Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Feb. 27, 2015 | Jun. 29, 2014 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | CARROLS RESTAURANT GROUP, INC. | ||
Entity Central Index Key | 809248 | ||
Current Fiscal Year End Date | -16 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 28-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 35,487,161 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $241,946,698 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash | $21,221 | $8,302 |
Receivables, Net, Current | 4,034 | 2,846 |
Inventory, Net | 7,785 | 6,494 |
Prepaid rent | 3,164 | 2,332 |
Prepaid expenses and other current assets | 3,009 | 2,874 |
Refundable income taxes | 2,416 | 2,631 |
Deferred income taxes | 1,642 | 3,196 |
Total current assets | 43,271 | 28,675 |
Restricted cash | 0 | 20,000 |
Property and equipment, net | 179,383 | 152,175 |
Franchise rights, net | 102,900 | 90,168 |
Goodwill | 17,793 | 8,162 |
Franchise agreements, net | 14,602 | 12,802 |
Favorable leases, net (Note 5) | 4,725 | 2,974 |
Deferred financing fees | 3,399 | 4,344 |
Deferred income taxes | 0 | 6,824 |
Other assets | 3,324 | 3,357 |
Total assets | 369,397 | 329,481 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current portion of long-term debt | 1,272 | 1,147 |
Accounts payable | 19,239 | 14,687 |
Accrued interest | 2,170 | 2,140 |
Accrued payroll, related taxes and benefits | 17,321 | 18,021 |
Accrued real estate taxes | 4,908 | 4,945 |
Other liabilities | 10,273 | 9,709 |
Total current liabilities | 55,183 | 50,649 |
Long-term debt, net of current portion | 157,422 | 158,189 |
Lease financing obligations | 1,202 | 1,200 |
Deferred income-sale-leaseback of real estate | 15,108 | 16,824 |
Deferred income taxes | 1,642 | 0 |
Accrued postretirement benefits | 3,121 | 2,370 |
Unfavorable leases, net | 13,027 | 8,175 |
Other liabilities | 16,157 | 14,870 |
Total liabilities | 262,862 | 252,277 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, par value $.01 | 0 | 0 |
Voting common stock, par value $.01 | 348 | 230 |
Additional paid-in capital | 137,647 | 69,258 |
Retained Earnings | -30,962 | 7,155 |
Accumulated other comprehensive income | -357 | 702 |
Treasury stock, at cost | -141 | -141 |
Total stockholders' equity | 106,535 | 77,204 |
Total liabilities and stockholders' equity | $369,397 | $329,481 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Franchise agreements, accumulated amortization | $7,502 | $6,353 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock, shares issued | 100 | 100 |
Preferred stock, shares outstanding | 100 | 100 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 35,222,667 | 23,711,257 |
Common stock, shares outstanding | 34,827,240 | 23,048,334 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations And Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Restaurant sales | $692,755 | $663,483 | $539,608 |
Costs and expenses: | |||
Cost of sales | 209,664 | 201,532 | 172,698 |
Restaurant wages and related expenses | 219,718 | 208,404 | 169,857 |
Restaurant rent expense | 48,865 | 47,198 | 37,883 |
Other restaurant operating expenses | 113,586 | 106,508 | 88,883 |
Advertising expense | 27,961 | 29,615 | 22,257 |
General and administrative | 40,001 | 37,228 | 36,085 |
Depreciation and amortization | 36,923 | 33,594 | 26,321 |
Impairment and other lease charges | 3,541 | 4,462 | 977 |
Other expense (income) | 47 | 17 | -717 |
Total operating expenses | 700,306 | 668,558 | 554,244 |
Income from operations | -7,551 | -5,075 | -14,636 |
Interest Expense | 18,801 | 18,841 | 12,764 |
Loss on extinguishment of debt | 0 | 0 | 1,509 |
Income (loss) from continuing operations before income taxes | -26,352 | -23,916 | -28,909 |
Provision (benefit) for income taxes | 11,765 | -10,397 | -10,093 |
Income (loss) from continuing operations | -38,117 | -13,519 | -18,816 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | -72 |
Net income (loss) | -38,117 | -13,519 | -18,888 |
Basic and diluted net income (loss) per share: | |||
Continuing Operations | ($1.23) | ($0.59) | ($0.83) |
Discontinued Operations | $0 | $0 | $0 |
Basic and diluted weighted average common shares outstanding | 30,885,275 | 22,958,963 | 22,580,468 |
Other comprehensive income (loss), net of tax: | |||
Net income (loss) | -38,117 | -13,519 | -18,888 |
Change in valuation of interest rate swap, net of tax | 0 | 0 | 68 |
Change in postretirement benefit obligations, net of tax | -1,059 | 33 | -484 |
Comprehensive income (loss) | ($39,176) | ($13,486) | ($19,304) |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Stock-based compensation | $1,180 | $1,205 | $925 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Thousands, except Share data | |||||||
Balance at Jan. 01, 2012 | $59,157 | $218 | $0 | $6,954 | $51,041 | $1,085 | ($141) |
Common stock, shares outstanding at Jan. 01, 2012 | 21,750,237 | ||||||
Stock-based compensation | 2,169 | 0 | 0 | 2,169 | 0 | 0 | 0 |
Exercise of stock options | 295 | 0 | 0 | 295 | 0 | 0 | 0 |
Exercise of stock options, shares | 69,824 | ||||||
Conversion of stock options, shares | 666,090 | ||||||
Conversion of stock options | 0 | 7 | 0 | -7 | 0 | 0 | 0 |
Vesting of non-vested shares and excess tax benefits | 936 | 2 | 0 | 934 | 0 | 0 | 0 |
Vesting of non-vested shares, shares | 262,090 | ||||||
Issuance of preferred stock | 57,711 | 0 | 0 | 57,711 | 0 | 0 | 0 |
Distribution of Fiesta Restaurant Group's net assets | -10,791 | -10,791 | |||||
Net income (loss) | -18,888 | 0 | 0 | 0 | -18,888 | 0 | 0 |
Change in valuation of interest rate swap | 68 | 0 | 0 | 0 | 0 | 68 | 0 |
Change in postretirement benefit obligations | -484 | 0 | 0 | 0 | 0 | -484 | 0 |
Balance at Dec. 30, 2012 | 90,173 | 227 | 0 | 68,056 | 21,362 | 669 | -141 |
Common stock, shares outstanding at Dec. 30, 2012 | 22,748,241 | ||||||
Stock-based compensation | 1,205 | 0 | 0 | 1,205 | 0 | 0 | 0 |
Vesting of non-vested shares and excess tax benefits | 0 | 3 | 0 | -3 | 0 | 0 | 0 |
Vesting of non-vested shares, shares | 300,093 | ||||||
Distribution of Fiesta Restaurant Group's net assets | -688 | 0 | 0 | 0 | -688 | 0 | 0 |
Net income (loss) | -13,519 | 0 | 0 | 0 | -13,519 | 0 | 0 |
Change in valuation of interest rate swap | 0 | ||||||
Change in postretirement benefit obligations | 33 | 0 | 0 | 0 | 0 | 33 | 0 |
Balance at Dec. 29, 2013 | 77,204 | 230 | 0 | 69,258 | 7,155 | 702 | -141 |
Common stock, shares outstanding at Dec. 29, 2013 | 23,048,334 | 23,048,334 | |||||
Stock-based compensation | 1,180 | 0 | 0 | 1,180 | 0 | 0 | 0 |
Vesting of non-vested shares and excess tax benefits | 0 | 3 | 0 | -3 | 0 | 0 | 0 |
Vesting of non-vested shares, shares | 278,906 | ||||||
Issuance of preferred stock | 67,327 | 115 | 0 | 67,212 | 0 | 0 | 0 |
Net income (loss) | -38,117 | 0 | 0 | 0 | -38,117 | 0 | 0 |
Change in valuation of interest rate swap | 0 | ||||||
Change in postretirement benefit obligations | -1,059 | 0 | 0 | 0 | 0 | -1,059 | 0 |
Balance at Dec. 28, 2014 | $106,535 | $348 | $0 | $137,647 | ($30,962) | ($357) | ($141) |
Common stock, shares outstanding at Dec. 28, 2014 | 34,827,240 | 34,827,240 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity Parentheticals (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Other Comprehensive Income (Loss), Tax | $0 | $0 | $42 |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Other Comprehensive Income (Loss), Tax | $0 | $30 | ($322) |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Cash flows provided from (used for) operating activities: | |||
Net income (loss) | ($38,117) | ($13,519) | ($18,888) |
Loss (income) from discontinued operations, net of income taxes | 0 | 0 | 72 |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Loss on disposals of property and equipment | 537 | 925 | 212 |
Stock-based compensation | 1,180 | 1,205 | 925 |
Impairment and other lease charges | 3,541 | 4,462 | 977 |
Depreciation and amortization | 36,923 | 33,594 | 26,321 |
Amortization of deferred financing costs | 1,007 | 1,004 | 777 |
Amortization of unearned income | -130 | -143 | 0 |
Amortization of deferred gains from sale-leaseback transactions | -1,793 | -1,799 | -1,776 |
Deferred income taxes | 11,548 | -6,284 | -9,399 |
Loss on extinguishment of debt | 0 | 0 | 1,509 |
Refundable income taxes | 177 | -2,379 | 2,196 |
Accounts receivable | -1,094 | 3,653 | -3,183 |
Accounts payable | 2,194 | -2,691 | 7,160 |
Accrued interest | 30 | 2 | 2,112 |
Accrued payroll, related taxes and benefits | -700 | 2,780 | 5,581 |
Other | -596 | 771 | 3,611 |
Net cash provided from operating activities | 14,707 | 21,581 | 18,207 |
Cash flows used for investing activities: | |||
New restaurant development | -1,696 | -3,166 | 0 |
Restaurant remodeling | -38,197 | -37,450 | -21,342 |
Other restaurant capital expenditures | -6,720 | -7,203 | -6,247 |
Corporate and restaurant information systems | -5,397 | -2,667 | -10,053 |
Total capital expenditures | -52,010 | -50,486 | -37,642 |
Acquisition of restaurants, net of cash acquired | -52,200 | 0 | -12,135 |
Proceeds from sale of other assets | 54 | 0 | 0 |
Increase in restricted cash balance | 20,000 | 0 | -20,000 |
Properties purchased for sale-leaseback | -3,412 | -3,144 | 0 |
Proceeds from sale-leaseback transactions | 19,565 | 3,144 | 1,177 |
Proceeds from insurance recovery | 0 | 0 | 610 |
Proceeds from sales of other properties | 0 | 0 | 2,082 |
Net cash used for investing activities | -68,003 | -50,486 | -65,908 |
Cash flows provided from (used for) financing activities: | |||
Proceeds from public stock offering, net of expenses | 67,327 | 0 | 0 |
Borrowings under senior credit facility | 59,000 | 0 | 0 |
Repayments under senior credit facility | -59,000 | 0 | 0 |
Proceeds from issuance of senior secured second lien notes | 0 | 0 | 150,000 |
Cash of Fiesta Restaurant Group deconsolidated as a result of spin-off | 0 | 0 | -5,490 |
Borrowings on previous revolving credit facilities | 0 | 0 | 19,200 |
Repayments on previous revolving credit facilities | 0 | 0 | -23,200 |
Repayments of term loans under prior credit facilities | 0 | 0 | -61,750 |
Principal payments on term loans under prior credit facilities | 0 | 0 | -1,625 |
Capital contribution to Fiesta Restaurant Group | 0 | 0 | -2,500 |
Principal payments on capital leases | -1,050 | -1,075 | -620 |
Excess tax benefits from stock-based compensation | 0 | 0 | 936 |
Financing costs associated with issuance of debt | -62 | -8 | -5,945 |
Proceeds from stock option exercises | 0 | 0 | 295 |
Net cash provided from (used for) financing activities | 66,215 | -1,083 | 69,301 |
Net increase (decrease) in cash from continuing operations | 12,919 | -29,988 | 21,600 |
Net cash provided from (used for) operating activities of discontinued operations | 0 | 0 | 3,718 |
Net cash provided from (used for) investing activities of discontinued operations | 0 | 0 | -15,007 |
Net cash provided from (used for) financing activities of discontinued operations | 0 | 0 | 3,318 |
Net increase (decrease) in cash from discontinued operations | 0 | 0 | -7,971 |
Net increase (decrease) in cash | 12,919 | -29,988 | 13,629 |
Cash, beginning of period | 8,302 | 38,290 | 24,661 |
Cash, end of period | 21,221 | 8,302 | 38,290 |
Supplemental disclosures: | |||
Interest paid on long-term debt | 17,659 | 17,731 | 9,751 |
Interest paid on lease financing obligations | 103 | 101 | 101 |
Accruals for capital expenditures | 4,683 | 524 | 5,034 |
Income taxes paid (refunded), net | -41 | -1,733 | -2,889 |
Capital lease obligations incurred | 1,459 | 116 | 10,779 |
Preferred stock issued for consideration in acquisition | 0 | 0 | 57,711 |
Non-cash assets acquired | 0 | 858 | 0 |
Non-cash reduction of capital lease assets and obligation | $1,055 | $0 | $0 |
Basis_of_Presentation_Notes
Basis of Presentation (Notes) | 12 Months Ended | |||
Dec. 28, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Basis Of Presentation | Basis of Presentation | |||
Business Description. At December 28, 2014 Carrols Restaurant Group, Inc. ("Carrols Restaurant Group") operated, as franchisee, 674 restaurants under the trade name “Burger King®” in 15 Northeastern, Midwestern and Southeastern states. | ||||
Basis of Consolidation. Carrols Restaurant Group is a holding company and conducts all of its operations through Carrols Corporation (“Carrols”) and its wholly-owned subsidiary. The consolidated financial statements presented herein include the accounts of Carrols Restaurant Group and its wholly-owned subsidiary Carrols. Any reference to “Carrols LLC” refers to Carrols’ wholly-owned subsidiary, Carrols LLC, a Delaware limited liability company. | ||||
Unless the context otherwise requires, Carrols Restaurant Group, Carrols and the direct and indirect subsidiaries of Carrols are collectively referred to as the “Company.” All intercompany transactions have been eliminated in consolidation. | ||||
Spin-Off. On May 7, 2012, the Company completed the spin-off of Fiesta Restaurant Group, Inc. ("Fiesta"), a wholly owned subsidiary of Carrols, through a pro-rata dividend to the stockholders of Carrols Restaurant Group of all of the outstanding shares of Fiesta's common stock (the "Spin-off"). As a result of the Spin-off, the results of operation and cash flows of Fiesta (including the Pollo Tropical and Taco Cabana segments) have been presented as discontinued operations for all periods presented. See Note 3—Discontinued Operations for further information. | ||||
Fiscal Year. The Company uses a 52-53 week fiscal year ending on the Sunday closest to December 31. The fiscal years ended December 28, 2014, December 29, 2013 and December 30, 2012 each contained 52 weeks. | ||||
Use of Estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include: accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill, long-lived assets and franchise rights, lease accounting matters, and valuation of deferred income tax assets. Actual results could differ from those estimates. | ||||
Cash and Cash Equivalents. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | ||||
Inventories. Inventories, primarily consisting of food and paper, are stated at the lower of cost (first-in, first-out) or market. | ||||
Property and Equipment. The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Repair and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: | ||||
Owned buildings | 9 | to | 30 years | |
Equipment | 3 | to | 7 years | |
Computer hardware and software | 3 | to | 7 years | |
Assets subject to capital leases | Shorter of useful life or lease term | |||
Leasehold improvements are depreciated over the shorter of their estimated useful lives or the underlying lease term. In circumstances where an economic penalty would be presumed by the non-exercise of one or more renewal options under the lease, the Company includes those renewal option periods when determining the lease term. For significant leasehold improvements made during the latter part of the lease term, the Company amortizes those improvements over the shorter of their useful life or the expected lease term. The expected lease term would consider the exercise of renewal options if the value of the improvements would imply that an economic penalty would be incurred without the renewal of the option. Building costs incurred for new restaurants on leased land are depreciated over the lease term, which is generally a period of twenty years. | ||||
Franchise Rights. For its restaurant acquisitions prior to 2002, the Company generally allocated to franchise rights, an intangible asset, the excess of purchase price and related costs over the value assigned to the net tangible and intangible assets acquired. For acquisitions subsequent to 2002, the Company determined the fair value of franchise rights based upon the acquired restaurants' future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment and assembled workforce to determine the fair value attributable to these franchise rights. Amounts allocated to franchise rights for each acquisition are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty-year renewal period. | ||||
Franchise Agreements. Fees for initial franchises and renewals are amortized using the straight-line method over the term of the agreement, which is generally twenty years. | ||||
Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. | ||||
Favorable and Unfavorable Leases. Favorable and unfavorable lease valuations resulted from the terms of acquired operating lease contracts being favorable or unfavorable relative to market terms of comparable leases on the acquisition date. Favorable and unfavorable lease valuations are amortized as a component of rent expense on a straight-line basis over the remaining lease terms at the time of the acquisition. | ||||
Impairment of Long-Lived Assets. The Company assesses the recoverability of property and equipment, franchise rights and other intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. | ||||
Deferred Financing Costs. Financing costs incurred in obtaining long-term debt and lease financing obligations are capitalized and amortized over the life of the related obligation as interest expense using the effective interest method. | ||||
Leases. All leases are reviewed for capital or operating classification at their inception. The majority of the Company’s leases are operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including any option periods included in the determination of the lease term. Contingent rentals are generally based upon a percentage of sales or a percentage of sales in excess of stipulated amounts and are generally not considered minimum rent payments but are recognized as rent expense when incurred. | ||||
Lease Financing Obligations. Lease financing obligations pertain to real estate sale-leaseback transactions accounted for under the financing method. The assets (land and building) subject to these obligations remain on the Company’s consolidated balance sheet at their historical costs and such assets (excluding land) continue to be depreciated over their remaining useful lives. The proceeds received by the Company from these transactions are recorded as lease financing obligations and the lease payments are applied as payments of principal and interest. The selection of the interest rate on lease financing obligations is evaluated at inception of the lease based on the Company’s incremental borrowing rate adjusted to the rate required to prevent recognition of a non-cash loss or negative amortization of the obligation through the end of the primary lease term. | ||||
Revenue Recognition. Revenues from Company restaurants are recognized when payment is tendered at the time of sale, net of sales discounts and excluding sales tax collected. | ||||
Income Taxes. Deferred tax assets and liabilities are based on the difference between the financial statement and tax bases of assets and liabilities as measured by the tax rates that are anticipated to be in effect when those differences reverse. The deferred tax provision generally represents the net change in deferred tax assets and liabilities during the period including any changes in valuation allowances. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established when it is necessary to reduce deferred tax assets to an amount for which realization is likely. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company and its subsidiary file a consolidated federal income tax return. | ||||
Advertising Costs. All advertising costs are expensed as incurred. | ||||
Cost of Sales. The Company includes the cost of food, beverage and paper, net of any discounts, in cost of sales. | ||||
Pre-opening Costs. The Company’s pre-opening costs are expensed as incurred and generally include payroll costs associated with opening the new restaurant, rent and promotional costs. | ||||
Insurance. The Company is insured for workers’ compensation, general liability and medical insurance claims under policies where it pays all claims, subject to stop-loss limitations both for individual claims and claims in the aggregate. Losses are accrued based upon the Company’s estimates of the aggregate liability for claims based on Company experience and certain actuarial methods used to measure such estimates. The Company does not discount any of its self-insurance obligations. | ||||
Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. Financial instruments include cash, accounts receivable, accounts payable, and long-term debt. The carrying amounts of cash, accounts receivable and accounts payable approximate fair value because of the short-term nature of these financial instruments. The fair value of the Carrols Restaurant Group 11.25% Senior Secured Second Lien Notes due 2018 is based on a recent trading value, which is considered Level 2, and at December 28, 2014 was approximately $160.5 million. See Note 6 for a discussion of the fair value measurement of non-financial assets. | ||||
Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets, goodwill and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. As described in Note 6, the Company recorded long-lived asset impairment charges of $2.6 million, $2.8 million and $1.0 million during the years ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively. | ||||
Derivative Financial Instruments. The Company recognizes derivatives on the balance sheet at fair value, which are considered Level 1. The Company’s only derivative in the past three years was an interest rate swap that was settled in conjunction with the refinancing of debt during the year ended December 30, 2012 and it was designated as a cash flow hedge. The effective portion of the changes in the fair value of this arrangement were recognized in accumulated other comprehensive loss until the hedged item was recognized in earnings. The ineffective portion of the changes in the fair value of this arrangement was immediately recognized in earnings. The Company classifies cash inflows and outflows from derivatives within operating activities on the statement of cash flows. | ||||
Stock-Based Compensation. For non-vested stock awards, the fair market value of the award, determined based upon the closing value of the Company’s stock price on the grant date, is recorded to compensation expense on a straight-line basis over the requisite service period. The Company applies the Black-Scholes valuation model in determining the fair value of stock options granted to employees, which is then amortized on a straight-line basis to compensation expense over the requisite service period. In connection with the Spin-off of Fiesta, on March 5, 2012 the Company converted all of its outstanding vested stock options to shares of the Company's common stock and all of its outstanding non-vested stock options to non-vested shares of the Company's common stock. | ||||
The Company has adopted an incentive stock plan under which incentive stock options, non-qualified stock options and non-vested shares may be granted to employees and non-employee directors. On an annual basis, the Company has granted incentive stock options, non-qualified stock options and/or non-vested shares under this plan. Non-vested shares granted to corporate employees generally vest 25% per year over four years and non-vested shares granted to non-employee directors generally vest at varying rates over two to five years. Forfeiture rates are based on a stratification of employees by expected exercise behavior and range from 0% to 15%. Also see Note 13 to the consolidated financial statements. | ||||
Gift cards. The Company sells gift cards in its restaurants that are issued under Burger King Corporation's ("BKC") gift card program. Proceeds from the sale of Burger King gift cards at the Company’s restaurants are received by BKC. The Company recognizes revenue from gift cards upon redemption by the customer. | ||||
Concentrations of Credit Risk. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its day-to-day operating cash balances in non-interest-bearing transaction accounts, which are insured by the Federal Deposit Insurance Corporation up to $250. Although the Company maintains balances that exceed the federally insured limit, it has not experienced any losses related to these balances and believes credit risk to be minimal. | ||||
Segment Information. Operating segments are components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker in order to allocate resources and assess performance. The Company's chief operating decision maker currently evaluates the Company's operations from a number of different operational perspectives, however resource allocation decisions are made on a total-company basis. The Company derives all significant revenues from a single operating segment. Accordingly, the Company views the operating results of its Burger King restaurants as one reportable segment. | ||||
Subsequent Events. The Company reviewed and evaluated subsequent events through the issuance date of the Company’s consolidated financial statements. |
Acquisition
Acquisition | 12 Months Ended | |||||||||
Dec. 28, 2014 | ||||||||||
Business Combinations [Abstract] | ||||||||||
Acquisition [Text Block] | Acquisitions | |||||||||
2014 Acquisitions | ||||||||||
During the year ended December 28, 2014, the Company acquired an aggregate of 123 restaurants from other franchisees, which we refer to as the "2014 acquired restaurants", in the following transactions: | ||||||||||
Closing Date | Number of Restaurants | Purchase Price | Market Location | |||||||
April 30, 2014 | 4 | $ | 681 | Fort Wayne, Indiana | ||||||
June 30, 2014 | 4 | 3,819 | -1 | Pittsburgh, Pennsylvania | ||||||
July 22, 2014 | 21 | 8,609 | Rochester, New York and Southern Tier of Western New York | |||||||
October 8, 2014 | 30 | 20,330 | -1 | Wilmington and Greenville, North Carolina | ||||||
November 4, 2014 | 64 | 18,761 | -2 | Nashville, Tennessee; Indiana and Illinois | ||||||
123 | $ | 52,200 | ||||||||
-1 | The acquisitions on June 30, 2014 and October 8, 2014 included the purchase of one and twelve fee-owned properties, respectively. Ten of these fee-owned properties were sold in sale-leaseback transactions during the fourth quarter of 2014 for net proceeds of $12,961. | |||||||||
-2 | In connection with the acquisition on November 4, 2014, the Company entered into an agreement with BKC to remodel 46 of the restaurants acquired over a five-year period beginning in 2014. | |||||||||
The Company allocated the aggregate purchase price to the net tangible and intangible assets acquired in the acquisitions at their estimated fair values. The following table summarizes the final allocation of the aggregate purchase price for the five 2014 acquisitions: | ||||||||||
Inventory | $ | 1,267 | ||||||||
Land and buildings | 15,955 | |||||||||
Restaurant equipment | 5,818 | |||||||||
Restaurant equipment - subject to capital lease | 1,381 | |||||||||
Leasehold improvements | 1,804 | |||||||||
Franchise fees | 3,064 | |||||||||
Franchise rights | 17,098 | |||||||||
Favorable leases | 2,096 | |||||||||
Deferred income taxes | 1,526 | |||||||||
Other assets | 65 | |||||||||
Goodwill | 9,631 | |||||||||
Capital lease obligation for restaurant equipment | (1,458 | ) | ||||||||
Unfavorable leases | (5,912 | ) | ||||||||
Other liabilities | (135 | ) | ||||||||
Net assets acquired | $ | 52,200 | ||||||||
The Company engaged a third party valuation specialist to assist with the valuation of certain leasehold improvements, franchise rights and favorable and unfavorable leases. The Company estimated that the carrying value of restaurant equipment, subject to certain adjustments, and restaurant equipment subject to capital leases was equivalent to fair value of this equipment at the date of the acquisitions. The fair value determination of franchise agreements for certain restaurants was based on the amounts paid for such agreements if the terms were at market rates. The fair values of acquired land and buildings were determined using both the cost approach and market approach. The fair value of the favorable and unfavorable leases acquired, as well as the fair value of land, buildings and leasehold improvements acquired, were measured using significant inputs observable in the open market. As such, the Company categorizes these as Level 2 inputs under ASC 820. The fair value of acquired franchise rights was primarily determined using the income approach. | ||||||||||
Goodwill recorded in connection with these acquisitions was attributable to the workforce of the acquired restaurants and synergies expected to arise from cost savings opportunities. A portion of the goodwill recorded is expected to be deductible for tax purposes. Deferred income tax assets relative to the 2014 acquired restaurants are due to the book and tax bases difference of net favorable and unfavorable leases. | ||||||||||
The weighted average amortization period of the amortizable intangible assets acquired in 2014 is as follows: | ||||||||||
Favorable leases | 13.4 | |||||||||
Unfavorable leases | 15 | |||||||||
Franchise rights | 30.4 | |||||||||
The results of operations for the restaurants acquired are included from the closing date of the respective acquisition. The 2014 acquired restaurants contributed restaurant sales of $34.0 million in 2014. It is impracticable to disclose net earnings for the post-acquisition period for the 2014 acquired restaurants as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision. During the year ended December 28, 2014, approximately $1.9 million of transaction and integration costs related to the 2014 acquisitions were recorded in general and administrative expense. | ||||||||||
The pro forma impact on the results of operations for the 2014 acquisitions is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the acquisitions been consummated at the beginning of the periods presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited proforma operating results: | ||||||||||
Year Ended | ||||||||||
December 28, 2014 | December 29, 2013 | |||||||||
Restaurant sales | $ | 793,521 | $ | 800,264 | ||||||
Net loss from continuing operations | $ | (31,364 | ) | $ | (9,964 | ) | ||||
Basic and diluted loss per share | $ | (1.02 | ) | $ | (0.43 | ) | ||||
This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings or any transaction and integration costs related to the 2014 acquired restaurants. | ||||||||||
2012 Acquisition | ||||||||||
On May 30, 2012, the Company acquired 278 restaurants from BKC for a purchase price consisting of (i) a 28.9% equity ownership interest in the Company, (ii) $3.8 million for cash on hand and inventory at the acquired BKC restaurants and (iii) $9.4 million of franchise fees and $3.6 million for BKC’s assignment of its right of first refusal ("ROFR") on franchisee restaurant transfers in 20 states pursuant to an operating agreement dated May 30, 2012, as amended, (the "operating agreement") with BKC entered into at closing. The ROFR is payable in quarterly payments over five years. The Company also entered into new franchise agreements pursuant to the purchase and operating agreements and entered into new leases with BKC for all of the restaurants acquired in 2012, including leases for 81 restaurants owned in fee by BKC and subleases for 197 restaurants under terms substantially the same as BKC’s underlying leases for those properties. Pursuant to the operating agreement, the Company also agreed to remodel 455 Burger King restaurants to BKC’s 20/20 restaurant image. | ||||||||||
The aggregate purchase price was $74.5 million consisting of equity consideration of $57.7 million from the issuance of 100 shares of Series A Convertible Preferred Stock ("Preferred Stock") and a cash purchase price of $16.8 million. The value of the Preferred Stock was based on 9.4 million shares of common stock, the number of common shares the Preferred Stock would be convertible into at the stock price of $6.13 per share on the closing date of the 2012 acquisition. See Note 14 —Stockholder's Equity for further information. | ||||||||||
The following table summarizes the final allocation of the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed: | ||||||||||
Cash | $ | 417 | ||||||||
Inventory | 3,336 | |||||||||
Leasehold improvements | 7,640 | |||||||||
Restaurant equipment | 20,955 | |||||||||
Restaurant equipment - subject to capital lease | 10,751 | |||||||||
Franchise fees | 8,597 | |||||||||
Franchise rights | 30,700 | |||||||||
Favorable leases | 3,470 | |||||||||
Deferred tax assets | 2,465 | |||||||||
Goodwill | 6,712 | |||||||||
Capital lease obligation for equipment | (10,779 | ) | ||||||||
Other liabilities | (174 | ) | ||||||||
Unfavorable leases | (9,553 | ) | ||||||||
Net assets acquired | $ | 74,537 | ||||||||
The excess of the purchase price over the aggregate fair value of net assets acquired of $6.7 million was recognized as goodwill, a portion of which is expected to be deductible for tax purposes. Deferred tax assets relative to the 2012 acquisition are due to the book and tax bases difference of net favorable and unfavorable leases. | ||||||||||
The fair value of the favorable and unfavorable leases acquired, as well as the fair value of the leasehold improvements and restaurant equipment acquired, were measured using significant inputs not observable in the open market. As such, the Company categorizes these as Level 2 inputs under ASC 820. | ||||||||||
The weighted average amortization period assigned to the amortizable intangible assets acquired in 2012 was as follows: | ||||||||||
Favorable leases | 14.7 | |||||||||
Unfavorable leases | 14.3 | |||||||||
Franchise rights | 33.5 | |||||||||
The results of operations of the acquired BKC restaurants are included in the Company's consolidated statements of operations from May 31, 2012, the day following the closing of the 2012 acquisition. The acquired BKC restaurants contributed revenues of $174.3 million for the period May 31, 2012 through December 30, 2012. It is impracticable to disclose net earnings for the post-acquisition period for these acquired BKC restaurants as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision. During the year ended December 30, 2012, approximately $1.2 million of acquisition and integration costs related to the 2012 acquisition was recorded in general and administrative expense. | ||||||||||
The pro forma impact on the results of operations for the 2012 acquisition is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the acquisition been consummated at the beginning of the periods presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited proforma operating results: | ||||||||||
Year Ended | ||||||||||
December 30, 2012 | ||||||||||
Restaurant sales | $ | 665,032 | ||||||||
Net loss from continuing operations | $ | (24,935 | ) | |||||||
Basic and diluted net loss per share from continuing operations | $ | (1.10 | ) | |||||||
This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings that may be associated with the 2012 acquisition or any acquisition and integration costs we incurred related to the 2012 acquisition. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||
Dec. 28, 2014 | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | ||||
Discontinued Operations | Discontinued Operations | |||
On May 7, 2012, the Company completed the Spin-off of Fiesta, a former wholly owned subsidiary of Carrols which included the Pollo Tropical and Taco Cabana restaurant brands, through the distribution in the form of a pro rata dividend of all of Fiesta's issued and outstanding common stock to Carrols Restaurant Group’s stockholders whereby each stockholder of Carrols Restaurant Group on April 26, 2012 received one share of Fiesta’s common stock for every one share of the Company's common stock held. As a result of the Spin-off, Fiesta is an independent public company whose common stock is traded on The NASDAQ Global Select Market under the symbol “FRGI.” At the date of the Spin-off, the dividend of Fiesta common stock to the Company's stockholders resulted in a distribution of net assets of $9.9 million to Fiesta. Carrols made additional distributions of $0.9 million in the fourth quarter of 2012 related to the allocation to Fiesta of estimated 2012 net operating loss carryforwards and $0.7 million in 2013 related to income taxes for the periods prior to the Spin-off. | ||||
The consolidated statements of operations and consolidated statements of cash flows present Fiesta’s businesses for the period from January 1, 2012 through May 7, 2012 as discontinued operations. | ||||
The consolidated statements of operations and comprehensive loss for period through the completion of the Spin-off included certain general and administrative expenses associated with administrative support to Fiesta for executive management, information systems and certain accounting, legal and other administrative functions, which had previously been allocated to Fiesta. The allocation of certain of these expenses do not qualify for classification within discontinued operations, and therefore are included as general and administrative expenses within continuing operations. In addition, certain expenses directly related to the Spin-off which had previously been allocated to both the Company and Fiesta have been included in discontinued operations in their entirety. | ||||
The following table details amounts associated with the Spin-off which have been reported in discontinued operations: | ||||
Year ended | ||||
December 30, 2012 | ||||
Revenues | $ | 175,364 | ||
Loss from discontinued operations before income taxes | $ | (625 | ) | |
Net loss from discontinued operations | $ | (72 | ) | |
In connection with the Spin-off, on April 24, 2012 Carrols Restaurant Group and Carrols entered into several agreements with Fiesta that govern the Company’s post Spin-off relationship with Fiesta, including a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement and Transition Services Agreement. Amounts earned by Carrols under the Transition Services Agreement were $3.4 million and $3.8 million during the years ended December 29, 2013 and December 30, 2012, respectively. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and equipment | Property and Equipment | ||||||||
Property and equipment at December 28, 2014 and December 29, 2013 consisted of the following: | |||||||||
December 28, 2014 | December 29, 2013 | ||||||||
Land | $ | 6,316 | $ | 4,879 | |||||
Owned buildings | 8,335 | 7,545 | |||||||
Leasehold improvements | 185,109 | 149,268 | |||||||
Equipment | 170,053 | 162,854 | |||||||
Assets subject to capital leases | 16,018 | 16,121 | |||||||
385,831 | 340,667 | ||||||||
Less accumulated depreciation and amortization | (206,448 | ) | (188,492 | ) | |||||
$ | 179,383 | $ | 152,175 | ||||||
Assets subject to capital leases primarily pertain to buildings leased for certain restaurant locations and certain leases of restaurant equipment and had accumulated amortization at December 28, 2014 and December 29, 2013 of $8,168 and $7,346, respectively. Depreciation expense for all property and equipment for the years ended December 28, 2014, December 29, 2013 and December 30, 2012 was $31,372, $28,364 and $21,632, respectively. |
Intangible_Assets_Notes
Intangible Assets (Notes) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill, Franchise Rights, Favorable and Unfavorable Leases | Intangible Assets | ||||||||||||||||
Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year. In performing its goodwill impairment test, the Company compared the net book value of its reporting unit to its estimated fair value, the latter determined by employing a combination of a discounted cash flow analysis and a market-based approach. There have been no goodwill impairment losses during the years ended December 28, 2014, December 29, 2013 and December 30, 2012. | |||||||||||||||||
Goodwill at December 30, 2012 and December 29, 2013 | $ | 8,162 | |||||||||||||||
Acquisitions of restaurants (Note 2) | 9,631 | ||||||||||||||||
Goodwill at December 28, 2014 | $ | 17,793 | |||||||||||||||
Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty-year renewal period. The following is a summary of the Company’s franchise rights as of the respective balance sheet dates: | |||||||||||||||||
December 28, 2014 | December 29, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated | Gross Carrying Amount | Accumulated | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Franchise rights | $ | 186,084 | $ | 83,184 | $ | 168,986 | $ | 78,818 | |||||||||
Amortization expense related to franchise rights for the years ended December 28, 2014, December 29, 2013 and December 30, 2012 was $4,366, $4,120 and $3,767, respectively, and the Company expects annual amortization to be $4,671 in 2015, $4,708 in 2016, and $4,677 in 2017, 2018 and 2019. No impairment charges were recorded related to the Company’s franchise rights for the years ended December 28, 2014, December 29, 2013 and December 30, 2012. | |||||||||||||||||
Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. The following is a summary of the Company’s favorable and unfavorable leases as of the respective balance sheet dates, which are included as assets and liabilities, respectively, on the accompanying consolidated balance sheets: | |||||||||||||||||
December 28, 2014 | December 29, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated | ||||||||||||||
Amortization | |||||||||||||||||
Favorable leases | $ | 5,566 | $ | 841 | $ | 3,470 | $ | 496 | |||||||||
Unfavorable leases | $ | 15,267 | $ | 2,240 | $ | 9,553 | $ | 1,378 | |||||||||
The net reduction of rent expense related to the amortization of favorable and unfavorable leases for the years ended December 28, 2014, December 29, 2013 and December 30, 2012 was $715, $557 and $325, respectively, and the Company expects the net annual amortization to be $812 in 2015, $746 in 2016, $687 in 2017, $676 in 2018 and $615 in 2019. |
