Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 26, 2022 | Jul. 29, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001324272 | |
Entity Registrant Name | Ruths Hospitality Group, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-25 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 26, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-51485 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 72-1060618 | |
Entity Address, Address Line One | 1030 W. Canton Avenue, Suite 100 | |
Entity Address, City or Town | Winter Park | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32789 | |
City Area Code | 407 | |
Local Phone Number | 333-7440 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | RUTH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,790,585 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 44,866 | $ 92,133 |
Accounts receivable, less allowance for doubtful accounts 2022 - $99; 2021 - $106 | 34,263 | 41,588 |
Inventory | 8,199 | 8,554 |
Prepaid expenses and other | 4,543 | 3,919 |
Total current assets | 91,871 | 146,194 |
Property and equipment, net of accumulated depreciation 2022 - $201,473; 2021 - $195,853 | 135,879 | 121,706 |
Operating lease right of use assets | 192,461 | 173,754 |
Goodwill | 45,549 | 45,549 |
Deferred income taxes | 221 | 0 |
Other assets | 1,653 | 1,547 |
Total assets | 513,812 | 535,979 |
Current liabilities: | ||
Accounts payable | 8,780 | 11,685 |
Accrued payroll | 12,188 | 17,097 |
Accrued expenses | 15,001 | 12,924 |
Deferred revenue | 58,689 | 69,029 |
Current operating lease liabilities | 17,168 | 17,006 |
Other current liabilities | 3,105 | 7,674 |
Total current liabilities | 114,931 | 135,415 |
Long-term debt | 40,000 | 70,000 |
Operating lease liabilities | 215,787 | 192,666 |
Unearned franchise fees | 2,377 | 2,219 |
Deferred income taxes | 0 | 399 |
Other liabilities | 69 | 69 |
Total liabilities | 373,164 | 400,768 |
Commitments and contingencies (Note 11) | 0 | 0 |
Shareholders' equity: | ||
Common stock, par value $.01 per share; 100,000,000 shares authorized, 33,142,303 shares issued and outstanding at June 26, 2022, 33,575,337 shares issued and outstanding at December 26, 2021 | 331 | 336 |
Additional paid-in capital | 62,406 | 68,923 |
Retained earnings | 77,911 | 65,952 |
Treasury stock, at cost; 71,950 shares at June 26, 2022 and December 26, 2021 | 0 | 0 |
Total shareholders' equity | 140,648 | 135,211 |
Total liabilities and shareholders' equity | 513,812 | 535,979 |
Franchise Rights [Member] | ||
Current assets: | ||
Franchise rights, net of accumulated amortization 2022 - $9,902; 2021 - $8,779 | 41,116 | 42,239 |
Lease And Other Intangible Assets [Member] | ||
Current assets: | ||
Franchise rights, net of accumulated amortization 2022 - $9,902; 2021 - $8,779 | $ 5,062 | $ 4,990 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Allowance for doubtful accounts | $ 99 | $ 106 |
Property and equipment, accumulated depreciation | $ 201,473 | $ 195,853 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 33,142,303 | 33,575,337 |
Common stock, shares outstanding (in shares) | 33,142,303 | 33,575,337 |
Treasury stock, shares (in shares) | 71,950 | 71,950 |
Franchise Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 9,902 | $ 8,779 |
Lease And Other Intangible Assets [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 1,763 | $ 1,698 |
Condensed Consolidated Income S
Condensed Consolidated Income Statement (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Revenues: | ||||
Revenue | $ 128,647 | $ 110,910 | $ 254,779 | $ 198,193 |
Costs and expenses: | ||||
Food and beverage costs | 35,962 | 31,607 | 74,573 | 54,528 |
Restaurant operating expenses | 54,241 | 45,400 | 108,880 | 82,983 |
Marketing and advertising | 4,747 | 3,232 | 9,662 | 5,225 |
General and administrative costs | 9,327 | 8,774 | 18,568 | 15,970 |
Depreciation and amortization expenses | 5,135 | 5,084 | 9,928 | 10,147 |
Pre-opening costs | 743 | 159 | 1,625 | 604 |
Loss on legal settlement | 6,000 | 0 | 6,000 | 0 |
Loss on impairment | 0 | 394 | 0 | 394 |
Total costs and expenses | 116,155 | 94,650 | 229,236 | 169,851 |
Operating income | 12,492 | 16,260 | 25,543 | 28,342 |
Other income (expense): | ||||
Interest expense, net | (239) | (1,128) | (563) | (2,431) |
Other | 34 | 36 | 62 | 80 |
Income before income taxes | 12,287 | 15,168 | 25,042 | 25,991 |
Income tax expense | 1,952 | 2,757 | 4,294 | 4,455 |
Net income | $ 10,335 | $ 12,411 | $ 20,748 | $ 21,536 |
Basic earnings per common share (in dollars per share) | $ 0.31 | $ 0.36 | $ 0.62 | $ 0.63 |
Diluted earnings per common share (in dollars per share) | $ 0.31 | $ 0.36 | $ 0.61 | $ 0.62 |
Shares used in computing earnings per common share: | ||||
Basic (in shares) | 33,529,727 | 34,398,251 | 33,559,783 | 34,340,492 |
Diluted (in shares) | 33,866,977 | 34,652,869 | 33,868,651 | 34,620,626 |
Cash dividends declared per common share (in dollars per share) | $ 0.14 | $ 0 | $ 0.26 | $ 0 |
Restaurant Sales [Member] | ||||
Revenues: | ||||
Revenue | $ 120,758 | $ 104,165 | $ 239,472 | $ 185,801 |
Franchise [Member] | ||||
Revenues: | ||||
Revenue | 5,129 | 4,528 | 9,860 | 8,320 |
Service, Other [Member] | ||||
Revenues: | ||||
Revenue | $ 2,760 | $ 2,217 | $ 5,447 | $ 4,072 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 27, 2020 | 34,257 | 72 | |||
Balance at Dec. 27, 2020 | $ 343 | $ 83,424 | $ 23,677 | $ 107,444 | |
Net income (loss) | $ 0 | 0 | 9,125 | $ 0 | 9,125 |
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 128 | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 1 | (1,802) | (1,801) | ||
Stock-based compensation | 1,564 | 1,564 | |||
Balance (in shares) at Mar. 28, 2021 | 34,385 | 72 | |||
Balance at Mar. 28, 2021 | $ 344 | 83,186 | 32,802 | 116,332 | |
Balance (in shares) at Dec. 27, 2020 | 34,257 | 72 | |||
Balance at Dec. 27, 2020 | $ 343 | 83,424 | 23,677 | 107,444 | |
Net income (loss) | 21,536 | ||||
Balance (in shares) at Jun. 27, 2021 | 34,427 | 72 | |||
Balance at Jun. 27, 2021 | $ 344 | 83,753 | 45,213 | $ 0 | 129,310 |
Balance (in shares) at Mar. 28, 2021 | 34,385 | 72 | |||
Balance at Mar. 28, 2021 | $ 344 | 83,186 | 32,802 | 116,332 | |
Net income (loss) | $ 0 | 0 | 12,411 | 12,411 | |
