Red Robin Gourmet Burgers Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2006; Provides Guidance for Full Year 2007.GREENWOOD Greenwood. 1 City (1990 pop. 26,265), Johnson co., central Ind.; settled 1822, inc. as a city 1960. A residential suburb of Indianapolis, Greenwood is in a retail shopping area. Manufactures include motor vehicle parts and metal products. VILLAGE, Colo. -- Red Robin Gourmet Burgers Burgers are hamburgers. Burgers may also refer to:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : RRGB RRGB Red Robin Gourmet Burgers (restaurant chain) ), a casual dining restaurant chain focused on serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the thirteen weeks and fifty-three weeks ended December December: see month. 31, 2006, and provided guidance for the 2007 fiscal year. Financial and Operational Highlights Highlights for the thirteen weeks ended December 31, 2006, compared to the twelve weeks ended December 25, 2005, are as follows: * Total revenues increased 40.6% to $163.8 million * Restaurant revenue increased 41.8% to $160.4 million * Company-owned comparable restaurant sales increased 0.2%, on a 13-week comparable basis * Restaurant-level operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased 48.4% to $34.6 million, including $0.2 million in stock compensation expense * Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.53, including $0.06 of stock compensation expense, approximately $0.01 per share charge from reacquired franchise costs, and an $0.11 per share benefit from the impact of the extra week in 2006, vs. $0.33 in diluted earnings per share last year * A total of 15 new Red Robin[R] restaurants, 7 company-owned and 8 franchised locations were opened during the period Highlights for the fifty-three weeks ended December 31, 2006, compared to the fifty-two Adj. 1. fifty-two - being two more than fifty 52, lii cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" weeks ended December 25, 2005, are as follows: * Total revenues increased 27.3% to $618.7 million * Restaurant revenue increased 27.9% to $603.4 million * Company-owned comparable restaurant sales increased 2.4%, on a 53-week comparable basis * Restaurant-level operating profit increased 27.1% to $128.0 million, including $0.9 million in stock compensation expense * Diluted earnings per share were $1.75, including $0.24 of stock compensation expense, a $0.07 per share charge from the reacquired franchise costs, and an $0.11 per share benefit from the impact of the extra week in 2006, compared to $1.64 in diluted earnings per share last year, which included a $0.06 per share charge related to significant and unusual items. * A total of 48 new Red Robin[R] restaurants, 32 company-owned and 16 franchised locations were opened across in 2006 "Our fourth quarter financial results were stronger than we anticipated due to better than expected operating performance, and a greater benefit from the 53rd week this fiscal period, combined with a the receipt of funds from a class action litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement from Visa and Mastercard MasterCard Worldwide (NYSE: MA) is a mutinational corporation based in Purchase, NY in the United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "Mastercard" branded debit- and , as well as an improvement in our effective tax rate. In 2007, we intend to raise our brand profile through a national media strategy, which we believe will enhance awareness of the Red Robin brand, particularly in newer markets in an effort to drive restaurant sales. We have also tempered new restaurant growth to enable us to focus on brand awareness, improve new restaurant performance, and reduce development costs, all of which we believe can help us drive stronger longer-term financial performance and returns," said Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the Mullen Mul´len n. 1. (Bot.) See Mullein. , chairman and chief executive officer. As of the end of fiscal 2006, there were 208 company-owned and 139 franchised Red Robin[R] restaurants. The fiscal year ended December 31, 2006 was a 53-week year, and the fiscal fourth quarter of 2006 was a 13-week quarter, while the fiscal year and fourth quarter 2005 included 52 weeks, and 12 weeks, respectively. The calculation of the comparable restaurant sales increase for each period presented in 2006 was made on a 13-week quarter or 53-week fiscal year basis by including the first week of 2006 fiscal year in the comparable restaurant performance for 2005. The calculation of average weekly sales for the periods presented for 2006 includes the additional week in the 13-week or 53-week average, but the prior year comparison of average weekly sales in 2005 has not been modified from previous disclosures. Beginning with the fiscal first quarter of 2006, the Company adopted the requirements related to expensing stock-based compensation in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-based Payment" ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R") on a modified prospective basis. The impact to diluted earnings per share from stock compensation expense for the fiscal fourth quarter of 2006 and the fiscal year 2006 were $0.06 and $0.24, respectively. Schedule II of this earnings release reconciles the impact on the net income and diluted earnings per share as reported on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis in the fiscal fourth quarter and fiscal year of 2006 and 2005, to adjusted amounts excluding stock compensation expense, the reacquired franchise costs, and the extra week. Excluding the impact of stock compensation expense, the reacquired franchise costs, and the extra week in the fourth quarter, net income for the fiscal fourth quarter of 2006 would have increased 46.1% to $8.1 million and net income per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share would have increased 48.5% to $0.49. For the full year 2006, net income excluding stock compensation expense, the reacquired franchise costs, and the extra week in the fiscal year, would have increased 14.8% to $32.7 million and net income per diluted share would have increased 14.7% to $1.95 per diluted share. Fiscal Fourth Quarter 2006 Results Comparable restaurant sales increased 0.2% for company-owned restaurants in the fiscal fourth quarter of 2006 compared to the fiscal fourth quarter of 2005, driven by a 3.2% increase in the average guest check which was offset by a 3.0% decline in guest counts. Average weekly comparable sales for company-owned restaurants were $61,421 in the fiscal fourth quarter of 2006, compared to $60,966 in the same period a year ago. Average weekly sales for non-comparable company-owned restaurants were $53,557 in the fiscal fourth quarter of 2006, compared to $56,573 in the fiscal fourth quarter a year ago. Average weekly comparable sales for the 13 restaurants acquired from our Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. franchisee were $82,167 in the fiscal fourth quarter of 2006. Total Company revenues, which include company-owned restaurant sales and franchise royalties and fees, increased 40.6% to $163.8 million in the fiscal fourth quarter of 2006, versus $116.5 million last year. Franchise royalties and fees fell 0.9% to $3.4 million in the fiscal fourth quarter of 2006 compared to the same period a year ago, due in part to the Company's purchase of 13 franchised locations from the Washington franchisee in the second half of fiscal 2006. For the fiscal fourth quarter of 2006, the Company's franchise system reported a decrease in total U.S. franchise restaurant sales of 3.5% to $84.6 million, compared to $87.7 million in the prior year period due to the acquisition of the 13 franchised locations by the Company in the second half of fiscal 2006. Comparable sales in the fiscal fourth quarter of 2006 for franchise restaurants in the U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of increased 1.5% and 5.1% over the fiscal fourth quarter of 2005, respectively. Average weekly sales in the fiscal fourth quarter of 2006 for the Company's comparable franchise restaurants were $55,487 in the U.S. versus $56,379 for the same period the prior year, and C$45,772 in Canada versus C$42,374 in the same period last year. Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. results are in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents . Restaurant-level operating profit margins Operating profit margin The ratio of operating profit to net sales. at company-owned restaurants increased to 21.5% in the fiscal fourth quarter of 2006 from 20.6% in the fiscal fourth quarter of 2005. Fiscal fourth quarter restaurant-level operating profit included $0.2 million in stock compensation expense, which approximated 0.1% of restaurant revenue. Fiscal fourth quarter 2006 restaurant-level operating profit margins were positively impacted by lower cost of sales, labor, and restaurant operating costs operating costs npl → gastos mpl operacionales , which were somewhat offset by higher occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal . The Company's restaurant-level operating profit metric does not represent income from operations or net income calculated in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP"). Schedule I of this earnings release reconciles restaurant-level operating profit to income from operations and net income for all periods presented. General and administrative expense was $13.3 million in the fiscal fourth quarter of 2006 and $9.2 million in the fiscal fourth quarter of 2005, which were 8.1% and 7.9% of total revenue, respectively. Included in general and administrative expense for the fiscal fourth quarter 2006 was $1.0 million in stock compensation expense, which approximated 0.6% of total revenue, and for which there was no comparable expense last year. In the fiscal fourth quarter of 2006, the Company also: * Incurred $0.3 million in pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges for reacquired franchise costs or $0.01 per diluted share after tax, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the termination of a franchise agreement for the acquired Puyallup Puyallup, city, United States Puyallup (py  ăl`əp), city (1990 pop. 23,875), Pierce co., W Wash., on the Puyallup River; inc. 1890. restaurant, as it
