Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 25, 2020 | May 14, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 25, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-18051 | |
Entity Registrant Name | DENNY’S CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3487402 | |
Entity Address, Address Line One | 203 East Main Street | |
Entity Address, City or Town | Spartanburg, | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29319-0001 | |
City Area Code | 864 | |
Local Phone Number | 597-8000 | |
Title of 12(b) Security | $.01 Par Value, Common Stock | |
Trading Symbol | DENN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 55,692,074 | |
Entity Central Index Key | 0000852772 | |
Current Fiscal Year End Date | --12-25 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 25, 2020 | Dec. 25, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 39,218 | $ 3,372 |
Investments | 5,165 | 3,649 |
Receivables, net | 15,136 | 27,488 |
Inventories | 1,202 | 1,325 |
Assets held for sale | 0 | 1,925 |
Prepaid and other current assets | 10,863 | 14,974 |
Total current assets | 71,584 | 52,733 |
Property, net of accumulated depreciation of $151,140 and $147,445, respectively | 97,077 | 97,626 |
Financing lease right-of-use assets, net of accumulated amortization of $8,920 and $8,468, respectively | 11,205 | 11,720 |
Operating lease right-of-use assets, net | 152,952 | 158,550 |
Goodwill | 36,884 | 36,832 |
Intangible assets, net | 53,270 | 53,956 |
Deferred financing costs, net | 1,575 | 1,727 |
Deferred income taxes, net | 28,999 | 14,718 |
Other noncurrent assets | 30,587 | 32,525 |
Total assets | 484,133 | 460,387 |
Current liabilities: | ||
Current finance lease liabilities | 1,637 | 1,674 |
Current operating lease liabilities | 16,403 | 16,344 |
Accounts payable | 12,009 | 20,256 |
Other current liabilities | 35,989 | 57,307 |
Total current liabilities | 66,038 | 95,581 |
Long-term liabilities: | ||
Long-term debt | 318,000 | 240,000 |
Noncurrent finance lease liabilities | 14,413 | 14,779 |
Noncurrent operating lease liabilities | 149,239 | 152,750 |
Liability for insurance claims, less current portion | 11,978 | 11,454 |
Other noncurrent liabilities | 124,957 | 83,887 |
Total long-term liabilities | 618,587 | 502,870 |
Total liabilities | 684,625 | 598,451 |
Shareholders' deficit | ||
Common stock $0.01 par value; 135,000 shares authorized; March 25, 2020: 109,677 shares issued and 55,667 shares outstanding; December 25, 2019: 109,415 shares issued and 57,095 shares outstanding | 1,097 | 1,094 |
Paid-in capital | 599,401 | 603,980 |
Deficit | (180,385) | (189,398) |
Accumulated other comprehensive loss, net of tax | (66,632) | (33,960) |
Treasury stock, at cost, 54,010 and 52,320 shares, respectively | (553,973) | (519,780) |
Total shareholders' deficit | (200,492) | (138,064) |
Total liabilities and shareholders' deficit | $ 484,133 | $ 460,387 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 25, 2020 | Dec. 25, 2019 |
Assets [Abstract] | ||
Accumulated depreciation | $ 151,140 | $ 147,445 |
Accumulated amortization | $ 8,920 | $ 8,468 |
Shareholders' deficit | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 135,000 | 135,000 |
Common stock, shares issued | 109,677 | 109,415 |
Common stock, shares outstanding | 55,667 | 57,095 |
Treasury stock, at cost, shares | 54,010 | 52,320 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Revenue: | ||
Total operating revenue | $ 96,695 | $ 151,411 |
Costs of company restaurant sales, excluding depreciation and amortization: | ||
Product costs | 10,130 | 23,905 |
Payroll and benefits | 17,106 | 39,832 |
Occupancy | 3,163 | 5,784 |
Other operating expenses | 5,719 | 14,592 |
Total costs of company restaurant sales | 36,118 | 84,113 |
Costs of franchise and license revenue, excluding depreciation and amortization | 29,170 | 27,058 |
General and administrative expenses | 7,742 | 18,811 |
Depreciation and amortization | 4,146 | 6,233 |
Operating (gains), losses and other charges, net | 1,473 | (8,935) |
Total operating costs and expenses, net | 78,649 | 127,280 |
Operating income | 18,046 | 24,131 |
Interest expense, net | 3,951 | 5,407 |
Other nonoperating expense (income), net | 2,763 | (1,423) |
Income before income taxes | 11,332 | 20,147 |
Provision for income taxes | 2,319 | 4,657 |
Net income | $ 9,013 | $ 15,490 |
Basic net income per share (in dollars per share) | $ 0.16 | $ 0.25 |
Diluted net income per share (in dollars per share) | $ 0.16 | $ 0.24 |
Basic weighted average shares outstanding (in shares) | 56,300 | 61,651 |
Diluted weighted average shares outstanding (in shares) | 58,106 | 63,683 |
Company restaurant sales | ||
Revenue: | ||
Total operating revenue | $ 42,291 | $ 98,545 |
Franchise and license revenue | ||
Revenue: | ||
Total operating revenue | $ 54,404 | $ 52,866 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 9,013 | $ 15,490 |
Other comprehensive income (loss), net of tax: | ||
Minimum pension liability adjustment, net of tax of $6 and $6, respectively | 17 | 16 |
Changes in the fair value of derivatives, net of tax of $(11,795) and $(4,622), respectively | (32,928) | (12,152) |
Reclassification of derivatives to interest expense, net of tax of $86 and $(7), respectively | 239 | (17) |
Other comprehensive loss | (32,672) | (12,153) |
Total comprehensive income (loss) | $ (23,659) | $ 3,337 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Tax effect of minimum pension liability adjustment | $ 6 | $ 6 |
Tax effect on changes in fair value of cash flow hedges | (11,795) | (4,622) |
Tax effect on amounts reclassified to earnings of cash flow hedges | $ 86 | $ (7) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Deficit - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Paid-in Capital | Deficit | Accumulated Other Comprehensive Loss, Net | Accelerated Share Repurchase 2018Treasury Stock |
Balance as of beginning of period (in shares) at Dec. 26, 2018 | 108,585 | ||||||
Balance as of beginning of period at Dec. 26, 2018 | $ (133,345) | $ 1,086 | $ (416,815) | $ 592,944 | $ (306,414) | $ (4,146) | |
Balance as of beginning of period, treasury stock (in shares) at Dec. 26, 2018 | 47,052 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 15,490 | 15,490 | |||||
Other comprehensive loss | (12,153) | (12,153) | |||||
Share-based compensation on equity classified awards, net of withholding tax | (985) | (985) | |||||
Purchase of treasury stock (in shares) | (507) | (389) | |||||
Purchase of treasury stock | (8,941) | $ (8,941) | $ (6,800) | ||||
Equity forward contract settlement | (6,763) | 6,763 | |||||
Issuance of common stock for share-based compensation (in shares) | 347 | ||||||
Issuance of common stock for share-based compensation | $ 3 | (3) | |||||
Exercise of common stock options (in shares) | 54 | ||||||
Exercise of common stock options | 107 | $ 1 | 106 | ||||
Balance as of end of period (in shares) at Mar. 27, 2019 | 108,986 | ||||||
Balance as of end of period at Mar. 27, 2019 | $ (140,221) | $ 1,090 | $ (432,519) | 598,825 | (291,318) | (16,299) | |
Balance as of end of period, treasury stock (in shares) at Mar. 27, 2019 | (47,948) | ||||||
Balance as of beginning of period (in shares) at Dec. 25, 2019 | 109,415 | 109,415 | |||||
Balance as of beginning of period at Dec. 25, 2019 | $ (138,064) | $ 1,094 | $ (519,780) | 603,980 | (189,398) | (33,960) | |
Balance as of beginning of period, treasury stock (in shares) at Dec. 25, 2019 | (52,320) | (52,320) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 9,013 | 9,013 | |||||
Other comprehensive loss | (32,672) | (32,672) | |||||
Share-based compensation on equity classified awards, net of withholding tax | $ (4,576) | (4,576) | |||||
Purchase of treasury stock (in shares) | (1,700) | (1,690) | |||||
Purchase of treasury stock | $ (34,193) | $ (34,193) | |||||
Issuance of common stock for share-based compensation (in shares) | 262 | ||||||
Issuance of common stock for share-based compensation | $ 3 | (3) | |||||
Balance as of end of period (in shares) at Mar. 25, 2020 | 109,677 | 109,677 | |||||
Balance as of end of period at Mar. 25, 2020 | $ (200,492) | $ 1,097 | $ (553,973) | $ 599,401 | $ (180,385) | $ (66,632) | |
