Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 08, 2019 | |
Document and entity information [Abstract] | ||
Document type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document period end date | Jun. 30, 2019 | |
Entity File Number | 0-21625 | |
Entity registrant name | FAMOUS DAVES OF AMERICA INC | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1782300 | |
Entity Address, Address Line One | 12701 Whitewater Drive, Suite 290 | |
Entity Address, City or Town | Minnetonka | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55343 | |
City Area Code | 952 | |
Local Phone Number | 294-1300 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | DAVE | |
Security Exchange Name | NASDAQ | |
Entity current reporting status | Yes | |
Entity Interactive Data Current | Yes | |
Entity filer category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity common stock shares outstanding | 9,273,905 | |
Current fiscal year end date | --12-29 | |
Document Fiscal Year Focus | 2019 | |
Document Period Focus | Q2 | |
Entity central index key | 0001021270 | |
Amendment flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 8,220 | $ 11,598 |
Restricted cash | 800 | 842 |
Accounts receivable, net of allowance for doubtful accounts of $87,000 and $192,000, respectively | 4,470 | 4,300 |
Inventories | 1,250 | 722 |
Prepaid income taxes and income taxes receivable | 379 | 377 |
Prepaid expenses and other current assets | 1,238 | 1,363 |
Assets held for sale | 2,842 | |
Total current assets | 19,199 | 19,202 |
Property, equipment and leasehold improvements, net | 10,468 | 10,385 |
Other assets: | ||
Operating lease right-of-use assets | 24,745 | |
Goodwill | 435 | 61 |
Intangible assets, net | 3,488 | 1,428 |
Deferred tax asset, net | 5,753 | 5,747 |
Other assets | 1,699 | 1,533 |
Total assets | 65,787 | 38,356 |
Current liabilities: | ||
Accounts payable | 4,114 | 3,765 |
Current portion of lease liabilities | 3,294 | |
Current portion of long-term debt and financing lease obligations | 166 | 1,369 |
Accrued compensation and benefits | 1,685 | 808 |
Other current liabilities | 3,461 | 2,970 |
Total current liabilities | 12,720 | 8,912 |
Long-term liabilities: | ||
Lease liabilities, less current portion | 23,932 | |
Long-term debt, less current portion | 2,404 | 2,411 |
Other liabilities | 2,869 | 4,492 |
Total liabilities | 41,925 | 15,815 |
Shareholders' equity: | ||
Common stock, $.01 par value, 100,000 shares authorized, 9,274 and 9,085 shares issued and outstanding at June 30, 2019 and December 30, 2018, respectively | 93 | 91 |
Additional paid-in capital | 7,596 | 7,375 |
Retained earnings | 16,173 | 15,075 |
Total shareholders' equity | 23,862 | 22,541 |
Total liabilities and shareholders' equity | $ 65,787 | $ 38,356 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 87 | $ 192 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000 | 100,000 |
Common stock issued (in shares) | 9,274 | 9,085 |
Common Stock, Shares, Outstanding | 9,274 | 9,085 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Revenue: | ||||
Total revenue | $ 21,128 | $ 14,538 | $ 35,321 | $ 27,382 |
Costs and expenses: | ||||
Food and beverage costs | 5,325 | 3,099 | 8,685 | 5,816 |
Labor and benefits costs | 5,819 | 3,361 | 9,776 | 6,557 |
Operating expenses | 5,187 | 2,894 | 8,356 | 5,735 |
Depreciation and amortization expenses | 515 | 309 | 779 | 702 |
General and administrative expenses | 2,377 | 2,111 | 4,894 | 3,985 |
National advertising fund expenses | 471 | 529 | 880 | 998 |
Asset impairment, estimated lease termination charges and other closing costs, net | 97 | 216 | 504 | 112 |
Net gain on disposal of property | (140) | 30 | (146) | 29 |
Total costs and expenses | 19,651 | 12,549 | 33,728 | 23,934 |
Income from operations | 1,477 | 1,989 | 1,593 | 3,448 |
Other income (expense): | ||||
Interest expense | (288) | (197) | (359) | (342) |
Interest income | 33 | 20 | 87 | 25 |
Total other expense | (255) | (177) | (272) | (317) |
Income before income taxes | 1,222 | 1,812 | 1,321 | 3,131 |
Income tax expense | (182) | (420) | (199) | (741) |
Net income | $ 1,040 | $ 1,392 | $ 1,122 | $ 2,390 |
Basic net income per share | $ 0.11 | $ 0.16 | $ 0.12 | $ 0.29 |
Diluted net income per share | $ 0.11 | $ 0.16 | $ 0.12 | $ 0.29 |
Weighted average shares outstanding - basic | 9,093 | 8,809 | 9,089 | 8,108 |
Weighted average shares outstanding - diluted | 9,278 | 8,835 | 9,191 | 8,131 |
Restaurant Sales | ||||
Revenue: | ||||
Total revenue | $ 16,898 | $ 9,955 | $ 27,212 | $ 18,668 |
Franchise Royalty and Fees | ||||
Revenue: | ||||
Total revenue | 3,447 | 3,753 | 6,651 | 7,161 |
Franchisee National Advertising Fund Contributions | ||||
Revenue: | ||||
Total revenue | 471 | 529 | 880 | 998 |
Licensing and Other Revenue | ||||
Revenue: | ||||
Total revenue | $ 312 | $ 301 | $ 578 | $ 555 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - 6 months ended Jun. 30, 2019 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in Shares) at Dec. 30, 2018 | 9,085 | |||
Balance at Dec. 30, 2018 | $ 91 | $ 7,375 | $ 15,075 | $ 22,541 |
Stock-based compensation (in Shares) | 189 | |||
Stock-based compensation | $ 2 | 221 | 223 | |
Net income | 1,122 | 1,122 | ||
Balance (in Shares) at Jun. 30, 2019 | 9,274 | |||
Balance at Jun. 30, 2019 | $ 93 | $ 7,596 | 16,173 | 23,862 |
Cumulative effect of change in accounting principle | $ (24) | $ (24) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,122 | $ 2,390 |
Adjustments to reconcile net income to cash flows provided by operations: | ||
Depreciation and amortization | 779 | 702 |
Stock-based compensation | 223 | 167 |
Net gain on disposal of property | (146) | 29 |
Asset impairment and estimated lease termination charges (gain) | 469 | (268) |
Bad debts expense (recovery) | (87) | (25) |
Other non-cash items | 124 | (230) |
Accounts receivable, net | (422) | (298) |
Other assets | (411) | 716 |
Accounts payable | 321 | (851) |
Accrued and other liabilities | 481 | (1,298) |
Cash flows provided by operating activities | 2,453 | 1,034 |
Cash flows from investing activities: | ||
Proceeds from the sale of assets | 6 | 1,187 |
Purchases of property, equipment and leasehold improvements | (1,242) | (290) |
Payments for acquired restaurants | (4,265) | |
Advances on notes receivable | (150) | (648) |
Payments received on notes receivable | 8 | |
Cash flows used for investing activities | (5,643) | 249 |
Cash flows from financing activities: | ||
Payments for debt issuance costs | (54) | |
Payments on long-term debt and financing lease obligations | (176) | (5,757) |
Proceeds from sale of common stock, net of offering costs | 5,132 | |
Proceeds from exercise of stock options | 494 | |
Cash flows (used for) provided by financing activities | (230) | (131) |
Decrease in cash, cash equivalents and restricted cash | (3,420) | 1,152 |
Cash, cash equivalents and restricted cash, beginning of period | 12,440 | 10,426 |
Cash, cash equivalents and restricted cash, end of period | 9,020 | 11,578 |
Supplemental Disclosures | ||
Cash paid for interest | 262 | 248 |
Cash paid (refunds received) for income taxes, net | 5 | |
Increase (decrease) in accrued property and equipment purchases | $ (35) | $ (7) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
Nature Of Business And Significant Accounting Policies [Abstract] | |
