☑ |
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐ |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Missouri
|
|
45-3189287
|
(State or other jurisdiction of Incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
RAVE
|
Nasdaq Capital Market
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
Non-accelerated filer ☑
|
Smaller reporting company ☑
|
Emerging growth company ☐
|
|
|
|
Item 1.
|
Financial Statements
|
Page
|
|
3 | |||
4 | |||
5 |
|||
6 |
|||
7 | |||
Item 2.
|
17 | ||
Item 3.
|
26 | ||
Item 4.
|
26 |
Item 1.
|
27
|
||
Item 1A.
|
27
|
||
Item 2.
|
27
|
||
Item 3.
|
27
|
||
Item 4.
|
27
|
||
Item 5.
|
27
|
||
Item 6.
|
28
|
||
|
29
|
Three Months Ended
|
||||||||
September 29,
2019
|
September 23,
2018
|
|||||||
REVENUES:
|
$
|
2,876
|
$
|
2,991
|
||||
COSTS AND EXPENSES:
|
||||||||
Cost of sales
|
134
|
159
|
||||||
General and administrative expenses
|
1,363
|
1,414
|
||||||
Franchise expenses
|
866
|
1,061
|
||||||
Gain on sale of assets
|
(11
|
)
|
(4
|
)
|
||||
Impairment of long-lived assets and other lease charges
|
148
|
15
|
||||||
Bad debt
|
(8
|
)
|
24
|
|||||
Interest expense
|
27
|
25
|
||||||
Depreciation and amortization expense
|
47
|
139
|
||||||
Total costs and expenses
|
2,566
|
2,833
|
||||||
INCOME BEFORE TAXES
|
310
|
158
|
||||||
Income tax expense
|
73
|
50
|
||||||
NET INCOME
|
$
|
237
|
$
|
108
|
||||
INCOME PER SHARE OF COMMON STOCK - BASIC:
|
$
|
0.02
|
$
|
0.01
|
||||
INCOME PER SHARE OF COMMON STOCK - DILUTED:
|
$
|
0.02
|
$
|
0.01
|
||||
Weighted average common shares outstanding - basic
|
15,106
|
15,064
|
||||||
|
||||||||
Weighted average common and potential dilutive common shares outstanding
|
15,924
|
15,897
|
(Unaudited)
|
||||||||
September 29,
2019
|
June 30,
2019
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
2,421
|
$
|
2,264
|
||||
Accounts receivable, less allowance for bad debts of $203 and $209, respectively
|
927
|
1,191
|
||||||
Notes receivable, less allowance for bad debt of $916 and $916, respectively
|
596
|
389
|
||||||
Inventories
|
6
|
7
|
||||||
Income tax receivable
|
4
|
4
|
||||||
Property held for sale
|
231
|
231
|
||||||
Deferred contract charges
|
267
|
38
|
||||||
Prepaid expenses and other
|
300
|
346
|
||||||
Total current assets
|
4,752
|
4,470
|
||||||
LONG-TERM ASSETS
|
||||||||
Property, plant and equipment, net
|
482
|
500
|
||||||
Operating lease right of use asset, net
|
3,313
|
-
|
||||||
Intangible assets definite-lived, net
|
184
|
196
|
||||||
Long-term notes receivable
|
484
|
735
|
||||||
Deferred tax asset, net
|
3,989
|
4,060
|
||||||
Long-term deferred contract charges
|
-
|
232
|
||||||
Deposits and other
|
234
|
233
|
||||||
Total assets
|
$
|
13,438
|
$
|
10,426
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable - trade
|
$
|
290
|
$
|
400
|
||||
Accounts payable - lease termination impairments
|
607
|
832
|
||||||
Accrued expenses
|
762
|
834
|
||||||
Deferred rent
|
-
|
37
|
||||||
Operating lease liability, current
|
531
|
-
|
||||||
Deferred revenues
|
266
|
275
|
||||||
Total current liabilities
|
2,456
|
2,378
|
||||||
LONG-TERM LIABILITIES
|
||||||||
Convertible notes
|
1,529
|
1,584
|
||||||
Deferred rent, net of current portion
|
-
|
397
|
||||||
Operating lease liability, net of current portion
|
3,224
|
-
|
||||||
Deferred revenues, net of current portion
|
1,445
|
1,561
|
||||||
Other long-term liabilities
|
51
|
72
|
||||||
Total liabilities
|
8,705
|
5,992
|
||||||
COMMITMENTS AND CONTINGENCIES (SEE NOTE 4)
|
||||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,208,141 and 22,208,141 shares, respectively; outstanding 15,122,887 and 15,090,837 shares,
respectively
|
222
|
222
|
||||||
Additional paid-in capital
|
33,294
|
33,327
|
||||||
Accumulated deficit
|
(4,246
|
)
|
(4,483
|
)
|
||||
Treasury stock at cost
|
||||||||
Shares in treasury: 7,085,254 and 7,117,304, respectively
|
(24,537
|
)
|
(24,632
|
)
|
||||
Total shareholders’ equity
|
4,733
|
4,434
|
||||||
Total liabilities and shareholders’ equity
|
$
|
13,438
|
$
|
10,426
|
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
Total
|
||||||||||||||||||||||||||
Common Stock
|
Treasury Stock
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||
Balance, June 24, 2018
|
22,167
|
$
|
222
|
$
|
33,206