Balance as of end of period, treasury stock (in shares) at Mar. 25, 2020 | (54,010) | (54,010) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 9,013 | $ 15,490 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation and amortization | 4,146 | 6,233 |
Operating (gains), losses and other charges, net | 1,473 | (8,935) |
Amortization of deferred financing costs | 152 | 152 |
Gains on investments | (116) | (39) |
Losses (gains) on early extinguishments of debt and leases | 28 | (74) |
Deferred income tax (benefit) expense | (2,577) | 1,476 |
Share-based compensation (benefit) expense | (1,537) | 2,253 |
Changes in assets and liabilities: | ||
Receivables | 15,815 | 7,428 |
Inventories | (4) | 121 |
Other current assets | 4,111 | 2,904 |
Other assets | 1,578 | (1,355) |
Operating lease assets/liabilities | (18) | (234) |
Accounts payable | (7,465) | (1,471) |
Accrued salaries and vacations | (12,783) | (6,439) |
Accrued taxes | (971) | (494) |
Other accrued liabilities | (6,337) | (5,499) |
Other noncurrent liabilities | (2,607) | 951 |
Net cash flows provided by operating activities | 1,901 | 12,468 |
Cash flows from investing activities: | ||
Capital expenditures | (2,818) | (3,109) |
Acquisition of restaurants and real estate | 0 | (4,706) |
(Costs) proceeds from sales of restaurants, real estate and other assets | (35) | 7,914 |
Investment purchases | (1,400) | (1,300) |
Collections on notes receivable | 505 | 425 |
Issuance of notes receivable | (408) | (571) |
Net cash flows used in investing activities | (4,156) | (1,347) |
Cash flows from financing activities: | ||
Revolver borrowings | 102,500 | 28,500 |
Revolver payments | (24,500) | (31,500) |
Long-term debt payments | (406) | (795) |
Proceeds from exercise of stock options | 0 | 107 |
Tax withholding on share-based payments | (3,036) | (3,178) |
Purchase of treasury stock | (36,008) | (8,089) |
Net bank overdrafts | (449) | 705 |
Net cash flows provided by (used in) financing activities | 38,101 | (14,250) |
Increase (decrease) in cash and cash equivalents | 35,846 | (3,129) |
Cash and cash equivalents at beginning of period | 3,372 | 5,026 |
Cash and cash equivalents at end of period | $ 39,218 | $ 1,897 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 3 Months Ended |
Mar. 25, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | Introduction and Basis of Presentation Denny’s Corporation, or Denny’s or the Company, is one of America’s largest full-service restaurant chains based on number of restaurants. At March 25, 2020 , the Denny's brand consisted of 1,695 restaurants, 1,628 of which were franchised/licensed restaurants and 67 of which were company operated. The global crisis resulting from the spread of coronavirus ("COVID-19") has had a substantial impact on our restaurant operations for the quarter ended March 25, 2020, which is expected to continue with the timing of recovery uncertain. During the quarter ended March 25, 2020, many of our company and franchised/licensed restaurants were temporarily closed and most of the restaurants that remained open had limited operations. This has continued into the second quarter of 2020. Our operating results substantially depend upon the sales volumes, restaurant profitability, and financial stability of our company and franchised/licensed restaurants. We cannot currently estimate the duration or future negative financial impact of the COVID-19 pandemic on our business; however, we expect that the COVID-19 pandemic will impact our results of operations for the quarter ended June 24, 2020 more significantly than during the quarter ended March 25, 2020. Ongoing material adverse effects of the COVID-19 pandemic for an extended period could negatively affect our business, results of operations, liquidity and financial condition and could impact our impairment assessments of accounts receivable, intangible assets, long-lived assets and goodwill. Our unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Therefore, certain information and notes normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. In our opinion, all adjustments considered necessary for a fair presentation of the interim periods presented have been included. Such adjustments are of a normal and recurring nature. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates are reasonable. These interim condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto for the fiscal year ended December 25, 2019 which are contained in our Annual Report on Form 10-K for the fiscal year ended December 25, 2019 . Certain reclassifications have been made to the prior year amounts to conform to the current year presentation. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year ending December 30, 2020 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 25, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Newly Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The new guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform financial statement users of credit loss estimates. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 (our fiscal 2020) with early adoption permitted for annual and interim periods beginning after December 15, 2018 (our fiscal 2019). The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," The new guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. ASU 2020-04 is effective for a limited time, from March 12, 2020 through December 31, 2022. The Company adopted this ASU on March 12, 2020. The adoption of ASU 2020-04 did not have a significant impact on the Company’s consolidated financial position or results of operations. Accounting Standards to be Adopted In December 2019, the FASB issued ASU 2019-12, " Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which modifies Topic 740 to simplify the accounting for income taxes. ASU 2019-12 is effective for financial statements issued for annual periods beginning after December 15, 2020, and for the interim periods therein. The adoption of ASU 2019-12 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption. |
Receivables
Receivables | 3 Months Ended |
Mar. 25, 2020 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following: March 25, 2020 December 25, 2019 (In thousands) Receivables, net: Trade accounts receivable from franchisees $ 8,669 $ 14,551 Financing receivables from franchisees 1,819 2,230 Receivables in connection with disposition of property 2,291 — Vendor receivables 1,198 3,260 Credit card receivables 85 6,806 Other 2,323 915 Allowance for doubtful accounts (1,249 ) (274 ) Total receivables, net $ 15,136 $ 27,488 Other noncurrent assets: Financing receivables from franchisees $ 248 $ 364 We recorded an additional $1.0 million of bad debt expense for the quarter ended March 25, 2020 based on expected losses on franchise-related receivables, primarily as a result of uncertainties related to the impacts of the COVID-19 pandemic. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 25, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets (In thousands) Balance, December 25, 2019 $ 36,832 Reclassification from assets held for sale 52 Balance, March 25, 2020 $ 36,884 Other intangible assets consisted of the following: March 25, 2020 December 25, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,087 $ — $ 44,087 $ — Liquor licenses 120 — 120 — Intangible assets with definite lives: Reacquired franchise rights 15,432 6,369 15,516 5,767 Intangible assets, net $ 59,639 $ 6,369 $ 59,723 $ 5,767 Due to the recent impact of the COVID-19 pandemic to the global economy, including but not limited to, the volatility of the Company's stock price as well as that of its competitors, the negative impact on sales at Company and franchised restaurants and the challenging environment for the restaurant industry generally, the Company determined that there were indicators of potential impairment of its goodwill and indefinite-lived intangible assets during the quarter ended March 25, 2020. As such, the Company performed an impairment assessment for both goodwill and indefinite-lived intangible assets and concluded that the fair value of these assets substantially exceeded their carrying values. However, we recorded less than $0.1 million of impairment related to reacquired franchise rights. See Note 9. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 25, 2020 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consisted of the following: March 25, 2020 December 25, 2019 (In thousands) Accrued payroll $ 7,047 $ 19,689 Accrued insurance, primarily current portion of liability for insurance claims 6,316 6,515 Accrued taxes 4,653 5,624 Accrued advertising 3,331 6,753 Gift cards 4,790 6,469 Other 9,852 12,257 Other current liabilities $ 35,989 $ 57,307 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 25, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Total Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands ) Fair value measurements as of March 25, 2020: Deferred compensation plan investments (1) $ 11,174 $ 11,174 $ — $ — Interest rate swaps (2) (89,068 ) — (89,068 ) — Investments (3) 5,165 — 5,165 — Total $ (72,729 ) $ 11,174 $ (83,903 ) $ — Fair value measurements as of December 25, 2019: Deferred compensation plan investments (1) $ 13,517 $ 13,517 $ — $ — Interest rate swaps (2) (44,670 ) — (44,670 ) — Investments (3) 3,649 — 3,649 — Total $ (27,504 ) $ 13,517 $ (41,021 ) $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 7 for details on the interest rate swaps. (3) The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments. Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below: Significant Unobservable Inputs (Level 3) Impairment Charges Fair value measurements as of March 25, 2020: Assets held and used (1) $ 2,718 $ 2,181 (1) As of March 25, 2020, impaired assets were written down to their fair value. To determine fair value, we used the income approach, which assumes that the future cash flows reflect current market expectations. These fair value measurements require significant judgment using Level 3 inputs, such as discounted cash flows from operations, which are not observable from the market, directly or indirectly. There is uncertainty in the projected future cash flows used in the Company's impairment analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods. Assets that are measured at fair value on a non-recurring basis include property, operating right-of-use assets, finance right-of-use assets and reacquired franchise rights. During the quarter ended March 25, 2020, we recognized impairment charges of $2.2 million related to certain of these assets. See Note 9. The carrying amounts of cash and cash equivalents, accounts receivables, accounts payable and accrued expenses are deemed to approximate fair value due to the immediate or short-term maturity of these instruments. The fair value of notes receivable approximates the carrying value after consideration of recorded allowances and related risk-based interest rates. The liabilities under our credit facility are carried at historical cost, which approximates fair value. The fair value of our senior secured revolver approximates its carrying value since it is a variable rate facility (Level 2). |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 25, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Denny's and certain of its subsidiaries have a credit facility consisting of a five-year $400 million senior secured revolver (with a $30 million letter of credit sublimit). The credit facility includes an accordion feature that would allow us to increase the size of the revolver to $450 million . As of March 25, 2020 , we had outstanding revolver loans of $318.0 million and outstanding letters of credit under the senior secured revolver of $19.3 million . These balances resulted in availability of $62.7 million under the credit facility. Prior to considering the impact of our interest rate swaps, described below, the weighted-average interest rate on outstanding revolver loans was 3.39% and 3.47% as of March 25, 2020 and December 25, 2019 , respectively. Taking into consideration our interest rate swaps, the weighted-average interest rate of outstanding revolver loans was 3.84% and 3.99% as of March 25, 2020 and December 25, 2019 , respectively. A commitment fee, which is based on our consolidated leverage ratio, is paid on the unused portion of the credit facility and was 0.30% as of March 25, 2020 . Borrowings under the credit facility bear a tiered interest rate, also based on our consolidated leverage ratio, which was set at LIBOR plus 2.00% as of March 25, 2020 . The maturity date for the credit facility is October 26, 2022 . The credit facility is available for working capital, capital expenditures and other general corporate purposes. The credit facility is guaranteed by Denny's and its material subsidiaries and is secured by assets of Denny's and its subsidiaries, including the stock of its subsidiaries (other than our insurance captive subsidiary). It includes negative covenants that are usual for facilities and transactions of this type. The credit facility also includes certain financial covenants with respect to a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. We were in compliance with all financial covenants as of March 25, 2020 . Amendment of Credit Facility As a result of projecting that we would not be in compliance with certain financial covenants beginning for the quarter ending June 24, 2020 due to the impact of the COVID-19 pandemic, subsequent to the quarter ended March 25, 2020, the Company and certain of its subsidiaries entered into a second amendment to the current credit agreement (the “Second Amendment”) dated as of May 13, 2020 (the “Effective Date”), which amends the current credit agreement dated as of October 26, 2017 (the “Existing Credit Agreement”; the Existing Credit Agreement as amended by the Second Amendment, the “Amended Credit Agreement”). Commencing with the Effective Date of the Second Amendment until the date of delivery of our financial statements for the fiscal quarter ending June 30, 2021, the interest rate of the Amended Credit Agreement shall be increased to LIBOR plus 3.00% . During this period, the Company will also have supplemental monthly reporting obligations to its lenders and will be prohibited from paying dividends and making stock repurchases and other general investments. Additionally, capital expenditures will be restricted to $10 million in the aggregate, beginning on the Effective Date through the fiscal quarter ending March 31, 2021. The Second Amendment temporarily waives certain financial covenants. The consolidated fixed charge coverage ratio is waived until the fiscal quarter ending March 31, 2021, at which point the covenant level will revert to a minimum of 1.50 x. The consolidated leverage ratio covenant is waived until the fiscal quarter ending March 31, 2021, at which point the covenant level will increase from 4.00 x to 4.50 x, stepping down to 4.25 x in the second quarter of 2021 and 4.00 x in the third fiscal quarter of 2021 and thereafter. In addition, the Second Amendment adds a monthly minimum liquidity covenant, defined as the sum of unrestricted cash and revolver availability, ranging from $60 million to $70 million , commencing on the Effective Date to May 26, 2021. Interest Rate Hedges We have receive-variable, pay-fixed interest rate swaps to hedge a portion of the forecasted cash flows of our floating rate debt. We designated the interest rate swaps as cash flow hedges of our exposure to variability in future cash flows attributable to variable interest payments due on forecasted notional amounts. A summary of our interest rate swaps as of March 25, 2020 is as follows: Trade Date Effective Date Maturity Date Notional Amount Fixed Rate (In thousands) March 20, 2015 March 29, 2018 March 31, 2025 $ 120,000 2.44 % October 1, 2015 March 29, 2018 March 31, 2026 50,000 2.46 % February 15, 2018 March 31, 2020 December 31, 2033 80,000 (1) 3.19 % (1) The notional amounts of the swaps entered into on February 15, 2018 increase annually beginning September 30, 2020 until they reach the maximum notional amount of $425.0 million on September 28, 2029. As of March 25, 2020 , the fair value of the interest rate swaps was a liability of $89.1 million , which is recorded as a component of other noncurrent liabilities in our Condensed Consolidated Balance Sheets. See Note 13 for the amounts recorded in accumulated other comprehensive loss related to the interest rate swaps. |
Revenues
Revenues | 3 Months Ended |