Nature Of Business And Significant Accounting Policies [Text Block] | (1) Basis of Presentation Basis of Presentation Famous Dave’s of America, Inc. (“Famous Dave’s” or the “Company”) was incorporated in Minnesota on March 14, 1994. The Company develops, owns, operates and franchises restaurants under the name "Famous Dave’s." As of June 30, 2019, there were 136 Famous Dave’s restaurants operating in 33 states, the Commonwealth of Puerto Rico, Canada, and the United Arab Emirates, including 29 Company-owned restaurants and 107 franchise-operated restaurants. These consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and Securities and Exchange Commission (“SEC”) Rules and Regulations. These unaudited consolidated financial statements represent the consolidated financial statements of the Company and its subsidiaries as of June 30, 2019 and December 30, 2018, and for the three and six months ended June 30, 2019 and July 1, 2018. The information furnished in these consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2018 as filed with the SEC on March 4, 2019. Due to the seasonality of the Company’s business, revenue and operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full fiscal year or any other interim period. Reclassifications Certain prior period amounts have been reclassified to conform to the current period’s presentation. These reclassifications did not have an impact on the reported net income for any of the periods presented. Income Taxes The Company maintains a federal deferred tax asset (“DTA”) in the amount of $5.8 million for each of the periods ended June 30, 2019 and December 30, 2018. The Company evaluates the DTA on a quarterly basis to determine whether current facts and circumstances indicate that the DTA may not be fully realizable. As of June 30, 2019, the Company concluded that the DTA is fully realizable and that no further valuation allowance was necessary; however, the Company will continue to evaluate the DTA on a quarterly basis until the DTA has been fully utilized. The following table presents the Company’s effective tax rates for the periods presented: Three Months Ended Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Effective tax rate 14.9 % 23.2 % 15.1 % 23.7 % The Company provides for income taxes based on its estimate of federal and state income tax liabilities. These estimates include, among other items, effective rates for state and local income taxes, allowable tax credits for items such as taxes paid on reported tip income, estimates related to depreciation and amortization expense allowable for tax purposes, and the tax deductibility of certain other items. The Company’s estimates are based on the information available at the time that the Company prepares the income tax provision. The Company generally files its annual income tax returns several months after its fiscal year-end. Income tax returns are subject to audit by federal, state, and local governments, generally years after the tax returns are filed. These returns could be subject to material adjustments or differing interpretations of the tax laws. Restricted cash and marketing fund The Company has a system-wide marketing development fund, to which Company-owned restaurants, in addition to the majority of franchise-operated restaurants, contribute a percentage of net sales for use in public relations and marketing development efforts. The assets held by this fund are considered to be restricted. Accordingly, the Company reflects the cash related to this fund within restricted cash and reflects the liability within accounts payable on the Company’s consolidated balance sheets. The Company had approximately $656,000 and $700,000 in this fund as of June 30, 2019 and December 30, 2018, respectively. In conjunction with the Company’s credit agreements, the Company has deposited amounts for undrawn letters of credit in cash collateral accounts. The Company had approximately $144,000 and $143,000 in restricted cash as of June 30, 2019 and December 30, 2018, respectively, related to these undrawn letters of credit. Assets Held for Sale As of June 30, 2019, the Company had assets held for sale of approximately $2.8 million related to an owned property for which the Company entered into an agreement to sell the property for a contract purchase price of $3.6 million. Concentrations of Credit Risk Subsequent Events Recently Adopted Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Under the updated standard, an entity is required to apply the requirements of Topic 718 to nonemployee awards, except for specific guidance on inputs to an option-pricing model and the attribution of cost. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in the grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling or goods or services as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within that fiscal year. Early adoption was permitted, but no earlier than an entity’s adoption date of Topic 606. The Company adopted this new standard as of the effective date. Adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. Beginning in fiscal 2019, the Company adopted Topic 842, Leases, which had a material impact on the Company’s consolidated financial statements. See Note 7 – Leases |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2019 | |
Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | (2) Intangible Assets, net The Company has intangible assets that consist of liquor licenses, lease interest assets and reacquired franchise rights, net. The liquor licenses are indefinite-lived assets and are not subject to amortization. The lease interest assets are amortized to occupancy costs on a straight-line basis over the remaining term of each respective lease. Reacquired franchise rights are amortized to depreciation and amortization expense on a straight-line basis over the remaining life of the reacquired franchise agreement. A reconciliation of the Company’s intangible assets as of June 30, 2019 and December 30, 2018, respectively, are presented in the table below: (in thousands) June 30, 2019 December 30, 2018 Lease interest assets, net 893 768 Reacquired franchise rights, net 1,960 25 Liquor licenses 635 635 Intangible assets, net $ 3,488 $ 1,428 The following table provides the projected future amortization of reacquired franchise rights, net and lease interest assets for the next five years, as of June 30, 2019: (in thousands) Reacquired Franchise Rights, net Lease Interest Assets Fiscal 2019 $ 205 $ 37 Fiscal 2020 412 66 Fiscal 2021 412 52 Fiscal 2022 412 52 Fiscal 2023 247 52 Thereafter 272 634 $ 1,960 $ 893 |
LONG-TERM DEBT AND FINANCING LE
LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Financing Lease Obligations [Text Block] | (3) Long-Term Debt and Financing Lease Obligations Long-term debt Long-term debt consisted of the following at: (in thousands) June 30, 2019 December 30, 2018 Term Loan $ 2,624 $ — Real Estate Loan — 2,705 Less: deferred financing costs (54) (131) Less: current portion of long-term debt (166) (163) Long-term debt, less current portion $ 2,404 $ 2,411 The weighted-average interest rate of long-term debt outstanding as of June 30, 2019 and December 30, 2018 was 5.50% and 4.41%, respectively. On June 20, 2019 (the “Effective Date”), the Company entered into a Loan Agreement among the Company and Choice Financial Group (the “Lender”). Proceeds from the loan were used to repay the Company’s previous real estate loan, dated December 2, 2016, which outstanding balance as of the Effective Date was approximately $2.6 million. The remainder of the First Note may be drawn upon during the Draw Period, provided that there are no uncured events of default. The Loan Agreement is secured by a mortgage and security agreement and fixture financing statement (the “First Mortgage”) granting to the Lender a security interest in and title to certain real property in the state of Minnesota and as more fully described therein. The Loan Agreement contains customary representations and warranties and financial and other covenants and conditions, including, among other things, minimum debt service coverage ratio and a post-closing covenant to maintain a complete deposit and cash management relationship with the Lender. The Loan Agreement also places certain restrictions on, among other things, the borrowers’ ability to incur additional indebtedness, to create liens or other encumbrances, to use funds for purposes other than as stated therein, to sell or otherwise dispose of assets without the consent of the Lender. In addition, the Loan Agreement contains events of default (subject to certain materiality thresholds and grace periods), including, without limitation, payment defaults; breaches of covenants; breaches of representations and warranties; failure to perform remediation of any environmental matters on the mortgaged property, as set forth in the First Mortgage; failure to perform or observe the covenants, conditions or terms of the First Loan Agreement and related agreements; certain bankruptcy events of the borrowers and failure to timely provide financial statements. Also on the Effective Date, the Company also entered into a Revolving Promissory Note among the Company and the Lender. The Company is subject to various financial and non-financial covenants on its long-term debt, including a debt-service coverage ratio. As of June 30, 2019, the Company was compliant with all of its covenants. Financing Lease Obligation |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets [Text Block] | (4) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following at: (in thousands) June 30, 2019 December 30, 2018 Prepaid expenses and deferred costs $ 922 $ 767 Prepaid insurance 316 596 $ 1,238 $ 1,363 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Other Current Liabilities Disclosure [Text Block] | (5) Other Current Liabilities Other current liabilities consisted of the following at: (in thousands) June 30, 2019 December 30, 2018 Gift cards payable $ 1,159 $ 1,035 Accrued expenses 1,534 1,238 Asset retirement obligations and lease reserves 29 161 Sales tax payable 512 274 State income tax payable 16 16 Deferred franchise fees 207 207 Accrued property and equipment purchases 4 39 Other current liabilities $ 3,461 $ 2,970 |