operated at a royalty rate lower than current market royalty rates;
* Received $0.3 million for a widely publicized pub·li·cize tr.v. pub·li·cized, pub·li·ciz·ing, pub·li·ciz·es To give publicity to. Adj. 1. publicized - made known; especially made widely known publicised class action litigation settlement with credit card companies, which was a benefit to general and administrative expense, or $0.01 per diluted share after tax, * Realized a reduction in the effective tax rate, which benefited diluted earnings per share by approximately $0.05. Net income for the fiscal fourth quarter of 2006 was $8.8 million or $0.53 per diluted share, as compared to net income of $5.5 million, or $0.33 per diluted share, in the fiscal fourth quarter of 2005. Net income for the fiscal fourth quarter of 2006 includes $1.2 million in pre-tax stock compensation expense, or $0.06 per diluted share, after tax. Fiscal Year 2006 Results Comparable restaurant sales increased 2.4% for company-owned restaurants in the full year ended December 31, 2006 over the year ago period, driven by a 1.9% increase in the average guest check as well as a 0.5% increase in guest counts. Average weekly comparable sales for company-owned restaurants were $63,729 in fiscal year 2006, compared to $63,236 in fiscal year 2005. Average weekly sales for non-comparable Company-owned restaurants were $55,806 in the fiscal year 2006, compared to $58,770 in fiscal year 2005. Average weekly comparable sales for the 13 acquired restaurants were $83,798 in fiscal year 2006. Total Company revenues, which include company-owned restaurant sales and franchise royalties and fees, increased 27.3% to $618.7 million for the fifty-three weeks ended December 31, 2006, compared to $486.0 million for the fifty-two weeks ended December 25, 2005. Franchise royalties and fees in the fiscal year 2006 increased 9.2% to $15.1 million compared to the same period a year ago. Fiscal year 2006 franchise royalties exclude royalty revenue from the 13 acquired franchise restaurants in Washington State beginning in the fiscal third quarter of 2006. For the fiscal year 2006, the Company's franchise system reported an increase in total U.S. franchise restaurant sales of 11.4%, to $364.3 million, compared to $327.0 million in fiscal year 2005, which was partially offset by the reduction in franchise sales resulting from the 13 franchise restaurants acquired by the Company beginning in the third fiscal quarter of 2006. Comparable sales in fiscal year 2006 for franchise restaurants in the U.S. and Canada increased 2.6% and 7.9%, respectively, over the year ago comparable period. Average weekly sales in fiscal year 2006 for the Company's comparable franchise restaurants were $58,459 in the U.S. versus $58,182 for the same period in the prior year, and C$46,473 in Canada versus C$43,259 in the same last year. Canadian results are in Canadian dollars. Restaurant-level operating profit margins from company-owned restaurants was 21.2% for fiscal year 2006 compared to 21.3% for the fiscal year of 2005. The fifty-three weeks of fiscal 2006 includes stock compensation expense of $0.9 million, or approximately 0.1% of restaurant revenue. Full year 2006 restaurant-level operating profit margins were positively impacted by lower cost of sales and occupancy costs, which were somewhat offset by higher labor and restaurant operating costs. The Company's restaurant-level operating profit metric does not represent income from operations or net income calculated in accordance with generally accepted accounting principles ("GAAP"). Schedule I of this earnings release reconciles restaurant-level operating profit to income from operations and net income for all periods presented. General and administrative expense was $51.4 million for the full year 2006 compared to $36.7 million for the same period of 2005, which were 8.3% and 7.5% of total revenue in their respective periods. Included in general and administrative expense for the fifty-three weeks of fiscal 2006 was $4.9 million in stock compensation expense, which approximated 0.8% of total revenue, and for which there was no comparable expense last year. Excluding stock compensation expense, general and administrative expense as a percentage of total revenue was flat year over year. In the fiscal year 2006, the Company incurred $1.7 million in pre-tax charges, or $0.07 per diluted share after tax, for a charge relating to the termination of franchise agreements for certain of the acquired restaurants in Washington state that operated at a royalty rate lower than current market royalty rates. In the fiscal year 