Mar. 25, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Our revenues are derived primarily from two sales channels, which we operate as one segment: company restaurants and franchised and licensed restaurants. The following table disaggregates our revenue by sales channels and types of goods or services: Quarter Ended March 25, 2020 March 27, 2019 (Dollars in thousands) Company restaurant sales $ 42,291 $ 98,545 Franchise and license revenue: Royalties 23,847 25,240 Advertising revenue 17,526 18,942 Initial and other fees 1,697 1,139 Occupancy revenue 11,334 7,545 Franchise and license revenue 54,404 52,866 Total operating revenue $ 96,695 $ 151,411 Franchise occupancy revenue consisted of the following: Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Operating lease revenue $ 8,622 $ 5,425 Variable lease revenue 2,712 2,120 Total occupancy revenue $ 11,334 $ 7,545 Balances related to contracts with customers consist of receivables, deferred franchise revenue and deferred gift card revenue. See Note 3 for details on our receivables. Deferred franchise revenue consists primarily of the unamortized portion of initial franchise fees that are currently being amortized into revenue and amounts related to development agreements and unopened restaurants that we will begin amortizing into revenue when the related restaurants are opened. Initial franchise fees are amortized over the term of the related franchise agreement, generally 10 - 20 years. Deferred franchise revenue represents our remaining performance obligations to our franchisees, excluding amounts of variable consideration related to sales-based royalties and advertising. The components of the change in deferred franchise revenue are as follows: (In thousands) Balance, December 25, 2019 $ 23,256 Fees received from franchisees 287 Revenue recognized (1) (795 ) Balance, March 25, 2020 22,748 Less current portion included in other current liabilities 2,179 Deferred franchise revenue included in other noncurrent liabilities $ 20,569 (1) Of this amount $0.8 million was included in the deferred franchise revenue balance as of December 25, 2019. Gift card liabilities consist of the unredeemed portion of gift cards sold in company restaurants and at third party locations. The balance of gift card liabilities represents our remaining performance obligations to our customers. The balance of gift card liabilities as of March 25, 2020 and December 25, 2019 was $4.8 million and $6.5 million , respectively. During the quarter ended March 25, 2020 , we recognized revenue of $0.2 million from gift card redemptions at company restaurants. |
Operating (Gains), Losses and O
Operating (Gains), Losses and Other Charges, Net | 3 Months Ended |
Mar. 25, 2020 | |
Other Income and Expenses [Abstract] | |
Operating (Gains), Losses and Other Charges, Net | Operating (Gains), Losses and Other Charges, Net Operating (gains), losses and other charges, net consisted of the following: Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Gains on sales of assets and other, net $ (1,070 ) $ (9,475 ) Restructuring charges and exit costs 362 540 Impairment charges 2,181 — Operating (gains), losses and other charges, net $ 1,473 $ (8,935 ) During the quarter ended March 25, 2020, gains on sales of assets and other, net were primarily related to the sales of two real estate parcels. During the quarter ended March 27, 2019, gains on sales of assets and other, net included a $7.5 million gain on the sale of one parcel of real estate and $2.2 million in gains on the sales of three company restaurants. As of December 25, 2019, we had recorded assets held for sale at their carrying amount of $1.9 million (comprised of property of $1.6 million , other assets of $0.2 million and goodwill of $0.1 million ) related to four company restaurants and two pieces of real estate. During the quarter ended March 25, 2020, the two pieces of real estate were sold and the four company restaurants were reclassified out of assets held for sale, as they are no longer expected to be sold in the next 12 months. Restructuring charges and exit costs consisted of the following: Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Exit costs $ 44 $ 122 Severance and other restructuring charges 318 418 Total restructuring charges and exit costs $ 362 $ 540 Exit cost liabilities were $0.2 million as of March 25, 2020 and December 25, 2019 . As a result of the adoption of Accounting Standards Codification Topic 842, Leases ("Topic 842") exit cost liabilities related to lease costs are now included as a component of operating lease liabilities in our Condensed Consolidated Balance Sheets. As of March 25, 2020 and December 25, 2019 , we had accrued severance and other restructuring charges of $0.6 million and $0.9 million , respectively. The balance as of March 25, 2020 is expected to be paid during the next 12 months. We review our property, right-of-use assets ("ROU assets") and definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of certain long-lived and ROU assets may not be recoverable. Based on our review, we recorded impairment charges of $2.2 million for the quarter ended March 25, 2020 resulting from the impacts of the COVID-19 pandemic. The $2.2 million included $1.1 million related to property, $1.0 million related to operating lease right-of-use assets and less than $0.1 million related to finance lease right-of-use assets and reacquired franchise rights, respectively. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 25, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Total share-based compensation cost included as a component of general and administrative expenses was as follows: Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Performance share awards $ (1,746 ) $ 1,998 Restricted stock units for board members 209 255 Total share-based compensation $ (1,537 ) $ 2,253 Performance Share Units During the quarter ended March 25, 2020 , we issued 0.3 million shares of common stock related to vested performance share units. In addition 0.1 million shares of common stock were withheld in lieu of taxes related to vested performance share units. As of March 25, 2020 , we had approximately $4.9 million of unrecognized compensation cost related to all unvested performance share awards outstanding, which have a weighted average remaining contractual term of 1.5 years . Restricted Stock Units for Board Members As of March 25, 2020 , we had approximately $0.1 million of unrecognized compensation cost related to all unvested restricted stock unit awards outstanding, which have a weighted average remaining contractual term of 0.2 years |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 25, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate was 20.5% for the quarter ended March 25, 2020 , compared to 23.1% |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 25, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The amounts used for the basic and diluted net income per share calculations are summarized below: Quarter Ended March 25, 2020 March 27, 2019 (In thousands, except for per share amounts) Net income $ 9,013 $ 15,490 Weighted average shares outstanding - basic 56,300 61,651 Effect of dilutive share-based compensation awards 1,806 2,032 Weighted average shares outstanding - diluted 58,106 63,683 Basic net income per share $ 0.16 $ 0.25 Diluted net income per share $ 0.16 $ 0.24 Anti-dilutive share-based compensation awards 1 630 |
Shareholders' Deficit
Shareholders' Deficit | 3 Months Ended |