OTHER LIABILITIES
OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities [Abstract] | |
Other Liabilities Disclosure [Text Block] | (6) Other Liabilities Other liabilities consisted of the following at: (in thousands) June 30, 2019 December 30, 2018 Deferred rent $ — $ 1,787 Deferred franchise fees 1,375 1,791 Miscellaneous other liabilities 1,284 441 Asset retirement obligations 8 16 Accrual for uncertain tax position 10 10 Long-term lease reserve — 254 Long-term deferred compensation 192 193 Other liabilities $ 2,869 $ 4,492 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee Operating And Finance Leases [Text Block] | (7) Leases The Company leases the property for its corporate headquarters, most of its Company-owned stores, and certain office and restaurant equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in its consolidated balance sheets. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. Because most of the Company's leases do not provide an implicit rate of return, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU assets also exclude lease incentives received. Where the Company is the lessee, at initial adoption, the Company has elected to account for non-lease components associated with its leases (e.g., common area maintenance costs) and lease components separately for substantially all of its asset classes. Subsequent to adoption, the Company will combine lease and non-lease components. Lease terms for Company-owned stores generally range from 5-20 years with one or more five-year renewal options and generally require the Company to pay a proportionate share of real estate taxes, insurance, common area, and other operating costs in addition to a base or fixed rent. The Company has elected the short term lease exemption for certain qualifying leases with lease terms of twelve months or less and, accordingly, did not record right-of-use assets and lease liabilities. These leases with initial terms of less than 12 months are recorded directly to occupancy expense on a straight-line basis over the term of the lease. Additionally, the Company has decided to utilize the package of practical expedients and the practical expedient to not reassess certain land easements. The Company has decided not to utilize the practical expedient to use hindsight. Certain of the Company’s leases also provide for variable lease payments in the form of percentage rent, in which additional rent is calculated as a percentage of sales in excess of a base amount, and not included in the calculation of the operating lease liability or ROU asset. The Company's leases have remaining lease terms of 0.25 to 21 years. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Economic performance of a store is the primary factor used to estimate whether an option to extend a lease term will be exercised or not. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense for the period presented is as follows: Six Months Ended (in thousands) June 30, 2019 Operating lease cost $ 1,564 Short-term lease cost 40 Variable lease cost 49 Sublease income (138) Total lease cost $ 1,515 Supplemental cash flow information related to leases for the period presented is as follows: Six Months Ended (in thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,721 Right-of-use assets obtained in exchange for new operating lease liabilities 14,340 Weighted-average remaining lease term of operating leases (in years) 9.74 Weighted-average discount rate of operating leases 5.62 % The maturities of the Company’s lease liabilities as of June 30, 2019 is as follows (in thousands): 2019 $ 2,316 2020 4,594 2021 4,477 2022 4,212 2023 3,690 Thereafter 17,004 Total future minimum payments 36,293 Less imputed interest (9,067) Total lease liability $ 27,226 As of June 30, 2019, the Company had one operating lease that had not commenced for a new restaurant site in Oklahoma City, Oklahoma. The lease has a 15-year term with two five-year renewal options. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | (8) Revenue Recognition The Company recognizes franchise fee revenue on a straight-line basis over the life of the related franchise agreements and any exercised renewal periods. Cash payments are due upon the opening of a new restaurant or upon the execution of a renewal of the related franchise agreement. The Company’s performance obligation with respect to franchise fee revenues consists of a license to utilize the Company’s brand for a specified period of time, which is satisfied equally over the life of each franchise agreement. Area development fees are deferred until a new restaurant is opened pursuant to the area development agreement, at which time revenue is recognized on a straight-line basis over the life of the franchise agreement. Cash payments for area development agreements are typically due when an area development agreement has been executed. Gift card breakage revenue is recognized proportionately as gift cards are redeemed utilizing an estimated breakage rate based on the Company’s historical experience. Gift card breakage revenue is reported within the licensing and other revenue line item of the consolidated statements of operations. The Company defers revenue associated with the estimated selling price of reward points, which we refer to as Bones, earned pursuant to the Company’s loyalty program and establishes a corresponding liability. This deferral is based on the estimated value of the product for which the reward is expected to be redeemed, net of estimated unredeemed Bones. When a Guest redeems an earned reward, the Company recognizes revenue for the redeemed product and reduces the deferred revenue. Deferred revenue associated with the Company’s loyalty program was not material as of June 30, 2019 and December 30, 2018. The Company’s revenue is generally disaggregated within the consolidated statements of operations. Gift card breakage revenue was not material to the Company’s consolidated financial statements. The Company recognized revenue related to gift cards of approximately $28,000 and $161,000 during the three and six months ended June 30, 2019, respectively, which is reflected in the restaurant sales, net, line item of its consolidated statements of operations. Gift cards payable of approximately $1.2 million is expected to be recognized as revenue over the next 12 months. The following table illustrates estimated revenues expected to be recognized in the future related to unsatisfied performance obligations as of June 30, 2019: (in thousands) Fiscal Year 2019 $ 159 2020 144 2021 137 2022 132 2023 122 Thereafter 888 Total $ 1,582 Contract liabilities consist of deferred revenue resulting from franchise fees paid by franchisees. We classify these liabilities within other current liabilities and other liabilities within our consolidated balance sheets based on the expected timing of revenue recognition associated with these liabilities. The following table reflects the change in contract liabilities between December 30, 2018 and June 30, 2019: (in thousands) Balance, December 30, 2018 $ 1,998 Revenue recognized (416) Balance, June 30, 2019 $ 1,582 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2019 | |
Performance Shares Stock Options Other Forms Of Compensation And Common Share Repurchases [Abstract] | |
