Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 29, 2019 | Feb. 20, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Entity Registrant Name | Ruth’s Hospitality Group, Inc. | ||
Entity Central Index Key | 0001324272 | ||
Trading Symbol | RUTH | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 663,759,591 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 000-51485 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 72-1060618 | ||
Entity Address, Address Line One | 1030 W. Canton Avenue | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Winter Park | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 32789 | ||
City Area Code | 407 | ||
Local Phone Number | 333-7440 | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | The information required by Part III of Annual Report on Form 10-K, to the extent not set forth herein, is incorporated herein by reference to the registrant’s Proxy Statement for the 2020 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the close of the registrant’s fiscal year. | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 29,315,052 | ||
Unvested Restricted Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 891,585 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 5,567 | $ 5,062 | $ 4,051 | $ 3,788 |
Accounts receivable, less allowance for doubtful accounts 2019 - $241; 2018 - $322 | 23,769 | 19,476 | ||
Inventory | 9,623 | 9,296 | ||
Prepaid expenses and other | 3,052 | 2,528 | ||
Total current assets | 42,011 | 36,362 | ||
Property and equipment, net of accumulated depreciation 2019 - $173,845; 2018 - $160,153 | 142,962 | 125,991 | ||
Operating lease right of use assets | 206,358 | |||
Goodwill | 45,549 | 36,522 | ||
Intangible assets, net of accumulated amortization | 54,365 | |||
Deferred income taxes | 4,929 | 5,353 | ||
Other assets | 702 | 604 | ||
Total assets | 496,876 | 254,613 | 242,096 | |
Current liabilities: | ||||
Accounts payable | 13,598 | 10,273 | ||
Accrued payroll | 17,303 | 19,475 | ||
Accrued expenses | 10,574 | 10,535 | ||
Deferred revenue | 52,856 | 48,370 | 42,596 | |
Current operating lease liabilities | 14,313 | |||
Other current liabilities | 4,237 | 6,619 | ||
Total current liabilities | 112,881 | 95,272 | ||
Long-term debt | 64,000 | 41,000 | ||
Operating lease liabilities | 223,292 | |||
Deferred rent | 23,692 | |||
Unearned franchise fees | 2,489 | 2,680 | ||
Other liabilities | 69 | 1,837 | ||
Total liabilities | 402,731 | 164,481 | ||
Commitments and contingencies (Note 11) | ||||
Shareholders' equity: | ||||
Common stock, par value $.01 per share; 100,000,000 shares authorized, 28,418,691 shares issued and outstanding at December 29, 2019, 29,268,776 shares issued and outstanding at December 30, 2018 | 284 | 293 | ||
Additional paid-in capital | 40,462 | 61,819 | ||
Retained earnings | 53,399 | 28,020 | ||
Treasury stock, at cost; 71,950 shares at December 29, 2019 and December 30, 2018 | ||||
Total shareholders' equity | 94,145 | 90,132 | $ 79,504 | $ 79,009 |
Total liabilities and shareholders' equity | 496,876 | 254,613 | ||
Franchise Rights [Member] | ||||
Current assets: | ||||
Intangible assets, net of accumulated amortization | 49,916 | 44,919 | ||
Other Intangible Assets [Member] | ||||
Current assets: | ||||
Intangible assets, net of accumulated amortization | $ 4,449 | $ 4,862 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Allowance for doubtful accounts | $ 241 | $ 322 |
Property and equipment, accumulated depreciation | 173,845 | $ 160,153 |
Finite-lived intangible assets, accumulated amortization | $ 5,840 | |
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) | 28,418,691 | 29,268,776 |
Common stock, shares outstanding (in shares) | 28,418,691 | 29,268,776 |
Treasury stock, shares (in shares) | 71,950 | 71,950 |
Franchise Rights [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 4,401 | $ 2,299 |
Other Intangible Assets [Member] | ||
Finite-lived intangible assets, accumulated amortization | $ 1,439 | $ 1,395 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Revenues | $ 135,033 | $ 103,009 | $ 110,243 | $ 119,741 | $ 127,159 | $ 99,015 | $ 109,635 | $ 116,526 | $ 468,026 | $ 452,334 | $ 414,823 |
Costs and expenses: | |||||||||||
Marketing and advertising | 15,432 | 16,639 | 12,724 | ||||||||
General and administrative costs | 34,643 | 37,253 | 32,700 | ||||||||
Depreciation and amortization expenses | 21,354 | 18,538 | 14,995 | ||||||||
Pre-opening costs | 1,824 | 1,875 | 2,013 | ||||||||
Loss on impairment | 3,904 | ||||||||||
Total costs and expenses | 415,565 | 400,675 | 368,141 | ||||||||
Operating income | 18,400 | 5,571 | 11,646 | 16,843 | 18,713 | 4,854 | 11,705 | 16,388 | 52,461 | 51,659 | 46,682 |
Other income (expense): | |||||||||||
Interest expense, net | (737) | (638) | (417) | (405) | (486) | (470) | (403) | (380) | (2,197) | (1,739) | (821) |
Other | 82 | 18 | 13 | 2 | (42) | (65) | 22 | 12 | 115 | (73) | 53 |
Income from continuing operations before income tax expense | 17,745 | 4,951 | 11,242 | 16,440 | 18,185 | 4,319 | 11,324 | 16,020 | 50,379 | 49,847 | 45,914 |
Income tax expense | 3,287 | 423 | 1,933 | 2,529 | 3,375 | 727 | 1,763 | 2,384 | 8,173 | 8,247 | 15,669 |
Income from continuing operations | 14,458 | 4,528 | 9,309 | 13,911 | 14,810 | 3,592 | 9,561 | 13,636 | 42,206 | 41,600 | 30,245 |
Income (loss) from discontinued operations, net of income taxes | 50 | 9 | 12 | 10 | 80 | (108) | |||||
Net income | $ 14,458 | $ 4,528 | $ 9,309 | $ 13,911 | $ 14,860 | $ 3,601 | $ 9,573 | $ 13,646 | $ 42,206 | $ 41,680 | $ 30,137 |
Basic earnings (loss) per common share: | |||||||||||
Continuing operations (in dollars per share) | $ 0.51 | $ 0.16 | $ 0.32 | $ 0.48 | $ 0.50 | $ 0.12 | $ 0.32 | $ 0.46 | $ 1.46 | $ 1.40 | $ 1 |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | |||||||||
Basic earnings per share | 0.51 | 0.16 | 0.32 | 0.48 | 0.50 | 0.12 | 0.32 | 0.46 | 1.46 | 1.41 | 0.99 |
Diluted earnings (loss) per common share: | |||||||||||
Continuing operations (in dollars per share) | 0.50 | 0.16 | 0.31 | 0.47 | 0.49 | 0.12 | 0.32 | 0.45 | 1.44 | 1.37 | 0.98 |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | |||||||||
Diluted earnings per share | 0.50 | 0.16 | 0.31 | 0.47 | 0.49 | 0.12 | 0.32 | 0.45 | $ 1.44 | $ 1.38 | $ 0.97 |
Shares used in computing earnings (loss) per common share: | |||||||||||
Basic (in shares) | 28,998,382 | 29,659,461 | 30,346,999 | ||||||||
Diluted (in shares) | 29,376,980 | 30,273,841 | 30,916,364 | ||||||||
Cash dividends declared per common share | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.52 | $ 0.44 | $ 0.36 |
Restaurant Sales [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | $ 441,361 | $ 427,433 | $ 390,434 | ||||||||
Franchise Income [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 17,879 | 17,919 | 17,545 | ||||||||
Other Operating Income [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 8,786 | 6,982 | 6,844 | ||||||||
Food and Beverage [Member] | |||||||||||
Costs and expenses: | |||||||||||
Cost of goods sold | 127,597 | 120,112 | 116,361 | ||||||||
Restaurant Operating Expenses [Member] | |||||||||||
Costs and expenses: | |||||||||||
Cost of goods sold | $ 214,715 | $ 206,258 | $ 185,444 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] | Treasury Stock [Member] |
Balance at Dec. 25, 2016 | $ 79,009 | $ 305 | $ 95,266 | $ (16,562) | |
Balance (in shares) at Dec. 25, 2016 | 30,549 | 72 | |||
Net income | 30,137 | 30,137 | |||
Cash dividends | (11,383) | (11,383) | |||
Repurchase of common stock | (23,888) | $ (12) | (23,876) | ||
Repurchase of common stock (in shares) | (1,169) | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | (1,133) | $ 3 | (1,136) | ||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 266 | ||||
Stock-based compensation | 6,763 | 6,763 | |||
Balance at Dec. 31, 2017 | 79,504 | $ 296 | 77,017 | 2,191 | |
Balance (in shares) at Dec. 31, 2017 | 29,646 | 72 | |||
Net income | 41,680 | 41,680 | |||
Cash dividends | (13,527) | (13,527) | |||
Repurchase of common stock | (18,539) | $ (7) | (18,532) | ||
Repurchase of common stock (in shares) | (689) | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | (4,310) | $ 3 | (4,313) | ||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 312 | ||||
Stock-based compensation | 7,647 | 7,647 | |||
Cumulative effect of a change in accounting principle | (2,324) | (2,324) | |||
Balance at Dec. 30, 2018 | 90,132 | $ 293 | 61,819 | 28,020 | |
Balance (in shares) at Dec. 30, 2018 | 29,269 | 72 | |||
Net income | 42,206 | 42,206 | |||
Cash dividends | (15,566) | (15,566) | |||
Repurchase of common stock | (25,818) | $ (12) | (25,806) | ||
Repurchase of common stock (in shares) | (1,149) | ||||
Shares issued under stock compensation plan net of shares withheld for tax effects | (3,704) | $ 3 | (3,707) | ||
Shares issued under stock compensation plan net of shares withheld for tax effects (in shares) | 299 | ||||
Stock-based compensation | 8,157 | 8,157 | |||
Cumulative effect of a change in accounting principle | (1,261) | (1,261) | |||
Balance at Dec. 29, 2019 | $ 94,145 | $ 284 | $ 40,462 | $ 53,399 | |
Balance (in shares) at Dec. 29, 2019 | 28,419 | 72 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 42,206 | $ 41,680 | $ 30,137 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,354 | 18,538 | 14,995 |
Deferred income taxes | 837 | 341 | 4,977 |
Non-cash interest expense | 86 | 82 | 119 |
Debt issuance costs written-off | 16 | ||
Gain on the disposal of property and equipment, net | 51 | 55 | |
Loss on impairment | 3,904 | ||
Amortization of below market lease | 79 | 7 | |
Stock-based compensation expense | 8,157 | 7,647 | 6,763 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 343 | 2,151 | (836) |
Inventories | (52) | (608) | (710) |
Prepaid expenses and other | (417) | 151 | (231) |
Other assets | (150) | (42) | 482 |
Accounts payable and accrued expenses | (2,624) | 2,590 | 5,718 |
Deferred revenue | 3,761 | 5,383 | 3,692 |
Deferred rent | 1,462 | 19 | |
Lease liabilities | 608 | ||
Other liabilities | (1,250) | (1,215) | (359) |
Net cash provided by operating activities | 72,910 | 78,294 | 68,693 |
Cash flows from investing activities: | |||
Acquisition of property and equipment | (31,668) | (31,907) | (21,255) |
Acquisition of franchise restaurant, net of cash acquired | (18,613) | (35,357) | |
Net cash used in investing activities | (50,281) | (31,907) | (56,612) |
Cash flows from financing activities: | |||
Principal borrowings on long-term debt | 54,000 | 33,000 | 70,000 |
Principal repayments on long-term debt | (31,000) | (42,000) | (45,000) |
Repurchase of common stock | (25,818) | (18,539) | (23,888) |
Cash dividend payments | (15,566) | (13,527) | (11,383) |
Tax payments from the vesting of restricted stock and option exercises | (3,720) | (4,342) | (2,079) |
Proceeds from the exercise of stock options | 16 | 32 | 945 |
Deferred financing costs | (36) | 0 | (413) |
Net cash used in financing activities | (22,124) | (45,376) | (11,818) |
Net increase in cash and cash equivalents | 505 | 1,011 | 263 |
Cash and cash equivalents at beginning of year | 5,062 | 4,051 | 3,788 |
Cash and cash equivalents at end of year | 5,567 | 5,062 | 4,051 |
Supplemental disclosures of cash flow information: | |||
Interest, net of capitalized interest | 1,988 | 1,658 | 667 |
Income taxes | 8,265 | 8,467 | 10,680 |
Noncash investing and financing activities: | |||
Accrued acquisition of property and equipment | $ 4,374 | $ 2,390 | $ 3,012 |
The Company, Organization and D
The Company, Organization and Description of Business | 12 Months Ended |
Dec. 29, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company, Organization and Description of Business | (1) The Company, Organization and Description of Business Ruth’s Hospitality Group, Inc. and its subsidiaries (the Company) operate Ruth’s Chris Steak House restaurants and sell 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. At December 29, 2019, there were 159 Ruth’s Chris Steak House restaurants, of which 83 were Company-owned, 73 were franchisee-owned, and three locations were operating under contractual agreements. All Company-owned restaurants are located in the United States. The franchisee-owned restaurants include 21 international restaurants in Aruba, Canada, China, Hong Kong, Indonesia, Japan, Mexico, Singapore and Taiwan. Two new Company-owned Ruth’s Chris Steak House restaurants opened during 2019, in Columbus, OH and Somerville, MA. Franchisees opened one new restaurant during 2019, in Chongqing, China. Subsequent to the end of fiscal year 2019, a Company-owned Ruth’s Chris Steak House was relocated in Washington D.C. On July 29, 2019, the Company completed the acquisition of substantially all of the assets of three franchisee-owned Ruth’s Chris Steak House restaurants located in Philadelphia, PA, King of Prussia, PA and Garden City, NY (the “MBR Franchise Acquisition”) for a cash purchase price of $18.6 million. The acquisition was funded with borrowings under the Company’s senior credit facility. The results of operations, financial position and cash flows of the MBR Franchise Acquisition are included in the Company’s consolidated financial statements as of the date of the acquisition. For additional information, see Note 3. On December 12, 2017, the Company completed the acquisition of substantially all of the assets of six franchisee-owned Ruth’s Chris Steak House restaurants located in Hawaii (the “Hawaiian Restaurants”) for a cash purchase price of $35.4 million. The acquisition was funded with borrowings under the Company’s senior credit facility. The following table summarizes the changes in the number of Company-owned Ruth’s Chris Steak House restaurants and franchisee-owned restaurants during the thirteen and fifty-two weeks ended December 29, 2019. 13 Weeks Ending 52 Weeks Ending December 29, 2019 December 29, 2019 Ruth's Chris Steak House Company Franchised Managed Total Company Franchised Managed Total Beginning of period 81 73 3 157 78 75 3 156 Acquired 0 0 0 0 3 0 0 3 Sold 0 0 0 0 0 3 0 3 New 2 0 0 2 2 1 0 3 Closed 0 0 0 0 0 0 0 0 End of period 83 73 3 159 83 73 3 159 % of total 52 % 46 % 2 % 100 % 52 % 46 % 2 % 100 % |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Basis of Presentation The Company utilizes a 52- or 53-week reporting period ending on the last Sunday of December. The period ended December 31, 2017 (fiscal year 2017) had a 53-week reporting period. The periods ended December 29, 2019 (fiscal year 2019) and December 30, 2018 (fiscal year 2018) each had a 52-week reporting period. The consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles and include the financial statements of Ruth’s Hospitality Group, Inc. and its wholly owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (b) Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use asset. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The Company adopted this new lease standard on December 31, 2018. See Note 4 for further information about our transition to this new lease standard. In June 2016 the FASB issued ASU 2016-13, Financial Instruments – Credit Losses. This update requires immediate recognition of management’s estimates of current expected credit losses. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2016-13 is not expected to have a significant impact on the Company’s ongoing financial reporting. In January 2017 the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Impairment Test for Goodwill. This update eliminated the calculation of implied goodwill fair value. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2017-04 is not expected to have a significant impact on the Company’s ongoing financial reporting. In August 2018 the FASB issued ASU 2018-13, Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This update eliminated the calculation of implied goodwill fair value. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2018-13 is not expected to have a significant impact on the Company’s ongoing financial reporting. In August 2018 the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This update aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2018-15 is not expected to have a significant impact on the Company’s ongoing financial reporting. In August 2018 the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. This update clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2018-19 is not expected to have a significant impact on the Company’s ongoing financial reporting. In December 2019 the FASB issued ASU 2019-12, Income Taxes (Topic 740). This update modifies Topic 740 to simplify the accounting for income taxes. This update is effective for the Company in the first quarter of fiscal year 2021. The adoption of ASU 2019-12 is not expected to have a significant impact on the Company’s ongoing financial reporting. (c) Contingencies The Company recognizes liabilities for contingencies when there is an exposure that indicates it is both probable that an asset has been impaired or that a liability has been incurred and that the amount of impairment or loss can be reasonably estimated. (d) Cash Equivalents For purposes of the consolidated financial statements, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. (e) Accounts Receivable Accounts receivable consists primarily of bank credit cards receivable, landlord contributions, franchise royalty payments receivable, receivables from gift card sales, banquet billings receivable and other miscellaneous receivables. (f) Allowance for Doubtful Accounts The Company performs a specific review of account balances and applies historical collection experience to the various aging categories of receivable balances in establishing an allowance. (g) Inventories Inventories consist of food, beverages and supplies and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. (h) Property and Equipment, net Property and equipment are stated at cost. Expenditures for improvements and replacements are capitalized and maintenance and repairs are charged to expense. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the lease term or the estimated useful lives of the assets. The estimated useful lives for assets are as follows: Building and Building Improvements, 20 to 40 years; Equipment, 5 years; Furniture and Fixtures, 5 to 7 years; Computer Equipment, 3 to 5 years; and Leasehold Improvements, 5 to 20 years (limited by the lease term). (i) Goodwill and Franchise Rights Goodwill and intangible assets acquired in a business combination that are determined to have an indefinite useful life are not amortized, but reviewed for impairment at least annually in accordance with the provisions of FASB Accounting Standards Committee (ASC) Topic 350, Intangibles-Goodwill and Other. The annual testing date for determining whether goodwill and other intangible assets are impaired is the last day of the Company’s 48 th Franchise rights acquired prior to 2008 in a business combination that are determined to have an indefinite useful life are not amortized, but are reviewed for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. The Company allows and expects these franchisees to renew agreements indefinitely ensuring consistent cash flows. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Franchise rights acquired after 2007 are no longer considered to have indefinite useful lives and are amortized in accordance with FASB ASC Topic 350 and reviewed for impairment under ASC Topic 360-10, Property, Plant and Equipment – Impairment and Disposal of Long-Lived Assets (Topic 360-10). (j) Impairment or Disposal of Long-Lived Assets In accordance with Topic 360-10, long lived assets, such as property and equipment, operating lease right-of-use (ROU) assets and purchased intangibles subject to amortization, are reviewed for impairment on a restaurant-by-restaurant basis whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the financial statement carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Key assumptions in the determination of fair value are the future after-tax cash flows of the restaurant and discount rate. The after-tax cash flows incorporate reasonable sales growth and margin improvement assumptions that would be expected by a franchisee in the determination of a purchase price for the restaurant. Estimates of future cash flows are highly subjective judgments and can be significantly impacted by changes in the business or economic conditions. The discount rate used in the fair value calculations is our estimate of the required rate of return that a market participant would expect to receive when purchasing a similar restaurant or groups of restaurants and the related long-lived assets. The discount rate incorporates rates of returns for historical refranchising market transactions and is commensurate with the risks and uncertainty inherent in the forecasted cash flows. We account for exit or disposal activities, including restaurant closures, in accordance with Topic 360-10. Such costs include the cost of disposing of the assets as well as other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. For restaurants operated under operating leases, on the date we commit to a plan to either abandon the related ROU asset or sublease the underlying asset, we evaluate the ROU asset for potential impairment and determine the go-forward accounting based on the requirements in ASC Topic 842, Leases. (k) Deferred Financing Costs Deferred financing costs represent fees paid in connection with obtaining bank and other long-term financing. The Company paid $36 thousand in financing costs in fiscal year 2019, $413 thousand in financing costs in fiscal year 2017 and no financing costs during fiscal year 2018. The Company amortizes deferred financing costs using a method that approximates the effective interest method over the term of the related financing. Amortization of deferred financing costs was $86 thousand in fiscal year 2019, $82 thousand in fiscal year 2018 and $119 thousand in fiscal year 2017 and is included in interest expense on the consolidated statements of income. (l) Revenues Revenues are derived principally from food and beverage sales. The Company does not rely on any major customers as a source of revenue. Restaurant Sales. Restaurant sales consist of food and beverage sales by Company-owned restaurants. Revenue from restaurant sales is recognized when food and beverage products are sold. Restaurant sales are presented net of sales taxes and discounts. Gratuities remitted by customers for the benefit of restaurant staff are not included in either revenues or operating expenses. Restaurant sales are primarily influenced by total operating weeks in the relevant period and comparable restaurant sales growth. Total operating weeks is the total number of Company-owned restaurants multiplied by the number of weeks each is in operation during the relevant period. Comparable restaurant sales growth reflects the change in year-over-year or quarter-over-quarter, as applicable, sales for the comparable restaurants. The Company defines comparable restaurants to be those Company-owned restaurants in operation for not less than eighteen months prior to the beginning of the fiscal year. Franchise Income. Franchise income includes (1) royalty income and (2) franchise and development fees charged to franchisees. Franchise royalties consist of 5.0% of adjusted gross sales from each franchisee-owned restaurant. In addition, our more recent franchise agreements require up to a 1.0% of adjusted gross sales advertising fee to be paid by the franchisee, which is applied to national advertising expenditures. Effective in fiscal year 2018, both the 5.0% royalty and the sales based advertising fees are included in franchise income on the consolidated statements of income. Prior to the adoption of ASC Topic 606, Revenue from Contracts with Customers (Topic 606), the Company recorded advertising contributions from franchisees as a liability against which specific marketing and advertising costs were charged, which reduced the Company’s marketing expense on the consolidated statements of income. Effective with fiscal year 2018, the Company recognizes franchise development and opening fees over the life of the applicable franchise agreements. Prior to the adoption of Topic 606, the Company recognized franchise development and opening fees when a franchisee-owned restaurant opened. Other Operating Income. Other operating income consists primarily of breakage income associated with gift cards, and also includes fees earned from management agreements, banquet-related guarantee and services revenue and other incidental guest fees. The Company’s accounting method for recognizing gift card breakage revenue is the redemption method. Under the redemption method, gift card breakage revenue is recognized and the gift card liability is derecognized for unredeemed gift cards in proportion to actual gift card redemptions based on historical breakage rates. Deferred Revenue. Deferred revenue primarily includes (1) the Company’s liability for gift cards that have been sold but not yet redeemed and (2) the Company’s liability for franchise development and opening fees that will be recognized over the life of the applicable franchise agreements. When gift cards are redeemed (typically within five years), the Company recognizes restaurant sales and reduces the deferred