Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Feb. 28, 2014 | Mar. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Feb-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'SONIC CORP. | ' |
Entity Central Index Key | '0000868611 | ' |
Current Fiscal Year End Date | '--08-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 54,349,291 |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $35,117 | $77,896 |
Restricted cash | 8,589 | 11,823 |
Accounts and notes receivable, net | 24,732 | 29,142 |
Income taxes receivable | 7,949 | 7,728 |
Prepaid expenses and other current assets | 11,397 | 14,133 |
Total current assets | 87,784 | 140,722 |
Noncurrent restricted cash | 6,717 | 6,791 |
Notes receivable, net | 7,868 | 10,013 |
Property, equipment and capital leases | 755,659 | 729,197 |
Less accumulated depreciation and amortization | -340,325 | -329,536 |
Property, equipment and capital leases, net | 415,334 | 399,661 |
Goodwill | 77,093 | 77,093 |
Other assets, net | 23,827 | 26,514 |
Total assets | 618,623 | 660,794 |
Current liabilities: | ' | ' |
Accounts payable | 11,562 | 13,100 |
Franchisee deposits | 3,599 | 4,048 |
Accrued liabilities | 29,319 | 37,221 |
Income taxes payable | 2,107 | 4,241 |
Current maturities of long-term debt and capital leases | 14,518 | 14,320 |
Total current liabilities | 61,105 | 72,930 |
Obligations under capital leases due after one year | 25,020 | 22,458 |
Long-term debt due after one year | 432,485 | 437,380 |
Deferred income taxes | 35,510 | 34,915 |
Other non-current liabilities | 18,233 | 15,647 |
Total non-current liabilities | 511,248 | 510,400 |
Stockholders' equity: | ' | ' |
Preferred stock, par value $.01; 1,000 shares authorized; none outstanding | ' | ' |
Common stock, par value $.01; 245,000 shares authorized; 118,309 shares issued (118,309 shares issued at August 31, 2013) | 1,183 | 1,183 |
Paid-in capital | 218,874 | 224,768 |
Retained earnings | 770,453 | 758,138 |
Treasury stock, at cost; 63,915 shares (62,025 shares at August 31, 2013) | -944,240 | -906,625 |
Total stockholders’ equity | 46,270 | 77,464 |
Total liabilities and stockholders' equity | $618,623 | $660,794 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 245,000,000 | 245,000,000 |
Common stock, shares issued | 118,309,000 | 118,309,000 |
Treasury stock, shares | 63,915,000 | 62,025,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Revenues: | ' | ' | ' | ' |
Company Drive-In sales | $81,848 | $83,706 | $175,347 | $177,162 |
Franchise Drive-Ins: | ' | ' | ' | ' |
Franchise royalties and fees | 26,582 | 25,996 | 57,803 | 55,916 |
Lease revenue | 715 | 949 | 1,601 | 2,435 |
Other | 596 | 490 | 1,642 | 1,636 |
Total revenues | 109,741 | 111,141 | 236,393 | 237,149 |
Costs and expenses: | ' | ' | ' | ' |
Food and packaging | 23,043 | 23,546 | 49,279 | 50,178 |
Payroll and other employee benefits | 30,031 | 31,448 | 63,371 | 64,913 |
Other operating expenses, exclusive of depreciation and amortization included below | 18,437 | 18,811 | 40,244 | 40,787 |
Total cost of Company Drive-In sales | 71,511 | 73,805 | 152,894 | 155,878 |
Selling, general and administrative | 15,886 | 15,467 | 32,891 | 31,597 |
Depreciation and amortization | 10,031 | 10,069 | 20,065 | 20,664 |
Other operating income, net | -36 | -218 | -165 | -211 |
Total costs and expenses | 97,392 | 99,123 | 205,685 | 207,928 |
Income from operations | 12,349 | 12,018 | 30,708 | 29,221 |
Interest expense | 6,384 | 7,448 | 12,767 | 15,123 |
Interest income | -144 | -168 | -261 | -309 |
Loss from early extinguishment of debt | ' | 492 | ' | 492 |
Net interest expense | 6,240 | 7,772 | 12,506 | 15,306 |
Income before income taxes | 6,109 | 4,246 | 18,202 | 13,915 |
Provision for income taxes | 2,002 | 669 | 5,887 | 4,205 |
Net income | $4,107 | $3,577 | $12,315 | $9,710 |
Basic income per share | $0.07 | $0.06 | $0.22 | $0.17 |
Diluted income per share | $0.07 | $0.06 | $0.21 | $0.17 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $12,315 | $9,710 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 20,065 | 20,664 |
Stock-based compensation expense | 1,839 | 1,948 |
Other | -2,321 | 718 |
Decrease in operating assets: | ' | ' |
Restricted cash | 3,447 | 2,702 |
Accounts receivable and other assets | 6,277 | 6,625 |
Increase (decrease) in operating liabilities: | ' | ' |
Accounts payable | -2,216 | 986 |
Accrued and other liabilities | -5,215 | -6,209 |
Income taxes | 1,729 | -15,197 |
Total adjustments | 23,605 | 12,237 |
Net cash provided by operating activities | 35,920 | 21,947 |
Cash flows from investing activities | ' | ' |