Performance Shares, Stock Options, Other Forms of Compensation and Common Share Repurchases [Text Block] | (9) Stock-based Compensation Effective May 5, 2015, the Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”), pursuant to which the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance stock units and other stock and cash awards to eligible participants. The Company also maintains an Amended and Restated 2005 Stock Incentive Plan (the “2005 Plan”). Together, the 2015 Plan and 2005 Plan are referred to herein as the “Plans.” The 2005 Plan prohibits the granting of incentives after May 12, 2015, the tenth anniversary of the date the 2005 Plan was approved by the Company’s shareholders. Nonetheless, the 2005 Plan will remain in effect until all outstanding incentives granted thereunder have either been satisfied or terminated. As of June 30, 2019, there were 132,713 shares available for grant pursuant to the 2015 Plan. For purposes of net income per share, there were approximately 193,000 and 430,000 stock options outstanding as of June 30, 2019 and July 1, 2018, respectively, which were not included in the computation of diluted net income per share because their impact was antidilutive. As of June 30, 2019, the total compensation cost related to unvested stock option awards was approximately $1.2 million which is expected to be recognized over a period of approximately 3.30 years. Stock options granted to employees and directors generally vest over two to five years, in monthly or annual installments, as outlined in each agreement. Options generally expire ten years from the date of grant. Compensation expense equal to the grant date fair value of the options is recognized in general and administrative expense over the applicable service period. The Company utilizes the Black-Scholes option pricing model when determining the compensation cost associated with stock options issued using the following significant assumptions: ● Stock price – Published trading market values of the Company’s common stock as of the date of grant. ● Exercise price – The stated exercise price of the stock option. ● Expected life – The simplified method as outlined in ASC 718. ● Expected dividend – The rate of dividends that the Company expects to pay over the term of the stock option. ● Volatility – Actual volatility over the most recent historical period equivalent to the expected life of the option. ● Risk-free interest rate – The daily United States Treasury yield curve rate. The Company recognized stock-based compensation expense in its consolidated statements of operations for the three and six months ended June 30, 2019 and July 1, 2018, respectively, as follows: Three Months Ended Six Months Ended (in thousands) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Stock options $ 81 $ 120 $ 141 $ 167 Restricted stock 59 — 82 — $ 140 $ 120 $ 223 $ 167 Information regarding the Company’s stock options is summarized below: Weighted Average Remaining Number of Weighted Average Contractual (number of options in thousands) Options Exercise Price Life in Years Options outstanding at December 30, 2018 384 $ 7.43 6.7 Granted 157 4.26 Forfeited or expired (23) 6.61 Options outstanding at June 30, 2019 518 $ 6.50 6.0 Information regarding the Company’s restricted stock is summarized below: Weighted Average Remaining Number of Weighted Average Contractual (number of awards in thousands) Awards Award Date Fair Value Life in Years Unvested at December 30, 2018 — $ — Granted 189 5.00 Vested (16) 5.00 Unvested at June 30, 2019 173 $ 5.00 3.6 Six Months Ended June 30, 2019 July 1, 2018 Weighted-average fair value of options granted during the period $ 2.33 $ 3.39 Expected life (in years) 5.5 6.1 Expected dividend $ — $ — Expected stock volatility 50.31 % 46.66 % Risk-free interest rate 2.5 % 2.7 % |
ASSET IMPAIRMENT AND ESTIMATED
ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS | 6 Months Ended |
Jun. 30, 2019 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment, Estimated Lease Termination and Other Closing Costs [Text Block] | (10) Asset Impairment, Estimated Lease Termination and Other Closing Costs The following is a summary of asset impairment, estimated lease termination and other closing costs for the three and six months ended June 30, 2019 and July 1, 2018. These costs are included in asset impairment, estimated lease termination and other closing costs in the consolidated statements of operations. Three Months Ended Six Months Ended (dollars in thousands) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Asset impairments, net $ 2 $ 2 $ 350 $ 152 Lease termination charges (income) and related costs 71 90 91 (343) Restaurant closure expenses 24 124 63 303 Asset impairment, estimated lease termination charges and other closing costs $ 97 $ 216 $ 504 $ 112 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | (11) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement framework establishes a three-tier hierarchy. The three levels, in order of priority, are as follows: Level 1: Level 2: Level 3: For assets and liabilities falling within Level 3 of the fair value hierarchy, a change in the input assumptions used could result in a change in the estimated fair value of the asset or liability. Transfers in and out of levels will be based on the Company’s judgment of the availability of unadjusted quoted prices in active markets, other observable inputs, and non-observable inputs. The carrying amounts of cash and cash equivalents reported in the consolidated balance sheets approximates fair value based on current interest rates and short-term maturities. The carrying amount of accounts receivable approximates fair value due to the short-term nature of accounts receivable. The Company believes that the carrying amount of long-term debt approximates fair value due to the variable interest rate on the Company’s long-term debt, as well as that there has been no significant change in the credit risk or credit markets since origination. The Company had no assets measured at fair value in its consolidated balance sheets as of June 30, 2019 and December 30, 2018, except for the assets recorded at fair value in conjunction with restaurant acquisitions. See Note 12 - Restaurant Acquisition |
RESTAURANT ACQUISITIONS
RESTAURANT ACQUISITIONS | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Restaurant Acquisition [Text Block] | (12) Restaurant Acquisition On March 4, 2019, the Company completed the acquisition of the assets and operations of four Famous Dave's restaurants in Colorado (the “Colorado Restaurants”). The sellers of the Colorado Restaurants were Legendary BBQ, Inc., Quebec Square BBQ, Inc., Cornerstar BBQ, Inc., Razorback BBQ, Inc., and Larkridge BBQ, Inc. Pursuant to the same purchase agreement as the acquisition of the Colorado Restaurants, on June 3, 2019, the Company completed the acquisition of the assets and operations of one Famous Dave's restaurant in Grand Junction, Colorado (the “Grand Junction Restaurant”). The seller of the Grand Junction Restaurant was Mesa Mall BBQ, Inc. The contract purchase price of the Colorado Restaurants and the Grand Junction Restaurant was approximately $4,100,000, exclusive of acquisition costs of approximately $174,000, which are reflected in general and administrative expenses, plus the assumption of the gift card liability associated with the restaurants. The Company also purchased inventory on hand as of the acquisition dates. Effective as of the closing date of the acquisitions, the franchise agreements for the Colorado Restaurants and the Grand Junction Restaurant were terminated and outstanding receivables were considered additions to the purchase price. The Company provisionally allocated the purchase price of the Colorado Restaurants as of the end of the first quarter of fiscal 2019. As a result of the completion of the acquisition of the Grand Junction Restaurant, the Company provisionally allocated the identifiable tangible and intangible assets associated with the Grand Junction Restaurant, which resulted in the reduction of goodwill of approximately $0.6 million. The Company expects to complete the purchase accounting for the Colorado Restaurant and the Grand Junction Restaurant in the third quarter of fiscal 2019. The acquisition was accounted for using the purchase method of accounting in accordance with ASC 805 “Business Combinations” and, accordingly, these consolidated statements of operations include the results of these operations from the date of acquisition. The assets acquired and the liabilities assumed were provisionally recorded at estimated fair values based on information available. The following table presents the provisional allocation of assets acquired and liabilities assumed for the Colorado Restaurants and the Grand Junction Restaurant during the three and six months ended June 30, 2019: (in thousands) Assets acquired: Cash and cash equivalents $ 13 Inventory 176 Property, plant, equipment and leasehold improvements, net 3,139 Identifiable intangible assets, net 981 Total identifiable assets acquired 4,309 Liabilities assumed: - Gift card