2005, the Company incurred $1.5 million in pre-tax charges, or $0.06 per diluted share after tax, for two significant and unusual items related to the managerial changes made in the third quarter of 2005. Net income for the fifty-three weeks ended December 31, 2006 was $29.4 million or $1.75 per diluted share, compared to net income of $27.4 million or $1.64 per diluted share in the prior year period. Net income for fiscal 2006 includes $5.8 million in pre-tax stock compensation expense, or $0.24 per diluted share after tax, and for which there was no comparable expense last year. Outlook Beginning with the Company's 2007 fiscal year, the Company will provide only annual guidance for revenue, comparable restaurant sales growth, and earnings per share expectations. The Company will continue to provide quarterly unit development expectations for both company-owned units as well as franchise units. The Company plans to give quarterly updates to its 2007 annual revenue and comparable restaurant sales, and earnings guidance as circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or warrant it. For the first quarter of 2007, which is a 16 week quarter, the Company expects to open 8 to 9 new company-owned and 7 to 9 new franchised restaurants. Five company-owned and 2 new franchised restaurants have already opened during the first quarter of 2007, and 15 company-owned and 10 franchise restaurants are currently under construction. For the first half of 2007, the Company expects to open between 17 and 19 new restaurants of the 24 to 27 new company-owned units planned for the full fiscal year of 2007. The franchisees are expected to open between 15 and 17 new restaurants in fiscal 2007. For the full year of 2007, which is a 52-week year, the Company expects revenues of $715 to $735 million and net income of $1.75 to $1.85 per diluted share, including the impact of Statement of SFAS No. 123R. The impact of SFAS No. 123R for the full fiscal year of 2007 is expected to be between $0.28 and $0.30 per diluted share. These projected full fiscal year 2007 results are also based upon certain assumptions, including an expected comparable restaurant sales increase of approximately 2% to 3.5%. Forecasted growth in annual comparable restaurant sales are expected to be concentrated in the last three quarters of the fiscal year. The Company's 2007 financial guidance includes the launch of a national advertising campaign that will be funded by company-owned and franchised restaurants. Total 2007 spending is expected to be approximately $11.0 million to $11.5 million which will be funded by a national advertising fund, whereby each restaurant in the system, company-owned and franchised, is contributing approximately 1% of their restaurant revenue in 2007. The company-owned restaurants will contribute an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. 0.5% beginning in March 2007 to the national advertising fund, with the remaining 0.5% contributions coming from the reallocation Noun 1. reallocation - a share that has been allocated again allocation, allotment - a share set aside for a specific purpose 2. reallocation of historical marketing spending. Investor Conference Call and Webcast Red Robin will host an investor conference call to discuss its fourth quarter and year end results today at 5:00 p.m. ET. The conference call number is (800) 665-0430. To access the webcast, please visit www.redrobin.com and select the "Investors" link from the menu. The quarterly and fiscal year financial information that we intend to discuss during the conference call is included in this press release and will be available on the "Investors" link of the Company's website at www.redrobin.com following the conference call. About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) Red Robin Gourmet Burgers, Inc., (www.redrobin.com), founded in 1969, is a casual dining restaurant chain that serves up wholesome whole·some adj. whole·som·er, whole·som·est 1. Conducive to sound health or well-being; salutary: simple, wholesome food; a wholesome climate. 2. , fun, feel-good feel-good adj. Characterized by or designed to encourage a feeling of often superficial happiness or satisfaction: "Everything about Fassbinder ran contrary to Hollywood notions of feel-good entertainment" experiences in a family-friendly environment. Red Robin[R] restaurants are famous for serving more than 22 high-quality gourmet burgers in a variety of recipes with Bottomless bot·tom·less adj. 1. Having no bottom. 2. Too deep to be measured: a bottomless glacier lake. 3. Steak Fries[R], as well as salads, soups, appetizers, entrees, desserts, and signature Mad Mixology mix·ol·o·gy n. The study or skill of preparing mixed drinks. mix·ol  o·gist n. [R] Beverages. There are more than 350 Red Robin[R] restaurants
located across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada, which include both
corporate-owned locations and those operating under franchise or license
agreements.
Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain information and statements contained in this press release, including those under the heading "Outlook", are forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. These statements may be identified, without limitation, by the use of forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. terminology such as "anticipates," "expects," "forecasted", "assumptions," "projected," or comparable terms or the negative thereof. All forward-looking statements included in this press release are based on information available to the Company on the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Such statements speak only as of the date hereof and we undertake no obligation to update any such statement to reflect events or circumstances arising after the date hereof. These statements are based on assumptions believed by us to be reasonable, and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the following: our ability to achieve and manage our planned expansion, including both in new markets and existing markets; lack of awareness of our brand in new markets; higher percentage of operating weeks from non-comparable restaurants; concentration of less mature restaurants in the comp comp See comparison. restaurant base; effectiveness of our initiative to normalize normalize to convert a set of data by, for example, converting them to logarithms or reciprocals so that their previous non-normal distribution is converted to a normal one. new restaurant operations; ability to attract, motivate and retain qualified team members, particularly in new markets; the effectiveness of our proposed new advertising strategy; the ability of our franchisees to open and manage new restaurants; effectiveness of our management strategies and decisions; the concentration of our restaurants in the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century ; changes in the availability and costs of food; changes in labor costs; changes in energy costs; changes in availability of capital or credit facility borrowings; changes in the cost and availability of building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . and restaurant supplies; potential fluctuation Fluctuation A price or interest rate change. in our quarterly operating results due to seasonality and other factors; the effect of increased competition in the casual dining market; the continued service of key management personnel; changes in consumer preferences, general economic conditions or consumer discretionary spending; health concerns about our food products and food preparation; our ability to protect our name and logo and other proprietary information; the impact of federal, state or local government regulations relating to our team members or the sale of food or alcoholic beverages
immune adherence to our practices, policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental ; and other risk factors described from time to time in the Company's 10-Q and 10-K filings with the SEC.
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Schedule I
Reconciliation of Non-GAAP Restaurant-Level Operating
Profit to Income from Operations and Net Income
The Company defines restaurant-level operating profit to be restaurant revenues minus restaurant-level operating costs, excluding restaurant closures and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. costs in the event closure or impairment charges are incurred. It does not include general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. , depreciation and amortization, franchise development costs and pre-opening costs. The Company believes that restaurant-level operating profit is an important measure of financial performance because it is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. The Company excludes restaurant closure costs as they do not represent a component of the efficiency of continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the . Restaurant impairment costs are excluded, because, similar to depreciation and amortization, they represent a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for the Company's investment in its restaurants and not a component of the efficiency of restaurant operations. Restaurant-level operating profit is not a measurement determined in accordance with generally accepted accounting principles ("GAAP") and should not be considered in isolation, or as an alternative, to income from operations or net income as indicators of financial performance. Restaurant-level operating profit as presented may not be comparable to other similarly titled measures of other companies. The table below sets forth certain unaudited information for the thirteen and fifty-three weeks ended December 31, 2006 and the twelve and fifty-two weeks ended December 25, 2005, expressed as a percentage of total revenues, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenues. [TABLE OMITTED] Certain percentage amounts in the table above do not sum due to rounding as well as the fact that restaurant operating costs are expressed as a percentage of restaurant revenues, as opposed to total revenues.
Schedule II
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with Generally Accepted Accounting Principles ("GAAP") throughout this press release, the Company has provided non-GAAP measurements which present the thirteen and fifty-three week periods ended December 31, 2006, year-over-year change in net income and diluted net income per share excluding the impact of stock-based compensation expense required under Statement of Financial Accounting Standards (SFAS) No. 123R, Share-Based Payment, (SFAS 123R), the reacquired franchise costs, the significant and unusual items incurred in 2005 as described previously, and the impact of the extra week in fiscal 2006. The Company adopted SFAS 123R beginning in fiscal 2006 using the modified prospective transition method and, as a result, will not retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin adjust results from prior periods. The non-GAAP measurements are intended to supplement the presentation of the Company's financial results in accordance with GAAP. The Company believes that the presentation of these items provides additional information to facilitate the comparison of past and present financial results. [TABLE OMITTED] [TABLE OMITTED] |
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