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 42 | 0 | |||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 0 | (618) | 0 | $ 0 | (618) |
Stock-based compensation | $ 0 | 1,184 | 0 | $ 0 | 1,184 |
Balance (in shares) at Jun. 27, 2021 | 34,427 | 72 | |||
Balance at Jun. 27, 2021 | $ 344 | 83,753 | 45,213 | $ 0 | 129,310 |
Balance (in shares) at Dec. 26, 2021 | 33,575 | 72 | |||
Balance at Dec. 26, 2021 | $ 336 | 68,923 | 65,952 | 135,211 | |
Net income (loss) | 10,413 | $ 0 | 10,413 | ||
Cash dividends | $ 0 | 0 | (4,109) | $ 0 | (4,109) |
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 84 | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ 1 | (722) | (721) | ||
Stock-based compensation | 1,754 | 1,754 | |||
Balance (in shares) at Mar. 27, 2022 | 33,659 | 72 | |||
Balance at Mar. 27, 2022 | $ 337 | 69,955 | 72,256 | 142,548 | |
Balance (in shares) at Dec. 26, 2021 | 33,575 | 72 | |||
Balance at Dec. 26, 2021 | $ 336 | 68,923 | 65,952 | 135,211 | |
Net income (loss) | 20,748 | ||||
Balance (in shares) at Jun. 26, 2022 | 33,142 | 72 | |||
Balance at Jun. 26, 2022 | $ 331 | 62,406 | 77,911 | $ 0 | 140,648 |
Balance (in shares) at Mar. 27, 2022 | 33,659 | 72 | |||
Balance at Mar. 27, 2022 | $ 337 | 69,955 | 72,256 | 142,548 | |
Net income (loss) | 0 | 0 | 10,335 | $ 0 | 10,335 |
Cash dividends | $ 0 | 0 | (4,680) | $ 0 | (4,680) |
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 13 | 0 | |||
Shares issued under stock compensation plan net of shares withheld for tax effects | $ (1) | (127) | 0 | $ 0 | (128) |
Stock-based compensation | $ 0 | 2,116 | 0 | $ 0 | 2,116 |
Repurchase of common stock (in shares) | (530) | ||||
Repurchase of common stock | $ (5) | (9,537) | (9,542) | ||
Balance (in shares) at Jun. 26, 2022 | 33,142 | 72 | |||
Balance at Jun. 26, 2022 | $ 331 | $ 62,406 | $ 77,911 | $ 0 | $ 140,648 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Jun. 26, 2022 | Mar. 27, 2022 | |
Cash dividends, per common share (in dollars per share) | $ 0.14 | $ 0.12 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 26, 2022 | Jun. 27, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 20,748 | $ 21,536 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,928 | 10,147 |
Deferred income taxes | (620) | 1,297 |
Non-cash interest expense | 108 | 284 |
Loss on impairment | 0 | 394 |
Stock-based compensation expense | 3,870 | 2,748 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 11,492 | 8,393 |
Inventories | 355 | (518) |
Prepaid expenses and other | (624) | (682) |
Other assets | (213) | 11 |
Accounts payable and accrued expenses | (6,416) | 6,825 |
Deferred revenue | (10,340) | (5,303) |
Operating lease liabilities and assets | 407 | (4,719) |
Other liabilities | (3,689) | 1,591 |
Net cash provided by operating activities | 25,006 | 42,004 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (23,093) | (2,504) |
Net cash used in investing activities | (23,093) | (2,504) |
Cash flows from financing activities: | ||
Principal borrowings on long-term debt | 15,000 | 0 |
Principal repayments on long-term debt | (45,000) | (45,000) |
Repurchase of common stock | (9,542) | 0 |
Cash dividend payments | (8,789) | 0 |
Tax payments from the vesting of restricted stock | (849) | (2,418) |
Deferred financing costs | 0 | (145) |
Net cash used in financing activities | (49,180) | (47,563) |
Net decrease in cash and cash equivalents | (47,267) | (8,063) |
Cash and cash equivalents at beginning of period | 92,133 | 95,402 |
Cash and cash equivalents at end of period | 44,866 | 87,339 |
Supplemental disclosures of cash flow information: | ||
Interest, net of capitalized interest | 431 | 2,199 |
Income taxes | 10,286 | 1,275 |
Noncash investing and financing activities: | ||
Accrued acquisition of property and equipment | $ 749 | $ 1,475 |
Note 1 - The Company and Basis
Note 1 - The Company and Basis of Presentation | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ( 1 The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the "Company") as of June 26, 2022 December 26, 2021 thirteen twenty-six June 26, 2022 June 27, 2021 Ruth’s Hospitality Group, Inc. is a restaurant company focused on the upscale dining segment. Ruth’s Hospitality Group, Inc. operates Company-owned Ruth’s Chris Steak House restaurants and sells franchise rights to Ruth’s Chris Steak House franchisees giving the franchisees the exclusive right to operate similar restaurants in a particular area designated in the franchise agreement. As of June 26, 2022 three The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. The interim results of operations for the periods ended June 26, 2022 June 27, 2021 not may 10 December 26, 2021 The Company operates on a 52 53 December. June 26, 2022 June 27, 2021 thirteen second 2022 second 2021 2022 2021 52 COVID- 19 In March 2020 2019 19 June 26, 2022 19 19 19 19 19 may 19 19 19, may Following increases in the number of cases of COVID- 19 19 may 19 19 Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reporting of revenue and expenses during the periods presented to prepare these condensed consolidated financial statements in conformity with GAAP. Significant items subject to such estimates and assumptions include the carrying amounts of property and equipment, goodwill, franchise rights, operating lease right of use assets and obligations related to gift cards, income taxes, operating lease liabilities, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. |
Note 2 - Fair Value Measurement
Note 2 - Fair Value Measurements | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | ( 2 The carrying amounts of cash and cash equivalents, receivables, prepaid expenses, accounts payable and accrued expenses and other current liabilities are reasonable estimates of their fair values due to their short duration. Borrowings classified as long-term debt as of June 26, 2022 December 26, 2021 June 26, 2022 2 The Company did not June 26, 2022 The Company’s non-financial assets measured at fair value on a non-recurring basis as of December 26, 2021 Fair Value as of December 26, 2021 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses on Impairment Long-lived assets $ — $ — $ — $ 1,766 |
Note 3 - Leases