|
$
|
(2,493
|
)
|
(7,119
|
)
|
$
|
(24,636
|
)
|
$
|
6,299
|
|||||||||||||
ASC 606 Cumulative Adjustment
|
(1,622
|
)
|
(1,622
|
)
|
||||||||||||||||||||||||
Stock compensation expense
|
-
|
-
|
101
|
-
|
-
|
-
|
101
|
|||||||||||||||||||||
Issuance of common stock
|
24
|
-
|
36
|
-
|
-
|
-
|
36
|
|||||||||||||||||||||
Net income
|
-
|
-
|
-
|
108
|
-
|
108
|
||||||||||||||||||||||
Balance, September 23, 2018
|
22,191
|
$
|
222
|
$
|
33,343
|
$
|
(4,007
|
)
|
(7,119
|
)
|
$
|
(24,636
|
)
|
$
|
4,922
|
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
|
|
Total
|
||||||||||||||||||||||||
Common Stock
|
Treasury Stock
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||
Balance, June 30, 2019
|
22,208
|
$
|
222
|
$
|
33,327
|
$
|
(4,483
|
)
|
(7,117
|
)
|
$
|
(24,632
|
)
|
$
|
4,434
|
|||||||||||||
Conversion of senior notes, net
|
-
|
-
|
(31
|
)
|
-
|
32
|
95
|
64
|
||||||||||||||||||||
Equity issue costs - ATM Offering
|
-
|
-
|
(2
|
)
|
-
|
-
|
-
|
(2
|
)
|
|||||||||||||||||||
Net Income
|
-
|
-
|
-
|
237
|
-
|
-
|
237
|
|||||||||||||||||||||
Balance, September 29, 2019
|
22,208
|
$
|
222
|
$
|
33,294
|
$
|
(4,246
|
)
|
(7,085
|
)
|
$
|
(24,537
|
)
|
$
|
4,733
|
Three Months Ended
|
||||||||
September 29,
2019
|
September 23,
2018
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
237
|
$
|
108
|
||||
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||
Impairment of fixed assets and other assets
|
148
|
-
|
||||||
Stock compensation expense
|
-
|
101
|
||||||
Depreciation and amortization
|
35
|
129
|
||||||
Amortization of operating lease asset
|
115
|
-
|
||||||
Amortization of intangible assets definite-lived
|
12
|
10
|
||||||
Amortization of debt issue costs
|
9
|
5
|
||||||
Gain on the sale of assets
|
(11
|
)
|
(4
|
)
|
||||
Provision for bad debt
|
(8
|
)
|
24
|
|||||
Deferred income tax
|
71
|
17
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
272
|
296
|
||||||
Inventories
|
1
|
-
|
||||||
Prepaid expenses, deposits and other, net
|
44
|
(79
|
)
|
|||||
Deferred revenue
|
(122
|
)
|
234
|
|||||
Accounts payable - trade
|
(110
|
)
|
23
|
|||||
Accounts payable - lease termination impairments
|
(373
|
)
|
-
|
|||||
Operating lease liability
|
(120
|
)
|
-
|
|||||
Accrued expenses, deferred rent and other
|
(68
|
)
|
(274
|
)
|
||||
Cash provided by operating activities
|
132
|
590
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Payments received on notes receivable issued for fixed asset sales
|
44
|
-
|
||||||
Proceeds from sale of assets
|
-
|
4
|
||||||
Purchase of property, plant and equipment
|
(17
|
)
|
(10
|
)
|
||||
Cash provided by (used in) investing activities
|
27
|
(6
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from sale of stock
|
-
|
36
|
||||||
Equity issuance costs
|
(2
|
)
|
-
|
|||||
Cash provided by (used in) financing activities
|
(2
|
)
|
36
|
|||||
Net increase in cash and cash equivalents
|
157
|
620
|
||||||
Cash and cash equivalents, beginning of period
|
2,264
|
1,386
|
||||||
Cash and cash equivalents, end of period
|
$
|
2,421
|
$
|
2,006
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
CASH PAID FOR:
|
||||||||
Interest
|
$
|
2
|
$
|
2
|
||||
Income taxes
|
$
|
1
|
$
|
4
|
||||
Non-cash activities:
|
||||||||
Conversion of notes to common shares
|
$
|
64
|
$
|
-
|
(1)
|
Summary of Significant Accounting Policies
|
Three Months Ended
|
||||||||
September 29,
2019 |
September 23,
2018 |
|||||||
Restaurant Sales
|
$
|
108
|
$
|
114
|
||||
Franchise Royalties
|
1,108
|
1,277
|
||||||
Supplier and Distributor Incentive Revenues
|
1,023
|
1,109
|
||||||
Supplier Convention Funds
|
215
|
216
|
||||||
Franchise License Fees
|
211
|
53
|
||||||
Advertising Funds
|
152
|
193
|
||||||
Rental Income
|
41
|
-
|
||||||
Area Development Fees and Foreign Master License Fees
|
7
|
19
|
||||||
Other
|
11
|
10
|
||||||
$
|
2,876
|
$
|
2,991
|
(2)
|
Adoption of ASU 2014-09, “Revenue from Contracts with Customers”
|
(3)
|
Adoption of ASC 842, “Leases”
|
● |
not apply the recognition requirements to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option);
|
● |
not reassess whether a contract contains a lease, lease classification and initial direct costs; and
|
● |
not reassess certain land easements in existence prior to July 1, 2019.
