DIVERSIFIED RESTAURANT HOLDINGS, INC., 10-Q filed on 8/13/2012
Quarterly Report
Document And Entity Information
6 Months Ended
Jun. 24, 2012
Aug. 13, 2012
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
Diversified Restaurant Holdings, Inc. 
 
Document Type
10-Q 
 
Current Fiscal Year End Date
--12-30 
 
Entity Common Stock, Shares Outstanding
 
18,945,400 
Amendment Flag
false 
 
Entity Central Index Key
0001394156 
 
Entity Current Reporting Status
Yes 
 
Entity Voluntary Filers
No 
 
Entity Filer Category
Smaller Reporting Company 
 
Entity Well-known Seasoned Issuer
No 
 
Document Period End Date
Jun. 24, 2012 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q2 
 
Consolidated Balance Sheets (Unaudited) (USD $)
Jun. 24, 2012
Dec. 25, 2011
Current assets
 
 
Cash and cash equivalents
$ 2,460,087 
$ 1,537,497 
Accounts receivable - other
159,703 
20,497 
Inventory
544,071 
601,765 
Prepaid assets
455,084 
207,608 
Total current assets
3,618,945 
2,367,367 
Deferred income taxes
119,982 
272,332 
Property and equipment, net - restricted assets of VIE
1,442,508 
1,457,770 
Property and equipment, net
22,901,799 
22,064,544 
Intangible assets, net
1,098,652 
1,113,997 
Other long-term assets
78,000 
74,389 
Total assets
29,259,886 
27,350,399 
Current liabilities
 
 
Accounts payable
1,374,675 
1,682,462 
Accrued compensation
708,275 
760,548 
Other accrued liabilities
578,288 
649,784 
Current portion of long-term debt (including VIE debt of $89,414)
2,434,668 
2,967,135 
Current portion of deferred rent
174,907 
180,480 
Total current liabilities
5,270,813 
6,240,409 
Deferred rent, less current portion
2,184,209 
1,750,017 
Other liabilities - interest rate swap
326,973 
613,999 
Long-term debt, less current portion (including VIE debt of $1,095,317 and $1,140,024, respectively)
19,081,489 
16,841,355 
Total liabilities
26,863,484 
25,445,780 
Stockholders' equity
 
 
Common stock - $0.0001 par value; 100,000,000 shares authorized; 18,945,400 and 18,936,400 shares, respectively, issued and outstanding
1,888 
1,888 
Additional paid-in capital
2,878,025 
2,771,077 
Accumulated other comprehensive loss
(215,802)
 
Retained earnings (accumulated deficit)
(691,920)
(1,253,831)
Total DRH stockholders' equity
1,972,191 
1,519,134 
Noncontrolling interest in VIE
424,211 
385,485 
Total stockholders' equity
2,396,402 
1,904,619 
Total liabilities and stockholders' equity
$ 29,259,886 
$ 27,350,399 
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)
Jun. 24, 2012
Dec. 25, 2011
VIE debt (in Dollars)
$ 89,414 
$ 89,414 
Common stock, par value (in Dollars per share)
$ 0.0001 
$ 0.0001 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
18,945,400 
18,936,400 
Common stock, shares outstanding
18,945,400 
18,936,400 
Current Debt [Member]
 
 
VIE debt (in Dollars)
89,414 
89,414 
Noncurrent Debt [Member]
 
 
VIE debt (in Dollars)
$ 1,095,317 
$ 1,140,024 
Consolidated Statements of Operations (Unaudited) (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Revenue
 
 
 
 
Food and beverage sales
$ 16,727,777 
$ 14,934,687 
$ 34,477,595 
$ 30,029,303 
Franchise royalties and fees
1,214 
 
1,214 
 
Total revenue
16,728,991 
14,934,687 
34,478,809 
30,029,303 
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
 
 
 
