 |
Refranchisings and Acquisitions
Refranchisings and Acquisitions | 9 Months Ended |
Sep. 25, 2019 | |
Refranchisings and Acquisitions [Abstract] | |
Refranchisings and Acquisitions | Refranchisings and Acquisitions Refranchisings The following table summarizes the activity related to our refranchising and development strategy. Gains on the sales of company restaurants and real estate are included as a component of operating (gains), losses and other charges, net in our Condensed Consolidated Statements of Income. See Note 5 . Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (Dollars in thousands) Restaurants sold to franchisees 56 — 96 — Gains on sales of company restaurants: Cash proceeds $ 68,774 $ — $ 107,611 $ — Receivables 2,976 — 3,446 — Less: Property sold (17,759 ) — (27,984 ) — Less: Goodwill (1,705 ) — (2,709 ) — Less: Intangibles (579 ) — (2,225 ) — Less: Deferred gain (1,350 ) — (1,350 ) — Total gains of sales of company restaurants $ 50,357 $ — $ 76,789 $ — Real estate parcels sold 2 — 6 — Gains on sales of real estate: Cash proceeds $ 2,142 $ — $ 10,680 $ — Noncash consideration — — 3,000 — Less: Property sold (740 ) — (1,686 ) — Less: Other assets (114 ) — (120 ) — Total gains on sales of real estate $ 1,288 $ — $ 11,874 $ — In addition to the cash proceeds received on the sale of real estate during the first quarter, we also recorded additional noncash consideration for the fair value of restaurant space we expect to receive within a building being developed by the buyer of the real estate. The fair value of this space was determined using a market approach with Level 2 inputs based on third party appraisals of fair values of other similar properties. The $3.0 million of noncash consideration is recorded as a component of other noncurrent assets in our Condensed Consolidated Balance Sheets. As of September 25, 2019 , we have recorded assets held for sale at their carrying amount of $1.4 million (comprised of property of $1.2 million and goodwill of $0.2 million ) related to seven company restaurants . There were $0.7 million in assets held for sale as of December 26, 2018 related to three company restaurants and one piece of real estate. Acquisitions We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on Level 3 fair value estimates. The following table summarizes our restaurant and real estate acquisition activity: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (Dollars in thousands) Restaurants acquired from franchisees — — — 6 Purchase price allocation: Reacquired franchise rights $ — $ — $ — $ 5,434 Property — — — 1,121 Goodwill — — — 1,574 Total purchase price $ — $ — $ — $ 8,129 Financing leases recorded $ — $ — $ — $ 2,409 Real estate parcels acquired 2 — 4 1 Total purchase price $ 4,750 $ — $ 9,456 $ 1,787 |
Operating (Gains), Losses and O
Operating (Gains), Losses and Other Charges, Net | 9 Months Ended |
Sep. 25, 2019 | |
Other Income and Expenses [Abstract] | |
Operating (Gains), Losses and Other Charges, Net | Operating (Gains), Losses and Other Charges, Net Operating (gains), losses and other charges, net consisted of the following: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (In thousands) Gains on sales of assets and other, net $ (51,183 ) $ (695 ) $ (87,497 ) $ (759 ) Restructuring charges and exit costs 1,092 48 2,038 816 Impairment charges — 1,440 — 1,558 Operating (gains), losses and other charges, net $ (50,091 ) $ 793 $ (85,459 ) $ 1,615 Gains on sales of assets and other, net were primarily the result of sales of company restaurants and real estate as part of our refranchising and development strategy. See Note 4 . Restructuring charges and exit costs consisted of the following: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (In thousands) Exit costs $ 20 $ 48 $ 194 $ 347 Severance and other restructuring charges 1,072 — 1,844 469 Total restructuring charges and exit costs $ 1,092 $ 48 $ 2,038 $ 816 Exit cost liabilities were $0.1 million and $1.2 million as of September 25, 2019 and December 26, 2018 , respectively. As a result of the adoption of Topic 842, exit cost liabilities related to lease costs are now included as a component of operating lease liabilities in our Condensed Consolidated Balance Sheets. See Note 3 . As of September 25, 2019 and December 26, 2018 , we had accrued severance and other restructuring charges of $1.1 million and $0.6 million , respectively. The balance as of September 25, 2019 is expected to be paid during the next 12 months. Impairment charges for the quarter and three quarters ended September 26, 2018 primarily resulted from the impairment of an underperforming unit. |
Receivables
Receivables | 9 Months Ended |
Sep. 25, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following: September 25, 2019 December 26, 2018 (In thousands) Receivables, net: Trade accounts receivable from franchisees $ 12,054 $ 11,459 Financing receivables from franchisees 4,985 3,211 Vendor receivables 1,386 4,016 Credit card receivables 876 5,955 Other 892 1,942 Allowance for doubtful accounts (290 ) (300 ) Total receivables, net $ 19,903 $ 26,283 Other noncurrent assets: Financing receivables from franchisees and other $ 450 $ 1,528 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 25, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table reflects the changes in carrying amounts of goodwill: (In thousands) Balance, December 26, 2018 $ 39,781 Adjustments related to the sale of restaurants and reclassifications to assets held for sale (2,897 ) Balance, September 25, 2019 $ 36,884 Other intangible assets consisted of the following: September 25, 2019 December 26, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,087 $ — $ 44,087 $ — Liquor licenses 120 — 166 — Intangible assets with definite lives: Reacquired franchise rights 16,218 5,834 19,933 5,119 Intangible assets, net $ 60,425 $ 5,834 $ 64,186 $ 5,119 The decreases in goodwill and reacquired franchise rights during the current year were the result of sales of company restaurants and reclassifications to assets held for sale as part of our refranchising and development strategy. See Note 4 . |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 25, 2019 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consisted of the following: September 25, 2019 December 26, 2018 (In thousands) Accrued payroll $ 17,279 $ 23,395 Accrued insurance, primarily current portion of liability for insurance claims 6,884 7,323 Accrued taxes 7,143 7,667 Accrued advertising 4,500 7,413 Gift cards 4,272 6,546 Other 11,540 9,446 Other current liabilities $ 51,618 $ 61,790 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 25, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Total Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands ) Fair value measurements as of September 25, 2019: Deferred compensation plan investments (1) $ 12,661 $ 12,661 $ — $ — Interest rate swaps, net (2) (55,848 ) — (55,848 ) — Investments (3) 3,188 — 3,188 — Total $ (39,999 ) $ 12,661 $ (52,660 ) $ — Fair value measurements as of December 26, 2018: Deferred compensation plan investments (1) $ 11,235 $ 11,235 $ — $ — Interest rate swaps, net (2) (4,475 ) — (4,475 ) — Investments (3) 1,709 — 1,709 — Total $ 8,469 $ 11,235 $ (2,766 ) $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 10 for details on the interest rate swaps. (3) The fair value of investments is valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are deemed to approximate fair value due to the immediate or short-term maturity of these instruments. See Note 4 for the disclosures related to the fair value of assets held for sale and acquired franchise restaurants. The fair value of our senior secured revolver approximates its carrying value since it is a variable rate facility (Level 2). |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 25, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Denny's and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $30 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the revolver to $450 million . As of September 25, 2019 , we had outstanding revolver loans of $213.0 million and outstanding letters of credit under the senior secured revolver of $20.6 million . These balances resulted in availability of $166.4 million under the credit facility. Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 4.18% and 4.43% as of September 25, 2019 and December 26, 2018 , respectively. Taking into consideration our interest rate swaps, the weighted-average interest rate of outstanding revolver loans was 4.44% and 4.48% as of September 25, 2019 and December 26, 2018 , respectively. A commitment fee, which is based on our consolidated leverage ratio, is paid on the unused portion of the credit facility and was 0.30% as of September 25, 2019 . Borrowings under the credit facility bear a tiered interest rate, also based on our consolidated leverage ratio, and was set at LIBOR plus 2.00% as of September 25, 2019 . The maturity date for the credit facility is October 26, 2022 . The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by Denny's and its material subsidiaries and is secured by assets of Denny's and its subsidiaries, including the stock of its subsidiaries (other than our insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. We were in compliance with all financial covenants as of September 25, 2019 . Interest Rate Hedges We have interest rate swaps to hedge a portion of the forecasted cash flows of our floating rate debt. We designated the interest rate swaps as cash flow hedges of our exposure to variability in future cash flows attributable to variable interest payments due on forecasted notional amounts. Under the interest rate swaps, we pay a fixed rate on the notional amount in addition to the current interest rate as determined by our consolidated leverage ratio in effect at the time. A summary of our interest rate swaps as of September 25, 2019 is as follows: Trade Date Effective Date Maturity Date Notional Amount Fixed Rate (In thousands) March 20, 2015 March 29, 2018 March 31, 2025 $ 120,000 2.44 % October 1, 2015 March 29, 2018 March 31, 2026 50,000 2.46 % February 15, 2018 March 31, 2020 December 31, 2033 80,000 (1) 3.19 % (1) The notional amounts of the swaps entered into on February 15, 2018 increase annually beginning September 30, 2020 until they reach the maximum notional amount of $425.0 million on September 28, 2029. As of September 25, 2019 , the fair value of the interest rate swaps was a liability of $55.8 million , which is recorded as a component of other noncurrent liabilities in our Condensed Consolidated Balance Sheets. See Note 16 for the amounts recorded in accumulated other comprehensive loss related to the interest rate swaps. |
Revenues
Revenues | 9 Months Ended |
Sep. 25, 2019 | |
Revenues [Abstract] | |
Revenues | Revenues Our revenues are derived primarily from two sales channels, which we operate as one segment: company restaurants and franchised and licensed restaurants. The following table disaggregates our revenue by sales channels and types of goods or services: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (Dollars in thousands) Company restaurant sales $ 63,582 $ 103,609 $ 257,574 $ 307,543 Franchise and license revenue: Royalties 27,830 25,518 79,742 75,875 Advertising revenue 20,756 19,546 59,582 58,386 Initial and other fees 1,356 1,415 4,250 4,642 Occupancy revenue 10,734 7,935 26,405 24,184 Franchise and license revenue 60,676 54,414 169,979 163,087 Total operating revenue $ 124,258 $ 158,023 $ 427,553 $ 470,630 Balances related to contracts with customers consist of receivables, deferred franchise revenue and deferred gift card revenue. See Note 6 for details on our receivables. Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that will begin amortizing into revenue when the related restaurants are opened. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising. The components of the change in deferred franchise revenue are as follows: (In thousands) Balance, December 26, 2018 $ 20,538 Fees received from franchisees 4,796 Revenue recognized (1) (2,077 ) Balance, September 25, 2019 23,257 Less current portion included in other current liabilities 2,182 Deferred franchise revenue included in other noncurrent liabilities $ 21,075 (1) Of this amount $1.8 million was included in the deferred franchise revenue balance as of December 26, 2018. As of September 25, 2019 , the deferred franchise revenue expected to be recognized in the future is as follows: (In thousands) 2019 $ 583 2020 2,204 2021 2,017 2022 1,908 2023 1,830 Thereafter 14,715 Deferred franchise revenue $ 23,257 Deferred gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of deferred gift card liabilities represents our remaining performance obligations to our customers. The balance of deferred gift card liabilities as of September 25, 2019 and December 26, 2018 was $4.3 million and $6.5 million , respectively. During the three quarters ended September 25, 2019 , we recognized revenue of $1.8 million from gift card redemptions at company restaurants. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 25, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Total share-based compensation cost included as a component of general and administrative expenses was as follows: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (In thousands) Performance share awards $ 1,957 $ 902 $ 6,418 $ 2,922 Restricted stock units for board members 219 198 724 739 Total share-based compensation $ 2,176 $ 1,100 $ 7,142 $ 3,661 Performance Share Units During the three quarters ended September 25, 2019 , we granted certain employees 0.3 million performance share units with a grant date fair value of $20.47 per share that vest based on the total shareholder return (“TSR”) of our common stock compared to the TSRs of a group of peer companies and 0.3 million performance share units with a grant date fair value of $17.58 per share that vest based on our Adjusted EPS growth rate versus plan, as defined under the terms of the award. The performance period for these performance share units is the three year fiscal period beginning December 27, 2018 and ending December 29, 2021. They will vest and be earned (from 0% to 150% of the target award for each such increment) at the end of the performance period. During the three quarters ended September 25, 2019 , we issued 0.4 million shares of common stock related to vested performance share units. In addition 0.4 million shares of common stock were deferred and 0.2 million shares of common stock were withheld in lieu of taxes related to vested performance share units. As of September 25, 2019 , we had approximately $14.3 million of unrecognized compensation cost related to all unvested performance share awards outstanding, which have a weighted average remaining contractual term of 1.9 years . Restricted Stock Units for Board Members During the three quarters ended September 25, 2019 , we granted less than 0.1 million restricted stock units (which are equity classified) with a weighted average grant date fair value of $19.44 per unit to non-employee members of our Board of Directors. The restricted stock units vest after a one year service period. A director may elect to convert these awards into shares of common stock either on a specific date in the future (while still serving as a member of our Board of Directors), upon termination as a member of our Board of Directors, or in three equal annual installments commencing after termination of service as a member of our Board. During the three quarters ended September 25, 2019 , 0.1 million restricted stock units were converted into shares of common stock. As of September 25, 2019 , we had approximately $0.5 million of unrecognized compensation cost related to all unvested restricted stock unit awards outstanding, which have a weighted average remaining contractual term of 0.6 years |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 25, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate was 23.7% and 21.3% for the quarter and three quarters ended September 25, 2019 , respectively, compared to 20.6% and 18.3% for the prior year periods. The 2019 quarterly and year-to-date rates included the impact of excess tax benefits relating to share-based compensation of 1.0% and 1.8% , respectively. The 2018 quarterly and year-to-date rates included the impact of excess tax benefits relating to share-based compensation of 0.5% and 3.4% , respectively. In addition, during the second quarter of 2019, we completed an Internal Revenue Service federal income tax audit of the 2016 tax year. Upon completion of this audit, revaluations of certain tax positions were performed and as a result, we recognized a net benefit of 1.6% |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 25, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The amounts used for the basic and diluted net income per share calculations are summarized below: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (In thousands, except for per share amounts) Net income $ 49,122 $ 10,805 $ 98,851 $ 32,190 Weighted average shares outstanding - basic 59,430 63,246 60,457 63,774 Effect of dilutive share-based compensation awards 1,759 2,276 1,913 2,348 Weighted average shares outstanding - diluted 61,189 65,522 62,370 66,122 Basic net income per share $ 0.83 $ 0.17 $ 1.64 $ 0.50 Diluted net income per share $ 0.80 $ 0.16 $ 1.58 $ 0.49 Anti-dilutive share-based compensation awards 274 — 226 471 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 25, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Quarters Ended September 25, 2019 September 26, 2018 (In thousands) Income taxes paid, net $ 17,853 $ 2,347 Interest paid $ 14,393 $ 14,349 Noncash investing and financing activities: Issuance of common stock, pursuant to share-based compensation plans $ 7,522 $ 4,671 Noncash consideration received in connection with the sale of real estate $ 3,000 $ — Execution of finance leases $ 305 $ 2,850 Treasury stock payable $ 228 $ 419 Receivables in connection with disposition of property $ 3,446 $ — Insurance proceeds receivable $ 48 $ 19 |