|
July 1,
2019
|
||||||||||||
Adoption
|
Reclassification (1)
|
Total Adjustment
|
||||||||||
Balance Sheet:
|
||||||||||||
Operating lease right of use assets
|
$
|
3,428
|
$
|
434
|
$
|
3,862
|
||||||
Operating lease liabilities - current
|
528
|
528
|
||||||||||
Operating lease liabilities - long-term
|
3,347
|
3,347
|
Three Months Ended
|
||||
September 29,
2019
|
||||
Operating lease cost
|
$
|
153
|
||
Sublease income
|
(41
|
)
|
||
Total lease expense, net of sublease income
|
$
|
112
|
Three Months Ended
|
||||
September 29,
2019
|
||||
Cash paid for amounts included in the measurement of lease liabilities
|
158
|
September 29,
2019 |
||||
Operating lease right of use assets
|
$
|
3,313
|
||
Accrued liabilities - current
|
531
|
|||
Operating lease liabilities - long-term
|
3,224
|
September 29,
2019
|
||||
Weighted average remaining lease term
|
7 years
|
|||
Weighted average discount rate
|
4.0
|
%
|
Operating Leases
|
||||
Remainder of fiscal year 2020
|
$
|
470
|
||
2021
|
641
|
|||
2022
|
654
|
|||
2023
|
664
|
|||
2024
|
571
|
|||
Thereafter
|
1,294
|
|||
Total lease payments
|
$
|
4,294
|
||
Less imputed interest
|
(539
|
)
|
||
Total lease liability
|
$
|
3,755
|
(4)
|
Stock Purchase Plan
|
(5)
|
Commitments and Contingencies
|
(6)
|
Stock-Based Compensation
|
Three Months Ended
|
||||||||
September 29,
2019
|
September 23,
2018
|
|||||||
Shares
|
Shares
|
|||||||
Outstanding at beginning of year
|
216,550
|
478,056
|
||||||
Granted
|
-
|
-
|
||||||
Exercised
|
-
|
-
|
||||||
Forfeited/Canceled/Expired
|
-
|
(100,000
|
)
|
|||||
Outstanding at end of period
|
216,550
|
378,056
|
||||||
Exercisable at end of period
|
216,550
|
378,056
|
Number of Restricted Stock Units
|
||||
Unvested at June 30, 2019
|
155,106
|
|||
Granted
|
-
|
|||
Vested
|
-
|
|||
Forfeited
|
-
|
|||
Unvested at September 29, 2019
|
155,106
|
(7)
|
Earnings per Share (EPS)
|
Three Months Ended
|
||||||||
September 29,
2019
|
September 23,
2018
|
|||||||
Net income available to common stockholders
|
$
|
237
|
$
|
108
|
||||
Interest saved on convertible notes of $1,630 at 4%
|
$
|
16
|
$
|
17
|
||||
Adjusted net income
|
$
|
253
|
$
|
125
|
||||
BASIC:
|
||||||||
Weighted average common shares
|
15,106
|
15,064
|
||||||
Net income per common share
|
$
|
0.02
|
$
|
0.01
|
||||
DILUTED:
|
||||||||
Weighted average common shares
|
15,106
|
15,064
|
||||||
Convertible notes
|
815
|
833
|
||||||
Dilutive stock options
|
3
|
-
|
||||||
Weighted average common shares outstanding
|
15,924
|
15,897
|
||||||
Net income per common share
|
$
|
0.02
|
$
|
0.01
|
(8)
|
Income Taxes
|
(9)
|
Segment Reporting
|
Three Months Ended
|
||||||||
September 29,
2019
|
September 23,
2018
|
|||||||
Net sales and operating revenues:
|
||||||||
Pizza Inn Franchising
|
$
|
1,864
|
$
|
1,904
|
||||
Pie Five Franchising
|
852
|
963
|
||||||
Company-Owned Restaurants
|
108
|
114
|
||||||
Corporate administration and other
|
52
|
10
|
||||||
Consolidated revenues
|
$
|
2,876
|
$
|
2,991
|
||||
Depreciation and amortization:
|
||||||||
Pizza Inn Franchising
|
$
|
-
|
$
|
-
|
||||
Pie Five Franchising
|
-
|
-
|
||||||
Company-Owned Restaurants
|
-
|
31
|
||||||
Combined
|
-
|
31
|
||||||
Corporate administration and other
|
47
|
108
|
||||||
Depreciation and amortization
|
$
|
47
|
$
|
139
|
||||
Income before taxes:
|
||||||||
Pizza Inn Franchising
|
$
|
1,412
|
$
|
1,347
|
||||
Pie Five Franchising
|
438
|
459
|
||||||
Company-Owned Restaurants
|
(203
|
)
|