liability (182) Net assets acquired 4,127 Goodwill 373 Total consideration transferred $ 4,500 The Company expects goodwill to be deductible for tax purposes, subject to amortization. During the three months ended June 30, 2019, the Company completed several individually immaterial acquisitions of previously franchised Famous Dave’s restaurants. The acquisitions were accounted for using the purchase method of accounting in accordance with ASC 805 “Business Combinations” and, accordingly, the consolidated statements of operations include the results of these operations from the dates of the respective acquisitions. The assets acquired and the liabilities assumed were recorded at estimated fair values based on information available. Pursuant to these acquisitions, the Company incurred approximately $219,000 of acquisition costs, which are reflected in general and administrative expenses. As a result of the acquisition of previously franchised restaurants during the three months ended June 30, 2019, the Company entered into five leases with a current franchisee pursuant to the respective purchase agreement. The following table presents the provisional allocation of assets acquired and liabilities assumed for the individually immaterial acquisitions during the three months ended June 30, 2019: (in thousands) Assets acquired: Cash and cash equivalents $ 13 Inventory 180 Property, plant, equipment and leasehold improvements, net 326 Identifiable intangible assets, net 86 Total identifiable assets acquired 605 Liabilities assumed: Gift card liability (68) Net assets acquired 537 Gain on bargain purchase (142) Total consideration transferred $ 395 Unaudited pro forma results of operations for the three month and six month periods ended June 30, 2019 and July 1, 2018, as if the Company had acquired majority ownership of all operations on January 1, 2018 is as follows. The pro forma results include estimates and assumptions which management believes are reasonable. However, pro forma results are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the dates indicated, or which may result in the future. Three Months Ended Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Pro forma revenues $ 23,164 $ 23,508 $ 43,838 $ 44,432 Pro forma net income (loss) $ 1,085 $ 1,870 $ 1,456 $ 3,278 Basic pro forma net income (loss) per share $ 0.11 $ 0.21 $ 0.14 $ 0.40 Diluted pro forma net income (loss) per share $ 0.11 $ 0.21 $ 0.14 $ 0.40 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2019 | |
Variable interest entity not primary beneficiary abstract | |
Variable interest entity disclosure [Text Block] | (13) Variable Interest Entities A variable interest holder is considered to be the primary beneficiary of a variable interest entity (“VIE”) if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Once an entity is determined to be a VIE, the primary beneficiary is required to consolidate the entity. The Company has an installment agreement with one of its franchisees as the result of refranchising its Lincoln, Nebraska restaurant. This franchisee is a VIE; however, the owners of the franchise operations are the primary beneficiaries of the entities, not the Company. Therefore, the franchise operations are not required to be consolidated in the Company’s consolidated financial statements. On November 1, 2017, the Company sold its Frederick, Maryland restaurant. Pursuant to the terms of the Frederick Agreement, the Company remained the primary obligor of the lease. As of June 30, 2019, the amount of future lease payments for which the Company would be liable in the event of a default are approximately $484,000. An accrual related to the future lease obligation was not considered necessary as of June 30, 2019. On July 18, 2018, the Company and Clark Championship Products LLC (“Clark”), an entity owned by Travis Clark, became members of Mercury BBQ LLC (“Mercury”) for the purposes of building out and operating the inaugural Clark Crew BBQ restaurant in Oklahoma City, Oklahoma (the “Restaurant”). Clark will own 80% of the units outstanding of Mercury and the Company will own 20% of the units outstanding of Mercury. Mercury shall be governed by three managers, two of which will be appointed by the Company and one of which will be appointed by Clark. Also on July 18, 2018, the Company entered into a secured promissory note in the amount of $1.4 million (the “Loan”) with Mercury, the proceeds of which are required to be used for the build out of the Restaurant. The Loan bears interest at a rate of 10% per annum and requires payments of 100% of the excess monthly cash flows until the Loan and all interest accrued thereon is repaid. The Loan requires a balloon payment of unpaid principal and accrued interest on July 15, 2023 and may be prepaid at any time. Also on July 18, 2018, the Company and Clark entered into an intellectual property license agreement (the “License Agreement”) pursuant to which Clark granted to the Company an exclusive license to use and sublicense the patents, trademarks, trade names, service marks, logos and designs related to Clark Crew BBQ restaurants and products. The term of the License Agreement is indefinite and may only be terminated by mutual written consent, unless the Company breaches the License Agreement. Because the Company will provide more than half of the subordinated financial support of Mercury and controls Mercury via its representation on the board of managers, the Company has concluded that Mercury is a VIE, of which the Company is the primary beneficiary and must consolidate Mercury. There has been no material revenue or expenses related to Mercury during the six months ended June 30, 2019. |
LITIGATION
LITIGATION | 6 Months Ended |
Jun. 30, 2019 | |
Litigation [Abstract] | |
Litigation Disclosure [Text Block] | (14) Litigation In the normal course of business, the Company is involved in a number of litigation matters that are incidental to the operation of the business. These matters generally include, among other things, matters with regard to employment and general business-related issues. The Company currently believes that the resolution of any of these pending matters will not have a material adverse effect on its financial position or liquidity, but an adverse decision in more than one of the matters could be material to its consolidated results of operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | (15) Related Party Transactions Anand D. Gala Charles Davidson is a franchisee of the Company and is the beneficial owner of approximately 18.2% of the Company’s common stock as of the date that these financial statements were available to be issued, by virtue of his ownership interest in Wexford Capital. The following table outlines amounts received from related parties during the six months ended June 30, 2019, and July 1, 2018: Three Months Ended Six Months Ended (in thousands) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Revenues and NAF contributions - Anand Gala $ 432 $ 412 $ 820 $ 794 Revenues and NAF contributions - Charles Davidson 84 83 161 158 The following table outlines accounts receivable from related parties as of June 30, 2019 and December 30, 2018: (in thousands) June 30, 2019 December 30, 2018 Accounts receivable, net - Anand Gala $ 318 $ 271 Accounts receivable, net - Charles Davidson 41 44 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events Disclosure [Text Block] | (16) Subsequent Events The Company has evaluated for the occurrence of subsequent events through the issuance date of the Company’s consolidated financial statements. No other recognized or non-recognized subsequent events occurred that require recognition or disclosure in the consolidated financial statements, except as noted below. On July 10, 2019, Famous Dave’s Ribs, Inc., a wholly-owned subsidiary of the Company completed the acquisition of four franchised Famous Dave’s restaurants in the Arizona market (the “Arizona Purchased Restaurants”). The sellers of the Arizona Purchased Restaurants were Desert Ribs LLC, Famous Charlie LLC, Famous Freddie LLC, Famous Gracie LLC, and Famous George LLC (collectively referred to as the “Seller”), which were franchisees of the Company. The acquisition of the Arizona Purchased Restaurants was pursuant to the Purchase Agreement resulting from a stalking horse bid in the sale process conducted under Sections 363 and 365 of Chapter 11 of the U.S. Bankruptcy Code. The purchase price of the Arizona Purchased Restaurants was approximately $1.6 million in cash and approximately $1.6 million for the assumption of gift card and other liabilities as specified in the Purchase Agreement, settlement of outstanding franchise billings, and fees related to debtor-in-possession financing. As of the date that these financial statements were available to be issued, the Company was still reviewing the financial information of the acquired restaurants. As such, it was impractical to include in these consolidated financial statements the pro forma effect of the acquisition. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Nature Of Business And Significant Accounting Policies [Abstract] | |
