Acquisitions and Divestitures

12 Months Ended

Dec. 29, 2015

Acquisitions

Acquisitions and Divestitures

(3) Acquisitions

On November 26, 2014, we acquired the remaining ownership interests in a franchise restaurant owned in part by us and certain officers or stockholders of the Company.  Prior to the acquisition, we owned 5% of the franchise restaurant which we accounted for using the equity method.  While we exercised significant control over the acquired restaurant prior to our acquisition of the remaining ownership interests, we did not consolidate their financial position, results of operations and/or cash flows nor recognize the noncontrolling interests as it was not material to our consolidated financial position, results of operations and /or cash flows.  This acquisition is consistent with our long-term strategy to increase net income and earnings per share.

Pursuant to the purchase agreement, we issued 40,699 shares of common stock valued at $1.3 million in exchange for the remaining ownership interests.  The acquisition was accounted for as an equity transaction as defined in ASC 810, Consolidation – Overall ("ASC 810").  The difference between the $1.3 million in consideration paid and the book value of the noncontrolling interest in the unconsolidated affiliate of $0.7 million was recorded as a debit to equity. In conjunction with this acquisition, we received $0.2 million of cash and paid off outstanding debt related to the franchise restaurant of $1.3 million.