revenue liability. A portion of gift cards redeemed are used by customers to pay for sales taxes and gratuities, neither of which results in Company restaurant sales. Company issued gift cards redeemed at franchisee-owned restaurants result in royalty based franchise income and reduce the deferred revenue liability. The expected redemption value of gift cards represents the full consideration received for all gift cards issued less the amount the Company has recognized as other operating income for gift cards that are not expected to be redeemed (gift card breakage). The Company recognized gift card breakage revenue of $3.9 million in fiscal year 2019 and $2.9 million in fiscal years 2018 and 2017. (m) International Revenues The Company currently has 21 international franchisee-owned restaurants in Aruba, Canada, China, Hong Kong, Indonesia, Japan, Mexico, Singapore and Taiwan. In accordance with its franchise agreements relating to these international restaurants, the Company receives royalty revenue from these franchisees in U.S. dollars. Franchise fee revenues from international restaurants were $2.9 million, $2.7 million and $2.9 million in fiscal years 2019, 2018 and 2017, respectively. (n) Rent Certain of the Company’s operating leases contain predetermined fixed escalations of the minimum rent during the term of the lease. For these leases, the Company recognizes the related rent expense on a straight-line basis over the life of the lease and records the difference between amounts charged to operations and amounts paid as an operating lease right-of-use (ROU) asset. Additionally, certain of the Company’s operating leases contain clauses that provide additional contingent rent based on a percentage of sales greater than certain specified target amounts. The Company recognizes contingent rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of that target is considered probable. (o) Marketing and Advertising Marketing and advertising expenses in the accompanying consolidated statements of income include expenses related to advertising, online initiatives, traditional public relations and consumer research. Advertising expenses were $6.3 million, $6.8 million and $6.7 million in fiscal years 2019, 2018 and 2017, respectively. Advertising costs are expensed as incurred. (p) Insurance Liability The Company maintains various policies for workers’ compensation, employee health, general liability and property damage. Pursuant to those policies, the Company is responsible for losses up to certain limits. The Company records liabilities for the estimated exposure for aggregate losses below those limits. The recorded liabilities are based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liabilities are not discounted and are based on a number of assumptions and factors, including historical trends, actuarial assumptions and economic conditions. Independent actuaries are used to develop estimates of the workers’ compensation, general and employee health care liabilities. (q) Stock-Based Compensation The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718, Compensation—Stock Compensation, (Topic 718). Stock-based compensation cost includes compensation cost for all share-based payments granted based on the grant date fair value estimated in accordance with the provisions of Topic 718. Compensation cost is recognized on a straight-line basis over the requisite service period of each award. The Company does not estimate forfeitures when recognizing compensation expense. Forfeitures are accounted for as they occur. (r) Pre-Opening Costs Pre-opening costs incurred with the opening of new restaurants are expensed as incurred. These costs include rent expense, wages, benefits, travel and lodging for the training and opening management teams, and food, beverage and other restaurant operating expenses incurred prior to a restaurant opening for business. (s) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company applies the provisions of FASB ASC Topic 740, Income Taxes (Topic 740). Topic 740 requires that a position taken or expected to be taken in a tax return be recognized (or derecognized) in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company’s continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. (t) Discontinued Operations The Company accounts for its closed restaurants in accordance with the provisions of FASB ASC Topic 360, Property, Plant and Equipment. For fiscal years 2019, 2018 and 2017, all impairment charges, loss on disposal and remeasurement of lease liabilities along with restaurant sales, direct recurring costs and expenses and income taxes attributable to restaurants classified as discontinued operations have been aggregated to a single caption entitled loss from discontinued operations, net of tax benefit in the consolidated statements of income for all periods presented. (u) Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net income by the diluted weighted average shares of common stock outstanding during each period. Potentially dilutive securities include shares of non-vested stock awards. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Stock awards are excluded from the calculation of diluted earnings per share in the event they are antidilutive. |
Franchisee Acquisition
Franchisee Acquisition | 12 Months Ended |
Dec. 29, 2019 | |
MBR Franchise Acquisition Restaurants [Member] | |
Franchisee Acquisition | (3) Franchisee Acquisition On July 29, 2019, the Company completed the acquisition of substantially all of the assets of the MBR Franchise Acquisition restaurants for a cash purchase price of $18.6 million. The acquisition was funded with borrowings under the Company’s senior credit facility. The results of operations, financial position and cash flows of the MBR Franchise Acquisition restaurants are included in the Company’s consolidated financial statements as of the date of the acquisition. The assets and liabilities of the MBR Franchise Acquisition restaurants were recorded at their respective fair values as of the date of the acquisition. The Company confirmed the fair values using a combination of internal analysis and third party valuations. The Company finalized the fair values recorded for the MBR Franchise Acquisition during the fourth quarter of fiscal year 2019 and no adjustments were required. The allocation of purchase price is as follows (in thousands): Balances at December 29, 2019 Current assets $ 387 Property and equipment 2,398 Goodwill 9,027 Franchise Rights 7,100 Other intangibles 475 Total assets acquired $ 19,387 Current liabilities 725 Other liabilities 43 Total liabilities assumed $ 768 Net assets acquired $ 18,619 The goodwill for the MBR Franchise Acquisition is all deductible for federal income tax purposes. Goodwill was measured as the excess of the consideration transferred over the net of the amounts assigned to identifiable assets acquired and the liabilities assumed as of the acquisition date, and includes the economic value of expected future cash flows not assigned to identifiable assets, efficiencies from combining the operations of the acquired restaurants with other Company-owned restaurants and an assembled workforce. The goodwill for the MBR Franchise Acquisition, which is included with the goodwill for the reporting unit identified as the steakhouse operating segment, will be reviewed for potential impairment annually or more frequently if triggering events are detected. The determination of the acquisition date fair value of the franchise and territory rights was based on a multi-period excess earnings approach and involved projected after-royalty future earnings discounted using a market discount rate, from which a contributory asset charge for net working capital, property and equipment and assembled workforce was subtracted. The reacquired franchise and territory rights will be amortized over a weighted average term of 8.2 years, which reflects the remaining terms of the related franchise agreements, not including renewal options. Property and equipment will be depreciated over a period of two to twenty years. As a result of the acquisition and related integration efforts, we incurred expenses of approximately $536 thousand during the fiscal year 2019, which are included in general and administrative expenses in the Company’s consolidated statements of income. Pro-forma financial information reflecting the impact of the MBR Franchise Acquisition for periods prior to the acquisition are not presented due to the immaterial impact of the financial results of the MBR Franchise Acquisition on the Company’s consolidated financial statements. |
Leases
Leases | 12 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
Leases | (4) Leases Effective December 31, 2018, the Company adopted Topic 842 using the modified retrospective method for all leases in effect at the date of adoption. This new lease standard requires a lessee to recognize on the balance sheet a liability for future lease obligations and a corresponding operating lease ROU asset. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The Company chose the effective date as its initial date of adoption. Consequently, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carry forward prior conclusions regarding lease identification, lease classification and initial indirect costs for existing leases. The Company did not elect the hindsight practical expedient. In addition to the recognition of a liability for future lease obligations and a corresponding ROU asset, upon adoption, the Company: - Derecognized existing deferred rent and tenant allowance balances totaling $25.4 million. - Derecognized existing assets related to below market leases of $758 thousand. - Derecognized existing deferred gains on previous sale-leaseback transactions of $1.8 million. The deferred gain associated with this change in accounting was recognized through opening retained earnings as of December 31, 2018. - Recognized a retained earnings adjustment of $3.5 million related to the write-off of the ROU asset from a previously impaired Ruth’s Chris Steak House restaurant. - Recognized $413 thousand of additional deferred income taxes from the previously mentioned adoption related equity adjustments. The Company did not experience material changes to either the consolidated statements of income or the consolidated statements of cash flows due to the adoption of Topic 842. The following table summarizes the impacts of adopting Topic 842 on the Company’s condensed consolidated balance sheet as of December 31, 2018 (in thousands): December 30, Adjustments Due 2018 to the Adoption December 31, As Reported of ASC 842 2018 Assets Current assets: Cash and cash equivalents $ 5,062 $ — $ 5,062 Accounts receivable, less allowance for doubtful accounts 19,476 812 20,288 Inventory 9,296 — 9,296 Prepaid expenses and other 2,528 — 2,528 Total current assets 36,362 812 37,174 Property and equipment, net of accumulated depreciation 125,991 — 125,991 Operating lease right of use assets — 166,040 166,040 Goodwill 36,522 — 36,522 Franchise rights, net of accumulated amortization 44,919 — 44,919 Other intangibles, net of accumulated amortization 4,862 (758 ) 4,104 Deferred income taxes 5,353 413 5,766 Other assets 604 — 604 Total assets $ 254,613 $ 166,507 $ 421,120 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 10,273 $ — $ 10,273 Accrued payroll 19,475 — 19,475 Accrued expenses 10,535 — 10,535 Deferred revenue 48,370 — 48,370 Current operating lease liabilities — 16,707 16,707 Other current liabilities 6,619 (1,698 ) 4,921 Total current liabilities 95,272 15,009 110,281 Long-term debt 41,000 — 41,000 Operating lease liabilities — 178,256 178,256 Deferred rent 23,692 (23,692 ) — Unearned franchise fees 2,680 — 2,680 Other liabilities 1,837 (1,805 ) 32 Total liabilities 164,481 167,768 332,249 Commitments and contingencies (Note 11) — — — Shareholders' equity: Common stock, par value $.01 per share; 100,000,000 shares authorized, 29,268,776 shares issued and outstanding at December 30, 2018 293 — 293 Additional paid-in capital 61,819 — 61,819 Retained earnings 28,020 (1,261 ) 26,759 Treasury stock, at cost; 71,950 shares at December 30, 2018 — — — Total shareholders' equity 90,132 (1,261 ) 88,871 Total liabilities and shareholders' equity $ 254,613 $ 166,507 $ 421,120 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 ROU assets and operating lease liabilities in the Company’s 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 secured borrowing rates based on the information available at the lease commencement dates, or the transition date at adoption. The Company estimates its rates by starting with the interest rate on its senior revolving credit facility and makes adjustments to that rate to reflect the amount that it would pay to borrow the amount of the lease payments on a collateralized basis over similar terms. The Company validates such rates by determining its credit rating, adjusting the rating to capture payment terms on a collateralized basis and establishing a yield curve based on such credit rating. 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 . For financial reporting purposes, minimum rent payments are expensed on a straight-line basis over the lives of the leases. Additionally, incentives received from landlords used to fund leasehold improvements reduce the ROU assets related to those leases and are amortized as reductions to rent expense over the lives of the leases. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. At December 29, 2019, all of the Company-owned Ruth’s Chris Steak House restaurants operated in leased premises, with the exception of the restaurant in Ft. Lauderdale, FL, which is an owned property, and the restaurants in Anaheim, CA, Lake Mary, FL Princeton, NJ and South Barrington, IL, which operate on leased land. The leases generally provide for minimum annual rental payments with scheduled minimum rent payments increases during the terms of the leases. Certain leases also provide for rent deferral during the initial term, lease incentives in the form of tenant allowances to fund leasehold improvements, and/or contingent rent provisions based on the sales at the underlying restaurants. Most of the Company’s restaurant leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The weighted average term and discount rate for operating leases is 13.4 years and 5.0%, respectively. The components of lease expense are as follows (in thousands): Fiscal Year Ended Classification December 29, 2019 Operating lease cost Restaurant operating expenses and General and administrative costs $ 27,141 Variable lease cost Restaurant operating expenses and General and administrative costs 10,736 Total lease cost $ 37,877 As of December 29, 2019, maturities of lease liabilities are summarized as follows (in thousands): Company Total 2020 $ 28,593 2021 28,088 2022 27,010 2023 24,089 2024 23,889 Thereafter 203,131 334,800 Imputed interest (97,195 ) $ 237,605 Under the previous lease accounting prior to the adoption of ASC842, future minimum annual rental commitments for operating leases as of December 30, 2018 were as follows (in thousands): Company Total 2019 $ 25,767 2020 24,177 2021 22,520 2022 21,388 2023 18,858 Thereafter 154,661 $ 267,371 Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year Ended December 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 26,660 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 56,608 Additionally, as of December 29,2019 the Company has executed seven leases for new Ruth’s Chris Steak House Restaurant locations with undiscounted fixed payments over the initial term of $35.4 million. These leases are expected to commence during the next 12 months and are expected to have an economic lease term of 20 years. These leases will commence when the landlords make the properties available to the Company. The Company will assess the reasonably certain lease term at the lease commencement date. The |
Revenue
Revenue | 12 Months Ended |
Dec. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | (5) Revenue The Company adopted Topic 606 with an initial date of application of January 1, 2018. As a result, the Company changed its accounting policy for revenue recognition. The Company applied Topic 606 using the cumulative effect method to contracts that were not completed at January 1, 2018, which resulted in the recognition of the cumulative effect of initially adopting Topic 606 as an adjustment to the opening balance of shareholders’ equity at January 1, 2018. Therefore, the comparative information previous to fiscal year 2018 has not been adjusted and continues to be reported under the Company’s revenue recognition policy in effect prior to the adoption of Topic 606. The Company adopted Topic 606 using the practical expedient in paragraph 606-10-65-1(f)(4), under which the Company aggregated all contract modifications that occurred before January 1, 2018 to identify the satisfied and unsatisfied performance obligations, to determine the transaction price, and to allocate the transaction price to the satisfied and unsatisfied performance obligations. The details of the significant changes as a result of adopting Topic 606 are provided below. Franchise Income. Prior to the adoption of Topic 606, the Company recognized franchise development and opening fees when a franchisee-owned restaurant opened. Under Topic 606, the Company now recognizes franchise development and opening specific fees over the life of the applicable franchise agreements. The Company increased its deferred revenue liability by $3.1 million, increased its deferred tax assets by $746 thousand and decreased the opening balance of shareholders’ equity by $2.3 million for previously recognized franchise development and opening fees that will now be recognized over the life of the applicable franchise agreements. The adoption of Topic 606 also impacts the classification of advertising contributions from franchisees. Prior to the adoption of Topic 606, the Company recorded advertising contributions from franchisees as a liability against which specific marketing and advertising costs were charged, which reduced the Company’s marketing expense on the consolidated statements of income. Under Topic 606, advertising contributions from franchisees are classified as franchise income on the consolidated statements of income in fiscal years 2019 and 2018. The Company recognized $1.5 million of advertising contributions from franchisees for the fiscal years 2019 and 2018. Because of the offsetting adjustments, the reclassification of advertising contributions from franchisees had no impact to the Company’s net income for fiscal year 2019 and 2018. Gift Cards. Under Topic 606, the Company now classifies certain discounts recognized on the sale of gift cards, historically recognized as marketing expense, as a reduction to restaurant sales on the consolidated statements of income. The reclassification of discounts recognized on the sale of gift cards from marketing expense to restaurant sales on the consolidated statements of income totaled $957 thousand in fiscal year 2019 and $1.1 million in fiscal year 2018. Because of the offsetting adjustments, the reclassification of discounts recognized on the sale of gift cards had no impact to the Company’s net income for fiscal years 2019 and 2018. Impacts on Financial Statements The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for fiscal year 2018 (in thousands). December 30, 2018 As Reported Adjustments Balances without adoption of Topic 606 Assets Current assets: Cash and cash equivalents $ 5,062 $ — $ 5,062 Accounts receivable, less allowance for doubtful accounts 2018 - $322; 2017 - $361 19,476 — 19,476 Inventory 9,296 — 9,296 Prepaid expenses and other 2,528 — 2,528 Total current assets 36,362 — 36,362 Property and equipment, net of accumulated depreciation 2018 - $160,153; 2017 - $144,373 125,991 — 125,991 Goodwill 36,522 — 36,522 Franchise rights, net of accumulated amortization 2018 - $2,299; 2017 - $396 44,919 — 44,919 Other intangibles, net of accumulated amortization 2018 - $1,395; 2017 - $1,181 4,862 — 4,862 Deferred income taxes 5,353 (686 ) 4,667 Other assets 604 — 604 Total assets $ 254,613 $ (686 ) $ 253,927 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 10,273 $ — $ 10,273 Accrued payroll 19,475 — 19,475 Accrued expenses 10,535 — 10,535 Deferred revenue 48,370 (121 ) 48,249 Other current liabilities 6,619 — 6,619 Total current liabilities 95,272 (121 ) 95,151 Long-term debt 41,000 — 41,000 Deferred rent 23,692 — 23,692 Unearned franchise fees 2,680 (2,680 ) — Other liabilities 1,837 — 1,837 Total liabilities 164,481 (2,801 ) 161,680 Commitments and contingencies — — — Shareholders' equity: Common stock, par value $.01 per share; 100,000,000 shares authorized, 29,268,776 shares issued and outstanding at December 30, 2018, 29,645,790 shares issued and outstanding at December 31, 2017 293 — 293 Additional paid-in capital 61,819 — 61,819 Retained earnings 28,020 2,115 30,135 Treasury stock, at cost; 71,950 shares at December 30, 2018 and December 31, 2017 — — — Total shareholders' equity 90,132 2,115 92,247 Total liabilities and shareholders' equity $ 254,613 $ (686 ) $ 253,927 52 Weeks Ended December 30, 2018 Balances without As Reported Adjustments adoption of Topic 606 Revenues: Restaurant sales $ 427,433 $ 1,058 (1) $ 428,491 Franchise income 17,919 (1,577 ) (2) 16,342 Other operating income 6,982 — 6,982 Total revenues 452,334 (519 ) 451,815 Costs and expenses: Food and beverage costs 120,112 — 120,112 Restaurant operating expenses 206,258 — 206,258 Marketing and advertising 16,639 (399 ) (3) 16,240 General and administrative costs 37,253 — 37,253 Depreciation and amortization expenses 18,538 — 18,538 Pre-opening costs 1,875 — 1,875 Total costs and expenses 400,675 (399 ) 400,276 Operating income 51,659 (120 ) 51,539 Other income (expense): Interest expense, net (1,739 ) — (1,739 ) Other (73 ) — (73 ) Income from continuing operations before income tax expense 49,847 (120 ) 49,727 Income tax expense 8,247 (29 ) (4) 8,218 Income from continuing operations 41,600 (91 ) 41,509 Income from discontinued operations, net of income taxes 80 — 80 Net income $ 41,680 $ (91 ) $ 41,589 (1) The reclassification of discounts recognized on the sale of gift cards from marketing expense to restaurant sales on the consolidated statements of income totaled $1.1 million for fiscal year 2018. (2) In fiscal year 2018, the Company recognized $1.5 million of advertising contributions from franchisees and $119 thousand of franchise development and opening fees in excess of fees that would have been recognized had Topic 606 not been adopted. (3) The Company recognized $1.5 million and of advertising contributions from franchisees in fiscal year 2018, which prior to the adoption of Topic 606 were recognized as a reduction to marketing and advertising expense. Discounts recognized on the sale of gift cards were reclassified from marketing expense to restaurant sales on the consolidated statements of income, which totaled $1.1 million in fiscal year 2018. (4) Income tax expense related to the pre-tax income impact of the adjustments is calculated using the Company’s marginal federal and state income tax rates. 52 Weeks Ended December 30, 2018 As Reported Adjustments Balances without adoption of Topic 606 Cash flows from operating activities: Net income $ 41,680 $ (91 ) $ 41,589 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 18,538 — 18,538 Deferred income taxes 341 — 341 Non-cash interest expense 82 — 82 Debt issuance costs written-off — — — Gain on the disposal of property and equipment, net 55 — 55 Loss on impairment — — — Amortization of below market lease 79 — 79 Stock-based compensation expense 7,647 — 7,647 Changes in operating assets and liabilities: Accounts receivable 2,151 — 2,151 Inventories (608 ) — (608 ) Prepaid expenses and other 151 — 151 Other assets (42 ) — (42 ) Accounts payable and accrued expenses 2,590 — 2,590 Deferred revenue 5,383 120 5,503 Deferred rent 1,462 — 1,462 Other liabilities (1,215 ) (29 ) (1,244 ) Net cash provided by operating activities 78,294 — 78,294 Net cash used in investing activities (31,907 ) — (31,907 ) Net cash used in financing activities (45,376 ) — (45,376 ) Net increase in cash and cash equivalents $ 1,011 — $ 1,011 In the following tables, the Company’s revenue is disaggregated by major component for each category on the consolidated statements of income (in thousands). 52 Weeks Ended December 29, 2019: Domestic International Total Revenue Restaurant sales $ 441,361 $ — $ 441,361 Franchise income 15,004 2,875 17,879 Other operating income 8,786 — 8,786 Total revenue $ 465,151 $ 2,875 $ 468,026 52 Weeks Ended December 30, 2018: Domestic International Total Revenue Restaurant sales $ 427,433 $ — $ 427,433 Franchise income 15,194 2,725 17,919 Other operating income 6,982 — 6,982 Total revenue $ 449,609 $ 2,725 $ 452,334 53 Weeks Ended December 31, 2017: Domestic International Total Revenue Restaurant sales $ 390,434 $ — $ 390,434 Franchise income 14,596 2,949 17,545 Other operating income 6,844 — 6,844 Total revenue $ 411,874 $ 2,949 $ 414,823 The following table provides information about receivables and deferred revenue liabilities from contracts with customers (in thousands). December 29, December 30, 2019 2018 Accounts receivable, less allowance for doubtful accounts 2019 - $241; 2018 - $322 $ 19,615 $ 18,336 Deferred revenue $ 52,856 $ 48,370 Unearned franchise fees $ 2,489 $ 2,680 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the fifty-two weeks of fiscal years 2019 and 2018 are presented in the following table (in thousands). Deferred Unearned Revenue Franchise Fees Balance at December 31, 2017 $ 42,596 $ — Increase (decrease) due to the cumulative effect of adopting Topic 606 (22 ) 3,092 Decreases in the beginning balance from gift card redemptions (29,103 ) — Increases due to proceeds received, excluding amounts recognized during the period 34,861 — Decreases due to recognition of franchise development and opening fees — (419 ) Other 38 7 Balance at December 30, 2018 48,370 2,680 Decreases in the beginning balance from gift card redemptions (30,970 ) — Increases due to proceeds received, excluding amounts recognized during the period 34,903 — MBR Franchisee Acquisition assumed liability, excluding amounts recognized during the period 563 — Decreases due to recognition of franchise development and opening fees — (191 ) Other (10 ) — Balance at December 29, 2019 $ 52,856 $ 2,489 The projected recognition of revenue related to deferred franchise development and opening fees is as follows (in thousands). Balance as of December 29, 2019 Fiscal Year 2020 Fiscal Year 2021 Fiscal Years 2022-2024 More Than 5 Years Franchise development and opening fees $ 2,489 $ 236 $ 236 $ 709 $ 1,308 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 29, 2019 | |