Schedule Of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Effective tax rate 14.9 % 23.2 % 15.1 % 23.7 % |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets [Table Text Block] | (in thousands) June 30, 2019 December 30, 2018 Lease interest assets, net 893 768 Reacquired franchise rights, net 1,960 25 Liquor licenses 635 635 Intangible assets, net $ 3,488 $ 1,428 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (in thousands) Reacquired Franchise Rights, net Lease Interest Assets Fiscal 2019 $ 205 $ 37 Fiscal 2020 412 66 Fiscal 2021 412 52 Fiscal 2022 412 52 Fiscal 2023 247 52 Thereafter 272 634 $ 1,960 $ 893 |
LONG-TERM DEBT AND FINANCING _2
LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt [Table Text Block] | (in thousands) June 30, 2019 December 30, 2018 Term Loan $ 2,624 $ — Real Estate Loan — 2,705 Less: deferred financing costs (54) (131) Less: current portion of long-term debt (166) (163) Long-term debt, less current portion $ 2,404 $ 2,411 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets [Table Text Block] | (in thousands) June 30, 2019 December 30, 2018 Prepaid expenses and deferred costs $ 922 $ 767 Prepaid insurance 316 596 $ 1,238 $ 1,363 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Other Current Liabilities [Table Text Block] | (in thousands) June 30, 2019 December 30, 2018 Gift cards payable $ 1,159 $ 1,035 Accrued expenses 1,534 1,238 Asset retirement obligations and lease reserves 29 161 Sales tax payable 512 274 State income tax payable 16 16 Deferred franchise fees 207 207 Accrued property and equipment purchases 4 39 Other current liabilities $ 3,461 $ 2,970 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities [Abstract] | |
Schedule Of Other Liabilities [Table Text Block] | (in thousands) June 30, 2019 December 30, 2018 Deferred rent $ — $ 1,787 Deferred franchise fees 1,375 1,791 Miscellaneous other liabilities 1,284 441 Asset retirement obligations 8 16 Accrual for uncertain tax position 10 10 Long-term lease reserve — 254 Long-term deferred compensation 192 193 Other liabilities $ 2,869 $ 4,492 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Six Months Ended (in thousands) June 30, 2019 Operating lease cost $ 1,564 Short-term lease cost 40 Variable lease cost 49 Sublease income (138) Total lease cost $ 1,515 |
Lessee Supplemental Cash Flow Information Of Leases [Table Text Block] | Six Months Ended (in thousands) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,721 Right-of-use assets obtained in exchange for new operating lease liabilities 14,340 Weighted-average remaining lease term of operating leases (in years) 9.74 Weighted-average discount rate of operating leases 5.62 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The maturities of the Company’s lease liabilities as of June 30, 2019 is as follows (in thousands): 2019 $ 2,316 2020 4,594 2021 4,477 2022 4,212 2023 3,690 Thereafter 17,004 Total future minimum payments 36,293 Less imputed interest (9,067) Total lease liability $ 27,226 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of estimated revenues expected to be recognized in the future related to unsatisfied performance obligations | (in thousands) Fiscal Year 2019 $ 159 2020 144 2021 137 2022 132 2023 122 Thereafter 888 Total $ 1,582 |
Schedule of change in contract liabilities | (in thousands) Balance, December 30, 2018 $ 1,998 Revenue recognized (416) Balance, June 30, 2019 $ 1,582 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Performance Shares Stock Options Other Forms Of Compensation And Common Share Repurchases [Abstract] | |
Schedule of Share-Based Compensation [Table Text Block] | Three Months Ended Six Months Ended (in thousands) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Stock options $ 81 $ 120 $ 141 $ 167 Restricted stock 59 — 82 — $ 140 $ 120 $ 223 $ 167 |
Schedule of Stock Options Roll Forward [Table Text Block] | Weighted Average Remaining Number of Weighted Average Contractual (number of options in thousands) Options Exercise Price Life in Years Options outstanding at December 30, 2018 384 $ 7.43 6.7 Granted 157 4.26 Forfeited or expired (23) 6.61 Options outstanding at June 30, 2019 518 $ 6.50 6.0 |
Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block] | Weighted Average Remaining Number of Weighted Average Contractual (number of awards in thousands) Awards Award Date Fair Value Life in Years Unvested at December 30, 2018 — $ — Granted 189 5.00 Vested (16) 5.00 Unvested at June 30, 2019 173 $ 5.00 3.6 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | Six Months Ended June 30, 2019 July 1, 2018 Weighted-average fair value of options granted during the period $ 2.33 $ 3.39 Expected life (in years) 5.5 6.1 Expected dividend $ — $ — Expected stock volatility 50.31 % 46.66 % Risk-free interest rate 2.5 % 2.7 % |
ASSET IMPAIRMENT AND ESTIMATE_2
ASSET IMPAIRMENT AND ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment, Estimated Lease Termination and Other Closing Costs [Table Text Block] | Three Months Ended Six Months Ended (dollars in thousands) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Asset impairments, net $ 2 $ 2 $ 350 $ 152 Lease termination charges (income) and related costs 71 90 91 (343) Restaurant closure expenses 24 124 63 303 Asset impairment, estimated lease termination charges and other closing costs $ 97 $ 216 $ 504 $ 112 |
RESTAURANT ACQUISITIONS (Tables
RESTAURANT ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information [Table Text Block] | Three Months Ended Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Pro forma revenues $ 23,164 $ 23,508 $ 43,838 $ 44,432 Pro forma net income (loss) $ 1,085 $ 1,870 $ 1,456 $ 3,278 Basic pro forma net income (loss) per share $ 0.11 $ 0.21 $ 0.14 $ 0.40 Diluted pro forma net income (loss) per share $ 0.11 $ 0.21 $ 0.14 $ 0.40 |
Colorado and Grand Junction Restaurants | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in thousands) Assets acquired: Cash and cash equivalents $ 13 Inventory 176 Property, plant, equipment and leasehold improvements, net 3,139 Identifiable intangible assets, net 981 Total identifiable assets acquired 4,309 Liabilities assumed: - Gift card liability (182) Net assets acquired 4,127 Goodwill 373 Total consideration transferred $ 4,500 |
Other individually immaterial acquisitions | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in thousands) Assets acquired: Cash and cash equivalents $ 13 Inventory 180 Property, plant, equipment and leasehold improvements, net 326 Identifiable intangible assets, net 86 Total identifiable assets acquired 605 Liabilities assumed: Gift card liability (68) Net assets acquired 537 Gain on bargain purchase (142) Total consideration transferred $ 395 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following table outlines amounts received from related parties during the six months ended June 30, 2019, and July 1, 2018: Three Months Ended Six Months Ended (in thousands) June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 Revenues and NAF contributions - Anand Gala $ 432 $ 412 $ 820 $ 794 Revenues and NAF contributions - Charles Davidson 84 83 161 158 The following table outlines accounts receivable from related parties as of June 30, 2019 and December 30, 2018: (in thousands) June 30, 2019 December 30, 2018 Accounts receivable, net - Anand Gala $ 318 $ 271 Accounts receivable, net - Charles Davidson 41 44 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Aug. 12, 2019USD ($) | Jun. 30, 2019USD ($)restaurantstate | Jul. 01, 2018 | Jun. 30, 2019USD ($)restaurantitemstate | Jul. 01, 2018 | Dec. 30, 2018USD ($) | |
Franchisor Disclosure Line Items | ||||||
Number Of Restaurants | restaurant | 136 | 136 | ||||
Number of States in which Entity Operates | state | 33 | 33 | ||||
Deferred Tax Assets, Net | $ 5,800 | $ 5,800 | $ 5,800 | |||
