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Stockholders' Equity
3 Months Ended
Apr. 02, 2013
Stockholders' Equity  
Stockholders' Equity

5. Stockholders’ Equity

 

On July 23, 2012, our Board approved the initiation of a cash dividend to our stockholders which is subject to quarterly Board approval.  A cash dividend of $0.12 per common share was declared during the third quarter of fiscal 2012 and in each fiscal quarter since then.  There can be no assurance that such dividends will be declared in the future.

 

On October 17, 2011, our Board of Directors (“Board”) increased the authorization to repurchase our common stock by 10.0 million shares to 41.0 million shares.  Under this and previous authorizations, we have cumulatively repurchased 35.7 million shares at a total cost of $873.8 million through April 2, 2013, including 1.2 million shares of our common stock at a cost of $42.0 million during the first quarter of fiscal 2013.  Our share repurchase authorization does not have an expiration date, does not require us to purchase a specific number of shares and may be modified, suspended or terminated at any time.

 

On November 6, 2012, our Board approved the adoption of a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934 (the “Act”), which is effective from December 6, 2012 through July 3, 2013.

 

The timing and number of shares repurchased pursuant to the share repurchase authorization are subject to a number of factors, including legal constraints and financial covenants under our Facility that limit share repurchases based on defined ratios.  See Note 3 for further discussion of our long-term debt.  Shares may be repurchased in the open market or through privately negotiated transactions at times and prices considered appropriate by us.  Purchases in the open market are made in compliance with Rule 10b-18 of the Act.  We make the determination to repurchase shares based on several factors, including an evaluation of current and future capital needs associated with new restaurant development, current and forecasted cash flows, including dividend payments, a review of our capital structure and cost of capital, our share price and current market conditions.  Our objectives with regard to share repurchases are to offset the dilution to our shares outstanding that results from equity compensation grants and to supplement our earnings per share growth.