Segment Reporting

12 Months Ended

Dec. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

(13) Segment Reporting

The Company operates the Del Frisco’s, Sullivan’s, and Del Frisco’s Grille brands as operating segments. The concepts operate solely in the U.S. within the full-service dining industry, providing similar products to similar customers. Sales to 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 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 check average, the Del Frisco’s, Sullivan’s, and Del Frisco’s 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 table presents information about reportable segments for fiscal years 2012, 2013, and 2014 (in thousands):

	Fiscal Year Ended December 30, 2014
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	151,142	$	80,911	$	69,752	$	—	$	301,805
Restaurant-level EBITDA		42,946		13,449		10,556		—		66,951
Capital expenditures		19,839		3,452		24,219		492		48,002
Property and equipment		93,267		45,848		72,066		2,261		213,442
	Fiscal Year Ended December 31, 2013
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	144,634	$	83,039	$	44,133	$	—	$	271,806
Restaurant-level EBITDA		41,451		12,881		7,777		—		62,109
Capital expenditures		3,234		2,847		25,580		412		32,073
Property and equipment		73,518		42,658		51,402		1,809		169,387
	Fiscal Year Ended December 25, 2012
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	124,692	$	83,767	$	23,976	$	—	$	232,435
Restaurant-level EBITDA		35,993		15,721		4,803		—		56,517
Capital expenditures		13,922		3,521		15,857		335		33,635
Property and equipment		70,342		42,217		25,828		1,417		139,804

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 generally accepted accounting principles. Restaurant-level EBITDA is defined as operating income before pre-opening costs, general and administrative expenses, management and accounting fees paid to related party, asset advisory agreement termination fees, non-cash impairment charges, public offering transaction bonuses, secondary public offering costs 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 expenses and management and accounting fees paid to related party 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. Depreciation and amortization is excluded because it is not an ongoing controllable cash expense and it is 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 for a reconciliation of restaurant-level EBITDA to operating income.

	Fiscal Year Ended
	December 25, 2012		December 31, 2013		December 30, 2014
Restaurant-level EBITDA	$	56,517	$	62,109	$	66,951
Less:
Pre-opening costs		4,058		3,758		4,735
General and administrative		13,449		17,421		20,537
Management and accounting fees
paid to related party		1,252		—		—
Asset advisory agreement termination fee		3,000		—		—
Public offering costs		—		1,024		5
Public offering transaction bonuses		1,462		8,355		—
Non-cash impairment charges		—		2,360		3,536
Depreciation and amortization		8,675		11,300		13,598
Operating income	$	24,621	$	17,891	$	24,540