Shareholders' Deficit
Shareholders' Deficit | 9 Months Ended |
Sep. 25, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Shareholders' Deficit | Shareholders' Deficit Share Repurchase Our credit facility permits the purchase of Denny’s stock and the payment of cash dividends subject to certain limitations. In October 2017, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $200 million of our common stock (in addition to prior authorizations). Under this program, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. In November 2018, as part of our previously authorized share repurchase programs, we entered into a $25 million accelerated share repurchase (the "ASR") agreement with MUFG Securities EMEA plc (“MUFG”). We paid $25 million in cash and received approximately 1.1 million shares of our common stock (which represents the minimum shares to be delivered based on the cap price) and recorded $18.2 million of treasury stock related to these shares. The remaining balance of $6.8 million was recorded as additional paid-in capital in shareholders’ deficit as of December 26, 2018 as an equity forward contract. During the three quarters ended September 25, 2019 , we settled the ASR agreement with MUFG. As a result, we received final delivery of an additional 0.4 million shares of our common stock. The total number of shares repurchased was based on a combined discounted volume-weighted average price (“VWAP”) of $17.04 per share, which was determined based on the average of the daily VWAP of our common stock, less a fixed discount, over the term of the ASR agreement. As a result of settling the ASR agreement, we recorded $6.8 million of treasury stock related to the settlement of the equity forward contract related to the ASR agreement. In addition to the settlement of the ASR, during the three quarters ended September 25, 2019 , we repurchased a total of 2.6 million shares of our common stock for approximately $50.8 million . This brings the total amount repurchased under the current repurchase program to 7.2 million shares of our common stock for approximately $122.4 million , leaving approximately $77.6 million that can be used to repurchase our common stock under this program as of September 25, 2019 . Repurchased shares are included as treasury stock in our Condensed Consolidated Balance Sheets and our Condensed Consolidated Statement of Shareholders' Deficit. Accumulated Other Comprehensive Loss The components of the change in accumulated other comprehensive loss were as follows: Defined Benefit Plans Derivatives Accumulated Other Comprehensive Loss (In thousands) Balance as of December 26, 2018 $ (827 ) $ (3,319 ) $ (4,146 ) Amortization of net loss (1) 65 — 65 Net change in fair value of derivatives — (51,412 ) (51,412 ) Reclassification of derivatives to interest expense, net (2) — 40 40 Income tax (expense) benefit related to items of other comprehensive loss (17 ) 13,563 13,546 Balance as of September 25, 2019 $ (779 ) $ (41,128 ) $ (41,907 ) (1) Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the three quarters ended September 25, 2019 . (2) Amounts reclassified from accumulated other comprehensive loss into income represent payments either received from or made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense, net in our Condensed Consolidated Statements of Income. See Note 10 for additional details. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 25, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We have guarantees related to certain franchisee loans. Payments under these guarantees would result from the inability of a franchisee to fund required payments when due. Through September 25, 2019 , no events had occurred that caused us to make payments under these guarantees. There were $1.3 million and $2.5 million of loans outstanding under these programs as of September 25, 2019 and December 26, 2018 , respectively. As of September 25, 2019 , the maximum amount payable under the loan guarantees was $0.8 million . As a result of these guarantees, we have recorded liabilities of less than $0.1 million as of both September 25, 2019 and December 26, 2018 , which are included as a component of other noncurrent liabilities in our Condensed Consolidated Balance Sheets and other nonoperating expense in our Condensed Consolidated Statements of Income. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 25, 2019 | |
Accounting Policies [Abstract] | |
Newly adopted accounting standards and accounting standards to be adopted | Newly Adopted Accounting Standards Effective December 27, 2018, the first day of fiscal 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The new guidance established a right-of-use ("ROU") model that requires lessees to recognize a ROU asset and a lease liability for all leases with terms greater than 12 months. Lessees classify leases as financing or operating. The guidance requires lessors to classify leases as sales-type, direct financing or operating. We elected to apply the modified retrospective transition approach as the date of initial application without restating comparative period financial statements. Results for reporting periods beginning after December 26, 2018 are presented under Topic 842. Prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Accounting Standards Codification 840, "Leases (Topic 840)". Our transition to Topic 842 represents a change in accounting principle. The new guidance provided a number of optional practical expedients in transition. We elected the package of practical expedients that permitted us not to reassess our prior conclusions regarding lease identification, lease classification or initial direct costs. In addition, we did not elect the practical expedient which would have permitted us to use hindsight in evaluating our leases, nor did we elect the land easement practical expedient. In preparation for adoption, we implemented a new lease management system. Upon adoption of Topic 842, we recorded operating lease liabilities of $101.3 million and ROU assets of $94.1 million related to existing operating leases. In addition, we recorded a cumulative effect adjustment increasing opening deficit by $0.4 million and deferred tax assets by $0.1 million . The lease liabilities were based on the present value of remaining rental payments under previous leasing standards for existing operating leases primarily related to real estate leases. Exit cost and straight-line lease liabilities that existed at the adoption date were reclassified against the ROU assets upon adoption. The amount recorded to opening deficit represents the initial impairment of ROU assets, net of the deferred tax impact. See Note 3 for further information about our transition to Topic 842 and the required disclosures. Accounting Standards to be Adopted In June 2016, the Financial Accounting Standards Board issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The new guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform financial statement users of credit loss estimates. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 (our fiscal 2020) with early adoption permitted for annual and interim periods beginning after December 15, 2018 (our fiscal 2019). We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Leases [Abstract] | |