(129
|
)
|
||||
Combined
|
1,647
|
1,677
|
||||||
Corporate administration and other
|
(1,337
|
)
|
(1,519
|
)
|
||||
Income before taxes
|
$
|
310
|
$
|
158
|
||||
Geographic information (revenues):
|
||||||||
United States
|
$
|
2,817
|
$
|
2,894
|
||||
Foreign countries
|
59
|
97
|
||||||
Consolidated total
|
$
|
2,876
|
$
|
2,991
|
Pizza Inn |
Pie Five
|
All Concepts
|
||||||||||||||||||||||
Ending
Units
|
Retail
Sales
|
Ending
Units
|
Retail
Sales
|
Ending
Units
|
Retail
Sales
|
|||||||||||||||||||
Domestic Franchised/Licensed
|
152
|
$
|
21,894
|
55
|
$
|
8,728
|
207
|
$
|
30,622
|
|||||||||||||||
Company-Owned
|
-
|
-
|
1
|
108
|
1
|
108
|
||||||||||||||||||
Total Domestic Units
|
152
|
$
|
21,894
|
56
|
$
|
8,836
|
208
|
$
|
30,730
|
|||||||||||||||
International Franchised
|
34
|
-
|
34
|
Three Months Ended
|
||||||||
September 29,
2019
|
September 23,
2018
|
|||||||
Net income
|
$
|
237
|
$
|
108
|
||||
Interest expense
|
27
|
25
|
||||||
Income taxes
|
73
|
50
|
||||||
Depreciation and amortization
|
47
|
139
|
||||||
EBITDA
|
$
|
384
|
$
|
322
|
||||
Stock compensation expense
|
-
|
101
|
||||||
Gain on sale/disposal of assets
|
(11
|
)
|
(4
|
)
|
||||
Impairment of long-lived assets and other lease charges
|
148
|
15
|
||||||
Franchisee default and closed store revenue/expense
|
(147
|
)
|
-
|
|||||
Closed and non-operating store costs
|
6
|
22
|
||||||
Adjusted EBITDA
|
$
|
380
|
$
|
456
|
Three Months Ended
|
||||||||
September 29,
2019
|
September 23,
2018
|
|||||||
Pizza Inn Retail Sales - Total Domestic Units
|
(in thousands, except unit data)
|
|||||||
Domestic Units
|
||||||||
Buffet Units - Franchised
|
$
|
20,285
|
$
|
20,133
|
||||
Delco/Express Units - Franchised
|
1,545
|
1,815
|
||||||
PIE Units - Licensed
|
64
|
39
|
||||||
Total Domestic Retail Sales
|
$
|
21,894
|
$
|
21,987
|
||||
Pizza Inn Comparable Store Retail Sales - Total Domestic
|
21,068
|
20,444
|
||||||
Pizza Inn Average Units Open in Period
|
||||||||
Domestic Units
|
||||||||
Buffet Units - Franchised
|
84
|
88
|
||||||
Delco/Express Units - Franchised
|
59
|
61
|
||||||
PIE Units - Licensed
|
9
|
3
|
||||||
Total Domestic Units
|
152
|
152
|
Three Months Ended September 29, 2019
|
||||||||||||||||||||
Beginning
Units
|
Opened
|
Concept
Change
|
Closed
|
Ending
Units
|
||||||||||||||||
Domestic Units
|
||||||||||||||||||||
Buffet Units - Franchised
|
87
|
-
|
-
|
4
|
83
|
|||||||||||||||
Delco/Express Units - Franchised
|
59
|
-
|
-
|
1
|
58
|
|||||||||||||||
PIE Units - Licensed
|
9
|
2
|
-
|
-
|
11
|
|||||||||||||||
Total Domestic Units
|
155
|
2
|
-
|
5
|
152
|
|||||||||||||||
International Units (all types)
|
48
|
1
|
-
|
15
|
34
|
|||||||||||||||
Total Units
|
203
|
3
|
-
|
20
|
186
|
Three Months Ended
|
||||||||
September 29,
2019
|
September 23,
2018
|
|||||||
(in thousands, except unit data)
|
||||||||
Pie Five Retail Sales - Total Units
|
||||||||
Domestic Units - Franchised
|
$
|
8,728
|
$
|
11,529
|
||||
Domestic Units - Company-owned
|
108
|
114
|
||||||
Total Domestic Retail Sales
|
$
|
8,836
|
$
|
11,643
|
||||
Pie Five Comparable Store Retail Sales - Total
|
$
|
8,087
|
$
|
9,214
|
||||
Pie Five Average Units Open in Period
|
||||||||
Domestic Units - Franchised
|
57
|
71
|
||||||
Domestic Units - Company-owned
|
1
|
1
|
||||||
Total Domestic Units
|
58
|
72
|
Three Months Ended September 29, 2019
|
||||||||||||||||||||
Beginning
Units
|
Opened
|
Transfer
|
Closed
|
Ending
Units
|
||||||||||||||||