Mar. 25, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Shareholders' Deficit | Shareholders' Deficit Share Repurchase Our credit facility permits the purchase of Denny’s stock and the payment of cash dividends subject to certain limitations. During the quarter ended March 25, 2020, we completed the $200 million share repurchase program that was approved by the Board of Directors in October 2017. In December 2019, our Board of Directors approved a share repurchase program authorizing us to repurchase up to $250 million of our common stock (in addition to prior authorizations). Under this program, we may, from time to time, purchase shares in the open market (including pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions, subject to market and business conditions. In November 2018, as part of our previously authorized share repurchase programs, we entered into a $25 million accelerated share repurchase (the "ASR") agreement with MUFG Securities EMEA plc (“MUFG”). We paid $25 million in cash and received approximately 1.1 million shares of our common stock (which represents the minimum shares to be delivered based on the cap price) and recorded $18.2 million of treasury stock related to these shares. The remaining balance of $6.8 million was recorded as additional paid-in capital in shareholders’ deficit as of December 26, 2018 as an equity forward contract. During the quarter ended March 27, 2019, we settled the ASR agreement with MUFG. As a result, we received final delivery of an additional 0.4 million shares of our common stock. The total number of shares repurchased was based on a combined discounted volume-weighted average price (“VWAP”) of $17.04 per share, which was determined based on the average of the daily VWAP of our common stock, less a fixed discount, over the term of the ASR agreement. As a result of settling the ASR agreement, we recorded $6.8 million of treasury stock related to the settlement of the equity forward contract related to the ASR agreement. During the quarter ended March 25, 2020 , we repurchased a total of 1.7 million shares of our common stock for approximately $34.2 million . At March 25, 2020, there was approximately $248.0 million remaining that can be used to repurchase our common stock under the current program. Repurchased shares are included as treasury stock in our Condensed Consolidated Balance Sheets and our Condensed Consolidated Statement of Shareholders' Deficit. The Company suspended share repurchases as of February 27, 2020, and terminated its previously approved Rule 10b5-1 Repurchase Plan effective March 16, 2020, in light of uncertain market conditions arising from the COVID-19 pandemic. Under our Amended Credit Agreement, we are prohibited until the date of delivery of our financial statements for the fiscal quarter ending June 30, 2021, from making any stock repurchases. Accumulated Other Comprehensive Loss The components of the change in accumulated other comprehensive loss were as follows: Defined Benefit Plans Derivatives Accumulated Other Comprehensive Loss (In thousands) Balance as of December 25, 2019 $ (781 ) $ (33,179 ) $ (33,960 ) Amortization of net loss (1) 23 — 23 Net change in fair value of derivatives — (44,723 ) (44,723 ) Reclassification of derivatives to interest expense, net (2) — 325 325 Income tax (expense) benefit related to items of other comprehensive loss (6 ) 11,709 11,703 Balance as of March 25, 2020 $ (764 ) $ (65,868 ) $ (66,632 ) (1) Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the quarter ended March 25, 2020 . (2) Amounts reclassified from accumulated other comprehensive loss into income represent payments either received from or made to the counterparty for the interest rate swaps. These amounts are included as a component of interest expense, net in our Condensed Consolidated Statements of Income. See Note 7 for additional details. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 25, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We have guarantees related to certain franchisee loans. Payments under these guarantees would result from the inability of a franchisee to fund required payments when due. Through March 25, 2020 , no events had occurred that caused us to make payments under these guarantees. There were $0.5 million and $0.6 million of loans outstanding under these programs as of March 25, 2020 and December 25, 2019 , respectively. As of March 25, 2020 , the maximum amount payable under the loan guarantees was $0.5 million . As a result of these guarantees, we have recorded liabilities of less than $0.1 million as of both March 25, 2020 and December 25, 2019 , which are included as a component of other noncurrent liabilities in our Condensed Consolidated Balance Sheets and other nonoperating expense in our Condensed Consolidated Statements of Income. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 25, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Income taxes paid, net $ 224 $ 367 Interest paid $ 3,596 $ 5,067 Noncash investing and financing activities: Issuance of common stock, pursuant to share-based compensation plans $ 5,313 $ 6,333 Noncash consideration received in connection with the sale of real estate $ — $ 3,000 Execution of finance leases $ 11 $ — Treasury stock payable $ — $ 925 Receivables in connection with disposition of property $ 2,291 $ — |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 25, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Lease Abatements and Deferrals Subsequent to the quarter ended March 25, 2020, as a result of the impact of the COVID-19 pandemic, the Company has secured rent relief in the form of abatements or deferrals for nearly 75% of the leases in which the Company is a lessee, including those instances in which the Company subleases to franchisees and will be extending the same relief as a pass through. In addition, the Company has provided rent deferrals in instances in which the Company owns the real estate and leases to franchisees. In April 2020, the FASB staff issued interpretive guidance that indicated it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under Topic 842, as though enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in Topic 842 to those contracts. This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. We have elected to apply this interpretive guidance to the rent relief we have secured, and have assumed that enforceable rights and obligations for those concessions exist in the lease contract. As such, starting on the effective dates indicated above, we began recognizing abatements or deferrals in rents received from landlords as reductions in variable lease payments. This election will continue while these abatement or deferrals are in effect. Coronavirus Aid, Relief and Economic Security Act On March 27, 2020, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was signed into law. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. The Company is in the process of assessing the impact of these new tax provisions and will recognize the impact during its second quarter of 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 25, 2020 | |
Accounting Policies [Abstract] | |
Newly Adopted Accounting Standards and Accounting Standards to be Adopted | Newly Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The new guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform financial statement users of credit loss estimates. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 (our fiscal 2020) with early adoption permitted for annual and interim periods beginning after December 15, 2018 (our fiscal 2019). The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," The new guidance provides optional guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. ASU 2020-04 is effective for a limited time, from March 12, 2020 through December 31, 2022. The Company adopted this ASU on March 12, 2020. The adoption of ASU 2020-04 did not have a significant impact on the Company’s consolidated financial position or results of operations. Accounting Standards to be Adopted In December 2019, the FASB issued ASU 2019-12, " Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which modifies Topic 740 to simplify the accounting for income taxes. ASU 2019-12 is effective for financial statements issued for annual periods beginning after December 15, 2020, and for the interim periods therein. The adoption of ASU 2019-12 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption. |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Receivables [Abstract] | |
Receivables, Net | Receivables consisted of the following: March 25, 2020 December 25, 2019 (In thousands) Receivables, net: Trade accounts receivable from franchisees $ 8,669 $ 14,551 Financing receivables from franchisees 1,819 2,230 Receivables in connection with disposition of property 2,291 — Vendor receivables 1,198 3,260 Credit card receivables 85 6,806 Other 2,323 915 Allowance for doubtful accounts (1,249 ) (274 ) Total receivables, net $ 15,136 $ 27,488 Other noncurrent assets: Financing receivables from franchisees $ 248 $ 364 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill and Other Intangible Assets (In thousands) Balance, December 25, 2019 $ 36,832 Reclassification from assets held for sale 52 Balance, March 25, 2020 $ 36,884 |