Purchases of property and equipment | -31,587 | -13,917 |
Proceeds from sale of assets | 1,030 | 31,861 |
Other | 3,002 | 1,977 |
Net cash provided by (used in) investing activities | -27,555 | 19,921 |
Cash flows from financing activities | ' | ' |
Payments on debt | -4,893 | -27,468 |
Purchases of treasury stock | -57,847 | -25,550 |
Proceeds from exercise of stock options | 12,327 | 3,000 |
Other | -731 | -2,010 |
Net cash used in financing activities | -51,144 | -52,028 |
Net decrease in cash and cash equivalents | -42,779 | -10,160 |
Cash and cash equivalents at beginning of period | 77,896 | 52,647 |
Cash and cash equivalents at end of period | 35,117 | 42,487 |
Cash paid during the period for: | ' | ' |
Income taxes (net of refunds) | 4,638 | 20,087 |
Non-cash investing and financing activities: | ' | ' |
Change in obligation to acquire treasury stock | 530 | -1,102 |
Notes receivable and direct financing leases from property disposition | ' | $8,661 |
Basis_Of_Presentation
Basis Of Presentation | 6 Months Ended |
Feb. 28, 2014 | |
Basis Of Presentation [Abstract] | ' |
Basis Of Presentation | ' |
1.Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements of Sonic Corp. (the “Company”). In the opinion of management, these financial statements reflect all adjustments of a normal recurring nature, including recurring accruals, necessary for the fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. In certain situations, recurring accruals, including franchise royalties, are based on more limited information at interim reporting dates than at the Company’s fiscal year end due to the abbreviated reporting period. Actual results may differ from these estimates. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended August 31, 2013, included in the Company’s Annual Report on Form 10-K. Interim results are not necessarily indicative of the results that may be expected for a full year or any other interim period. The second fiscal quarter is typically the most volatile for the Company due to seasonality and weather. | |
Principles of Consolidation | |
The accompanying financial statements include the accounts of the Company, its wholly owned subsidiaries and a number of Company Drive-Ins in which a subsidiary has a controlling ownership interest. All intercompany accounts and transactions have been eliminated. | |
Reclassifications | |
Certain amounts reported in previous years, which are not material, have been combined and reclassified to conform to the current-year presentation. | |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
2.Earnings Per Share | |||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
February 28, | February 28, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator: | |||||||||||||
Net income | $ | 4,107 | $ | 3,577 | $ | 12,315 | $ | 9,710 | |||||
Denominator: | |||||||||||||
Weighted average common shares outstanding– basic | 55,958 | 55,798 | 56,125 | 56,735 | |||||||||
Effect of dilutive employee stock options and | |||||||||||||
unvested restricted stock units | 1,450 | 625 | 1,528 | 519 | |||||||||
Weighted average common shares – diluted | 57,408 | 56,423 | 57,653 | 57,254 | |||||||||
Net income per common share – basic | $ | 0.07 | $ | 0.06 | $ | 0.22 | $ | 0.17 | |||||
Net income per common share – diluted | $ | 0.07 | $ | 0.06 | $ | 0.21 | $ | 0.17 | |||||
Anti-dilutive securities excluded(1) | 1,117 | 3,735 | 1,042 | 4,151 | |||||||||
————————— | |||||||||||||
(1) Anti-dilutive securities consist of stock options and unvested restricted stock units that were not included in the computation of diluted earnings per share because either the exercise price of the options was greater than the average market price of the common stock or the total assumed proceeds under the treasury stock method resulted in negative incremental shares and thus the inclusion would have been anti-dilutive. | |||||||||||||
Share_Repurchase_Program
Share Repurchase Program | 6 Months Ended |
Feb. 28, 2014 | |
Share Repurchase Program [Abstract] | ' |
Share Repurchase Program | ' |
3.Share Repurchase Program | |
In August 2013, the Company’s Board of Directors extended the share repurchase program authorizing the Company to purchase up to $40 million of its outstanding shares of common stock and, in January 2014, the Company’s Board of Directors approved an incremental $40 million authorization that allows for up to $80 million of common stock to be repurchased through August 31, 2014. Share repurchases may be made from time to time in the open market or otherwise, including through an accelerated share repurchase program, under terms of a Rule 10b5-1 plan, in privately negotiated transactions or in round lot or block transactions. The share repurchase program may be extended, modified, suspended or discontinued at any time. | |