Domestic - Franchised
|
57
|
-
|
-
|
2
|
55
|
|||||||||||||||
Domestic - Company-owned
|
1
|
-
|
-
|
-
|
1
|
|||||||||||||||
Total Domestic Units
|
58
|
-
|
-
|
2
|
56
|
Pie Five - Company-Owned Restaurants
|
Three Months Ended
|
|||||||
(in thousands, except store weeks and average data)
|
September 29,
|
September 23,
|
||||||
2019
|
2018
|
|||||||
Store weeks (excluding partial weeks)
|
13
|
13
|
||||||
Average weekly sales
|
8,308
|
8,769
|
||||||
Average number of units
|
1
|
1
|
||||||
Restaurant sales (excluding partial weeks)
|
108
|
114
|
||||||
Restaurant sales
|
108
|
114
|
||||||
Loss before taxes
|
(203
|
)
|
(129
|
)
|
||||
Allocated marketing and advertising expenses
|
5
|
6
|
||||||
Depreciation/amortization expense
|
-
|
31
|
||||||
Impairment, other lease charges and non-operating store costs
|
154
|
37
|
||||||
Restaurant operating cash flow
|
(44
|
)
|
(55
|
)
|
● |
“EBITDA” represents earnings before interest, taxes, depreciation and amortization.
|
● |
“Adjusted EBITDA” represents earnings before interest, taxes, depreciation and amortization, stock compensation expense, pre-opening expense, gain/loss on sale of assets, costs related to impairment and other lease charges,
discontinued operations, franchisee default and closed store revenue/expense, and closed and non-operating store costs.
|
● |
“Retail sales” represents the restaurant sales reported by our franchisees and Company-owned restaurants, which may be segmented by brand or domestic/international locations.
|
● |
“System-wide retail sales” represents combined retail sales for franchisee and Company-owned restaurants for a specified brand.
|
● |
“Comparable store retail sales” includes the retail sales for restaurants that have been open for at least 18 months as of the end of the reporting period. The sales results for a restaurant that was closed temporarily for remodeling
or relocation within the same trade area are included in the calculation only for the days that the restaurant was open in both periods being compared.
|
● |
“Store weeks” represent the total number of full weeks that specified restaurants were open during the period.
|
● |
“Average units open” reflects the number of restaurants open during a reporting period weighted by the percentage of the weeks in a reporting period that each restaurant was open.
|
● |
“Average weekly sales” for a specified period is calculated as total retail sales (excluding partial weeks) divided by store weeks in the period.
|
● |
“Restaurant operating cash flow” represents the pre-tax income earned by Company-owned restaurants before (1) allocated marketing and advertising expenses, (2) depreciation and amortization, (3) pre-opening expenses, (4) operations
management and extraordinary expenses, (5) impairment and other lease charges, and (6) non-operating store costs.
|
● |
“Pre-opening expenses” consist primarily of certain costs incurred prior to the opening of a Company-owned restaurant, including: (1) marketing and promotional expenses, (2) accrued rent, and (3) manager salaries, employee payroll
and related training costs.
|
● |
“Non-operating store costs” represent gain or loss on asset disposal, store closure expenses, lease termination expenses and expenses related to abandoned store sites.
|
● |
“Franchisee default and closed store revenue/expense” represents the net of accelerated revenues and costs attributable to defaulted area development agreements and closed franchised stores.
