Annual report pursuant to Section 13 and 15(d)

Note 17 - Segment Information

v3.7.0.1
Note 17 - Segment Information
12 Months Ended
Dec. 25, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
(17)
Segment Information
 
The Company has
two
reportable segments – the Company-owned steakhouse segment and the franchise operations segment. Previously reported segment information has been revised to exclude the Mitchell’s Restaurants. The Company does not rely on any major customers as a source of revenue.
 
The Company-owned Ruth’s Chris Steak House restaurants, all of which are located in North America, operate within the full-service dining industry, providing similar products to similar customers. Revenues are derived principally from food and beverage sales. As of
December
25,
2016,
(i) the Company-owned steakhouse restaurant segment included
68
Ruth’s Chris Steak House restaurants and
one
Ruth’s Chris Steak House restaurant operating under a management agreement and (ii) the franchise operations segment included
81
franchisee-owned Ruth’s Chris Steak House restaurants. Segment profits for the Company-owned steakhouse restaurant segments equal segment revenues less segment expenses. Segment revenues for the Company-owned steakhouse restaurants include restaurant sales, management agreement income and other restaurant income. Gift card breakage revenue is not allocated to operating segments. Not all operating expenses are allocated to operating segments. Segment expenses for the Company-owned steakhouse segment include food and beverage costs and restaurant operating expenses.  No other operating costs are allocated to the segments for the purpose of determining segment profits because such costs are not directly related to the operation of individual restaurants. The accounting policies applicable to each segment are consistent with the policies used to prepare the consolidated financial statements. The profit of the franchise operations segment equals franchise income, which consists of franchise royalty fees and franchise opening fees. No costs are allocated to the franchise operations segment. Segment information related to the Company’s
two
reportable business segments follows.
 
 
 
Fiscal Year
 
 
 
2016
 
 
2015
 
 
2014
 
   
(Dollar amounts in thousands)
 
Revenues:
                       
Company-owned steakhouse restaurants
  $
366,054
    $
354,398
    $
327,731
 
Franchise operations
   
17,301
     
16,661
     
15,763
 
Unallocated other revenue and revenue discounts
   
2,592
     
2,374
     
2,603
 
Total revenues
  $
385,947
    $
373,433
    $
346,097
 
                         
Segment profits:
                       
Company-owned steakhouse restaurants
  $
85,980
    $
80,450
    $
68,230
 
Franchise operations
   
17,301
     
16,661
     
15,763
 
Total segment profit
   
103,281
     
97,111
     
83,993
 
                         
Unallocated operating income
   
2,592
     
2,374
     
2,603
 
Marketing and advertising expenses
   
(11,406
)    
(10,925
)    
(10,076
)
General and administrative costs
   
(31,488
)    
(30,242
)    
(24,311
)
Depreciation and amortization expenses
   
(13,434
)    
(12,520
)    
(10,917
)
Pre-opening costs
   
(1,986
)    
(1,032
)    
(1,630
)
Interest expense, net
   
(1,154
)    
(790
)    
(1,159
)
Other income (expense)
   
10
     
358
     
37
 
Income from continuing operations before income tax expense
  $
46,415
    $
44,334
    $
38,540
 
                         
Capital expenditures:
                       
Company-owned steakhouse restaurants
  $
24,991
    $
18,934
    $
14,867
 
Corporate assets
   
1,220
     
1,133
     
1,097
 
Mitchell's Restaurants
   
-
     
225
     
1,401
 
Total capital expenditures
  $
26,211
    $
20,292
    $
17,365
 
 
 
 
 
December 25,
2016
 
 
December 27,
2015
 
 
December 28,
2014
 
   
(Dollar amounts in thousands)
 
Total assets:
                       
Company-owned steakhouse restaurants
  $
185,820
    $
168,766
    $
155,757
 
Franchise operations
   
2,707
     
2,444
     
2,151
 
Corporate assets - unallocated
   
9,021
     
7,828
     
16,711
 
Deferred income taxes - unallocated
   
9,924
     
19,309
     
28,829
 
Mitchell's Restaurants
   
-
     
250
     
15,119
 
Total assets
  $
207,472
    $
198,597
    $
218,567