Indefinite-Lived Intangible Assets | Other intangible assets consisted of the following: March 25, 2020 December 25, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,087 $ — $ 44,087 $ — Liquor licenses 120 — 120 — Intangible assets with definite lives: Reacquired franchise rights 15,432 6,369 15,516 5,767 Intangible assets, net $ 59,639 $ 6,369 $ 59,723 $ 5,767 |
Finite-Lived Intangible Assets | Other intangible assets consisted of the following: March 25, 2020 December 25, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Intangible assets with indefinite lives: Trade names $ 44,087 $ — $ 44,087 $ — Liquor licenses 120 — 120 — Intangible assets with definite lives: Reacquired franchise rights 15,432 6,369 15,516 5,767 Intangible assets, net $ 59,639 $ 6,369 $ 59,723 $ 5,767 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Other Liabilities, Current [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following: March 25, 2020 December 25, 2019 (In thousands) Accrued payroll $ 7,047 $ 19,689 Accrued insurance, primarily current portion of liability for insurance claims 6,316 6,515 Accrued taxes 4,653 5,624 Accrued advertising 3,331 6,753 Gift cards 4,790 6,469 Other 9,852 12,257 Other current liabilities $ 35,989 $ 57,307 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis are summarized below: Total Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands ) Fair value measurements as of March 25, 2020: Deferred compensation plan investments (1) $ 11,174 $ 11,174 $ — $ — Interest rate swaps (2) (89,068 ) — (89,068 ) — Investments (3) 5,165 — 5,165 — Total $ (72,729 ) $ 11,174 $ (83,903 ) $ — Fair value measurements as of December 25, 2019: Deferred compensation plan investments (1) $ 13,517 $ 13,517 $ — $ — Interest rate swaps (2) (44,670 ) — (44,670 ) — Investments (3) 3,649 — 3,649 — Total $ (27,504 ) $ 13,517 $ (41,021 ) $ — (1) The fair values of our deferred compensation plan investments are based on the closing market prices of the elected investments. (2) The fair values of our interest rate swaps are based upon Level 2 inputs, which include valuation models as reported by our counterparties. The key inputs for the valuation models are quoted market prices, interest rates and forward yield curves. See Note 7 for details on the interest rate swaps. (3) The fair values of our investments are valued using a readily determinable net asset value per share based on the fair value of the underlying securities. There are no significant redemption restrictions associated with these investments. |
Fair Value Measurements, Nonrecurring | Those assets and liabilities measured at fair value on a nonrecurring basis are summarized below: Significant Unobservable Inputs (Level 3) Impairment Charges Fair value measurements as of March 25, 2020: Assets held and used (1) $ 2,718 $ 2,181 (1) |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Debt Disclosure [Abstract] | |
Interest Rate Swaps | A summary of our interest rate swaps as of March 25, 2020 is as follows: Trade Date Effective Date Maturity Date Notional Amount Fixed Rate (In thousands) March 20, 2015 March 29, 2018 March 31, 2025 $ 120,000 2.44 % October 1, 2015 March 29, 2018 March 31, 2026 50,000 2.46 % February 15, 2018 March 31, 2020 December 31, 2033 80,000 (1) 3.19 % (1) The notional amounts of the swaps entered into on February 15, 2018 increase annually beginning September 30, 2020 until they reach the maximum notional amount of $425.0 million on September 28, 2029. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by sales channels and types of goods or services: Quarter Ended March 25, 2020 March 27, 2019 (Dollars in thousands) Company restaurant sales $ 42,291 $ 98,545 Franchise and license revenue: Royalties 23,847 25,240 Advertising revenue 17,526 18,942 Initial and other fees 1,697 1,139 Occupancy revenue 11,334 7,545 Franchise and license revenue 54,404 52,866 Total operating revenue $ 96,695 $ 151,411 |
Components of the Change in Deferred Franchise Revenue | The components of the change in deferred franchise revenue are as follows: (In thousands) Balance, December 25, 2019 $ 23,256 Fees received from franchisees 287 Revenue recognized (1) (795 ) Balance, March 25, 2020 22,748 Less current portion included in other current liabilities 2,179 Deferred franchise revenue included in other noncurrent liabilities $ 20,569 (1) Of this amount $0.8 million was included in the deferred franchise revenue balance as of December 25, 2019. |
Components of Lease Income | Franchise occupancy revenue consisted of the following: Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Operating lease revenue $ 8,622 $ 5,425 Variable lease revenue 2,712 2,120 Total occupancy revenue $ 11,334 $ 7,545 |
Operating (Gains), Losses and_2
Operating (Gains), Losses and Other Charges, Net (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Other Income and Expenses [Abstract] | |
Operating Gains Losses and Other Charges, Net | Operating (gains), losses and other charges, net consisted of the following: Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Gains on sales of assets and other, net $ (1,070 ) $ (9,475 ) Restructuring charges and exit costs 362 540 Impairment charges 2,181 — Operating (gains), losses and other charges, net $ 1,473 $ (8,935 ) |
Restructuring Charges and Exit Costs | Restructuring charges and exit costs consisted of the following: Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Exit costs $ 44 $ 122 Severance and other restructuring charges 318 418 Total restructuring charges and exit costs $ 362 $ 540 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Total Share-based Compensation | Total share-based compensation cost included as a component of general and administrative expenses was as follows: Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Performance share awards $ (1,746 ) $ 1,998 Restricted stock units for board members 209 255 Total share-based compensation $ (1,537 ) $ 2,253 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | The amounts used for the basic and diluted net income per share calculations are summarized below: Quarter Ended March 25, 2020 March 27, 2019 (In thousands, except for per share amounts) Net income $ 9,013 $ 15,490 Weighted average shares outstanding - basic 56,300 61,651 Effect of dilutive share-based compensation awards 1,806 2,032 Weighted average shares outstanding - diluted 58,106 63,683 Basic net income per share $ 0.16 $ 0.25 Diluted net income per share $ 0.16 $ 0.24 Anti-dilutive share-based compensation awards 1 630 |
Shareholders' Deficit (Tables)
Shareholders' Deficit (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of the change in accumulated other comprehensive loss were as follows: Defined Benefit Plans Derivatives Accumulated Other Comprehensive Loss (In thousands) Balance as of December 25, 2019 $ (781 ) $ (33,179 ) $ (33,960 ) Amortization of net loss (1) 23 — 23 Net change in fair value of derivatives — (44,723 ) (44,723 ) Reclassification of derivatives to interest expense, net (2) — 325 325 Income tax (expense) benefit related to items of other comprehensive loss (6 ) 11,709 11,703 Balance as of March 25, 2020 $ (764 ) $ (65,868 ) $ (66,632 ) (1) Before-tax amount related to our defined benefit plans that was reclassified from accumulated other comprehensive loss and included as a component of pension expense within general and administrative expenses in our Condensed Consolidated Statements of Income during the quarter ended March 25, 2020 . (2) Amounts reclassified from accumulated other comprehensive loss into income represent payments either received from or made to the counterparty for the interest rate swaps. These amounts are included as a component of interest expense, net in our Condensed Consolidated Statements of Income. See Note 7 for additional details. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 25, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Quarter Ended March 25, 2020 March 27, 2019 (In thousands) Income taxes paid, net $ 224 $ 367 Interest paid $ 3,596 $ 5,067 Noncash investing and financing activities: Issuance of common stock, pursuant to share-based compensation plans $ 5,313 $ 6,333 Noncash consideration received in connection with the sale of real estate $ — $ 3,000 Execution of finance leases $ 11 $ — Treasury stock payable $ — $ 925 Receivables in connection with disposition of property $ 2,291 $ — |