|
Pizza Inn
Franchising |
Pie Five
Franchising |
Company-Owned
Stores |
Corporate
|
Total
|
||||||||||||||||||||||||||||||||||||
Fiscal Year-to-Date
|
Fiscal Year-to-Date
|
Fiscal Year-to-Date
|
Fiscal Year-to-Date
|
Fiscal Year-to-Date
|
||||||||||||||||||||||||||||||||||||
September 29,
2019
|
September 23,
2018
|
September 29,
2019
|
September 23,
2018
|
September 29,
2019
|
September 23,
2018
|
September 29,
2019
|
September 23,
2018
|
September 29,
2019
|
September 23,
2018
|
|||||||||||||||||||||||||||||||
REVENUES:
|
||||||||||||||||||||||||||||||||||||||||
Franchise and license revenues
|
$
|
1,864
|
$
|
1,904
|
$
|
852
|
$
|
963
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,716
|
$
|
2,867
|
||||||||||||||||||||
Restaurant sales
|
-
|
-
|
-
|
-
|
108
|
114
|
-
|
-
|
108
|
114
|
||||||||||||||||||||||||||||||
Rental Income
|
-
|
-
|
-
|
-
|
-
|
-
|
41
|
-
|
41
|
-
|
||||||||||||||||||||||||||||||
Interest income and other
|
-
|
-
|
-
|
-
|
-
|
-
|
11
|
10
|
11
|
10
|
||||||||||||||||||||||||||||||
Total revenues
|
1,864
|
1,904
|
852
|
963
|
108
|
114
|
52
|
10
|
2,876
|
2,991
|
||||||||||||||||||||||||||||||
COSTS AND EXPENSES:
|
||||||||||||||||||||||||||||||||||||||||
Cost of sales
|
-
|
-
|
-
|
-
|
134
|
159
|
-
|
-
|
134
|
159
|
||||||||||||||||||||||||||||||
General and administrative expenses
|
-
|
-
|
-
|
-
|
29
|
38
|
1,334
|
1,376
|
1,363
|
1,414
|
||||||||||||||||||||||||||||||
Franchise expenses
|
452
|
557
|
414
|
504
|
-
|
-
|
-
|
-
|
866
|
1,061
|
||||||||||||||||||||||||||||||
Pre-opening expenses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Gain on sale of assets
|
-
|
-
|
-
|
-
|
-
|
-
|
(11
|
)
|
(4
|
)
|
(11
|
)
|
(4
|
)
|
||||||||||||||||||||||||||
Impairment of long-lived assets and other lease charges
|
-
|
-
|
-
|
-
|
148
|
15
|
-
|
-
|
148
|
15
|
||||||||||||||||||||||||||||||
Bad debt
|
-
|
-
|
-
|
-
|
-
|
-
|
(8
|
)
|
24
|
(8
|
)
|
24
|
||||||||||||||||||||||||||||
Interest expense
|
-
|
-
|
-
|
-
|
-
|
-
|
27
|
25
|
27
|
25
|
||||||||||||||||||||||||||||||
Amortization and depreciation expense
|
-
|
-
|
-
|
-
|
-
|
31
|
47
|
108
|
47
|
139
|
||||||||||||||||||||||||||||||
Total costs and expenses
|
452
|
557
|
414
|
504
|
311
|
243
|
1,389
|
1,529
|
2,566
|
2,833
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES
|
$
|
1,412
|
$
|
1,347
|
$
|
438
|
$
|
459
|
$
|
(203
|
)
|
$
|
(129
|
)
|
$
|
(1,337
|
)
|
$
|
(1,519
|
)
|
$
|
310
|
$
|
158
|
Amended and Restated Articles of Incorporation of Rave Restaurant Group, Inc. (incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed January 8, 2015).
|
|
Amended and Restated Bylaws of Rave Restaurant Group, Inc. (incorporated by reference to Exhibit 3.2 to the registrant’s Current Report on Form 8-K filed January 8, 2015).
|
|
Indenture for 4% Convertible Senior Notes due 2022 (filed as Exhibit 4.1 to Form S-3/A filed January 6, 2017 and incorporated herein by reference).
|
|
Pledge Agreement (filed as Exhibit 4.2 to Form S-3/A filed January 6, 2017 and incorporated herein by reference).
|
|
Supplemental Indenture Number 1 dated as of October 31, 2017, between Rave Restaurant Group, Inc. and Securities Transfer Corporation (filed as Exhibit 4.1 to Form 8-K filed November 9, 2017 and incorporated
herein by reference).
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.
|
|
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.
|
|
|
|
Section 1350 Certification of Principal Executive Officer.
|
|
Section 1350 Certification of Principal Financial Officer.
|
|
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T.
|
RAVE RESTAURANT GROUP, INC.
