FISCAL 2011 BUSINESS AND LICENSE ACQUISITIONS (Tables)

6 Months Ended

Nov. 29, 2011

FISCAL 2011 BUSINESS AND LICENSE ACQUISITIONS [Abstract]

Allocation of purchase prices of acquisitions

The purchase prices of acquisitions during fiscal 2011 have preliminarily been allocated based on initial fair value estimates as follows (in thousands):

Property and equipment	$	137,075
Goodwill		15,571
Reacquired franchise rights		10,242
Other intangible assets, net of liabilities of $1,288		735
Deferred income taxes		380
Long-term debt and capital leases		(147,005	)
Other net liabilities		(4,536	)
Notes receivable		(1,529	)
Net impact on fiscal 2011 Consolidated Balance Sheet		10,933
Gain on settlement of preexisting contracts, net		(4,906	)
Gain on acquisitions		(1,770	)
Net impact on fiscal 2011 Consolidated Statement of Income		(6,676	)
Aggregate cash purchase prices	$	4,257

Operating results for acquired franchise partnerships

The table below shows operating results attributable to the restaurants acquired from franchisees in fiscal 2011 that are included in our Condensed Consolidated Statements of Operations for the 13 and 26 weeks  ended November 29, 2011 and November 30, 2010 (in thousands).  Amounts shown for the 13 and 26 weeks ended November 29, 2011 include results for all 109 restaurants acquired during fiscal 2011 while amounts shown for the 13 and 26 weeks ended November 30, 2010 include results for the 23 restaurants acquired during the first two quarters of fiscal 2011 (from August 4, 2010 or October 13, 2010, the dates of acquisition, through November 30, 2010).

	(Unaudited)
	Thirteen weeks ended					Twenty-six weeks ended
	November 29, 2011			November 30, 2010		November 29, 2011		November 30, 2010
Total revenue	$	41,271		$	10,191	$	86,891	$	13,327
Cost of merchandise		12,243			2,954		25,637		3,826
Payroll and related costs		15,128			3,441		30,964		4,403
Other restaurant operating costs		9,010			2,391		18,775		3,104
Depreciation		2,183			698		4,267		817
Selling, general, and administrative, net		2,762			630		5,848		798
		41,326			10,114		85,491		12,948
(Loss)/income before income taxes	$	(55	)	$	77	$	1,400	$	379

Supplemental pro forma information

The following table presents supplemental pro forma information for the 13 and 26 weeks ended November 30, 2010 as if the 106 restaurants acquired during fiscal 2011 from franchise partnerships had occurred on June 2, 2010 for the 13 and 26 weeks ended November 30, 2010 (in thousands except per-share data):

	(Unaudited)
	Thirteen weeks ended			Twenty-six weeks ended
	November 30, 2010			November 30, 2010
Total revenue		$	325,753		$	672,772
Net income		$	4,643		$	17,075
Basic earnings per share		$	0.07		$	0.27
Diluted earnings per share		$	0.07		$	0.26