Impairment_Of_LongLived_Assets
Impairment Of Long-Lived Assets And Other Lease Charges | 12 Months Ended | ||||||
Dec. 28, 2014 | |||||||
Restructuring Costs and Asset Impairment Charges [Abstract] | |||||||
Asset Impairment Charges [Text Block] | Impairment of Long-Lived Assets and Other Lease Charges | ||||||
The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. | |||||||
The Company determined the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions and the Company’s history of using these assets in the operation of its business. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. | |||||||
During the year ended December 28, 2014 the Company recorded other lease charges of $1.0 million and impairment charges of $2.6 million, consisting of approximately $1.1 million of capital expenditures at previously impaired restaurants and $1.4 million related to initial impairment charges for nine underperforming restaurants. | |||||||
During the year ended December 29, 2013, the Company recorded other lease charges of $1.6 million associated with the closure of four of the Company's restaurants, impairment charges of $2.8 million consisting of approximately $0.9 million of capital expenditures at previously impaired restaurants and $1.9 million related to initial impairment charges for nineteen underperforming restaurants. | |||||||
During the year ended December 30, 2012, the Company recorded impairment charges of $1.0 million related to certain underperforming restaurants. | |||||||
The following table presents the activity in the accrual for closed restaurant locations: | |||||||
December 28, 2014 | December 29, 2013 | ||||||
Balance, beginning of year | $ | 1,466 | $ | — | |||
Provisions for restaurant closures | 724 | 1,616 | |||||
Changes in estimates of accrued costs | 87 | — | |||||
Payments, net | (721 | ) | (242 | ) | |||
Other adjustments, including the effect of discounting future obligations | 165 | 92 | |||||
Balance, end of year | $ | 1,721 | $ | 1,466 | |||
In 2014, changes in estimates of accrued costs primarily relate to revisions to certain sublease income assumptions and costs. |
Other_Liabilities_LongTerm_Not
Other Liabilities, Long-Term (Notes) | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Liabilities, Noncurrent [Abstract] | ||||||||
Other Liabilities Disclosure [Text Block] | Other Liabilities, Long-Term | |||||||
Other liabilities, long-term, at December 28, 2014 and December 29, 2013 consisted of the following: | ||||||||
December 28, 2014 | December 29, 2013 | |||||||
Accrued occupancy costs | $ | 9,287 | $ | 7,793 | ||||
Accrued workers’ compensation and general liability claims | 3,211 | 2,272 | ||||||
Deferred compensation | 567 | 353 | ||||||
Long-term obligation to BKC for right of first refusal | 939 | 1,672 | ||||||
Other | 2,153 | 2,780 | ||||||
$ | 16,157 | $ | 14,870 | |||||
Accrued occupancy costs above include long-term obligations pertaining to closed restaurant locations, contingent rent, and accruals to expense operating lease rental payments on a straight-line basis over the lease term. |
Leases
Leases | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Leases [Abstract] | ||||||||||||
Leases Disclosure [Text Block] | Leases | |||||||||||
The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. | ||||||||||||
In the years ended December 28, 2014, December 29, 2013 and December 30, 2012, the Company sold fifteen, two and one restaurant properties, respectively, in sale-leaseback transactions for net proceeds of $19,565, $3,144 and $1,177, respectively. These leases have been classified as operating leases and contain a twenty-year initial term plus renewal options. | ||||||||||||
Deferred gains from sale-leaseback transactions of Burger King restaurant properties of $373 and $705 were recognized during the years ended December 28, 2014 and December 30, 2012, respectively, and are being amortized over the term of the related leases. There were no deferred gains from sale-leaseback transactions during the year ended December 29, 2013. The amortization of deferred gains from sale-leaseback transactions was $1,793, $1,799 and $1,776 for the years ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively. | ||||||||||||
Minimum rent commitments under capital and non-cancelable operating leases at December 28, 2014 were as follows: | ||||||||||||
Fiscal year ending: | Capital | Operating | ||||||||||
January 3, 2016 | $ | 1,812 | $ | 53,867 | ||||||||
January 1, 2017 | 1,812 | 52,216 | ||||||||||
December 31, 2017 | 1,812 | 50,136 | ||||||||||
December 30, 2018 | 1,818 | 48,127 | ||||||||||
December 29, 2019 | 1,819 | 45,906 | ||||||||||
Thereafter | 1,500 | 391,238 | ||||||||||
Total minimum lease payments | 10,573 | $ | 641,490 | |||||||||
Less amount representing interest | (1,879 | ) | ||||||||||
Total obligations under capital leases | 8,694 | |||||||||||
Less current portion | (1,272 | ) | ||||||||||
Long-term obligations under capital leases | $ | 7,422 | ||||||||||
Total rent expense on operating leases, including contingent rent on both operating and capital leases, was as follows: | ||||||||||||
Year ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Minimum rent on real property | $ | 45,371 | $ | 43,650 | $ | 34,758 | ||||||
Contingent rent on real property | 3,494 | 3,548 | 3,125 | |||||||||
Restaurant rent expense | 48,865 | 47,198 | 37,883 | |||||||||
Administrative and equipment rent | 264 | 225 | 174 | |||||||||
$ | 49,129 | $ | 47,423 | $ | 38,057 | |||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Long-Term Debt | Long-term Debt | |||||||
Long-term debt at December 28, 2014 and December 29, 2013 consisted of the following: | ||||||||
December 28, 2014 | December 29, 2013 | |||||||
Collateralized: | ||||||||
Carrols Restaurant Group 11.25% Senior Secured Second Lien Notes | $ | 150,000 | $ | 150,000 | ||||
Capital leases (Note 8) | 8,694 | 9,336 | ||||||
158,694 | 159,336 | |||||||
Less: current portion | (1,272 | ) | (1,147 | ) | ||||
$ | 157,422 | $ | 158,189 | |||||
Senior Secured Second Lien Notes. On May 30, 2012, the Company issued $150.0 million of 11.25% Senior Secured Second Lien Notes due 2018 (the "Notes") pursuant to an indenture governing such Notes. | ||||||||
The Notes mature and are payable on May 15, 2018. Interest is payable semi-annually on May 15 and November 15. The Notes are guaranteed by the Company’s subsidiaries and are secured by second-priority liens on substantially all of the Company’s and its subsidiaries’ assets (including a pledge of all of the capital stock and equity interests of its subsidiaries). | ||||||||
The Notes are redeemable at the option of the Company in whole or in part at any time after May 15, 2015 at a price of 105.625% of the principal amount plus accrued and unpaid interest, if any, if redeemed before May 15, 2016, 102.813% of the principal amount plus accrued and unpaid interest, if any, if redeemed after May 15, 2016 but before May 15, 2017 and 100% of the principal amount plus accrued and unpaid interest, if any, if redeemed after May 15, 2017. Prior to May 15, 2015, the Company may redeem some or all of the Notes at a redemption price of 100% of the principal amount of each note plus accrued and unpaid interest, if any, and a make-whole premium. In addition, the indenture governing the Notes also provides that the Company may redeem up to 35% of the Notes using the proceeds of certain equity offerings completed before May 15, 2015. | ||||||||
The Notes are jointly and severally guaranteed, unconditionally and in full by the Company's subsidiaries which are directly or indirectly owned by the Company. Separate condensed consolidating information is not included because the Company is a holding company that has no independent assets or operations. There are no significant restrictions on the ability of the Company or the guarantor subsidiaries to obtain funds from its respective subsidiaries. All consolidated amounts in the Company's financial statements are representative of the combined guarantors. | ||||||||
The indenture governing the Notes includes certain covenants, including limitations and restrictions on the Company and its subsidiaries who are guarantors under the indenture to, among other things: incur indebtedness or issue preferred stock; incur liens; pay dividends or make distributions in respect of capital stock or make certain other restricted payments or investments; sell assets; agree to payment restrictions affecting certain subsidiaries; enter into transaction with affiliates; or merge, consolidate or sell substantially all of the Company's assets. | ||||||||
The indenture governing the Notes and the security agreement provide that any capital stock and equity interests of any of the Company's subsidiaries will be excluded from the collateral to the extent that the par value, book value or market value of such capital stock or equity interests exceeds 20% of the aggregate principal amount of the Notes then outstanding. | ||||||||
The indenture governing the Notes contains customary default provisions, including without limitation, a cross-default provision pursuant to which it is an event of default under these notes and the indenture if there is a default under any indebtedness of the Company having an outstanding principal amount of $15.0 million or more which results in the acceleration of such indebtedness prior to its stated maturity or is caused by a failure to pay principal when due. The Company was in compliance as of December 28, 2014 with the restrictive covenants of the indenture governing the Notes. | ||||||||
Senior Credit Facility. On May 30, 2012, the Company entered into a senior credit facility, which provides for aggregate revolving credit borrowings of up to $20.0 million (including $15.0 million available for letters of credit) maturing on May 30, 2017. The senior credit facility also provides for incremental borrowing increases of up to $25.0 million, in the aggregate. As of December 28, 2014, there were no outstanding borrowings under the senior credit facility. | ||||||||
On December 19, 2014 the Company entered into an amendment to the senior credit facility to provide for the release of $20.0 million of cash collateral, originally deposited on May 30, 2012 in an account with the Administrative Agent, and revised certain financial ratios, including the Fixed Charge Coverage Ratio and Adjusted Leverage Ratio (all as defined under the first amendment to the senior credit facility). Additionally, the amendment requires the Company to have no outstanding borrowings for a consecutive 30-day period during each trailing twelve month period. | ||||||||
Effective on December 19, 2014, borrowings under the senior credit facility bear interest at a rate per annum, at the Company’s option, of | ||||||||
(i) the Alternate Base Rate plus the applicable margin of 2.50% to 3.25% based on the Company’s Adjusted Leverage Ratio, or | ||||||||
(ii) the LIBOR Rate plus the applicable margin of 3.50% to 4.25% based on the Company’s Adjusted Leverage Ratio. | ||||||||
At December 28, 2014 the Company's LIBOR rate margin was 4.25% based on the Company's Adjusted Leverage Ratio at that date. | ||||||||
The deposit of cash collateral was classified as restricted cash on the Company's consolidated balance sheet as of December 29, 2013. | ||||||||
Prior to the amendment to the senior credit facility, revolving credit borrowings under the senior credit facility bore interest at a rate per annum, at the Company’s option, of: | ||||||||
(i) the Alternate Base Rate plus the applicable margin of 0.75% or | ||||||||
(ii) the LIBOR Rate plus the applicable margin of 1.75%. | ||||||||
The Company’s obligations under the senior credit facility are guaranteed by its subsidiaries and are secured by first priority liens on substantially all of the assets of the Company and its subsidiaries, including a pledge of all of the capital stock and equity interests of the subsidiaries. | ||||||||
Under the senior credit facility, the Company will be required to make mandatory prepayments of borrowings in the event of dispositions of assets, debt issuances and insurance and condemnation proceeds (all subject to certain exceptions). | ||||||||
The senior credit facility contains certain covenants, including, without limitation, those limiting the Company’s and its subsidiaries' ability to, among other things, incur indebtedness, incur liens, sell or acquire assets or businesses, change the character of its business in all material respects, engage in transactions with related parties, make certain investments, make certain restricted payments or pay dividends. In addition, the senior credit facility, requires the Company to meet certain financial ratios, including Fixed Charge Coverage Ratio and Adjusted Leverage Ratio (both as defined under the senior credit facility, as amended). The Company is in compliance with the covenants under the senior credit facility at December 28, 2014. | ||||||||
The senior credit facility contains customary default provisions, including that the lenders may terminate their obligation to advance and may declare the unpaid balance of borrowings, or any part thereof, immediately due and payable upon the occurrence and during the continuance of customary defaults which include, without limitation, payment default, covenant defaults, bankruptcy type defaults, cross-defaults on other indebtedness, judgments or upon the occurrence of a change of control. | ||||||||
After reserving $12.0 million for letters of credit issued under the senior credit facility at January 1, 2015, which included amounts for anticipated claims from our 2015 renewals of workers’ compensation and other insurance policies, $8.0 million was available for revolving credit borrowings under the senior credit facility at January 1, 2015. | ||||||||
At December 28, 2014, principal payments required on long-term debt, including capital leases, are as follows: | ||||||||
2015 | $ | 1,272 | ||||||
2016 | 1,359 | |||||||
2017 | 1,451 | |||||||
2018 | 151,556 | |||||||
2019 | 1,663 | |||||||
Thereafter | 1,393 | |||||||
$ | 158,694 | |||||||
The weighted average interest rate on all debt, excluding lease financing obligations, for the years ended December 28, 2014, December 29, 2013 and December 30, 2012 was 11.2%, 11.3% and 9.6%, respectively. Interest expense on the Company’s long-term debt, excluding lease financing obligations, was $18,694, $18,734 and $12,657 for the years ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively. |
Lease_Financing_Obligations
Lease Financing Obligations | 12 Months Ended | |||
Dec. 28, 2014 | ||||
Lease Financing Obligations [Abstract] | ||||
Lease Financing Obligations [Text Block] | Lease Financing Obligations | |||
The Company entered into sale-leaseback transactions in various years that did not qualify for sale-leaseback accounting and as a result were classified as financing transactions. Under the financing method, the assets remain on the consolidated balance sheet and proceeds received by the Company from these transactions are recorded as a financing liability. Payments under these leases are applied as payments of imputed interest and deemed principal on the underlying financing obligations. | ||||
These leases generally provide for an initial term of twenty years plus renewal options. The rent payable under such leases includes a minimum rent provision and in some cases, includes rent based on a percentage of sales. These leases also require payment of property taxes, insurance and utilities. | ||||
At December 28, 2014, payments required on lease financing obligations were as follows: | ||||
2015 | $ | 103 | ||
2016 | 104 | |||
2017 | 105 | |||
2018 | 106 | |||
2019 | 108 | |||
Thereafter, through 2023 | 1,561 | |||
Total minimum lease payments | 2,087 | |||
Less: Interest implicit in obligations | (885 | ) | ||
Total lease financing obligations | $ | 1,202 | ||
The interest rate on lease financing obligations was 8.7% at December 28, 2014. Interest expense on lease financing obligations totaled $107 in each of the years ended December 28, 2014, December 29, 2013 and December 30, 2012. |
Other_Income
Other Income | 12 Months Ended |
Dec. 28, 2014 | |
Component of Operating Income [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Income |
In 2012, the Company recorded net gains of $0.7 million related to related to property insurance recoveries from fires at two restaurants. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The provision (benefit) for income taxes on income from continuing operations was comprised of the following: | ||||||||||||
Year ended | ||||||||||||
28-Dec-14 | December 29, 2013 | December 30, 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | (4,325 | ) | $ | (772 | ) | ||||
State | 217 | 212 | 78 | |||||||||
217 | (4,113 | ) | (694 | ) | ||||||||
Deferred: | ||||||||||||
Federal | (11,330 | ) | (5,561 | ) | (10,055 | ) | ||||||
State | (1,448 | ) | (1,347 | ) | (1,407 | ) | ||||||
(12,778 | ) | (6,908 | ) | (11,462 | ) | |||||||
Valuation allowance | 24,326 | 624 | 2,063 | |||||||||
Provision (benefit) for income taxes | $ | 11,765 | $ | (10,397 | ) | $ | (10,093 | ) | ||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. | ||||||||||||
The components of deferred income tax assets and liabilities at December 28, 2014 and December 29, 2013 were as follows: | ||||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Deferred income on sale-leaseback of certain real estate | $ | 5,857 | $ | 6,523 | ||||||||
Lease financing obligations | 227 | 212 | ||||||||||
Postretirement benefit obligations | 1,244 | 1,363 | ||||||||||
Stock-based compensation expense | 273 | 290 | ||||||||||
Property and equipment depreciation | 4,080 | 1,348 | ||||||||||
Federal net operating loss carryforwards | 11,091 | 5,735 | ||||||||||
State net operating loss carryforwards | 3,077 | 2,686 | ||||||||||
Goodwill and other intangibles, net | 2,641 | 2,748 | ||||||||||
Occupancy costs | 6,819 | 5,038 | ||||||||||
Tax credit carryforwards | 9,498 | 5,721 | ||||||||||
Other | 2,241 | 1,890 | ||||||||||
Accrued vacation benefits | 2,020 | 1,939 | ||||||||||
Accrued workers compensation | 992 | 1,013 | ||||||||||
Other accruals | 1,059 | 785 | ||||||||||
Gross deferred income tax assets | 51,119 | 37,291 | ||||||||||
Less: Valuation allowance | (27,423 | ) | (2,687 | ) | ||||||||
Net deferred income tax assets | $ | 23,696 | $ | 34,604 | ||||||||
Deferred income tax liabilities: | ||||||||||||
Accumulated other comprehensive income-postretirement benefits | $ | (34 | ) | $ | (444 | ) | ||||||
Inventory and other reserves | (246 | ) | (272 | ) | ||||||||
Franchise rights | (23,416 | ) | (23,868 | ) | ||||||||
Total deferred income tax liabilities | $ | (23,696 | ) | $ | (24,584 | ) | ||||||
Reported in Consolidated Balance Sheets as: | ||||||||||||
Deferred income taxes - current asset | $ | 1,642 | $ | 3,196 | ||||||||
Deferred income taxes - noncurrent asset (liability) | (1,642 | ) | 6,824 | |||||||||
Carrying value of net deferred income tax assets | $ | — | $ | 10,020 | ||||||||
The Company has performed an assessment of positive and negative evidence regarding the realization of its deferred income tax assets at December 28, 2014 as required by ASC 740. Under ASC 740, the weight given to negative and positive evidence is commensurate only to the extent that such evidence can be objectively verified. ASC 740 also prescribes that objective historical evidence, in particular the Company’s three-year cumulative loss position at December 28, 2014, be given greater weight than subjective evidence, including the Company’s forecasts of future taxable income, which include assumptions that cannot be objectively verified. The Company considered all available positive and negative evidence and determined, based on the required weight of that evidence under ASC 740, that a valuation allowance was needed for all of its net deferred income tax assets at December 28, 2014. As a result, the Company recorded income tax expense of $24.3 million in the fourth quarter of 2014 relative to this valuation reserve. | ||||||||||||
The Company's federal net operating loss carryforwards expire beginning in 2033. As of December 28, 2014, the Company had federal net operating loss carryforwards of approximately $31.7 million. | ||||||||||||
The Company determined in 2012 that there were uncertainties relative to its ability to utilize the deferred income tax assets associated with certain state net operating loss carryforwards. In recognition of these uncertainties, the Company provided a valuation allowance of $2.1 million in 2012 and $0.6 million in 2013. The Company’s state net operating loss carryforwards expire beginning in 2017 through 2034. At December 28, 2014, the Company had a valuation allowance of $3.1 million related to state net operating loss carryforwards. | ||||||||||||