|
|
(Registrant)
|
|
By:
|
/s/ Brandon L. Solano
|
|
Brandon L. Solano
|
||
Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
By:
|
/s/ Mark E. Schwarz
|
|
Mark E. Schwarz
|
||
Director and Chairman of the Board
|
||
|
(Principal Financial Officer)
|
|
Dated: November 13, 2019
|
1. |
I have reviewed this quarterly report on Form 10-Q of Rave Restaurant Group, Inc. (“the Registrant”);
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of,
and for, the periods presented in this report;
|
4. |
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c. |
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and
|
d. |
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual
report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5. |
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of
directors (or persons performing the equivalent functions):
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and
report financial information; and
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
Date: November 13, 2019
|
By:
|
/s/ Brandon L. Solano
|
Brandon L. Solano
|
||
Chief Executive Officer
|
||
(Principal Executive Officer)
|
1. |
I have reviewed this quarterly report on Form 10-Q of Rave Restaurant Group, Inc. (“the Registrant”);
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of,
and for, the periods presented in this report;
|
4. |
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c. |
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and
|
d. |
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual
report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5. |
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of
directors (or persons performing the equivalent functions):
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and
report financial information; and
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
Date: November 13, 2019
|
By:
|
/s/ Mark E. Schwarz
|
Mark E. Schwarz
Director and Chairman of the Board
(Principal Financial Officer)
|
Date: November 13, 2019
|
By:
|
/s/ Brandon L. Solano
|
Brandon L. Solano
Chief Executive Officer
(Principal Executive Officer)
|
Date: November 13, 2019
|
By:
|
/s/ Mark E. Schwarz
|
Mark E. Schwarz
Director and Chairman of the Board
(Principal Financial Officer)
|
Adoption of ASC 842, "Leases" (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASC 842, "Leases" [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of Adoption of New Standards Update Related to Operating Lease | The impact of adoption of this new standards update is as follows (in thousands):
(1) As of June 30, 2019, the Company had $132 thousand recorded within deferred rent for lease incentives incurred at the inception of the affected leases and $302 thousand in deferred rent tenant improvements. Upon adoption of the new standards update, these lease incentives were included within the lease liability. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Total Lease Expense | The components of total lease expense for the three months ended September 29, 2019, the majority of which is included in general and administrative expense, are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases is included in the table below (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases is included in the table below (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Remaining Lease Term and Weighted Average Discount Rate | Weighted average remaining lease term and weighted average discount rate for operating leases are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Lease Liabilities | Lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):
|
Stock Purchase Plan |
3 Months Ended | ||
---|---|---|---|
Sep. 29, 2019 | |||
Stock Purchase Plan [Abstract] | |||
Stock Purchase Plan |
On May 23, 2007, the Company’s board of directors approved a stock purchase plan (the “2007 Stock Purchase Plan”) authorizing the purchase on our behalf of up to 1,016,000 shares of our common stock in the open market or in privately negotiated transactions. On June 2, 2008, the Company’s board of directors amended the 2007 Stock Purchase Plan to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 2,016,000 shares. On April 22, 2009 the Company’s board of directors amended the 2007 Stock Purchase Plan again to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 3,016,000 shares. The 2007 Stock Purchase Plan does not have an expiration date. There were no stock purchases in the fiscal quarters ended September 29, 2019 or September 23, 2018. |
Income Taxes |
3 Months Ended | ||
---|---|---|---|
Sep. 29, 2019 | |||
Income Taxes [Abstract] | |||
Income Taxes |
For the three months ended September 29, 2019, the Company recorded an income tax expense of $73 thousand calculated at a rate consistent with the 21% statutory U.S. federal rate. Income tax expense consisted of $3 thousand in current state taxes, $65 thousand in deferred federal taxes and $5 thousand in deferred state taxes. The Company anticipates utilizing net operating loss carryforwards to offset any federal taxes. The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for the valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of deferred tax assets. Future sources of taxable income are also considered in determining the amount of the recorded valuation allowance. As of September 29, 2019, the Company had $6.4 million of deferred tax assets and a valuation allowance of $2.4 million. The Company determined it was not appropriate to increase or decrease the valuation allowance. However, the Company will continue to review the need for an adjustment to the valuation allowance. |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 29, 2019 |
Sep. 23, 2018 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
REVENUES: | $ 2,876 | $ 2,991 |
COSTS AND EXPENSES: | ||
Cost of sales | 134 | 159 |
General and administrative expenses | 1,363 | 1,414 |
Franchise expenses | 866 | 1,061 |
Gain on sale of assets | (11) | (4) |
Impairment of long-lived assets and other lease charges | 148 | 15 |
Bad debt | (8) | 24 |
Interest expense | 27 | 25 |
Depreciation and amortization expense | 47 | 139 |
Total costs and expenses | 2,566 | 2,833 |
INCOME BEFORE TAXES | 310 | 158 |
Income tax expense | 73 | 50 |
NET INCOME | $ 237 | $ 108 |
INCOME PER SHARE OF COMMON STOCK - BASIC: (in dollars per share) | $ 0.02 | $ 0.01 |
INCOME PER SHARE OF COMMON STOCK - DILUTED: (in dollars per share) | $ 0.02 | $ 0.01 |
Weighted average common shares outstanding - basic (in shares) | 15,106 | 15,064 |
Weighted average common and potential dilutive common shares outstanding (in shares) | 15,924 | 15,897 |
Commitments and Contingencies |
3 Months Ended | ||
---|---|---|---|
Sep. 29, 2019 | |||
Commitments and Contingencies [Abstract] | |||
Commitments and Contingencies |
The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company’s annual results of operations or financial condition if decided in a manner that is unfavorable to the Company. |
Segment Reporting |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting |
The Company has three reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information: (1) Pizza Inn Franchising, (2) Pie Five Franchising and (3) Company-Owned Restaurants. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the three operating segments. Other revenue consists of non-recurring items. The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for this segment is derived from franchise royalties, franchise fees, sale of area development and foreign master license rights and incentive payments from third party suppliers and distributors. Assets for this segment include equipment, furniture and fixtures. The Company-Owned Restaurant segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants. Corporate administration and other assets primarily include cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States. Summarized in the following table are net sales and operating revenues, depreciation and amortization expense, income before taxes, capital expenditures and assets for the Company’s reportable segments as of the three months ended September 29, 2019 and September 23, 2018 (in thousands):
|
Stock-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Stock Options | The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:
|
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Restricted Stock Units | A summary of the status of restricted stock units as of September 29, 2019, and changes during the fiscal quarter then ended is presented below:
|
Summary of Significant Accounting Policies |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies |
Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All appropriate intercompany balances and transactions have been eliminated. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Fiscal Quarters The three month periods ended September 29, 2019 and September 23, 2018 each contained 13 weeks. Use of Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically, and actual results could differ materially from estimates. Revenue Recognition Revenue is measured based on consideration specified in contracts with customers and excludes incentives and amounts collected on behalf of third parties, primarily sales tax. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The following describes principal activities, separated by major product or service, from which the Company generates its revenues: Restaurant Sales Revenue from restaurant sales is recognized when food and beverage products are sold in Company-owned restaurants. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities. Franchise Revenues Franchise revenues consist of 1) franchise royalties, 2) supplier and distributor incentive revenues, 3) franchise license fees, 4) area development exclusivity fees and foreign master license fees, 5) advertising funds, and 6) supplier convention funds. Franchise royalties, which are based on a percentage of franchise restaurant sales, are recognized as sales occur. Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer. Franchise license fees are typically billed upon execution of the franchise agreement and amortized over the term of the franchise agreement which can range from five to 20 years. Fees received for renewal periods are amortized over the life of the renewal period. Area development exclusivity fees and foreign master license fees are typically billed upon execution of the area development and foreign master license agreements. Area development exclusivity fees are included in deferred revenue in the Condensed Consolidated Balance Sheets and allocated on a pro rata basis to all stores opened under that specific development agreement. Area development exclusivity fees that include rights to subfranchise are amortized as revenue over the term of the contract. Advertising fund contributions for Pie Five units represent contributions collected where we have control over the activities of the fund. Contributions are based on a percentage of net retail sales. The adoption of Topic 606 revises the determination of whether these arrangements are considered principal versus agent. For Pie Five, we have determined that we are the principal in these arrangements, and advertising fund contributions and expenditures are, therefore, reported on a gross basis in the Condensed Consolidated Statements of Income. In general, we expect such advertising fund contributions and expenditures to be largely offsetting and, therefore, do not expect a significant impact on our reported income before income taxes. Our obligation related to these funds is to develop and conduct advertising activities. Pie Five marketing fund contributions are billed and collected weekly. Supplier convention funds are deferred until the obligations of the agreement are met and the event takes place. Total revenues consist of the following (in thousands):
Stock-Based Compensation The Company accounts for stock options using the fair value recognition provisions of the authoritative guidance on share-based payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow. Compensation cost for restricted stock units (“RSU’s”) is measured as an amount equal to the fair value of the RSU’s on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on the best estimate of the ultimate achievement level. |
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Segment Reporting (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information | Summarized in the following table are net sales and operating revenues, depreciation and amortization expense, income before taxes, capital expenditures and assets for the Company’s reportable segments as of the three months ended September 29, 2019 and September 23, 2018 (in thousands):
|
Stock Purchase Plan (Details) - shares |
3 Months Ended | ||||
---|---|---|---|---|---|
Apr. 22, 2009 |
Jun. 02, 2008 |
Sep. 29, 2019 |
Sep. 23, 2018 |
May 23, 2007 |
|
Treasury Stock, Shares [Abstract] | |||||
Repurchase of shares common stock (in shares) | 0 | 0 | |||
2007 Stock Purchase Plan [Member] | |||||
Treasury Stock, Shares [Abstract] | |||||
Number of common stock shares authorized to purchase (in shares) | 1,016,000 | ||||
Amended 2007 Stock Purchase Plan [Member] | |||||
Treasury Stock, Shares [Abstract] | |||||
Number of common stock shares authorized to purchase (in shares) | 3,016,000 | 2,016,000 | |||
Repurchase of shares common stock (in shares) | 1,000,000 | 1,000,000 |
Earnings per Share (EPS) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share (EPS) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share (EPS) |
The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts).
For the three months ended September 29, 2019, options to purchase 216,550 shares of common stock at exercise prices from $2.71 to $13.11 were excluded from the computation of diluted EPS because their inclusion would have been anti-dilutive. For the three months ended September 23, 2018, options to purchase 378,056 shares of common stock at exercise prices ranging from $1.55 to $13.11 were excluded from the computation of diluted EPS because their inclusion would have been anti-dilutive. |
Summary of Significant Accounting Policies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Revenues | Total revenues consist of the following (in thousands):
|
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