Disclosure Text Block [Abstract] | |
Fair Value Measurements | (6) Fair Value Measurements Fair value is defined under FASB ASC Topic 820, Fair Value Measurements and Disclosures (Topic 820), as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Topic 820 also establishes a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels of inputs are: • Level 1—quoted prices (unadjusted) for an identical asset or liability in an active market. • Level 2—quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. • Level 3—unobservable and significant to the fair value measurement of the asset or liability. The following were used to estimate the fair value of each class of financial instruments: • The carrying amount of cash and cash equivalents, receivables, prepaid expenses, accounts payable and accrued expenses and other current liabilities are a reasonable estimate of their fair values due to their short duration. • Borrowings under the senior credit facility as of December 29, 2019 and December 30, 2018 have variable interest rates that reflect currently available terms and conditions for similar debt. The carrying amount of this debt is a reasonable estimate of its fair value (Level 2). The Company did not have any non-financial assets measured at fair value on a non-recurring basis as of the end of fiscal year 2019 or 2018. |
Franchise Rights and Goodwill
Franchise Rights and Goodwill | 12 Months Ended |
Dec. 29, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Franchise Rights and Goodwill | (7) Franchise Rights and Goodwill In accordance with FASB ASC Topic 350, goodwill and owned franchise rights with indefinite useful lives must be reviewed for potential impairment annually and when triggering events are detected. The Company performed its annual impairment test of its goodwill and franchise rights as of December 1, 2019 using a qualitative assessment. Using the qualitative approach, the Company evaluated factors, including but not limited to, recent financial performance; forecasts for future cash flows; the Company’s stock price and market capitalization; recent impairment tests; legal factors; the business climate; and the competitive environment. Based on the results of the qualitative assessment, the Company determined that it is not more likely than not that the carrying values of goodwill and franchise rights exceed the fair values. If the qualitative assessment is not performed, or if the Company determines that it is not more likely than not that the fair values of the intangible assets exceed the carrying values, then the Company performs the following analysis for franchise rights and goodwill to measure fair values. Franchise Rights To determine the fair value of acquired franchise rights with indefinite useful lives, the Company uses a multi-period excess earnings approach. This approach involves projecting after-royalty future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment, assembled workforce and customer relationships to arrive at excess earnings attributable to these franchise rights. The Company calculates the present value of cash flows generated from future excess earnings and compares the fair values to the financial statement carrying values. Goodwill In performing the evaluation of goodwill impairment under FASB ASC Topic 350-20, the Company compares the carrying value of its reporting unit, which is considered to be the steakhouse operating segment, to its fair value. The Company utilizes a multiple of EBITDA to approximate the fair value of the reporting unit for purposes of completing Step 1 of the evaluation. The Company considers EBITDA multiples of publicly held companies, including its own, as well as recent industry acquisitions. If a reporting unit’s fair value does not exceed its carrying value as the balance sheet date, the Company would complete Step 2 of the evaluation by comparing the implied fair value of goodwill with the net asset value of the reporting unit. The Company would calculate the implied fair value by allocating the fair value of a reporting unit to all of its assets and liabilities as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the unit. The financial statement carrying values of the Company’s franchise rights and other intangible assets were as follows (amounts in thousands): Weighted Average Amortization Period Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizing intangible assets: Franchise rights 7.2 yrs $ 22,117 $ (4,401 ) $ 17,716 Lease assets 10.9 yrs 2,000 (1,083 ) 917 Other assets 2.9 yrs 490 (356 ) 134 24,607 (5,840 ) 18,767 Indefinite-lived intangible assets: Franchise rights 32,200 - 32,200 Liquor licenses 3,280 - 3,280 Other assets 118 - 118 35,598 - 35,598 Total intangible assets $ 60,205 $ (5,840 ) $ 54,365 Aggregate amortization expense for amortizing intangible assets was $2.2 million for the fiscal year 2019, $2.1 million for the fiscal year 2018 and $277 thousand for the fiscal year 2017. Estimated amortization expense for the next five years is: $ 2.7 million The financial statement carrying values of the Company’s goodwill was as follows (amounts in thousands): Gross Goodwill Accumulated Goodwill Impairment Losses Net Carrying Value of Goodwill Balance as of December 30, 2018 $ 47,080 $ (10,558 ) $ 36,522 Balance as of December 29, 2019 $ 56,107 $ (10,558 ) $ 45,549 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 29, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, net | (8) Property and Equipment, net Property and equipment consists of the following (amounts in thousands): December 29, December 30, 2019 2018 Land $ 616 $ 616 Building and building improvements 25,477 25,163 Equipment 44,227 41,852 Computer equipment 16,472 12,085 Furniture and fixtures 27,758 25,049 Leasehold improvements 192,096 167,650 Construction-in-progress 10,161 13,729 316,807 286,144 Less accumulated depreciation (173,845 ) (160,153 ) $ 142,962 $ 125,991 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | (9) Long-term Debt Long-term debt consists of the following (amounts in thousands): December 29, December 30, 2019 2018 Senior Credit Facility: Revolving credit facility $ 64,000 $ 41,000 Less current maturities — — $ 64,000 $ 41,000 As of December 29, 2019, the Company had $64.0 million of outstanding indebtedness under its senior credit facility with approximately $51.2 million of borrowings available, net of outstanding letters of credit of approximately $4.8 million. As of December 29, 2019, the weighted average interest rate on the Company’s outstanding debt was 3.5% and the weighted average interest rate on our outstanding letters of credit was 1.9%. In addition, the fee on the Company’s senior credit facility was 0.3%. On February 2, 2017, the Company entered into a credit agreement with Wells Fargo Bank, National Association as administrative agent, and certain other lenders (the Credit Agreement) governing a senior credit facility that replaced the prior credit facility. The Credit Agreement provides for a revolving credit facility of $90.0 million with a $5.0 million subfacility for swingline loans. Subject to the satisfaction of certain conditions and lender consent, the revolving credit facility may be increased up to a maximum of $150.0 million. The Credit Agreement has a maturity date of February 2, 2022. At our option, revolving loans may bear interest at (i) LIBOR, plus an applicable margin, (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 month LIBOR plus 1.00%, plus an applicable margin. The applicable margin is based on our actual leverage ratio, ranging (a) from 1.50% to 2.25% above the applicable LIBOR rate or (b) at our option, from 0.50% to 1.25% above the applicable base rate. On September 18, 2019, the Company entered into the First Amendment to Credit Agreement (the “First Amendment”) which amends its existing Credit Agreement, dated as of February 2, 2017 (the “Existing Credit Agreement” and the Existing Credit Agreement as amended by the First Amendment, the “Amended Credit Agreement”). The First Amendment, among other changes, increases the amount of the revolving credit facility to $120.0 million. Subject to the satisfaction of certain conditions and lender consent, the revolving credit facility under the Amended Credit Agreement may be increased up to a maximum of $150.0 million. The amounts of the letters of credit subfacility and swingline subfacility under the Amended Credit Agreement remain unchanged from the Existing Credit Agreement at $5.0 million each. The Amended Credit Agreement contains customary representations and affirmative and negative covenants (including limitations on indebtedness and liens) as well as financial covenants requiring a minimum fixed coverage charge ratio and limiting the Company’s consolidated leverage ratio. The Amended Credit Agreement also contains events of default customary for credit facilities of this type (with customary grace periods, as applicable), including nonpayment of principal or interest when due; material incorrectness of representations and warranties when made; breach of covenants; bankruptcy and insolvency; unsatisfied ERISA obligations; unstayed material judgment beyond specified periods; default under other material indebtedness; and certain changes of control of the Company. If any event of default occurs and is not cured within the applicable grace period, or waived, the outstanding loans may be accelerated by lenders holding a majority of the commitments under the Amended Credit Agreement and the lenders’ commitments may be terminated. The obligations under the Amended Credit Agreement are guaranteed by certain of the Company’s subsidiaries (the Guarantors), and are secured by a lien on substantially all of the Company’s personal property assets other than any equity interest in current and future subsidiaries of the Company. |
Franchise Operations
Franchise Operations | 12 Months Ended |
Dec. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Franchise Operations | (10) Franchise Operations The Company franchises Ruth’s Chris Steak House restaurants. The Company executes franchise agreements for each franchisee-owned restaurant, which sets out the terms of its arrangement with the franchisee. The franchise agreements typically require the franchisee to pay an initial, non-refundable fee and continuing fees based upon a percentage of sales. The Company collects ongoing royalties of 5% of sales at franchisee-owned restaurants plus a 1% advertising fee applied to national advertising expenditures. The Company recognizes sales based royalties when the royalties are due from the franchisee on a monthly basis. These ongoing royalties are reflected in the accompanying consolidated statements of income as franchise income. Prior to the adoption of Topic 606 in fiscal year 2018, the Company recorded the 1% advertising fee as a liability against which specific marketing and advertising costs were charged, which reduced the Company’s marketing expense on the consolidated statement of income. Under Topic 606, advertising contributions from franchisees are classified as franchise income on the consolidated statement of income in fiscal years 2019 and 2018. The Company executes area development agreements with franchisees that gives each franchisee exclusive rights to develop a specific number of restaurants within a specified area. The Company receives a development fee at the time that an area development agreement is executed. Prior to the adoption of Topic 606 in fiscal year 2018, t he development fee wa s recognized as revenue as franchisee-owned restaurants opened. Under Topic 606, the Company now recognizes franchise development over the life of the applicable franchise agreements. The Company also executes separate, site-specific franchise agreements for each restaurant developed by a franchisee under an area development agreement. The Company charges a site-specific fee at the time the franchise agreement is executed. This fee is related to construction assistance and consulting regarding operating procedures and purchasing. These services are performed prior to the restaurant opening. The se site-specific franchise fee s are recognized as revenue over the life of the applicable franchise agreements under Topic 606. Prior to the adoption of Topic 606 they were recorded when the related restaurant open ed . The Company currently has 73 franchisee-owned Ruth’s Chris Steak House restaurants, including 21 international restaurants. One new franchisee-owned restaurant opened in fiscal year 2019 including Chongqing, China in February. Two new franchisee-owned restaurants opened in fiscal year 2018 including Ft. Wayne, IN in May and a Markham, Ontario location in November. Two new franchisee-owned restaurants opened in fiscal year 2017 including Chengdu, China in September and Kauai, HI in October. The Kauai, HI restaurant was acquired by the Company in December 2017. Three franchisee-owned Ruth’s Chris Steak House restaurants closed in fiscal year 2018 including Ridgeland, MS in March; Dubai, United Arab Emirates in April and Panama City, Panama in October. In September 2017, the franchisee-owned Ruth’s Chris Steak House restaurant in San Juan, Puerto Rico closed. In July 2019, the Company acquired the restaurants associated with the MBR Franchise Acquisition. In December 2017, the Company acquired the Hawaiian Restaurants. No franchisee-owned restaurants were sold or purchased during fiscal year 2018. Franchise income includes opening and development fees and income generated from existing franchisee-owned restaurants. The Company classifies franchise income separately in the consolidated statements of income (in thousands): Fiscal Year 2019 2018 2017 Franchise income: Income from existing franchise locations $ 17,689 $ 17,500 $ 17,335 Opening and development fee income 190 419 210 Total franchise income: $ 17,879 $ 17,919 $ 17,545 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies The Company is subject to various claims, possible legal actions and other matters arising in the normal course of business. Management does not expect disposition of these other matters to have a material adverse effect on the financial position, results of operations or liquidity of the Company. The Company expenses legal fees as incurred. 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 the tax positions are reasonable and consequently there are no accrued liabilities for claims which may be asserted, various taxing authorities may challenge certain of the positions taken by the Company which may result in additional liability for taxes and interest. These tax positions are reviewed periodically based on the availability of new information, the lapsing of applicable statutes of limitations, the conclusion of tax audits, the identification of new tax contingencies, or the rendering of relevant court decisions. An unfavorable resolution of assessments by a governmental authority could negatively impact the Company’s results of operations and cash flows in future periods. 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 by individual U.S. states with regard to its escheatment practices. The Company has a pending voluntary disclosure agreement with the State of Delaware to resolve potential liability surrounding gift cards. On February 26, 2018, a former restaurant hourly employee filed a class action lawsuit in the Superior Court of the State of California for the County of Riverside, alleging that the Company violated the California Labor Code and California Business and Professions Code, by failing to pay minimum wages, pay overtime wages, permit required meal and rest breaks and provide accurate wage statements, among other claims. This lawsuit seeks unspecified penalties under the California’s Private Attorney’s General Act in addition to other monetary payments (Quiroz Guerrero v. Ruth’s Hospitality Group, Inc., et al.; Case No RIC1804127). Although the ultimate outcome of this matter, including any possible loss, cannot be predicted or reasonable estimated at this time, we intend to vigorously defend this matter. 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. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 29, 2019 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (12) Shareholders’ Equity The holders of the Company’s common stock are entitled to one vote per share on all matters to be voted on by the Company’s shareholders. In October 2019, our Board of Directors approved a new share repurchase program authorizing the Company to repurchase up to $60 million of outstanding common stock from time to time. The new share repurchase program replaces the previous share repurchase program announced in October 2017, which has been terminated. During fiscal year 2019, 1,148,515 shares were purchased at an aggregate cost of $25.8 million or an average cost of $22.48 per share under this new program. All repurchased shares were retired and cancelled. As of December 29, 2019 The Company repurchased 1,148,515; 689,000; and 1,169,442 shares under all share repurchase programs during fiscal years 2019, 2018, and 2017, respectively. The Company’s Board of Directors declared the following dividends during the periods presented (amounts in thousands, except per share amounts): Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2019 February 22, 2019 $ 0.13 March 7, 2019 $ 3,967 March 21, 2019 May 3, 2019 $ 0.13 May 23, 2019 $ 3,931 June 6, 2019 August 2, 2019 $ 0.13 August 22, 2019 $ 3,854 September 5, 2019 November 1, 2019 $ 0.13 November 21, 2019 $ 3,814 December 5, 2019 Fiscal Year 2018 February 21, 2018 $ 0.11 March 8, 2018 $ 3,390 March 22, 2018 May 4, 2018 $ 0.11 May 24, 2018 $ 3,397 June 7, 2018 August 10, 2018 $ 0.11 August 23, 2018 $ 3,389 September 6, 2018 November 2, 2018 $ 0.11 November 15, 2018 $ 3,351 November 29, 2018 Fiscal Year 2017 February 17, 2017 $ 0.09 February 23, 2017 $ 2,862 March 9, 2017 May 5, 2017 $ 0.09 May 18, 2017 $ 2,862 June 1, 2017 July 28, 2017 $ 0.09 August 10, 2017 $ 2,844 August 24, 2017 November 3, 2017 $ 0.09 November 9, 2017 $ 2,815 November 22, 2017 Subsequent to the end of fiscal year 2019, the Company’s Board of Directors declared a $0.15 per share cash dividend ($4.4 million in total) payable on March 20, 2020. Dividends are paid to holders of common stock and restricted stock. Under the Credit Agreement, restricted junior payments, which include cash dividend payments, repurchases of the Company’s equity securities and payments and prepayments of subordinated indebtedness, made subsequent to February 2, 2017 are limited to $100.0 million if the Company’s consolidated leverage ratio is greater than or equal to 2.00:1.00, and are not limited in amount if our consolidated leverage ratio is less than or equal to 2.00:1.00. As of the date of this Annual Report on Form 10-K, $108.7 million in junior restricted payments have been made since February 2, 2017. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 29, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | (13) Employee Benefit Plan In 2000, the Company established a 401(k) and Profit Sharing Plan. The Company may make matching contributions in an amount determined by the Board of Directors. In addition, the Company may contribute each period, at its discretion, an additional amount from profits. The Company matches the employees’ contributions at year end. Employees vest in the Company’s contributions based upon their years of service. The Company’s expenses relating to matching contributions were approximately $357 thousand, $354 thousand and $324 thousand for fiscal years 2019, 2018 and 2017, respectively. |
Incentive Stock Option Plans
Incentive Stock Option Plans | 12 Months Ended |
Dec. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive and Stock Option Plans | (14) Incentive and Stock Option Plans Long-Term Equity Incentive Plans In connection with the initial public offering, the Company adopted the Ruth’s Chris Steak House, Inc. 2005 Long-Term Equity Incentive Plan (the 2005 Equity Incentive Plan), which allows the Company’s Board of Directors to grant stock options, restricted stock, restricted stock units, deferred stock units and other equity-based awards to non-employee directors, officers, key employees and other key individuals performing services for the Company. The restricted stock units are settled in shares upon vest. Initially, 2.4 million shares were authorized for issuance under the 2005 Equity Incentive Plan. The 2005 Equity Incentive Plan provides for granting of options to purchase shares of common stock at an exercise price not less than the fair value of the stock on the date of grant. Options are exercisable, and restricted stock vests, at various periods ranging from one to five years from date of grant. Effective May 22, 2008, the 2005 Equity Incentive Plan was amended, with stockholder approval, to increase the number of shares authorized for issuance under the plan by 1.5 million shares. The Amended and Restated 2005 Equity Incentive Plan was adopted on October 26, 2012, and the number of shares authorized for issuance under the Amended and Restated 2005 Long-Term Equity Incentive Plan was increased by 2.0 million shares at the 2013 annual meeting of stockholders. On May 15, 2018, the Company’s stockholders approved a new 2018 Omnibus Inventive Plan (the 2018 Equity Incentive Plan) which replaces the Amended and Restated 2005 Equity Incentive Plan which expired on May 30, 2018. The 2018 Equity Incentive Plan authorizes 2.5 million shares reserved for future grants. Awards that were previously awarded under the 2005 Equity Incentive Plan that are forfeited or cancelled in the future will be made available for grant or issuance under the 2018 Equity Incentive Plan. The 1,649,394 shares that were authorized but unissued under the 2005 Equity Incentive Plan as of May 15, 2018 were cancelled. As of December 29, 2019, there are 501,186 currently outstanding unvested restricted stock awards under the 2005 Equity Incentive Plan. Under the 2018 Equity Incentive Plan there are 421,236 shares of currently outstanding unvested restricted stock awards and units outstanding under the 2018 Equity Incentive Plan at December 29, 2019, and 2.3 million shares available for future grants. During fiscal year 2017, the Company issued 251,512 awards of restricted stock awards to certain non-employee directors, employees and executive officers from available shares under the Amended and Restated 2005 Equity Incentive Plan. The shares were issued with a grant date fair market value equal to the closing price of the stock on the date of the grants. Of the 251,512 shares of restricted stock issued during 2017, 38,217 shares will vest in fiscal year 2018, 135,071 shares will vest in fiscal year 2019, 48,224 shares will vest in fiscal year 2020, and 10,000 shares will vest annually in fiscal years 2021, 2022 and 2023. During fiscal year 2018, the Company issued 357,508 awards of restricted stock awards to certain non-employee directors, employees and executive officers from available shares under the Amended and Restated 2005 Equity Incentive Plan and the 2018 Plan. The shares were issued with a grant date fair market value equal to the closing price of the stock on the date of the grants. Of the 357,508 shares of restricted stock issued during 2018, 37,273 shares will vest in fiscal year 2019, 100,255 shares will vest in fiscal year 2020, 97,648 shares will vest in fiscal year 2021, 41,666 shares will vest in fiscal year 2022 and 80,666 shares will vest in fiscal year 2023. During fiscal year 2019, the Company issued 274,453 awards of restricted stock awards to certain employees and executive officers and 22,824 awards of restricted stock units to non-employee directors from available shares under the 2018 Plan. The shares were issued with a grant date fair market value equal to the closing price of the stock on the date of the grants. Of the 297,277 shares of restricted stock issued during 2019, 55,834 shares will vest in fiscal year 2020, 152,189 shares will vest in fiscal year 2021, 66,544 shares will vest in 2022 and 22,710 will vest in fiscal year 2024. The Company recorded $8.2 million, $7.6 million and $6.8 million in total stock option and restricted stock compensation expense during fiscal years 2019, 2018, and 2017, respectively that was classified primarily as general and administrative costs. The Company recognized $466 thousand, $634 thousand and $376 thousand in income tax benefit related to stock-based compensation plans during fiscal years 2019, 2018, and 2017, respectively. A summary of the status of non-vested restricted stock as of December 29, 2019 and changes during fiscal year 2019 is presented below. 