Components of Lease Costs, Terms and Discount Rates and Cash Flow Information | Cash and supplemental noncash amounts were as follows: Quarter Ended Three Quarters Ended September 25, 2019 September 25, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 906 $ 3,740 Operating cash flows from operating leases 6,816 19,569 Financing cash flows from finance leases 497 2,044 Right-of-use assets obtained in exchange for new finance lease liabilities — 305 Right-of-use assets obtained in exchange for new operating lease liabilities 31,050 58,581 The components of lease costs were as follows: Quarter Ended Three Quarters Ended Classification September 25, 2019 September 25, 2019 (In thousands) Lease costs Finance lease costs: Amortization of right-of-use assets Depreciation and amortization $ 592 $ 2,473 Interest on lease liabilities Interest expense, net 906 3,740 Operating lease costs: Operating lease costs - company Occupancy 1,811 6,824 Operating lease costs - franchise Costs of franchise and license revenue 4,850 11,926 Operating lease costs - general and administrative General and administrative expenses 27 80 Variable lease costs: Variable lease costs - company Occupancy 1,324 4,992 Variable lease costs - franchise Costs of franchise and license revenue 1,924 4,862 Variable lease costs - general and administrative General and administrative expenses 15 25 Variable lease costs - closed stores Restructuring charges and exit costs — 55 Sublease income Franchise and license revenue (8,156 ) (20,164 ) Total lease costs $ 3,293 $ 14,813 Lease terms and discount rates were as follows: September 25, 2019 Weighted-average remaining lease term (in years) Finance leases 9.6 Operating leases 10.8 Weighted-average discount rate Finance leases 23.5 % Operating leases 6.1 % |
Components of Lease Income | The components of lease income were as follows: Quarter Ended Three Quarters Ended Classification September 25, 2019 September 25, 2019 (In thousands) Lease income Operating lease income - franchise Franchise and license revenue $ 7,963 $ 19,234 Operating lease income - closed stores Restructuring charges and exit costs 56 188 Variable lease income - franchise Franchise and license revenue 2,770 7,170 Variable lease income - closed stores Restructuring charges and exit costs 13 37 Total lease income $ 10,802 $ 26,629 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities and receipts in accordance with Topic 842 as of September 25, 2019 were as follows: Lease Liabilities Lease Receipts Finance Operating Operating (In thousands) Remainder of 2019 $ 1,256 $ 6,543 $ 8,225 2020 4,839 24,749 31,029 2021 4,571 22,629 28,145 2022 4,287 20,469 25,756 2023 3,769 17,875 22,682 Thereafter 25,672 120,696 155,741 Total undiscounted cash flows 44,394 212,961 $ 271,578 Less: interest 27,175 59,078 Present value of lease liabilities 17,219 153,883 Less: current lease liabilities 1,812 16,718 Long-term lease liabilities $ 15,407 $ 137,165 |
Operating Lease, Liability, Maturity | Maturities of lease liabilities and receipts in accordance with Topic 842 as of September 25, 2019 were as follows: Lease Liabilities Lease Receipts Finance Operating Operating (In thousands) Remainder of 2019 $ 1,256 $ 6,543 $ 8,225 2020 4,839 24,749 31,029 2021 4,571 22,629 28,145 2022 4,287 20,469 25,756 2023 3,769 17,875 22,682 Thereafter 25,672 120,696 155,741 Total undiscounted cash flows 44,394 212,961 $ 271,578 Less: interest 27,175 59,078 Present value of lease liabilities 17,219 153,883 Less: current lease liabilities 1,812 16,718 Long-term lease liabilities $ 15,407 $ 137,165 |
Operating Lease, Payments to be Received, Maturity | Maturities of lease liabilities and receipts in accordance with Topic 842 as of September 25, 2019 were as follows: Lease Liabilities Lease Receipts Finance Operating Operating (In thousands) Remainder of 2019 $ 1,256 $ 6,543 $ 8,225 2020 4,839 24,749 31,029 2021 4,571 22,629 28,145 2022 4,287 20,469 25,756 2023 3,769 17,875 22,682 Thereafter 25,672 120,696 155,741 Total undiscounted cash flows 44,394 212,961 $ 271,578 Less: interest 27,175 59,078 Present value of lease liabilities 17,219 153,883 Less: current lease liabilities 1,812 16,718 Long-term lease liabilities $ 15,407 $ 137,165 |
Schedule of Minimum Future Lease Commitments and Amounts to be Received as Lessor or Sublessor | Maturities of lease liabilities in accordance with Topic 840 as of December 26, 2018 were as follows: Commitments Lease Receipts Capital Operating Operating (In thousands) 2019 $ 9,271 $ 23,504 $ 21,001 2020 8,664 20,161 18,493 2021 8,010 17,316 16,573 2022 7,320 14,646 14,887 2023 6,451 11,881 12,932 Thereafter 33,670 49,004 65,273 Total 73,386 $ 136,512 $ 149,159 Less imputed interest 42,795 Present value of capital lease obligations $ 30,591 |
Schedule of Future Minimum Rental Payments for Operating Leases | Maturities of lease liabilities in accordance with Topic 840 as of December 26, 2018 were as follows: Commitments Lease Receipts Capital Operating Operating (In thousands) 2019 $ 9,271 $ 23,504 $ 21,001 2020 8,664 20,161 18,493 2021 8,010 17,316 16,573 2022 7,320 14,646 14,887 2023 6,451 11,881 12,932 Thereafter 33,670 49,004 65,273 Total 73,386 $ 136,512 $ 149,159 Less imputed interest 42,795 Present value of capital lease obligations $ 30,591 |
Schedule of Operating Leases, Future Minimum Payments Receivable | Maturities of lease liabilities in accordance with Topic 840 as of December 26, 2018 were as follows: Commitments Lease Receipts Capital Operating Operating (In thousands) 2019 $ 9,271 $ 23,504 $ 21,001 2020 8,664 20,161 18,493 2021 8,010 17,316 16,573 2022 7,320 14,646 14,887 2023 6,451 11,881 12,932 Thereafter 33,670 49,004 65,273 Total 73,386 $ 136,512 $ 149,159 Less imputed interest 42,795 Present value of capital lease obligations $ 30,591 |
Refranchisings and Acquisitio_2
Refranchisings and Acquisitions (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Refranchisings and Acquisitions [Abstract] | |
Activity Related to Refranchising and Development Strategy | The following table summarizes the activity related to our refranchising and development strategy. Gains on the sales of company restaurants and real estate are included as a component of operating (gains), losses and other charges, net in our Condensed Consolidated Statements of Income. See Note 5 . Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (Dollars in thousands) Restaurants sold to franchisees 56 — 96 — Gains on sales of company restaurants: Cash proceeds $ 68,774 $ — $ 107,611 $ — Receivables 2,976 — 3,446 — Less: Property sold (17,759 ) — (27,984 ) — Less: Goodwill (1,705 ) — (2,709 ) — Less: Intangibles (579 ) — (2,225 ) — Less: Deferred gain (1,350 ) — (1,350 ) — Total gains of sales of company restaurants $ 50,357 $ — $ 76,789 $ — Real estate parcels sold 2 — 6 — Gains on sales of real estate: Cash proceeds $ 2,142 $ — $ 10,680 $ — Noncash consideration — — 3,000 — Less: Property sold (740 ) — (1,686 ) — Less: Other assets (114 ) — (120 ) — Total gains on sales of real estate $ 1,288 $ — $ 11,874 $ — |
Acquisition Activity | The following table summarizes our restaurant and real estate acquisition activity: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (Dollars in thousands) Restaurants acquired from franchisees — — — 6 Purchase price allocation: Reacquired franchise rights $ — $ — $ — $ 5,434 Property — — — 1,121 Goodwill — — — 1,574 Total purchase price $ — $ — $ — $ 8,129 Financing leases recorded $ — $ — $ — $ 2,409 Real estate parcels acquired 2 — 4 1 Total purchase price $ 4,750 $ — $ 9,456 $ 1,787 |
Operating (Gains), Losses and_2
Operating (Gains), Losses and Other Charges, Net (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Other Income and Expenses [Abstract] | |
Operating Gains Losses and Other Charges, Net | Operating (gains), losses and other charges, net consisted of the following: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (In thousands) Gains on sales of assets and other, net $ (51,183 ) $ (695 ) $ (87,497 ) $ (759 ) Restructuring charges and exit costs 1,092 48 2,038 816 Impairment charges — 1,440 — 1,558 Operating (gains), losses and other charges, net $ (50,091 ) $ 793 $ (85,459 ) $ 1,615 |
Restructuring Charges and Exit Costs | Restructuring charges and exit costs consisted of the following: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (In thousands) Exit costs $ 20 $ 48 $ 194 $ 347 Severance and other restructuring charges 1,072 — 1,844 469 Total restructuring charges and exit costs $ 1,092 $ 48 $ 2,038 $ 816 |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Receivables [Abstract] | |
