2019 Q1 Form 10-Q Financial Statement

#000080788219000006 Filed on February 21, 2019

View on sec.gov

Income Statement

Concept 2019 Q1
Revenue $290.8M
YoY Change -1.26%
Cost Of Revenue $117.0M
YoY Change 16.65%
Gross Profit $173.8M
YoY Change -10.5%
Gross Profit Margin 59.77%
Selling, General & Admin $90.80M
YoY Change -16.16%
% of Gross Profit 52.24%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $17.20M
YoY Change -10.42%
% of Gross Profit 9.9%
Operating Expenses $108.4M
YoY Change -14.98%
Operating Profit $65.40M
YoY Change -1.95%
Interest Expense -$17.40M
YoY Change 35.94%
% of Operating Profit -26.61%
Other Income/Expense, Net -$500.0K
YoY Change -16.67%
Pretax Income $40.50M
YoY Change -32.5%
Income Tax $9.400M
% Of Pretax Income 23.21%
Net Earnings $34.10M
YoY Change 179.51%
Net Earnings / Revenue 11.73%
Basic Earnings Per Share
Diluted Earnings Per Share $1.307M
COMMON SHARES
Basic Shares Outstanding 25.81M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.300M
YoY Change 13.16%
Cash & Equivalents $4.300M
Short-Term Investments
Other Short-Term Assets $5.692M
YoY Change -4.34%
Inventory $2.090M
Prepaid Expenses $10.37M
Receivables $33.50M
Other Receivables $28.00M
Total Short-Term Assets $96.55M
YoY Change -75.75%
LONG-TERM ASSETS
Property, Plant & Equipment $408.3M
YoY Change -11.85%
Goodwill $46.75M
YoY Change -8.43%
Intangibles $511.0K
YoY Change -62.09%
Long-Term Investments
YoY Change
Other Assets $199.5M
YoY Change -18.22%
Total Long-Term Assets $324.0M
YoY Change 9.36%
TOTAL ASSETS
Total Short-Term Assets $96.55M
Total Long-Term Assets $324.0M
Total Assets $828.9M
YoY Change -28.4%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $44.74M
YoY Change 64.84%
Accrued Expenses $100.4M
YoY Change -2.37%
Deferred Revenue
YoY Change
Short-Term Debt $0.00
YoY Change
Long-Term Debt Due $42.50M
YoY Change -38.05%
Total Short-Term Liabilities $187.7M
YoY Change -27.85%
LONG-TERM LIABILITIES
Long-Term Debt $1.014B
YoY Change -2.21%
Other Long-Term Liabilities $92.91M
YoY Change -60.53%
Total Long-Term Liabilities $1.248B
YoY Change -1.85%
TOTAL LIABILITIES
Total Short-Term Liabilities $187.7M
Total Long-Term Liabilities $1.248B
Total Liabilities $1.436B
YoY Change -6.26%
SHAREHOLDERS EQUITY
Retained Earnings $1.548B
YoY Change 4.22%
Common Stock $473.7M
YoY Change 3.3%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.530B
YoY Change 15.52%
Treasury Stock Shares 56.33M shares
Shareholders Equity -$607.3M
YoY Change
Total Liabilities & Shareholders Equity $828.9M
YoY Change -28.4%

Cashflow Statement

Concept 2019 Q1
OPERATING ACTIVITIES
Net Income $34.10M
YoY Change 179.51%
Depreciation, Depletion And Amortization $17.20M
YoY Change -10.42%
Cash From Operating Activities $37.60M
YoY Change -46.05%
INVESTING ACTIVITIES
Capital Expenditures -$11.20M
YoY Change -8.2%
Acquisitions
YoY Change
Other Investing Activities $6.900M
YoY Change -309.09%
Cash From Investing Activities -$4.300M
YoY Change -72.26%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -31.70M
YoY Change -42.36%
NET CHANGE
Cash From Operating Activities 37.60M
Cash From Investing Activities -4.300M
Cash From Financing Activities -31.70M
Net Change In Cash 1.600M
YoY Change -300.0%
FREE CASH FLOW
Cash From Operating Activities $37.60M
Capital Expenditures -$11.20M
Free Cash Flow $48.80M
YoY Change -40.42%