2019 Shares Weighted-Average Grant-Date Fair Value Per Share Non-vested shares at beginning of year 1,078,571 $ 20.44 Granted 297,457 24.42 Vested (448,606 ) 17.56 Forfeited (5,000 ) 19.73 Non-vested shares at end of year 922,422 $ 23.13 As of December 29, 2019, there was $12.6 million of total unrecognized compensation cost related to 922,422 shares of non-vested restricted stock. This cost is expected to be recognized over a weighted-average period of approximately 2.2 years. The total grant date fair value of restricted stock vested in fiscal years 2019, 2018, and 2017 was $7.9 million, $7.7 million and $4.5 million, respectively. The following table summarizes stock option activity for fiscal year 2019: 2019 Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value ($000's) Outstanding at beginning of year 5,073 $ 3.07 Granted — — Exercised (5,073 ) 3.07 Forfeited — — Outstanding at end of year — $ — — $ — Options exercisable at year end — $ — — $ — As of December 29, 2019, there was no unrecognized compensation cost related to non-vested stock options. The total intrinsic value of options exercised in fiscal years 2019, 2018, and 2017 was $89 thousand, $231 thousand and $681 thousand, respectively. During fiscal years 2019, 2018, and 2017, the Company received $16 thousand, $32 thousand and $945 thousand, respectively, in cash related to the exercise of options. The exercise of shares were fulfilled from shares reserved for issuance under the Amended and Restated 2005 Equity Incentive Plan and resulted in an increase in issued shares outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (15) Income Taxes Total income tax expense (benefit) for fiscal years 2019, 2018, and 2017 was (in thousands): 2019 2018 2017 Income tax expense from continuing operations $ 8,173 $ 8,247 $ 15,669 Income tax expense (benefit) from discontinued operations — 26 (68 ) Total consolidated income tax expense $ 8,173 $ 8,273 $ 15,601 Income tax expense from continuing operations consists of the following (in thousands): Current Deferred Total Year ended December 29, 2019 U.S. Federal $ 4,350 $ 563 $ 4,913 State 2,685 274 2,959 Foreign 301 — 301 $ 7,336 $ 837 $ 8,173 Year ended December 30, 2018 U.S. Federal $ 4,851 $ 326 $ 5,177 State 2,723 14 2,737 Foreign 333 — 333 $ 7,907 $ 340 $ 8,247 Year ended December 31, 2017 U.S. Federal $ 8,431 $ 4,557 $ 12,988 State 1,916 422 2,338 Foreign 343 — 343 $ 10,690 $ 4,979 $ 15,669 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 (in thousands): 2019 2018 2017 Income tax expense at statutory rates $ 10,580 $ 10,468 $ 16,070 Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 2,317 1,886 1,316 Employment-related tax credits, net (4,976 ) (4,628 ) (3,389 ) Non-deductible executive compensation 1,023 1,234 729 Stock-based compensation (392 ) (542 ) (349 ) Impact of the 2017 Tax Act — (669 ) 1,086 Other (379 ) 498 206 $ 8,173 $ 8,247 $ 15,669 Effective tax rate 16.2 % 16.5 % 34.1 % The Tax Cuts and Jobs Act (the “2017 Tax Act”) was signed into law on December 22, 2017. The 2017 Tax Act significantly revised existing U.S. tax law, and included many changes that impacted the Company, most notably a reduction of the statutory corporate tax rate from 35% to 21%. In accordance with FASB ASC 740, the Company remeasured its deferred tax assets and liabilities to reflect the reduced tax rates that will apply when these deferred items are realized or settled in future periods. During fiscal year 2018, we completed our analysis of the impact of the 2017 Tax Act which resulted in a tax benefit of $669 thousand, and additional tax expense of $1.1 million, for the fiscal periods ending December 30, 2018 and December 31, 2017, respectively. 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 claim a credit against the company’s federal income taxes for FICA taxes paid on certain tip wages (the FICA tip credit). The credit against income tax liability is for the full amount of eligible FICA taxes. Employers cannot deduct from taxable income the amount of FICA taxes taken into account in determining the credit. Income taxes applicable to discontinued operations are comprised of taxes calculated at the composite federal and state statutory tax rate times the pre-tax loss. A reconciliation of the U.S. statutory tax rate to the effective tax rate applicable to discontinued operations for fiscal years 2019, 2018 and 2017 follows (in thousands): 2019 2018 2017 Income tax benefit at statutory rates $ — $ 22 $ (62 ) Increase (decrease) in income taxes resulting from: State income taxes at state statutory rate, net of federal impact — 4 (6 ) $ — $ 26 $ (68 ) Effective tax rate N/A 24.6 % 38.6 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets are presented below (in thousands): 2019 2018 Deferred tax assets: Accounts payable and accrued expenses $ 9,171 $ 8,835 Operating lease liabilities 60,473 — Deferred rent — 6,267 Net state operating loss carryforwards 3,598 3,674 Tax credit carryforwards 450 502 Other 60 128 Total gross deferred tax assets 73,752 19,406 Less valuation allowance (1,926 ) (1,897 ) Net deferred tax assets 71,826 17,509 Deferred tax liabilities: Property and equipment (1,590 ) (539 ) Intangible assets (12,533 ) (11,617 ) Operating lease right of use assets (52,774 ) — Total gross deferred tax liabilities (66,897 ) (539 ) Net deferred tax assets $ 4,929 $ 16,970 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future taxable income in making this assessment. Based on this evaluation, management has recorded a valuation allowance against the Company’s gross deferred tax assets of $1.9 million as of December 29, 2019 and December 30, 2018 related to certain state net operating loss and state tax credit carryforwards that are not likely to be offset by future state taxable income. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of the net deferred tax assets. As of December 29, 2019, the Company has state net operating loss carry-forwards of $69.2 million and state tax credit carry-forwards of $569 thousand, which are available to offset state taxable income with the last of such benefit expiring in 2039 . As of December 29, 2019, the Company’s gross unrecognized tax benefits totaled approximately $283 thousand, of which $224 thousand, if recognized, would impact the effective tax rate. The Company does not anticipate there will be any material changes in the unrecognized tax benefits within the next 12 months. Our continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows (amounts in thousands): Unrecognized tax benefits balance at December 30, 2018 $ 607 Gross increases for tax positions of prior years 9 Reductions due to settlements with taxing authorities (333 ) Unrecognized tax benefits balance at December 29, 2019 $ 283 The Company files consolidated and separate income tax returns in the United States Federal jurisdiction and many state jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal or state and local income tax examinations for fiscal years before 2015. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (16) Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net income by the diluted weighted average shares of common stock outstanding during each period. Potentially dilutive securities include shares of non-vested stock awards. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Stock awards are excluded from the calculation of diluted earnings per share in the event they are antidilutive. The following table sets forth the computation of basic earnings per common share (amounts in thousands, except share and per share data): Fiscal Year 2019 2018 2017 Income from continuing operations $ 42,206 $ 41,600 $ 30,245 Income (loss) from discontinued operations, net of income taxes — 80 (108 ) Net income $ 42,206 $ 41,680 $ 30,137 Shares: Weighted average number of common shares outstanding - basic 28,998,382 29,659,461 30,346,999 Basic earnings (loss) per common share: Continuing operations $ 1.46 $ 1.40 $ 1.00 Discontinued operations — 0.01 (0.01 ) Basic earnings per common share $ 1.46 $ 1.41 $ 0.99 Diluted earnings (loss) per share for fiscal years 2019, 2018 and 2017 excludes 25,915 restricted shares with no exercise price, 9,591 restricted shares with no exercise price and 685 stock options and restricted shares at a weighted-average price of $21.60, respectively, which were outstanding during the periods but were anti-dilutive. The following table sets forth the computation of diluted earnings per share (amounts in thousands, except share and per share data): Fiscal Year 2019 2018 2017 Income from continuing operations $ 42,206 $ 41,600 $ 30,245 Income (loss) from discontinued operations, net of income taxes — 80 (108 ) Net income $ 42,206 $ 41,680 $ 30,137 Shares: Weighted average number of common shares outstanding - basic 28,998,382 29,659,461 30,346,999 Dilutive shares 378,598 614,380 569,365 Weighted average number of common shares outstanding - diluted 29,376,980 30,273,841 30,916,364 Diluted earnings (loss) per common share: Continuing operations $ 1.44 $ 1.37 $ 0.98 Discontinued operations — 0.01 (0.01 ) Diluted earnings per common share $ 1.44 $ 1.38 $ 0.97 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | (17) Segment Information The Company has two reportable segments – the Company-owned steakhouse segment and the franchise operations segment. The Company does not rely on any major customers as a source of revenue. The Company-owned Ruth’s Chris Steak House restaurants, all of which are located in North America, operate within the full-service dining industry, providing similar products to similar customers. Revenues are derived principally from food and beverage sales. As of December 29, 2019, (i) the Company-owned steakhouse restaurant segment included 83 Ruth’s Chris Steak House restaurants and three Ruth’s Chris Steak House restaurants operating under a management agreement and (ii) the franchise operations segment included 73 franchisee-owned Ruth’s Chris Steak House restaurants. Segment profits for the Company-owned steakhouse restaurant segments equal segment revenues less segment expenses. Segment revenues for the Company-owned steakhouse restaurants include restaurant sales, management agreement income and other restaurant income. Gift card breakage revenue is not allocated to operating segments. Not all operating expenses are allocated to operating segments. Segment expenses for the Company-owned steakhouse segment include food and beverage costs and restaurant operating expenses. No other operating costs are allocated to the segments for the purpose of determining segment profits because such costs are not directly related to the operation of individual restaurants. The accounting policies applicable to each segment are consistent with the policies used to prepare the consolidated financial statements. The profit of the franchise operations segment equals franchise income, which consists of franchise royalty fees and franchise opening fees. No costs are allocated to the franchise operations segment. Segment information related to the Company’s two reportable business segments follows. Fiscal Year 2019 2018 2017 (dollar amounts in thousands) Revenues: Company-owned steakhouse restaurants $ 446,257 $ 431,536 $ 394,359 Franchise operations 17,879 17,919 17,545 Unallocated other revenue and revenue discounts 3,890 2,879 2,919 Total revenues $ 468,026 $ 452,334 $ 414,823 Segment profits: Company-owned steakhouse restaurants $ 103,945 $ 105,166 $ 92,554 Franchise operations 17,879 17,919 17,545 Total segment profit 121,824 123,085 110,099 Unallocated operating income 3,890 2,879 2,919 Marketing and advertising expenses (15,432 ) (16,639 ) (12,724 ) General and administrative costs (34,643 ) (37,253 ) (32,700 ) Depreciation and amortization expenses (21,354 ) (18,538 ) (14,995 ) Pre-opening costs (1,824 ) (1,875 ) (2,013 ) Loss on impairment — — (3,904 ) Interest expense, net (2,197 ) (1,739 ) (821 ) Other income 115 (73 ) 53 Income from continuing operations before income tax expense $ 50,379 $ 49,847 $ 45,914 Capital expenditures: Company-owned steakhouse restaurants $ 30,026 $ 29,433 $ 20,363 Corporate assets 1,642 2,474 892 Total capital expenditures $ 31,668 $ 31,907 $ 21,255 Fiscal Year December 29, December 30, December 31, 2019 2018 2017 (dollar amounts in thousands) Total assets: Company-owned steakhouse restaurants $ 471,756 $ 233,446 $ 223,354 Franchise operations 2,435 2,911 3,021 Corporate assets - unallocated 17,756 12,903 10,774 Deferred income taxes - unallocated 4,929 5,353 4,947 Total assets $ 496,876 $ 254,613 $ 242,096 |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Statement Information | 12 Months Ended |
Dec. 29, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Consolidated Financial Statement Information | (18) Supplemental Consolidated Financial Statement Information (a) Accounts Receivable, net Accounts receivable, net consists of the following (amounts in thousands): December 29, December 30, 2019 2018 Bank credit card receivables $ 7,669 $ 7,223 Landlord contributions 3,565 531 Franchise fees 2,354 2,759 Trade 1,065 932 Receivable from gift card issuances 8,802 7,630 Other 555 723 Allowance for doubtful accounts (241 ) (322 ) $ 23,769 $ 19,476 (b) Other Assets Other assets consist of the following (amounts in thousands): December 29, December 30, 2019 2018 Deposits $ 497 $ 348 Deferred financing costs, net 205 256 $ 702 $ 604 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 29, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | (19) Quarterly Financial Data (Unaudited) Summarized unaudited quarterly financial data (amounts in thousands, except per share information): Quarter Ended March 31, June 30, September 29, December 29, 2019 2019 2019 2019 Total Total revenues $ 119,741 $ 110,243 $ 103,009 $ 135,033 $ 468,026 Cost and expenses (102,898 ) (98,597 ) (97,438 ) (116,633 ) (415,565 ) Operating income 16,843 11,646 5,571 18,400 52,461 Interest expense, net (405 ) (417 ) (638 ) (737 ) (2,197 ) Other 2 13 18 82 115 Income from continuing operations before income tax expense 16,440 11,242 4,951 17,745 50,379 Income tax expense 2,529 1,933 423 3,287 8,173 Income from continuing operations 13,911 9,309 4,528 14,458 42,206 Discontinued operations, net of income tax - - - - - Net income (loss) $ 13,911 $ 9,309 $ 4,528 $ 14,458 $ 42,206 Basic earnings per share: Continuing operations $ 0.48 $ 0.32 $ 0.16 $ 0.51 $ 1.46 Discontinued operations — — — — — Basic earnings per share $ 0.48 $ 0.32 $ 0.16 $ 0.51 $ 1.46 Diluted earnings per share: Continuing operations $ 0.47 $ 0.31 $ 0.16 $ 0.50 $ 1.44 Discontinued operations — — — — — Diluted earnings per share $ 0.47 $ 0.31 $ 0.16 $ 0.50 $ 1.44 Dividends declared per common share $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.52 Quarter Ended April 1, July 1, September 30, December 30, 2018 2018 2018 2018 Total Total revenues $ 116,526 $ 109,635 $ 99,015 $ 127,159 $ 452,334 Cost and expenses (100,138 ) (97,930 ) (94,161 ) (108,446 ) (400,675 ) Operating income 16,388 11,705 4,854 18,713 51,659 Interest expense, net (380 ) (403 ) (470 ) (486 ) (1,739 ) Other 12 22 (65 ) (42 ) (73 ) Income from continuing operations before income tax expense 16,020 11,324 4,319 18,185 49,847 Income tax expense 2,384 1,763 727 3,375 8,247 Income from continuing operations 13,636 9,561 3,592 14,810 41,600 Discontinued operations, net of income tax 10 12 9 50 80 Net income $ 13,646 $ 9,573 $ 3,601 $ 14,860 $ 41,680 Basic earnings per share: Continuing operations $ 0.46 $ 0.32 $ 0.12 $ 0.50 $ 1.40 Discontinued operations — — — — 0.01 Basic earnings per share $ 0.46 $ 0.32 $ 0.12 $ 0.50 $ 1.41 Diluted earnings per share: Continuing operations $ 0.45 $ 0.32 $ 0.12 $ 0.49 $ 1.37 Discontinued operations — — — — 0.01 Diluted earnings per share $ 0.45 $ 0.32 $ 0.12 $ 0.49 $ 1.38 Dividends declared per common share $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.44 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The Company utilizes a 52- or 53-week reporting period ending on the last Sunday of December. The period ended December 31, 2017 (fiscal year 2017) had a 53-week reporting period. The periods ended December 29, 2019 (fiscal year 2019) and December 30, 2018 (fiscal year 2018) each had a 52-week reporting period. The consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles and include the financial statements of Ruth’s Hospitality Group, Inc. and its wholly owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | (b) Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use asset. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The Company adopted this new lease standard on December 31, 2018. See Note 4 for further information about our transition to this new lease standard. In June 2016 the FASB issued ASU 2016-13, Financial Instruments – Credit Losses. This update requires immediate recognition of management’s estimates of current expected credit losses. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2016-13 is not expected to have a significant impact on the Company’s ongoing financial reporting. In January 2017 the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Impairment Test for Goodwill. This update eliminated the calculation of implied goodwill fair value. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2017-04 is not expected to have a significant impact on the Company’s ongoing financial reporting. In August 2018 the FASB issued ASU 2018-13, Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This update eliminated the calculation of implied goodwill fair value. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2018-13 is not expected to have a significant impact on the Company’s ongoing financial reporting. In August 2018 the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This update aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2018-15 is not expected to have a significant impact on the Company’s ongoing financial reporting. In August 2018 the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. This update clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842. This update is effective for the Company in the first quarter of fiscal year 2020. The adoption of ASU 2018-19 is not expected to have a significant impact on the Company’s ongoing financial reporting. In December 2019 the FASB issued ASU 2019-12, Income Taxes (Topic 740). This update modifies Topic 740 to simplify the accounting for income taxes. This update is effective for the Company in the first quarter of fiscal year 2021. The adoption of ASU 2019-12 is not expected to have a significant impact on the Company’s ongoing financial reporting. |
Contingencies | (c) Contingencies The Company recognizes liabilities for contingencies when there is an exposure that indicates it is both probable that an asset has been impaired or that a liability has been incurred and that the amount of impairment or loss can be reasonably estimated. |
Cash Equivalents | (d) Cash Equivalents For purposes of the consolidated financial statements, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | (e) Accounts Receivable Accounts receivable consists primarily of bank credit cards receivable, landlord contributions, franchise royalty payments receivable, receivables from gift card sales, banquet billings receivable and other miscellaneous receivables. |
Allowance for Doubtful Accounts | (f) Allowance for Doubtful Accounts The Company performs a specific review of account balances and applies historical collection experience to the various aging categories of receivable balances in establishing an allowance. |
Inventories | (g) Inventories Inventories consist of food, beverages and supplies and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. |
Property and Equipment, net | (h) Property and Equipment, net Property and equipment are stated at cost. Expenditures for improvements and replacements are capitalized and maintenance and repairs are charged to expense. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the lease term or the estimated useful lives of the assets. The estimated useful lives for assets are as follows: Building and Building Improvements, 20 to 40 years; Equipment, 5 years; Furniture and Fixtures, 5 to 7 years; Computer Equipment, 3 to 5 years; and Leasehold Improvements, 5 to 20 years (limited by the lease term). |
Goodwill and Franchise Rights | (i) Goodwill and Franchise Rights Goodwill and intangible assets acquired in a business combination that are determined to have an indefinite useful life are not amortized, but reviewed for impairment at least annually in accordance with the provisions of FASB Accounting Standards Committee (ASC) Topic 350, Intangibles-Goodwill and Other. The annual testing date for determining whether goodwill and other intangible assets are impaired is the last day of the Company’s 48 th Franchise rights acquired prior to 2008 in a business combination that are determined to have an indefinite useful life are not amortized, but are reviewed for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. The Company allows and expects these franchisees to renew agreements indefinitely ensuring consistent cash flows. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. Franchise rights acquired after 2007 are no longer considered to have indefinite useful lives and are amortized in accordance with FASB ASC Topic 350 and reviewed for impairment under ASC Topic 360-10, Property, Plant and Equipment – Impairment and Disposal of Long-Lived Assets (Topic 360-10). |
Impairment or Disposal of Long-Lived Assets | (j) Impairment or Disposal of Long-Lived Assets In accordance with Topic 360-10, long lived assets, such as property and equipment, operating lease right-of-use (ROU) assets and purchased intangibles subject to amortization, are reviewed for impairment on a restaurant-by-restaurant basis whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the financial statement carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Key assumptions in the determination of fair value are the future after-tax cash flows of the restaurant and discount rate. The after-tax cash flows incorporate reasonable sales growth and margin improvement assumptions that would be expected by a franchisee in the determination of a purchase price for the restaurant. Estimates of future cash flows are highly subjective judgments and can be significantly impacted by changes in the business or economic conditions. The discount rate used in the fair value calculations is our estimate of the required rate of return that a market participant would expect to receive when purchasing a similar restaurant or groups of restaurants and the related long-lived assets. The discount rate incorporates rates of returns for historical refranchising market transactions and is commensurate with the risks and uncertainty inherent in the forecasted cash flows. We account for exit or disposal activities, including restaurant closures, in accordance with Topic 360-10. Such costs include the cost of disposing of the assets as well as other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. For restaurants operated under operating leases, on the date we commit to a plan to either abandon the related ROU asset or sublease the underlying asset, we evaluate the ROU asset for potential impairment and determine the go-forward accounting based on the requirements in ASC Topic 842, Leases. |
Deferred Financing Costs | (k) Deferred Financing Costs Deferred financing costs represent fees paid in connection with obtaining bank and other long-term financing. The Company paid $36 thousand in financing costs in fiscal year 2019, $413 thousand in financing costs in fiscal year 2017 and no financing costs during fiscal year 2018. The Company amortizes deferred financing costs using a method that approximates the effective interest method over the term of the related financing. Amortization of deferred financing costs was $86 thousand in fiscal year 2019, $82 thousand in fiscal year 2018 and $119 thousand in fiscal year 2017 and is included in interest expense on the consolidated statements of income. |