In February 2014, the Company entered into an accelerated share repurchase (“ASR”) agreement with a financial institution to purchase $40 million of the Company’s common stock. In exchange for a $40 million up-front payment, the financial institution delivered approximately 2.1 million shares. Subsequent to the end of the second quarter, the ASR purchase period concluded with no additional shares delivered, resulting in an average price per share of $19.13. | |
The Company reflected the ASR transaction as a repurchase of common stock for purposes of calculating earnings per share and as a forward contract indexed to its own common stock. The forward contract met all of the applicable criteria for equity classification. | |
Including repurchases under the ASR transaction described above, during the first six months of fiscal year 2014, approximately 3.1 million shares were repurchased for a total cost of $58.4 million, resulting in an average price per share of $19.06. | |
The total remaining amount authorized under the share repurchase program, as of February 28, 2014, was $21.6 million. | |
Income_Taxes
Income Taxes | 6 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
4.Income Taxes | |||||||||||||||||
The following table presents the Company’s provision for income taxes and effective income tax rate for the periods below: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Provision for income taxes | $ | 2,002 | $ | 669 | $ | 5,887 | $ | 4,205 | |||||||||
Effective income tax rate | 32.8 | % | 15.8 | % | 32.3 | % | 30.2 | % | |||||||||
The lower effective income tax rate during the second quarter and first six months of fiscal year 2013 was primarily attributable to the expiration of a state statute of limitations related to an uncertain tax position and legislation that was passed to reinstate and extend the Work Opportunity Tax Credit (“WOTC”). | |||||||||||||||||
As of February 28, 2014, the Company had $2.1 million of unrecognized tax benefits, including $0.3 million of interest and penalties. During the first six months of fiscal year 2014, the liability for unrecognized tax benefits decreased $0.5 million. The decrease was primarily related to the IRS’ acceptance of a federal tax method change that impacted the Company’s tax rate. The Company recognizes estimated interest and penalties as a component of its income tax expense, net of federal benefit. If recognized, the entire amount of unrecognized tax benefits would favorably impact the effective tax rate. | |||||||||||||||||
The Company or one of its subsidiaries is subject to U.S. federal income tax and income tax in multiple U.S. state jurisdictions. The Company is currently undergoing examinations or appeals by various state and federal authorities. The Company anticipates that the finalization of these examinations or appeals, combined with the expiration of applicable statutes of limitations and the additional accrual of interest related to unrecognized benefits on various return positions taken in years still open for examination, could result in a change to the liability for unrecognized tax benefits during the next 12 months ranging from a decrease of $1.5 million to an increase of $1.3 million depending on the timing and terms of the examination resolutions. | |||||||||||||||||
Contingencies
Contingencies | 6 Months Ended |
Feb. 28, 2014 | |
Contingencies [Abstract] | ' |
Contingencies | ' |
5.Contingencies | |
The Company is involved in various legal proceedings and has certain unresolved claims pending. Based on the information currently available, management believes that all claims currently pending are either covered by insurance or would not have a material adverse effect on the Company’s business, operating results or financial condition. | |
On December 20, 2013, the Company extended a note purchase agreement to a bank that serves to guarantee the repayment of a franchisee loan, with a term through 2018, and also benefits the franchisee with a lower financing rate. In the event of default by the franchisee, the Company would purchase the franchisee loan from the bank, thereby becoming the note holder and providing an avenue of recourse with the franchisee. The Company recorded a liability for this guarantee which was based on the Company’s estimate of fair value. As of February 28, 2014, the balance of the franchisee’s loan was $6.3 million. | |