Note 3 - Leases | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | ( 3 The Company leases restaurant facilities and equipment. The Company determines whether an arrangement is or contains a lease at contract inception. The Company’s leases are all classified as operating leases, which are included as operating lease right of use assets (“ROU assets”) and operating lease liabilities in the Company’s condensed consolidated balance sheet. Operating lease liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. ROU assets are measured based on the operating lease liabilities adjusted for lease incentives, initial indirect costs and impairments of operating lease assets. Minimum lease payments include only the fixed lease components of the agreements, as well as any variable rate payments that depend on an index, which are measured initially using the index at the lease commencement dates. To determine the present value of future minimum lease payments, the Company estimates incremental borrowing rates based on the information available at the lease commencement dates, or amendment date for contract modifications. The Company estimates its incremental borrowing rates by determining the synthetic credit rating of the Company using quantitative and qualitative analysis and then adjusting the synthetic credit rating to a collateralized credit rating. A spread curve is then developed using the U.S. corporate bond yield curve of the same credit rating and the U.S. Treasury curve to determine the rate for different terms. The expected lease terms include options to extend when it is reasonably certain the Company will exercise the options up to a total term of 20 years. Total lease cost is expensed on a straight-line basis over the life of a lease. Additionally, incentives received from landlords used to fund leasehold improvements reduce the ROU assets related to those leases and are amortized as reductions to lease expense over the lives of the leases. Variable lease payments that do not 12 On April 10, 2020, April 8, 2020 19 April 8, 2020 19 not may 1 842 2 Due to the impacts of the COVID- 19 As of June 26, 2022 1 not June 26, 2022 The components of lease expense are as follows (in thousands): 13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended Classification June 26, 2022 June 27, 2021 June 26, 2022 June 27, 2021 Operating lease cost Restaurant operating expenses and general and administrative costs $ 6,302 $ 4,125 $ 12,401 $ 8,476 Variable lease cost Restaurant operating expenses and general and administrative costs 3,378 4,315 6,684 7,260 Total lease cost $ 9,680 $ 8,440 $ 19,085 $ 15,736 As of June 26, 2022 Operating Leases 2022, excluding the first twenty-six weeks ended June 26, 2022 $ 18,326 2023 26,110 2024 25,900 2025 24,902 2026 23,657 Thereafter 220,812 Total future minimum rental commitments 339,707 Imputed interest (106,752 ) $ 232,955 Supplemental cash flow information related to operating leases was as follows (in thousands): 26 Weeks Ended 26 Weeks Ended June 26, 2022 June 27, 2021 Cash paid for amounts included in the measurement of lease liabilities $ 12,532 $ 10,760 Right-of-use assets obtained in exchange for lease obligations $ 29,997 $ 1,096 Reduction of right-of-use assets and lease obligations from lease modifications and terminations $ — $ (8,572 ) Additionally, as of June 26, 2022 12 |
Note 4 - Revenue
Note 4 - Revenue | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | ( 4 In the following tables, the Company’s revenue is disaggregated by major component for each category on the consolidated statements of operations (in thousands). Thirteen Weeks Ended June 26, 2022: Domestic International Total Revenue Restaurant sales $ 120,758 $ — $ 120,758 Franchise income 4,476 653 5,129 Other operating income 2,760 — 2,760 Total revenue $ 127,994 $ 653 $ 128,647 Thirteen Weeks Ended June 27, 2021: Domestic International Total Revenue Restaurant sales $ 104,165 $ — $ 104,165 Franchise income 4,106 422 4,528 Other operating income 2,217 — 2,217 Total revenue $ 110,488 $ 422 $ 110,910 Twenty-Six Weeks Ended June 26, 2022: Domestic International Total Revenue Restaurant sales $ 239,472 $ — $ 239,472 Franchise income 8,578 1,282 9,860 Other operating income 5,447 — 5,447 Total revenue $ 253,497 $ 1,282 $ 254,779 Twenty-Six Weeks Ended June 27, 2021: Domestic International Total Revenue Restaurant sales $ 185,801 $ — $ 185,801 Franchise income 7,434 886 8,320 Other operating income 4,072 — 4,072 Total revenue $ 197,307 $ 886 $ 198,193 The following table provides information about receivables and deferred revenue liabilities from contracts with customers (in thousands). June 26, December 26, 2022 2021 Accounts receivable, less allowance for doubtful accounts 2022 - $ 99 106 $ 12,757 $ 24,179 Deferred revenue $ 58,689 $ 69,029 Unearned franchise fees $ 2,377 $ 2,219 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the first twenty-six 2022 Deferred Unearned Revenue Franchise Fees Balance at December 26, 2021 $ 69,029 $ 2,219 Decreases in the beginning balance from gift card redemptions (22,729 ) — Increases due to proceeds received, excluding amounts recognized during the period 12,494 — Decreases due to recognition of franchise development and opening fees — (142 ) Increases due to proceeds received for franchise development and opening fees — 300 Other (105 ) — Balance at June 26, 2022 $ 58,689 $ 2,377 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the first twenty-six 2021 Deferred Unearned Revenue Franchise Fees Balance at December 27, 2020 $ 59,030 $ 2,186 Decreases in the beginning balance from gift card redemptions (18,380 ) — Increases due to proceeds received, excluding amounts recognized during the period 13,065 — Decreases due to recognition of franchise development and opening fees — (116 ) Increases due to proceeds received for franchise development and opening fees — — Other 12 — Balance at June 27, 2021 $ 53,727 $ 2,070 |
Note 5 - Long-term Debt
