Red Robin Gourmet Burgers Reports Financial Results for the Third Fiscal Quarter Ended October 1, 2006.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:
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 by offering its guests an imaginative selection of high-quality gourmet burgers and innovative menu items in a family-friendly environment, today reported financial results for the twelve weeks and forty weeks ended October October: see month. 1, 2006. These financial results include the results for the 13 Red Robin franchised restaurants in the state of 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. , 11 of which were purchased on July July: see month. 10, 2006 and two restaurants which are operated under a management agreement. Also included in the third fiscal quarter of 2006, is a $1.4 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge related to the acquisition of the 11 restaurants, which decreased 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 by $0.06. This one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge has been classified as a significant and unusual item on the Company's statement of income in the third fiscal quarter of 2006. The Company also provided guidance for the fourth fiscal quarter 2006 and updated its outlook for the full year 2006. Financial and Operational Highlights Highlights for the twelve week third fiscal quarter of 2006 compared to the same quarter of the prior year are as follows: * Total revenues increased 30.1% to $148.6 million * Restaurant revenue increased 30.9% to $145.3 million * Company-owned comparable restaurant sales increased 0.8% * 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. was $30.3 million, including pre-tax stock compensation expense of $0.2 million * Pre-opening expense increased 82.4% to $2.5 million * Diluted earnings per share were $0.36, including $0.05 of stock compensation expense and $0.06 in a significant and unusual item vs. $0.39 in diluted earnings per share last year, which included $0.06 in charges attributed to significant and unusual items referenced below * 8 Company-owned restaurants and 2 franchised restaurants were opened in the quarter Highlights for the forty weeks ended October 1, 2006 compared to the forty weeks ended October 2, 2005, are as follows: * Total revenues increased 23.1% to $455.0 million * Restaurant revenue increased 23.5% to $443.0 million * Company-owned comparable restaurant sales increased 3.1% * Restaurant-level operating profit was $93.5 million, including pre-tax stock compensation expense of $0.7 million * Pre-opening expense increased 59.1% to $6.6 million * Diluted earnings per share were $1.23, including $0.18 of stock compensation expense and $0.06 for a significant and unusual item vs. $1.31 in diluted earnings per share last year, which included $0.06 in charges attributed to significant and unusual items referenced below * 25 Company-owned restaurants and 8 franchised restaurants were opened in the forty week period As of the end of the third fiscal quarter of 2006, there were 199 Company-owned Red Robin[R] restaurants, including the 11 acquired franchise restaurants, and 133 franchised Red Robin[R] restaurants. Beginning with the first fiscal 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 mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. prospective basis. The impact to diluted earnings per share from stock compensation expense for the third fiscal quarter of 2006 and the fiscal year to date were $0.05 and $0.18, respectively. Before the impact of stock compensation expense and the significant and unusual items, the net income for the third fiscal quarter of 2006 would have increased 4.7% to $7.9 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 4.4% to $0.47. For the year to date, the net income excluding stock compensation expense and significant and unusual items would have increased 7.1% to $24.6 million and net income per diluted share would have increased 7.3% to $1.47 per diluted share. Schedule II of this earnings release reconciles the impact of stock compensation expense and the significant and unusual items on the third fiscal quarter and year to date 2006 and 2005 net income and earnings per share. "While we were pleased with our overall results in the third quarter, recent trends require us to take a more deliberate Willful; purposeful; determined after thoughtful evaluation of all relevant factors; dispassionate. To act with a particular intent, which is derived from a careful consideration of factors that influence the choice to be made. approach to enhancing unit volumes and brand awareness in our newer markets. We will also be pursuing a more conservative new restaurant opening growth plan as we continue to aggressively reduce restaurant construction costs to improve our returns. This more conservative growth plan reflects our commitment to allocate To reserve a resource such as memory or disk. See memory allocation. shareholder capital prudently pru·dent adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. to enhance our return on capital investments," 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. Third Fiscal Quarter 2006 Results Comparable restaurant sales increased 0.8% for Company-owned restaurants in the third fiscal quarter of 2006 compared to the third fiscal quarter of 2005, driven by a 1.4% increase in the average guest check, offset by a 0.6% decrease in guest counts. Average weekly comparable sales for Company-owned restaurants were $62,767 for the third fiscal quarter of 2006, compared