Receivables, Net | Receivables consisted of the following: September 25, 2019 December 26, 2018 (In thousands) Receivables, net: Trade accounts receivable from franchisees $ 12,054 $ 11,459 Financing receivables from franchisees 4,985 3,211 Vendor receivables 1,386 4,016 Credit card receivables 876 5,955 Other 892 1,942 Allowance for doubtful accounts (290 ) (300 ) Total receivables, net $ 19,903 $ 26,283 Other noncurrent assets: Financing receivables from franchisees and other $ 450 $ 1,528 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The following table reflects the changes in carrying amounts of goodwill: (In thousands) Balance, December 26, 2018 $ 39,781 Adjustments related to the sale of restaurants and reclassifications to assets held for sale (2,897 ) Balance, September 25, 2019 $ 36,884 |
Indefinite-Lived Intangible Assets | Other intangible assets consisted of the following: September 25, 2019 December 26, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,087 $ — $ 44,087 $ — Liquor licenses 120 — 166 — Intangible assets with definite lives: Reacquired franchise rights 16,218 5,834 19,933 5,119 Intangible assets, net $ 60,425 $ 5,834 $ 64,186 $ 5,119 |
Finite-Lived Intangible Assets | Other intangible assets consisted of the following: September 25, 2019 December 26, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,087 $ — $ 44,087 $ — Liquor licenses 120 — 166 — Intangible assets with definite lives: Reacquired franchise rights 16,218 5,834 19,933 5,119 Intangible assets, net $ 60,425 $ 5,834 $ 64,186 $ 5,119 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Other Liabilities, Current [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following: September 25, 2019 December 26, 2018 (In thousands) Accrued payroll $ 17,279 $ 23,395 Accrued insurance, primarily current portion of liability for insurance claims 6,884 7,323 Accrued taxes 7,143 7,667 Accrued advertising 4,500 7,413 Gift cards 4,272 6,546 Other 11,540 9,446 Other current liabilities $ 51,618 $ 61,790 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Total Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands ) Fair value measurements as of September 25, 2019: Deferred compensation plan investments (1) $ 12,661 $ 12,661 $ — $ — Interest rate swaps, net (2) (55,848 ) — (55,848 ) — Investments (3) 3,188 — 3,188 — Total $ (39,999 ) $ 12,661 $ (52,660 ) $ — Fair value measurements as of December 26, 2018: Deferred compensation plan investments (1) $ 11,235 $ 11,235 $ — $ — Interest rate swaps, net (2) (4,475 ) — (4,475 ) — Investments (3) 1,709 — 1,709 — Total $ 8,469 $ 11,235 $ (2,766 ) $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 10 for details on the interest rate swaps. (3) The fair value of investments is valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments. |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Debt Disclosure [Abstract] | |
Interest Rate Swaps | A summary of our interest rate swaps as of September 25, 2019 is as follows: Trade Date Effective Date Maturity Date Notional Amount Fixed Rate (In thousands) March 20, 2015 March 29, 2018 March 31, 2025 $ 120,000 2.44 % October 1, 2015 March 29, 2018 March 31, 2026 50,000 2.46 % February 15, 2018 March 31, 2020 December 31, 2033 80,000 (1) 3.19 % (1) The notional amounts of the swaps entered into on February 15, 2018 increase annually beginning September 30, 2020 until they reach the maximum notional amount of $425.0 million on September 28, 2029. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Revenues [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by sales channels and types of goods or services: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (Dollars in thousands) Company restaurant sales $ 63,582 $ 103,609 $ 257,574 $ 307,543 Franchise and license revenue: Royalties 27,830 25,518 79,742 75,875 Advertising revenue 20,756 19,546 59,582 58,386 Initial and other fees 1,356 1,415 4,250 4,642 Occupancy revenue 10,734 7,935 26,405 24,184 Franchise and license revenue 60,676 54,414 169,979 163,087 Total operating revenue $ 124,258 $ 158,023 $ 427,553 $ 470,630 |
Components of the Change in Deferred Franchise Revenue | The components of the change in deferred franchise revenue are as follows: (In thousands) Balance, December 26, 2018 $ 20,538 Fees received from franchisees 4,796 Revenue recognized (1) (2,077 ) Balance, September 25, 2019 23,257 Less current portion included in other current liabilities 2,182 Deferred franchise revenue included in other noncurrent liabilities $ 21,075 (1) Of this amount $1.8 million was included in the deferred franchise revenue balance as of December 26, 2018. |
Schedule of Deferred Franchise Revenue Recognition | As of September 25, 2019 , the deferred franchise revenue expected to be recognized in the future is as follows: (In thousands) 2019 $ 583 2020 2,204 2021 2,017 2022 1,908 2023 1,830 Thereafter 14,715 Deferred franchise revenue $ 23,257 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Total Share-based Compensation | Total share-based compensation cost included as a component of general and administrative expenses was as follows: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (In thousands) Performance share awards $ 1,957 $ 902 $ 6,418 $ 2,922 Restricted stock units for board members 219 198 724 739 Total share-based compensation $ 2,176 $ 1,100 $ 7,142 $ 3,661 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | The amounts used for the basic and diluted net income per share calculations are summarized below: Quarter Ended Three Quarters Ended September 25, 2019 September 26, 2018 September 25, 2019 September 26, 2018 (In thousands, except for per share amounts) Net income $ 49,122 $ 10,805 $ 98,851 $ 32,190 Weighted average shares outstanding - basic 59,430 63,246 60,457 63,774 Effect of dilutive share-based compensation awards 1,759 2,276 1,913 2,348 Weighted average shares outstanding - diluted 61,189 65,522 62,370 66,122 Basic net income per share $ 0.83 $ 0.17 $ 1.64 $ 0.50 Diluted net income per share $ 0.80 $ 0.16 $ 1.58 $ 0.49 Anti-dilutive share-based compensation awards 274 — 226 471 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Three Quarters Ended September 25, 2019 September 26, 2018 (In thousands) Income taxes paid, net $ 17,853 $ 2,347 Interest paid $ 14,393 $ 14,349 Noncash investing and financing activities: Issuance of common stock, pursuant to share-based compensation plans $ 7,522 $ 4,671 Noncash consideration received in connection with the sale of real estate $ 3,000 $ — Execution of finance leases $ 305 $ 2,850 Treasury stock payable $ 228 $ 419 Receivables in connection with disposition of property $ 3,446 $ — Insurance proceeds receivable $ 48 $ 19 |
Shareholders' Deficit (Tables)
Shareholders' Deficit (Tables) | 9 Months Ended |
Sep. 25, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of the change in accumulated other comprehensive loss were as follows: Defined Benefit Plans Derivatives Accumulated Other Comprehensive Loss (In thousands) Balance as of December 26, 2018 $ (827 ) $ (3,319 ) $ (4,146 ) Amortization of net loss (1) 65 — 65 Net change in fair value of derivatives — (51,412 ) (51,412 ) Reclassification of derivatives to interest expense, net (2) — 40 40 Income tax (expense) benefit related to items of other comprehensive loss (17 ) 13,563 13,546 Balance as of September 25, 2019 $ (779 ) $ (41,128 ) $ (41,907 ) (1) Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the three quarters ended September 25, 2019 . (2) Amounts reclassified from accumulated other comprehensive loss into income represent payments either received from or made to the counterparty for the effective portions of the interest rate swaps. These amounts are included as a component of interest expense, net in our Condensed Consolidated Statements of Income. See Note 10 for additional details. |
Introduction and Basis of Pre_2
Introduction and Basis of Presentation (Details) | Sep. 25, 2019restaurant |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,706 |
Franchised/licensed restaurants [Member] | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,629 |
Company restaurants [Member] | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 77 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 25, 2019 | Dec. 27, 2018 | Dec. 26, 2018 | Dec. 28, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease liabilities | $ 153,883 | $ 101,300 | ||
Operating lease right-of-use assets, net | $ 143,371 | 94,100 | $ 0 | |