 
Food, beverage, and packaging
5,228,330 
4,195,695 
10,746,302 
8,447,327 
Labor
4,260,052 
3,706,536 
8,665,486 
7,460,208 
Occupancy
910,598 
780,432 
1,825,717 
1,563,877 
Other operating costs
3,356,113 
2,854,707 
6,778,292 
5,652,651 
General and administrative expenses
1,447,542 
1,192,579 
2,722,060 
2,308,641 
Pre-opening costs
218,615 
14,569 
266,486 
268,705 
Depreciation and amortization
957,357 
834,856 
1,930,415 
1,610,217 
Loss on disposal of property and equipment
6,603 
27,044 
6,603 
27,044 
Total operating expenses
16,385,210 
13,606,418 
32,941,361 
27,338,670 
Operating profit
343,781 
1,328,269 
1,537,448 
2,690,633 
Change in fair value of derivative instruments
(64,050)
(198,780)
(43,361)
(204,620)
Interest expense
(253,103)
(306,624)
(565,644)
(593,434)
Other income, net
13,966 
15,497 
47,739 
8,512 
Income before income taxes
40,594 
838,362 
976,182 
1,901,091 
Income tax provision
86,155 
351,497 
335,545 
661,485 
Net (loss) income
(45,561)
486,865 
640,637 
1,239,606 
Less: Income attributable to noncontrolling interest
(38,916)
(37,985)
(78,726)
(76,485)
Net (loss) income attributable to DRH
$ (84,477)
$ 448,880 
$ 561,911 
$ 1,163,121 
Basic (loss) earnings per share (in Dollars per share)
$ 0.00 
$ 0.02 
$ 0.03 
$ 0.06 
Fully diluted (loss) earnings per share (in Dollars per share)
$ 0.00 
$ 0.02 
$ 0.03 
$ 0.06 
Weighted average number of common shares outstanding
 
 
 
 
Basic (in Shares)
18,950,153 
18,876,000 
18,945,930 
18,876,000 
Diluted (in Shares)
19,115,453 
19,054,752 
19,078,126 
19,048,648 
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Net (loss) income
$ (45,561)
$ 486,865 
$ 640,637 
$ 1,239,606 
Other comprehensive (loss) income
 
 
 
 
Unrealized changes in fair value of cash flow hedge, net of tax of $111,171
(215,802)
 
(215,802)
 
Comprehensive (loss) income
(261,363)
486,865 
424,835 
1,239,606 
Less: Comprehensive (income) loss attributable to noncontrolling interest
(38,916)
(37,985)
(78,726)
(76,485)
Comprehensive (loss) income attributable to DRH
$ (300,279)
$ 448,880 
$ 346,109 
$ 1,163,121 
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 24, 2012
Unrealized changes in fair value of cash flow hedge, tax
$ 111,171 
$ 111,171 
Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) (USD $)
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Noncontrolling Interest [Member]
Total
Balance at Dec. 26, 2010
$ 1,888 
$ 2,631,304 
 
$ (3,096,017)
$ 338,640 
$ (124,185)
Balance (in Shares) at Dec. 26, 2010
18,876,000 
 
 
 
 
 
Net income
 
 
 
1,163,121 
76,485 
1,239,606 
Distributions from noncontrolling interest
 
 
 
 
(40,000)
(40,000)
Share-based compensation
 
43,962 
 
 
 
43,962 
Balances at Jun. 26, 2011
1,888 
2,675,266 
 
(1,932,896)
375,125 
1,119,383 
Balances (in Shares) at Jun. 26, 2011
18,876,000 
 
 
 
 
 
Balance at Dec. 25, 2011
1,888 
2,771,077 
 
(1,253,831)
385,485 
1,904,619 
Balance (in Shares) at Dec. 25, 2011
18,936,400 
 
 
 
 
18,936,400 
Net income
 
 
 
561,911 
78,726 
640,637 
Distributions from noncontrolling interest
 
 
 
 
(40,000)
(40,000)
Issuance of restricted shares (in Shares)
20,000 
 
 
 
 
 
Forfeitures of restricted shares (in Shares)
(11,000)
 
 
 
 
 
Share-based compensation
 
106,948 
 
 
 
106,948 
Other comprehensive loss
 
 
(215,802)
 
 
(215,802)
Balances at Jun. 24, 2012
$ 1,888 
$ 2,878,025 
$ (215,802)
$ (691,920)
$ 424,211 
$ 2,396,402 
Balances (in Shares) at Jun. 24, 2012
18,945,400 
 
 
 
 
18,945,400 
Consolidated Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Cash flows from operating activities
 
 
Net income
$ 640,637 
$ 1,239,606 
Adjustments to reconcile net income to net cash provided by operating activities
 
 
Depreciation and amortization
1,930,415 
1,610,217 
Write off of loan fees
103,934 
 
