QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

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 26, 2018. 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)



	2018								2017
(Dollar amounts in thousands, except share data)	Dec.			Sept.	June		Mar		Dec.				Sept.			June	Mar
Selected Financial Data
Total revenue ($) (5)	106,261			112,178	111,633		105,756		95,202				101,155			105,573	99,771
(Loss) income from operations ($)	(30,990	)	(6)	9,492	7,589		4,448		(9,665	)			(5,612	)		12,740	9,361
Provision (benefit) for income taxes ($)	(8,410	)	(6)	2,388	865		1,949		(4,757	)	(3	)	(2,457	)		4,244	3,467
Net (loss) income ($)	(23,410	)		6,835	5,052		2,529		(38	)			(4,039	)		7,819	4,877
Per Share Data (2):
Net (loss) income per share:
Basic	(0.60	)		0.18	0.13		0.07		0.00				(0.11	)		0.20	0.13
Diluted	(0.60	)		0.17	0.13		0.06		0.00				(0.11	)		0.20	0.12
Weighted average shares used in computing net income per share:
Basic	38,751,522			38,602,658	38,482,074		38,465,208		38,465,208				38,462,100			38,449,240	38,437,020
Diluted	38,751,522		(4)	39,205,090	39,043,434		38,987,351		38,465,208		(4)		38,462,100		(4)	39,123,961	39,079,007
Selected Operating Data
Number of restaurants (at period end)
Company-operated	213			212	211		212		212				208			208	204
Franchised	271			271	269		268		265				265			264	263
System-wide	484			483	480		480		477				473			472	467
Average unit volume (AUV) (company-operated) (1)	1,785			1,891	1,890		1,791		1,787				1,922			1,995	1,913
Comparable restaurant sales growth (%)
Company-operated	3.7			2.0	(1.6	)	(2.0	)	0.9				0.9			2.4	(0.4	)
Franchised	5.1			3.0	(0.3	)	(0.4	)	1.9				2.4			3.2	(0.2	)
System-wide	4.4			2.6	(0.9	)	(1.1	)	1.4				1.7			2.9	(0.3	)


(1)	AUVs consist of average annualized sales of all company-operated 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 2017 related to the 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 ASC Topic 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 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% is 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.


(5)	For fiscal 2017, revenue is recognized under Topic 605. Beginning in fiscal 2018, the Company adopted Topic 606, with a date of initial application of December 28, 2017. As a result, the Company recognized revenue under Topic 606 in fiscal 2018.


(6)	Loss from operations and net loss includes a $36.3 million legal settlement in the period.