Introduction and Basis of Pre_2
Introduction and Basis of Presentation (Details) | Mar. 25, 2020restaurant |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,695 |
Franchised/licensed restaurants | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 1,628 |
Company restaurants | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 67 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Dec. 25, 2019 | |
Receivables, net: | ||
Trade accounts receivable from franchisees | $ 8,669 | $ 14,551 |
Financing receivables from franchisees | 1,819 | 2,230 |
Receivables in connection with disposition of property | 2,291 | 0 |
Allowance for doubtful accounts | (1,249) | (274) |
Total receivables, net | 15,136 | 27,488 |
Other noncurrent assets: | ||
Financing receivables from franchisees | 248 | 364 |
Additional bad debt expense | 1,000 | |
Vendor receivables | ||
Receivables, net: | ||
Other receivables, gross, current | 1,198 | 3,260 |
Credit card receivables | ||
Receivables, net: | ||
Other receivables, gross, current | 85 | 6,806 |
Other | ||
Receivables, net: | ||
Other receivables, gross, current | $ 2,323 | $ 915 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 25, 2020 | Mar. 25, 2020 | Dec. 25, 2019 |
Goodwill [Roll Forward] | |||
Balance, December 25, 2019 | $ 36,832 | ||
Reclassification from assets held for sale | 52 | ||
Balance, March 25, 2020 | $ 36,884 | 36,884 | |
Intangible Assets | |||
Gross Carrying Amount - Trade names | 44,087 | 44,087 | $ 44,087 |
Gross Carrying Amount - Liquor licenses | 120 | 120 | 120 |
Gross Carrying Amount - Intangible assets with definite lives | 15,432 | 15,432 | 15,516 |
Accumulated Amortization | 6,369 | 6,369 | 5,767 |
Intangible assets, net | 59,639 | 59,639 | $ 59,723 |
Impairment of franchisee rights | $ 100 | $ 100 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 25, 2020 | Dec. 25, 2019 |
Other Liabilities, Current [Abstract] | ||
Accrued payroll | $ 7,047 | $ 19,689 |
Accrued insurance, primarily current portion of liability for insurance claims | 6,316 | 6,515 |
Accrued taxes | 4,653 | 5,624 |
Accrued advertising | 3,331 | 6,753 |
Gift cards | 4,790 | 6,469 |
Other | 9,852 | 12,257 |
Other current liabilities | $ 35,989 | $ 57,307 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 25, 2020 | Dec. 25, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | $ (89,100) | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 11,174 | $ 13,517 |
Interest rate swaps | (89,068) | (44,670) |
Investments | 5,165 | 3,649 |
Total | (72,729) | (27,504) |
Recurring | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 11,174 | 13,517 |
Interest rate swaps | 0 | 0 |
Investments | 0 | 0 |
Total | 11,174 | 13,517 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 0 | 0 |
Interest rate swaps | (89,068) | (44,670) |
Investments | 5,165 | 3,649 |
Total | (83,903) | (41,021) |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan investments | 0 | 0 |
Interest rate swaps | 0 | 0 |
Investments | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment Charges | $ 2,181 | $ 0 |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held and used | 2,718 | |
Impairment Charges | $ 2,181 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | May 13, 2020USD ($) | Mar. 25, 2020USD ($) | May 26, 2021USD ($) | Dec. 25, 2019 |
Line of Credit Facility [Line Items] | ||||
Interest rate swaps liability | $ 89,100,000 | |||
Senior Secured Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, term | 5 years | |||
Line of credit facility, current borrowing capacity | $ 400,000,000 | |||
Accordion feature that allows increase in size of facility | 450,000,000 | |||
Outstanding amount under credit facility | 318,000,000 | |||
Availability under the credit facility | $ 62,700,000 | |||
Weighted-average interest rate | 3.39% | 3.47% | ||
Commitment fee for unused portion of revolving credit facility (in hundredths) | 0.30% | |||
Senior Secured Revolver | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate debt (as a percent) | 2.00% | |||
Senior Secured Revolver | Interest Rate Swap | ||||
Line of Credit Facility [Line Items] | ||||
Weighted-average interest rate | 3.84% | 3.99% | ||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 30,000,000 | |||
Outstanding amount of letters of credit | $ 19,300,000 | |||
Subsequent Event | Senior Secured Revolver | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Capital expenditures restrictions | $ 10,000,000 | |||
Subsequent Event | Senior Secured Revolver | Letter of Credit | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate debt (as a percent) | 3.00% | |||
Before the Amendment | Subsequent Event | Senior Secured Revolver | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Covenant, leverage ratio | 4 | |||
Until Quarter Ending March 31, 2021 | Subsequent Event | Senior Secured Revolver | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Fixed charge coverage ratio, minimum | 1.50 | |||
Covenant, leverage ratio | 4.50 | |||
Second quarter of 2021 | Subsequent Event | Senior Secured Revolver | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Covenant, leverage ratio | 4.25 | |||
Third quarter 2021 and thereafter | Subsequent Event | Senior Secured Revolver | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Covenant, leverage ratio | 4 | |||
Minimum | Forecast | Subsequent Event | Senior Secured Revolver | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Liquidity Requirement | $ 60,000,000 | |||
Maximum | Forecast | Subsequent Event | Senior Secured Revolver | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Liquidity Requirement | $ 70,000,000 |
Long-Term Debt - Interest Rate
Long-Term Debt - Interest Rate Swaps (Details) | Mar. 25, 2020USD ($) |
Interest Rate Swap 2018-2025 | |
Derivative [Line Items] | |
Notional Amount | $ 120,000,000 |
Fixed Rate | 2.44% |
Interest Rate Swap 2018-2026 | |
Derivative [Line Items] | |
Notional Amount | $ 50,000,000 |
Fixed Rate | 2.46% |
Interest Rate Swap 2020-2033 | |
Derivative [Line Items] | |
Notional Amount | $ 80,000,000 |
Fixed Rate | 3.19% |
Interest Rate Swap 2020-2029 | Maximum | |
Derivative [Line Items] | |
Notional Amount | $ 425,000,000 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020USD ($)segmentsale_channel | Mar. 27, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of sales channels | sale_channel | 2 | |
Number of segments | segment | 1 | |
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | $ 96,695 | $ 151,411 |
Company restaurant sales | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | 42,291 | 98,545 |
Royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | 23,847 | 25,240 |
Advertising revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | 17,526 | 18,942 |
Initial and other fees | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | 1,697 | 1,139 |
Occupancy revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | 11,334 | 7,545 |
Franchise and license revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | $ 54,404 | $ 52,866 |
Revenues - Schedule of Franchis
Revenues - Schedule of Franchise Occupancy Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Operating lease revenue | $ 8,622 | $ 5,425 |
Variable lease revenue | 2,712 | 2,120 |
Total occupancy revenue | $ 11,334 | $ 7,545 |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) $ in Thousands | 3 Months Ended |
Mar. 25, 2020USD ($) | |
Movement in Deferred Revenue [Roll Forward] | |
Balance, December 25, 2019 | $ 23,256 |
Fees received from franchisees | 287 |
Revenue recognized | (795) |
Balance, March 25, 2020 | 22,748 |
Less current portion included in other current liabilities | 2,179 |
Deferred franchise revenue included in other noncurrent liabilities | 20,569 |
Deferred revenue recognized | $ 800 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Dec. 25, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Liability balance | $ 2,179 | |