Revenues | (l) Revenues Revenues are derived principally from food and beverage sales. The Company does not rely on any major customers as a source of revenue. Restaurant Sales. Restaurant sales consist of food and beverage sales by Company-owned restaurants. Revenue from restaurant sales is recognized when food and beverage products are sold. Restaurant sales are presented net of sales taxes and discounts. Gratuities remitted by customers for the benefit of restaurant staff are not included in either revenues or operating expenses. Restaurant sales are primarily influenced by total operating weeks in the relevant period and comparable restaurant sales growth. Total operating weeks is the total number of Company-owned restaurants multiplied by the number of weeks each is in operation during the relevant period. Comparable restaurant sales growth reflects the change in year-over-year or quarter-over-quarter, as applicable, sales for the comparable restaurants. The Company defines comparable restaurants to be those Company-owned restaurants in operation for not less than eighteen months prior to the beginning of the fiscal year. Franchise Income. Franchise income includes (1) royalty income and (2) franchise and development fees charged to franchisees. Franchise royalties consist of 5.0% of adjusted gross sales from each franchisee-owned restaurant. In addition, our more recent franchise agreements require up to a 1.0% of adjusted gross sales advertising fee to be paid by the franchisee, which is applied to national advertising expenditures. Effective in fiscal year 2018, both the 5.0% royalty and the sales based advertising fees are included in franchise income on the consolidated statements of income. Prior to the adoption of ASC Topic 606, Revenue from Contracts with Customers (Topic 606), the Company recorded advertising contributions from franchisees as a liability against which specific marketing and advertising costs were charged, which reduced the Company’s marketing expense on the consolidated statements of income. Effective with fiscal year 2018, the Company recognizes franchise development and opening fees over the life of the applicable franchise agreements. Prior to the adoption of Topic 606, the Company recognized franchise development and opening fees when a franchisee-owned restaurant opened. Other Operating Income. Other operating income consists primarily of breakage income associated with gift cards, and also includes fees earned from management agreements, banquet-related guarantee and services revenue and other incidental guest fees. The Company’s accounting method for recognizing gift card breakage revenue is the redemption method. Under the redemption method, gift card breakage revenue is recognized and the gift card liability is derecognized for unredeemed gift cards in proportion to actual gift card redemptions based on historical breakage rates. Deferred Revenue. Deferred revenue primarily includes (1) the Company’s liability for gift cards that have been sold but not yet redeemed and (2) the Company’s liability for franchise development and opening fees that will be recognized over the life of the applicable franchise agreements. When gift cards are redeemed (typically within five years), the Company recognizes restaurant sales and reduces the deferred revenue liability. A portion of gift cards redeemed are used by customers to pay for sales taxes and gratuities, neither of which results in Company restaurant sales. Company issued gift cards redeemed at franchisee-owned restaurants result in royalty based franchise income and reduce the deferred revenue liability. The expected redemption value of gift cards represents the full consideration received for all gift cards issued less the amount the Company has recognized as other operating income for gift cards that are not expected to be redeemed (gift card breakage). The Company recognized gift card breakage revenue of $3.9 million in fiscal year 2019 and $2.9 million in fiscal years 2018 and 2017. |
International Revenues | (m) International Revenues The Company currently has 21 international franchisee-owned restaurants in Aruba, Canada, China, Hong Kong, Indonesia, Japan, Mexico, Singapore and Taiwan. In accordance with its franchise agreements relating to these international restaurants, the Company receives royalty revenue from these franchisees in U.S. dollars. Franchise fee revenues from international restaurants were $2.9 million, $2.7 million and $2.9 million in fiscal years 2019, 2018 and 2017, respectively. |
Rent | (n) Rent Certain of the Company’s operating leases contain predetermined fixed escalations of the minimum rent during the term of the lease. For these leases, the Company recognizes the related rent expense on a straight-line basis over the life of the lease and records the difference between amounts charged to operations and amounts paid as an operating lease right-of-use (ROU) asset. Additionally, certain of the Company’s operating leases contain clauses that provide additional contingent rent based on a percentage of sales greater than certain specified target amounts. The Company recognizes contingent rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of that target is considered probable. |
Marketing and Advertising | (o) Marketing and Advertising Marketing and advertising expenses in the accompanying consolidated statements of income include expenses related to advertising, online initiatives, traditional public relations and consumer research. Advertising expenses were $6.3 million, $6.8 million and $6.7 million in fiscal years 2019, 2018 and 2017, respectively. Advertising costs are expensed as incurred. |
Insurance Liability | (p) Insurance Liability The Company maintains various policies for workers’ compensation, employee health, general liability and property damage. Pursuant to those policies, the Company is responsible for losses up to certain limits. The Company records liabilities for the estimated exposure for aggregate losses below those limits. The recorded liabilities are based on estimates of the ultimate costs to be incurred to settle known claims and claims incurred but not reported as of the balance sheet date. The estimated liabilities are not discounted and are based on a number of assumptions and factors, including historical trends, actuarial assumptions and economic conditions. Independent actuaries are used to develop estimates of the workers’ compensation, general and employee health care liabilities. |
Stock-Based Compensation | (q) Stock-Based Compensation The Company recognizes stock-based compensation in accordance with FASB ASC Topic 718, Compensation—Stock Compensation, (Topic 718). Stock-based compensation cost includes compensation cost for all share-based payments granted based on the grant date fair value estimated in accordance with the provisions of Topic 718. Compensation cost is recognized on a straight-line basis over the requisite service period of each award. The Company does not estimate forfeitures when recognizing compensation expense. Forfeitures are accounted for as they occur. |
Pre-Opening Costs | (r) Pre-Opening Costs Pre-opening costs incurred with the opening of new restaurants are expensed as incurred. These costs include rent expense, wages, benefits, travel and lodging for the training and opening management teams, and food, beverage and other restaurant operating expenses incurred prior to a restaurant opening for business. |
Income Taxes | (s) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company applies the provisions of FASB ASC Topic 740, Income Taxes (Topic 740). Topic 740 requires that a position taken or expected to be taken in a tax return be recognized (or derecognized) in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company’s continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. |
Discontinued Operations | (t) Discontinued Operations The Company accounts for its closed restaurants in accordance with the provisions of FASB ASC Topic 360, Property, Plant and Equipment. For fiscal years 2019, 2018 and 2017, all impairment charges, loss on disposal and remeasurement of lease liabilities along with restaurant sales, direct recurring costs and expenses and income taxes attributable to restaurants classified as discontinued operations have been aggregated to a single caption entitled loss from discontinued operations, net of tax benefit in the consolidated statements of income for all periods presented. |
Earnings Per Share | (u) Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by dividing net income by the diluted weighted average shares of common stock outstanding during each period. Potentially dilutive securities include shares of non-vested stock awards. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an antidilutive effect. Stock awards are excluded from the calculation of diluted earnings per share in the event they are antidilutive. |
The Company, Organization and_2
The Company, Organization and Description of Business (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Restaurants | 13 Weeks Ending 52 Weeks Ending December 29, 2019 December 29, 2019 Ruth's Chris Steak House Company Franchised Managed Total Company Franchised Managed Total Beginning of period 81 73 3 157 78 75 3 156 Acquired 0 0 0 0 3 0 0 3 Sold 0 0 0 0 0 3 0 3 New 2 0 0 2 2 1 0 3 Closed 0 0 0 0 0 0 0 0 End of period 83 73 3 159 83 73 3 159 % of total 52 % 46 % 2 % 100 % 52 % 46 % 2 % 100 % |
Franchisee Acquisition (Tables)
Franchisee Acquisition (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
MBR Franchise Acquisition Restaurants [Member] | |
Summary of Allocation of Purchase Price | The allocation of purchase price is as follows (in thousands): Balances at December 29, 2019 Current assets $ 387 Property and equipment 2,398 Goodwill 9,027 Franchise Rights 7,100 Other intangibles 475 Total assets acquired $ 19,387 Current liabilities 725 Other liabilities 43 Total liabilities assumed $ 768 Net assets acquired $ 18,619 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Schedule of Components of Lease Expense | The components of lease expense are as follows (in thousands): Fiscal Year Ended Classification December 29, 2019 Operating lease cost Restaurant operating expenses and General and administrative costs $ 27,141 Variable lease cost Restaurant operating expenses and General and administrative costs 10,736 Total lease cost $ 37,877 |
Schedule of Maturities of Lease Liabilities | As of December 29, 2019, maturities of lease liabilities are summarized as follows (in thousands): Company Total 2020 $ 28,593 2021 28,088 2022 27,010 2023 24,089 2024 23,889 Thereafter 203,131 334,800 Imputed interest (97,195 ) $ 237,605 |
Schedule of Future Minimum Annual Rental Commitments for Operating Leases Prior to Adoption of ASC 842 | Under the previous lease accounting prior to the adoption of ASC842, future minimum annual rental commitments for operating leases as of December 30, 2018 were as follows (in thousands): Company Total 2019 $ 25,767 2020 24,177 2021 22,520 2022 21,388 2023 18,858 Thereafter 154,661 $ 267,371 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Fiscal Year Ended December 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 26,660 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 56,608 |
ASC 842 [Member] | |
Summary of Impact of Adopting Topics Company's Consolidated Financial Statements | The Company did not experience material changes to either the consolidated statements of income or the consolidated statements of cash flows due to the adoption of Topic 842. The following table summarizes the impacts of adopting Topic 842 on the Company’s condensed consolidated balance sheet as of December 31, 2018 (in thousands): December 30, Adjustments Due 2018 to the Adoption December 31, As Reported of ASC 842 2018 Assets Current assets: Cash and cash equivalents $ 5,062 $ — $ 5,062 Accounts receivable, less allowance for doubtful accounts 19,476 812 20,288 Inventory 9,296 — 9,296 Prepaid expenses and other 2,528 — 2,528 Total current assets 36,362 812 37,174 Property and equipment, net of accumulated depreciation 125,991 — 125,991 Operating lease right of use assets — 166,040 166,040 Goodwill 36,522 — 36,522 Franchise rights, net of accumulated amortization 44,919 — 44,919 Other intangibles, net of accumulated amortization 4,862 (758 ) 4,104 Deferred income taxes 5,353 413 5,766 Other assets 604 — 604 Total assets $ 254,613 $ 166,507 $ 421,120 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 10,273 $ — $ 10,273 Accrued payroll 19,475 — 19,475 Accrued expenses 10,535 — 10,535 Deferred revenue 48,370 — 48,370 Current operating lease liabilities — 16,707 16,707 Other current liabilities 6,619 (1,698 ) 4,921 Total current liabilities 95,272 15,009 110,281 Long-term debt 41,000 — 41,000 Operating lease liabilities — 178,256 178,256 Deferred rent 23,692 (23,692 ) — Unearned franchise fees 2,680 — 2,680 Other liabilities 1,837 (1,805 ) 32 Total liabilities 164,481 167,768 332,249 Commitments and contingencies (Note 11) — — — Shareholders' equity: Common stock, par value $.01 per share; 100,000,000 shares authorized, 29,268,776 shares issued and outstanding at December 30, 2018 293 — 293 Additional paid-in capital 61,819 — 61,819 Retained earnings 28,020 (1,261 ) 26,759 Treasury stock, at cost; 71,950 shares at December 30, 2018 — — — Total shareholders' equity 90,132 (1,261 ) 88,871 Total liabilities and shareholders' equity $ 254,613 $ 166,507 $ 421,120 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Summary of Disaggregated Revenue by Major Component for Each Category | In the following tables, the Company’s revenue is disaggregated by major component for each category on the consolidated statements of income (in thousands). 52 Weeks Ended December 29, 2019: Domestic International Total Revenue Restaurant sales $ 441,361 $ — $ 441,361 Franchise income 15,004 2,875 17,879 Other operating income 8,786 — 8,786 Total revenue $ 465,151 $ 2,875 $ 468,026 52 Weeks Ended December 30, 2018: Domestic International Total Revenue Restaurant sales $ 427,433 $ — $ 427,433 Franchise income 15,194 2,725 17,919 Other operating income 6,982 — 6,982 Total revenue $ 449,609 $ 2,725 $ 452,334 53 Weeks Ended December 31, 2017: Domestic International Total Revenue Restaurant sales $ 390,434 $ — $ 390,434 Franchise income 14,596 2,949 17,545 Other operating income 6,844 — 6,844 Total revenue $ 411,874 $ 2,949 $ 414,823 |
Summary of Receivables and Deferred Revenue Liabilities from Contract with Customers and Significant Changes in Deferred Revenue and Unearned Franchise Fees | The following table provides information about receivables and deferred revenue liabilities from contracts with customers (in thousands). December 29, December 30, 2019 2018 Accounts receivable, less allowance for doubtful accounts 2019 - $241; 2018 - $322 $ 19,615 $ 18,336 Deferred revenue $ 52,856 $ 48,370 Unearned franchise fees $ 2,489 $ 2,680 Significant changes in the deferred revenue balance and the unearned franchise fees balance during the fifty-two weeks of fiscal years 2019 and 2018 are presented in the following table (in thousands). Deferred Unearned Revenue Franchise Fees Balance at December 31, 2017 $ 42,596 $ — Increase (decrease) due to the cumulative effect of adopting Topic 606 (22 ) 3,092 Decreases in the beginning balance from gift card redemptions (29,103 ) — Increases due to proceeds received, excluding amounts recognized during the period 34,861 — Decreases due to recognition of franchise development and opening fees — (419 ) Other 38 7 Balance at December 30, 2018 48,370 2,680 Decreases in the beginning balance from gift card redemptions (30,970 ) — Increases due to proceeds received, excluding amounts recognized during the period 34,903 — MBR Franchisee Acquisition assumed liability, excluding amounts recognized during the period 563 — Decreases due to recognition of franchise development and opening fees — (191 ) Other (10 ) — Balance at December 29, 2019 $ 52,856 $ 2,489 |
Summary of Recognition of Revenue Related to Deferred Franchise Development and Opening Fees | The projected recognition of revenue related to deferred franchise development and opening fees is as follows (in thousands). Balance as of December 29, 2019 Fiscal Year 2020 Fiscal Year 2021 Fiscal Years 2022-2024 More Than 5 Years Franchise development and opening fees $ 2,489 $ 236 $ 236 $ 709 $ 1,308 |
ASC Topic 606 [Member] | |
Summary of Impact of Adopting Topics Company's Consolidated Financial Statements | The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for fiscal year 2018 (in thousands). December 30, 2018 As Reported Adjustments Balances without adoption of Topic 606 Assets Current assets: Cash and cash equivalents $ 5,062 $ — $ 5,062 Accounts receivable, less allowance for doubtful accounts 2018 - $322; 2017 - $361 19,476 — 19,476 Inventory 9,296 — 9,296 Prepaid expenses and other 2,528 — 2,528 Total current assets 36,362 — 36,362 Property and equipment, net of accumulated depreciation 2018 - $160,153; 2017 - $144,373 125,991 — 125,991 Goodwill 36,522 — 36,522 Franchise rights, net of accumulated amortization 2018 - $2,299; 2017 - $396 44,919 — 44,919 Other intangibles, net of accumulated amortization 2018 - $1,395; 2017 - $1,181 4,862 — 4,862 Deferred income taxes 5,353 (686 ) 4,667 Other assets 604 — 604 Total assets $ 254,613 $ (686 ) $ 253,927 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 10,273 $ — $ 10,273 Accrued payroll 19,475 — 19,475 Accrued expenses 10,535 — 10,535 Deferred revenue 48,370 (121 ) 48,249 Other current liabilities 6,619 — 6,619 Total current liabilities 95,272 (121 ) 95,151 Long-term debt 41,000 — 41,000 Deferred rent 23,692 — 23,692 Unearned franchise fees 2,680 (2,680 ) — Other liabilities 1,837 — 1,837 Total liabilities 164,481 (2,801 ) 161,680 Commitments and contingencies — — — Shareholders' equity: Common stock, par value $.01 per share; 100,000,000 shares authorized, 29,268,776 shares issued and outstanding at December 30, 2018, 29,645,790 shares issued and outstanding at December 31, 2017 293 — 293 Additional paid-in capital 61,819 — 61,819 Retained earnings 28,020 2,115 30,135 Treasury stock, at cost; 71,950 shares at December 30, 2018 and December 31, 2017 — — — Total shareholders' equity 90,132 2,115 92,247 Total liabilities and shareholders' equity $ 254,613 $ (686 ) $ 253,927 52 Weeks Ended December 30, 2018 Balances without As Reported Adjustments adoption of Topic 606 Revenues: Restaurant sales $ 427,433 $ 1,058 (1) $ 428,491 Franchise income 17,919 (1,577 ) (2) 16,342 Other operating income 6,982 — 6,982 Total revenues 452,334 (519 ) 451,815 Costs and expenses: Food and beverage costs 120,112 — 120,112 Restaurant operating expenses 206,258 — 206,258 Marketing and advertising 16,639 (399 ) (3) 16,240 General and administrative costs 37,253 — 37,253 Depreciation and amortization expenses 18,538 — 18,538 Pre-opening costs 1,875 — 1,875 Total costs and expenses 400,675 (399 ) 400,276 Operating income 51,659 (120 ) 51,539 Other income (expense): Interest expense, net (1,739 ) — (1,739 ) Other (73 ) — (73 ) Income from continuing operations before income tax expense 49,847 (120 ) 49,727 Income tax expense 8,247 (29 ) (4) 8,218 Income from continuing operations 41,600 (91 ) 41,509 Income from discontinued operations, net of income taxes 80 — 80 Net income $ 41,680 $ (91 ) $ 41,589 (1) The reclassification of discounts recognized on the sale of gift cards from marketing expense to restaurant sales on the consolidated statements of income totaled $1.1 million for fiscal year 2018. (2) In fiscal year 2018, the Company recognized $1.5 million of advertising contributions from franchisees and $119 thousand of franchise development and opening fees in excess of fees that would have been recognized had Topic 606 not been adopted. (3) The Company recognized $1.5 million and of advertising contributions from franchisees in fiscal year 2018, which prior to the adoption of Topic 606 were recognized as a reduction to marketing and advertising expense. Discounts recognized on the sale of gift cards were reclassified from marketing expense to restaurant sales on the consolidated statements of income, which totaled $1.1 million in fiscal year 2018. (4) Income tax expense related to the pre-tax income impact of the adjustments is calculated using the Company’s marginal federal and state income tax rates. 52 Weeks Ended December 30, 2018 As Reported Adjustments Balances without adoption of Topic 606 Cash flows from operating activities: Net income $ 41,680 $ (91 ) $ 41,589 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 18,538 — 18,538 Deferred income taxes 341 — 341 Non-cash interest expense 82 — 82 Debt issuance costs written-off — — — Gain on the disposal of property and equipment, net 55 — 55 Loss on impairment — — — Amortization of below market lease 79 — 79 Stock-based compensation expense 7,647 — 7,647 Changes in operating assets and liabilities: Accounts receivable 2,151 — 2,151 Inventories (608 ) — (608 ) Prepaid expenses and other 151 — 151 Other assets (42 ) — (42 ) Accounts payable and accrued expenses 2,590 — 2,590 Deferred revenue 5,383 120 5,503 Deferred rent 1,462 — 1,462 Other liabilities (1,215 ) (29 ) (1,244 ) Net cash provided by operating activities 78,294 — 78,294 Net cash used in investing activities (31,907 ) — (31,907 ) Net cash used in financing activities (45,376 ) — (45,376 ) Net increase in cash and cash equivalents $ 1,011 — $ 1,011 |
Franchise Rights and Goodwill (
Franchise Rights and Goodwill (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Values of Franchise Rights and Other Intangible Assets | The financial statement carrying values of the Company’s franchise rights and other intangible assets were as follows (amounts in thousands): Weighted Average Amortization Period Gross Carrying Value Accumulated Amortization Net Carrying Value Amortizing intangible assets: Franchise rights 7.2 yrs $ 22,117 $ (4,401 ) $ 17,716 Lease assets 10.9 yrs 2,000 (1,083 ) 917 Other assets 2.9 yrs 490 (356 ) 134 24,607 (5,840 ) 18,767 Indefinite-lived intangible assets: Franchise rights 32,200 - 32,200 Liquor licenses 3,280 - 3,280 Other assets 118 - 118 35,598 - 35,598 Total intangible assets $ 60,205 $ (5,840 ) $ 54,365 |
Carrying Values of Goodwill | The financial statement carrying values of the Company’s goodwill was as follows (amounts in thousands): Gross Goodwill Accumulated Goodwill Impairment Losses Net Carrying Value of Goodwill Balance as of December 30, 2018 $ 47,080 $ (10,558 ) $ 36,522 Balance as of December 29, 2019 $ 56,107 $ (10,558 ) $ 45,549 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following (amounts in thousands): December 29, December 30, 2019 2018 Land $ 616 $ 616 Building and building improvements 25,477 25,163 Equipment 44,227 41,852 Computer equipment 16,472 12,085 Furniture and fixtures 27,758 25,049 Leasehold improvements 192,096 167,650 Construction-in-progress 10,161 13,729 316,807 286,144 Less accumulated depreciation (173,845 ) (160,153 ) $ 142,962 $ 125,991 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following (amounts in thousands): December 29, December 30, 2019 2018 Senior Credit Facility: Revolving credit facility $ 64,000 $ 41,000 Less current maturities — — $ 64,000 $ 41,000 |
Franchise Operations (Tables)
Franchise Operations (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Franchise Income | The Company classifies franchise income separately in the consolidated statements of income (in thousands): Fiscal Year 2019 2018 2017 Franchise income: Income from existing franchise locations $ 17,689 $ 17,500 $ 17,335 Opening and development fee income 190 419 210 Total franchise income: $ 17,879 $ 17,919 $ 17,545 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Stockholders Equity Note [Abstract] | |
Schedule of Dividends Declared and Payable | The Company’s Board of Directors declared the following dividends during the periods presented (amounts in thousands, except per share amounts): Declaration Date Dividend per Share Record Date Total Amount Payment Date Fiscal Year 2019 February 22, 2019 $ 0.13 March 7, 2019 $ 3,967 March 21, 2019 May 3, 2019 $ 0.13 May 23, 2019 $ 3,931 June 6, 2019 August 2, 2019 $ 0.13 August 22, 2019 $ 3,854 September 5, 2019 November 1, 2019 $ 0.13 November 21, 2019 $ 3,814 December 5, 2019 Fiscal Year 2018 February 21, 2018 $ 0.11 March 8, 2018 $ 3,390 March 22, 2018 May 4, 2018 $ 0.11 May 24, 2018 $ 3,397 June 7, 2018 August 10, 2018 $ 0.11 August 23, 2018 $ 3,389 September 6, 2018 November 2, 2018 $ 0.11 November 15, 2018 $ 3,351 November 29, 2018 Fiscal Year 2017 February 17, 2017 $ 0.09 February 23, 2017 $ 2,862 March 9, 2017 May 5, 2017 $ 0.09 May 18, 2017 $ 2,862 June 1, 2017 July 28, 2017 $ 0.09 August 10, 2017 $ 2,844 August 24, 2017 November 3, 2017 $ 0.09 November 9, 2017 $ 2,815 November 22, 2017 |
Incentive Stock Option Plans (T
Incentive Stock Option Plans (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Non-vested Restricted Stock | A summary of the status of non-vested restricted stock as of December 29, 2019 and changes during fiscal year 2019 is presented below. 2019 Shares Weighted-Average Grant-Date Fair Value Per Share Non-vested shares at beginning of year 1,078,571 $ 20.44 Granted 297,457 24.42 Vested (448,606 ) 17.56 Forfeited (5,000 ) 19.73 Non-vested shares at end of year 922,422 $ 23.13 |