The estimation of future taxable income for federal and state purposes and the Company's ability to realize deferred tax assets can significantly change based on future events and operating results. Thus, recorded valuation allowances may be subject to future changes that could have a material impact on the consolidated financial statements. If the Company determines that it is more likely than not that it will realize these deferred tax assets in the future, the Company will make an adjustment to the valuation allowance at that time. | ||||||||||||
A reconciliation of the statutory federal income tax benefit to the tax provision (benefit) applied to income from continuing operations for the years ended December 28, 2014, December 29, 2013, and December 30, 2012 was as follows: | ||||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | 30-Dec-12 | ||||||||||
Statutory federal income tax benefit | $ | (9,223 | ) | $ | (8,371 | ) | $ | (10,118 | ) | |||
State income taxes (benefit), net of federal benefit | (749 | ) | (656 | ) | (688 | ) | ||||||
Stock-based compensation expense | — | — | (657 | ) | ||||||||
Change in valuation allowances | 24,326 | 624 | 2,063 | |||||||||
Employment tax credits | (2,291 | ) | (2,298 | ) | (353 | ) | ||||||
Miscellaneous | (298 | ) | 304 | (340 | ) | |||||||
Provision (benefit) for income taxes | $ | 11,765 | $ | (10,397 | ) | $ | (10,093 | ) | ||||
The Company's policy is to recognize interest and/or penalties related to uncertain tax positions in income tax expense. At December 28, 2014 and December 29, 2013, the Company had no unrecognized tax benefits and no accrued interest related to uncertain tax positions. The tax years 2009 - 2014 remain open to examination by the major taxing jurisdictions to which the Company is subject. In 2014, the Company concluded an examination of its consolidated federal income tax return for the tax years 2009 through 2012. Although it is not reasonably possible to estimate the amount by which unrecognized tax benefits may increase within the next twelve months due to uncertainties regarding the timing of examinations, the Company does not expect unrecognized tax benefits to significantly change in the next twelve months. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||
Dec. 28, 2014 | ||||||
Share-based Compensation [Abstract] | ||||||
Stock-Based Compensation | Stock-Based Compensation | |||||
2006 Stock Incentive Plan. In 2006, the Company adopted a stock plan entitled the 2006 Stock Incentive Plan, as amended, (the “2006 Plan”) and reserved and authorized a total of 3,300,000 shares of common stock for grant thereunder. On June 9, 2011, the stockholders approved an amendment to the 2006 Plan increasing the number of shares of common stock available for issuance by an additional 1,000,000 shares. As of December 28, 2014, 2,128,160 shares were available for future grant or issuance. | ||||||
In 2014, the Company issued an aggregate of 14,048 non-vested shares of stock to non-employee directors. The non-vested stock award vests over five years at the rate of 20% on each anniversary date of the award, provided that the participant has continuously remained a director of the Company. | ||||||
In connection with the Spin-off of Fiesta, on March 5, 2012 Carrols Restaurant Group converted all of its outstanding vested stock options to shares of the Company's common stock and all of its outstanding non-vested stock options to non-vested shares of the Company's common stock. The non-vested stock awards issued vest according to the same period and anniversary dates as the original stock options, with the pro-rated portion of the award vesting on the anniversary of the original option award. The conversion resulted in $0.5 million of total incremental stock-based compensation cost pertaining to continuing operations of the Company, of which $0.4 million was recognized during the year ended December 30, 2012. | ||||||
Stock-based compensation expense for the years ended December 28, 2014, December 29, 2013, and December 30, 2012 was $1.2 million, $1.2 million and $0.9 million, respectively. | ||||||
A summary of all non-vested shares activity for the year ended December 28, 2014 was as follows: | ||||||
Shares | Weighted Average Grant Date Price | |||||
Non-vested at December 29, 2013 | 662,923 | $ | 7.35 | |||
Granted | 14,048 | 7.12 | ||||
Vested | -278,906 | 8.26 | ||||
Forfeited | -2,638 | 10.11 | ||||
Non-vested at December 28, 2014 | 395,427 | 6.68 | ||||
The fair value of the non-vested shares is based on the closing price of the Company's stock on the date of grant. As of December 28, 2014, the total non-vested stock-based compensation expense was approximately $1.5 million and the remaining weighted average vesting period for non-vested shares was 1.6 years. |
Stockholders_Equity
Stockholder's Equity | 12 Months Ended |
Dec. 28, 2014 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred Stock [Text Block] | Preferred Stock. In connection with the 2012 acquisition of restaurants from BKC discussed in Note 2, the Company issued to BKC 100 shares of Series A Convertible Preferred Stock pursuant to a certificate of designation. |
The Preferred Stock and the shares of Carrols Common Stock to be issued upon conversion are subject to a three-year restriction on transfer or sale by BKC from the date of the issuance and rank senior to Carrols Common Stock with respect to rights on liquidation, winding-up and dissolution of Carrols Restaurant Group. The Preferred Stock is perpetual, will receive any dividends and amounts upon a liquidation event on an as converted basis, does not pay interest and has no mandatory prepayment features. | |
BKC also has certain approval and voting rights as set forth in the certificate of designation for the Preferred Stock so long as it owns greater than 10.0% of the outstanding shares of Carrols Common Stock (on an as-converted basis). The Preferred Stock will vote with the Company's common stock on an as converted basis and provides for the right of BKC to elect (a) two members to the Company's board of directors until the date on which the number of shares of common stock into which the outstanding shares of the Preferred Stock held by BKC are then convertible constitutes less than 14.5% of the total number of outstanding shares of common stock and (b) one member to the Company's board of directors until BKC owns Preferred Stock (on an as converted basis to common stock) which equals less than 10.0% of the total number of outstanding shares of common stock. | |
Common Stock Public Offering. On April 30, 2014, the Company completed an underwritten public offering of 10.0 million shares of common stock at a price of $6.20 per share (the "Public Offering"). The Company also issued and sold an additional 1.5 million shares of common stock pursuant to the underwriters exercise of the option to purchase additional shares at the same terms and conditions as offered in the Public Offering, for a total share issuance of 11.5 million shares. All shares were issued and sold by the Company and the net proceeds received were approximately $67.3 million in the aggregate after deducting underwriting discounts and commissions and offering expenses. | |
The Company has used the net proceeds of the Public Offering to accelerate the remodeling of the Company's restaurants to BKC's 20/20 restaurant image and to acquire 119 additional franchised Burger King restaurants in the second half of 2014. | |
A shelf registration statement (including a prospectus) relating to these securities was filed by the Company with the Securities and Exchange Commission (“SEC”) and was declared effective by the SEC on April 9, 2014. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Income (Loss) Per Share | Net Loss per Share | |||||||||||
The Company applies the two-class method to calculate and present net loss per share. The Company's non-vested share awards and Series A Convertible Preferred Stock issued to BKC contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net loss per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. However, as the Company has incurred net losses from continuing operations for the years ended December 28, 2014, December 29, 2013 and December 30, 2012, and as those losses are not allocated to the participating securities under the two-class method, such method is not applicable for the aforementioned reporting periods. | ||||||||||||
Basic net loss per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net loss per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method. | ||||||||||||
The following table sets forth the calculation of basic and diluted net loss per share: | ||||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | 30-Dec-12 | ||||||||||
Basic and diluted net loss per share: | ||||||||||||
Net loss from continuing operations | $ | (38,117 | ) | $ | (13,519 | ) | $ | (18,816 | ) | |||
Net loss from discontinued operations | $ | — | $ | — | $ | (72 | ) | |||||
Basic and diluted weighted average common shares outstanding | 30,885,275 | 22,958,963 | 22,580,468 | |||||||||
Basic and diluted net loss per share from continuing operations | $ | (1.23 | ) | $ | (0.59 | ) | $ | (0.83 | ) | |||
Basic net loss per share from discontinued operations | $ | — | $ | — | $ | 0 | ||||||
Common shares excluded from diluted net loss per share computation (1) | 9,810,007 | 10,077,503 | 10,349,208 | |||||||||
-1 | Shares issuable upon conversion of preferred stock and non-vested shares were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies |
Lease Guarantees. As of December 28, 2014, the Company is a guarantor under 32 Fiesta restaurant property leases, with lease terms expiring on various dates through 2030, and is the primary lessee on five Fiesta restaurant property leases, which it subleases to Fiesta. The Company is fully liable for all obligations under the terms of the leases in the event that Fiesta fails to pay any sums due under the lease, subject to indemnification provisions of the Separation and Distribution Agreement entered into in connection with the Spin-off. | |
The maximum potential amount of future undiscounted rental payments the Company could be required to make under these leases at December 28, 2014 was $37.8 million. The obligations under these leases will generally continue to decrease over time as these operating leases expire. No payments related to these guarantees have been made by the Company to date and none are expected to be required to be made in the future. The Company has not recorded a liability for these guarantees in accordance with ASC 460 - Guarantees as Fiesta has indemnified the Company for all such obligations and the Company did not believe it was probable it would be required to perform under any of the guarantees or direct obligations. | |
Litigation. The Company is a party to various litigation matters that arise in the ordinary course of business. The Company does not believe that the outcome of any of these other matters will have a material adverse effect on its consolidated financial statements. |
Related_Parties
Related Parties | 12 Months Ended |
Dec. 28, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Transactions with Related Parties |
As part of the 2012 acquisition, the Company issued to BKC 100 shares of Series A Convertible Preferred Stock which is convertible into 9,414,580 shares of Carrols Restaurant Group Common Stock ("Carrols Common Stock"), or 28.9% of the outstanding shares of common stock calculated on the date of the closing of the 2012 acquisition on a fully diluted basis. See Note 13—Stockholder's Equity for further information. As a result of the 2012 acquisition, BKC has two representatives on the Company's board of directors. | |
Each of the Company's restaurants operates under a separate franchise agreement with BKC. These franchise agreements generally provide for an initial term of twenty years and currently have an initial franchise fee of $50. Any franchise agreement, including renewals, can be extended at the Company's discretion for an additional 20 year term, with BKC's approval, provided that, among other things, the restaurant meets the current Burger King image standard and the Company is not in default under terms of the franchise agreement. In addition to the initial franchise fee, the Company generally pays BKC a monthly royalty at a rate of 4.5% of sales. Royalty expense was $29.1 million, $27.7 million, and $22.7 million for the years ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively. | |
The Company is also generally required to contribute 4% of restaurant sales from the Company's restaurants to an advertising fund utilized by BKC for its advertising, promotional programs and public relations activities, and amounts for additional local advertising in markets that approve such advertising. Advertising expense associated with these expenditures was $27.5 million, $28.9 million and $21.3 million for the years ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively. | |
As of December 28, 2014, December 29, 2013, and December 30, 2012, the Company leased 311, 295 and 297 of its restaurant locations from BKC, respectively. As of December 28, 2014, for 182 of the restaurants, the terms and conditions of the lease with BKC are identical to those between BKC and their third-party lessor. Aggregate rent under these BKC leases for the years ended December 28, 2014, December 29, 2013 and December 30, 2012 was $26.6 million, $26.7 million, and $16.6 million, respectively. The Company believes the related party lease terms have not been significantly affected by the fact that the Company and BKC are deemed to be related parties. | |
As of December 28, 2014, the Company owed BKC $1.7 million associated with its purchase of the right of first refusal related to the 2012 acquisition and $3.8 million related to the payment of advertising, royalties and rent, which is remitted on a monthly basis. |
Retirement_Plans
Retirement Plans | 12 Months Ended |
Dec. 28, 2014 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |
Compensation and Employee Benefit Plans [Text Block] | Retirement Plans |
The Company offers its salaried employees the option to participate in the Carrols Corporation Retirement Savings Plan (the “Retirement Plan”). The Retirement Plan includes a savings option pursuant to section 401(k) of the Internal Revenue Code in addition to a post-tax savings option. Participating employees may contribute up to 50% of their salary annually to either of the savings options, subject to other limitations. The employees may allocate their contributions to various investment options available under a trust established by the Retirement Plan. The Company may elect to contribute to the Retirement Plan on an annual basis. The Company's contribution is equal to 50% of the employee's contribution subject to a maximum annual amount and begins to vest after one year of service and fully vests after five years of service. A year of service is defined as a plan year during which an employee completes at least 1,000 hours of service. Expense recognized for the Company's contributions to the Retirement Plan was $370, $346 and $327 for the years ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively. | |
The Company also has an Amended and Restated Deferred Compensation Plan which permits employees not eligible to participate in the Retirement Plan because they have been excluded as “highly compensated” employees (as so defined in the Retirement Plan) to voluntarily defer portions of their base salary and annual bonus. All amounts deferred by the participants earn interest at 8% per annum. There is no Company matching on any portion of the funds. At December 28, 2014 and December 29, 2013, a total of $567 and $353, respectively, was deferred under this plan, including accrued interest. |
Postretirement_Benefits_Notes
Postretirement Benefits (Notes) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | Postretirement Benefits | |||||||||||
The Company sponsors a postretirement medical and life insurance plan covering substantially all Burger King administrative and restaurant management personnel who retire or terminate after qualifying for such benefits. | ||||||||||||
The following was the plan status and accumulated postretirement benefit obligation (APBO) at December 28, 2014 and December 29, 2013: | ||||||||||||
December 28, 2014 | 29-Dec-13 | |||||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation at beginning of year | $ | 2,370 | $ | 2,622 | ||||||||
Service cost | 85 | 89 | ||||||||||
Interest cost | 92 | 91 | ||||||||||
Plan participants' contributions | 89 | 77 | ||||||||||
Actuarial loss (gain) | 808 | (285 | ) | |||||||||
Benefits paid | (342 | ) | (249 | ) | ||||||||
Medicare part D prescription drug subsidy | 19 | 25 | ||||||||||
Benefit obligation at end of year | $ | 3,121 | $ | 2,370 | ||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | ||||||||
Employer contributions | 234 | 147 | ||||||||||
Plan participants' contributions | 89 | 77 | ||||||||||
Benefits paid | (342 | ) | (249 | ) | ||||||||
Medicare part D prescription drug subsidy | 19 | 25 | ||||||||||
Fair value of plan assets at end of year | — | — | ||||||||||
Funded status | $ | (3,121 | ) | $ | (2,370 | ) | ||||||
Weighted average assumptions: | ||||||||||||
Discount rate used to determine benefit obligations | 3.83 | % | 4.48 | % | ||||||||
Discount rate used to determine net periodic benefit cost | 4.48 | % | 3.64 | % | ||||||||
The discount rate is determined based on high-quality fixed income investments that match the duration of expected retiree medical and life insurance benefits. The Company has typically used the corporate AA/Aa bond rate for this assumption. The actuarial loss in 2014 was due primarily to the Company utilizing an updated mortality table as well as increased medical and prescription drug cost trend rates. | ||||||||||||
Components of net periodic postretirement benefit income recognized in the consolidated statements of operations were: | ||||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | 30-Dec-12 | ||||||||||
Service cost | $ | 85 | $ | 89 | $ | 60 | ||||||
Interest cost | 92 | 91 | 106 | |||||||||
Amortization of net gains and losses | 104 | 135 | 134 | |||||||||
Amortization of prior service credit | (355 | ) | (357 | ) | (359 | ) | ||||||
Net periodic postretirement benefit income | $ | (74 | ) | $ | (42 | ) | $ | (59 | ) | |||
Amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit income, consisted of: | ||||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | |||||||||||
Prior service credit | $ | 2,682 | $ | 3,037 | ||||||||
Net loss | (2,595 | ) | (1,891 | ) | ||||||||
Deferred income taxes | (444 | ) | (444 | ) | ||||||||
Accumulated other comprehensive income | $ | (357 | ) | $ | 702 | |||||||
The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit income over the next fiscal year is $160. The amount of prior service credit for the postretirement benefit plan that will be amortized from accumulated other comprehensive income into net periodic postretirement benefit income over the next fiscal year is $355. | ||||||||||||
The following table reflects the changes in accumulated other comprehensive income for the years ended December 28, 2014 and December 29, 2013: | ||||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | |||||||||||
Net actuarial loss (gain) | $ | 808 | $ | (285 | ) | |||||||
Amortization of net loss | (104 | ) | (135 | ) | ||||||||
Amortization of prior service credit | 355 | 357 | ||||||||||
Deferred income taxes | — | 30 | ||||||||||
Total recognized in accumulated other comprehensive loss | $ | 1,059 | $ | (33 | ) | |||||||
Assumed health care cost trend rates at year end were as follows: | ||||||||||||
28-Dec-14 | 29-Dec-13 | 30-Dec-12 | ||||||||||
Medical benefits cost trend rate assumed for the following year pre-65 | 8 | % | 7.5 | % | 8 | % | ||||||
Medical benefits cost trend rate assumed for the following year post-65 | 7 | % | 5.88 | % | 6 | % | ||||||
Prescription drug benefit cost trend rate assumed for the following year | 9 | % | 6.75 | % | 7 | % | ||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 3.89 | % | 5 | % | 5 | % | ||||||
Year that the rate reaches the ultimate trend rate | 2075 | 2021 | 2021 | |||||||||
The assumed healthcare cost trend rate represents the Company's estimate of the annual rates of change in the costs of the healthcare benefits currently provided by the Company's postretirement plan. The healthcare cost trend rate implicitly considers estimates of healthcare inflation, changes in healthcare utilization and delivery patterns, technological advances and changes in the health status of the plan participants. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in the health care cost trend rates would have the following effects: | ||||||||||||
1% Point Increase | 1% Point Decrease | |||||||||||
