Segment Reporting

12 Months Ended

Dec. 27, 2016

Segment Reporting [Abstract]

Segment Reporting

(12) Segment Reporting

We operate 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 we do 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 2016, 2015,and 2014:

	Fiscal Year Ended December 27, 2016
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
	(in thousands)
Revenues	$	166,885	$	77,797	$	106,999	$	—	$	351,681
Restaurant-level EBITDA	$	46,877	$	12,182	$	15,881	$	—	$	74,940
Capital expenditures	$	17,284	$	2,489	$	17,080	$	97	$	36,950
Property and equipment	$	115,889	$	49,416	$	116,451	$	2,426	$	284,182
	Fiscal Year Ended December 29, 2015
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
	(in thousands)
Revenues	$	161,809	$	78,983	$	90,820	$	—	$	331,612
Restaurant-level EBITDA	$	45,837	$	13,070	$	12,660	$	—	$	71,567
Capital expenditures	$	11,646	$	3,644	$	32,717	$	102	$	48,109
Property and equipment	$	104,508	$	47,578	$	99,371	$	2,493	$	253,950
	Fiscal Year Ended December 30, 2014
	Del Frisco's		Sullivan's		Grille		Corporate		Consolidated
	(in thousands)
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

In addition to using consolidated results in evaluating our performance and allocating our resources, our chief operating decision maker uses restaurant-level EBITDA, which is not a measure defined by GAAP. Restaurant-level EBITDA is defined as net income before interest expense, income taxes, other expense, net, pre-opening costs, general and administrative expenses, lease termination and closing costs,  secondary public offering costs, 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 expenses are excluded as they are generally not specifically identifiable to individual operating segments as these costs relate to supporting all of our restaurant operations and the extension of our concepts into new markets. Lease termination and closing costs, impairment charges and depreciation and amortization are excluded because theyare 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 our chief operating decision maker in allocating resources. See the table below for a reconciliation of net income to restaurant-level EBITDA.

	Fiscal Year Ended
	December 27, 2016		December 29, 2015		December 30, 2014
	(in thousands)
Net income	$	17,766	$	15,998	$	16,597
Income tax expense		6,808		5,507		7,723
Net income before income taxes		24,574		21,505		24,320
Interest expense, net of capitalized interest		70		77		113
Other		432		236		107
Operating income		25,076		21,818		24,540
Pre-opening costs		3,446		5,228		4,735
General and administrative costs		25,924		23,111		20,537
Lease termination and closing costs		1,031		1,386		—
Secondary public offering costs		—		—		5
Impairment charges		598		3,248		3,536
Depreciation and amortization		18,865		16,776		13,598
Restaurant-level EBITDA	$	74,940	$	71,567	$	66,951