Note 5 - Long-term Debt | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | ( 5 Long-term debt consists of the following (in thousands): June 26, December 26, 2022 2021 Senior Credit Facility: Revolving credit facility $ 40,000 $ 70,000 Less current maturities — — $ 40,000 $ 70,000 As of June 26, 2022 June 26, 2022 The amended and restated credit agreement the Company entered into on October 18, 2021 may October 18, 2026 The Credit Agreement contains customary representations and affirmative and negative covenants (including limitations on indebtedness and liens) as well as financial covenants, as described below, requiring a minimum fixed coverage charge ratio as defined in the Credit Agreement (“Fixed Charge Coverage Ratio”) limiting the Company’s actual leverage ratio as defined in the Credit Agreement (“Maximum Consolidated Leverage Ratio”). The October 2021 1.25:1.00 no 3.00:1.00. October 2021 not 2.50:1.00 not may may Interest rate margins and the fee for the unused commitment are calculated based on the Maximum Consolidated Leverage Ratio, and at the Company’s option, revolving loans may (i) LIBOR, plus an applicable margin, or (ii) the highest of (a) the rate publicly announced by Wells Fargo as its prime rate, (b) the average published federal funds rate in effect on such day plus 0.50% and (c) one The applicable margin is based on the Company’s Maximum Consolidated Leverage Ratio, ranging from (a) 1.50% to 2.25% above the applicable LIBOR rate or (b) 0.50% to 1.25% above the applicable Base Rate. As of June 26, 2022, |
Note 6 - Shareholders' Equity
Note 6 - Shareholders' Equity | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | ( 6 Equity In October 2019, 19 third 2021 December 27, 2021. first twenty-six 2022, June 26, 2022 second October 2019, As a result of the impacts to our business arising from the COVID- 19 first 2022, Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2022 January 6, 2022 $ 0.12 February 3, 2022 $ 4,109 February 17, 2022 May 6, 2022 $ 0.14 May 19, 2022 $ 4,680 June 2, 2022 Subsequent to the end of the second 2022, September 2, 2022 August 19, 2022. Outstanding unvested restricted stock is not June 26, 2022 June 26, 2022 June 26, 2022 |
Note 7 - Segment Information
Note 7 - Segment Information | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | ( 7 The Company has two not June 26, 2022 three not Not No not No Segment information related to the Company’s two 13 Weeks Ended 26 Weeks Ended June 26, June 27, June 26, June 27, 2022 2021 2022 2021 Revenues: Company-owned steakhouse restaurants $ 122,417 $ 105,474 $ 242,409 $ 188,167 Franchise operations 5,129 4,528 9,860 8,320 Unallocated other revenue and revenue discounts 1,101 908 2,510 1,706 Total revenues $ 128,647 $ 110,910 $ 254,779 $ 198,193 Segment profits: Company-owned steakhouse restaurants $ 32,214 $ 28,467 $ 58,956 $ 50,656 Franchise operations 5,129 4,528 9,860 8,320 Total segment profit 37,343 32,995 68,816 58,976 Unallocated operating income 1,101 908 2,510 1,706 Marketing and advertising expenses (4,747 ) (3,232 ) (9,662 ) (5,225 ) General and administrative costs (9,327 ) (8,774 ) (18,568 ) (15,970 ) Depreciation and amortization expenses (5,135 ) (5,084 ) (9,928 ) (10,147 ) Pre-opening costs (743 ) (159 ) (1,625 ) (604 ) Loss on settlement (6,000 ) — (6,000 ) — Loss on impairment — (394 ) — (394 ) Interest expense, net (239 ) (1,128 ) (563 ) (2,431 ) Other income 34 36 62 80 Income before income tax expense $ 12,287 $ 15,168 $ 25,042 $ 25,991 Capital expenditures: Company-owned steakhouse restaurants $ 9,634 $ 2,054 $ 16,541 $ 2,413 Corporate assets 3,409 91 6,552 91 Total capital expenditures $ 13,043 $ 2,145 $ 23,093 $ 2,504 June 26, December 26, 2022 2021 Total assets: Company-owned steakhouse restaurants $ 417,088 $ 404,929 Franchise operations 2,712 2,801 Corporate assets - unallocated 94,012 128,249 Total assets $ 513,812 $ 535,979 |
Note 8 - Stock-based Employee C
Note 8 - Stock-based Employee Compensation | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | ( 8 On May 15, 2018, 2018 "2018 2005 "2005 May 30, 2018 2018 2005 2018 2005 May 15, 2018 June 26, 2022 2005 June 26, 2022 2018 June 26, 2022 2018 first twenty-six 2022 174,661performance first twenty-six 2022 2023, 2024, 2025 2027. 229,463 2025, 100% first twenty-six 2022 2021 |
Note 9 - Income Taxes
Note 9 - Income Taxes | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | ( 9 Income tax expense differs from amounts computed by applying the federal statutory income tax rate to income from continuing operations before income taxes as follows: 26 Weeks Ended June 26, June 27, 2022 2021 Income tax expense at statutory rates 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.0 % 4.5 % Federal employment tax credits (10.0 %) (9.7 %) Non-deductible executive compensation 2.2 % 2.0 % Stock-based compensation (0.0 %) (0.6 %) Other (0.0 %) (0.1 %) Effective tax rate 17.2 % 17.1 % The employment-related tax credits line in the effective tax rate schedule above is comprised mainly of federal FICA tip credits which the Company utilizes to reduce its periodic federal income tax expense. A restaurant company employer may The Company files consolidated and separate income tax returns in the United States federal jurisdiction and many state jurisdictions, respectively. With few exceptions, the Company is no 2017. |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | ( 10 The following table sets forth the computation of earnings per share (amounts in thousands, except share and per share amounts): 13 Weeks Ended 26 Weeks Ended June 26, June 27, June 26, June 27, 2022 2021 2022 2021 Net income $ 10,335 $ 12,411 $ 20,748 $ 21,536 Shares: Weighted average number of common shares outstanding - basic 33,529,727 34,398,251 33,559,783 34,340,492 Weighted average number of common shares outstanding - diluted 33,866,977 34,652,869 33,868,651 34,620,626 Basic earnings per common share $ 0.31 $ 0.36 $ 0.62 $ 0.63 Diluted earnings per common share $ 0.31 $ 0.36 $ 0.61 $ 0.62 Diluted earnings per share for the second 2022 no second 2021 first twenty-six 2022 2021 no |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 6 Months Ended |
