Business and License Acquisitions (Tables)

12 Months Ended

Jun. 05, 2012

Business and License Acquisitions

Allocation of purchase prices of acquisitions

The purchase prices of the Lime Fresh acquisition during fiscal 2012 have been preliminarily allocated based on fair value estimates as follows (in thousands):

Trademarks	$	11,100
Goodwill		7,989
Acquired franchise rights		2,460
Property and equipment		2,405
Deferred income taxes		19
Other, net		(923	)
Net impact on Consolidated Balance Sheet		23,050
Write-off of previous license agreement		1,034
Net impact on Consolidated Statements of Operations		1,034
Aggregate cash purchase price	$	24,084

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

				Fiscal 2012
	As Previously Reported			Adjustments			As Adjusted
Property and equipment	$	137,075		$	-		$	137,075
Goodwill		15,571			1,348			16,919
Reacquired franchise rights		10,242			-			10,242
Other intangible assets, net of liabilities of $1,288		735			-			735
Deferred income taxes		380			(928	)		(548	)
Long-term debt and capital leases		(147,005	)		-			(147,005	)
Other net liabilities		(4,536	)		-			(4,536	)
Notes receivable		(1,529	)		-			(1,529	)
Net impact on Consolidated Balance Sheet		10,933			420			11,353
Gain on settlement of preexisting contracts, net		(4,906	)		-			(4,906	)
Gain on acquisitions		(1,770	)		(420	)		(2,190	)
Net impact on Consolidated Statements of Operations		(6,676	)		(420	)		(7,096	)
Aggregate cash purchase prices	$	4,257		$	-		$	4,257

Operating results for acquired franchise partnerships

The table below shows operating results from the dates of acquisition (which occurred between August 4, 2010 and May 4, 2011) for the years ended June 5, 2012 and May 31, 2011 for the 109 restaurants that were acquired from franchisees in fiscal 2011 (in thousands):

	(Unaudited)
	June 5, 2012		May 31, 2011
Total revenue	$	173,949	$	76,068
Cost of merchandise		49,913		22,349
Payroll and related costs		61,807		25,535
Other restaurant operating costs		36,941		16,499
Depreciation		8,409		3,432
Selling, general, and administrative, net		12,557		4,431
		169,627		72,246
Income before income taxes	$	4,322	$	3,822

Supplemental pro forma information

The following table presents supplemental pro forma information as if the acquisition of 106 restaurants from franchise partnerships had occurred on June 2, 2010 for the year ended May 31, 2011, and June 3, 2009 for the year ended June 1, 2010 (in thousands except per-share data):

	(Unaudited)
	May 31, 2011		June 1, 2010
Total revenue	$	1,375,469	$	1,379,853
Net income	$	45,928	$	45,352
Basic earnings per share	$	0.72	$	0.74
Diluted earnings per share	$	0.71	$	0.73