Effect on total of service and interest cost components | $ | 44 | $ | 31 | ||||||||
Effect on postretirement benefit obligation | 568 | 426 | ||||||||||
During 2015, the Company expects to contribute approximately $124 to its postretirement benefit plan. The benefits, net of Medicare Part D subsidy receipts, expected to be paid in each year from 2015 through 2019 are $124, $97, $125, $155 and $159 respectively, and for the years 2020-2024 the aggregate amount is $912. |
Selected_Quarterly_Financial_a
Selected Quarterly Financial and Earnings Data (Unaudited) (Notes) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information [Text Block] | Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
Year Ended December 28, 2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Restaurant sales | $ | 151,453 | $ | 168,583 | -1 | $ | 179,822 | -1 | $ | 192,897 | -1 | ||||||
Operating income (loss) from operations | -6,484 | -2 | 1,597 | (1)(2) | 330 | (1)(2) | -2,994 | (1)(2) | |||||||||
Net loss | -7,429 | -1,932 | -1,721 | -27,035 | -3 | ||||||||||||
Basic and diluted net loss per share | (0.32 | ) | (0.06 | ) | (0.05 | ) | (0.78 | ) | |||||||||
Year Ended December 29, 2013 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Restaurant sales | $ | 156,139 | $ | 173,518 | $ | 168,312 | $ | 165,514 | |||||||||
Operating income (loss) from operations | -5,784 | -4 | -472 | -4 | 209 | -4 | 972 | -4 | |||||||||
Net loss | -5,199 | -3,496 | -2,762 | -2,062 | |||||||||||||
Basic and diluted net loss per share | (0.23 | ) | (0.15 | ) | (0.12 | ) | (0.09 | ) | |||||||||
-1 | The Company acquired four restaurants in the second quarter of fiscal 2014, 25 restaurants in the third quarter of fiscal 2014 and 94 restaurants in the fourth quarter of fiscal 2014. The Company recorded acquisition and integration costs related to these 2014 acquisitions of $0.1 million in the first quarter of fiscal 2014, $0.2 million in the second quarter of fiscal 2014, $0.4 million in the third quarter of fiscal 2014 and $1.2 million in the fourth quarter of fiscal 2014 (See Note 2). | ||||||||||||||||
-2 | The Company recorded impairment and other lease charges of $0.6 million in the first quarter of fiscal 2014, $0.4 million in the second quarter of fiscal 2014, $0.8 million in the third quarter of fiscal 2014 and $1.7 million in the fourth quarter of fiscal 2014 (See Note 6). | ||||||||||||||||
-3 | The Company recorded income tax expense of $24.3 million related to establishing a valuation allowance for all of the Company's net deferred tax assets in the fourth quarter of 2014 (See Note 12). | ||||||||||||||||
-4 | The Company recorded impairment and other lease charges of $0.6 million in the first quarter of fiscal 2013, $2.2 million in the second quarter of fiscal 2013, $1.1 million in the third quarter of fiscal 2013 and $0.6 million in the fourth quarter of fiscal 2013 (See Note 6). |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts (Notes) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | |||||||||||||||||||||
Column B | Column C | Column D | Column E | ||||||||||||||||||
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to other accounts | Deductions | Balance at End of Period | ||||||||||||||||
Year Ended December 28, 2014 | |||||||||||||||||||||
Deferred income tax valuation allowance | $ | 2,687 | $ | 24,326 | $ | 410 | $ | — | $ | 27,423 | |||||||||||
Year Ended December 29, 2013 | |||||||||||||||||||||
Deferred income tax valuation allowance | 2,063 | 624 | — | — | 2,687 | ||||||||||||||||
Year Ended December 30, 2012 | |||||||||||||||||||||
Deferred income tax valuation allowance | 903 | 2,063 | (903 | ) | — | 2,063 | |||||||||||||||
Basis_Of_Presentation_Policies
Basis Of Presentation (Policies) | 12 Months Ended | |||
Dec. 28, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Consolidation [Policy Text Block] | Basis of Consolidation. Carrols Restaurant Group is a holding company and conducts all of its operations through Carrols Corporation (“Carrols”) and its wholly-owned subsidiary. The consolidated financial statements presented herein include the accounts of Carrols Restaurant Group and its wholly-owned subsidiary Carrols. Any reference to “Carrols LLC” refers to Carrols’ wholly-owned subsidiary, Carrols LLC, a Delaware limited liability company. | |||
Unless the context otherwise requires, Carrols Restaurant Group, Carrols and the direct and indirect subsidiaries of Carrols are collectively referred to as the “Company.” All intercompany transactions have been eliminated in consolidation. | ||||
Fiscal Period [Policy Text Block] | Fiscal Year. The Company uses a 52-53 week fiscal year ending on the Sunday closest to December 31. The fiscal years ended December 28, 2014, December 29, 2013 and December 30, 2012 each contained 52 weeks. | |||
Use of Estimates [Policy Text Block] | Use of Estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates include: accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill, long-lived assets and franchise rights, lease accounting matters, and valuation of deferred income tax assets. Actual results could differ from those estimates. | |||
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. | |||
Inventory [Policy Text Block] | Inventories. Inventories, primarily consisting of food and paper, are stated at the lower of cost (first-in, first-out) or market. | |||
Property and Equipment [Policy Text Block] | Property and Equipment. The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Repair and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: | |||
Owned buildings | 9 | to | 30 years | |
Equipment | 3 | to | 7 years | |
Computer hardware and software | 3 | to | 7 years | |
Assets subject to capital leases | Shorter of useful life or lease term | |||
Leasehold improvements are depreciated over the shorter of their estimated useful lives or the underlying lease term. In circumstances where an economic penalty would be presumed by the non-exercise of one or more renewal options under the lease, the Company includes those renewal option periods when determining the lease term. For significant leasehold improvements made during the latter part of the lease term, the Company amortizes those improvements over the shorter of their useful life or the expected lease term. The expected lease term would consider the exercise of renewal options if the value of the improvements would imply that an economic penalty would be incurred without the renewal of the option. Building costs incurred for new restaurants on leased land are depreciated over the lease term, which is generally a period of twenty years. | ||||
Intangible Assets [Policy Text Block] | Favorable and Unfavorable Leases. Favorable and unfavorable lease valuations resulted from the terms of acquired operating lease contracts being favorable or unfavorable relative to market terms of comparable leases on the acquisition date. Favorable and unfavorable lease valuations are amortized as a component of rent expense on a straight-line basis over the remaining lease terms at the time of the acquisition. | |||
Franchise Rights. For its restaurant acquisitions prior to 2002, the Company generally allocated to franchise rights, an intangible asset, the excess of purchase price and related costs over the value assigned to the net tangible and intangible assets acquired. For acquisitions subsequent to 2002, the Company determined the fair value of franchise rights based upon the acquired restaurants' future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment and assembled workforce to determine the fair value attributable to these franchise rights. Amounts allocated to franchise rights for each acquisition are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty-year renewal period. | ||||
Franchise Agreements. Fees for initial franchises and renewals are amortized using the straight-line method over the term of the agreement, which is generally twenty years. | ||||
Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. | ||||
Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty-year renewal period. | ||||
Goodwill [Policy Text Block] | Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. | |||
Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year. In performing its goodwill impairment test, the Company compared the net book value of its reporting unit to its estimated fair value, the latter determined by employing a combination of a discounted cash flow analysis and a market-based approach. | ||||
Impairment or Disposal of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets. The Company assesses the recoverability of property and equipment, franchise rights and other intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. | |||
The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. | ||||
Deferred Financing Costs [Policy Text Block] | Deferred Financing Costs. Financing costs incurred in obtaining long-term debt and lease financing obligations are capitalized and amortized over the life of the related obligation as interest expense using the effective interest method. | |||
Leases [Policy Text Block] | Leases. All leases are reviewed for capital or operating classification at their inception. The majority of the Company’s leases are operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including any option periods included in the determination of the lease term. Contingent rentals are generally based upon a percentage of sales or a percentage of sales in excess of stipulated amounts and are generally not considered minimum rent payments but are recognized as rent expense when incurred. | |||
The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. | ||||
Lease Financing Obligations [Policy Text Block] | Lease Financing Obligations. Lease financing obligations pertain to real estate sale-leaseback transactions accounted for under the financing method. The assets (land and building) subject to these obligations remain on the Company’s consolidated balance sheet at their historical costs and such assets (excluding land) continue to be depreciated over their remaining useful lives. The proceeds received by the Company from these transactions are recorded as lease financing obligations and the lease payments are applied as payments of principal and interest. The selection of the interest rate on lease financing obligations is evaluated at inception of the lease based on the Company’s incremental borrowing rate adjusted to the rate required to prevent recognition of a non-cash loss or negative amortization of the obligation through the end of the primary lease term. | |||
The Company entered into sale-leaseback transactions in various years that did not qualify for sale-leaseback accounting and as a result were classified as financing transactions. Under the financing method, the assets remain on the consolidated balance sheet and proceeds received by the Company from these transactions are recorded as a financing liability. Payments under these leases are applied as payments of imputed interest and deemed principal on the underlying financing obligations. | ||||
These leases generally provide for an initial term of twenty years plus renewal options. The rent payable under such leases includes a minimum rent provision and in some cases, includes rent based on a percentage of sales. These leases also require payment of property taxes, insurance and utilities. | ||||
Revenue Recognition [Policy Text Block] | Revenue Recognition. Revenues from Company restaurants are recognized when payment is tendered at the time of sale, net of sales discounts and excluding sales tax collected. | |||
Income Tax [Policy Text Block] | Income Taxes. Deferred tax assets and liabilities are based on the difference between the financial statement and tax bases of assets and liabilities as measured by the tax rates that are anticipated to be in effect when those differences reverse. The deferred tax provision generally represents the net change in deferred tax assets and liabilities during the period including any changes in valuation allowances. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established when it is necessary to reduce deferred tax assets to an amount for which realization is likely. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company and its subsidiary file a consolidated federal income tax return. | |||
Advertising Costs [Policy Text Block] | Advertising Costs. All advertising costs are expensed as incurred. | |||
Cost of Sales [Policy Text Block] | Cost of Sales. The Company includes the cost of food, beverage and paper, net of any discounts, in cost of sales. | |||
Pre-opening Costs [Policy Text Block] | Pre-opening Costs. The Company’s pre-opening costs are expensed as incurred and generally include payroll costs associated with opening the new restaurant, rent and promotional costs. | |||
Insurance [Policy Text Block] | Insurance. The Company is insured for workers’ compensation, general liability and medical insurance claims under policies where it pays all claims, subject to stop-loss limitations both for individual claims and claims in the aggregate. Losses are accrued based upon the Company’s estimates of the aggregate liability for claims based on Company experience and certain actuarial methods used to measure such estimates. The Company does not discount any of its self-insurance obligations. | |||
Fair Value of Financial Instruments [Policy Text Block] | Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. Financial instruments include cash, accounts receivable, accounts payable, and long-term debt. The carrying amounts of cash, accounts receivable and accounts payable approximate fair value because of the short-term nature of these financial instruments. The fair value of the Carrols Restaurant Group 11.25% Senior Secured Second Lien Notes due 2018 is based on a recent trading value, which is considered Level 2, and at December 28, 2014 was approximately $160.5 million. See Note 6 for a discussion of the fair value measurement of non-financial assets. | |||
Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of long-lived assets, goodwill and intangible assets. Long-lived assets and definite-lived intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. | ||||
Derivatives [Policy Text Block] | Derivative Financial Instruments. The Company recognizes derivatives on the balance sheet at fair value, which are considered Level 1. The Company’s only derivative in the past three years was an interest rate swap that was settled in conjunction with the refinancing of debt during the year ended December 30, 2012 and it was designated as a cash flow hedge. The effective portion of the changes in the fair value of this arrangement were recognized in accumulated other comprehensive loss until the hedged item was recognized in earnings. The ineffective portion of the changes in the fair value of this arrangement was immediately recognized in earnings. The Company classifies cash inflows and outflows from derivatives within operating activities on the statement of cash flows. | |||
Stock-based Compensation [Policy Text Block] | Stock-Based Compensation. For non-vested stock awards, the fair market value of the award, determined based upon the closing value of the Company’s stock price on the grant date, is recorded to compensation expense on a straight-line basis over the requisite service period. The Company applies the Black-Scholes valuation model in determining the fair value of stock options granted to employees, which is then amortized on a straight-line basis to compensation expense over the requisite service period. In connection with the Spin-off of Fiesta, on March 5, 2012 the Company converted all of its outstanding vested stock options to shares of the Company's common stock and all of its outstanding non-vested stock options to non-vested shares of the Company's common stock. | |||
The Company has adopted an incentive stock plan under which incentive stock options, non-qualified stock options and non-vested shares may be granted to employees and non-employee directors. On an annual basis, the Company has granted incentive stock options, non-qualified stock options and/or non-vested shares under this plan. Non-vested shares granted to corporate employees generally vest 25% per year over four years and non-vested shares granted to non-employee directors generally vest at varying rates over two to five years. Forfeiture rates are based on a stratification of employees by expected exercise behavior and range from 0% to 15%. Also see Note 13 to the consolidated financial statements. | ||||
Gift Cards [Policy Text Block] | Gift cards. The Company sells gift cards in its restaurants that are issued under Burger King Corporation's ("BKC") gift card program. Proceeds from the sale of Burger King gift cards at the Company’s restaurants are received by BKC. The Company recognizes revenue from gift cards upon redemption by the customer. | |||
Concentrations of Credit Risk [Policy Text Block] | Concentrations of Credit Risk. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its day-to-day operating cash balances in non-interest-bearing transaction accounts, which are insured by the Federal Deposit Insurance Corporation up to $250. Although the Company maintains balances that exceed the federally insured limit, it has not experienced any losses related to these balances and believes credit risk to be minimal. | |||
Segment Information [Policy Text Block] | Segment Information. Operating segments are components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker in order to allocate resources and assess performance. The Company's chief operating decision maker currently evaluates the Company's operations from a number of different operational perspectives, however resource allocation decisions are made on a total-company basis. The Company derives all significant revenues from a single operating segment. Accordingly, the Company views the operating results of its Burger King restaurants as one reportable segment. | |||
Subsequent Events [Policy Text Block] | Subsequent Events. The Company reviewed and evaluated subsequent events through the issuance date of the Company’s consolidated financial statements. |
Intangible_Assets_Policies
Intangible Assets (Policies) | 12 Months Ended |
Dec. 28, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill [Policy Text Block] | Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment at least annually as of the fiscal year end. |
Goodwill. The Company is required to review goodwill for impairment annually, or more frequently, when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year. In performing its goodwill impairment test, the Company compared the net book value of its reporting unit to its estimated fair value, the latter determined by employing a combination of a discounted cash flow analysis and a market-based approach. | |
Intangible Assets [Policy Text Block] | Favorable and Unfavorable Leases. Favorable and unfavorable lease valuations resulted from the terms of acquired operating lease contracts being favorable or unfavorable relative to market terms of comparable leases on the acquisition date. Favorable and unfavorable lease valuations are amortized as a component of rent expense on a straight-line basis over the remaining lease terms at the time of the acquisition. |
Franchise Rights. For its restaurant acquisitions prior to 2002, the Company generally allocated to franchise rights, an intangible asset, the excess of purchase price and related costs over the value assigned to the net tangible and intangible assets acquired. For acquisitions subsequent to 2002, the Company determined the fair value of franchise rights based upon the acquired restaurants' future earnings, discounting those earnings using an appropriate market discount rate and subtracting a contributory charge for net working capital, property and equipment and assembled workforce to determine the fair value attributable to these franchise rights. Amounts allocated to franchise rights for each acquisition are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty-year renewal period. | |
Franchise Agreements. Fees for initial franchises and renewals are amortized using the straight-line method over the term of the agreement, which is generally twenty years. | |
Favorable and Unfavorable Leases. Amounts allocated to favorable and unfavorable leases are being amortized using the straight-line method over the remaining terms of the underlying lease agreements as a net reduction of restaurant rent expense. | |
Franchise Rights. Amounts allocated to franchise rights for each acquisition of Burger King restaurants are amortized using the straight-line method over the average remaining term of the acquired franchise agreements plus one twenty-year renewal period. |
Impairment_Of_LongLived_Assets1
Impairment Of Long-Lived Assets And Other Lease Charges (Policies) | 12 Months Ended |