Loss on disposal of property and equipment
6,603 
27,043 
Share-based compensation
106,948 
43,962 
Change in fair value of derivative instruments
43,361 
204,620 
Deferred income taxes
263,521 
524,478 
Changes in operating assets and liabilities that provided (used) cash
 
 
Accounts receivable - other
(139,206)
(12,366)
Inventory
57,694 
(64,182)
Prepaid assets
(247,476)
8,377 
Other current assets
 
43,348 
Intangible assets
(102,458)
(87,195)
Other long-term assets
(3,611)
11,290 
Accounts payable
(307,787)
(668,594)
Accrued liabilities
(123,769)
175,505 
Deferred rent
428,619 
183,829 
Net cash provided by operating activities
2,657,425 
3,239,938 
Cash flows from investing activities
 
 
Purchases of property and equipment
(2,745,142)
(3,690,241)
Net cash used in investing activities
(2,745,142)
(3,690,241)
Cash flows from financing activities
 
 
Proceeds from issuance of long-term debt
17,699,404 
2,308,554 
Repayment of interest rate swap liability
(657,360)
 
Repayments of long-term debt
(15,991,737)
(1,067,978)
Distributions from noncontrolling interest
(40,000)
(40,000)
Net cash provided by financing activities
1,010,307 
1,200,576 
Net increase in cash and cash equivalents
922,590 
750,273 
Cash and cash equivalents, beginning of period
1,537,497 
1,358,381 
Cash and cash equivalents, end of period
$ 2,460,087 
$ 2,108,654 
Note 1 - Business and Summary of Significant Accounting Policies
Significant Accounting Policies [Text Block]
1.           BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Diversified Restaurant Holdings, Inc. ("DRH") is the owner, operator, and franchisor of the unique, full-service, ultra-casual restaurant and bar Bagger Dave's Legendary Burger Tavern® ("Bagger Dave's") and a leading Buffalo Wild Wings® ("BWW") franchisee. The original company was founded by T. Michael Ansley, President and CEO, in late 2004 as an operating center for seven BWW locations that Mr. Ansley owned and operated as a franchisee. DRH was formed on September 25, 2006, to provide the framework and financial flexibility to grow as a franchisee of BWW and to develop and grow our unique Bagger Dave's restaurant concept. It became a publicly-traded company in 2008 as a result of a self-underwritten initial public offering. DRH and its wholly-owned subsidiaries, including AMC Group, Inc, ("AMC"), AMC Wings, Inc. ("WINGS"), and AMC Burgers, Inc. ("BURGERS"), develop, own, and operate Bagger Dave's and BWW restaurants located throughout Michigan and Florida.

DRH created the Bagger Dave’s concept, brand, menu, and business plan throughout 2006 and 2007 and launched its first store in January 2008. DRH received licensing approval to franchise Bagger Dave's in the states of Michigan, Ohio, Indiana, Illinois, Wisconsin, Kentucky, and Missouri in 2010. The Company doubled the number of Bagger Dave’s stores in 2011 and, as of August 13, 2012, there were seven corporate-owned Bagger Dave’s restaurants operating in the Greater Detroit region of Michigan, with three additional corporate-owned restaurants under development and scheduled to open in 2012. In November 2011, DRH executed its first area development agreement to franchise six stores in the Midwest. The first franchised unit opened on June 10, 2012. For more information, please visit www.baggerdaves.com.

DRH is also a leading BWW franchisee and, as of August 13, 2012, operated 22 BWW restaurants (14 in Michigan and eight in Florida), with three under construction and scheduled to open in 2012.  Mr. Ansley opened his first affiliated BWW in December 1999 and, since then, has received numerous awards from Buffalo Wild Wings, Inc. ("BWWI") including awards for the Highest Annual Restaurant Sales in 2004, 2005, and 2006, and in September 2007, Mr. Ansley was awarded Franchisee of the Year by the International Franchise Association ("IFA"). The IFA's membership consists of over 12,000 franchisee members and over 1,000 franchisor members. DRH remains on track to fulfill its Area Development Agreement, which requires a total of 32 BWW restaurants by 2017, or an additional 16 restaurants over the next five years.

The following organizational chart outlines the corporate structure of DRH and its wholly-owned subsidiaries, all of which are wholly-owned by the Company.  A brief textual description of the entities follows the organizational chart.

AMC was formed on March 28, 2007 and serves as the operational and administrative center for DRH. AMC renders management and advertising services to WINGS and its subsidiaries and BURGERS and its subsidiaries.  Services rendered by AMC include marketing, restaurant operations, restaurant management consultation, hiring and training of management and staff, and other management services reasonably required in the ordinary course of restaurant operations.