Cumulative effect adjustment | (394) | $ (15,446) | ||
(Deficit) [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect adjustment | (400) | |||
Deferred Tax Asset [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect adjustment | $ 100 |
Leases - General (Details)
Leases - General (Details) | Sep. 25, 2019 |
Real Estate [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, finance lease, renewal term | 5 years |
Real Estate [Member] | Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Real Estate [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 20 years |
Equipment [Member] | Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 3 years |
Equipment [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 5 years |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 25, 2019USD ($) | Sep. 25, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Amortization of right-of-use assets | $ 592 | $ 2,473 |
Interest on lease liabilities | 906 | 3,740 |
Sublease Income | (8,156) | (20,164) |
Total lease costs | $ 3,293 | $ 14,813 |
Finance leases, weighted-average remaining lease term (in years) | 9 years 7 months 6 days | 9 years 7 months 6 days |
Operating leases weighted-average remaining lease term (in years) | 10 years 9 months 18 days | 10 years 9 months 18 days |
Finance leases, weighted-average discount rate | 23.50% | 23.50% |
Operating leases, weighted-average discount rate | 6.10% | 6.10% |
Occupancy [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 1,811 | $ 6,824 |
Variable lease costs | 1,324 | 4,992 |
Franchise [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 4,850 | 11,926 |
Variable lease costs | 1,924 | 4,862 |
General and Administrative Expenses [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 27 | 80 |
Variable lease costs | 15 | 25 |
Restructuring Charges and Exit Costs [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Variable lease costs | $ 0 | $ 55 |
Leases - Lease Income (Details)
Leases - Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 25, 2019 | Sep. 25, 2019 | |
Lessor, Lease, Description [Line Items] | ||
Total lease income | $ 10,802 | $ 26,629 |
Restructuring Charges and Exit Costs [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Operating lease income | 56 | 188 |
Variable lease income | 13 | 37 |
Franchise [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Operating lease income | 7,963 | 19,234 |
Variable lease income | $ 2,770 | $ 7,170 |
Leases - Cash and Supplemental
Leases - Cash and Supplemental Noncash (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 25, 2019 | Sep. 25, 2019 | |
Leases [Abstract] | ||
Operating cash flows from finance leases | $ 906 | $ 3,740 |
Operating cash flows from operating leases | 6,816 | 19,569 |
Financing cash flows from finance leases | 497 | 2,044 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 0 | 305 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 31,050 | $ 58,581 |
Leases - Maturities of Lease La
Leases - Maturities of Lease Labilities Per Topic 842 (Details) - USD ($) $ in Thousands | Sep. 25, 2019 | Dec. 27, 2018 | Dec. 26, 2018 |
Lease Liabilities, Finance | |||
Remainder of 2019 | $ 1,256 | ||
2020 | 4,839 | ||
2021 | 4,571 | ||
2022 | 4,287 | ||
2023 | 3,769 | ||
Thereafter | 25,672 | ||
Total undiscounted cash flows | 44,394 | ||
Less: interest | 27,175 | ||
Present value of lease liabilities | 17,219 | ||
Less: current lease liabilities | 1,812 | $ 3,410 | |
Long-term lease liabilities | 15,407 | 27,181 | |
Lease Liabilities, Operating | |||
Remainder of 2019 | 6,543 | ||
2020 | 24,749 | ||
2021 | 22,629 | ||
2022 | 20,469 | ||
2023 | 17,875 | ||
Thereafter | 120,696 | ||
Total undiscounted cash flows | 212,961 | ||
Less: interest | 59,078 | ||
Present value of lease liabilities | 153,883 | $ 101,300 | |
Less: current lease liabilities | 16,718 | 0 | |
Long-term lease liabilities | 137,165 | $ 0 | |
Lease Receipts, Operating | |||
Remainder of 2019 | 8,225 | ||
2020 | 31,029 | ||
2021 | 28,145 | ||
2022 | 25,756 | ||
2023 | 22,682 | ||
Thereafter | 155,741 | ||
Total undiscounted cash flows | $ 271,578 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities Per Topic 840 (Details) $ in Thousands | Dec. 26, 2018USD ($) |
Commitments, Operating | |
2019 | $ 23,504 |
2020 | 20,161 |
2021 | 17,316 |
2022 | 14,646 |
2023 | 11,881 |
Thereafter | 49,004 |
Total | 136,512 |
Commitments, Capital | |
2019 | 9,271 |
2020 | 8,664 |
2021 | 8,010 |
2022 | 7,320 |
2023 | 6,451 |
Thereafter | 33,670 |
Total | 73,386 |
Less imputed interest | 42,795 |
Present value of capital lease obligations | 30,591 |
Lease Receipts, Operating | |
2019 | 21,001 |
2020 | 18,493 |
2021 | 16,573 |
2022 | 14,887 |
2023 | 12,932 |
Thereafter | 65,273 |
Total | $ 149,159 |
Refranchisings and Acquisitio_3
Refranchisings and Acquisitions - Refranchisings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 25, 2019USD ($)unitrestaurant | Sep. 26, 2018USD ($)unitrestaurants | Sep. 25, 2019USD ($)unitrestaurant | Sep. 26, 2018USD ($)unitrestaurants | Dec. 26, 2018USD ($)real_estaterestaurant | |
Franchisor Disclosure [Line Items] | |||||
Noncash consideration | $ 3,000 | $ 0 | |||
Gains on sales of assets and other, net | $ 51,183 | $ 695 | 87,497 | $ 759 | |
Assets held for sale | $ 1,419 | $ 1,419 | $ 723 | ||
Number of restaurants | restaurant | 1,706 | 1,706 | |||
Held-for-sale [Member] | |||||
Franchisor Disclosure [Line Items] | |||||
Assets held for sale | $ 1,400 | $ 1,400 | $ 700 | ||
Assets held for sale, property | 1,200 | 1,200 | |||
Assets held for sale, goodwill | $ 200 | $ 200 | |||
Number of restaurants | restaurant | 7 | 7 | 3 | ||
Number of real estate properties | real_estate | 1 | ||||
Real Estate [Member] | |||||
Franchisor Disclosure [Line Items] | |||||
Real estate parcels sold | unit | 2 | 0 | 6 | 0 | |
Cash proceeds | $ 2,142 | $ 0 | $ 10,680 | $ 0 | |
Noncash consideration | 0 | 0 | 3,000 | 0 | |
Less: Property sold | (740) | 0 | (1,686) | 0 | |
Less: Other assets | (114) | 0 | (120) | 0 | |
Gains on sales of assets and other, net | $ 1,288 | $ 0 | $ 11,874 | $ 0 | |
Franchisor Owned Outlet [Member] | |||||
Franchisor Disclosure [Line Items] | |||||
Restaurants sold to franchisees | 56 | 0 | 96 | 0 | |
Cash proceeds | $ 68,774 | $ 0 | $ 107,611 | $ 0 | |
Receivables | 2,976 | 0 | 3,446 | 0 | |
Less: Property sold | (17,759) | 0 | (27,984) | 0 | |
Less: Goodwill | (1,705) | 0 | (2,709) | 0 | |
Less: Intangibles | (579) | 0 | (2,225) | 0 | |
Less: Deferred gain | (1,350) | (1,350) | |||
Gains on sales of assets and other, net | $ 50,357 | $ 0 | $ 76,789 | $ 0 |
Refranchisings and Acquisitio_4
Refranchisings and Acquisitions - Acquisitions (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2019USD ($)parcelrestaurant | Sep. 26, 2018USD ($)parcelrestaurant | Sep. 25, 2019USD ($)parcelrestaurant | Sep. 26, 2018USD ($)parcelrestaurant | |
Business Acquisition [Line Items] | ||||
Restaurants acquired from franchisees | restaurant | 0 | 0 | 0 | 6 |
Purchase price allocation of reacquired franchise rights | $ 0 | $ 0 | $ 0 | $ 5,434 |
Purchase price allocation of property | 0 | 0 | 0 | 1,121 |
Purchase price allocation of goodwill | 0 | 0 | 0 | 1,574 |
Total purchase price to reacquire franchised restaurants | 0 | 0 | 0 | 8,129 |
Financing leases recorded | 0 | 0 | 0 | 2,409 |
Real Estate [Member] | ||||
Business Acquisition [Line Items] | ||||
Total purchase price to reacquire franchised restaurants | $ 4,750 | $ 0 | $ 9,456 | $ 1,787 |
Real estate parcels acquired | parcel | 2 | 0 | 4 | 1 |
Operating (Gains), Losses and_3
Operating (Gains), Losses and Other Charges, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 25, 2019 | Sep. 26, 2018 | Sep. 25, 2019 | Sep. 26, 2018 | Dec. 26, 2018 | |
Other Income and Expenses [Abstract] | |||||
Gains on sales of assets and other, net | $ (51,183) | $ (695) | $ (87,497) | $ (759) | |
Restructuring charges and exit costs | 1,092 | 48 | 2,038 | 816 | |
Impairment charges | 0 | 1,440 | 0 | 1,558 | |
Operating (gains), losses and other charges, net | (50,091) | 793 | (85,459) | 1,615 | |
Restructuring Charges [Abstract] | |||||
Exit costs | 20 | 48 | 194 | 347 | |
Severance and other restructuring charges | 1,072 | 0 | 1,844 | 469 | |
Total restructuring charges and exit costs | 1,092 | $ 48 | 2,038 | $ 816 | |
Exit cost liabilities | 100 | 100 | $ 1,200 | ||
Accrued severance and other restructuring charges | $ 1,100 | $ 1,100 | $ 600 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Sep. 25, 2019 | Dec. 26, 2018 |