Dec. 28, 2014 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Impairment or Disposal of Long-Lived Assets [Policy Text Block] | Impairment of Long-Lived Assets. The Company assesses the recoverability of property and equipment, franchise rights and other intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. |
The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. If an indicator of impairment exists for any of its assets, an estimate of the undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. |
Leases_Policies
Leases (Policies) | 12 Months Ended |
Dec. 28, 2014 | |
Leases [Abstract] | |
Leases [Policy Text Block] | Leases. All leases are reviewed for capital or operating classification at their inception. The majority of the Company’s leases are operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and/or contingent rent provisions. Rent expense for leases that contain scheduled rent increases is recognized on a straight-line basis over the lease term, including any option periods included in the determination of the lease term. Contingent rentals are generally based upon a percentage of sales or a percentage of sales in excess of stipulated amounts and are generally not considered minimum rent payments but are recognized as rent expense when incurred. |
The Company utilizes land and buildings in its operations under various lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for twenty years and, in many cases, provide for renewal options and in most cases rent escalations. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. |
Lease_Financing_Obligations_Po
Lease Financing Obligations (Policies) | 12 Months Ended |
Dec. 28, 2014 | |
Lease Financing Obligations [Abstract] | |
Lease Financing Obligations [Policy Text Block] | Lease Financing Obligations. Lease financing obligations pertain to real estate sale-leaseback transactions accounted for under the financing method. The assets (land and building) subject to these obligations remain on the Company’s consolidated balance sheet at their historical costs and such assets (excluding land) continue to be depreciated over their remaining useful lives. The proceeds received by the Company from these transactions are recorded as lease financing obligations and the lease payments are applied as payments of principal and interest. The selection of the interest rate on lease financing obligations is evaluated at inception of the lease based on the Company’s incremental borrowing rate adjusted to the rate required to prevent recognition of a non-cash loss or negative amortization of the obligation through the end of the primary lease term. |
The Company entered into sale-leaseback transactions in various years that did not qualify for sale-leaseback accounting and as a result were classified as financing transactions. Under the financing method, the assets remain on the consolidated balance sheet and proceeds received by the Company from these transactions are recorded as a financing liability. Payments under these leases are applied as payments of imputed interest and deemed principal on the underlying financing obligations. | |
These leases generally provide for an initial term of twenty years plus renewal options. The rent payable under such leases includes a minimum rent provision and in some cases, includes rent based on a percentage of sales. These leases also require payment of property taxes, insurance and utilities. |
Net_Income_Loss_Per_Share_Earn
Net Income (Loss) Per Share Earnings per share narrative (Policies) | 12 Months Ended |
Dec. 28, 2014 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | The Company applies the two-class method to calculate and present net loss per share. The Company's non-vested share awards and Series A Convertible Preferred Stock issued to BKC contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net loss per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends. However, as the Company has incurred net losses from continuing operations for the years ended December 28, 2014, December 29, 2013 and December 30, 2012, and as those losses are not allocated to the participating securities under the two-class method, such method is not applicable for the aforementioned reporting periods. |
Basic net loss per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding for the reporting period. Diluted net loss per share reflects additional shares of common stock outstanding, where applicable, calculated using the treasury stock method or the two-class method. |
Basis_Of_Presentation_Tables
Basis Of Presentation (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Property and equipment [Table Text Block] | The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Repair and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: | ||||||||
Owned buildings | 9 | to | 30 years | ||||||
Equipment | 3 | to | 7 years | ||||||
Computer hardware and software | 3 | to | 7 years | ||||||
Assets subject to capital leases | Shorter of useful life or lease term | ||||||||
Property and equipment at December 28, 2014 and December 29, 2013 consisted of the following: | |||||||||
December 28, 2014 | December 29, 2013 | ||||||||
Land | $ | 6,316 | $ | 4,879 | |||||
Owned buildings | 8,335 | 7,545 | |||||||
Leasehold improvements | 185,109 | 149,268 | |||||||
Equipment | 170,053 | 162,854 | |||||||
Assets subject to capital leases | 16,018 | 16,121 | |||||||
385,831 | 340,667 | ||||||||
Less accumulated depreciation and amortization | (206,448 | ) | (188,492 | ) | |||||
$ | 179,383 | $ | 152,175 | ||||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | |||||||||
Dec. 28, 2014 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | the Company acquired an aggregate of 123 restaurants from other franchisees, which we refer to as the "2014 acquired restaurants", in the following transactions: | |||||||||
Closing Date | Number of Restaurants | Purchase Price | Market Location | |||||||
April 30, 2014 | 4 | $ | 681 | Fort Wayne, Indiana | ||||||
June 30, 2014 | 4 | 3,819 | -1 | Pittsburgh, Pennsylvania | ||||||
July 22, 2014 | 21 | 8,609 | Rochester, New York and Southern Tier of Western New York | |||||||
October 8, 2014 | 30 | 20,330 | -1 | Wilmington and Greenville, North Carolina | ||||||
November 4, 2014 | 64 | 18,761 | -2 | Nashville, Tennessee; Indiana and Illinois | ||||||
123 | $ | 52,200 | ||||||||
-1 | The acquisitions on June 30, 2014 and October 8, 2014 included the purchase of one and twelve fee-owned properties, respectively. Ten of these fee-owned properties were sold in sale-leaseback transactions during the fourth quarter of 2014 for net proceeds of $12,961. | |||||||||
-2 | In connection with the acquisition on November 4, 2014, the Company entered into an agreement with BKC to remodel 46 of the restaurants acquired over a five-year period beginning in 2014. | |||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The weighted average amortization period assigned to the amortizable intangible assets acquired in 2012 was as follows: | |||||||||
Favorable leases | 14.7 | |||||||||
Unfavorable leases | 14.3 | |||||||||
Franchise rights | 33.5 | |||||||||
The weighted average amortization period of the amortizable intangible assets acquired in 2014 is as follows: | ||||||||||
Favorable leases | 13.4 | |||||||||
Unfavorable leases | 15 | |||||||||
Franchise rights | 30.4 | |||||||||
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the final allocation of the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed: | |||||||||
Cash | $ | 417 | ||||||||
Inventory | 3,336 | |||||||||
Leasehold improvements | 7,640 | |||||||||
Restaurant equipment | 20,955 | |||||||||
Restaurant equipment - subject to capital lease | 10,751 | |||||||||
Franchise fees | 8,597 | |||||||||
Franchise rights | 30,700 | |||||||||
Favorable leases | 3,470 | |||||||||
Deferred tax assets | 2,465 | |||||||||
Goodwill | 6,712 | |||||||||
Capital lease obligation for equipment | (10,779 | ) | ||||||||
Other liabilities | (174 | ) | ||||||||
Unfavorable leases | (9,553 | ) | ||||||||
Net assets acquired | $ | 74,537 | ||||||||
The following table summarizes the final allocation of the aggregate purchase price for the five 2014 acquisitions: | ||||||||||
Inventory | $ | 1,267 | ||||||||
Land and buildings | 15,955 | |||||||||
Restaurant equipment | 5,818 | |||||||||
Restaurant equipment - subject to capital lease | 1,381 | |||||||||
Leasehold improvements | 1,804 | |||||||||
Franchise fees | 3,064 | |||||||||
Franchise rights | 17,098 | |||||||||
Favorable leases | 2,096 | |||||||||
Deferred income taxes | 1,526 | |||||||||
Other assets | 65 | |||||||||
Goodwill | 9,631 | |||||||||
Capital lease obligation for restaurant equipment | (1,458 | ) | ||||||||
Unfavorable leases | (5,912 | ) | ||||||||
Other liabilities | (135 | ) | ||||||||
Net assets acquired | $ | 52,200 | ||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following table summarizes the Company's unaudited proforma operating results: | |||||||||
Year Ended | ||||||||||
December 28, 2014 | December 29, 2013 | |||||||||
Restaurant sales | $ | 793,521 | $ | 800,264 | ||||||
Net loss from continuing operations | $ | (31,364 | ) | $ | (9,964 | ) | ||||
Basic and diluted loss per share | $ | (1.02 | ) | $ | (0.43 | ) | ||||
Year Ended | ||||||||||
December 30, 2012 | ||||||||||
Restaurant sales | $ | 665,032 | ||||||||
Net loss from continuing operations | $ | (24,935 | ) | |||||||
Basic and diluted net loss per share from continuing operations | $ | (1.10 | ) |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||
Dec. 28, 2014 | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | ||||
Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table details amounts associated with the Spin-off which have been reported in discontinued operations: | |||
Year ended | ||||
December 30, 2012 | ||||
Revenues | $ | 175,364 | ||
Loss from discontinued operations before income taxes | $ | (625 | ) | |
Net loss from discontinued operations | $ | (72 | ) |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and equipment [Table Text Block] | The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Repair and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: | ||||||||
Owned buildings | 9 | to | 30 years | ||||||
Equipment | 3 | to | 7 years | ||||||
Computer hardware and software | 3 | to | 7 years | ||||||
Assets subject to capital leases | Shorter of useful life or lease term | ||||||||
Property and equipment at December 28, 2014 and December 29, 2013 consisted of the following: | |||||||||
December 28, 2014 | December 29, 2013 | ||||||||
Land | $ | 6,316 | $ | 4,879 | |||||
Owned buildings | 8,335 | 7,545 | |||||||
Leasehold improvements | 185,109 | 149,268 | |||||||
Equipment | 170,053 | 162,854 | |||||||
Assets subject to capital leases | 16,018 | 16,121 | |||||||
385,831 | 340,667 | ||||||||
Less accumulated depreciation and amortization | (206,448 | ) | (188,492 | ) | |||||
$ | 179,383 | $ | 152,175 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Goodwill [Line Items] | |||||||||||||||||
Schedule of Goodwill [Table Text Block] | There have been no goodwill impairment losses during the years ended December 28, 2014, December 29, 2013 and December 30, 2012. | ||||||||||||||||
Goodwill at December 30, 2012 and December 29, 2013 | $ | 8,162 | |||||||||||||||
Acquisitions of restaurants (Note 2) | 9,631 | ||||||||||||||||
Goodwill at December 28, 2014 | $ | 17,793 | |||||||||||||||
Intangible Assets [Table Text Block] | The following is a summary of the Company’s favorable and unfavorable leases as of the respective balance sheet dates, which are included as assets and liabilities, respectively, on the accompanying consolidated balance sheets: | ||||||||||||||||
December 28, 2014 | December 29, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated | ||||||||||||||
Amortization | |||||||||||||||||
Favorable leases | $ | 5,566 | $ | 841 | $ | 3,470 | $ | 496 | |||||||||
Unfavorable leases | $ | 15,267 | $ | 2,240 | $ | 9,553 | $ | 1,378 | |||||||||
The following is a summary of the Company’s franchise rights as of the respective balance sheet dates: | |||||||||||||||||
December 28, 2014 | December 29, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated | Gross Carrying Amount | Accumulated | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Franchise rights | $ | 186,084 | $ | 83,184 | $ | 168,986 | $ | 78,818 | |||||||||
Impairment_Of_LongLived_Assets2
Impairment Of Long-Lived Assets And Other Lease Charges (Tables) | 12 Months Ended | ||||||
Dec. 28, 2014 | |||||||
Restructuring Costs and Asset Impairment Charges [Abstract] | |||||||
Closed Restaurant Reserve [Table Text Block] | The following table presents the activity in the accrual for closed restaurant locations: | ||||||
December 28, 2014 | December 29, 2013 | ||||||
Balance, beginning of year | $ | 1,466 | $ | — | |||
Provisions for restaurant closures | 724 | 1,616 | |||||
Changes in estimates of accrued costs | 87 | — | |||||
Payments, net | (721 | ) | (242 | ) | |||
Other adjustments, including the effect of discounting future obligations | 165 | 92 | |||||
Balance, end of year | $ | 1,721 | $ | 1,466 | |||
Other_Liabilities_LongTerm_Tab
Other Liabilities, Long-Term (Tables) | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Liabilities, Noncurrent [Abstract] | ||||||||
Schedule of Other Liabilities [Table Text Block] | Other liabilities, long-term, at December 28, 2014 and December 29, 2013 consisted of the following: | |||||||
December 28, 2014 | December 29, 2013 | |||||||
Accrued occupancy costs | $ | 9,287 | $ | 7,793 | ||||
Accrued workers’ compensation and general liability claims | 3,211 | 2,272 | ||||||
Deferred compensation | 567 | 353 | ||||||
Long-term obligation to BKC for right of first refusal | 939 | 1,672 | ||||||
Other | 2,153 | 2,780 | ||||||
$ | 16,157 | $ | 14,870 | |||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Leases [Abstract] | ||||||||||||
Schedule of minimum rent commitments [Table Text Block] | Minimum rent commitments under capital and non-cancelable operating leases at December 28, 2014 were as follows: | |||||||||||
Fiscal year ending: | Capital | Operating | ||||||||||
January 3, 2016 | $ | 1,812 | $ | 53,867 | ||||||||
January 1, 2017 | 1,812 | 52,216 | ||||||||||
December 31, 2017 | 1,812 | 50,136 | ||||||||||
December 30, 2018 | 1,818 | 48,127 | ||||||||||
December 29, 2019 | 1,819 | 45,906 | ||||||||||
Thereafter | 1,500 | 391,238 | ||||||||||
Total minimum lease payments | 10,573 | $ | 641,490 | |||||||||
Less amount representing interest | (1,879 | ) | ||||||||||
Total obligations under capital leases | 8,694 | |||||||||||
Less current portion | (1,272 | ) | ||||||||||
Long-term obligations under capital leases | $ | 7,422 | ||||||||||
Schedule of rent expense [Table Text Block] | Total rent expense on operating leases, including contingent rent on both operating and capital leases, was as follows: | |||||||||||
Year ended | ||||||||||||
December 28, | December 29, | December 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Minimum rent on real property | $ | 45,371 | $ | 43,650 | $ | 34,758 | ||||||
Contingent rent on real property | 3,494 | 3,548 | 3,125 | |||||||||
Restaurant rent expense | 48,865 | 47,198 | 37,883 | |||||||||
Administrative and equipment rent | 264 | 225 | 174 | |||||||||
$ | 49,129 | $ | 47,423 | $ | 38,057 | |||||||
LongTerm_Debt_LongTerm_Debt_Ta
Long-Term Debt Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt at December 28, 2014 and December 29, 2013 consisted of the following: | |||||||
December 28, 2014 | December 29, 2013 | |||||||
Collateralized: | ||||||||
Carrols Restaurant Group 11.25% Senior Secured Second Lien Notes | $ | 150,000 | $ | 150,000 | ||||
Capital leases (Note 8) | 8,694 | 9,336 | ||||||
158,694 | 159,336 | |||||||
Less: current portion | (1,272 | ) | (1,147 | ) | ||||
$ | 157,422 | $ | 158,189 | |||||
Schedule of Maturities of Long-term Debt [Table Text Block] | At December 28, 2014, principal payments required on long-term debt, including capital leases, are as follows: | |||||||
2015 | $ | 1,272 | ||||||
2016 | 1,359 | |||||||
2017 | 1,451 | |||||||
2018 | 151,556 | |||||||
2019 | 1,663 | |||||||
Thereafter | 1,393 | |||||||
$ | 158,694 | |||||||
Lease_Financing_Obligations_Ta
Lease Financing Obligations (Tables) | 12 Months Ended | |||
Dec. 28, 2014 | ||||
Lease Financing Obligations [Abstract] | ||||
Payments Required on Lease Financing Obligations [Table Text Block] | At December 28, 2014, payments required on lease financing obligations were as follows: | |||
2015 | $ | 103 | ||
2016 | 104 | |||
2017 | 105 | |||
2018 | 106 | |||
2019 | 108 | |||
Thereafter, through 2023 | 1,561 | |||
Total minimum lease payments | 2,087 | |||
Less: Interest implicit in obligations | (885 | ) | ||
Total lease financing obligations | $ | 1,202 | ||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the statutory federal income tax benefit to the tax provision (benefit) applied to income from continuing operations for the years ended December 28, 2014, December 29, 2013, and December 30, 2012 was as follows: | |||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | 30-Dec-12 | ||||||||||
Statutory federal income tax benefit | $ | (9,223 | ) | $ | (8,371 | ) | $ | (10,118 | ) | |||
State income taxes (benefit), net of federal benefit | (749 | ) | (656 | ) | (688 | ) | ||||||
Stock-based compensation expense | — | — | (657 | ) | ||||||||
Change in valuation allowances | 24,326 | 624 | 2,063 | |||||||||
Employment tax credits | (2,291 | ) | (2,298 | ) | (353 | ) | ||||||
Miscellaneous | (298 | ) | 304 | (340 | ) | |||||||
Provision (benefit) for income taxes | $ | 11,765 | $ | (10,397 | ) | $ | (10,093 | ) | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred income tax assets and liabilities at December 28, 2014 and December 29, 2013 were as follows: | |||||||||||
December 28, 2014 | December 29, 2013 | |||||||||||
Deferred income tax assets: | ||||||||||||
Deferred income on sale-leaseback of certain real estate | $ | 5,857 | $ | 6,523 | ||||||||
Lease financing obligations | 227 | 212 | ||||||||||
Postretirement benefit obligations | 1,244 | 1,363 | ||||||||||
Stock-based compensation expense | 273 | 290 | ||||||||||
Property and equipment depreciation | 4,080 | 1,348 | ||||||||||
Federal net operating loss carryforwards | 11,091 | 5,735 | ||||||||||
State net operating loss carryforwards | 3,077 | 2,686 | ||||||||||
Goodwill and other intangibles, net | 2,641 | 2,748 | ||||||||||
Occupancy costs | 6,819 | 5,038 | ||||||||||
Tax credit carryforwards | 9,498 | 5,721 | ||||||||||
Other | 2,241 | 1,890 | ||||||||||
Accrued vacation benefits | 2,020 | 1,939 | ||||||||||
Accrued workers compensation | 992 | 1,013 | ||||||||||
Other accruals | 1,059 | 785 | ||||||||||
Gross deferred income tax assets | 51,119 | 37,291 | ||||||||||
Less: Valuation allowance | (27,423 | ) | (2,687 | ) | ||||||||
Net deferred income tax assets | $ | 23,696 | $ | 34,604 | ||||||||
Deferred income tax liabilities: | ||||||||||||
Accumulated other comprehensive income-postretirement benefits | $ | (34 | ) | $ | (444 | ) | ||||||
Inventory and other reserves | (246 | ) | (272 | ) | ||||||||
Franchise rights | (23,416 | ) | (23,868 | ) | ||||||||
Total deferred income tax liabilities | $ | (23,696 | ) | $ | (24,584 | ) | ||||||
Reported in Consolidated Balance Sheets as: | ||||||||||||
Deferred income taxes - current asset | $ | 1,642 | $ | 3,196 | ||||||||
Deferred income taxes - noncurrent asset (liability) | (1,642 | ) | 6,824 | |||||||||
Carrying value of net deferred income tax assets | $ | — | $ | 10,020 | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes on income from continuing operations was comprised of the following: | |||||||||||
Year ended | ||||||||||||
28-Dec-14 | December 29, 2013 | December 30, 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | (4,325 | ) | $ | (772 | ) | ||||
State | 217 | 212 | 78 | |||||||||
217 | (4,113 | ) | (694 | ) | ||||||||
Deferred: | ||||||||||||
Federal | (11,330 | ) | (5,561 | ) | (10,055 | ) | ||||||
State | (1,448 | ) | (1,347 | ) | (1,407 | ) | ||||||
(12,778 | ) | (6,908 | ) | (11,462 | ) | |||||||
Valuation allowance | 24,326 | 624 | 2,063 | |||||||||
Provision (benefit) for income taxes | $ | 11,765 | $ | (10,397 | ) | $ | (10,093 | ) | ||||
Stockbased_Compensation_StockB
Stock-based Compensation Stock-Based Compensation (Tables) | 12 Months Ended | |||||
Dec. 28, 2014 | ||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||
Schedule of Nonvested Share Activity [Table Text Block] | A summary of all non-vested shares activity for the year ended December 28, 2014 was as follows: | |||||
Shares | Weighted Average Grant Date Price | |||||
Non-vested at December 29, 2013 | 662,923 | $ | 7.35 | |||
Granted | 14,048 | 7.12 | ||||
Vested | -278,906 | 8.26 | ||||
Forfeited | -2,638 | 10.11 | ||||
Non-vested at December 28, 2014 | 395,427 | 6.68 | ||||