WINGS was formed on March 12, 2007 and serves as a holding company for its BWW restaurants. WINGS, through its subsidiaries, holds 22 BWW restaurants that are currently in operation.  The Company is economically dependent on retaining its franchise rights with BWWI. The franchise agreements committed to have specific initial term expiration dates ranging from January 29, 2014 through June 29, 2032, depending on the date each was executed and the duration of its initial term. The franchise agreements are renewable at the option of the franchisor and are generally renewable if the franchisee has complied with the franchise agreement. When factoring in any applicable renewals, the franchise agreements have specific expiration dates ranging from January 29, 2019 through June 29, 2047. The Company believes it is in compliance with the terms of these agreements at June 24, 2012.  The Company is under contract with BWWI to enter into 13 additional franchise agreements by 2017 (see Note 10 for details).  

BURGERS was formed on March 12, 2007 and serves as a holding company for its Bagger Dave's restaurants. Bagger Dave's Franchising Corporation, a subsidiary of BURGERS, was formed to act as the franchisor for the Bagger Dave's concept and has rights to franchise in the states of Michigan, Ohio, Indiana, Illinois, Wisconsin, Kentucky, and Missouri.  In November 2011, DRH executed its first area development agreement to franchise six stores in the Midwest; the first franchised unit opened on June 10, 2012. 

Principles of Consolidation

The consolidated financial statements include the accounts of DRH, its wholly-owned subsidiaries, and Ansley Group, LLC (collectively, the "Company"), a real estate entity under common control which is consolidated in accordance with Financial Accounting Standards Board ("FASB") guidance related to variable interest entities.  All significant intercompany accounts and transactions have been eliminated upon consolidation.

We consolidate all variable-interest entities (“VIE”) where we are the primary beneficiary.  For VIE, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIE.  The primary beneficiary of a VIE is the party that has the power to direct the activities that most significantly impact the performance of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity.  We consolidated Ansley Group, LLC because we lease and maintain substantially all of its assets to operate our Clinton Township, Michigan BWW restaurant and we guarantee all of its debt.

Basis of Presentation

The consolidated financial statements as of June 24, 2012 and December 25, 2011, and for the three-month and six-month periods ended June 24, 2012 and June 26, 2011, have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial information as of June 24, 2012 and for the three-month and six-month periods ended June 24, 2012 and June 26, 2011 is unaudited, but, in the opinion of management, reflects all adjustments and accruals necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods.

The financial information as of December 25, 2011 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 25, 2011, which is included in Item 8 in the Fiscal 2011 Annual Report on Form 10-K, and should be read in conjunction with such financial statements.

The results of operations for the three-month and six-month periods ended June 24, 2012 are not necessarily indicative of the results of operations that may be achieved for the entire year ending December 30, 2012.

Fiscal Year

The Company utilizes a 52- or 53-week accounting period that ends on the last Sunday in December. This quarterly report on Form 10-Q is for the three-month period ended June 24, 2012 and June 26, 2011, each comprising 13 weeks.

Concentration Risks

Approximately 75% and 76% of the Company's revenues during the three months ended June 24, 2012 and June 26, 2011, respectively, are generated from food and beverage sales from restaurants located in Michigan.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period.  Actual results could differ from those estimates.

Interest Rate Swap Agreements

The Company utilizes interest rate swap agreements with a bank to fix interest rates on a portion of the Company’s portfolio of variable rate debt, which reduces exposure to interest rate fluctuations.  The Company does not use any other types of derivative financial instruments to hedge such exposures, nor does it use derivatives for speculative purposes.

Prior to the debt restructure on April 2, 2012 (see Note 2 and Note 6 for details), the interest rate swap agreements did not qualify for hedge accounting. As such, the Company recorded the change in the fair value of the swap agreements in change in fair value of derivative instruments on the consolidated statements of operations. The interest rate swap agreement associated with the 2012 debt restructure does qualify for hedge accounting. As such, the Company recorded the change in the fair value of the swap agreement associated with the 2012 debt restructure as a component of accumulated other comprehensive income (loss), net of tax. The Company records the fair value of its interest rate swaps on the balance sheet in other assets or other liabilities depending on the fair value of the swaps. See Note 6 and Note 12 for additional information on the interest rate swap agreements.  