Receivables [Abstract] | ||
Trade accounts receivable from franchisees, gross, current | $ 12,054 | $ 11,459 |
Financing receivables from franchisees, gross, current | 4,985 | 3,211 |
Allowance for doubtful accounts | (290) | (300) |
Total current receivables, net | 19,903 | 26,283 |
Noncurrent assets (included as a component of other noncurrent assets): | ||
Financing receivables from franchisees and other | 450 | 1,528 |
Vendor receivables [Member] | ||
Receivables [Abstract] | ||
Other receivables, gross, current | 1,386 | 4,016 |
Credit card receivables [Member] | ||
Receivables [Abstract] | ||
Other receivables, gross, current | 876 | 5,955 |
Other [Member] | ||
Receivables [Abstract] | ||
Other receivables, gross, current | $ 892 | $ 1,942 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 25, 2019 | Dec. 26, 2018 | |
Goodwill [Roll Forward] | ||
Balance, December 26, 2018 | $ 39,781 | |
Adjustments related to the sale of restaurants and reclassifications to assets held for sale | (2,897) | |
Balance, September 25, 2019 | 36,884 | |
Gross carrying amount - Trade names | 44,087 | $ 44,087 |
Gross carrying amount - Liquor licenses | 120 | 166 |
Gross carrying amount - Intangible assets with definite lives | 16,218 | 19,933 |
Accumulated amortization - Intangible assets with definite lives | 5,834 | 5,119 |
Intangible assets, net | $ 60,425 | $ 64,186 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 25, 2019 | Dec. 26, 2018 |
Other Liabilities, Current [Abstract] | ||
Accrued payroll | $ 17,279 | $ 23,395 |
Accrued insurance, primarily current portion of liability for insurance claims | 6,884 | 7,323 |
Accrued taxes | 7,143 | 7,667 |
Accrued advertising | 4,500 | 7,413 |
Gift cards | 4,272 | 6,546 |
Other | 11,540 | 9,446 |
Other current liabilities | $ 51,618 | $ 61,790 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 25, 2019 | Dec. 26, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, net | $ (55,800) | |
Investments | 3,188 | $ 1,709 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total, liabilities | (39,999) | |
Total, assets | 8,469 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total, assets | 12,661 | 11,235 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total, liabilities | (52,660) | (2,766) |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total, assets | 0 | 0 |
Recurring [Member] | Deferred Compensation Plan Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 12,661 | 11,235 |
Recurring [Member] | Deferred Compensation Plan Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 12,661 | 11,235 |
Recurring [Member] | Deferred Compensation Plan Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 0 | 0 |
Recurring [Member] | Deferred Compensation Plan Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 0 | 0 |
Recurring [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, net | (55,848) | (4,475) |
Recurring [Member] | Interest Rate Swaps [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, net | 0 | 0 |
Recurring [Member] | Interest Rate Swaps [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, net | (55,848) | (4,475) |
Recurring [Member] | Interest Rate Swaps [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, net | 0 | 0 |
Recurring [Member] | Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 3,188 | 1,709 |
Recurring [Member] | Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Recurring [Member] | Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 3,188 | 1,709 |
Recurring [Member] | Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 0 | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 25, 2019 | Dec. 26, 2018 | |
Senior Secured Revolver [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, term | 5 years | |
Line of credit facility, current borrowing capacity | $ 400,000,000 | |
Accordion feature that allows increase in size of facility | 450,000,000 | |
Outstanding amount under credit facility | 213,000,000 | |
Availability under the credit facility | $ 166,400,000 | |
Weighted-average interest rate | 4.18% | 4.43% |
Commitment fee for unused portion of revolving credit facility (in hundredths) | 0.30% | |
Maturity date | Oct. 26, 2022 | |
Senior Secured Revolver [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate debt (as a percent) | 2.00% | |
Senior Secured Revolver [Member] | Interest Rate Swap [Member] | ||
Line of Credit Facility [Line Items] | ||
Weighted-average interest rate | 4.44% | 4.48% |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | $ 30,000,000 | |
Outstanding amount of letters of credit | $ 20,600,000 |
Long-Term Debt - Interest Rate
Long-Term Debt - Interest Rate Swaps (Details) | 9 Months Ended |
Sep. 25, 2019USD ($) | |
Derivative [Line Items] | |
Interest rate swaps, net | $ (55,800,000) |
Interest Rate Swap 2018-2025 [Member] | |
Derivative [Line Items] | |
Trade Date | Mar. 20, 2015 |
Effective Date | Mar. 29, 2018 |
Maturity Date | Mar. 31, 2025 |
Notional Amount | $ 120,000,000 |
Fixed Rate | 2.44% |
Interest Rate Swap 2018-2026 [Member] | |
Derivative [Line Items] | |
Trade Date | Oct. 1, 2015 |
Effective Date | Mar. 29, 2018 |
Maturity Date | Mar. 31, 2026 |
Notional Amount | $ 50,000,000 |
Fixed Rate | 2.46% |
Interest Rate Swap 2020-2033 [Member] | |
Derivative [Line Items] | |
Trade Date | Feb. 15, 2018 |
Effective Date | Mar. 31, 2020 |
Maturity Date | Dec. 31, 2033 |
Notional Amount | $ 80,000,000 |
Fixed Rate | 3.19% |
Interest Rate Swap 2020-2029 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Notional Amount | $ 425,000,000 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2019USD ($) | Sep. 26, 2018USD ($) | Sep. 25, 2019USD ($)segment | Sep. 26, 2018USD ($) | |
Revenues [Abstract] | ||||
Number of segments | segment | 1 | |||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 124,258 | $ 158,023 | $ 427,553 | $ 470,630 |
Franchisor Owned Outlet [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 63,582 | 103,609 | 257,574 | 307,543 |
Franchisor Owned Outlet [Member] | Sales Channel, Directly to Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 63,582 | 103,609 | 257,574 | 307,543 |
Royalties [Member] | Sales Channel, Through Intermediary [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 27,830 | 25,518 | 79,742 | 75,875 |
Advertising [Member] | Sales Channel, Through Intermediary [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 20,756 | 19,546 | 59,582 | 58,386 |
Initial and Other Fees [Member] | Sales Channel, Through Intermediary [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 1,356 | 1,415 | 4,250 | 4,642 |
Occupancy [Member] | Sales Channel, Through Intermediary [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 10,734 | 7,935 | 26,405 | 24,184 |
Franchise [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 60,676 | 54,414 | 169,979 | 163,087 |
Franchise [Member] | Sales Channel, Through Intermediary [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 60,676 | $ 54,414 | $ 169,979 | $ 163,087 |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 25, 2019 | Dec. 26, 2018 | |
Movement in Deferred Revenue [Roll Forward] | ||
Balance, December 26, 2018 | $ 20,538 | |
Fees received from franchisees | 4,796 | |
Revenue recognized | (2,077) | |
Balance, September 25, 2019 | 23,257 | |
Less current portion included in other current liabilities | 2,182 | |
Deferred franchise revenue included in other noncurrent liabilities | 21,075 | |
Revenue recognized included in beginning deferred franchise revenue balance | 1,800 | |
Gift card liabilities | 4,272 | $ 6,546 |
Revenue recognized from gift card redemptions | $ 1,800 |
Revenues - Deferred Revenue (De
Revenues - Deferred Revenue (Details) $ in Thousands | Sep. 25, 2019USD ($) |
Revenues [Abstract] | |
Deferred franchise revenue expected to be recognized | $ 23,257 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-26 | |
Revenues [Abstract] | |
Deferred franchise revenue expected to be recognized | $ 583 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred franchise revenue expected to be recognized, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-26 | |
Revenues [Abstract] | |
Deferred franchise revenue expected to be recognized | $ 2,204 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred franchise revenue expected to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-27 | |
Revenues [Abstract] | |
Deferred franchise revenue expected to be recognized | $ 2,017 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred franchise revenue expected to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-28 | |