Summary of Stock Option Activity | The following table summarizes stock option activity for fiscal year 2019: 2019 Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value ($000's) Outstanding at beginning of year 5,073 $ 3.07 Granted — — Exercised (5,073 ) 3.07 Forfeited — — Outstanding at end of year — $ — — $ — Options exercisable at year end — $ — — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Income Tax Expense (Benefit) | Total income tax expense (benefit) for fiscal years 2019, 2018, and 2017 was (in thousands): 2019 2018 2017 Income tax expense from continuing operations $ 8,173 $ 8,247 $ 15,669 Income tax expense (benefit) from discontinued operations — 26 (68 ) Total consolidated income tax expense $ 8,173 $ 8,273 $ 15,601 |
Income Tax Expense From Continuing Operations | Income tax expense from continuing operations consists of the following (in thousands): Current Deferred Total Year ended December 29, 2019 U.S. Federal $ 4,350 $ 563 $ 4,913 State 2,685 274 2,959 Foreign 301 — 301 $ 7,336 $ 837 $ 8,173 Year ended December 30, 2018 U.S. Federal $ 4,851 $ 326 $ 5,177 State 2,723 14 2,737 Foreign 333 — 333 $ 7,907 $ 340 $ 8,247 Year ended December 31, 2017 U.S. Federal $ 8,431 $ 4,557 $ 12,988 State 1,916 422 2,338 Foreign 343 — 343 $ 10,690 $ 4,979 $ 15,669 |
Schedule of Effective Income Tax Rate Reconciliation | 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 (in thousands): 2019 2018 2017 Income tax expense at statutory rates $ 10,580 $ 10,468 $ 16,070 Increase (decrease) in income taxes resulting from: State income taxes, net of federal benefit 2,317 1,886 1,316 Employment-related tax credits, net (4,976 ) (4,628 ) (3,389 ) Non-deductible executive compensation 1,023 1,234 729 Stock-based compensation (392 ) (542 ) (349 ) Impact of the 2017 Tax Act — (669 ) 1,086 Other (379 ) 498 206 $ 8,173 $ 8,247 $ 15,669 Effective tax rate 16.2 % 16.5 % 34.1 % |
Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets are presented below (in thousands): 2019 2018 Deferred tax assets: Accounts payable and accrued expenses $ 9,171 $ 8,835 Operating lease liabilities 60,473 — Deferred rent — 6,267 Net state operating loss carryforwards 3,598 3,674 Tax credit carryforwards 450 502 Other 60 128 Total gross deferred tax assets 73,752 19,406 Less valuation allowance (1,926 ) (1,897 ) Net deferred tax assets 71,826 17,509 Deferred tax liabilities: Property and equipment (1,590 ) (539 ) Intangible assets (12,533 ) (11,617 ) Operating lease right of use assets (52,774 ) — Total gross deferred tax liabilities (66,897 ) (539 ) Net deferred tax assets $ 4,929 $ 16,970 |
Unrecognized Tax Benefit Reconciliation | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows (amounts in thousands): Unrecognized tax benefits balance at December 30, 2018 $ 607 Gross increases for tax positions of prior years 9 Reductions due to settlements with taxing authorities (333 ) Unrecognized tax benefits balance at December 29, 2019 $ 283 |
Discontinued Operations [Member] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. statutory tax rate to the effective tax rate applicable to discontinued operations for fiscal years 2019, 2018 and 2017 follows (in thousands): 2019 2018 2017 Income tax benefit at statutory rates $ — $ 22 $ (62 ) Increase (decrease) in income taxes resulting from: State income taxes at state statutory rate, net of federal impact — 4 (6 ) $ — $ 26 $ (68 ) Effective tax rate N/A 24.6 % 38.6 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic earnings per common share (amounts in thousands, except share and per share data): Fiscal Year 2019 2018 2017 Income from continuing operations $ 42,206 $ 41,600 $ 30,245 Income (loss) from discontinued operations, net of income taxes — 80 (108 ) Net income $ 42,206 $ 41,680 $ 30,137 Shares: Weighted average number of common shares outstanding - basic 28,998,382 29,659,461 30,346,999 Basic earnings (loss) per common share: Continuing operations $ 1.46 $ 1.40 $ 1.00 Discontinued operations — 0.01 (0.01 ) Basic earnings per common share $ 1.46 $ 1.41 $ 0.99 The following table sets forth the computation of diluted earnings per share (amounts in thousands, except share and per share data): Fiscal Year 2019 2018 2017 Income from continuing operations $ 42,206 $ 41,600 $ 30,245 Income (loss) from discontinued operations, net of income taxes — 80 (108 ) Net income $ 42,206 $ 41,680 $ 30,137 Shares: Weighted average number of common shares outstanding - basic 28,998,382 29,659,461 30,346,999 Dilutive shares 378,598 614,380 569,365 Weighted average number of common shares outstanding - diluted 29,376,980 30,273,841 30,916,364 Diluted earnings (loss) per common share: Continuing operations $ 1.44 $ 1.37 $ 0.98 Discontinued operations — 0.01 (0.01 ) Diluted earnings per common share $ 1.44 $ 1.38 $ 0.97 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Information, Operating Profit (Loss) | Fiscal Year 2019 2018 2017 (dollar amounts in thousands) Revenues: Company-owned steakhouse restaurants $ 446,257 $ 431,536 $ 394,359 Franchise operations 17,879 17,919 17,545 Unallocated other revenue and revenue discounts 3,890 2,879 2,919 Total revenues $ 468,026 $ 452,334 $ 414,823 Segment profits: Company-owned steakhouse restaurants $ 103,945 $ 105,166 $ 92,554 Franchise operations 17,879 17,919 17,545 Total segment profit 121,824 123,085 110,099 Unallocated operating income 3,890 2,879 2,919 Marketing and advertising expenses (15,432 ) (16,639 ) (12,724 ) General and administrative costs (34,643 ) (37,253 ) (32,700 ) Depreciation and amortization expenses (21,354 ) (18,538 ) (14,995 ) Pre-opening costs (1,824 ) (1,875 ) (2,013 ) Loss on impairment — — (3,904 ) Interest expense, net (2,197 ) (1,739 ) (821 ) Other income 115 (73 ) 53 Income from continuing operations before income tax expense $ 50,379 $ 49,847 $ 45,914 Capital expenditures: Company-owned steakhouse restaurants $ 30,026 $ 29,433 $ 20,363 Corporate assets 1,642 2,474 892 Total capital expenditures $ 31,668 $ 31,907 $ 21,255 |
Segment Information, Assets | Fiscal Year December 29, December 30, December 31, 2019 2018 2017 (dollar amounts in thousands) Total assets: Company-owned steakhouse restaurants $ 471,756 $ 233,446 $ 223,354 Franchise operations 2,435 2,911 3,021 Corporate assets - unallocated 17,756 12,903 10,774 Deferred income taxes - unallocated 4,929 5,353 4,947 Total assets $ 496,876 $ 254,613 $ 242,096 |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Statement Information (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Summary of Accounts Receivable | December 29, December 30, 2019 2018 Bank credit card receivables $ 7,669 $ 7,223 Landlord contributions 3,565 531 Franchise fees 2,354 2,759 Trade 1,065 932 Receivable from gift card issuances 8,802 7,630 Other 555 723 Allowance for doubtful accounts (241 ) (322 ) $ 23,769 $ 19,476 |
Summary of Other Assets | December 29, December 30, 2019 2018 Deposits $ 497 $ 348 Deferred financing costs, net 205 256 $ 702 $ 604 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | Summarized unaudited quarterly financial data (amounts in thousands, except per share information): Quarter Ended March 31, June 30, September 29, December 29, 2019 2019 2019 2019 Total Total revenues $ 119,741 $ 110,243 $ 103,009 $ 135,033 $ 468,026 Cost and expenses (102,898 ) (98,597 ) (97,438 ) (116,633 ) (415,565 ) Operating income 16,843 11,646 5,571 18,400 52,461 Interest expense, net (405 ) (417 ) (638 ) (737 ) (2,197 ) Other 2 13 18 82 115 Income from continuing operations before income tax expense 16,440 11,242 4,951 17,745 50,379 Income tax expense 2,529 1,933 423 3,287 8,173 Income from continuing operations 13,911 9,309 4,528 14,458 42,206 Discontinued operations, net of income tax - - - - - Net income (loss) $ 13,911 $ 9,309 $ 4,528 $ 14,458 $ 42,206 Basic earnings per share: Continuing operations $ 0.48 $ 0.32 $ 0.16 $ 0.51 $ 1.46 Discontinued operations — — — — — Basic earnings per share $ 0.48 $ 0.32 $ 0.16 $ 0.51 $ 1.46 Diluted earnings per share: Continuing operations $ 0.47 $ 0.31 $ 0.16 $ 0.50 $ 1.44 Discontinued operations — — — — — Diluted earnings per share $ 0.47 $ 0.31 $ 0.16 $ 0.50 $ 1.44 Dividends declared per common share $ 0.13 $ 0.13 $ 0.13 $ 0.13 $ 0.52 Quarter Ended April 1, July 1, September 30, December 30, 2018 2018 2018 2018 Total Total revenues $ 116,526 $ 109,635 $ 99,015 $ 127,159 $ 452,334 Cost and expenses (100,138 ) (97,930 ) (94,161 ) (108,446 ) (400,675 ) Operating income 16,388 11,705 4,854 18,713 51,659 Interest expense, net (380 ) (403 ) (470 ) (486 ) (1,739 ) Other 12 22 (65 ) (42 ) (73 ) Income from continuing operations before income tax expense 16,020 11,324 4,319 18,185 49,847 Income tax expense 2,384 1,763 727 3,375 8,247 Income from continuing operations 13,636 9,561 3,592 14,810 41,600 Discontinued operations, net of income tax 10 12 9 50 80 Net income $ 13,646 $ 9,573 $ 3,601 $ 14,860 $ 41,680 Basic earnings per share: Continuing operations $ 0.46 $ 0.32 $ 0.12 $ 0.50 $ 1.40 Discontinued operations — — — — 0.01 Basic earnings per share $ 0.46 $ 0.32 $ 0.12 $ 0.50 $ 1.41 Diluted earnings per share: Continuing operations $ 0.45 $ 0.32 $ 0.12 $ 0.49 $ 1.37 Discontinued operations — — — — 0.01 Diluted earnings per share $ 0.45 $ 0.32 $ 0.12 $ 0.49 $ 1.38 Dividends declared per common share $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.44 |
The Company, Organization and_3
The Company, Organization and Description of Business (Details Textual) $ in Millions | Jul. 29, 2019USD ($) | Dec. 12, 2017USD ($) | Dec. 29, 2019Restaurant | Dec. 29, 2019Restaurant | Sep. 29, 2019Restaurant | Dec. 30, 2018Restaurant |
MBR Franchise Acquisition Restaurants [Member] | ||||||
Acquisition of franchise restaurant, net of cash acquired | $ | $ 18.6 | |||||
Hawaiian Restaurants [Member] | ||||||
Acquisition of franchise restaurant, net of cash acquired | $ | $ 35.4 | |||||
Ruths Chris Steak House [Member] | ||||||
Number of Restaurants | 159 | 159 | 157 | 156 | ||
Number of Restaurants Opened During Period | 2 | 3 | ||||
Ruths Chris Steak House [Member] | Contractual Agreement [Member] | ||||||
Number of Restaurants | 3 | 3 | ||||
Ruths Chris Steak House [Member] | Company [Member] | ||||||
Number of Restaurants | 83 | 83 | 81 | 78 | ||
Number of Restaurants Opened During Period | 2 | 2 | ||||
Ruths Chris Steak House [Member] | Company [Member] | Columbus, OH and Somerville, MA [Member] | ||||||
Number of Restaurants Opened During Period | 2 | |||||
Ruths Chris Steak House [Member] | Franchised Units [Member] | ||||||
Number of Restaurants | 73 | 73 | 73 | 75 | ||
Number of Restaurants Opened During Period | 0 | 1 | ||||
Ruths Chris Steak House [Member] | Franchised Units [Member] | International [Member] | ||||||
Number of Restaurants | 21 | 21 | ||||
Ruths Chris Steak House [Member] | Franchised Units [Member] | Chongqing China [Member] | ||||||
Number of Restaurants Opened During Period | 1 |
The Company, Organization and_4
The Company, Organization and Description of Business - Summary of Restaurants (Details) - Ruths Chris Steak House [Member] | 3 Months Ended | 12 Months Ended |
Dec. 29, 2019Restaurant | Dec. 29, 2019Restaurant | |
Company Organization And Description Of Business [Line Items] | ||
Beginning of period | 157 | 156 |
Acquired | 0 | 3 |
Sold | 0 | 3 |
New | 2 | 3 |
Closed | 0 | 0 |
End of period | 159 | 159 |
% of total | 100.00% | 100.00% |
Company [Member] | ||
Company Organization And Description Of Business [Line Items] | ||
Beginning of period | 81 | 78 |
Acquired | 0 | 3 |
Sold | 0 | 0 |
New | 2 | 2 |
Closed | 0 | 0 |
End of period | 83 | 83 |
% of total | 52.00% | 52.00% |
Franchised Units [Member] | ||
Company Organization And Description Of Business [Line Items] | ||
Beginning of period | 73 | 75 |
Acquired | 0 | 0 |
Sold | 0 | 3 |
New | 0 | 1 |
Closed | 0 | 0 |
End of period | 73 | 73 |
% of total | 46.00% | 46.00% |
Managed [Member] | ||
Company Organization And Description Of Business [Line Items] | ||
Beginning of period | 3 | 3 |
Acquired | 0 | 0 |
Sold | 0 | 0 |
New | 0 | 0 |
Closed | 0 | 0 |
End of period | 3 | 3 |
% of total | 2.00% | 2.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019USD ($)Restaurant | Sep. 29, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jul. 01, 2018USD ($) | Apr. 01, 2018USD ($) | Dec. 29, 2019USD ($)Restaurant | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Payments of financing costs | $ 36 | $ 0 | $ 413 | ||||||||
Amortization of deferred financing costs | 86 | 82 | 119 | ||||||||
Gift card breakage revenue recognized | 3,900 | 2,900 | 2,900 | ||||||||
Revenues | $ 135,033 | $ 103,009 | $ 110,243 | $ 119,741 | $ 127,159 | $ 99,015 | $ 109,635 | $ 116,526 | 468,026 | 452,334 | 414,823 |
Advertising expenses | 6,300 | 6,800 | 6,700 | ||||||||
International [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Revenues | $ 2,875 | 2,725 | 2,949 | ||||||||
Franchised Units [Member] | International [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Number of restaurants | Restaurant | 21 | 21 | |||||||||
Franchise Income [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Revenues | $ 17,879 | 17,919 | 17,545 | ||||||||
Franchise Income [Member] | International [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Revenues | $ 2,875 | $ 2,725 | $ 2,949 | ||||||||
Franchise Income [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Percentage of franchise royalties on adjusted gross sales of franchisee | 5.00% | ||||||||||
Percentage of advertising fee to be paid by franchisee upon adjusted gross sales | 1.00% | ||||||||||
Minimum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Percentage of tax benefit realized upon settlement | 50.00% | ||||||||||
Maximum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Period for redemption of gift cards | 5 years | ||||||||||
Building and Building Improvements [Member] | Minimum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment, useful life | 20 years | ||||||||||
Building and Building Improvements [Member] | Maximum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment, useful life | 40 years | ||||||||||
Equipment [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment, useful life | 5 years | ||||||||||
Furniture and Fixtures [Member] | Minimum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment, useful life | 5 years | ||||||||||
Furniture and Fixtures [Member] | Maximum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment, useful life | 7 years | ||||||||||
Computer Equipment [Member] | Minimum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment, useful life | 3 years | ||||||||||
Computer Equipment [Member] | Maximum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment, useful life | 5 years | ||||||||||
Leasehold Improvements [Member] | Minimum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment, useful life | 5 years | ||||||||||
Leasehold Improvements [Member] | Maximum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment, useful life | 20 years |
Franchisee Acquisition (Details
Franchisee Acquisition (Details Textual) - USD ($) $ in Thousands | Jul. 29, 2019 | Dec. 29, 2019 |
Business Acquisition [Line Items] | ||
Business combination, Integration related costs | $ 536 | |
MBR Franchise Acquisition Restaurants [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition of franchise restaurant, net of cash acquired | $ 18,600 | |
Weighted average amortization period of reaquired franchise and territory rights | 8 years 2 months 12 days | |
MBR Franchise Acquisition Restaurants [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Property and equipment, useful life | 2 years | |
MBR Franchise Acquisition Restaurants [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Property and equipment, useful life | 20 years |
Franchisee Acquisition - Summar
Franchisee Acquisition - Summary of Allocation of Purchase Price (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 45,549 | $ 36,522 |
MBR Franchise Acquisition Restaurants [Member] | ||
Business Acquisition [Line Items] | ||
Current assets | 387 | |
Property and equipment | 2,398 | |
Goodwill | 9,027 | |
Franchise Rights | 7,100 | |
Other intangibles | 475 | |
Total assets acquired | 19,387 | |
Current liabilities | 725 | |
Other liabilities | 43 | |
Total liabilities assumed | 768 | |
Net assets acquired | $ 18,619 |
Leases (Details Textual)
Leases (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019USD ($)RestaurantLease | Dec. 31, 2018USD ($) | Jan. 21, 2015Restaurant | |
Leases [Line Items] | |||
Lease practical expedients, Package | true | ||
Lease practical expedient, Use of hindsight | false | ||
Operating lease options to extend description | 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. | ||
Operating lease options to extend | 20 years | ||
Weighted average term for operating leases | 13 years 4 months 24 days | ||
Weighted average discount rate for operating leases | 5.00% | ||
Number of leases executed | Lease | 7 | ||
Undiscounted fixed payments over the initial term | $ 35,400 | ||
Lease description | Additionally, as of December 29,2019 the Company has executed seven leases for new Ruth’s Chris Steak House Restaurant locations with undiscounted fixed payments over the initial term of $35.4 million. These leases are expected to commence during the next 12 months and are expected to have an economic lease term of 20 years. These leases will commence when the landlords make the properties available to the Company. The Company will assess the reasonably certain lease term at the lease commencement date. | ||
Lease term | 20 years | ||
Lease Obligations Guaranteed | $ 24,200 | ||
Landry’s Lease Obligations [Member] | |||
Leases [Line Items] | |||
Lease termination period | 2040 | ||
Mitchells Restaurants [Member] | |||
Leases [Line Items] | |||
Number of Restaurants | Restaurant | 21 | ||
Mitchells Fish Market [Member] | Company-owned Fish Market Restaurants [Member] | |||
Leases [Line Items] | |||
Number of Restaurants | Restaurant | 18 | ||
Camerons Mitchell Steak house [Member] | Company-owned Steakhouse Restaurants [Member] | |||
Leases [Line Items] | |||
Number of Restaurants | Restaurant | 3 | ||
Minimum [Member] | |||
Leases [Line Items] | |||
Operating lease options to extend | 5 years | ||
Remaining lease terms | 1 year | ||
Maximum [Member] | |||
Leases [Line Items] | |||
Remaining lease terms | 20 years | ||
ASC 842 [Member] | |||
Leases [Line Items] | |||
Derecognized deferred rent and tenant allowance | $ 25,400 | ||
Derecognized assets related to below market leases | 758 | ||
Derecognized sale leaseback transaction deferred gain | 1,800 | ||
Recognition of additional deferred income taxes related equity adjustments | 413 | ||
ASC 842 [Member] | ROU Asset [Member] | |||
Leases [Line Items] | |||
Retained earnings adjustment | $ 3,500 |
Leases - Summarizes Impacts of
Leases - Summarizes Impacts of Adopting Topic 842 on Company's Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 31, 2018 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 |
Current assets: | |||||
Cash and cash equivalents | $ 5,567 | $ 5,062 | $ 4,051 | $ 3,788 | |
Accounts receivable, less allowance for doubtful accounts | 23,769 | 19,476 | |||
Inventory | 9,623 | 9,296 | |||
Prepaid expenses and other | 3,052 | 2,528 | |||
Total current assets | 42,011 | 36,362 | |||
Property and equipment, net of accumulated depreciation | 142,962 | 125,991 | |||
Operating lease right of use assets | 206,358 | ||||
Goodwill | 45,549 | 36,522 | |||
Intangible assets, net of accumulated amortization | 54,365 | ||||
Deferred income taxes | 4,929 | 5,353 | |||
Other assets | 702 | 604 | |||
Total assets | 496,876 | 254,613 | 242,096 | ||
Current liabilities: | |||||
Accounts payable | 13,598 | 10,273 | |||
Accrued payroll | 17,303 | 19,475 | |||
Accrued expenses | 10,574 | 10,535 | |||
Deferred revenue | 52,856 | 48,370 | 42,596 | ||
Current operating lease liabilities | 14,313 | ||||
Other current liabilities | 4,237 | 6,619 | |||
Total current liabilities | 112,881 | 95,272 | |||
Long-term debt | 64,000 | 41,000 | |||
Operating lease liabilities | 223,292 | ||||
Deferred rent | 23,692 | ||||
Unearned franchise fees | 2,489 | 2,680 | |||
Other liabilities | 69 | 1,837 | |||
Total liabilities | 402,731 | 164,481 | |||
Commitments and contingencies (Note 11) | |||||
Shareholders' equity: | |||||
Common stock | 284 | 293 | |||
Additional paid-in capital | 40,462 | 61,819 | |||
Retained earnings | 53,399 | 28,020 | |||
Treasury stock | |||||
Total shareholders' equity | 94,145 | 90,132 | $ 79,504 | $ 79,009 | |
Total liabilities and shareholders' equity | 496,876 | 254,613 | |||
Franchise Rights [Member] | |||||
Current assets: | |||||
Intangible assets, net of accumulated amortization | 49,916 | 44,919 | |||
Other Intangible Assets [Member] | |||||
Current assets: | |||||
Intangible assets, net of accumulated amortization | $ 4,449 | $ 4,862 | |||
ASC 842 [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | $ 5,062 | ||||
Accounts receivable, less allowance for doubtful accounts | 20,288 | ||||
Inventory | 9,296 | ||||
Prepaid expenses and other | 2,528 | ||||
Total current assets | 37,174 | ||||
Property and equipment, net of accumulated depreciation | 125,991 | ||||
Operating lease right of use assets | 166,040 | ||||
Goodwill | 36,522 | ||||
Deferred income taxes | 5,766 | ||||
Other assets | 604 | ||||
Total assets | 421,120 | ||||
Current liabilities: | |||||
Accounts payable | 10,273 | ||||
Accrued payroll | 19,475 | ||||
Accrued expenses | 10,535 | ||||
Deferred revenue | 48,370 | ||||
Current operating lease liabilities | 16,707 | ||||
Other current liabilities | 4,921 | ||||
Total current liabilities | 110,281 | ||||
Long-term debt | 41,000 | ||||
Operating lease liabilities | 178,256 | ||||
Unearned franchise fees | 2,680 | ||||
Other liabilities | 32 | ||||
Total liabilities | 332,249 | ||||
Commitments and contingencies (Note 11) | |||||
Shareholders' equity: | |||||
Common stock | 293 | ||||
Additional paid-in capital | 61,819 | ||||
Retained earnings | 26,759 | ||||
Treasury stock | |||||
Total shareholders' equity | 88,871 | ||||
Total liabilities and shareholders' equity | 421,120 | ||||
ASC 842 [Member] | Adjustments [Member] | |||||
Current assets: | |||||
Accounts receivable, less allowance for doubtful accounts | 812 | ||||
Total current assets | 812 | ||||
Operating lease right of use assets | 166,040 | ||||
Deferred income taxes | 413 | ||||
Total assets | 166,507 | ||||
Current liabilities: | |||||
Current operating lease liabilities | 16,707 | ||||
Other current liabilities | (1,698) | ||||
Total current liabilities | 15,009 | ||||
Operating lease liabilities | 178,256 | ||||
Deferred rent | (23,692) | ||||
Other liabilities | (1,805) | ||||
Total liabilities | 167,768 | ||||
Commitments and contingencies (Note 11) | |||||
Shareholders' equity: | |||||
Retained earnings | (1,261) | ||||
Treasury stock | |||||
Total shareholders' equity | (1,261) | ||||
Total liabilities and shareholders' equity | 166,507 | ||||
ASC 842 [Member] | Franchise Rights [Member] | |||||
Current assets: | |||||
Intangible assets, net of accumulated amortization | 44,919 | ||||
ASC 842 [Member] | Other Intangible Assets [Member] | |||||
Current assets: | |||||
Intangible assets, net of accumulated amortization | 4,104 | ||||
ASC 842 [Member] | Other Intangible Assets [Member] | Adjustments [Member] | |||||
Current assets: | |||||
Intangible assets, net of accumulated amortization | $ (758) |
Leases - Summarizes Impacts o_2
Leases - Summarizes Impacts of Adopting Topic 842 on Company's Condensed Consolidated Balance Sheet (Parentheticals) (Details) - $ / shares | Dec. 29, 2019 | Dec. 30, 2018 |
Leases [Abstract] | ||
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) | 28,418,691 | 29,268,776 |
Common stock, shares outstanding (in shares) | 28,418,691 | 29,268,776 |
Treasury stock, shares (in shares) | 71,950 | 71,950 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 27,141 |
Variable lease cost | 10,736 |
Total lease cost | $ 37,877 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 28,593 |
2021 | 28,088 |
2022 | 27,010 |
2023 | 24,089 |
2024 | 23,889 |
Thereafter | 203,131 |
Total future minimum rental commitments | 334,800 |
Imputed interest | (97,195) |
Total | $ 237,605 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Annual Rental Commitments for Operating Leases Prior to Adoption of ASC 842 (Details) $ in Thousands | Dec. 30, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 25,767 |
2020 | 24,177 |
2021 | 22,520 |
2022 | 21,388 |
2023 | 18,858 |
Thereafter | 154,661 |
Total future minimum rental commitments | $ 267,371 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 26,660 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 56,608 |
Revenue (Details Textual)
Revenue (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||||
Deferred revenue | $ 52,856 | $ 48,370 | $ 52,856 | $ 48,370 | $ 42,596 | ||||||||
Deferred income taxes | 4,929 | 5,353 | 4,929 | 5,353 | |||||||||
Shareholders equity | 94,145 | 90,132 | 94,145 | 90,132 | 79,504 | $ 79,009 | |||||||
Advertising contributions from franchisees | 1,500 | ||||||||||||
Revenues | 135,033 | $ 103,009 | $ 110,243 | $ 119,741 | 127,159 | $ 99,015 | $ 109,635 | $ 116,526 | 468,026 | 452,334 | 414,823 | ||
Restaurant Sales [Member] | |||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||||
Revenues | 441,361 | 427,433 | $ 390,434 | ||||||||||
ASC Topic 606 [Member] | Adjustments due to Adoption of Topic 606 [Member] | |||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||||
Deferred revenue | 3,100 | (121) | 3,100 | (121) | |||||||||