Jun. 26, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | ( 11 The Company is subject to various claims, possible legal actions and other matters arising in the normal course of business. Management does not The legislation and regulations related to tax and unclaimed property matters are complex and subject to varying interpretations by both government authorities and taxpayers. The Company remits a variety of taxes and fees to various governmental authorities, including excise taxes, property taxes, sales and use taxes, and payroll taxes. The taxes and fees remitted by the Company are subject to review and audit by the applicable governmental authorities which could assert claims for additional assessments. Although management believes that its tax positions are reasonable, various taxing authorities may may The Company is subject to unclaimed or abandoned property (escheat) laws which require the Company to turn over to certain state governmental authorities the property of others held by the Company that has been unclaimed for specified periods of time. The Company is subject to audit of its escheatment practices by individual U.S. states. On February 26, 2018, September 2, 2020, two No RIC1804127 July 29, 2021, September 17, 2021, October 19, 2021, may May 11, 2022 June 8, 2022, one The Company currently buys a majority of its beef from two suppliers. Although there are a limited number of beef suppliers, management believes that other suppliers could provide similar product on comparable terms. A change in suppliers, however, could cause supply shortages and a possible loss of sales, which would affect operating results adversely. The COVID- 19 may may Our restaurant operations could be further disrupted if large numbers of our employees are diagnosed with COVID- 19. 19, may Our suppliers could be adversely impacted by the COVID- 19 19, Additional government regulations or legislation as a result of COVID- 19 may may 19 The Company could experience other potential impacts as a result of the COVID- 19 not not may 19 not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 26, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The accompanying unaudited condensed consolidated financial statements of Ruth’s Hospitality Group, Inc. and its subsidiaries (collectively, the "Company") as of June 26, 2022 December 26, 2021 thirteen twenty-six June 26, 2022 June 27, 2021 Ruth’s Hospitality Group, Inc. is a restaurant company focused on the upscale dining segment. Ruth’s Hospitality Group, Inc. operates Company-owned Ruth’s Chris Steak House restaurants and sells franchise rights to Ruth’s Chris Steak House franchisees giving the franchisees the exclusive right to operate similar restaurants in a particular area designated in the franchise agreement. As of June 26, 2022 three The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. The interim results of operations for the periods ended June 26, 2022 June 27, 2021 not may 10 December 26, 2021 The Company operates on a 52 53 December. June 26, 2022 June 27, 2021 thirteen second 2022 second 2021 2022 2021 52 |
Impact of Unusual Risks and Uncertainties [Policy Text Block] | COVID- 19 In March 2020 2019 19 June 26, 2022 19 19 19 19 19 may 19 19 19, may Following increases in the number of cases of COVID- 19 19 may 19 19 |
Use of Estimates, Policy [Policy Text Block] | Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reporting of revenue and expenses during the periods presented to prepare these condensed consolidated financial statements in conformity with GAAP. Significant items subject to such estimates and assumptions include the carrying amounts of property and equipment, goodwill, franchise rights, operating lease right of use assets and obligations related to gift cards, income taxes, operating lease liabilities, incentive compensation, workers’ compensation and medical insurance. Actual results could differ from those estimates. |
Note 2 - Fair Value Measureme_2
Note 2 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Notes Tables | |
Fair Value Measurements, Nonrecurring [Table Text Block] | Fair Value as of December 26, 2021 Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Losses on Impairment Long-lived assets $ — $ — $ — $ 1,766 |
Note 3 - Leases (Tables)
Note 3 - Leases (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | 13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended Classification June 26, 2022 June 27, 2021 June 26, 2022 June 27, 2021 Operating lease cost Restaurant operating expenses and general and administrative costs $ 6,302 $ 4,125 $ 12,401 $ 8,476 Variable lease cost Restaurant operating expenses and general and administrative costs 3,378 4,315 6,684 7,260 Total lease cost $ 9,680 $ 8,440 $ 19,085 $ 15,736 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Operating Leases 2022, excluding the first twenty-six weeks ended June 26, 2022 $ 18,326 2023 26,110 2024 25,900 2025 24,902 2026 23,657 Thereafter 220,812 Total future minimum rental commitments 339,707 Imputed interest (106,752 ) $ 232,955 |
Schedule of Supplemental Cash Flow Related to Operating Lease Cost [Table Text Block] | 26 Weeks Ended 26 Weeks Ended June 26, 2022 June 27, 2021 Cash paid for amounts included in the measurement of lease liabilities $ 12,532 $ 10,760 Right-of-use assets obtained in exchange for lease obligations $ 29,997 $ 1,096 Reduction of right-of-use assets and lease obligations from lease modifications and terminations $ — $ (8,572 ) |
Note 4 - Revenue (Tables)
Note 4 - Revenue (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Thirteen Weeks Ended June 26, 2022: Domestic International Total Revenue Restaurant sales $ 120,758 $ — $ 120,758 Franchise income 4,476 653 5,129 Other operating income 2,760 — 2,760 Total revenue $ 127,994 $ 653 $ 128,647 Thirteen Weeks Ended June 27, 2021: Domestic International Total Revenue Restaurant sales $ 104,165 $ — $ 104,165 Franchise income 4,106 422 4,528 Other operating income 2,217 — 2,217 Total revenue $ 110,488 $ 422 $ 110,910 Twenty-Six Weeks Ended June 26, 2022: Domestic International Total Revenue Restaurant sales $ 239,472 $ — $ 239,472 Franchise income 8,578 1,282 9,860 Other operating income 5,447 — 5,447 Total revenue $ 253,497 $ 1,282 $ 254,779 Twenty-Six Weeks Ended June 27, 2021: Domestic International Total Revenue Restaurant sales $ 185,801 $ — $ 185,801 Franchise income 7,434 886 8,320 Other operating income 4,072 — 4,072 Total revenue $ 197,307 $ 886 $ 198,193 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | June 26, December 26, 2022 2021 Accounts receivable, less allowance for doubtful accounts 2022 - $ 99 106 $ 12,757 $ 24,179 Deferred revenue $ 58,689 $ 69,029 Unearned franchise fees $ 2,377 $ 2,219 Deferred Unearned Revenue Franchise Fees Balance at December 26, 2021 $ 69,029 $ 2,219 Decreases in the beginning balance from gift card redemptions (22,729 ) — Increases due to proceeds received, excluding amounts recognized during the period 12,494 — Decreases due to recognition of franchise development and opening fees — (142 ) Increases due to proceeds received for franchise development and opening fees — 300 Other (105 ) — Balance at June 26, 2022 $ 58,689 $ 2,377 Deferred Unearned Revenue Franchise Fees Balance at December 27, 2020 $ 59,030 $ 2,186 Decreases in the beginning balance from gift card redemptions (18,380 ) — Increases due to proceeds received, excluding amounts recognized during the period 13,065 — Decreases due to recognition of franchise development and opening fees — (116 ) Increases due to proceeds received for franchise development and opening fees — — Other 12 — Balance at June 27, 2021 $ 53,727 $ 2,070 |