Effective Income Tax Rate, Continuing Operations | 14.90% | 23.20% | 15.10% | 23.70% | ||
Restricted cash and marketing fund | ||||||
Restricted cash | $ 800 | $ 800 | 842 | |||
Assets held for sale | ||||||
Assets held for sale | 2,842 | 2,842 | ||||
Contract sale price for assets held for sale | 3,600 | $ 3,600 | ||||
Concentrations of risk | ||||||
Number of franchisees with outstanding balances due | item | 2 | |||||
Accounts receivable, net | 4,470 | $ 4,470 | 4,300 | |||
Customer Concentration Risk | Franchisee One | ||||||
Concentrations of risk | ||||||
Accounts receivable, net | 905 | 905 | ||||
Customer Concentration Risk | Franchisee One | Subsequent Event | ||||||
Concentrations of risk | ||||||
Accounts receivable settled via acquisition | $ 905 | |||||
Customer Concentration Risk | Franchisee Two | ||||||
Concentrations of risk | ||||||
Accounts receivable, net | $ 574 | $ 574 | ||||
Entity Operated Units [Member] | ||||||
Franchisor Disclosure Line Items | ||||||
Number Of Restaurants | restaurant | 29 | 29 | ||||
Franchised Units [Member] | ||||||
Franchisor Disclosure Line Items | ||||||
Number Of Restaurants | restaurant | 107 | 107 | ||||
Public Relations and Marketing Development Fund [Member] | ||||||
Restricted cash and marketing fund | ||||||
Restricted cash | $ 656 | $ 656 | 700 | |||
Cash Restricted for Letters of Credit [Member] | ||||||
Restricted cash and marketing fund | ||||||
Restricted cash | $ 144 | $ 144 | $ 143 |
INTANGIBLE ASSETS, NET - Carryi
INTANGIBLE ASSETS, NET - Carrying Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Intangible assets | ||
Liquor licenses | $ 635 | $ 635 |
Intangible assets, net | 3,488 | 1,428 |
Lease Agreements [Member] | ||
Intangible assets | ||
Net carrying amount | 893 | 768 |
Reacquired Franchise Rights [Member] | ||
Intangible assets | ||
Net carrying amount | $ 1,960 | $ 25 |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Reacquired Franchise Rights [Member] | ||
Intangible assets | ||
Fiscal 2019 | $ 205 | |
Fiscal 2020 | 412 | |
Fiscal 2021 | 412 | |
Fiscal 2022 | 412 | |
Fiscal 2023 | 247 | |
Thereafter | 272 | |
Net carrying amount | 1,960 | $ 25 |
Lease Agreements [Member] | ||
Intangible assets | ||
Fiscal 2019 | 37 | |
Fiscal 2020 | 66 | |
Fiscal 2021 | 52 | |
Fiscal 2022 | 52 | |
Fiscal 2023 | 52 | |
Thereafter | 634 | |
Net carrying amount | $ 893 | $ 768 |
LONG-TERM DEBT AND FINANCING _3
LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | Jun. 20, 2019 | Jun. 30, 2019 | Dec. 30, 2018 |
Debt Instrument [Line Items] | |||
Long-term Debt, Weighted Average Interest Rate | 5.50% | 4.41% | |
Revolving Promissory Note | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,000 | ||
Prepayment penalty | $ 0 | ||
Revolving Promissory Note | 30-day LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 3.25% | ||
Minimum | Prime Rate | |||
Debt Instrument [Line Items] | |||
Rate of interest | 5.00% | ||
Minimum | Revolving Promissory Note | |||
Debt Instrument [Line Items] | |||
Rate of interest | 3.75% | ||
Term Loan | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 24,000 | ||
Period of time, after the first year of the draw period, during which both principal and interest payments are due | 5 years | ||
Debt principal amortization period | 60 months | ||
Outstanding balance | $ 2,624 | ||
Prepayment penalty | $ 0 | ||
Real Estate Loan | |||
Debt Instrument [Line Items] | |||
Outstanding balance | $ 2,600 | $ 2,705 |
LONG-TERM DEBT AND FINANCING _4
LONG-TERM DEBT AND FINANCING LEASE OBLIGATIONS - Long-Term Debt and Financing Lease (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 20, 2019 | Dec. 30, 2018 |
Less: deferred financing costs | $ (54) | $ (131) | |
Less: current portion of long-term debt | (166) | (163) | |
Long-term debt, less current portion | 2,404 | 2,411 | |
Term Loan | |||
Debt Instrument Carrying Amount | $ 2,624 | ||
Real Estate Loan | |||
Debt Instrument Carrying Amount | $ 2,600 | $ 2,705 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure [Abstract] | ||
Prepaid expenses and deferred costs | $ 922 | $ 767 |
Prepaid insurance | 316 | 596 |
Prepaid expenses and other current assets | $ 1,238 | $ 1,363 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Gift cards payable | $ 1,159 | $ 1,035 |
Accrued expenses | 1,534 | 1,238 |
Asset retirement obligations and lease reserves | 29 | 161 |
Sales tax payable | 512 | 274 |
State income tax payable | 16 | 16 |
Deferred franchise fees | 207 | 207 |
Accrued property and equipment purchases | 4 | 39 |
Total other current liabilities | $ 3,461 | $ 2,970 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Other Liabilities [Abstract] | ||
Deferred rent | $ 1,787 | |
Deferred franchise fees | $ 1,375 | 1,791 |
Miscellaneous other liabilities | 1,284 | 441 |
Asset retirement obligations | 8 | 16 |
Accrual for uncertain tax position | 10 | 10 |
Long term lease reserve | 254 | |
Long term deferred compensation | 192 | 193 |
Total other liabilities | $ 2,869 | $ 4,492 |
LEASES (Details)
LEASES (Details) | 6 Months Ended |
Jun. 30, 2019lease | |
Lessee, Lease, Description [Line Items] | |
Operating lease, option to extend | true |
Operating lease, renewal term | 5 years |
Operating lease, Package practical expedient | true |
Operating lease, Hindsight practical expedient | false |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term | 5 years |
Operating lease, number of renewal options | 1 |
Operating lease, remaining lease term | 3 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term | 20 years |
Operating lease, remaining lease term | 21 years |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lease expense | |
Operating lease cost | $ 1,564 |
Short-term lease cost | 40 |
Variable lease cost | 49 |
Sublease income | (138) |
Total lease cost | $ 1,515 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 1,721 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 14,340 |
Weighted-average remaining lease term of operating | 9 years 8 months 26 days |
Weighted-average discount rate of operating leases | 5.62% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Maturities of lease liabilities | |
2019 | $ 2,316 |
2020 | 4,594 |
2021 | 4,477 |
2022 | 4,212 |
2023 | 3,690 |
Thereafter | 17,004 |
Total future minimum payments | 36,293 |
Less imputed interest | (9,067) |
Total lease liability | $ 27,226 |
LEASES - Additional Information
LEASES - Additional Informations (Details) | Dec. 31, 2018leaseOptions |
Leases [Abstract] | |
Number of operating lease not yet commenced | lease | 1 |
Operating lease not yet commenced, term | 15 years |
Operating lease not yet commenced, option to extend | true |
Operating lease not yet commenced, number of renewal options | Options | 2 |
Operating lease not yet commenced, renewal term | 5 years |
REVENUE RECOGNITION - (Details)
REVENUE RECOGNITION - (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Revenue expected to be recognized | $ 1,582,000 | $ 1,582,000 |
Gift Card Breakage [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 28,000 | 161,000 |
Revenue expected to be recognized | $ 1,200,000 | $ 1,200,000 |
REVENUE RECOGNITION - Estimated
REVENUE RECOGNITION - Estimated Revenues Expected And Change In Contract Liabilities Default (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Estimated future revenues expected to be recognized for performance obligations | |
Revenue expected to be recognized | $ 1,582 |
Change in contract liabilities | |
Balance, December 30, 2018 | 1,998 |
Revenue recognized | (416) |
Balance, March 31, 2019 | 1,582 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Estimated future revenues expected to be recognized for performance obligations | |
Revenue expected to be recognized | $ 159 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-30 | |
Estimated future revenues expected to be recognized for performance obligations | |
Revenue expected to be recognized | $ 144 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-04 | |
Estimated future revenues expected to be recognized for performance obligations | |
Revenue expected to be recognized | $ 137 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-03 | |
Estimated future revenues expected to be recognized for performance obligations | |
Revenue expected to be recognized | $ 132 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-02 | |
Estimated future revenues expected to be recognized for performance obligations | |
Revenue expected to be recognized | $ 122 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Estimated future revenues expected to be recognized for performance obligations | |