to $63,467 for the third fiscal quarter a year ago. Average weekly sales for non-comparable Company-owned restaurants were $54,704 for the third fiscal quarter of 2006, compared to $58,665 for the third fiscal quarter a year ago. Average weekly comparable sales for the 13 acquired restaurants were $85,656 for the third fiscal quarter of 2006. Total Company revenues, which include Company-owned restaurant sales and franchise royalties and fees, increased 30.1% to $148.6 million in the third fiscal quarter of 2006, compared to $114.2 million in the prior year's third fiscal quarter. The Company's franchise royalties and fees increased 1.6% to $3.2 million in the third fiscal quarter of 2006, compared to $3.2 million in the comparable period a year ago. The third fiscal quarter 2006 franchise royalties exclude the royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. revenue from the 11 acquired and two managed franchise restaurants in Washington State. The following U.S. based franchise results exclude the third fiscal quarter of 2006 results for the 13 franchised restaurants in Washington State. For the third fiscal quarter of 2006, Red Robin's franchise system reported a decrease in total U.S. franchise restaurant sales of 0.7% to $75.3 million, compared to $75.8 million in the prior year period. Comparable sales in the third fiscal 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 2.0% and 12.1% over the third fiscal quarter of 2005, respectively. Average weekly sales in the third fiscal quarter of 2006 for Red Robin's comparable franchise restaurants were $55,916 in the U.S. versus $54,834 for the same period the prior year, and C$49,111 in Canada versus C$43,799 for the comparable period the prior 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 margin Operating profit margin The ratio of operating profit to net sales. was 20.8% in the third fiscal quarter of 2006 compared to 21.8% in the third fiscal quarter of 2005. The third fiscal quarter of 2006 included approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.2 million in stock compensation expense, which approximated 0.1% of restaurant revenue. Third fiscal quarter 2006 margins, excluding stock compensation expense, were negatively impacted by higher restaurant operating costs operating costs npl → gastos mpl operacionales , which were somewhat offset by lower cost of sales. 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 GAAP See: Generally Accepted Accounting Principles GAAP See 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 $10.9 million in the third fiscal quarter of 2006 and $8.0 million in the third fiscal quarter of 2005, which were 7.3% and 7.0% of total revenue in their respective periods. Included in general and administrative expense for the third fiscal quarter 2006 was $1.1 million in stock compensation expense, which approximated 0.7% of total revenue. Excluding stock compensation expenses incurred in the third fiscal quarter of 2006, general and administrative expenses decreased as a percentage of total revenue by 0.4% compared to the prior year third fiscal quarter. In the third fiscal quarter of 2006, the Company incurred $1.4 million in pre-tax charges, or $0.06 per diluted share after tax, for a one-time charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the termination of franchise agreements for the acquired restaurants that operated at a royalty rate lower than current market royalty rates. For the third fiscal quarter of 2005, the Company incurred two significant and unusual items: a pre-tax gain of $1.25 million, or approximately $0.05 per share after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. , related to certain expenses which the Company's former chief executive officer reimbursed to the Company, and a non-cash pre-tax charge of approximately $2.8 million, or $0.11 per share after-tax, for stock options that were previously accelerated and were exercised by the former chief executive officer and the former chief financial officer in 2002. These charges are reflected as significant and unusual items in the Company's statements of income for their respective periods. Net income for the third fiscal quarter of 2006 was $6.0 million or $0.36 per diluted share, as compared to net income of $6.5 million, or $0.39 per diluted share, in the third fiscal quarter of 2005. Net income for the third fiscal quarter of 2006 includes $1.3 million in pre-tax stock compensation expense, or $0.05 per diluted share, after tax. Net income for the third fiscal quarter of 2005 includes two significant and unusual items, which reduced diluted earnings per share by approximately $0.06, and net income for 2006 includes a significant and unusual item which reduced diluted earnings per share by approximately $0.06. Year to Date Results Comparable restaurant sales increased 3.1% for Company-owned restaurants in the forty weeks ended October 1, 2006, over the year ago comparable period, driven by a 1.7% increase in guest counts and a 1.4% increase in the average guest check. Comparable sales in the forty weeks ended October 1, 2006 for franchise restaurants in the U.S. and Canada increased 3.0% and 8.9%, respectively, over the year ago comparable period. Total Company revenues, which include Company-owned restaurant sales and franchise royalties and fees, increased 23.1% to $455.0 million for the forty weeks ended October 1, 2006, compared to $369.5 million for the forty weeks ended October 2, 2005. Average weekly comparable sales for Company-owned restaurants were $64,542 for the forty weeks