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
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dei Document Period End Date
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2019-01-20
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DocumentType
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0.44
us-gaap Income Loss From Continuing Operations Per Basic Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerDilutedShare
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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CY2018Q3 us-gaap Income Tax Receivable
IncomeTaxReceivable
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IncomeTaxReceivable
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us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
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us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
10434000 USD
us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
0 USD
us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-1027000 USD
us-gaap Income Tax Reconciliation Other Reconciling Items
IncomeTaxReconciliationOtherReconcilingItems
121000 USD
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-32667000 USD
us-gaap Increase Decrease In Accrued Liabilities
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us-gaap Increase Decrease In Construction Payables
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us-gaap Increase Decrease In Construction Payables
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4927000 USD
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us-gaap Increase Decrease In Inventories
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232000 USD
us-gaap Increase Decrease In Payables Under Repurchase Agreements
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0 USD
us-gaap Increase Decrease In Payables Under Repurchase Agreements
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-14362000 USD
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Receivables
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3154000 USD
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1248492000 USD
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us-gaap Marketing And Advertising Expense
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us-gaap Marketing And Advertising Expense
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us-gaap Net Cash Provided By Used In Continuing Operations
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us-gaap Net Cash Provided By Used In Discontinued Operations
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us-gaap Net Cash Provided By Used In Investing Activities
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NotesAndLoansReceivableGrossCurrent
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CY2018Q1 us-gaap Number Of Restaurants
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NumberOfRestaurants
2241 restaurant
us-gaap Occupancy Net
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27750000 USD
us-gaap Occupancy Net
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16013000 USD
us-gaap Operating Income Loss
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us-gaap Operating Income Loss
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us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
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us-gaap Other Asset Impairment Charges
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Net Of Tax
OtherComprehensiveIncomeLossDerivativesQualifyingAsHedgesNetOfTax
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us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
OtherComprehensiveIncomeLossDerivativesQualifyingAsHedgesTax
3039000 USD
us-gaap Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax
OtherComprehensiveIncomeLossDerivativesQualifyingAsHedgesTax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansBeforeTax
1205000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansTax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Tax
OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansTax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesBeforeTax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesBeforeTax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansBeforeTax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodBeforeTax
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Before Tax
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CY2018Q3 us-gaap Other Liabilities Noncurrent
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us-gaap Other Nonrecurring Expense
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us-gaap Other Nonrecurring Income
OtherNonrecurringIncome
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us-gaap Other Operating Activities Cash Flow Statement
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-3330000 USD
us-gaap Other Operating Activities Cash Flow Statement
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CY2018Q3 us-gaap Other Prepaid Expense Current
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CY2018Q3 us-gaap Other Receivables
OtherReceivables
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CY2019Q1 us-gaap Other Receivables
OtherReceivables
13774000 USD
CY2018Q3 us-gaap Other Receivables Gross Current
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CY2019Q1 us-gaap Other Receivables Gross Current
OtherReceivablesGrossCurrent
2513000 USD
us-gaap Payments For Proceeds From Businesses And Interest In Affiliates
PaymentsForProceedsFromBusinessesAndInterestInAffiliates
-5591000 USD
us-gaap Payments For Proceeds From Businesses And Interest In Affiliates
PaymentsForProceedsFromBusinessesAndInterestInAffiliates
-133000 USD
us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
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us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
0 USD
us-gaap Payments For Proceeds From Tenant Allowance
PaymentsForProceedsFromTenantAllowance
1761000 USD
us-gaap Payments For Proceeds From Tenant Allowance
PaymentsForProceedsFromTenantAllowance
3247000 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
0 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
14362000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
17000 USD
us-gaap Payments Of Dividends
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11736000 USD
us-gaap Payments Of Dividends
PaymentsOfDividends
10305000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
4244000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
2498000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
10793000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
11183000 USD
us-gaap Pension And Other Postretirement Benefit Contributions
PensionAndOtherPostretirementBenefitContributions
1710000 USD
us-gaap Pension And Other Postretirement Benefit Contributions
PensionAndOtherPostretirementBenefitContributions
2111000 USD
us-gaap Pension And Other Postretirement Benefit Expense
PensionAndOtherPostretirementBenefitExpense
715000 USD
us-gaap Pension And Other Postretirement Benefit Expense
PensionAndOtherPostretirementBenefitExpense
456000 USD
us-gaap Pension Expense
PensionExpense
564000 USD
us-gaap Pension Expense
PensionExpense
456000 USD
CY2018Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2019Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2019Q1 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
9410000 USD
us-gaap Proceeds From Collection Of Notes Receivable
ProceedsFromCollectionOfNotesReceivable
6517000 USD
us-gaap Proceeds From Divestiture Of Businesses
ProceedsFromDivestitureOfBusinesses
5591000 USD
us-gaap Proceeds From Divestiture Of Businesses
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133000 USD
us-gaap Proceeds From Issuance Of Common Stock
