Business and License Acquisitions (Tables)

12 Months Ended

Jun. 04, 2013

Business and License Acquisitions

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 4, 2013, June 5, 2012, and May 31, 2011 for the 109 restaurants that were acquired from franchisees in fiscal 2011 (in thousands):

	(Unaudited)
	June 4, 2013		June 5, 2012		May 31, 2011
Total revenue	$	164,760	$	173,949	$	76,068
Cost of merchandise		45,090		49,913		22,349
Payroll and related costs		58,000		61,807		25,535
Other restaurant operating costs		36,086		36,941		16,499
Depreciation		7,896		8,409		3,432
Selling, general, and administrative, net		15,735		12,557		4,431
Closures and impairments, net		448		1,328		35
		163,255		170,955		72,281
Income before income taxes	$	1,505	$	2,994	$	3,787

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 (in thousands, except per-share data):

	(Unaudited)
	May 31, 2011
Total revenue	$	1,375,469
Net income	$	45,928
Basic earnings per share	$	0.72
Diluted earnings per share	$	0.71

Lime Fresh [Member]

Business Acquisition [Line Items]

Allocation of purchase prices of acquisitions

The purchase price of the Lime Fresh acquisition during fiscal 2012 was allocated based on fair value estimates as follows (in thousands):

	As Previously Reported	Fiscal 2013 Adjustments	As Adjusted
Trademarks	$   11,100	$        –	$   11,100
Goodwill	7,989	1,033	9,022
Acquired franchise rights	2,460	(960)	1,500
Property and equipment	2,405	–	2,405
Deferred income taxes	19	(13)	6
Other, net	(923)	(60)	(983)
Net impact on Consolidated Balance Sheet	23,050	–	23,050
Write-off of previous license agreement	1,034	–	1,034
Net impact on Consolidated Statements of
Operations and Comprehensive (Loss)/Income	1,034	–	1,034
Aggregate cash purchase price	$  24,084	$        –	$  24,084

Acquisitions During Fiscal 2011 [Member]

Business Acquisition [Line Items]

Allocation of purchase prices of acquisitions

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
and Comprehensive (Loss)/Income		(6,676)		(420)		(7,096)
Aggregate cash purchase prices	$	4,257	$	–	$	4,257