Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.19.1
Segment Reporting
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment Reporting
Note 21 - Segment Reporting
 
The Company operates in three segments: “Owned restaurants,” “Owned food, beverage and other,” and “Managed and Licensed operations.” The Owned restaurants segment consists of leased restaurant locations and competes in the full-service dining industry. The Owned food, beverage and other segment consists of hybrid operations, such as where the Company has a leased restaurant location and also has a food and beverage agreement at the same location, typically a hotel, and offsite banquet offerings. The Managed and Licensed operations segment includes all operations for which a management, incentive or license fee is received. Management agreements generate management fees on net revenue and incentive fees on operating profit as defined in the applicable management agreement. License agreements generate revenue primarily through royalties earned on net revenue at each location. Revenues associated with developmental support for licensed locations are also included within this segment.
 
The Company’s Chief Executive Officer (“CEO”), who began serving as the Company’s CEO on October 30, 2017 and has been deemed the Company’s Chief Operating Decision Maker, manages the business and allocates resources via a combination of restaurant sales reports and segment profit information (which is defined as revenues less operating expenses) related to the Company’s three segments, or sources of revenues, which are presented in their entirety within the consolidated statements of operations and comprehensive income (loss).
 
The following tables show our operating results by segment for the periods indicated (in thousands):
 
 
 
For the year ended December 31, 2018
 
 
 
Owned 
restaurants
 
 
Owned food, 
beverage and

other
 
 
Managed and 
licensed

operations
 
 
Total
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Owned net revenues
 
$
65,896
 
 
$
8,137
 
 
$
 
 
$
74,033
 
Management, license and incentive fee revenue
 
 
 
 
 
 
 
 
11,568
 
 
 
11,568
 
Total revenues
 
 
65,896
 
 
 
8,137
 
 
 
11,568
 
 
 
85,601
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owned operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
17,220
 
 
 
 
 
 
 
 
 
17,220
 
Other operating expenses
 
 
39,599
 
 
 
 
 
 
 
 
 
39,599
 
Owned food, beverage and other expenses
 
 
 
 
 
7,865
 
 
 
 
 
 
7,865
 
Total owned operating expenses
 
 
56,819
 
 
 
7,865
 
 
 
 
 
 
64,684
 
Segment income
 
$
9,077
 
 
$
272
 
 
$
11,568
 
 
$
20,917
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,119
 
Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,824
 
Interest expense, net of interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,193
 
Equity in income of investee companies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(182
)
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,343
 
Income from continuing operations before provision for income taxes
 
 
 
 
 
 
 
 
 
 
 
 
 
$
4,620
 
  
 
 
For the year ended December 31, 2017
 
 
 
Owned

restaurants
 
 
Owned food,

beverage and

other
 
 
Managed and

licensed

operations
 
 
Total
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
Owned net revenues
 
$
58,654
 
 
$
10,227
 
 
$
 
 
$
68,881
 
Management, license and incentive fee revenue
 
 
 
 
 
 
 
 
10,779
 
 
 
10,779
 
Total revenues
 
 
58,654
 
 
 
10,227
 
 
 
10,779
 
 
 
79,660
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owned operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
15,544
 
 
 
 
 
 
 
 
 
15,544
 
Other operating expenses
 
 
37,076
 
 
 
 
 
 
 
 
 
37,076
 
Owned food, beverage and other expenses
 
 
 
 
 
9,400
 
 
 
 
 
 
9,400
 
Total owned operating expenses
 
 
52,620
 
 
 
9,400
 
 
 
 
 
 
62,020
 
Segment income
 
$
6,034
 
 
$
827
 
 
$
10,779
 
 
$
17,640
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,893
 
Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,051
 
Interest expense, net of interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,167
 
Equity in income of investee companies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(168
)
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,522
 
Loss from continuing operations before provision for income taxes
 
 
 
 
 
 
 
 
 
 
 
 
 
$
(3,825
)
 
The following tables show our total assets and capital asset additions by segment for the periods indicated (in thousands):
 
 
 
For the years ended December 31,
 
 
 
2018
 
 
2017
 
Total assets:
 
 
 
 
 
 
 
 
Owned restaurants
 
$
42,971
 
 
$
40,570
 
Owned food, beverage and other operations
(1)
 
 
7,274
 
 
 
7,385
 
Managed and licensed operations
 
 
5,734
 
 
 
5,060
 
Total
 
$
55,979
 
 
$
53,015
 
 
(1)
Includes corporate assets
 
 
 
For the years ended December 31,
 
 
 
2018
 
 
2017
 
Capital assets additions:
 
 
 
 
 
 
 
 
Owned restaurants
 
$
3,297
 
 
$
3,955
 
Owned food, beverage and other operations
(1)
 
 
805
 
 
 
655
 
Managed and licensed operations
 
 
 
 
 
 
Total
 
$
4,102
 
 
$
4,610
 
 
(1)
Includes corporate capital asset additions