Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 05, 2012

Summary of Significant Accounting Policies [Abstract]

Weighted-average common and dilutive potential common shares outstanding

Basic (loss)/earnings per share is computed by dividing net (loss)/income by the weighted average number of common shares outstanding during each period presented.  Diluted (loss)/earnings per share gives effect to stock options and restricted stock outstanding during the applicable periods.  The following table reflects the calculation of weighted-average common and dilutive potential common shares outstanding as presented in the accompanying Consolidated Statements of Operations (in thousands):

	2012			2011		2010
Net (loss)/income	$	(188	)	$	46,878	$	45,344
Weighted-average common shares outstanding		62,916			64,029		61,533
Dilutive effect of stock options and restricted stock		-			919		337
Weighted average common and dilutive potential
common shares outstanding		62,916			64,948		61,870
Basic (loss)/earnings per share	$	(0.00	)	$	0.73	$	0.74
Diluted (loss)/earnings per share	$	(0.00	)	$	0.72	$	0.73

Antidilutive shares excluded from computation of diluted earnings/(loss) per share

Stock options with an exercise price greater than the average market price of our common stock and certain options with unrecognized compensation expense do not impact the computation of diluted (loss)/earnings per share because the effect would be anti-dilutive.  The following table summarizes stock options and restricted shares that did not impact the computation of diluted (loss)/earnings per share because their inclusion would have had an anti-dilutive effect (in thousands):

	2012	2011	2010
Stock options	2,716*	2,517	4,450
Restricted shares	1,219*	421	884
Total	3,935	2,938	5,334

Changes in carrying amount of goodwill

The changes in the carrying amount of goodwill are as follows (in thousands):

Balance at June 1, 2010	$	-
Acquisitions		15,571
Balance at May 31, 2011		15,571
Adjustments to fiscal year 2011
purchase price allocations		1,348
Acquisitions		7,989
Impairment		(16,919	)
Balance at June 5, 2012	$	7,989

Other intangible assets

Other intangible assets which are included in Other assets, net in the Consolidated Balance Sheets consist of the following (in thousands):

	2012				2011
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Reacquired franchise rights	$	14,825	$	4,961	$	14,900	$	2,956
Trademarks		11,961		847		836		672
Acquired franchise agreements		2,460		39		-		-
Favorable lease valuations *		2,205		168		2,023		63
Other		150		4		-		-
	$	31,601	$	6,019	$	17,759	$	3,691