Impairment and Restaurant Closures |
6 Months Ended |
|---|---|
Jul. 12, 2015 | |
| Restructuring and Related Activities [Abstract] | |
| Impairment and Restaurant Closures |
Impairment and Restaurant Closures
During the twenty-eight weeks ended July 12, 2015, the Company closed one restaurant at the end of its lease term. The Company closed two restaurants that operated below acceptable profitability levels during the twenty-eight weeks ended July 13, 2014. Both restaurants closed during the twenty-eight weeks ended July 13, 2014 had been impaired in fiscal year 2013. No impairments were recorded during the twenty-eight weeks ended July 12, 2015 or July 13, 2014.
The Company evaluates restaurants that are closed and allocates goodwill based on the relative fair value of the disposed restaurants to the Company’s reporting unit. Since restaurant operations are typically valued based on cash flow from operations, the Company compares the historical cash flow from the closed restaurants to the cash flow from the reporting unit to determine the relative value. No goodwill was allocated to the restaurants closed during the twenty-eight weeks ended July 12, 2015 or July 13, 2014, because those restaurants had projected zero or negative cash flow and consequently did not have positive fair value.
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