Segment Reporting

8 Months Ended

Sep. 08, 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 and 36 weeks ended September 8, 2015 and September 9, 2014 and as of September 8, 2015 and September 9, 2014, respectively (in thousands):

	12 Weeks Ended September 8, 2015
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	33,059	$	15,650	$	19,920	$	—	$	68,629
Restaurant-level EBITDA		8,041		1,769		2,528		—		12,338
Capital expenditures		4,923		1,768		12,501		38		19,230
Property and equipment		103,432		47,081		93,705		2,381		246,599
	12 Weeks Ended September 9, 2014
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	30,803	$	16,067	$	15,079	$	—	$	61,949
Restaurant-level EBITDA		8,126		1,799		1,875		—		11,800
Capital expenditures		10,379		512		5,776		43		16,710
Property and equipment		90,592		45,342		64,810		2,084		202,828
	36 Weeks Ended September 8, 2015
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	106,255	$	52,966	$	58,286	$	—	$	217,507
Restaurant-level EBITDA		29,492		8,032		8,430		—		45,954
Capital expenditures		10,570		3,146		24,978		156		38,850
Property and equipment		103,432		47,081		93,705		2,381		246,599
	36 Weeks Ended September 9, 2014
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
Revenues	$	97,233	$	53,523	$	45,201	$	—	$	195,957
Restaurant-level EBITDA		27,236		7,918		7,094		—		42,248
Capital expenditures		17,154		2,893		13,426		314		33,787
Property and equipment		90,592		45,342		64,810		2,084		202,828

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, non-cash impairment charges 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				36 Weeks Ended
	September 8, 2015		September 9, 2014		September 8, 2015		September 9, 2014
Restaurant-level EBITDA	$	12,338	$	11,800	$	45,954	$	42,248
Less:
Pre-opening costs		2,044		1,577		3,790		2,867
General and administrative costs		5,225		4,673		16,611		14,202
Secondary public offering costs		—		—		—		5
Non-cash impairment charges		3,338		—		3,338		—
Depreciation and amortization		3,811		3,098		11,001		9,053
Operating income (loss)	$	(2,080)	$	2,452	$	11,214	$	16,121