Recent Accounting Pronouncements

None.

Reclassifications

Certain reclassifications have been made to the prior year consolidated financial statements to conform to the current year's presentation.

Note 2 - Significant Business Transactions
Schedule Of Significant Business Transactions [Text Block]
2.           SIGNIFICANT BUSINESS TRANSACTIONS

On June 7, 2011, the Company, together with its wholly-owned subsidiaries, entered into a First Amended and Restated Development Line of Credit Agreement (the "DLOC Agreement") with RBS, N.A. ("RBS").  The DLOC Agreement provides for an $8 million credit facility with RBS (the "Credit Facility").  The Credit Facility consists of a new $7 million development line of credit (“DLOC”) and a $1 million revolving line of credit (“Revolving Line of Credit”). The Credit Facility is secured by a senior lien on all Company assets.  The DLOC is for a term of 18 months (the “Draw Period”) and amounts borrowed bear interest at between 3% - 4% over LIBOR as adjusted monthly, depending on the Lease Adjusted Leverage Ratio (as defined in the DLOC). The DLOC has a maturity date of June 7, 2018. The Company also secured a $1 million Revolving Line of Credit, which has a maturity date of June 7, 2012.  Advances on the Company’s Revolving Line of Credit must be repaid within ninety consecutive days.

On April 2, 2012, the Company, together with its wholly-owned subsidiaries, entered into a $16 million senior secured term loan (“2012 Term Loan”), secured by a senior lien on all Company assets. The Company used approximately $15.7 million of the 2012 Term Loan to repay substantially all of its outstanding senior debt and related interest rate swap liabilities and the remaining $0.3 million for working capital. The 2012 Term Loan is for a term of seven years and bears interest at one-month LIBOR plus a LIBOR Margin (as defined in the agreement) which ranges from 2.50% to 3.40%, depending on the Company’s lease adjusted leverage ratio. Simultaneously, the Company entered into an interest rate swap agreement to fix the interest on the 2012 Term Loan. The notional amount of the swap agreement is $16 million at inception and amortizes to $0 at maturity in March 2019. Under the swap agreement, the Company pays a fixed rate of 1.41% and receives interest at the one-month LIBOR. Principal and interest payments on the 2012 Term Loan are amortized over seven years, with monthly principal payments of approximately $191 thousand plus accrued interest.

Note 3 - Property and Equipment
Property, Plant and Equipment Disclosure [Text Block]
3.           PROPERTY AND EQUIPMENT

Property and equipment are comprised of the following assets:

   
June 24
2012
   
December 25
2011
 
Land
 
$
469,680
   
$
469,680
 
Land (restricted assets of VIE)
   
520,000
     
520,000
 
Building
   
2,745,296
     
2,745,296
 
Building (restricted assets of VIE)
   
1,570,967
     
1,570,967
 
Equipment
   
11,134,942
     
10,596,964
 
Furniture and fixtures
   
3,149,555
     
3,060,014
 
Leasehold improvements
   
19,797,455
     
19,148,471
 
Restaurant construction in progress
   
1,403,110
     
-
 
Total
   
40,791,005
     
38,111,392
 
Less accumulated depreciation
   
(15,798,239)
     
(13,955,881
)
Less accumulated depreciation (restricted assets of VIE)
   
(648,459)
     
(633,197
)
Property and equipment, net
 
$
24,344,307
   
$
23,522,314
 

Note 4 - Intangibles
Intangible Assets Disclosure [Text Block]
4.           INTANGIBLES

 Intangible assets are comprised of the following:

   
June 24
2012
   
December 25
2011
 
Amortized intangibles:
           
Franchise fees
 
$
308,750
   
$
303,750
 
Trademark
   
34,388
     
30,852
 
Loan fees
   
23,100
     
164,429
 
Total
   
366,238
     
499,031
 
Less accumulated amortization
   
(88,745
)
   
(112,271
)
Amortized intangibles, net
   
277,493
     
386,760
 
                 
Unamortized intangibles:
               
Liquor licenses
   
821,159
     
727,237
 
Total intangibles, net
 
$
1,098,652
   
$
1,113,997
 

Amortization expense for the three months ended June 24, 2012 and June 26, 2011 was $4,278 and $9,705, respectively.  Amortization expense for the six months ended June 24, 2012 and June 26, 2011 was $13,869 and $19,430, respectively.  Based on the current intangible assets and their estimated useful lives, amortization expense for fiscal years 2012, 2013, 2014, 2015, and 2016 is projected to total approximately $17,800 per year.  In conjunction with the 2012 Term Loan (see Note 2 for additional information), loan fees written off to interest expense for both the three- and six- month periods ended June 24, 2012 were $103,934 and $103,934, respectively.

