Acquisition of Franchised Restaurants

12 Months Ended

Dec. 25, 2016

Business Combinations [Abstract]

Acquisition of Franchised Restaurants

Acquisitions of Businesses

During 2016, we acquired 1 existing Buffalo Wild Wings restaurant. During 2015, we acquired 54 Buffalo Wild Wings franchised restaurants through 5 acquisitions. We also acquired 1 R Taco franchised restaurant and 4 Buffalo Wild Wings restaurants under construction through these acquisitions.The total purchase price in 2016 and 2015 was $3,862 and $205,193, respectively, and was primarily paid in cash funded by cash from operations, the sale of marketable securities and proceeds from our revolving credit facility. The acquisitions were accounted for as business combinations. The assets acquired and liabilities assumed were recorded based on their fair values at the time of the acquisitions as detailed below:

	Fiscal Years Ended
	December 25, 2016			December 27, 2015
Inventory, prepaids, and other assets	$	38		$	4,821
Property and equipment	224			58,123
Lease and other liabilities	(14		)	2,274
Reacquired franchise rights	1,890			99,040
Goodwill	1,724			76,062
Capital lease obligations	—			(34,424		)
Liabilities	—			(703		)
Total purchase price	$	3,862		$	205,193

The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill.The results of operations of these locations are included in our consolidated statements of earnings as of the date of acquisition. The acquisitions had an immaterial impact on net earnings for the fiscal years ended December 25, 2016 and December 27, 2015. Pro forma results are not presented, as the acquisitions were not considered material to our consolidated results of operations.

The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date is based on significant inputs not observed in the market and thus represents a Level 3 fair value measurement. Fair value measurements for reacquired franchise rights were determined using the income approach. Fair value measurements for property and equipment were determined using the cost approach. Fair value measurements for capital lease obligations were determined using the market approach.