Deferred income taxes | 746 | (686) | 746 | (686) | |||||||||
Shareholders equity | $ 2,300 | $ 2,115 | 2,300 | 2,115 | |||||||||
Advertising contributions from franchisees | 1,500 | 1,500 | |||||||||||
Revenues | 519 | ||||||||||||
ASC Topic 606 [Member] | Adjustments due to Adoption of Topic 606 [Member] | Restaurant Sales [Member] | |||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||||||||
Revenues | $ (957) | $ (1,058) | [1] | ||||||||||
[1] | (1) The reclassification of discounts recognized on the sale of gift cards from marketing expense to restaurant sales on the consolidated statements of income totaled $1.1 million for fiscal year 2018. |
Revenue - Summary of Impact of
Revenue - Summary of Impact of Adopting Topic 606 Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 5,567 | $ 5,062 | $ 4,051 | $ 3,788 |
Accounts receivable, less allowance for doubtful accounts 2018 - $322; 2017 - $361 | 23,769 | 19,476 | ||
Inventory | 9,623 | 9,296 | ||
Prepaid expenses and other | 3,052 | 2,528 | ||
Total current assets | 42,011 | 36,362 | ||
Property and equipment, net of accumulated depreciation 2018 - $160,153; 2017 - $144,373 | 142,962 | 125,991 | ||
Goodwill | 45,549 | 36,522 | ||
Intangible assets, net of accumulated amortization | 54,365 | |||
Deferred income taxes | 4,929 | 5,353 | ||
Other assets | 702 | 604 | ||
Total assets | 496,876 | 254,613 | 242,096 | |
Current liabilities: | ||||
Accounts payable | 13,598 | 10,273 | ||
Accrued payroll | 17,303 | 19,475 | ||
Accrued expenses | 10,574 | 10,535 | ||
Deferred revenue | 52,856 | 48,370 | 42,596 | |
Other current liabilities | 4,237 | 6,619 | ||
Total current liabilities | 112,881 | 95,272 | ||
Long-term debt | 64,000 | 41,000 | ||
Deferred rent | 23,692 | |||
Unearned franchise fees | 2,489 | 2,680 | ||
Other liabilities | 69 | 1,837 | ||
Total liabilities | 402,731 | 164,481 | ||
Commitments and contingencies (Note 11) | ||||
Shareholders' equity: | ||||
Common stock, par value $.01 per share; 100,000,000 shares authorized, 29,268,776 shares issued and outstanding at December 30, 2018, 29,645,790 shares issued and outstanding at December 31, 2017 | 284 | 293 | ||
Additional paid-in capital | 40,462 | 61,819 | ||
Retained earnings | 53,399 | 28,020 | ||
Treasury stock, at cost; 71,950 shares at December 30, 2018 and December 31, 2017 | ||||
Total shareholders' equity | 94,145 | 90,132 | $ 79,504 | $ 79,009 |
Total liabilities and shareholders' equity | 496,876 | 254,613 | ||
ASC Topic 606 [Member] | Adjustments due to Adoption of Topic 606 [Member] | ||||
Current assets: | ||||
Deferred income taxes | 746 | (686) | ||
Total assets | (686) | |||
Current liabilities: | ||||
Deferred revenue | 3,100 | (121) | ||
Total current liabilities | (121) | |||
Unearned franchise fees | (2,680) | |||
Total liabilities | (2,801) | |||
Commitments and contingencies (Note 11) | ||||
Shareholders' equity: | ||||
Retained earnings | 2,115 | |||
Treasury stock, at cost; 71,950 shares at December 30, 2018 and December 31, 2017 | ||||
Total shareholders' equity | 2,300 | 2,115 | ||
Total liabilities and shareholders' equity | (686) | |||
ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 5,062 | |||
Accounts receivable, less allowance for doubtful accounts 2018 - $322; 2017 - $361 | 19,476 | |||
Inventory | 9,296 | |||
Prepaid expenses and other | 2,528 | |||
Total current assets | 36,362 | |||
Property and equipment, net of accumulated depreciation 2018 - $160,153; 2017 - $144,373 | 125,991 | |||
Goodwill | 36,522 | |||
Deferred income taxes | 4,667 | |||
Other assets | 604 | |||
Total assets | 253,927 | |||
Current liabilities: | ||||
Accounts payable | 10,273 | |||
Accrued payroll | 19,475 | |||
Accrued expenses | 10,535 | |||
Deferred revenue | 48,249 | |||
Other current liabilities | 6,619 | |||
Total current liabilities | 95,151 | |||
Long-term debt | 41,000 | |||
Deferred rent | 23,692 | |||
Other liabilities | 1,837 | |||
Total liabilities | 161,680 | |||
Commitments and contingencies (Note 11) | ||||
Shareholders' equity: | ||||
Common stock, par value $.01 per share; 100,000,000 shares authorized, 29,268,776 shares issued and outstanding at December 30, 2018, 29,645,790 shares issued and outstanding at December 31, 2017 | 293 | |||
Additional paid-in capital | 61,819 | |||
Retained earnings | 30,135 | |||
Treasury stock, at cost; 71,950 shares at December 30, 2018 and December 31, 2017 | ||||
Total shareholders' equity | 92,247 | |||
Total liabilities and shareholders' equity | 253,927 | |||
Franchise Rights [Member] | ||||
Current assets: | ||||
Intangible assets, net of accumulated amortization | 49,916 | 44,919 | ||
Franchise Rights [Member] | ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | ||||
Current assets: | ||||
Intangible assets, net of accumulated amortization | 44,919 | |||
Other Intangible Assets [Member] | ||||
Current assets: | ||||
Intangible assets, net of accumulated amortization | $ 4,449 | 4,862 | ||
Other Intangible Assets [Member] | ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | ||||
Current assets: | ||||
Intangible assets, net of accumulated amortization | $ 4,862 |
Revenue - Summary of Impact o_2
Revenue - Summary of Impact of Adopting Topic 606 Consolidated Balance Sheets (Details) (Parentheticals) - USD ($) $ / shares in Units, $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Allowance for doubtful accounts | $ 241 | $ 322 | |
Property and equipment, accumulated depreciation | 173,845 | $ 160,153 | |
Finite-lived intangible assets, accumulated amortization | $ 5,840 | ||
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) | 28,418,691 | 29,268,776 | |
Common stock, shares outstanding (in shares) | 28,418,691 | 29,268,776 | |
Treasury stock, shares (in shares) | 71,950 | 71,950 | |
ASC Topic 606 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Allowance for doubtful accounts | $ 322 | $ 361 | |
Property and equipment, accumulated depreciation | $ 160,153 | $ 144,373 | |
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) | 29,268,776 | 29,645,790 | |
Common stock, shares outstanding (in shares) | 29,268,776 | 29,645,790 | |
Treasury stock, shares (in shares) | 71,950 | 71,950 | |
Franchise Rights [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ 4,401 | $ 2,299 | |
Franchise Rights [Member] | ASC Topic 606 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | 2,299 | $ 396 | |
Other Intangible Assets [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ 1,439 | 1,395 | |
Other Intangible Assets [Member] | ASC Topic 606 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Finite-lived intangible assets, accumulated amortization | $ 1,395 | $ 1,181 |
Revenue - Summary of Impact o_3
Revenue - Summary of Impact of Adopting Topic 606 Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |||
Revenues: | |||||||||||||
Revenues | $ 135,033 | $ 103,009 | $ 110,243 | $ 119,741 | $ 127,159 | $ 99,015 | $ 109,635 | $ 116,526 | $ 468,026 | $ 452,334 | $ 414,823 | ||
Costs and expenses: | |||||||||||||
Marketing and advertising | 15,432 | 16,639 | 12,724 | ||||||||||
General and administrative costs | 34,643 | 37,253 | 32,700 | ||||||||||
Depreciation and amortization expenses | 21,354 | 18,538 | 14,995 | ||||||||||
Pre-opening costs | 1,824 | 1,875 | 2,013 | ||||||||||
Total costs and expenses | 415,565 | 400,675 | 368,141 | ||||||||||
Operating income | 18,400 | 5,571 | 11,646 | 16,843 | 18,713 | 4,854 | 11,705 | 16,388 | 52,461 | 51,659 | 46,682 | ||
Other income (expense): | |||||||||||||
Interest expense, net | (737) | (638) | (417) | (405) | (486) | (470) | (403) | (380) | (2,197) | (1,739) | (821) | ||
Other | 82 | 18 | 13 | 2 | (42) | (65) | 22 | 12 | 115 | (73) | 53 | ||
Income from continuing operations before income tax expense | 17,745 | 4,951 | 11,242 | 16,440 | 18,185 | 4,319 | 11,324 | 16,020 | 50,379 | 49,847 | 45,914 | ||
Income tax expense | 3,287 | 423 | 1,933 | 2,529 | 3,375 | 727 | 1,763 | 2,384 | 8,173 | 8,247 | 15,669 | ||
Income from continuing operations | 14,458 | 4,528 | 9,309 | 13,911 | 14,810 | 3,592 | 9,561 | 13,636 | 42,206 | 41,600 | 30,245 | ||
Income from discontinued operations, net of income taxes | 50 | 9 | 12 | 10 | 80 | (108) | |||||||
Net income | $ 14,458 | $ 4,528 | $ 9,309 | $ 13,911 | $ 14,860 | $ 3,601 | $ 9,573 | $ 13,646 | 42,206 | 41,680 | 30,137 | ||
ASC Topic 606 [Member] | Adjustments due to Adoption of Topic 606 [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | 519 | ||||||||||||
Costs and expenses: | |||||||||||||
Marketing and advertising | [1] | 399 | |||||||||||
Total costs and expenses | 399 | ||||||||||||
Operating income | 120 | ||||||||||||
Other income (expense): | |||||||||||||
Income from continuing operations before income tax expense | 120 | ||||||||||||
Income tax expense | [2] | 29 | |||||||||||
Income from continuing operations | 91 | ||||||||||||
Net income | 91 | ||||||||||||
ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | 451,815 | ||||||||||||
Costs and expenses: | |||||||||||||
Marketing and advertising | 16,240 | ||||||||||||
General and administrative costs | 37,253 | ||||||||||||
Depreciation and amortization expenses | 18,538 | ||||||||||||
Pre-opening costs | 1,875 | ||||||||||||
Total costs and expenses | 400,276 | ||||||||||||
Operating income | 51,539 | ||||||||||||
Other income (expense): | |||||||||||||
Interest expense, net | (1,739) | ||||||||||||
Other | (73) | ||||||||||||
Income from continuing operations before income tax expense | 49,727 | ||||||||||||
Income tax expense | 8,218 | ||||||||||||
Income from continuing operations | 41,509 | ||||||||||||
Income from discontinued operations, net of income taxes | 80 | ||||||||||||
Net income | 41,589 | ||||||||||||
Restaurant Sales [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | 441,361 | 427,433 | 390,434 | ||||||||||
Restaurant Sales [Member] | ASC Topic 606 [Member] | Adjustments due to Adoption of Topic 606 [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | (957) | (1,058) | [3] | ||||||||||
Restaurant Sales [Member] | ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | 428,491 | ||||||||||||
Franchise Income [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | 17,879 | 17,919 | 17,545 | ||||||||||
Franchise Income [Member] | ASC Topic 606 [Member] | Adjustments due to Adoption of Topic 606 [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | [4] | 1,577 | |||||||||||
Franchise Income [Member] | ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | 16,342 | ||||||||||||
Other Operating Income [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | 8,786 | 6,982 | 6,844 | ||||||||||
Other Operating Income [Member] | ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenues | 6,982 | ||||||||||||
Food and Beverage [Member] | |||||||||||||
Costs and expenses: | |||||||||||||
Cost of goods sold | 127,597 | 120,112 | 116,361 | ||||||||||
Food and Beverage [Member] | ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | |||||||||||||
Costs and expenses: | |||||||||||||
Cost of goods sold | 120,112 | ||||||||||||
Restaurant Operating Expenses [Member] | |||||||||||||
Costs and expenses: | |||||||||||||
Cost of goods sold | $ 214,715 | 206,258 | $ 185,444 | ||||||||||
Restaurant Operating Expenses [Member] | ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | |||||||||||||
Costs and expenses: | |||||||||||||
Cost of goods sold | $ 206,258 | ||||||||||||
[1] | (3) The Company recognized $1.5 million and of advertising contributions from franchisees in fiscal year 2018, which prior to the adoption of Topic 606 were recognized as a reduction to marketing and advertising expense. Discounts recognized on the sale of gift cards were reclassified from marketing expense to restaurant sales on the consolidated statements of income, which totaled $1.1 million in fiscal year 2018. | ||||||||||||
[2] | (4) Income tax expense related to the pre-tax income impact of the adjustments is calculated using the Company’s marginal federal and state income tax rates. | ||||||||||||
[3] | (1) The reclassification of discounts recognized on the sale of gift cards from marketing expense to restaurant sales on the consolidated statements of income totaled $1.1 million for fiscal year 2018. | ||||||||||||
[4] | (2) In fiscal year 2018, the Company recognized $1.5 million of advertising contributions from franchisees and $119 thousand of franchise development and opening fees in excess of fees that would have been recognized had Topic 606 not been adopted. |
Revenue - Summary of Impact o_4
Revenue - Summary of Impact of Adopting Topic 606 Consolidated Statements of Income (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||
Revenues | $ 135,033 | $ 103,009 | $ 110,243 | $ 119,741 | $ 127,159 | $ 99,015 | $ 109,635 | $ 116,526 | $ 468,026 | $ 452,334 | $ 414,823 | |
Advertising contributions from franchisees | 1,500 | |||||||||||
Franchise development and opening fees | 119 | |||||||||||
Restaurant Sales [Member] | ||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||
Revenues | 441,361 | 427,433 | $ 390,434 | |||||||||
ASC Topic 606 [Member] | Adjustments due to Adoption of Topic 606 [Member] | ||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||
Revenues | 519 | |||||||||||
Advertising contributions from franchisees | 1,500 | 1,500 | ||||||||||
ASC Topic 606 [Member] | Adjustments due to Adoption of Topic 606 [Member] | Restaurant Sales [Member] | ||||||||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||||||||
Revenues | $ (957) | $ (1,058) | [1] | |||||||||
[1] | (1) The reclassification of discounts recognized on the sale of gift cards from marketing expense to restaurant sales on the consolidated statements of income totaled $1.1 million for fiscal year 2018. |
Revenue - Summary of Impact o_5
Revenue - Summary of Impact of Adopting Topic 606 Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 14,458 | $ 4,528 | $ 9,309 | $ 13,911 | $ 14,860 | $ 3,601 | $ 9,573 | $ 13,646 | $ 42,206 | $ 41,680 | $ 30,137 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 21,354 | 18,538 | 14,995 | ||||||||
Deferred income taxes | 837 | 341 | 4,977 | ||||||||
Non-cash interest expense | 86 | 82 | 119 | ||||||||
Debt issuance costs written-off | 16 | ||||||||||
Gain on the disposal of property and equipment, net | 51 | 55 | |||||||||
Loss on impairment | 3,904 | ||||||||||
Amortization of below market lease | 79 | 7 | |||||||||
Stock-based compensation expense | 8,157 | 7,647 | 6,763 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 343 | 2,151 | (836) | ||||||||
Inventories | (52) | (608) | (710) | ||||||||
Prepaid expenses and other | (417) | 151 | (231) | ||||||||
Other assets | (150) | (42) | 482 | ||||||||
Accounts payable and accrued expenses | (2,624) | 2,590 | 5,718 | ||||||||
Deferred revenue | 3,761 | 5,383 | 3,692 | ||||||||
Deferred rent | 1,462 | 19 | |||||||||
Other liabilities | (1,250) | (1,215) | (359) | ||||||||
Net cash provided by operating activities | 72,910 | 78,294 | 68,693 | ||||||||
Net cash used in investing activities | (50,281) | (31,907) | (56,612) | ||||||||
Net cash used in financing activities | $ (22,124) | (45,376) | $ (11,818) | ||||||||
Net increase in cash and cash equivalents | 1,011 | ||||||||||
ASC Topic 606 [Member] | Adjustments due to Adoption of Topic 606 [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 91 | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Deferred revenue | 120 | ||||||||||
Other liabilities | (29) | ||||||||||
ASC Topic 606 [Member] | Balances without adoption of Topic 606 [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 41,589 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 18,538 | ||||||||||
Deferred income taxes | 341 | ||||||||||
Non-cash interest expense | 82 | ||||||||||
Gain on the disposal of property and equipment, net | 55 | ||||||||||
Amortization of below market lease | 79 | ||||||||||
Stock-based compensation expense | 7,647 | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 2,151 | ||||||||||
Inventories | (608) | ||||||||||
Prepaid expenses and other | 151 | ||||||||||
Other assets | (42) | ||||||||||
Accounts payable and accrued expenses | 2,590 | ||||||||||
Deferred revenue | 5,503 | ||||||||||
Deferred rent | 1,462 | ||||||||||
Other liabilities | (1,244) | ||||||||||
Net cash provided by operating activities | 78,294 | ||||||||||
Net cash used in investing activities | (31,907) | ||||||||||
Net cash used in financing activities | (45,376) | ||||||||||
Net increase in cash and cash equivalents | $ 1,011 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregated Revenue by Major Component for Each Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | $ 135,033 | $ 103,009 | $ 110,243 | $ 119,741 | $ 127,159 | $ 99,015 | $ 109,635 | $ 116,526 | $ 468,026 | $ 452,334 | $ 414,823 |
Restaurant Sales [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 441,361 | 427,433 | 390,434 | ||||||||
Franchise Income [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 17,879 | 17,919 | 17,545 | ||||||||
Other Operating Income [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 8,786 | 6,982 | 6,844 | ||||||||
Domestic [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 465,151 | 449,609 | 411,874 | ||||||||
Domestic [Member] | Restaurant Sales [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 441,361 | 427,433 | 390,434 | ||||||||
Domestic [Member] | Franchise Income [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 15,004 | 15,194 | 14,596 | ||||||||
Domestic [Member] | Other Operating Income [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 8,786 | 6,982 | 6,844 | ||||||||
International [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 2,875 | 2,725 | 2,949 | ||||||||
International [Member] | Franchise Income [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | $ 2,875 | $ 2,725 | $ 2,949 |
Revenue - Summary of Receivable
Revenue - Summary of Receivables and Deferred Revenue Liabilities from Contract with Customers (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 |
Revenue From Contract With Customer [Abstract] | |||
Accounts receivable, less allowance for doubtful accounts 2019 - $241; 2018 - $322 | $ 19,615 | $ 18,336 | |
Deferred revenue | 52,856 | 48,370 | $ 42,596 |
Unearned franchise fees | $ 2,489 | $ 2,680 |
Revenue - Summary of Receivab_2
Revenue - Summary of Receivables and Deferred Revenue Liabilities from Contract with Customers (Details) (Parentheticals) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Allowance for doubtful accounts | $ 241 | $ 322 |
Revenue - Summary of Significan
Revenue - Summary of Significant Changes in Deferred Revenue and Unearned Franchise Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Deferred Revenue, Beginning balance | $ 48,370 | $ 42,596 |
Deferred Revenue, Decreases in the beginning balance from gift card redemptions | (30,970) | (29,103) |
Deferred Revenue, Increases due to proceeds received, excluding amounts recognized during the period | 34,903 | 34,861 |
Deferred Revenue, MBR Franchisee Acquisition assumed liability, excluding amounts recognized during the period | 563 | |
Deferred Revenue, Other | (10) | 38 |
Deferred Revenue, Ending balance | 52,856 | 48,370 |
Unearned Franchise Fees, Beginning balance | 2,680 | |
Unearned Franchise Fees, Decreases due to recognition of franchise development and opening fees | (191) | (419) |
Unearned Franchise Fees, Other | 7 | |
Unearned Franchise Fees, Ending balance | $ 2,489 | 2,680 |
ASC Topic 606 [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred Revenue, Increase (decrease) due to the cumulative effect of adopting Topic 606 | (22) | |
Unearned Franchise Fees, Increase (decrease) due to the cumulative effect of adopting Topic 606 | $ 3,092 |
Revenue - Summary of Recognitio
Revenue - Summary of Recognition of Revenue Related to Deferred Franchise Development and Opening Fees (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Projected Recognition Of Revenue [Line Items] | |
Franchise development and opening fees | $ 2,489 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-12-30 | |
Projected Recognition Of Revenue [Line Items] | |
Franchise development and opening fees, satisfaction period | 1 year |
Franchise development and opening fees | $ 236 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-12-28 | |
Projected Recognition Of Revenue [Line Items] | |
Franchise development and opening fees, satisfaction period | 1 year |
Franchise development and opening fees | $ 236 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-12-27 | |
Projected Recognition Of Revenue [Line Items] | |
Franchise development and opening fees, satisfaction period | 3 years |
Franchise development and opening fees | $ 709 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-12-30 | |
Projected Recognition Of Revenue [Line Items] | |
Franchise development and opening fees, satisfaction period | |
Franchise development and opening fees | $ 1,308 |
Revenue - Summary of Recognit_2
Revenue - Summary of Recognition of Revenue Related to Deferred Franchise Development and Opening Fees (Details 1) $ in Thousands | Dec. 29, 2019USD ($) |
Revenue From Contract With Customer [Abstract] | |
Franchise development and opening fees | $ 2,489 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Textual) - USD ($) | Dec. 29, 2019 | Dec. 30, 2018 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Non-financial assets | $ 0 | $ 0 |
Franchise Rights and Goodwill -
Franchise Rights and Goodwill - Carrying Values of Franchise Rights and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Schedule Of Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Value | $ 24,607 | |
Amortizing intangible assets, Accumulated Amortization | (5,840) | |
Amortizing intangible assets, Net Carrying Value | 18,767 | |
Indefinite-lived intangible assets | 35,598 | |
Total intangible assets, Gross Carrying Value | 60,205 | |
Total intangible assets, Net Carrying Value | 54,365 | |
Franchise Rights [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 32,200 | |
Liquor Licenses [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 3,280 | |
Other Intangible Assets [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 118 | |
Franchise Rights [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Intangible Assets, Weighted Average Amortization Period | 7 years 2 months 12 days | |
Amortizing intangible assets, Gross Carrying Value | $ 22,117 | |
Amortizing intangible assets, Accumulated Amortization | (4,401) | $ (2,299) |
Amortizing intangible assets, Net Carrying Value | 17,716 | |
Total intangible assets, Net Carrying Value | $ 49,916 | 44,919 |
Lease Assets [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Intangible Assets, Weighted Average Amortization Period | 10 years 10 months 24 days | |
Amortizing intangible assets, Gross Carrying Value | $ 2,000 | |
Amortizing intangible assets, Accumulated Amortization | (1,083) | |
Amortizing intangible assets, Net Carrying Value | $ 917 | |
Other Intangible Assets [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Intangible Assets, Weighted Average Amortization Period | 2 years 10 months 24 days | |
Amortizing intangible assets, Gross Carrying Value | $ 490 | |
Amortizing intangible assets, Accumulated Amortization | (356) | |
Amortizing intangible assets, Net Carrying Value | 134 | |
Total intangible assets, Net Carrying Value | $ 4,449 | $ 4,862 |
Franchise Rights and Goodwill_2
Franchise Rights and Goodwill (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 2,200 | $ 2,100 | $ 277 |
Estimated amortization expense in 2020 | 2,700 | ||
Estimated amortization expense in 2021 | 2,700 | ||
Estimated amortization expense in 2022 | 2,700 | ||
Estimated amortization expense in 2023 | 2,600 | ||
Estimated amortization expense in 2024 | $ 2,500 |
Franchise Rights and Goodwill_3
Franchise Rights and Goodwill - Carrying Values of Goodwill (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Gross Goodwill | $ 56,107 | $ 47,080 |
Accumulated Goodwill Impairment Losses | (10,558) | (10,558) |
Net Carrying Value of Goodwill | $ 45,549 | $ 36,522 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 316,807 | $ 286,144 |
Less accumulated depreciation | (173,845) | (160,153) |
Property and equipment, net | 142,962 | 125,991 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 616 | 616 |
Building and Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 25,477 | 25,163 |
Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 44,227 | 41,852 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 16,472 | 12,085 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 27,758 | 25,049 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 192,096 | 167,650 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 10,161 | $ 13,729 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Debt Disclosure [Abstract] | ||
Revolving credit facility | $ 64,000 | $ 41,000 |
Less current maturities | 0 | 0 |
Long-term debt | $ 64,000 | $ 41,000 |
Long-term Debt (Details Textual
Long-term Debt (Details Textual) - USD ($) | Feb. 02, 2017 | Dec. 29, 2019 | Sep. 18, 2019 | Feb. 03, 2017 |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.50% | |||
Credit Agreement [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | |||
Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||
Debt Instrument, Maturity Date | Feb. 2, 2022 | |||
Senior Credit Facility [Member] | ||||