Note 5 - Related Party Transactions
Related Party Transactions Disclosure [Text Block]
5.           RELATED PARTY TRANSACTIONS

The 2010 acquisition of certain affiliates was accomplished by issuing unsecured promissory notes to each selling shareholder that bore interest at 6% per year, had an original maturity date of February 1, 2016, and were payable in quarterly installments of approximately $157,000, with principal and interest fully amortized over six years.  At March 25, 2012 and December 25, 2011, these notes had an outstanding balance of $2,118,535 and $2,254,657, respectively.  On April 2, 2012, in conjunction with the 2012 Term Loan (see Note 6 for details), these promissory notes were paid in full.   

Fees for monthly accounting and financial statement compilation services are paid to an entity owned by a director and stockholder of the Company. Fees paid during the three months ended June 24, 2012 and June 26, 2011, respectively, were $89,811 and $82,730. Fees paid during the six months ended June 24, 2012 and June 26, 2011 were $182,658 and $152,085, respectively.

Prior to the 2012 Term Loan (see Note 6 for details), current debt included a promissory note to a DRH stockholder in the amount of $250,000.  The note was a demand note that did not require principal or interest payments.  Interest was accrued at 8% per annum and was compounded quarterly.  On April 2, 2012, in conjunction with the 2012 Term Loan (see Note 6 for details), this promissory note was paid in full.

See Note 9 for related party operating lease transactions.

Note 6 - Long-Term Debt
Long-term Debt [Text Block]
6.           LONG-TERM DEBT

Long-term debt consists of the following obligations:

   
June 24
2012
   
December 25
2011
 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal payments are approximately $191,000 plus interest through maturity in April 2019. Interest is charged based on a variable rate of one-month LIBOR plus LIBOR margin (which ranges between 2.50% and 3.40%) and a 1.41% fixed-rate swap arrangement.  The rate at June 24, 2012 was approximately 4.40%.
 
$
15,619,048
   
$
-
 
                 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal and interest payments were approximately $113,000 through maturity in May 2017. Interest was charged based on a swap arrangement designed to yield a fixed annual rate of 7.10%. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
   
 
7,326,128
 
                 
Note payable to a bank secured by a senior mortgage on the Brandon Property and a personal guaranty. Scheduled monthly principal and interest payments are approximately $8,000 through maturity in June 2030, at which point a balloon payment of $413,550 is due. Interest is charged based on a fixed rate of 6.72%, per annum, through June 2017, at which point the rate will adjust to the U.S. Treasury Securities Rate plus 4% (and will adjust every seven years thereafter).
   
1,112,645
     
1,122,413
 
                 
Note payable to a bank secured by a junior mortgage on the Brandon Property. Matures in 2030 and requires monthly principal and interest installments of approximately $6,300 until maturity. Interest is charged at a rate of 3.58% per annum.
   
865,987
     
882,769
 
                 
Note payable to a bank, secured by a senior lien on all company assets. Scheduled interest payments are charged at a rate of 3% over the 30-day LIBOR (the rate at June 24, 2012 was approximately 3.25%). In November 2011, a DLOC converted this into a term loan. The monthly interest payment approximates $6,500. The note will mature in May 2017. The DLOC includes a carrying cost of .25% per year of any available but undrawn amounts.
   
2,729,456
     
1,030,052
 
                 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal and interest payments were approximately $19,500 through maturity in May 2017. Interest was charged based on a swap arrangement designed to yield a fixed annual rate of 5.91%. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
1,195,853
 
                 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal and interest payments were approximately $40,000 through maturity in May 2017. Interest was charged based on a swap arrangement designed to yield a fixed annual rate of 6.35%. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
2,602,375
 
                 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal and interest payments were approximately $24,500 through maturity in May 2017. Interest was charged based on a swap arrangement designed to yield a fixed annual rate of 6.35%. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
1,676,000
 
                 
Unsecured note payable that originally matured in August 2013 and required monthly principal and interest installments of approximately $2,200, with the balance due at maturity. Interest was 7% per annum. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
231,940
 
                 
Note payable to Ford Credit secured by a vehicle purchased by Flyer Enterprises, Inc. to be used in the operation of the business. This is an interest-free loan under a promotional 0% rate. Scheduled monthly principal payments are approximately $430. The note matures in April 2013.
   