Note 5 - Long-term Debt (Tables
Note 5 - Long-term Debt (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | June 26, December 26, 2022 2021 Senior Credit Facility: Revolving credit facility $ 40,000 $ 70,000 Less current maturities — — $ 40,000 $ 70,000 |
Note 6 - Shareholders' Equity (
Note 6 - Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Notes Tables | |
Schedule of Dividends Payable [Table Text Block] | Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2022 January 6, 2022 $ 0.12 February 3, 2022 $ 4,109 February 17, 2022 May 6, 2022 $ 0.14 May 19, 2022 $ 4,680 June 2, 2022 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Notes Tables | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | 13 Weeks Ended 26 Weeks Ended June 26, June 27, June 26, June 27, 2022 2021 2022 2021 Revenues: Company-owned steakhouse restaurants $ 122,417 $ 105,474 $ 242,409 $ 188,167 Franchise operations 5,129 4,528 9,860 8,320 Unallocated other revenue and revenue discounts 1,101 908 2,510 1,706 Total revenues $ 128,647 $ 110,910 $ 254,779 $ 198,193 Segment profits: Company-owned steakhouse restaurants $ 32,214 $ 28,467 $ 58,956 $ 50,656 Franchise operations 5,129 4,528 9,860 8,320 Total segment profit 37,343 32,995 68,816 58,976 Unallocated operating income 1,101 908 2,510 1,706 Marketing and advertising expenses (4,747 ) (3,232 ) (9,662 ) (5,225 ) General and administrative costs (9,327 ) (8,774 ) (18,568 ) (15,970 ) Depreciation and amortization expenses (5,135 ) (5,084 ) (9,928 ) (10,147 ) Pre-opening costs (743 ) (159 ) (1,625 ) (604 ) Loss on settlement (6,000 ) — (6,000 ) — Loss on impairment — (394 ) — (394 ) Interest expense, net (239 ) (1,128 ) (563 ) (2,431 ) Other income 34 36 62 80 Income before income tax expense $ 12,287 $ 15,168 $ 25,042 $ 25,991 Capital expenditures: Company-owned steakhouse restaurants $ 9,634 $ 2,054 $ 16,541 $ 2,413 Corporate assets 3,409 91 6,552 91 Total capital expenditures $ 13,043 $ 2,145 $ 23,093 $ 2,504 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | June 26, December 26, 2022 2021 Total assets: Company-owned steakhouse restaurants $ 417,088 $ 404,929 Franchise operations 2,712 2,801 Corporate assets - unallocated 94,012 128,249 Total assets $ 513,812 $ 535,979 |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 26 Weeks Ended June 26, June 27, 2022 2021 Income tax expense at statutory rates 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 4.0 % 4.5 % Federal employment tax credits (10.0 %) (9.7 %) Non-deductible executive compensation 2.2 % 2.0 % Stock-based compensation (0.0 %) (0.6 %) Other (0.0 %) (0.1 %) Effective tax rate 17.2 % 17.1 % |
Note 10 - Earnings Per Share (T
Note 10 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 26, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 13 Weeks Ended 26 Weeks Ended June 26, June 27, June 26, June 27, 2022 2021 2022 2021 Net income $ 10,335 $ 12,411 $ 20,748 $ 21,536 Shares: Weighted average number of common shares outstanding - basic 33,529,727 34,398,251 33,559,783 34,340,492 Weighted average number of common shares outstanding - diluted 33,866,977 34,652,869 33,868,651 34,620,626 Basic earnings per common share $ 0.31 $ 0.36 $ 0.62 $ 0.63 Diluted earnings per common share $ 0.31 $ 0.36 $ 0.61 $ 0.62 |
Note 1 - The Company and Basi_2
Note 1 - The Company and Basis of Presentation (Details Textual) | Aug. 05, 2022 | Jun. 26, 2022 |
Entity Operated Units [Member] | ||
Number of Restaurants | 74 | |
Franchised Units [Member] | ||
Number of Restaurants | 74 | |
Ruths Chris Steak House [Member] | ||
Number of Restaurants | 151 | |
Ruths Chris Steak House [Member] | Entity Operated Units [Member] | ||
Number of Restaurants | 74 | |
Ruths Chris Steak House [Member] | Entity Operated Units [Member] | Worcester, MA and Long Beach, CA [Member] | Subsequent Event [Member] | ||
Number of Restaurants | 2 | |
Ruths Chris Steak House [Member] | Contractual Agreement [Member] | ||
Number of Restaurants | 3 | |
Ruths Chris Steak House [Member] | Franchised Units [Member] | ||
Number of Restaurants | 74 | |
Ruths Chris Steak House [Member] | Franchised Units [Member] | International [Member] | ||
Number of Restaurants | 23 |
Note 2 - Fair Value Measureme_3
Note 2 - Fair Value Measurements (Details Textual) $ in Thousands | Jun. 26, 2022 USD ($) |
Assets, Fair Value Disclosure, Total | $ 938 |
Note 2 - Fair Value Measureme_4
Note 2 - Fair Value Measurements - Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Fair Value | $ 938 | |
Fair Value, Nonrecurring [Member] | Long Lived Assets [Member] | ||
Fair Value | $ 0 | |
Significant Other Observable Inputs (Level 3) | 0 | |
Total Losses on Impairment | 1,766 | |
Fair Value, Nonrecurring [Member] | Long Lived Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value | $ 0 |
Note 3 - Leases (Details Textua
Note 3 - Leases (Details Textual) $ in Millions | 6 Months Ended |
Jun. 26, 2022 USD ($) | |
Lessee, Operating Lease, Option to Extend | 20 |
Number of Leases Amended | 1 |
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 13 years 8 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.40% |
Number of Leases Executed | 3 |
Operating Lease, Initial Direct Cost Expense, over Term | $ 13.2 |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract (Year) | 20 years |
Maximum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Year) | 20 years |
Note 3 - Leases - Schedule of C
Note 3 - Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Operating lease cost | $ 6,302 | $ 4,125 | $ 12,401 | $ 8,476 |
