The following table sets forth a summary of our unaudited quarterly operating results for each of the last eight quarters in the period ended December 27, 2017. We have derived this data from our unaudited consolidated interim financial statements that, in our opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with our financial statements and notes thereto included elsewhere in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period.

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)



	2017											2016
(Dollar amounts in thousands, except share data)	Dec.				Sept.				June	Mar		Dec.		Sept.	July	Apr
Selected Financial Data
Total revenue ($)	95,202				101,155				105,573	99,771		92,479		95,816	97,474	94,354
(Loss) income from Operations ($)	(9,665	)			(5,612	)			12,740	9,361		1,926		9,008	13,401	10,294
(Benefit) provision for income taxes	(4,757	)	(3	)	(2,457	)			4,244	3,467		853		2,830	5,339	3,761
Net (loss) income ($)	(38	)			(4,039	)			7,819	4,877		418		5,211	7,267	5,443
Per Share Data (2) :
Net (loss) income per share
Basic	—				(0.11	)			0.20	0.13		0.01		0.14	0.19	0.14
Diluted	—				(0.11	)			0.20	0.12		0.01		0.13	0.19	0.14
Weighted average shares used in computing net income per share
Basic	38,465,208				38,462,100				38,449,240	38,437,020		38,437,020		38,415,189	38,294,575	38,284,435
Diluted	38,465,208		(4)		38,462,100		(4	)	39,123,961	39,079,007		39,108,967		39,083,577	38,962,802	39,001,078
Selected Operating Data
Number of restaurants (at period end)
Company-operated	212				208				208	204		201		193	188	188
Franchised	265				265				264	263		259		253	251	248
System-wide	477				473				472	467		460		446	439	436
Average unit volume (AUV) (company-operated) (1)	1,787				1,922				1,995	1,913		1,790		1,929	1,970	1,936
Comparable restaurant sales growth (%)
Company-operated	0.9				0.9				2.4	(0.4	)	(0.6	)	1.4	2.0	(0.6	)
Franchised	1.9				2.4				3.2	(0.2	)	(1.9	)	1.8	2.7	1.8
System-wide	1.4				1.7				2.9	(0.3	)	(1.3	)	1.6	2.4	0.7
Restaurant contribution margin (%)	18.4				18.3				21.8	20.3		18.5		20.9	22.0	20.7


(1)	AUVs consist of average annualized sales of all company-owned restaurants over the fiscal quarter.


(2)	Due to the use of weighted average shares outstanding for each quarter of computing earnings per share, the sum of the quarterly per share amounts may not equal the per share amount for the year.


(3)	The Company recorded a benefit for income taxes of $4.8 million in the fourth quarter of 2018 related to the newly enacted tax reform. The Tax Act had the following effects on our income tax expense for the year ended December 27, 2017, all of which impacted the fourth quarter:

•

Under Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 740, Income Taxes (“ASC 740”), we are required to revalue any deferred tax assets or liabilities in the period of enactment of change in tax rates. The Tax Act lowers the corporate income tax rate from 35% to 21%. We have estimated the impact of the revaluation of our deferred tax assets and liabilities, which resulted in a decrease to our net deferred income tax liability by $1.4 million and is reflected as a decrease in our income tax expense in our results for fiscal 2017.


•	The reduced corporate tax rate, also resulted in a Tax Receivable Agreement “TRA” benefit to the provision for income tax expense for fiscal 2017 in the amount of $2.0 million.


•	The Tax Act is generally effective for tax years beginning after December 31, 2017. As such, the reduction in the corporate income tax rate from 35% to 21% will be effective for the fiscal year ended December 26, 2018.


(4)	Due to a loss for the period, zero incremental shares are included because the effect would be antidilutive.