4,291
     
6,864
 
                 
Notes payable – variable interest entity. Note payable to a bank secured by a senior mortgage on the property located at 15745 Fifteen Mile Road, Clinton Township, Michigan 48035, a DRH corporate guaranty, and a personal guaranty. Scheduled monthly principal and interest payments are approximately $12,000 through maturity in 2025. Interest is charged at a rate of 4% over the 30-day LIBOR (the rate at June 24, 2012 was approximately 4.25%).
   
1,184,730
     
1,229,439
 
                 
Notes payable – related parties. These notes were repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
2,504,657
 
                 
Total long-term debt
   
21,516,157
     
19,808,490
 
                 
Less current portion (includes VIE debt of $89,414)
   
(2,434,668
)
   
(2,967,135
)
                 
Long-term debt, net of current portion
 
$
19,081,489
   
$
16,841,355
 

On April 2, 2012, the Company, together with its wholly-owned subsidiaries, entered into a $16 million senior secured term loan (“2012 Term Loan”), secured by a senior lien on all Company assets. The Company used approximately $15.7 million of the 2012 Term Loan to repay substantially all of its outstanding senior debt and interest rate swap liabilities and the remaining $0.3 million for working capital. The 2012 Term Loan is for a term of seven years and bears interest at one-month LIBOR plus a LIBOR Margin (as defined in the agreement) which ranges from 2.50% to 3.40%, depending on the Company’s lease adjusted leverage ratio. Simultaneously, the Company entered into an interest rate swap agreement to fix the interest on the 2012 Term Loan. The notional amount of the swap agreement is $16 million at inception and amortizes to $0 at maturity in March 2019. Under the swap agreement, the Company pays a fixed rate of 1.41% and receives interest at the one-month LIBOR. Principal and interest payments on the 2012 Term Loan are amortized over seven years, with monthly principal payments of approximately $191 thousand plus accrued interest.

Scheduled principal maturities of long-term debt for the next five calendar years, and thereafter, are summarized as follows:

Year
 
Amount
 
2013
 
$
2,434,668
 
2014
   
2,823,012
 
2015
   
2,825,874
 
2016
   
2,828,698
 
2017
   
2,832,066
 
Thereafter
   
7,771,839
 
Total
 
$
21,516,157
 

Interest expense was $253,103 and $306,624 (including related party interest expense of $10,593 and $45,291) for the three months ended June 24, 2012 and June 26, 2011, respectively. Interest expense was $565,644 and $593,434 (including related party interest expense of $52,724 and $102,371) for the six months ended June 24, 2012 and June 26, 2011, respectively.

The above agreements contain various customary financial covenants generally based on the performance of the specific borrowing entity and other related entities.  The more significant covenants consist of a minimum debt service coverage ratio and a maximum lease adjusted leverage ratio, both of which we are in compliance with as of June 24, 2012.

The fair value liability of the swap agreements was $326,973 and $613,999 at June 24, 2012 and December 25, 2011, respectively.  The decrease in fair value liability of the swap agreements was directly related to the 2012 Term Loan, in which three old swaps were terminated and one new swap was entered into.  The change in fair value of derivative instruments in the Consolidated Statements of Operations represents the changes in the fair value of the interest rate swap agreements that were terminated in conjunction with the 2012 Term Loan, as these swap agreements did not qualify for hedge accounting.

Note 7 - Capital Stock (Including Purchase Warrants and Options)
Stockholders' Equity Note Disclosure [Text Block]
7.           CAPITAL STOCK (INCLUDING PURCHASE WARRANTS AND OPTIONS)

In 2011, the Company established the Stock Incentive Plan of 2011 (“Stock Incentive Plan”) to attract and retain directors, consultants, and employees and to more fully align their interests with the interests of the Company’s shareholders through the opportunity for increased stock ownership.  The plan permits the grant and award of 750,000 shares of common stock by way of stock options and/or restricted stock.  Stock options must be awarded at exercise prices at least equal to or greater than 100% of the fair market value of the shares on the date of grant.  The options will expire no later than 10 years from the date of grant, with vesting terms to be defined at grant date, ranging from a vesting schedule based on performance to a vesting schedule that extends over a period of time as selected by the Compensation Committee of the Board of Directors or other committee as determined by the Board (the “Committee”).  The Committee also determines the grant, issuance, retention, and vesting timing and conditions of awards of restricted stock.  The Committee may place limitations, such as continued employment, passage of time, and/or performance measures, on restricted stock.  Awards of restricted stock may not provide for vesting or settlement in full of restricted stock over a period of less than one year from the date the award is made.  The Stock Incentive Plan was approved by our shareholders on May 26, 2011.

