Segment Reporting

3 Months Ended

Mar. 24, 2015

Segment Reporting [Abstract]

Segment Reporting

7. 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 weeks ended March 24, 2015 and March 25, 2014 and as of March 24, 2015 and March 25, 2014, respectively (in thousands):

	12 Weeks Ended March 24, 2015
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	36,022	$	19,837	$	19,243	$	—	$	75,102
Restaurant-level EBITDA		10,324		3,875		2,923		—		17,122
Capital expenditures		1,455		393		3,303		89		5,240
Property and equipment		94,718		46,231		75,368		2,348		218,665
	12 Weeks Ended March 25, 2014
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	32,568	$	19,020	$	15,034	$	—	$	66,622
Restaurant-level EBITDA		9,208		3,162		2,409		—		14,779
Capital expenditures		1,012		1,455		1,956		103		4,526
Property and equipment		74,492		44,086		53,358		1,895		173,831

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 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 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
	March 24, 2015		March 25, 2014
Restaurant-level EBITDA	$	17,122	$	14,779
Less:
Pre-opening costs		267		384
General and administrative costs		5,478		4,686
Secondary public offering costs		—		5
Depreciation and amortization		3,577		2,955
Operating income	$	7,800	$	6,749