Long-term Line of Credit | $ 64,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 51,200,000 | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |||
Letter of Credit [Member] | ||||
Letters of Credit Outstanding, Amount | $ 4,800,000 | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.90% | |||
Letter of Credit [Member] | First Amendment to Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||
Revolving Credit Facility [Member] | Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 90,000,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity upon Satisfaction of Certain Conditions | $ 150,000,000 | |||
Revolving Credit Facility [Member] | First Amendment to Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 120,000,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity upon Satisfaction of Certain Conditions | 150,000,000 | |||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit Agreement [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Credit Agreement [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Credit Agreement [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
Revolving Credit Facility [Member] | Federal Funds Rate [Member] | Credit Agreement [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | Credit Agreement [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | Credit Agreement [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
Swingline Loans [Member] | Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||
Swingline Loans [Member] | First Amendment to Credit Agreement [Member] | Wells Fargo Bank, National Association and Other Lenders [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 |
Franchise Operations (Details T
Franchise Operations (Details Textual) - Restaurant | 12 Months Ended | |||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Sep. 29, 2019 | |
Franchised Units [Member] | International [Member] | ||||
Franchise Operations [Line Items] | ||||
Number of Restaurants | 21 | |||
Ruths Chris Steak House [Member] | ||||
Franchise Operations [Line Items] | ||||
Royalty of Sales Percentage | 5.00% | |||
Advertising Fee Percentage | 1.00% | |||
Percentage of advertising fee recorded as liability | 1.00% | |||
Number of Restaurants | 159 | 156 | 157 | |
Ruths Chris Steak House [Member] | Franchised Units [Member] | ||||
Franchise Operations [Line Items] | ||||
Number of Restaurants | 73 | 75 | 73 | |
Number of Franchise Restaurants Sold During Period | 0 | |||
Ruths Chris Steak House [Member] | Franchised Units [Member] | International [Member] | ||||
Franchise Operations [Line Items] | ||||
Number of Restaurants | 21 | |||
Ruths Chris Steak House [Member] | Franchised Units [Member] | Chongqing China [Member] | ||||
Franchise Operations [Line Items] | ||||
Number of Franchise Restaurants Opened During Period | 1 | |||
Ruths Chris Steak House [Member] | Franchised Units [Member] | Chengdu, China And Kauai, HI [Member] | ||||
Franchise Operations [Line Items] | ||||
Number of Franchise Restaurants Opened During Period | 2 | |||
Ruths Chris Steak House [Member] | Franchised Units [Member] | Ft. Wayne, IN And Markham, Ontario [Member] | ||||
Franchise Operations [Line Items] | ||||
Number of Franchise Restaurants Opened During Period | 2 | |||
Ruths Chris Steak House [Member] | Franchised Units [Member] | Ridgeland, MS, Dubai, United Arab Emirates and Panama City, Panama [Member] | ||||
Franchise Operations [Line Items] | ||||
Number of Franchise Restaurants Closed During Period | 3 |
Franchise Operations - Franchis
Franchise Operations - Franchise Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Franchise Operations [Line Items] | |||||||||||
Revenues | $ 135,033 | $ 103,009 | $ 110,243 | $ 119,741 | $ 127,159 | $ 99,015 | $ 109,635 | $ 116,526 | $ 468,026 | $ 452,334 | $ 414,823 |
Franchisor Owned Outlet [Member] | |||||||||||
Franchise Operations [Line Items] | |||||||||||
Revenues | 17,689 | 17,500 | 17,335 | ||||||||
Opening and Development Fee Income [Member] | |||||||||||
Franchise Operations [Line Items] | |||||||||||
Revenues | 190 | 419 | 210 | ||||||||
Franchise Income [Member] | |||||||||||
Franchise Operations [Line Items] | |||||||||||
Revenues | $ 17,879 | $ 17,919 | $ 17,545 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) | Dec. 29, 2019Supplier |
Commitments And Contingencies Disclosure [Abstract] | |
Number of Suppliers | 2 |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) - USD ($) | Feb. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 29, 2019 | Oct. 31, 2019 | Feb. 03, 2017 |
Dividends Payable [Line Items] | |||||||||||||||
Common Stock, Number of Voting Rights Per Share | 1 | ||||||||||||||
Share repurchased | 1,148,515 | 689,000 | 1,169,442 | ||||||||||||
Cash dividends declared per common share | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.52 | $ 0.44 | $ 0.36 | ||||
Credit Agreement [Member] | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | ||||||||||||||
Credit Agreement [Member] | Minimum [Member] | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Consolidated leverage ratio | 200.00% | ||||||||||||||
Credit Agreement [Member] | Maximum [Member] | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Consolidated leverage ratio | 200.00% | ||||||||||||||
Credit Agreement [Member] | Junior Restricted Payments [Member] | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Debt instrument periodic payment | $ 108,700,000 | ||||||||||||||
Subsequent Event [Member] | Dividend Declared 5 [Member] | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Cash dividends declared per common share | $ 0.15 | ||||||||||||||
Dividends Payable, Current | $ 4,400,000 | ||||||||||||||
Payment Date | Mar. 20, 2020 | ||||||||||||||
The 2017 Share Repurchase Plan [Member] | |||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 60,000,000 | ||||||||||||||
Share repurchased | 1,148,515 | ||||||||||||||
Stock Repurchased and Retired During Period, Value | $ 25,800,000 | ||||||||||||||
Stock Repurchased and Retired During Period, Average Cost per Share | $ 22.48 | ||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 54,800,000 | $ 54,800,000 | $ 54,800,000 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Dividend Declared 1 [Member] | |||
Dividends Payable [Line Items] | |||
Declaration Date | Feb. 22, 2019 | Feb. 21, 2018 | Feb. 17, 2017 |
Dividend Per Share (in dollars per share) | $ 0.13 | $ 0.11 | $ 0.09 |
Record Date | Mar. 7, 2019 | Mar. 8, 2018 | Feb. 23, 2017 |
Total Amount | $ 3,967 | $ 3,390 | $ 2,862 |
Payment Date | Mar. 21, 2019 | Mar. 22, 2018 | Mar. 9, 2017 |
Dividend Declared 2 [Member] | |||
Dividends Payable [Line Items] | |||
Declaration Date | May 3, 2019 | May 4, 2018 | May 5, 2017 |
Dividend Per Share (in dollars per share) | $ 0.13 | $ 0.11 | $ 0.09 |
Record Date | May 23, 2019 | May 24, 2018 | May 18, 2017 |
Total Amount | $ 3,931 | $ 3,397 | $ 2,862 |
Payment Date | Jun. 6, 2019 | Jun. 7, 2018 | Jun. 1, 2017 |
Dividend Declared 3 [Member] | |||
Dividends Payable [Line Items] | |||
Declaration Date | Aug. 2, 2019 | Aug. 10, 2018 | Jul. 28, 2017 |
Dividend Per Share (in dollars per share) | $ 0.13 | $ 0.11 | $ 0.09 |
Record Date | Aug. 22, 2019 | Aug. 23, 2018 | Aug. 10, 2017 |
Total Amount | $ 3,854 | $ 3,389 | $ 2,844 |
Payment Date | Sep. 5, 2019 | Sep. 6, 2018 | Aug. 24, 2017 |
Dividend Declared 4 [Member] | |||
Dividends Payable [Line Items] | |||
Declaration Date | Nov. 1, 2019 | Nov. 2, 2018 | Nov. 3, 2017 |
Dividend Per Share (in dollars per share) | $ 0.13 | $ 0.11 | $ 0.09 |
Record Date | Nov. 21, 2019 | Nov. 15, 2018 | Nov. 9, 2017 |
Total Amount | $ 3,814 | $ 3,351 | $ 2,815 |
Payment Date | Dec. 5, 2019 | Nov. 29, 2018 | Nov. 22, 2017 |
Employee Benefit Plan (Details
Employee Benefit Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $ 357 | $ 354 | $ 324 |
Incentive Stock Option Plans (D
Incentive Stock Option Plans (Details Textual) - USD ($) $ in Thousands | May 15, 2018 | May 22, 2008 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 29, 2013 | Dec. 25, 2005 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | $ 8,200 | $ 7,600 | $ 6,800 | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 466 | 634 | 376 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 12,600 | ||||||
Share-based Compensation Arrangement by Share-based Unrecognized Compensation Cost Related to Non Vested Stock Option | 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 89 | 231 | 681 | ||||
Proceeds from Stock Options Exercised | $ 16 | $ 32 | 945 | ||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 922,422 | 1,078,571 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 12 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 7,900 | $ 7,700 | $ 4,500 | ||||
Long-term Equity Incentive Plan 2005 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,400,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,500,000 | 2,000,000 | |||||
Plan expiration date | May 30, 2018 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares, Cancelled | 1,649,394 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 251,512 | ||||||
Long-term Equity Incentive Plan 2005 [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 38,217 | ||||||
Long-term Equity Incentive Plan 2005 [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 135,071 | ||||||
Long-term Equity Incentive Plan 2005 [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 10,000 | ||||||
Long-term Equity Incentive Plan 2005 [Member] | Share-based Compensation Award, Tranche Four [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 10,000 | ||||||
Long-term Equity Incentive Plan 2005 [Member] | Share-based Compensation Award, Tranche Five [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 10,000 | ||||||
Long-term Equity Incentive Plan 2005 [Member] | Share-based Compensation Award, Tranche Six [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 10,000 | ||||||
Long-term Equity Incentive Plan 2005 [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 501,186 | ||||||
Omnibus Incentive Plan 2018 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,500,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,300,000 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 297,277 | 357,508 | |||||
Omnibus Incentive Plan 2018 [Member] | Employees and Executive Officers [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 274,453 | ||||||
Omnibus Incentive Plan 2018 [Member] | Non-employee Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 22,824 | ||||||
Omnibus Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 55,834 | 37,273 | |||||
Omnibus Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 152,189 | 100,255 | |||||
Omnibus Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 66,544 | 97,648 | |||||
Omnibus Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche Four [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 22,710 | 41,666 | |||||
Omnibus Incentive Plan 2018 [Member] | Share-based Compensation Award, Tranche Five [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 80,666 | ||||||
Omnibus Incentive Plan 2018 [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 421,236 | ||||||
Minimum [Member] | Long-term Equity Incentive Plan 2005 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||
Maximum [Member] | Long-term Equity Incentive Plan 2005 [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 |
Incentive Stock Option Plans -
Incentive Stock Option Plans - Summary of Non-vested Restricted Stock (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 29, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, Shares (in shares) | shares | 1,078,571 |
Granted, Shares (in shares) | shares | 297,457 |
Vested, Shares (in shares) | shares | (448,606) |
Forfeited, Shares (in shares) | shares | (5,000) |
Non-vested, Shares (in shares) | shares | 922,422 |
Non-vested, Weighted average grant-date fair value per share (in dollars per share) | $ / shares | $ 20.44 |
Granted, Weighted average grant-date fair value per share (in dollars per share) | $ / shares | 24.42 |
Vested, Weighted average grant-date fair value per share (in dollars per share) | $ / shares | 17.56 |
Forfeited, Weighted average grant-date fair value per share (in dollars per share) | $ / shares | 19.73 |
Non-vested, Weighted average grant-date fair value per share (in dollars per share) | $ / shares | $ 23.13 |
Incentive Stock Option Plans _2
Incentive Stock Option Plans - Summary of Stock Option Activity (Details) | 12 Months Ended |
Dec. 29, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures [Abstract] | |
Outstanding, Shares (in shares) | shares | 5,073 |
Exercised, Shares (in shares) | shares | (5,073) |
Outstanding, Weighted average exercise price (in dollars per share) | $ / shares | $ 3.07 |
Exercised, Weighted average exercise price (in dollars per share) | $ / shares | $ 3.07 |
Outstanding, Weighted remaining contractual term (Year) | 0 years |
Options exercisable, Weighted remaining contractual term (Year) | 0 years |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense from continuing operations | $ 3,287 | $ 423 | $ 1,933 | $ 2,529 | $ 3,375 | $ 727 | $ 1,763 | $ 2,384 | $ 8,173 | $ 8,247 | $ 15,669 |
Income tax expense (benefit) from discontinued operations | 26 | (68) | |||||||||
Total consolidated income tax expense | $ 8,173 | $ 8,273 | $ 15,601 |
Income Taxes - Income Tax Exp_2
Income Taxes - Income Tax Expense From Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | |||||||||||
U.S. Federal, Current | $ 4,350 | $ 4,851 | $ 8,431 | ||||||||
State, Current | 2,685 | 2,723 | 1,916 | ||||||||
Foreign, Current | 301 | 333 | 343 | ||||||||
Current | 7,336 | 7,907 | 10,690 | ||||||||
U.S. Federal, Deferred | 563 | 326 | 4,557 | ||||||||
State, Deferred | 274 | 14 | 422 | ||||||||
Foreign, Deferred | |||||||||||
Deferred | 837 | 340 | 4,979 | ||||||||
U.S. Federal, Total | 4,913 | 5,177 | 12,988 | ||||||||
State, Total | 2,959 | 2,737 | 2,338 | ||||||||
Foreign, Total | 301 | 333 | 343 | ||||||||
Total | $ 3,287 | $ 423 | $ 1,933 | $ 2,529 | $ 3,375 | $ 727 | $ 1,763 | $ 2,384 | $ 8,173 | $ 8,247 | $ 15,669 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the U.S. Statutory Rate to the Effective Rate (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||||||||||
Income tax expense at statutory rates | $ 10,580,000 | $ 10,468,000 | $ 16,070,000 | ||||||||
Increase (decrease) in income taxes resulting from: | |||||||||||
State income taxes, net of federal benefit | 2,317,000 | 1,886,000 | 1,316,000 | ||||||||
Employment-related tax credits, net | (4,976,000) | (4,628,000) | (3,389,000) | ||||||||
Non-deductible executive compensation | 1,023,000 | 1,234,000 | 729,000 | ||||||||
Stock-based compensation | (392,000) | (542,000) | (349,000) | ||||||||
Impact of the 2017 Tax Act | (669,000) | 1,086,000 | |||||||||
Other | (379,000) | 498,000 | 206,000 | ||||||||
Total | $ 3,287,000 | $ 423,000 | $ 1,933,000 | $ 2,529,000 | $ 3,375,000 | $ 727,000 | $ 1,763,000 | $ 2,384,000 | $ 8,173,000 | $ 8,247,000 | $ 15,669,000 |
Effective tax rate | 16.20% | 16.50% | 34.10% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
Federal statutory tax rate | 21.00% | 35.00% | |
Tax Cuts and Jobs Act of 2017 change in tax rate income tax expense (benefit) | $ (669) | $ 1,086 | |
Deferred tax assets, valuation allowance | $ 1,926 | 1,897 | |
State tax credit expiration year | 2039 | ||
Unrecognized tax benefits | $ 283 | $ 607 | |
Unrecognized tax benefits that would impact effective tax rate | 224 | ||
State [Member] | |||
Income Tax [Line Items] | |||
Net operating loss carry-forwards | 69,200 | ||
Tax credit carry-forwards | $ 569 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the U.S. Statutory Rate to the Effective Rate Applicable to Discontinued Operations (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||
Income tax benefit at statutory rates | $ 10,580,000 | $ 10,468,000 | $ 16,070,000 |
Increase (decrease) in income taxes resulting from: | |||
State income taxes at state statutory rate, net of federal impact | $ 2,317,000 | 1,886,000 | 1,316,000 |
Total | $ 26,000 | $ (68,000) | |
Effective tax rate | 16.20% | 16.50% | 34.10% |
Discontinued Operations [Member] | |||
Income Tax [Line Items] | |||
Income tax benefit at statutory rates | $ 22,000 | $ (62,000) | |
Increase (decrease) in income taxes resulting from: | |||
State income taxes at state statutory rate, net of federal impact | 4,000 | (6,000) | |
Total | $ 26,000 | $ (68,000) | |
Effective tax rate | 24.60% | 38.60% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Deferred tax assets: | ||
Accounts payable and accrued expenses | $ 9,171 | $ 8,835 |
Operating lease liabilities | 60,473 | |
Deferred rent | 6,267 | |
Net state operating loss carryforwards | 3,598 | 3,674 |
Tax credit carryforwards | 450 | 502 |
Other | 60 | 128 |
Total gross deferred tax assets | 73,752 | 19,406 |
Less valuation allowance | (1,926) | (1,897) |
Net deferred tax assets | 71,826 | 17,509 |
Deferred tax liabilities: | ||
Property and equipment | (1,590) | (539) |
Intangible assets | (12,533) | (11,617) |
Operating lease right of use assets | (52,774) | |
Total gross deferred tax liabilities | (66,897) | (539) |
Net deferred tax assets | $ 4,929 | $ 16,970 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit Reconciliation (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2019USD ($) | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | |
Unrecognized tax benefits balance at December 30, 2018 | $ 607 |
Gross increases for tax positions of prior years | 9 |
Reductions due to settlements with taxing authorities | (333) |
Unrecognized tax benefits balance at December 29, 2019 | $ 283 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Income from continuing operations | $ 14,458 | $ 4,528 | $ 9,309 | $ 13,911 | $ 14,810 | $ 3,592 | $ 9,561 | $ 13,636 | $ 42,206 | $ 41,600 | $ 30,245 |
Income (loss) from discontinued operations, net of income taxes | 50 | 9 | 12 | 10 | 80 | (108) | |||||
Net income | $ 14,458 | $ 4,528 | $ 9,309 | $ 13,911 | $ 14,860 | $ 3,601 | $ 9,573 | $ 13,646 | $ 42,206 | $ 41,680 | $ 30,137 |
Shares: | |||||||||||
Weighted average number of common shares outstanding - basic | 28,998,382 | 29,659,461 | 30,346,999 | ||||||||
Dilutive shares | 378,598 | 614,380 | 569,365 | ||||||||
Weighted average number of common shares outstanding - diluted | 29,376,980 | 30,273,841 | 30,916,364 | ||||||||
Basic earnings (loss) per common share: | |||||||||||
Continuing operations (in dollars per share) | $ 0.51 | $ 0.16 | $ 0.32 | $ 0.48 | $ 0.50 | $ 0.12 | $ 0.32 | $ 0.46 | $ 1.46 | $ 1.40 | $ 1 |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | |||||||||
Basic earnings per share | 0.51 | 0.16 | 0.32 | 0.48 | 0.50 | 0.12 | 0.32 | 0.46 | 1.46 | 1.41 | 0.99 |
Diluted earnings (loss) per common share: | |||||||||||
Continuing operations | 0.50 | 0.16 | 0.31 | 0.47 | 0.49 | 0.12 | 0.32 | 0.45 | 1.44 | 1.37 | 0.98 |
Discontinued operations | 0.01 | (0.01) | |||||||||
Diluted earnings per share | $ 0.50 | $ 0.16 | $ 0.31 | $ 0.47 | $ 0.49 | $ 0.12 | $ 0.32 | $ 0.45 | $ 1.44 | $ 1.38 | $ 0.97 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - $ / shares | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 25,915 | 9,591 | 685 |
Weighted Average Exercise Prices Anti Dilutive Stock Options | $ 21.60 |
Segment Information (Details Te
Segment Information (Details Textual) | 12 Months Ended | ||
Dec. 29, 2019RestaurantSegment | Sep. 29, 2019Restaurant | Dec. 30, 2018Restaurant | |
Segment Reporting Information [Line Items] | |||
Number of Operating Segments | Segment | 2 | ||
Ruths Chris Steak House [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 159 | 157 | 156 |
Company [Member] | Ruths Chris Steak House [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 83 | 81 | 78 |
Operated under Contractual Agreements [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 3 | ||
Franchised Units [Member] | Ruths Chris Steak House [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 73 | 73 | 75 |
Segment Information - Segment I
Segment Information - Segment Information, Operating Profit (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Revenues | $ 135,033 | $ 103,009 | $ 110,243 | $ 119,741 | $ 127,159 | $ 99,015 | $ 109,635 | $ 116,526 | $ 468,026 | $ 452,334 | $ 414,823 |
Segment profits: | |||||||||||
Gross profit | 121,824 | 123,085 | 110,099 | ||||||||
Unallocated operating income | 3,890 | 2,879 | 2,919 | ||||||||
Marketing and advertising expenses | (15,432) | (16,639) | (12,724) | ||||||||
General and administrative costs | (34,643) | (37,253) | (32,700) | ||||||||
Depreciation and amortization expenses | (21,354) | (18,538) | (14,995) | ||||||||
Pre-opening costs | (1,824) | (1,875) | (2,013) | ||||||||
Loss on impairment | (3,904) | ||||||||||
Interest expense, net | (737) | (638) | (417) | (405) | (486) | (470) | (403) | (380) | (2,197) | (1,739) | (821) |
Other | 82 | 18 | 13 | 2 | (42) | (65) | 22 | 12 | 115 | (73) | 53 |
Income from continuing operations before income tax expense | $ 17,745 | $ 4,951 | $ 11,242 | $ 16,440 | $ 18,185 | $ 4,319 | $ 11,324 | $ 16,020 | 50,379 | 49,847 | 45,914 |
Capital expenditures: | |||||||||||
Capital expenditure | 31,668 | 31,907 | 21,255 | ||||||||
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 446,257 | 431,536 | 394,359 | ||||||||
Segment profits: | |||||||||||
Gross profit | 103,945 | 105,166 | 92,554 | ||||||||
Capital expenditures: | |||||||||||
Capital expenditure | 30,026 | 29,433 | 20,363 | ||||||||
Operating Segments [Member] | Franchise Operations [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 17,879 | 17,919 | 17,545 | ||||||||
Segment profits: | |||||||||||
Gross profit | 17,879 | 17,919 | 17,545 | ||||||||
Segment Reconciling Items [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 3,890 | 2,879 | 2,919 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Capital expenditures: | |||||||||||
Capital expenditure | $ 1,642 | $ 2,474 | $ 892 |
Segment Information - Segment_2
Segment Information - Segment Information, Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | |||
Assets | $ 496,876 | $ 254,613 | $ 242,096 |
Deferred income taxes - unallocated | 4,929 | 16,970 | |
Operating Segments [Member] | Company-owned Steakhouse Restaurants [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 471,756 | 233,446 | 223,354 |
Operating Segments [Member] | Franchise Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 2,435 | 2,911 | 3,021 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 17,756 | 12,903 | 10,774 |
Deferred income taxes - unallocated | $ 4,929 | $ 5,353 | $ 4,947 |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Statement Information - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Accounts Receivable Net Current [Abstract] | ||
Bank credit card receivables | $ 7,669 | $ 7,223 |
Landlord contributions | 3,565 | 531 |
Franchise fees | 2,354 | 2,759 |
Trade | 1,065 | 932 |
Receivable from gift card issuances | 8,802 | 7,630 |
Other | 555 | 723 |
Allowance for doubtful accounts | (241) | (322) |
Accounts receivable, net | $ 23,769 | $ 19,476 |
Supplemental Consolidated Fin_4
Supplemental Consolidated Financial Statement Information - Summary of Other Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Dec. 30, 2018 |
Other Assets [Abstract] | ||
Deposits | $ 497 | $ 348 |
Deferred financing costs, net | 205 | 256 |
Other assets | $ 702 | $ 604 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 135,033 | $ 103,009 | $ 110,243 | $ 119,741 | $ 127,159 | $ 99,015 | $ 109,635 | $ 116,526 | $ 468,026 | $ 452,334 | $ 414,823 |
Cost and expenses | (116,633) | (97,438) | (98,597) | (102,898) | (108,446) | (94,161) | (97,930) | (100,138) | (415,565) | (400,675) | |
Loss on impairment | (3,904) | ||||||||||
Operating income | 18,400 | 5,571 | 11,646 | 16,843 | 18,713 | 4,854 | 11,705 | 16,388 | 52,461 | 51,659 | 46,682 |
Interest expense, net | (737) | (638) | (417) | (405) | (486) | (470) | (403) | (380) | (2,197) | (1,739) | (821) |
Other | 82 | 18 | 13 | 2 | (42) | (65) | 22 | 12 | 115 | (73) | 53 |
Income from continuing operations before income tax expense | 17,745 | 4,951 | 11,242 | 16,440 | 18,185 | 4,319 | 11,324 | 16,020 | 50,379 | 49,847 | 45,914 |
Income tax expense | 3,287 | 423 | 1,933 | 2,529 | 3,375 | 727 | 1,763 | 2,384 | 8,173 | 8,247 | 15,669 |
Income from continuing operations | 14,458 | 4,528 | 9,309 | 13,911 | 14,810 | 3,592 | 9,561 | 13,636 | 42,206 | 41,600 | 30,245 |
Discontinued operations, net of income tax | 50 | 9 | 12 | 10 | 80 | (108) | |||||
Net income | $ 14,458 | $ 4,528 | $ 9,309 | $ 13,911 | $ 14,860 | $ 3,601 | $ 9,573 | $ 13,646 | $ 42,206 | $ 41,680 | $ 30,137 |
Continuing operations (in dollars per share) | $ 0.51 | $ 0.16 | $ 0.32 | $ 0.48 | $ 0.50 | $ 0.12 | $ 0.32 | $ 0.46 | $ 1.46 | $ 1.40 | $ 1 |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | |||||||||
Basic earnings per share | 0.51 | 0.16 | 0.32 | 0.48 | 0.50 | 0.12 | 0.32 | 0.46 | 1.46 | 1.41 | 0.99 |
Continuing operations (in dollars per share) | 0.50 | 0.16 | 0.31 | 0.47 | 0.49 | 0.12 | 0.32 | 0.45 | 1.44 | 1.37 | 0.98 |
Discontinued operations (in dollars per share) | 0.01 | (0.01) | |||||||||
Diluted earnings per share | 0.50 | 0.16 | 0.31 | 0.47 | 0.49 | 0.12 | 0.32 | 0.45 | 1.44 | 1.38 | 0.97 |
Dividends declared per common share | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.52 | $ 0.44 | $ 0.36 |