Variable lease cost | 3,378 | 4,315 | 6,684 | 7,260 |
Total lease cost | $ 9,680 | $ 8,440 | $ 19,085 | $ 15,736 |
Note 3 - Leases - Schedule of M
Note 3 - Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Jun. 26, 2022 USD ($) |
2022, excluding the first twenty-six weeks ended June 26, 2022 | $ 18,326 |
2023 | 26,110 |
2024 | 25,900 |
2025 | 24,902 |
2026 | 23,657 |
Thereafter | 220,812 |
Total future minimum rental commitments | 339,707 |
Imputed interest | (106,752) |
Operating Lease, Liability, Total | $ 232,955 |
Note 3 - Leases - Schedule of S
Note 3 - Leases - Schedule of Supplemental Cash Flow Related to Operating Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 26, 2022 | Jun. 27, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | $ 12,532 | $ 10,760 |
Right-of-use assets obtained in exchange for lease obligations | 29,997 | 1,096 |
Reduction of right-of-use assets and lease obligations from lease modifications and terminations | $ 0 | $ (8,572) |
Note 4 - Revenue - Summary of D
Note 4 - Revenue - Summary of Disaggregated Revenue by Major Component for Each Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Revenue | $ 128,647 | $ 110,910 | $ 254,779 | $ 198,193 |
Restaurant Sales [Member] | ||||
Revenue | 120,758 | 104,165 | 239,472 | 185,801 |
Franchise [Member] | ||||
Revenue | 5,129 | 4,528 | 9,860 | 8,320 |
Service, Other [Member] | ||||
Revenue | 2,760 | 2,217 | 5,447 | 4,072 |
UNITED STATES | ||||
Revenue | 127,994 | 110,488 | 253,497 | 197,307 |
UNITED STATES | Restaurant Sales [Member] | ||||
Revenue | 120,758 | 104,165 | 239,472 | 185,801 |
UNITED STATES | Franchise [Member] | ||||
Revenue | 4,476 | 4,106 | 8,578 | 7,434 |
UNITED STATES | Service, Other [Member] | ||||
Revenue | 2,760 | 2,217 | 5,447 | 4,072 |
Non-US [Member] | ||||
Revenue | 653 | 422 | 1,282 | 886 |
Non-US [Member] | Restaurant Sales [Member] | ||||
Revenue | 0 | 0 | 0 | 0 |
Non-US [Member] | Franchise [Member] | ||||
Revenue | 653 | 422 | 1,282 | 886 |
Non-US [Member] | Service, Other [Member] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Note 4 - Revenue - Summary of R
Note 4 - Revenue - Summary of Receivables and Deferred Revenue Liabilities From Contracts With Customers (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 26, 2022 | Jun. 27, 2021 | Dec. 26, 2021 | Dec. 27, 2020 | |
Accounts receivable, less allowance for doubtful accounts 2022 - $99; 2021 - $106 | $ 12,757 | $ 24,179 | ||
Deferred revenue | 58,689 | $ 53,727 | 69,029 | $ 59,030 |
Unearned franchise fees | 2,377 | 2,070 | $ 2,219 | $ 2,186 |
Decreases in the beginning balance from gift card redemptions | (22,729) | (18,380) | ||
Increases due to proceeds received, excluding amounts recognized during the period | 12,494 | 13,065 | ||
Decreases due to recognition of franchise development and opening fees | (142) | (116) | ||
Increases due to proceeds received for franchise development and opening fees | 300 | |||
Other | $ (105) | $ 12 |
Note 4 - Revenue - Summary of_2
Note 4 - Revenue - Summary of Receivables and Deferred Revenue Liabilities From Contracts With Customers (Details) (Parentheticals) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Allowance for doubtful accounts | $ 99 | $ 106 |
Note 5 - Long-term Debt (Detail
Note 5 - Long-term Debt (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 18, 2021 | Jun. 26, 2022 | |
Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | ||
Debt Instrument, Covenant, Minimum Liquidity | $ 25 | |
Debt Instrument, Maturity Date | Oct. 18, 2026 | |
Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | Minimum [Member] | ||
Fixed Charge Coverage Ratio | 1.25% | |
Consolidated Leverage Ratio for Restricted Junior Payments | 2.50% | |
Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | Maximum [Member] | ||
Consolidated Leverage Ratio | 3% | |
Senior Credit Facility [Member] | ||
Long-Term Line of Credit, Total | $ 40 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 95.3 | |
Long-Term Debt, Weighted Average Interest Rate, at Point in Time | 1.90% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |
Letter of Credit [Member] | ||
Letters of Credit Outstanding, Amount | $ 4.7 | |
Long-Term Debt, Weighted Average Interest Rate, at Point in Time | 3.70% | |
Letter of Credit [Member] | Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10 | |
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1% | |
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Minimum [Member] | Base Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Maximum [Member] | Base Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 140 | |
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | Subject To Satisfaction Of Certain Conditions And Lender Consent [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 200 | |
Swingline Loans [Member] | Amended And Restated Credit Agreement [Member] | Wells Fargo Bank National Association And Other Lenders [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 |
Note 5 - Long-term Debt - Debt
Note 5 - Long-term Debt - Debt Disclosure (Details) - USD ($) $ in Millions | Jun. 26, 2022 | Dec. 26, 2021 |
Revolving credit facility | $ 40 | $ 70 |
Long-Term Debt, Excluding Current Maturities, Total | $ 40 | $ 70 |
Note 6 - Shareholders' Equity_2
Note 6 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 29, 2021 | Jun. 26, 2022 | Aug. 05, 2022 | May 06, 2022 | Jan. 06, 2022 | Oct. 31, 2019 | |
Dividends Payable, Amount Per Share (in dollars per share) | $ 0.14 | $ 0.12 | ||||
Dividends Payable | $ 4,680 | $ 4,109 | ||||
Restricted Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 729,694 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 79,143 | |||||
Performance Shares [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 205,769 | |||||
Quarterly Dividend Declared [Member] | ||||||
Dividends Payable, Amount Per Share (in dollars per share) | $ 0.14 | |||||
Dividends Payable | $ 4,800 | |||||
The 2019 Share Repurchase Plan [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ 60,000 | |||||
Stock Repurchased and Retired During Period, Shares (in shares) | 887,515 | 529,734 | ||||
Stock Repurchased and Retired During Period, Value | $ 16,600 | $ 9,500 | ||||
