Segment Reporting

6 Months Ended

Jun. 17, 2014

Segment Reporting [Abstract]

Segment Reporting

9. SEGMENT REPORTING

The Company operates the Del Frisco’s, Sullivan’s, and Grille brands as operating segments. The restaurant concepts operate solely in the U.S. within the full-service dining industry, providing similar products to similar customers. Sales from external customers are derived principally from food and beverage sales, and the Company does not rely on any major customers as a source of sales. The restaurant concepts also possess similar economic characteristics, resulting in similar long-term expected financial performance characteristics. However, as Del Frisco’s restaurants typically have higher revenues, driven by their larger physical presence and higher average check, the Del Frisco’s, Sullivan’s, and Grille operating segments have varying operating income and restaurant-level EBITDA margins due to the leveraging of higher revenues on certain fixed operating costs such as management labor, rent, utilities, and building maintenance.

The following tables present information about reportable segments for the 12 and 24 weeks ended June 17, 2014 and June 11, 2013 and as of June 17, 2014 and June 11, 2013, respectively (in thousands):

	12 Weeks Ended June 17, 2014
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	33,862	$	18,435	$	15,089	$	—	$	67,386
Restaurant-level EBITDA		9,903		2,956		2,812		—		15,671
Capital expenditures		5,763		926		5,694		168		12,551
Property and equipment		80,253		44,931		59,048		2,040		186,272
	12 Weeks Ended June 11, 2013
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	32,615	$	18,186	$	9,558	$	—	$	60,359
Restaurant-level EBITDA		9,577		2,574		1,839		—		13,990
Capital expenditures		870		391		3,728		17		5,006
Property and equipment		71,762		43,168		33,639		1,445		150,014
	24 Weeks Ended June 17, 2014
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	66,430	$	37,456	$	30,122	$	—	$	134,008
Restaurant-level EBITDA		19,111		6,118		5,220		—		30,449
Capital expenditures		6,775		2,381		7,650		271		17,077
Property and equipment		80,253		44,931		59,048		2,040		186,272
	24 Weeks Ended June 11, 2013
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	64,900	$	38,084	$	17,178	$	—	$	120,162
Restaurant-level EBITDA		18,334		6,213		3,372		—		27,919
Capital expenditures		1,420		951		7,812		47		10,230
Property and equipment		71,762		43,168		33,639		1,445		150,014

In addition to using consolidated results in evaluating the Company’s performance and allocating its resources, the Company’s chief operating decision maker uses restaurant-level EBITDA, which is not a measure defined by GAAP. The Company defines restaurant-level EBITDA as operating income before pre-opening costs, general and administrative costs, secondary public offering costs, public offering transaction bonuses, and depreciation and amortization. Pre-opening costs are excluded because they vary in timing and magnitude and are not related to the health of ongoing operations. General and administrative costs are only included in the Company’s consolidated financial results as they are generally not specifically identifiable to individual operating segments as these costs relate to supporting all of the restaurant operations of the Company and the extension of the Company’s concepts into new markets. Public offering costs, transaction bonuses, and depreciation and amortization are excluded because they are not ongoing controllable cash expenses and they are not related to the health of ongoing operations. Property and equipment is the only balance sheet measure used by the Company’s chief operating decision maker in allocating resources. See table below (in thousands) for a reconciliation of restaurant-level EBITDA to operating income from continuing operations.

	12 Weeks Ended				24 Weeks Ended
	June 17, 2014		June 11, 2013		June 17, 2014		June 11, 2013
Restaurant-level EBITDA	$	15,671	$	13,990	$	30,449	$	27,919
Less:
Pre-opening costs		906		328		1,290		919
General and administrative		4,844		4,163		9,530		7,938
Secondary public offering costs		—		—		5		412
Public offering transaction bonuses		—		—		—		1,805
Depreciation and amortization		3,001		2,564		5,956		5,006
Operating income	$	6,920	$	6,935	$	13,668	$	11,839