The Company has obligations under various operating lease agreements with third-party lessors related to the real estate for certain Company Drive-In operations that were sold to franchisees. Under these agreements, which expire through 2029, the Company remains secondarily liable for the lease payments for which it was responsible as the original lessee. As of February 28, 2014, the amount remaining under these guaranteed lease obligations totaled $10.0 million. At this time, the Company does not anticipate any material defaults under the foregoing leases; therefore, no liability has been provided. | |
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 6 Months Ended |
Feb. 28, 2014 | |
Fair Value Of Financial Instruments [Abstract] | ' |
Fair Value Of Financial Instruments | ' |
6.Fair Value of Financial Instruments | |
The fair value of financial instruments is the amount at which the instrument could be exchanged in a current transaction between willing parties. The Company has no financial liabilities that are required to be measured at fair value on a recurring basis. | |
The Company categorizes its assets and liabilities recorded at fair value based upon the following fair value hierarchy established by the Financial Accounting Standards Board: | |
•Level 1 valuations use quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. An active market is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
•Level 2 valuations use inputs other than actively quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: (a) quoted prices for similar assets or liabilities in active markets, (b) quoted prices for identical or similar assets or liabilities in markets that are not active, (c) inputs other than quoted prices that are observable for the asset or liability such as interest rates and yield curves observable at commonly quoted intervals and (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |
•Level 3 valuations use unobservable inputs for the asset or liability. Unobservable inputs are used to the extent observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. | |
The Company’s cash equivalents are carried at cost which approximates fair value and totaled $31.8 million at February 28, 2014 and $39.1 million at August 31, 2013. This fair value is estimated using Level 1 inputs. | |
At February 28, 2014, the fair value of the Company’s Series 2011-1 Senior Secured Fixed Rate Notes, Class A-2 (the “2011 Fixed Rate Notes”) and Series 2013-1 Senior Secured Fixed Rate Notes, Class A-2 (the “2013 Fixed Rate Notes”) approximated the carrying value of $442.7 million, including accrued interest. At August 31, 2013, the fair value of the 2011 Fixed Rate Notes and 2013 Fixed Rate Notes approximated the carrying value of $447.6 million, including accrued interest. The fair value of the 2011 Fixed Rate Notes and the 2013 Fixed Rate Notes is estimated using Level 2 inputs from market information available for public debt transactions for companies with ratings that are similar to the Company’s ratings and from information gathered from brokers who trade in the Company’s notes. | |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
7.Segment Information | |||||||||||||
Operating segments are generally defined as components of an enterprise for which separate discrete financial information is available as the basis for management to allocate resources and assess performance. | |||||||||||||
Based on internal reporting and management structure, the Company has two reportable segments: Company Drive-Ins and Franchise Operations. The Company Drive-Ins segment consists of the drive-in operations in which the Company owns a controlling ownership interest and derives its revenues from operating drive-in restaurants. The Franchise Operations segment consists of franchising activities and derives its revenues from royalties, franchise fees and lease revenues received from franchisees. The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies in the Company’s most recent Annual Report on Form 10-K. Segment information for total assets and capital expenditures is not presented as such information is not used in measuring segment performance or allocating resources between segments. | |||||||||||||
The following table presents the revenues and income from operations for each reportable segment, along with reconciliation to reported revenue, income from operations and income before income taxes: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
