Restaurant Impairments and Closures |
6 Months Ended |
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Jul. 10, 2016 | |
| Restructuring and Related Activities [Abstract] | |
| Restaurant Impairments and Closures |
Restaurant Impairments and Closures
During the second quarter of 2016, the Company determined that six Company-owned restaurants were impaired and recognized a non-cash impairment charge of $3.9 million. The Company recognized the impairment charges resulting from the continuing and projected future results of these restaurants, primarily through projected cash flows. During the first quarter of 2016, the Company relocated one restaurant and recognized a $0.8 million asset impairment charge due to the relocation. No impairments were recorded during the twenty-eight weeks ended July 12, 2015.
Each restaurant’s past and present operating performance was reviewed combined with projected future results, primarily through projected undiscounted cash flows, which indicated impairment. The Company compared the carrying amount of each restaurant’s assets to its fair value as estimated by management. The impairment charges represent the excess of each restaurant’s carrying amount over its estimated fair value.
The Company closed one restaurant at the end of its lease term during the second quarter of 2016. The Company also closed one restaurant during the first quarter of 2016 and sold the property for an immaterial loss. The Company closed one restaurant at the end of its lease term during the twenty-eight weeks ended July 12, 2015.
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