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0 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
114000 USD
us-gaap Proceeds From Long Term Lines Of Credit
ProceedsFromLongTermLinesOfCredit
106200000 USD
CY2018Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
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CY2019Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
15000000 shares
CY2018Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2019Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2018Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q3 us-gaap Prepaid Advertising
PrepaidAdvertising
4318000 USD
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PrepaidAdvertising
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CY2018Q3 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
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CY2019Q1 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
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CY2019Q1 us-gaap Prepaid Rent
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us-gaap Proceeds From Long Term Lines Of Credit
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us-gaap Proceeds From Repayments Of Bank Overdrafts
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us-gaap Proceeds From Repayments Of Bank Overdrafts
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us-gaap Proceeds From Sale Of Property Plant And Equipment
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us-gaap Proceeds From Sale Of Property Plant And Equipment
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CY2018Q3 us-gaap Property Plant And Equipment Gross
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1190031000 USD
CY2019Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1191930000 USD
CY2018Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
419669000 USD
CY2019Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
408291000 USD
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ReceivablesNetCurrent
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CY2019Q1 us-gaap Receivables Net Current
ReceivablesNetCurrent
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us-gaap Repayments Of Long Term Debt
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us-gaap Repayments Of Long Term Debt
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10907000 USD
us-gaap Repayments Of Long Term Lines Of Credit
RepaymentsOfLongTermLinesOfCredit
130800000 USD
us-gaap Repayments Of Long Term Lines Of Credit
RepaymentsOfLongTermLinesOfCredit
117300000 USD
CY2019Q1 us-gaap Restructuring And Related Cost Expected Cost Remaining1
RestructuringAndRelatedCostExpectedCostRemaining1
1600000 USD
us-gaap Restructuring Costs
RestructuringCosts
358000 USD
us-gaap Restructuring Costs
RestructuringCosts
5840000 USD
CY2018Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1561353000 USD
CY2019Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
1547759000 USD
CY2019Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
3434000 USD
CY2019Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
4860000 USD
CY2019Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
4838000 USD
CY2019Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
4639000 USD
CY2019Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
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us-gaap Revenues
Revenues
294463000 USD
us-gaap Revenues
Revenues
290786000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
34061000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
24083000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
2937000 USD
CY2019Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
26671000 USD
CY2019Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
48926000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
1909000 USD
us-gaap Significant Changes Franchises Sold
SignificantChangesFranchisesSold
22 restaurant
us-gaap Significant Changes Franchises Sold
SignificantChangesFranchisesSold
0 restaurant
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
0 USD
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
115000 USD
CY2018Q4 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
60000000 USD
CY2019Q1 us-gaap Stock Repurchase Program Remaining Authorized Repurchase Amount1
StockRepurchaseProgramRemainingAuthorizedRepurchaseAmount1
101000000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
-374560000 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
-591699000 USD
CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
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CY2018Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
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CY2019Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
56325632 shares
CY2018Q3 us-gaap Treasury Stock Value
TreasuryStockValue
2530439000 USD
CY2019Q1 us-gaap Treasury Stock Value
TreasuryStockValue
2530439000 USD
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
29853000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
26128000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
29551000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
25907000 shares
us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;text-align:justify;padding-left:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Fiscal year</font><font style="font-family:inherit;font-size:10pt;"> &#8212; Our fiscal year is </font><font style="font-family:inherit;font-size:10pt;">52</font><font style="font-family:inherit;font-size:10pt;"> or </font><font style="font-family:inherit;font-size:10pt;">53</font><font style="font-family:inherit;font-size:10pt;"> weeks ending the Sunday closest to </font><font style="font-family:inherit;font-size:10pt;">September 30</font><font style="font-family:inherit;font-size:10pt;">. Fiscal years </font><font style="font-family:inherit;font-size:10pt;">2019</font><font style="font-family:inherit;font-size:10pt;"> and 2018 include </font><font style="font-family:inherit;font-size:10pt;">52</font><font style="font-family:inherit;font-size:10pt;"> weeks. Our first quarter includes </font><font style="font-family:inherit;font-size:10pt;">16</font><font style="font-family:inherit;font-size:10pt;">-weeks and all other quarters include </font><font style="font-family:inherit;font-size:10pt;">12</font><font style="font-family:inherit;font-size:10pt;">-weeks. All comparisons between </font><font style="font-family:inherit;font-size:10pt;">2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2018</font><font style="font-family:inherit;font-size:10pt;"> refer to the </font><font style="font-family:inherit;font-size:10pt;">16-weeks</font><font style="font-family:inherit;font-size:10pt;"> (&#8220;quarter&#8221;) ended </font><font style="font-family:inherit;font-size:10pt;">January&#160;20, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">January&#160;21, 2018</font><font style="font-family:inherit;font-size:10pt;">, respectively, unless otherwise indicated.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;text-align:justify;padding-left:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Reclassifications and adjustments</font><font style="font-family:inherit;font-size:10pt;"> &#8212; We recorded certain adjustments in </font><font style="font-family:inherit;font-size:10pt;">2019</font><font style="font-family:inherit;font-size:10pt;"> upon the adoption of a new accounting pronouncement; see details regarding the effects of the adoption on our condensed consolidated financial statements below. </font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:6px;text-align:justify;padding-left:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of estimates</font><font style="font-family:inherit;font-size:10pt;"> &#8212; In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates.</font></div></div>

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