Acquisitions

In 2012, as part of an acquisition of restaurants from Burger King Corporation ("BKC") the Company was assigned BKC's right of first refusal on franchisee restaurant sales in 20 states (the "ROFR"). Since the beginning of 2015, the Company has acquired an aggregate of 67 restaurants from other franchisees in the following transactions:



Closing Date		Number of Restaurants	Purchase Price		Number of Fee-Owned Restaurants (1)	Market Location
2015:
March 31, 2015		4	$	794		Northern Vermont
August 4, 2015		5	663			Charlotte, North Carolina
October 1, 2015	(2)	5	5,044		1	Wheeling, West Virginia
October 20, 2015		1	709			Kalamazoo, Michigan
November 17, 2015		2	618			Evansville, Indiana
November 17, 2015	(2)	6	10,945		5	Evansville, Indiana
December 1, 2015	(2)	23	26,175		10	Detroit, Michigan
December 8, 2015		9	7,802			Northern New Jersey
2016:
February 23, 2016	(2)	12	7,127			Scranton/Wilkes-Barre, Pennsylvania
		67	$	59,877	16

(1)

The 2015 acquisitions included the purchase of 16 fee-owned restaurants. Three of these fee-owned restaurants were sold in sale-leaseback transactions during 2015 for net proceeds of $4.3 million and an additional three fee-owned restaurants were sold in sale-leaseback transactions in the first quarter of 2016 for net proceeds of $5.0 million. Nine of the remaining fee-owned restaurants are expected to be sold in sale-leaseback transactions during the remainder of 2016 although there can be no assurance that such transactions will be completed in 2016 or at all.


(2)	Acquisitions resulting from the exercise of the ROFR.

The restaurants acquired above contributed restaurant sales of $18.7 million in the first quarter of 2016. It is impracticable to disclose net earnings for the post-acquisition period for the acquired restaurants as net earnings of these restaurants were not tracked on a collective basis due to the integration of administrative functions, including field supervision.

The pro forma impact on the results of operations for the restaurants acquired above for the three months ended April 3, 2016 and March 29, 2015 is included below. The pro forma results of operations are not necessarily indicative of the results that would have occurred had the acquisitions been consummated at the beginning of the periods presented, nor are they necessarily indicative of any future consolidated operating results. The following table summarizes the Company's unaudited pro forma operating results:



	Three Months Ended
	April 3, 2016		March 29, 2015
Restaurant sales	$	224,674	$	213,150
Net income (loss)	$	2,621	$	(8,155	)
Basic and diluted net income (loss) per share	$	0.06	$	(0.23	)

This pro forma financial information does not give effect to any anticipated synergies, operating efficiencies or cost savings or any transaction and integration costs related to the acquired restaurants.