Stock Repurchased and Retired During Period, Average Price Per Share (in dollars per share) | $ 18.69 | $ 18.01 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 15,400 | |||||
The 2022 Stock Purchase Agreement [Member] | Subsequent Event [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ 60,000 |
Note 6 - Shareholders' Equity -
Note 6 - Shareholders' Equity - Schedule of Dividends Declared and Payable (Details) - USD ($) $ / shares in Units, $ in Thousands | May 06, 2022 | Jan. 06, 2022 |
Dividend Per Share (in dollars per share) | $ 0.14 | $ 0.12 |
Record Date | May 19, 2022 | Feb. 03, 2022 |
Total Amount | $ 4,680 | $ 4,109 |
Payment Date | Jun. 02, 2022 | Feb. 17, 2022 |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | 6 Months Ended |
Jun. 26, 2022 | |
Number of Operating Segments | 2 |
Entity Operated Units [Member] | |
Number of Restaurants | 74 |
Operated Under Contractual Agreements [Member] | |
Number of Restaurants | 3 |
Franchised Units [Member] | |
Number of Restaurants | 74 |
Note 7 - Segment Information -
Note 7 - Segment Information - Segment Information, Operating Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Revenue | $ 128,647 | $ 110,910 | $ 254,779 | $ 198,193 |
Segment profits | 37,343 | 32,995 | 68,816 | 58,976 |
Unallocated operating income | 1,101 | 908 | 2,510 | 1,706 |
Marketing and advertising expenses | (4,747) | (3,232) | (9,662) | (5,225) |
General and administrative costs | (9,327) | (8,774) | (18,568) | (15,970) |
Depreciation and amortization expenses | (5,135) | (5,084) | (9,928) | (10,147) |
Pre-opening costs | (743) | (159) | (1,625) | (604) |
Loss on settlement | (6,000) | 0 | (6,000) | 0 |
Loss on impairment | 0 | (394) | 0 | (394) |
Interest expense, net | (239) | (1,128) | (563) | (2,431) |
Other income | 34 | 36 | 62 | 80 |
Income before income taxes | 12,287 | 15,168 | 25,042 | 25,991 |
Capital expenditures | 13,043 | 2,145 | 23,093 | 2,504 |
Operating Segments [Member] | Company Owned Steakhouse Restaurants [Member] | ||||
Revenue | 122,417 | 105,474 | 242,409 | 188,167 |
Segment profits | 32,214 | 28,467 | 58,956 | 50,656 |
Capital expenditures | 9,634 | 2,054 | 16,541 | 2,413 |
Operating Segments [Member] | Franchise Operations [Member] | ||||
Revenue | 5,129 | 4,528 | 9,860 | 8,320 |
Segment profits | 5,129 | 4,528 | 9,860 | 8,320 |
Segment Reconciling Items [Member] | ||||
Revenue | 1,101 | 908 | 2,510 | 1,706 |
Corporate, Non-Segment [Member] | ||||
Capital expenditures | $ 3,409 | $ 91 | $ 6,552 | $ 91 |
Note 7 - Segment Information _2
Note 7 - Segment Information - Segment Information, Assets (Details) - USD ($) $ in Thousands | Jun. 26, 2022 | Dec. 26, 2021 |
Assets | $ 513,812 | $ 535,979 |
Operating Segments [Member] | Company Owned Steakhouse Restaurants [Member] | ||
Assets | 417,088 | 404,929 |
Operating Segments [Member] | Franchise Operations [Member] | ||
Assets | 2,712 | 2,801 |
Corporate, Non-Segment [Member] | ||
Assets | $ 94,012 | $ 128,249 |
Note 8 - Stock-based Employee_2
Note 8 - Stock-based Employee Compensation (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||
May 15, 2018 | Jun. 26, 2022 | Jun. 27, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 425,365 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | May 30, 2018 | ||
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 729,694 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 250,704 | ||
Performance Shares [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 205,769 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 174,661 | ||
Omnibus Incentive Plan 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,500,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 981,185 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 1,643,633 | ||
Share-Based Payment Arrangement, Expense | $ 3.9 | $ 2.7 | |
Omnibus Incentive Plan 2018 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares) | 94,341 | ||
Omnibus Incentive Plan 2018 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares) | 94,341 | ||
Omnibus Incentive Plan 2018 [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares) | 229,463 | ||
Omnibus Incentive Plan 2018 [Member] | Share Based Compensation Award Tranche Four [Member] | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares) | 7,220 | ||
Omnibus Incentive Plan 2018 [Member] | Performance Shares [Member] | Share Based Compensation Award Tranche Four [Member] | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares) | 174,661 | ||
Long Term Equity Incentive Plan 2005 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in shares) | 1,649,394 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares of Common Stock Issuable upon Exercise (in shares) | 0 | ||
Long Term Equity Incentive Plan 2005 [Member] | Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 33,420 |
Note 9 - Income Taxes - Schedul
Note 9 - Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 6 Months Ended | |
Jun. 26, 2022 | Jun. 27, 2021 | |
Income tax expense at statutory rates | 21% | 21% |
State income taxes, net of federal benefit | 4% | 4.50% |
Federal employment tax credits | (10.00%) | (9.70%) |
Non-deductible executive compensation | 2.20% | 2% |
Stock-based compensation | (0.00%) | (0.60%) |
Other | (0.00%) | (0.10%) |
Effective tax rate | 17.20% | 17.10% |
Note 10 - Earnings Per Share (D
Note 10 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 26, 2022 | Jun. 27, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 45,683 | 0 | 22,714 | 347 |
Note 10 - Earnings Per Share -
Note 10 - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 26, 2022 | Mar. 27, 2022 | Jun. 27, 2021 | Mar. 28, 2021 | Jun. 26, 2022 | Jun. 27, 2021 | |
Net income | $ 10,335 | $ 10,413 | $ 12,411 | $ 9,125 | $ 20,748 | $ 21,536 |
Basic (in shares) | 33,529,727 | 34,398,251 | 33,559,783 | 34,340,492 | ||
Diluted (in shares) | 33,866,977 | 34,652,869 | 33,868,651 | 34,620,626 | ||
Basic earnings per common share (in dollars per share) | $ 0.31 | $ 0.36 | $ 0.62 | $ 0.63 | ||
Diluted earnings per common share (in dollars per share) | $ 0.31 | $ 0.36 | $ 0.61 | $ 0.62 |
Note 11 - Commitments and Con_2
Note 11 - Commitments and Contingencies (Details Textual) $ in Millions | May 13, 2022 USD ($) | Jun. 26, 2022 |
Number of Suppliers | 2 | |
Class Action Litigations [Member] | ||
Litigation Settlement, Amount Awarded to Other Party | $ 6 |