Revenues [Abstract] | |
Deferred franchise revenue expected to be recognized | $ 1,908 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred franchise revenue expected to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-29 | |
Revenues [Abstract] | |
Deferred franchise revenue expected to be recognized | $ 1,830 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred franchise revenue expected to be recognized, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-30 | |
Revenues [Abstract] | |
Deferred franchise revenue expected to be recognized | $ 14,715 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred franchise revenue expected to be recognized, period |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2019 | Sep. 26, 2018 | Sep. 25, 2019 | Sep. 26, 2018 | |
Total share-based compensation [Abstract] | ||||
Total share-based compensation | $ 2,176 | $ 1,100 | $ 7,142 | $ 3,661 |
Performance share units [Member] | ||||
Total share-based compensation [Abstract] | ||||
Total share-based compensation | $ 1,957 | 902 | $ 6,418 | 2,922 |
Restricted Stock Units [Abstract] | ||||
Performance period, equity award | 3 years | |||
Common stock, shares issued | 0.4 | |||
Common stock, shares deferred | 0.4 | 0.4 | ||
Shares paid for tax withholding | 0.2 | |||
Unrecognized compensation cost [Abstract] | ||||
Unrecognized compensation cost related to unvested share awards outstanding | $ 14,300 | $ 14,300 | ||
Unrecognized compensation cost, expected weighted average period | 1 year 10 months 24 days | |||
Performance share units [Member] | Minimum [Member] | ||||
Restricted Stock Units [Abstract] | ||||
Percentage of target awards to be earned | 0.00% | |||
Performance share units [Member] | Maximum [Member] | ||||
Restricted Stock Units [Abstract] | ||||
Percentage of target awards to be earned | 150.00% | |||
Performance share units [Member] | Performance share units that vest based on TSR [Member] | ||||
Restricted Stock Units [Abstract] | ||||
Equity awards granted (in shares) | 0.3 | |||
Equity awards, grant date fair value (in dollars per share) | $ 20.47 | |||
Performance share units [Member] | Performance share units that vest based on Adjusted EPS growth [Member] | ||||
Restricted Stock Units [Abstract] | ||||
Equity awards granted (in shares) | 0.3 | |||
Equity awards, grant date fair value (in dollars per share) | $ 17.58 | |||
Restricted stock units for board members [Member] | ||||
Total share-based compensation [Abstract] | ||||
Total share-based compensation | 219 | $ 198 | $ 724 | $ 739 |
Restricted Stock Units [Abstract] | ||||
Equity awards granted (in shares) | 0.1 | |||
Equity awards, grant date fair value (in dollars per share) | $ 19.44 | |||
Performance period, equity award | 1 year | |||
Common stock, shares issued | 0.1 | |||
Unrecognized compensation cost [Abstract] | ||||
Unrecognized compensation cost related to unvested share awards outstanding | $ 500 | $ 500 | ||
Unrecognized compensation cost, expected weighted average period | 7 months 6 days |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2019 | Sep. 26, 2018 | Sep. 25, 2019 | Sep. 26, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate, percent | 23.70% | 20.60% | 21.30% | 18.30% |
Effective income tax rate reconciliation, discrete item relating to share-based compensation, percent | 1.00% | 0.50% | 1.80% | 3.40% |
Benefit from completion of IRS audit, tax contingency, domestic, percent | 1.60% |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2019 | Sep. 26, 2018 | Sep. 25, 2019 | Sep. 26, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 49,122 | $ 10,805 | $ 98,851 | $ 32,190 |
Weighted average shares outstanding - basic (in shares) | 59,430 | 63,246 | 60,457 | 63,774 |
Effect of dilutive share-based compensation awards (in shares) | 1,759 | 2,276 | 1,913 | 2,348 |
Weighted average shares outstanding - diluted (in shares) | 61,189 | 65,522 | 62,370 | 66,122 |
Basic net income per share (in dollars per share) | $ 0.83 | $ 0.17 | $ 1.64 | $ 0.50 |
Diluted net income per share (in dollars per share) | $ 0.80 | $ 0.16 | $ 1.58 | $ 0.49 |
Antidilutive share-based compensation awards (in shares) | 274 | 0 | 226 | 471 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 25, 2019 | Sep. 26, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid, net | $ 17,853 | $ 2,347 |
Interest paid | 14,393 | 14,349 |
Noncash investing and financing activities: | ||
Issuance of common stock, pursuant to share-based compensation plans | 7,522 | 4,671 |
Noncash consideration received in connection with the sale of real estate | 3,000 | 0 |
Execution of finance leases | 305 | 2,850 |
Treasury stock payable | 228 | 419 |
Receivables in connection with disposition of property | 3,446 | 0 |
Insurance proceeds receivable | $ 48 | $ 19 |
Shareholders' Deficit - Share R
Shareholders' Deficit - Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Nov. 30, 2018 | Sep. 25, 2019 | Sep. 26, 2018 | Sep. 25, 2019 | Sep. 26, 2018 | Jun. 26, 2019 | Dec. 26, 2018 | Jun. 27, 2018 | Dec. 27, 2017 | Oct. 31, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Payments for repurchase of common stock | $ 50,649,000 | $ 37,108,000 | ||||||||
Purchase of treasury stock | $ 12,807,000 | $ 8,563,000 | $ 50,804,000 | $ 37,407,000 | ||||||
Number of accumulated shares repurchased | 50,073 | 50,073 | 47,052 | |||||||
Treasury Stock [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Purchase of treasury stock (in shares) | 589 | 574 | 2,632 | 2,437 | ||||||
Purchase of treasury stock | $ 12,807,000 | $ 8,563,000 | $ 50,804,000 | $ 37,407,000 | ||||||
Number of accumulated shares repurchased | 50,073 | 45,588 | 50,073 | 45,588 | 49,484 | 47,052 | 45,014 | 43,151 | ||
Share Repurchase Program 2017 [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share repurchase, authorized amount | $ 200,000,000 | |||||||||
Purchase of treasury stock (in shares) | 2,600 | |||||||||
Purchase of treasury stock | $ 50,800,000 | |||||||||
Remaining shares to be repurchased | $ 77,600,000 | $ 77,600,000 | ||||||||
Number of accumulated shares repurchased | 7,200 | 7,200 | ||||||||
Value of shares repurchased | $ 122,400,000 | $ 122,400,000 | ||||||||
Accelerated Share Repurchase 2018 [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share repurchase, authorized amount | $ 25,000,000 | |||||||||
Payments for repurchase of common stock | $ 25,000,000 | |||||||||
Purchase of treasury stock (in shares) | 1,100 | |||||||||
Purchase of treasury stock | $ 18,200,000 | |||||||||
Remaining shares to be repurchased | $ 6,800,000 | |||||||||
Volume-weighted average price (in dollars per share) | $ 17.04 | |||||||||
Accelerated Share Repurchase 2018 [Member] | Treasury Stock [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Purchase of treasury stock (in shares) | 389 | |||||||||
Purchase of treasury stock | $ 6,800,000 |
Shareholders' Deficit - Compone
Shareholders' Deficit - Components of Accumulated Other Comprehensive Loss (Details) $ in Thousands | 9 Months Ended |
Sep. 25, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of beginning of period | $ (133,345) |
Net change in fair value of derivatives | (51,412) |
Income tax (expense) benefit related to items of other comprehensive loss | 13,546 |
Balance as of end of period | (118,746) |
Defined Benefit Plans [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of beginning of period | (827) |
Reclassification | 65 |
Income tax (expense) benefit related to items of other comprehensive loss | (17) |
Balance as of end of period | (779) |
Derivatives [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of beginning of period | (3,319) |
Reclassification | 40 |
Net change in fair value of derivatives | (51,412) |
Income tax (expense) benefit related to items of other comprehensive loss | 13,563 |
Balance as of end of period | (41,128) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of beginning of period | (4,146) |
Balance as of end of period | $ (41,907) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 25, 2019 | Dec. 26, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loan amounts outstanding under the loan pools | $ 1.3 | $ 2.5 |
Maximum payments guaranteed | 0.8 | |
Guarantee liabilities included as a component of other noncurrent liabilities | $ 0.1 | $ 0.1 |
Uncategorized Items - q3201910-
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (15,446,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (394,000) |