ended October 1, 2006, compared to $63,976 for the forty weeks ended October 2, 2005. Average weekly non-comparable sales for Company-owned restaurants were $56,673 for the forty weeks ended October 1, 2006, compared to $59,543 for the forty weeks ended October 2, 2005. The Company's franchise royalties and fees for the forty weeks ended October 1, 2006 increased 12.6% to $11.8 million compared to $10.4 million in the comparable period a year ago. The year to date 2006 franchise royalties exclude the royalty revenue from the 11 acquired and two managed franchise restaurants in Washington State beginning in the third fiscal quarter of 2006. For the forty weeks ended October 1, 2006, Red Robin's franchise system reported an increase in total U.S. franchise restaurant sales of 12.6%, to $279.7 million, compared to $248.5 million in the forty weeks ended October 2, 2005. Average weekly sales in the forty weeks ended October 1, 2006 for Red Robin's comparable franchise restaurants were $59,417 in the U.S. versus $57,710 for the comparable period last year, and C$46,710 in Canada versus C$42,885 for the comparable period last year. Canadian results are in Canadian dollars. Restaurant-level operating profit margin was 21.1% for the first forty weeks of 2006 compared to 21.6% for the comparable period of 2005. The forty weeks of 2006 includes stock compensation expense of $0.7 million, or approximately 0.2% of restaurant revenue. The 2006 year to date margin decrease of 0.3%, excluding $0.7 million of stock compensation expense, was primarily the result of higher labor and restaurant operating costs, which were offset by lower cost of sales and 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 ("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 $38.1 million for the first forty weeks of 2006 compared to $27.5 million for the same period of 2005, which were 8.4% and 7.4% of total revenue in their respective periods. Included in general and administrative expense for forty weeks of 2006 was $3.9 million in stock compensation expense, which approximated 0.9% of total revenue, and for which there was no comparable expense last year. Excluding stock compensation expense, the 0.1% increase in the general and administrative expense as a percentage of total revenue was primarily due to higher marketing costs and legal fees incurred in 2006. Net income for the forty weeks ended October 1, 2006 was $20.5 million or $1.23 per diluted share, compared to net income of $21.9 million or $1.31 per diluted share in the prior year period. Net income for the first forty weeks of 2006 includes $4.6 million in pre-tax stock compensation expense, or $0.18 per diluted share, after tax. Net income for the forty weeks ended October 2, 2005 includes two significant and unusual items, which reduced income from operations by approximately $1.5 million, and diluted earnings per share by approximately $0.06, and net income for the forty weeks ended October 1, 2006 includes a significant and unusual item which reduced diluted earnings per share by approximately $0.06. Outlook The Company has updated its fiscal full year 2006 expectations, and is providing guidance for the fourth fiscal quarter of 2006. For the fourth fiscal quarter of 2006, which is a thirteen week quarter, the Company expects total revenues between $156 million and $158 million and net income of $0.33 to $0.38 per diluted share. This net income includes the impact of stock compensation expense (SFAS No. 123R) of approximately $0.05 per diluted share but excludes the one-time charge of approximately $0.01 associated with the anticipated acquisition of the two restaurants, currently under management, for restaurants that operated at a royalty rate lower than current market royalty rates. The Company's GAAP basis fourth quarter 2006 earnings per diluted share are estimated to be between $0.32 to $0.37. These projected fourth fiscal quarter 2006 results are based upon certain assumptions, including an expected comparable restaurant sales increase of 0% to 0.5%, revenue from non-comparable restaurants achieving approximately 85% of comp comp See comparison. restaurant sales volumes in the quarter, and the anticipated opening of 7 new Company-owned and 7 to 8 new franchised restaurants during the quarter. Four Company-owned and 4 new franchised restaurants have already opened during the fourth quarter of 2006. The Company currently has 13 restaurants under construction and the franchisees have 8 restaurants under construction. The Company expects to pursue a more conservative new restaurant growth plan for 2007, and will discuss 2007 planned restaurant openings and fiscal 2007 financial guidance on its fourth quarter and fiscal year end conference call in February February: see month. . For the full fiscal year 2006, which is a 53-week year, the Company expects revenues between $611 million and $613 million, and net income of between $1.62 and $1.67 per diluted share down from the previous revenue guidance of $615 million to $618 million, and net income of between $1.74 and $1.83. This updated net income per diluted share for the full fiscal year of 2006 includes the impact of stock compensation expense (SFAS No. 123R) of approximately $0.23 per diluted share but excludes the one-time charge of approximately $0.07 associated with the franchise acquisitions described above. The Company's GAAP basis full year 2006 earnings per diluted share are estimated to be between $1.55 and $1.60. These full fiscal year 2006 projected results are also based upon certain