February 28, | February 28, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Revenues: | |||||||||||||
Company Drive-Ins | $ | 81,848 | $ | 83,706 | $ | 175,347 | $ | 177,162 | |||||
Franchise Operations | 27,297 | 26,945 | 59,404 | 58,351 | |||||||||
Unallocated revenues | 596 | 490 | 1,642 | 1,636 | |||||||||
Total revenues | $ | 109,741 | $ | 111,141 | $ | 236,393 | $ | 237,149 | |||||
Income from operations: | |||||||||||||
Company Drive-Ins | $ | 10,337 | $ | 9,901 | $ | 22,453 | $ | 21,284 | |||||
Franchise Operations | 27,297 | 26,945 | 59,404 | 58,351 | |||||||||
Unallocated income | 632 | 708 | 1,807 | 1,847 | |||||||||
Unallocated expenses: | |||||||||||||
Selling, general and administrative | -15,886 | -15,467 | -32,891 | -31,597 | |||||||||
Depreciation and amortization | -10,031 | -10,069 | -20,065 | -20,664 | |||||||||
Income from operations | 12,349 | 12,018 | 30,708 | 29,221 | |||||||||
Net interest expense | -6,240 | -7,772 | -12,506 | -15,306 | |||||||||
Income before income taxes | $ | 6,109 | $ | 4,246 | $ | 18,202 | $ | 13,915 | |||||
Basis_Of_Presentation_Policy
Basis Of Presentation (Policy) | 6 Months Ended |
Feb. 28, 2014 | |
Basis Of Presentation [Abstract] | ' |
Principles Of Consolidation | ' |
Principles of Consolidation | |
The accompanying financial statements include the accounts of the Company, its wholly owned subsidiaries and a number of Company Drive-Ins in which a subsidiary has a controlling ownership interest. All intercompany accounts and transactions have been eliminated. | |
Reclassifications | ' |
Reclassifications | |
Certain amounts reported in previous years, which are not material, have been combined and reclassified to conform to the current-year presentation. | |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation Of Basic And Diluted Earnings Per Share | ' | ||||||||||||
Three months ended | Six months ended | ||||||||||||
February 28, | February 28, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator: | |||||||||||||
Net income | $ | 4,107 | $ | 3,577 | $ | 12,315 | $ | 9,710 | |||||
Denominator: | |||||||||||||
Weighted average common shares outstanding– basic | 55,958 | 55,798 | 56,125 | 56,735 | |||||||||
Effect of dilutive employee stock options and | |||||||||||||
unvested restricted stock units | 1,450 | 625 | 1,528 | 519 | |||||||||
Weighted average common shares – diluted | 57,408 | 56,423 | 57,653 | 57,254 | |||||||||
Net income per common share – basic | $ | 0.07 | $ | 0.06 | $ | 0.22 | $ | 0.17 | |||||
Net income per common share – diluted | $ | 0.07 | $ | 0.06 | $ | 0.21 | $ | 0.17 | |||||
Anti-dilutive securities excluded(1) | 1,117 | 3,735 | 1,042 | 4,151 | |||||||||
————————— | |||||||||||||
(1) Anti-dilutive securities consist of stock options and unvested restricted stock units that were not included in the computation of diluted earnings per share because either the exercise price of the options was greater than the average market price of the common stock or the total assumed proceeds under the treasury stock method resulted in negative incremental shares and thus the inclusion would have been anti-dilutive. | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||
Schedule Of Provision (Benefit) For Income Taxes And Effective Income Tax Rate | ' | ||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Provision for income taxes | $ | 2,002 | $ | 669 | $ | 5,887 | $ | 4,205 | |||||||||
Effective income tax rate | 32.8 | % | 15.8 | % | 32.3 | % | 30.2 | % | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Reconciliation Of Reported Revenue, Income From Operations From Segments And Income Before Income Taxes | ' | ||||||||||||
Three months ended | Six months ended | ||||||||||||
February 28, | February 28, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Revenues: | |||||||||||||
Company Drive-Ins | $ | 81,848 | $ | 83,706 | $ | 175,347 | $ | 177,162 | |||||
Franchise Operations | 27,297 | 26,945 | 59,404 | 58,351 | |||||||||
Unallocated revenues | 596 | 490 | 1,642 | 1,636 | |||||||||
Total revenues | $ | 109,741 | $ | 111,141 | $ | 236,393 | $ | 237,149 | |||||
Income from operations: | |||||||||||||
Company Drive-Ins | $ | 10,337 | $ | 9,901 | $ | 22,453 | $ | 21,284 | |||||
Franchise Operations | 27,297 | 26,945 | 59,404 | 58,351 | |||||||||
Unallocated income | 632 | 708 | 1,807 | 1,847 | |||||||||
Unallocated expenses: | |||||||||||||
Selling, general and administrative | -15,886 | -15,467 | -32,891 | -31,597 | |||||||||
Depreciation and amortization | -10,031 | -10,069 | -20,065 | -20,664 | |||||||||
Income from operations | 12,349 | 12,018 | 30,708 | 29,221 | |||||||||