Deferred revenue recognized | 800 | |
Gift Card Redemption | ||
Disaggregation of Revenue [Line Items] | ||
Liability balance | 4,800 | $ 6,500 |
Deferred revenue recognized | $ 200 | |
Minimum | Deferred franchise revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-26 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred franchise revenue expected to be recognized, period | 10 years | |
Maximum | Deferred franchise revenue | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-26 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred franchise revenue expected to be recognized, period | 20 years |
Operating (Gains), Losses and_3
Operating (Gains), Losses and Other Charges, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Other Income and Expenses [Abstract] | ||
Gains on sales of assets and other, net | $ (1,070) | $ (9,475) |
Restructuring charges and exit costs | 362 | 540 |
Impairment charges | 2,181 | 0 |
Operating (gains), losses and other charges, net | 1,473 | (8,935) |
Restructuring Charges [Abstract] | ||
Exit costs | 44 | 122 |
Severance and other restructuring charges | 318 | 418 |
Total restructuring charges and exit costs | $ 362 | $ 540 |
Operating (Gains), Losses and_4
Operating (Gains), Losses and Other Charges, Net Narrative (Details) $ in Thousands | Mar. 25, 2020USD ($)parcelreal_estaterestaurant | Mar. 25, 2020USD ($)parcelreal_estaterestaurant | Mar. 27, 2019USD ($)parcelrestaurant | Dec. 25, 2019USD ($)real_estaterestaurant |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gains on sales of assets and other, net | $ 1,070 | $ 9,475 | ||
Number of restaurants | restaurant | 1,695 | 1,695 | ||
Exit cost liabilities | $ 200 | $ 200 | $ 200 | |
Severance and other restructuring charges | 600 | 600 | $ 900 | |
Impairment charges | 2,181 | 0 | ||
Property impairment | 1,100 | |||
Finance lease right-of-use asset impairment (less than) | 100 | |||
Operating lease right-of-use asset impairment | 1,000 | |||
Impairment of franchisee rights | $ 100 | $ 100 | ||
Company restaurant sales | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gains on sales of assets and other, net | $ 2,200 | |||
Number of restaurants | restaurant | 3 | |||
Real Estate | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gains on sales of assets and other, net | $ 7,500 | |||
Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of real estate properties | real_estate | 2 | |||
Number of restaurants | restaurant | 4 | 4 | 4 | |
Carrying amount | $ 1,900 | |||
Property | 1,600 | |||
Other assets | 200 | |||
Goodwill | $ 100 | |||
Disposed of by sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of real estate properties | real_estate | 2 | 2 | ||
Real Estate | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of real estate properties | parcel | 2 | 2 | 1 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Total share-based compensation [Abstract] | ||
Total share-based compensation | $ (1,537) | $ 2,253 |
Performance share awards | ||
Total share-based compensation [Abstract] | ||
Total share-based compensation | $ (1,746) | 1,998 |
Restricted Stock Units [Abstract] | ||
Common stock, shares issued (in shares) | 0.3 | |
Shares paid for tax withholding (in shares) | 0.1 | |
Unrecognized compensation cost related to unvested share awards outstanding | $ 4,900 | |
Unrecognized compensation cost, expected weighted average period | 1 year 6 months | |
Restricted stock units for board members | ||
Total share-based compensation [Abstract] | ||
Total share-based compensation | $ 209 | $ 255 |
Restricted Stock Units [Abstract] | ||
Unrecognized compensation cost related to unvested share awards outstanding | $ 100 | |
Unrecognized compensation cost, expected weighted average period | 2 months 12 days |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, percent | 20.50% | 23.10% |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 9,013 | $ 15,490 |
Weighted average shares outstanding - basic (in shares) | 56,300 | 61,651 |
Effect of dilutive share-based compensation awards (in shares) | 1,806 | 2,032 |
Weighted average shares outstanding - diluted (in shares) | 58,106 | 63,683 |
Basic net income per share (in dollars per share) | $ 0.16 | $ 0.25 |
Diluted net income per share (in dollars per share) | $ 0.16 | $ 0.24 |
Antidilutive share-based compensation awards (in shares) | 1 | 630 |
Shareholders' Deficit - Share R
Shareholders' Deficit - Share Repurchase (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2018 | Mar. 25, 2020 | Mar. 27, 2019 | Dec. 26, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Payments for repurchase of common stock | $ 36,008,000 | $ 8,089,000 | ||
Purchase of treasury stock (in shares) | 1,700 | |||
Purchase of treasury stock | $ 34,193,000 | $ 8,941,000 | ||
Treasury Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchase of treasury stock (in shares) | 1,690 | 507 | ||
Purchase of treasury stock | $ 34,193,000 | $ 8,941,000 | ||
Share Repurchase Program 2017 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase, authorized amount | 200,000,000 | |||
Share Repurchase Program 2019 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase, authorized amount | 250,000,000 | |||
Remaining shares to be repurchased | $ 248,000,000 | |||
Accelerated Share Repurchase 2018 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase, authorized amount | $ 25,000,000 | |||
Payments for repurchase of common stock | $ 25,000,000 | |||
Purchase of treasury stock (in shares) | 1,100 | |||
Purchase of treasury stock | $ 18,200,000 | |||
Remaining shares to be repurchased | $ 6,800,000 | |||
Volume-weighted average price (in dollars per share) | $ 17.04 | |||
Accelerated Share Repurchase 2018 | Treasury Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Purchase of treasury stock (in shares) | 389 | |||
Purchase of treasury stock | $ 6,800,000 |
Shareholders' Deficit - Compone
Shareholders' Deficit - Components of Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended |
Mar. 25, 2020USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of beginning of period | $ (138,064) |
Net change in fair value of derivatives | (44,723) |
Income tax (expense) benefit related to items of other comprehensive loss | 11,703 |
Balance as of end of period | (200,492) |
Defined Benefit Plans | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of beginning of period | (781) |
Reclassification | 23 |
Income tax (expense) benefit related to items of other comprehensive loss | (6) |
Balance as of end of period | (764) |
Derivatives | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of beginning of period | (33,179) |
Derivatives | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Reclassification | 325 |
Net change in fair value of derivatives | (44,723) |
Income tax (expense) benefit related to items of other comprehensive loss | 11,709 |
Balance as of end of period | (65,868) |
Accumulated Other Comprehensive Loss | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of beginning of period | (33,960) |
Balance as of end of period | $ (66,632) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 25, 2020 | Dec. 25, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Loan amounts outstanding under the loan pools | $ 0.5 | $ 0.6 |
Maximum payments guaranteed | 0.5 | |
Guarantee liabilities included as a component of other noncurrent liabilities | $ 0.1 | $ 0.1 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 25, 2020 | Mar. 27, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid, net | $ 224 | $ 367 |
Interest paid | 3,596 | 5,067 |
Noncash investing and financing activities: | ||
Issuance of common stock, pursuant to share-based compensation plans | 5,313 | 6,333 |
Noncash consideration received in connection with the sale of real estate | 0 | 3,000 |
Execution of finance leases | 11 | 0 |
Treasury stock payable | 0 | 925 |
Receivables in connection with disposition of property | $ 2,291 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended |
May 14, 2020 | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Percent of leases deferred | 75.00% |
Uncategorized Items - q1202010-
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (394,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (394,000) |