Net_Income_Loss_Per_Share_Earn1
Net Income (Loss) Per Share Earnings per Share Table (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the calculation of basic and diluted net loss per share: | |||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | 30-Dec-12 | ||||||||||
Basic and diluted net loss per share: | ||||||||||||
Net loss from continuing operations | $ | (38,117 | ) | $ | (13,519 | ) | $ | (18,816 | ) | |||
Net loss from discontinued operations | $ | — | $ | — | $ | (72 | ) | |||||
Basic and diluted weighted average common shares outstanding | 30,885,275 | 22,958,963 | 22,580,468 | |||||||||
Basic and diluted net loss per share from continuing operations | $ | (1.23 | ) | $ | (0.59 | ) | $ | (0.83 | ) | |||
Basic net loss per share from discontinued operations | $ | — | $ | — | $ | 0 | ||||||
Common shares excluded from diluted net loss per share computation (1) | 9,810,007 | 10,077,503 | 10,349,208 | |||||||||
-1 | Shares issuable upon conversion of preferred stock and non-vested shares were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. |
Postretirement_Benefits_Tables
Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2014 | ||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||
Schedule of Net Funded Status [Table Text Block] | The following was the plan status and accumulated postretirement benefit obligation (APBO) at December 28, 2014 and December 29, 2013: | |||||||||||
December 28, 2014 | 29-Dec-13 | |||||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation at beginning of year | $ | 2,370 | $ | 2,622 | ||||||||
Service cost | 85 | 89 | ||||||||||
Interest cost | 92 | 91 | ||||||||||
Plan participants' contributions | 89 | 77 | ||||||||||
Actuarial loss (gain) | 808 | (285 | ) | |||||||||
Benefits paid | (342 | ) | (249 | ) | ||||||||
Medicare part D prescription drug subsidy | 19 | 25 | ||||||||||
Benefit obligation at end of year | $ | 3,121 | $ | 2,370 | ||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | ||||||||
Employer contributions | 234 | 147 | ||||||||||
Plan participants' contributions | 89 | 77 | ||||||||||
Benefits paid | (342 | ) | (249 | ) | ||||||||
Medicare part D prescription drug subsidy | 19 | 25 | ||||||||||
Fair value of plan assets at end of year | — | — | ||||||||||
Funded status | $ | (3,121 | ) | $ | (2,370 | ) | ||||||
Weighted average assumptions: | ||||||||||||
Discount rate used to determine benefit obligations | 3.83 | % | 4.48 | % | ||||||||
Discount rate used to determine net periodic benefit cost | 4.48 | % | 3.64 | % | ||||||||
Schedule of Net Benefit Costs [Table Text Block] | Components of net periodic postretirement benefit income recognized in the consolidated statements of operations were: | |||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | 30-Dec-12 | ||||||||||
Service cost | $ | 85 | $ | 89 | $ | 60 | ||||||
Interest cost | 92 | 91 | 106 | |||||||||
Amortization of net gains and losses | 104 | 135 | 134 | |||||||||
Amortization of prior service credit | (355 | ) | (357 | ) | (359 | ) | ||||||
Net periodic postretirement benefit income | $ | (74 | ) | $ | (42 | ) | $ | (59 | ) | |||
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | Amounts recognized in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit income, consisted of: | |||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | |||||||||||
Prior service credit | $ | 2,682 | $ | 3,037 | ||||||||
Net loss | (2,595 | ) | (1,891 | ) | ||||||||
Deferred income taxes | (444 | ) | (444 | ) | ||||||||
Accumulated other comprehensive income | $ | (357 | ) | $ | 702 | |||||||
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The following table reflects the changes in accumulated other comprehensive income for the years ended December 28, 2014 and December 29, 2013: | |||||||||||
Year ended | ||||||||||||
28-Dec-14 | 29-Dec-13 | |||||||||||
Net actuarial loss (gain) | $ | 808 | $ | (285 | ) | |||||||
Amortization of net loss | (104 | ) | (135 | ) | ||||||||
Amortization of prior service credit | 355 | 357 | ||||||||||
Deferred income taxes | — | 30 | ||||||||||
Total recognized in accumulated other comprehensive loss | $ | 1,059 | $ | (33 | ) | |||||||
Schedule of Health Care Cost Trend Rates [Table Text Block] | Assumed health care cost trend rates at year end were as follows: | |||||||||||
28-Dec-14 | 29-Dec-13 | 30-Dec-12 | ||||||||||
Medical benefits cost trend rate assumed for the following year pre-65 | 8 | % | 7.5 | % | 8 | % | ||||||
Medical benefits cost trend rate assumed for the following year post-65 | 7 | % | 5.88 | % | 6 | % | ||||||
Prescription drug benefit cost trend rate assumed for the following year | 9 | % | 6.75 | % | 7 | % | ||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 3.89 | % | 5 | % | 5 | % | ||||||
Year that the rate reaches the ultimate trend rate | 2075 | 2021 | 2021 | |||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one-percentage-point change in the health care cost trend rates would have the following effects: | |||||||||||
1% Point Increase | 1% Point Decrease | |||||||||||
Effect on total of service and interest cost components | $ | 44 | $ | 31 | ||||||||
Effect on postretirement benefit obligation | 568 | 426 | ||||||||||
Selected_Quarterly_Financial_a1
Selected Quarterly Financial and Earnings Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
Year Ended December 28, 2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Restaurant sales | $ | 151,453 | $ | 168,583 | -1 | $ | 179,822 | -1 | $ | 192,897 | -1 | ||||||
Operating income (loss) from operations | -6,484 | -2 | 1,597 | (1)(2) | 330 | (1)(2) | -2,994 | (1)(2) | |||||||||
Net loss | -7,429 | -1,932 | -1,721 | -27,035 | -3 | ||||||||||||
Basic and diluted net loss per share | (0.32 | ) | (0.06 | ) | (0.05 | ) | (0.78 | ) | |||||||||
Year Ended December 29, 2013 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Restaurant sales | $ | 156,139 | $ | 173,518 | $ | 168,312 | $ | 165,514 | |||||||||
Operating income (loss) from operations | -5,784 | -4 | -472 | -4 | 209 | -4 | 972 | -4 | |||||||||
Net loss | -5,199 | -3,496 | -2,762 | -2,062 | |||||||||||||
Basic and diluted net loss per share | (0.23 | ) | (0.15 | ) | (0.12 | ) | (0.09 | ) | |||||||||
-1 | The Company acquired four restaurants in the second quarter of fiscal 2014, 25 restaurants in the third quarter of fiscal 2014 and 94 restaurants in the fourth quarter of fiscal 2014. The Company recorded acquisition and integration costs related to these 2014 acquisitions of $0.1 million in the first quarter of fiscal 2014, $0.2 million in the second quarter of fiscal 2014, $0.4 million in the third quarter of fiscal 2014 and $1.2 million in the fourth quarter of fiscal 2014 (See Note 2). | ||||||||||||||||
-2 | The Company recorded impairment and other lease charges of $0.6 million in the first quarter of fiscal 2014, $0.4 million in the second quarter of fiscal 2014, $0.8 million in the third quarter of fiscal 2014 and $1.7 million in the fourth quarter of fiscal 2014 (See Note 6). | ||||||||||||||||
-3 | The Company recorded income tax expense of $24.3 million related to establishing a valuation allowance for all of the Company's net deferred tax assets in the fourth quarter of 2014 (See Note 12). | ||||||||||||||||
-4 | The Company recorded impairment and other lease charges of $0.6 million in the first quarter of fiscal 2013, $2.2 million in the second quarter of fiscal 2013, $1.1 million in the third quarter of fiscal 2013 and $0.6 million in the fourth quarter of fiscal 2013 (See Note 6). |
Basis_Of_Presentation_Narrativ
Basis Of Presentation Narrative (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2014 |
Entity Information [Line Items] | |
Number of restaurants | 674 |
Number of states | 15 |
Franchise Term Renewal Period | 20 years |
Franchise Agreement, Term | 20 years |
Cash, FDIC Insured Amount | $250 |
Number of Reportable Segments | 1 |
Minimum [Member] | |
Entity Information [Line Items] | |
Weeks In fiscal period | 52 |
Maximum [Member] | |
Entity Information [Line Items] | |
Weeks In fiscal period | 53 |
Basis_Of_Presentation_Property
Basis Of Presentation Property and Equipment (Details) | 12 Months Ended |
Dec. 28, 2014 | |
Property and equipment [Line Items] | |
Operating leases, term | 20 years |
Building [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Useful life | 30 years |
Building [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Useful life | 9 years |
Equipment [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Useful life | 7 years |
Equipment [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Useful life | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property and equipment [Line Items] | |
Useful life | 7 years |
Computer Equipment [Member] | Minimum [Member] | |
Property and equipment [Line Items] | |
Useful life | 3 years |
Basis_Of_Presentation_Fair_Val
Basis Of Presentation Fair Value Measurements (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term Debt, Fair Value | $160.50 | ||
Underperforming Restaurants [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Impairment Charges | $2.60 | $2.80 | $1 |
Basis_Of_Presentation_StockBas
Basis Of Presentation Stock-Based Compensation (Details) | 12 Months Ended | |
Dec. 28, 2014 | Dec. 30, 2012 | |
Rate | ||
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeiture rate | 0.00% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeiture rate | 15.00% | |
Management [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Award Vesting Rate | 25.00% | |
Stock Award Vesting Period | 4 years | |
Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Award Vesting Rate | 20.00% | |
Stock Award Vesting Period | 5 years | 2 years |
Acquisition_Table_of_2014_Acqu
Acquisition Table of 2014 Acquisitions (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Business Acquisition [Line Items] | ||||||||
Restaurants Acquired | 94 | 25 | 4 | 119 | 123 | 278 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $52,200,000 | $0 | $12,135,000 | |||||
Proceeds from sale-leaseback transactions | 19,565,000 | 3,144,000 | 1,177,000 | |||||
Restaurants to be remodeled | 455 | |||||||
Revenue of acquired restaurants since acquisition | 34,000,000 | 174,300,000 | ||||||
Acquisition-related costs | 1,200,000 | 400,000 | 200,000 | 100,000 | 1,900,000 | 1,200,000 | ||
April 30, 2014 Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Restaurants Acquired | 4 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 681,000 | |||||||
June 30, 2014 Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Restaurants Acquired | 4 | |||||||
Properties purchased for sale-leaseback, number | 1 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 3,819,000 | |||||||
July 22, 2014 Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Restaurants Acquired | 21 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 8,609,000 | |||||||
October 8, 2014 Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Restaurants Acquired | 30 | |||||||
Properties purchased for sale-leaseback, number | 12 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 20,330,000 | |||||||
November 4, 2014 Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Restaurants Acquired | 64 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 18,761,000 | |||||||
Restaurants to be remodeled | 46 | |||||||
2014 Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties sold in sale-leaseback transactions | 10 | |||||||
Proceeds from sale-leaseback transactions | $12,961,000 |
Acquisition_Purchase_Price_All
Acquisition Purchase Price Allocation, 2014 Acquisitions (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 30, 2012 | Dec. 29, 2013 |
Business Acquisition [Line Items] | |||
Number of acquisitions | 5 | ||
Inventory | $1,267 | 3,336 | |
Land and building | 15,955 | ||
Restaurant equipment | 5,818 | 20,955 | |
Restaurant equipment - subject to capital lease | 1,381 | 10,751 | |
Leasehold improvements | 1,804 | 7,640 | |
Franchise fees | 3,064 | 8,597 | |
Franchise rights | 17,098 | 30,700 | |
Favorable leases | 2,096 | 3,470 | |
Deferred income taxes | 1,526 | 2,465 | |
Other assets | 65 | ||
Goodwill | 17,793 | 8,162 | 8,162 |
Capital lease obligation for restaurant equipment | -1,458 | -10,779 | |
Unfavorable leases | -5,912 | -9,553 | |
Other liabilities | -135 | -174 | |
Off-Market Favorable Lease [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years 5 months | 14 years 8 months | |
Above Market Leases [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years 0 months | 14 years 4 months | |
Franchise Rights [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 30 years 5 months | 33 years 6 months | |
2014 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $9,631 |
Acquisition_Pro_Forma_Informat
Acquisition Pro Forma Information, 2014 Acquisitions (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Business Combinations [Abstract] | |||
Restaurant sales, pro forma | $793,521 | $800,264 | $665,032 |
Net loss, pro forma | ($31,364) | ($9,964) | ($24,935) |
Basic and diluted net loss per share, pro forma | ($1.02) | ($0.43) | ($1.10) |
Acquisition_2012_Acquisition_D
Acquisition 2012 Acquisition (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | 30-May-12 |
Business Acquisition [Line Items] | |||||||||
Restaurants Acquired | 94 | 25 | 4 | 119 | 123 | 278 | |||
Equity ownership | 28.90% | 28.90% | |||||||
Purchase price, cash on hand and inventory | $3.80 | ||||||||
Purchase price, franchise fees | 9.4 | ||||||||
Purchase price, ROFR | 3.6 | ||||||||
Number of States for ROFR | 20 | ||||||||
Loan, Payment Period | 5 years | ||||||||
Restaurants to be remodeled | 455 | ||||||||
Purchase price | 74.5 | ||||||||
Equity consideration | 57.7 | ||||||||
Purchase price, cash | 16.8 | ||||||||
Convertible Preferred Stock, Common Shares Issuable upon Conversion | 9,414,580 | ||||||||
Sale of Stock, Price Per Share | $6.13 | ||||||||
Revenue of acquired restaurants since acquisition | 34 | 174.3 | |||||||
Acquisition-related costs | $1.20 | $0.40 | $0.20 | $0.10 | $1.90 | $1.20 | |||
Property Leases Owned in Fee by BKC [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Restaurants Acquired | 81 | ||||||||
Property Leases Identical to BKC's Lease with Third Party [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Restaurants Acquired | 197 |
Acquisition_Purchase_Price_All1
Acquisition Purchase Price Allocation, 2012 Acquisition (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 30, 2012 | Dec. 29, 2013 |
Business Acquisition [Line Items] | |||
Cash | 417 | ||
Inventory | 1,267 | 3,336 | |
Leasehold improvements | 1,804 | 7,640 | |
Restaurant equipment | 5,818 | 20,955 | |
Restaurant equipment - subject to capital lease | 1,381 | 10,751 | |
Franchise fees | 2,096 | 3,470 | |
Favorable leases | 2,096 | 3,470 | |
Deferred income taxes | 1,526 | 2,465 | |
Goodwill | 17,793 | 8,162 | 8,162 |
Capital lease obligation for restaurant equipment | -1,458 | -10,779 | |
Other liabilities | -135 | -174 | |
Unfavorable leases | -5,912 | -9,553 | |
Net assets acquired | 52,200 | 74,537 | |
May 30, 2012 Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 6,712 | ||
Off-Market Favorable Lease [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years 5 months | 14 years 8 months | |
Franchise Rights [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 30 years 5 months | 33 years 6 months | |
Above Market Leases [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years 0 months | 14 years 4 months |
Acquisition_Pro_Forma_Informat1
Acquisition Pro Forma Information, 2012 Acquisition (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Business Acquisition, Pro Forma Information [Abstract] | |||
Restaurant sales, pro forma | $793,521 | $800,264 | $665,032 |
Net loss from continuing operations, pro forma | ($31,364) | ($9,964) | ($24,935) |
Basic and diluted net loss per share from continuing operations, pro forma | ($1.02) | ($0.43) | ($1.10) |
Discontinued_Operations_Narrat
Discontinued Operations Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 30, 2012 | Jul. 01, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Distribution of Fiesta's net assets | ($900,000) | ($9,900,000) | ($688,000) | ($10,791,000) |
Administrative Costs, Fees for Services under Transition Services Agreement | $3,400,000 | $3,800,000 | ||
Fiesta Restaurant Group [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Common Stock Dividends, Shares | 1 | |||
Carrols Restaurant Group [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Common Stock Dividends, Shares | 1 |
Discontinued_Operations_Fiesta
Discontinued Operations Fiesta's Revenues and Income (Loss) From Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |||
Revenues | $175,364 | ||
Income (loss) from discontinued operations before income taxes | -625 | ||
Net income (loss) from discontinued operations | $0 | $0 | ($72) |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Property and equipment [Line Items] | |||
Land | $6,316 | $4,879 | |
Owned buildings | 8,335 | 7,545 | |
Leasehold improvements | 185,109 | 149,268 | |
Equipment | 170,053 | 162,854 | |
Assets subject to capital leases | 16,018 | 16,121 | |
Propert and equipment, gross | 385,831 | 340,667 | |
Less accumulated depreciation and amortization | -206,448 | -188,492 | |
Property and equipment, net | 179,383 | 152,175 | |
Capital leases, accumulated depreciation | 8,168 | 7,346 | |
Depreciation expense | 36,923 | 33,594 | 26,321 |
Property and Equipment [Member] | |||
Property and equipment [Line Items] | |||
Depreciation expense | $31,372 | $28,364 | $21,632 |
Intangible_Assets_Goodwill_Dis
Intangible Assets Goodwill Disclosures (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Goodwill [Line Items] | |||
Goodwill | $17,793 | $8,162 | $8,162 |
Goodwill impairment loss | $0 | $0 | $0 |
Intangible_Assets_Franchise_Ri
Intangible Assets Franchise Rights Disclosures (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Franchise Term Renewal Period | 20 years | ||
Franchise Rights, Gross | $186,084 | $168,986 | |
Franchise Rights, Accumulated Amortization | 83,184 | 78,818 | |
Franchise rights impairment | 0 | 0 | 0 |
Goodwill | 17,793 | 8,162 | 8,162 |
Franchise Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 4,366 | 4,120 | 3,767 |
Expected Amortization, next fiscal year | 4,671 | ||
Expected Amortization, year two | 4,708 | ||
Expected Amortization, year three | 4,677 | ||
Expected Amortization, year four | 4,677 | ||
Expected Amortization, year five | $4,677 |
Intangible_Assets_Favorable_an
Intangible Assets Favorable and Unfavorable Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Favorable lease, gross | $5,566 | $3,470 | |
Favorable leases, accumulated amortization | 841 | 496 | |
Unfavorable leases, gross | 15,267 | 9,553 | |
Unfavorable leases, accumulated amortization | 2,240 | 1,378 | |
Favorable and Unfavorable Leases [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 715 | 557 | 325 |
Expected Amortization, next fiscal year | 812 | ||
Expected Amortization, year two | 746 | ||
Expected Amortization, year three | 687 | ||
Expected Amortization, year four | 676 | ||
Expected Amortization, year five | $615 |
Impairment_Of_LongLived_Assets3
Impairment Of Long-Lived Assets And Other Lease Charges (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Other lease charges | $1 | $1.60 | |
Other lease charges, number of restaurants | 4 | ||
Asset impairment charges, number of restaurants | 9 | 19 | |
Underperforming Restaurants [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment charges | 2.6 | 2.8 | 1 |
Previously Impaired [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment charges | 1.1 | 0.9 | |
Initial Impairments [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment charges | $1.40 | $1.90 |
Impairment_Of_LongLived_Assets4
Impairment Of Long-Lived Assets And Other Lease Charges Closed Restaurant Reserve Activity (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning of year | $1,466 | $0 |
Payments, net | -721 | -242 |
Other adjustments | 165 | 92 |
Balance, end of year | 1,721 | 1,466 |
Provisions for closures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Provisions for restaurant closures | 724 | 1,616 |
Changes in estimates [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Provisions for restaurant closures | $87 | $0 |
Other_Liabilities_LongTerm_Det
Other Liabilities, Long-Term (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities, Noncurrent [Abstract] | ||
Accrued Occupancy Costs | $9,287 | $7,793 |
Accrued workers' compensation and general liability claims | 3,211 | 2,272 |
Deferred compensation | 567 | 353 |
Long-term obligation to BKC for right of first refusal | 939 | 1,672 |
Other | 2,153 | 2,780 |
Other Liabilities, Noncurrent | $16,157 | $14,870 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Leases [Abstract] | |||
Sale leaseback transactions, number | 15 | 2 | 1 |
Proceeds from sale-leaseback transactions | $19,565 | $3,144 | $1,177 |