assumptions, including an expected comparable restaurant sales increase of approximately 2.5%, revenue from non-comparable restaurants achieving approximately 85% of comp restaurant sales volumes, and the opening of 32 new Company-owned restaurants and the opening of 15 to 16 new franchised restaurants. Of these new restaurants, 29 new Company-owned restaurants have already opened, while 12 franchised restaurants have already opened. The Company will provide guidance for fiscal 2007 during the fourth quarter 2006 earnings conference call. Investor Conference Call and Webcast Red Robin will host an investor conference call to discuss its third fiscal quarter 2006 results today at 5:00 p.m. ET. The conference call number is (888) 802-2239. To access the broadcast via webcast, please visit www.redrobin.com and select the "Investors" link from the menu. The quarterly financial information that we intend to discuss during the conference call is included in this press release and is also available on the "Investors" link of the Company's website at www.redrobin.com. About Red Robin Gourmet Burgers, Inc. 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 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 Recipes by category Albanian cuisine
adj. 1. Having no bottom. 2. Too deep to be measured: a bottomless glacier lake. 3. Steak Fries[TM] as well as salads, soups A list of different types of soup/stew. Broths (stocks, bouillons) Strained liquid from cooking things in water Consommés Clarified meat or fish broth
n. The study or skill of preparing mixed drinks. mix·ol  o·gist n. [R] Beverages. There are more than 330 Red Robin 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
Company-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 "anticipated", "estimated", "expects," "guidance," "assumptions," "projected," "will" 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 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 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 consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the acquisition of the remaining two restaurants from our franchisee in the state of Washington; our ability to integrate the acquired restaurants and operate them as expected; finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of purchase price and purchase price accounting adjustments related to the acquisition of the Washington franchised restaurants; our ability to achieve and manage our planned expansion; lack of brand awareness in new markets; our ability to open restaurants and operate them as expected; 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; our ability to reduce construction costs in our building; 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 consumer preferences, general economic conditions or consumer discretionary spending; effectiveness of our management strategies, initiatives and decisions; changes in availability of capital or credit facility borrowings; changes in the availability and costs of food; increases in energy costs; potential increases in labor expense due to pending minimum wage legislation in some states; costs of legal fees related to defending class actions and other lawsuits and legal matters; 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; our ability to protect our name and logo and other proprietary information; our ability to attract, motivate and retain qualified team members; the costs associated with pending 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. and investigations including diversion A turning aside or altering of the natural course or route of a thing. The term is chiefly applied to the unauthorized change or alteration of a water course to the prejudice of a lower riparian, or to the unauthorized use of funds. of management time and attention and any expense related to settlement of such matters; the ability of our franchisees to open and manage new restaurants; our franchisees' adherence adherence /ad·her·ence/ (ad-her´ens) the act or condition of sticking to something. 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 ; additional costs associated with compliance, including the Sarbanes-Oxley Act See SOX. of 2002 and related regulations and requirements; the effectiveness of our internal controls over financial reporting; future changes in financial accounting standards; 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 costs in the event closure or impairment
charges are incurred. It does not include general and administrative
costs, 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. Restaurant impairment costs are excluded, because, similar
to depreciation and amortization, they represent a non-cash charge
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 twelve and
forty weeks ended October 1, 2006 and October 2, 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.
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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 op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. 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
twelve and forty week periods ended October 1, 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), and the significant and unusual items incurred for both
third fiscal quarter periods in 2005 and 2006 as described
previously. The Company adopted SFAS 123R beginning in fiscal 2006
using the modified prospective transition method and, as a result,
will not retroactively 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.
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