Net interest expense | -6,240 | -7,772 | -12,506 | -15,306 | |||||||||
Income before income taxes | $ | 6,109 | $ | 4,246 | $ | 18,202 | $ | 13,915 | |||||
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | ||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ||||
Net income | $4,107 | $3,577 | $12,315 | $9,710 | ||||
Weighted average common shares outstanding – basic | 55,958 | 55,798 | 56,125 | 56,735 | ||||
Effect of dilutive employee stock options and unvested restricted stock units | 1,450 | 625 | 1,528 | 519 | ||||
Weighted average common shares - diluted | 57,408 | 56,423 | 57,653 | 57,254 | ||||
Net income per common share - basic | $0.07 | $0.06 | $0.22 | $0.17 | ||||
Net income per common share - diluted | $0.07 | $0.06 | $0.21 | $0.17 | ||||
Anti-dilutive securities excluded | 1,117 | [1] | 3,735 | [1] | 1,042 | [1] | 4,151 | [1] |
[1] | Anti-dilutive securities consist of stock options and unvested restricted stock units that were not included in the computation of diluted earnings per share because either the exercise price of the options was greater than the average market price of the common stock or the total assumed proceeds under the treasury stock method resulted in negative incremental shares and thus the inclusion would have been anti-dilutive. |
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | 1 Months Ended | 6 Months Ended | 1 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Aug. 31, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Apr. 04, 2014 |
Accelerated Share Repurchase Program [Member] | Subsequent Event [Member] | ||||
Accelerated Share Repurchase Program [Member] | |||||
Share Repurchase Program [Line Items] | ' | ' | ' | ' | ' |
Shares repurchase authorized amount increase | $40 | ' | ' | ' | ' |
Shares repurchase authorized amount | ' | 40 | 80 | 40 | ' |
Shares acquired through stock repurchase program | ' | ' | 3.1 | 2.1 | 0 |
Purchase of treasury stock | ' | ' | 58.4 | 40 | ' |
Remaining amount authorized for repurchase through share repurchase program | ' | ' | $21.60 | ' | ' |
Final price paid per share | ' | ' | ' | ' | $19.13 |
Weighted-average price per share | ' | ' | $19.06 | ' | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2014 |
Income Taxes [Abstract] | ' |
Unrecognized tax benefits | $2.10 |
Unrecognized tax benefits in interest and penalties | 0.3 |
Decrease in unrecognized tax benefits | 0.5 |
Possible change in unrecognized tax benefits, lower bound | 1.3 |
Possible change in unrecognized tax benefits, upper bound | ($1.50) |
Income_Taxes_Schedule_Of_Provi
Income Taxes (Schedule Of Provision (Benefit) For Income Taxes And Effective Income Tax Rate) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Income Taxes [Abstract] | ' | ' | ' | ' |
Provision for income taxes | $2,002 | $669 | $5,887 | $4,205 |
Effective income tax rate | 32.80% | 15.80% | 32.30% | 30.20% |
Contingencies_Details
Contingencies (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2014 |
Guarantee Operating Lease Obligations [Member] | ' |
Loss Contingencies [Line Items] | ' |
Guaranteed obligations | $10 |
Guaranteed liability, carrying value | 0 |
Guarantor Obligations, Term | '2029 |
Note Repurchase Agreement [Member] | ' |
Loss Contingencies [Line Items] | ' |
Guaranteed obligations | $6.30 |
Guarantor Obligations, Term | '2018 |
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Narrative) (Details) (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Of Financial Instruments [Abstract] | ' | ' |
Cash equivalents carried at cost | $31.80 | $39.10 |
Fixed Rate Notes, fair value | 442.7 | 447.6 |
Fixed rate notes, carrying value, including accrued interest | $442.70 | $447.60 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
segment | ||||
Segment Information [Abstract] | ' | ' | ' | ' |
Reportable business segments | ' | ' | 2 | ' |
Company Drive-Ins | $81,848 | $83,706 | $175,347 | $177,162 |
Franchise Operations | 27,297 | 26,945 | 59,404 | 58,351 |
Unallocated revenues | 596 | 490 | 1,642 | 1,636 |
Total revenues | 109,741 | 111,141 | 236,393 | 237,149 |
Company Drive-Ins | 10,337 | 9,901 | 22,453 | 21,284 |
Franchise Operations | 27,297 | 26,945 | 59,404 | 58,351 |
Unallocated income | 632 | 708 | 1,807 | 1,847 |
Selling, general and administrative | -15,886 | -15,467 | -32,891 | -31,597 |
Depreciation and amortization | -10,031 | -10,069 | -20,065 | -20,664 |
Income from operations | 12,349 | 12,018 | 30,708 | 29,221 |
Net interest expense | -6,240 | -7,772 | -12,506 | -15,306 |
Income before income taxes | $6,109 | $4,246 | $18,202 | $13,915 |