Operating leases, term | 20 years | ||
Sale leaseback transaction, deferred gains | 373 | 0 | 705 |
Amortization of deferred gains from sale leaseback transactions | $1,793 | $1,799 | $1,776 |
Leases_Minimum_Rent_Disclosure
Leases Minimum Rent Disclosures (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Leases [Abstract] | ||
Capital lease payments due in twelve months | $1,812 | |
Capital lease payments due in two years | 1,812 | |
Capital lease payments due in three years | 1,812 | |
Capital lease payments due in four years | 1,818 | |
Capital lease payments due in five years | 1,819 | |
Capital lease payments due thereafter | 1,500 | |
Capital leases, future minimum payments due | 10,573 | |
Less amount representing interest | -1,879 | |
Total obligations under capital leases | 8,694 | 9,336 |
Less current portion | -1,272 | |
Long-term obligations under capital leases | 7,422 | |
Operating lease payments due in next twelve months | 53,867 | |
Operating lease payments due in two years | 52,216 | |
Operating lease payments due in three years | 50,136 | |
Operating lease payments due in four years | 48,127 | |
Operating lease payments due in five years | 45,906 | |
Operating lease payments due thereafter | 391,238 | |
Operating leases, future minimum payments due | $641,490 |
Leases_Rent_Expense_Disclosure
Leases Rent Expense Disclosures (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Operating Leased Assets [Line Items] | |||
Minimum rent on real property | $45,371 | $43,650 | $34,758 |
Contingent rent on real property | 3,494 | 3,548 | 3,125 |
Restaurant rent expense | 48,865 | 47,198 | 37,883 |
Rent expense on operating leases | 49,129 | 47,423 | 38,057 |
General and Administrative Expense [Member] | |||
Operating Leased Assets [Line Items] | |||
Rent expense on operating leases | $264 | $225 | $174 |
LongTerm_Debt_Long_Term_Debt_D
Long-Term Debt Long Term Debt (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Carrols Restaurant Group 11.25% Senior Secured Second Lien Notes | $150,000 | $150,000 |
Capital leases | 8,694 | 9,336 |
Long-term Debt | 158,694 | 159,336 |
Less: current portion | -1,272 | -1,147 |
Long-term Debt | $157,422 | $158,189 |
LongTerm_Debt_Senior_Secured_S
Long-Term Debt Senior Secured Second Lien Notes (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
Rate | ||
Debt Instrument [Line Items] | ||
Carrols Restaurant Group 11.25% Senior Secured Second Lien Notes | $150,000,000 | $150,000,000 |
Interest Rate | 11.25% | |
Senior Notes, Amount Redeemable with Proceeds from Equity Offerings | 35.00% | |
Collateral exclusion for material subsidiaries, percentage of Senior Notes | 20.00% | |
Senior Notes, Cross Default Provision, Minimum Debt Principal Amount | 15,000,000 | |
Debt Instrument, Redemption, Period Two [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Redemption Price, Year Five | 1.05625 | |
Debt Instrument, Redemption, Period Three [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Redemption Price, Year Five | 1.02813 | |
Debt Instrument, Redemption, Period Four [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Redemption Price, Year Five | 1 | |
Debt Instrument, Redemption, Period One [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Redemption Price, Year Five | $1 |
LongTerm_Debt_Senior_Credit_Fa
Long-Term Debt Senior Credit Facility (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Jan. 01, 2015 | |
Rate | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | 20,000,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 25,000,000 | ||
Long-term Line of Credit | 0 | ||
Restricted cash | 0 | 20,000,000 | |
Line of Credit Facility, Interest Rate at Period End | 4.25% | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | 15,000,000 | ||
Base Rate [Member] | Prior to Cash Collateral Release [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.75% | ||
Base Rate [Member] | Following the Cash Collateral Release [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 3.25% | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Prior to Cash Collateral Release [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 1.75% | ||
London Interbank Offered Rate (LIBOR) [Member] | Following the Cash Collateral Release [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 4.25% | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.50% | ||
Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Letters of Credit Outstanding, Amount | 12,000,000 | ||
Line of Credit Facility, Unused Borrowing Capacity | $8,000,000 |
LongTerm_Debt_LongTerm_Debt_Di
Long-Term Debt Long-Term Debt Disclosures (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Rate | Rate | Rate | |
Debt Disclosure [Abstract] | |||
Debt, Weighted Average Interest Rate | 11.20% | 11.30% | 9.60% |
Interest Expense, Debt | $18,694 | $18,734 | $12,657 |
LongTerm_Debt_Future_Maturitie
Long-Term Debt Future Maturities (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Next Twelve Months | $1,272 | |
Year Two | 1,359 | |
Year Three | 1,451 | |
Year Four | 151,556 | |
Year Five | 1,663 | |
Thereafter | 1,393 | |
Long-term Debt | $158,694 | $159,336 |
Lease_Financing_Obligations_De
Lease Financing Obligations (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Rate | |||
Lease Financing Obligations [Line Items] | |||
Lease Term | 20 years | ||
Next twelve months | $103,000 | ||
Year two | 104,000 | ||
Year three | 105,000 | ||
Year four | 106,000 | ||
Year five | 108,000 | ||
Thereafter | 1,561,000 | ||
Total minimum lease payments | 2,087,000 | ||
Less: Interest implicit in obligations | -885,000 | ||
Total lease financing obligations | 1,202,000 | ||
Interest Rate | 11.25% | ||
Interest Expense | 18,801,000 | 18,841,000 | 12,764,000 |
Lease Financing Obligations [Member] | |||
Lease Financing Obligations [Line Items] | |||
Interest Rate | 8.70% | ||
Interest Expense | $107,000 | $107,000 | $107,000 |
Other_Income_Details
Other Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Component of Operating Income [Abstract] | |||
Net gains | ($47) | ($17) | $717 |
Income_Taxes_Schedule_of_Compo
Income Taxes Schedule of Components of income Tax Expense (Benefit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Income Tax Disclosure [Abstract] | ||||
Valuation Allowances and Reserves, Charged to Cost and Expense | $24,326 | $24,326 | $624 | $2,063 |
Federal | 0 | -4,325 | -772 | |
State | 217 | 212 | 78 | |
Current Income Tax Expense (Benefit) | 217 | -4,113 | -694 | |
Federal | -11,330 | -5,561 | -10,055 | |
State | -1,448 | -1,347 | -1,407 | |
Deferred | -12,778 | -6,908 | -11,462 | |
Valuation allowance | 24,326 | 624 | 2,063 | |
Provision (benefit) for income taxes | $11,765 | ($10,397) | ($10,093) |
Income_Taxes_Schedule_of_Defer
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 |
In Thousands, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ||||
Deferred income on sale-leaseback of certain real estate | $5,857 | $6,523 | ||
Lease financing obligations | 227 | 212 | ||
Postretirement benefit expenses | 1,244 | 1,363 | ||
Stock-based compensation expense | 273 | 290 | ||
Property and equipment depreciation | 4,080 | 1,348 | ||
Federal net operating loss carryforwards | 11,091 | 5,735 | ||
State net operating loss carryforwards | 3,077 | 2,686 | ||
Goodwill and other intangibles, net | 2,641 | 2,748 | ||
Occupancy costs | 6,819 | 5,038 | ||
Tax credit carryforwards | 9,498 | 5,721 | ||
Other | 2,241 | 1,890 | ||
Accrued vacation benefits | 2,020 | 1,939 | ||
Accrued workers compensation | 992 | 1,013 | ||
Other accruals | 1,059 | 785 | ||
Gross deferred income tax assets | 51,119 | 37,291 | ||
Less: Valuation allowance | -27,423 | -2,687 | -2,063 | -903 |
Net deferred income tax assets | 23,696 | 34,604 | ||
Accumulated other comprehensive income-postretirement benefits | -34 | -444 | ||
Inventory and other reserves | -246 | -272 | ||
Franchise rights | 23,416 | 23,868 | ||
Deferred Tax Liabilities, Gross | -23,696 | -24,584 | ||
Deferred income taxes - current asset | 1,642 | 3,196 | ||
Deferred income taxes - noncurrent asset (liability) | 0 | 6,824 | ||
Deferred income taxes - noncurrent asset (liability) | -1,642 | 0 | ||
Carrying value of net deferred income tax assets | $0 | $10,020 |
Income_Taxes_Narrative_Details
Income Taxes Narrative (Details) (USD $) | 12 Months Ended | |||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | |
Operating Loss Carryforwards [Line Items] | ||||
Change in valuation allowance | ($24,326,000) | ($624,000) | ($2,063,000) | |
Deferred Tax Assets, Valuation Allowance | 27,423,000 | 2,687,000 | 2,063,000 | 903,000 |
Unrecognized Tax Benefits | 0 | 0 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0 | 0 | ||
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Federal operating loss carryforwards | 31,700,000 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | $3,100,000 |
Income_Taxes_Effective_Rate_Re
Income Taxes Effective Rate Reconciliation (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Statutory federal income tax provision (benefit) | ($9,223) | ($8,371) | ($10,118) | |
State income taxes (benefit), net of federal provision (benefit) | -749 | -656 | -688 | |
Stock-based compensation expense | 0 | 0 | -657 | |
Change in valuation allowance | 24,326 | 624 | 2,063 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 24,326 | 24,326 | 624 | 2,063 |
Employment tax credits | -2,291 | -2,298 | -353 | |
Miscellaneous | -298 | 304 | -340 | |
Provision (benefit) for income taxes | $11,765 | ($10,397) | ($10,093) |
Stockbased_Compensation_StockB1
Stock-based Compensation Stock-Based Compensation Narrative (Details) (USD $) | 12 Months Ended | |||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Jan. 01, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Authorized Under Stock Incentive Plan | 3,300,000 | |||
Additional Shares Authorized | 1,000,000 | |||
Shares Available for Grant | 2,128,160 | |||
Plan Modification, Incremental Compensation Cost | $500,000 | |||
Stock-based compensation | 1,180,000 | 1,205,000 | 925,000 | |
Nonvested stock-based compensation expense | 1,500,000 | |||
Remaining weighted average vesting period | 1 year 7 months | |||
Recognized in Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Plan Modification, Incremental Compensation Cost | $400,000 | |||
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted Stock Awards Issued During Period | 14,048 | |||
Stock Award Vesting Period | 5 years | 2 years | ||
Stock Award Vesting Rate | 20.00% |
Stockbased_Compensation_Summar
Stock-based Compensation Summary of Non-Vested Stock Activity (Details) (USD $) | 12 Months Ended |
Dec. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested shares at beginning of period | 662,923 |
Nonvested shares, Weighted Average Grant Date Price at beginning of period | $7.35 |
Grants in Period | 14,048 |
Grants in Period, Weighted Average Grant Date Price | $7.12 |
Vested | -278,906 |
Vested, Weighted Average Grant Date Price | $8.26 |
Forfeited | -2,638 |
Forfeited, Weighted Average Grant Date Price | $10.11 |
Nonvested shares at end of period | 395,427 |
Nonvested shares, Weighted Average Grant Date Price at end of period | $6.68 |
Stockholders_Equity_Preferred_
Stockholder's Equity Preferred Stock (Details) | 12 Months Ended | |
Dec. 28, 2014 | Dec. 29, 2013 | |
Rate | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 100 | 100 |
Stock Ownership, Restriction on Transfer | 3 | |
Minimum [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Ownership | 10.00% | |
Board of directors, number of members | 1 | |
Maximum [Member] | ||
Class of Stock [Line Items] | ||
Common Stock Ownership | 14.50% | |
Board of directors, number of members | 2 |
Stockholders_Equity_Public_Off
Stockholder's Equity Public Offering (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | Apr. 30, 2014 |
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 11,500,000 | |||||||
Shares Issued, Price Per Share | $6.20 | |||||||
Proceeds from public stock offering, net of expenses | $67,327 | $0 | $0 | |||||
Restaurants Acquired | 94 | 25 | 4 | 119 | 123 | 278 | ||
Public Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 10,000,000 | |||||||
Over-Allotment Option [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 1,500,000 |
Net_Income_Loss_Per_Share_Earn2
Net Income (Loss) Per Share Earnings Per Share Table (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Earnings Per Share [Abstract] | |||
Net income (loss) from continuing operations | ($38,117) | ($13,519) | ($18,816) |
Net income (loss) from discontinued operations | $0 | $0 | ($72) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 30,885,275 | 22,958,963 | 22,580,468 |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | ($1.23) | ($0.59) | ($0.83) |
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic and Diluted Share | $0 | $0 | $0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 9,810,007 | 10,077,503 | 10,349,208 |
Commitments_And_Contingencies_
Commitments And Contingencies Lease Guarantees (Details) (USD $) | Dec. 28, 2014 |
In Millions, unless otherwise specified | |
Guarantor Obligations [Line Items] | |
Maximum potential undiscounted rental payments | $37.80 |
Property Lease Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Property Leases | 32 |
Performance Guarantee [Member] | |
Guarantor Obligations [Line Items] | |
Property Leases | 5 |
Related_Parties_Details
Related Parties (Details) (USD $) | 12 Months Ended | |||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | 30-May-12 | |
Y | ||||
Related Party Transaction [Line Items] | ||||
Preferred Stock, Shares Issued | 100 | 100 | ||
Convertible Preferred Stock, Common Shares Issuable upon Conversion | 9,414,580 | |||
Franchise Term | 20 | |||
Sale of Stock, Percentage of Ownership after Transaction | 28.90% | 28.90% | ||
Restaurant rent expense | $48,865,000 | $47,198,000 | $37,883,000 | |
Related Party Transaction, Accounts Payable | 19,239,000 | 14,687,000 | ||
Related Party, Burger King Corporate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Initial Franchise Fees | 50,000 | |||
Related Party Transaction, Royalty Fee Rate | 4.50% | |||
Royalty Expense | 29,100,000 | 27,700,000 | 22,700,000 | |
Related Party Transaction, Advertising Fee Rate | 4.00% | |||
Advertising Expense | 27,500,000 | 28,900,000 | 21,300,000 | |
Leases, Number of Leased Restaurants | 311 | 295 | 297 | |
Restaurant rent expense | 26,600,000 | 26,700,000 | 16,600,000 | |
Related Party Transaction, Other Liabilities | 1,700,000 | |||
Related Party Transaction, Accounts Payable | $3,800,000 | |||
Property Leases Identical to BKC's Lease with Third Party [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Leases, Number of Leased Restaurants | 182 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Rate | |||
Retirement Plans Disclosures [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 50.00% | ||
Defined Contribution Plan, Requisite Service Period, Hours of Service | 1,000 | ||
Defined Contribution Plan, Cost Recognized | $370 | $346 | $327 |
Deferred Compensation Arrangements, Interest Rate | 8.00% | ||
Deferred Compensation Arrangement with Individual, Employer Contribution | 0 | ||
Deferred compensation | $567 | $353 | |
Minimum [Member] | |||
Retirement Plans Disclosures [Line Items] | |||
Defined Contribution Plan, Vesting Period of Company Contributions | 1 year | ||
Maximum [Member] | |||
Retirement Plans Disclosures [Line Items] | |||
Defined Contribution Plan, Vesting Period of Company Contributions | 5 years |
Postretirement_Benefits_Schedu
Postretirement Benefits Schedule of Net Funded Status and APBO (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Rate | Rate | ||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||
Benefit obligation at beginning of year | $2,370,000 | $2,622,000 | |
Service cost | 85,000 | 89,000 | 60,000 |
Interest cost | 92,000 | 91,000 | 106,000 |
Plan participants' contributions | 89,000 | 77,000 | |
Actuarial loss (gain) | 808,000 | -285,000 | |
Benefits paid | -342,000 | -249,000 | |
Medicare part D prescription drug subsidy | 19,000 | 25,000 | |
Benefit obligation at end of year | 3,121,000 | 2,370,000 | 2,622,000 |
Employer contributions | 234,000 | 147,000 | |
Fair value of plan assets at beginning of year | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status | ($3,121,000) | ($2,370,000) | |
Discount rate used to determine benefit obligations | 3.83% | 4.48% | |
Discount rate used to determine net periodic benefit cost | 4.48% | 3.64% |
Postretirement_Benefits_Compon
Postretirement Benefits Components of Net Periodic Postretirement Benefit Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $85 | $89 | $60 |
Interest cost | 92 | 91 | 106 |
Amortization of net gains and losses | 104 | 135 | 134 |
Amortization of prior service credit | -355 | -357 | -359 |
Net periodic postretirement benefit income | ($74) | ($42) | ($59) |
Postretirement_Benefits_Amount
Postretirement Benefits Amounts Recognized in Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service cost | $2,682 | $3,037 |
Net gain | -2,595 | -1,891 |
Deferred Tax Liabilities, Other Comprehensive Income | -34 | -444 |
Accumulated other comprehensive income | -357 | 702 |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | 160 | |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | -355 | |
Other Comprehensive Income (Loss) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred Tax Liabilities, Other Comprehensive Income | ($444) |
Postretirement_Benefits_Change
Postretirement Benefits Change in Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Net actuarial (gain) loss | $808 | ($285) | |
Amortization of net loss | -104 | -135 | |
Amortization of prior service credit | 355 | 357 | |
Deferred income taxes | 0 | 30 | |
Total recognized in accumulated other comprehensive income | $1,059 | ($33) | $484 |
Postretirement_Benefits_Assume
Postretirement Benefits Assumed Health Care Trend Rates (Details) | 12 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Rate | Rate | Rate | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year, pre-65 | 8.00% | 7.50% | 8.00% |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year, post-65 | 7.00% | 5.88% | 6.00% |
Prescription drug benefit cost trend rate assumed for the following year | 9.00% | 6.75% | 7.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 3.89% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2075 | 2021 | 2021 |
Postretirement_Benefits_Expect
Postretirement Benefits Expected Future Benefit Payments (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $124 |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 124 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 97 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 125 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 155 |
Defined Benefit Plan, Expected Future Benefit Payments, Rolling Year Five | 159 |
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $912 |
Postretirement_Benefits_Postre
Postretirement Benefits Postretirement Benefits (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $44 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 31 |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 568 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $426 |
Selected_Quarterly_Financial_a2
Selected Quarterly Financial and Earnings Data (Unaudited) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Restaurants Acquired | 94 | 25 | 4 | 119 | 123 | 278 | |||||
Acquisition-related costs | $1,200,000 | $400,000 | $200,000 | $100,000 | $1,900,000 | $1,200,000 | |||||
Impairment and other lease charges | 1,700,000 | 800,000 | 400,000 | 600,000 | 600,000 | 1,100,000 | 2,200,000 | 3,541,000 | 4,462,000 | 977,000 | |
Income tax expense, valuation allowance | $24,326,000 | $24,326,000 | $624,000 | $2,063,000 |
Selected_Quarterly_Financial_a3
Selected Quarterly Financial and Earnings Data (Unaudited) Quarterly Table (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Restaurant sales | $192,897 | $179,822 | $168,583 | $151,453 | $165,514 | $168,312 | $173,518 | $156,139 | $692,755 | $663,483 | $539,608 |
Operating income (loss) from continuing operations | -2,994 | 330 | 1,597 | -6,484 | 972 | 209 | -472 | -5,784 | -7,551 | -5,075 | -14,636 |
Net income (loss) | ($27,035) | ($1,721) | ($1,932) | ($7,429) | ($2,062) | ($2,762) | ($3,496) | ($5,199) | ($38,117) | ($13,519) | ($18,888) |
Basic and diluted net loss per share | ($0.78) | ($0.05) | ($0.06) | ($0.32) | ($0.09) | ($0.12) | ($0.15) | ($0.23) |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance Beginning of Year | $2,687 | $2,063 | $903 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 24,326 | 24,326 | 624 | 2,063 |
Valuation Allowances and Reserves, Charged to Other Accounts | 410 | 0 | -903 | |
Valuation Allowances and Reserves, Deductions | 0 | 0 | 0 | |
Deferred Tax Assets, Valuation Allowance, End of Year | $27,423 | $27,423 | $2,687 | $2,063 |