Revenue expected to be recognized | $ 888 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Share-based Compensation Arrangement By Share-based Payment Award [Line Items] | ||||
Number of Shares Available for Grant | 132,713 | 132,713 | ||
Allocated Share-based Compensation Expense | $ 140 | $ 120 | $ 223 | $ 167 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 3 months 18 days | |||
Stock Option [Member] | ||||
Share-based Compensation Arrangement By Share-based Payment Award [Line Items] | ||||
Anti-dilutive Securities Excluded From Computation Of Earnings Per Share Amount | 193,000 | 430,000 | ||
Allocated Share-based Compensation Expense | 81 | $ 120 | $ 141 | $ 167 |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | 1,200 | 1,200 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement By Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 59 | $ 82 | ||
Employees and Directors | Stock Option [Member] | ||||
Share-based Compensation Arrangement By Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Employees and Directors | Minimum | Stock Option [Member] | ||||
Share-based Compensation Arrangement By Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||
Employees and Directors | Maximum | Stock Option [Member] | ||||
Share-based Compensation Arrangement By Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Options (Details) - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 30, 2018 | |
Performance Shares Stock Options Other Forms Of Compensation And Common Share Repurchases [Abstract] | ||
Outstanding options at beginning of period (in shares) | 384 | |
Options granted | 157 | |
Options forfeited or expired (in shares) | (23) | |
Outstanding options at end of period (in shares) | 518 | 384 |
Outstanding Weighted Average Price at beginning of period | $ 7.43 | |
Granted Weighted Average Exercise Price | 4.26 | |
Forfeited or Expired Weighted Average Exercise Price | 6.61 | |
Outstanding Weighted Average Price at end of period | $ 6.50 | $ 7.43 |
Options Outstanding Weighted Average Remaining Contractual Term | 6 years | 6 years 8 months 12 days |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock (Details) - Restricted Stock [Member] shares in Thousands | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Number of Awards | |
Granted | shares | 189 |
Vested | shares | (16) |
Unvested at end of period | shares | 173 |
Weighted Average Award Date Fair Value | |
Granted | $ / shares | $ 5 |
Vested | $ / shares | 5 |
Unvested at end of period | $ / shares | $ 5 |
Weighted Average Remaining Contractual Life in Years | |
Balance at end of period | 3 years 7 months 6 days |
STOCK-BASED COMPENSATION - Valu
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Performance Shares Stock Options Other Forms Of Compensation And Common Share Repurchases [Abstract] | ||
Weighted-average fair value of options granted during the period | $ 2.33 | $ 3.39 |
Expected life (in years) | 5 years 6 months | 6 years 1 month 6 days |
Expected dividend | 0.00% | 0.00% |
Expected stock volatility | 50.31% | 46.66% |
Risk-free interest rate | 2.50% | 2.70% |
ASSET IMPAIRMENT, ESTIMATED LEA
ASSET IMPAIRMENT, ESTIMATED LEASE TERMINATION AND OTHER CLOSING COSTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset impairments, net | $ 2 | $ 2 | $ 350 | $ 152 |
Asset impairment, estimated lease termination and other closing costs | 97 | 216 | 504 | 112 |
Lease Termination Charges [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Business exit costs | 71 | 90 | 91 | (343) |
Restaurant Closure Expenses [Member] | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Business exit costs | $ 24 | $ 124 | $ 63 | $ 303 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 30, 2018 |
Fair Value Disclosures [Abstract] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
RESTAURANT ACQUISITIONS - Asset
RESTAURANT ACQUISITIONS - Assets Acquired (Details) | Jun. 03, 2019restaurant | Mar. 04, 2019restaurant | Jun. 30, 2019USD ($)lease | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 30, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Cash paid for acquisition | $ 4,265,000 | |||||
Number of new franchisee leases | lease | 5 | |||||
Liabilities assumed | ||||||
Goodwill | $ 435,000 | $ 435,000 | 435,000 | $ 61,000 | ||
Colorado and Grand Junction Restaurants | ||||||
Business Acquisition [Line Items] | ||||||
Contract purchase price of an acquisition net of related costs | 4,100,000 | 4,100,000 | 4,100,000 | |||
Acquisition costs | 174,000 | |||||
Reduction of goodwill allocation | 600,000 | |||||
Assets acquired: | ||||||
Cash and cash equivalents | 13,000 | 13,000 | 13,000 | |||
Inventory | 176,000 | 176,000 | 176,000 | |||
Property, plant, equipment and leasehold improvements, net | 3,139,000 | 3,139,000 | 3,139,000 | |||
Identifiable intangible assets, net | 981,000 | 981,000 | 981,000 | |||
Total assets acquired | 4,309,000 | 4,309,000 | 4,309,000 | |||
Liabilities assumed | ||||||
Gift card liability | (182,000) | (182,000) | (182,000) | |||
Net assets acquired | 4,127,000 | 4,127,000 | 4,127,000 | |||
Goodwill | 373,000 | 373,000 | 373,000 | |||
Total consideration transferred | 4,500,000 | 4,500,000 | 4,500,000 | |||
Colorado Restaurants | ||||||
Business Acquisition [Line Items] | ||||||
Number of restaurants acquired | restaurant | 4 | |||||
Grand Junction Restaurant | ||||||
Business Acquisition [Line Items] | ||||||
Number of restaurants acquired | restaurant | 1 | |||||
Other individually immaterial acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition costs | 219,000 | |||||
Assets acquired: | ||||||
Cash and cash equivalents | 13,000 | 13,000 | 13,000 | |||
Inventory | 180,000 | 180,000 | 180,000 | |||
Property, plant, equipment and leasehold improvements, net | 326,000 | 326,000 | 326,000 | |||
Identifiable intangible assets, net | 86,000 | 86,000 | 86,000 | |||
Total assets acquired | 605,000 | 605,000 | 605,000 | |||
Liabilities assumed | ||||||
Gift card liability | (68,000) | (68,000) | (68,000) | |||
Net assets acquired | 537,000 | 537,000 | 537,000 | |||
Gain on bargin purchase | (142,000) | |||||
Total consideration transferred | $ 395,000 | $ 395,000 | $ 395,000 |
RESTAURANT ACQUISITIONS - Pro F
RESTAURANT ACQUISITIONS - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Business Combinations [Abstract] | ||||
Pro forma revenues | $ 23,164 | $ 23,508 | $ 43,838 | $ 44,432 |
Pro forma net income (loss) | $ 1,085 | $ 1,870 | $ 1,456 | $ 3,278 |
Basic pro forma net income (loss) per share | $ 0.11 | $ 0.21 | $ 0.14 | $ 0.40 |
Diluted pro forma net income (loss) per share | $ 0.11 | $ 0.21 | $ 0.14 | $ 0.40 |
VARIABLE INTEREST ENTITY (Detai
VARIABLE INTEREST ENTITY (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 18, 2018 |
Mid-Atlantic Restaurants [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Entity Maximum Loss, Exposure Amount | $ 484 | |
Mercury BBQ LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Mercury BBQ, Note Receivable, Interest Rate | 10.00% | |
Mercury BBQ, Note Receivable, Maximum | $ 1,400 | |
Mercury BBQ, Note Receivable, Percentage of Excess Cash Flows to Satisfy Note | 100.00% | |
Mercury BBQ LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Mercury BBQ, Ownership Percentage, Company | 20.00% | |
Clark Championship Products LLC [Member] | Mercury BBQ LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Mercury BBQ, Ownership Percentage, Clark | 80.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | Dec. 30, 2018 | |
Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenues and NAF contributions | $ 432 | $ 412 | $ 820 | $ 794 | |
Accounts receivable from related parties | 318 | $ 318 | $ 271 | ||
Beneficial Owner [Member] | |||||
Related Party Transaction [Line Items] | |||||
Beneficial ownership percentage | 18.20% | ||||
Investor [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenues and NAF contributions | 84 | $ 83 | $ 161 | $ 158 | |
Accounts receivable from related parties | $ 41 | $ 41 | $ 44 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | Jul. 10, 2019USD ($)restaurant | Jun. 30, 2019USD ($) |
Subsequent event line items | ||
Purchase consideration - cash | $ 4,265 | |
Subsequent Event | Arizona Purchased Restaurants | Famous Dave's Ribs, Inc. | ||
Subsequent event line items | ||
Number of restaurants acquired | restaurant | 4 | |
Purchase consideration - cash | $ 1,600 | |
Purchase consideration - liabilities and costs assumed | $ 1,600 |