During fiscal 2011 and on March 1, 2012, restricted shares were issued to certain employees at a weighted-average grant date fair value of $5.00 and $3.10, respectively. Restricted shares are granted with a per share purchase price at 100% of the fair market value on the date of grant. Stock-based compensation expense will be recognized over the expected vesting period in an amount equal to the fair market value of such awards on the date of grant.

The following table presents the restricted shares transactions as of June 24, 2012:

   
Number of Restricted
Stock Shares
 
Unvested, December 25, 2011
   
60,800
 
Granted
   
20,000
 
Vested
   
-
 
Expired/Forfeited
   
(11,000
)
Unvested, June 24, 2012
   
69,800
 

The following table presents the restricted shares transactions as of June 26, 2011:

   
Number of Restricted
Stock Shares
 
Unvested, December 26, 2010
   
-
 
Granted
   
-
 
Vested
   
-
 
Expired/Forfeited
   
-
 
Unvested, June 26, 2011
   
-
 

Under the Stock Incentive Plan, there are 680,200 shares available for future awards at June 24, 2012.

On July 30, 2007, DRH granted options for the purchase of 150,000 shares of common stock to the directors of the Company. These options vest ratably over a three-year period and expire six years from issuance. At June 24, 2012, these options are fully vested and can be exercised at a price of $2.50 per share.

On July 31, 2010, prior to the Stock Incentive Plan, DRH granted options for the purchase of 210,000 shares of common stock to the directors of the Company.  These options vest ratably over a three-year period and expire six years from issuance.  Once vested, the options can be exercised at a price of $2.50 per share.

Stock-based compensation of $53,815 and $21,981 was recognized, during the three-month period ended June 24, 2012 and June 26, 2011, respectively, as compensation cost in the consolidated statements of operations and as additional paid-in capital on the consolidated statement of stockholders' equity to reflect the fair value of shares vested. Stock-based compensation for the six-months ended June 24, 2012 and June 26, 2011, respectively, was $106,948 and $43,962.  The fair value of stock options is estimated using the Black-Scholes model.  The fair value of unvested shares is $87,926 as of June 24, 2012.  The fair value of the unvested shares will be amortized ratably over the remaining vesting term.  The valuation methodology used an assumed term based upon the stated term of three years and a risk-free rate of return represented by the U.S. 5-year Treasury Bond rate and volatility factor based on guidance as defined in FASB ASC 718, Compensation–Stock Compensation.  A dividend yield of 0% was used because the Company has never paid a dividend and does not anticipate paying dividends in the reasonably foreseeable future. 

In October 2009, one member of the Board of Directors exercised 6,000 vested options at a price of $2.50 per share.  Consequently, at June 24, 2012, 354,000 shares of authorized common stock are reserved for issuance to provide for the exercise of the Company’s stock options.

The Company has authorized 10,000,000 shares of preferred stock at a par value of $0.0001.  No preferred shares are issued or outstanding as of June 24, 2012.  Any preferences, rights, voting powers, restrictions, dividend limitations, qualifications, and terms and conditions of redemption shall be set forth and adopted by a Board of Directors' resolution prior to issuance of any series of preferred stock.

Note 8 - Income Taxes
Income Tax Disclosure [Text Block]
8.           INCOME TAXES

The provision for income taxes consists of the following components for the three-month and six-month periods ended June 24, 2012 and June 26, 2011, respectively:

   
Three Months Ended
   
Six Months Ended
 
   
June 24
2012
   
June 26
2011
   
June 24
2012
   
June 26
2011
 
Federal:
                       
      Current
                       
      Deferred
  $ 29,088     $ 203,394     $ 246,794     $ 427,382  
                                 
State:
                               
      Current
    6,437       104,299       72,025       137,006  
      Deferred
    50,630       43,804       16,726       97,097  
                                 
Income tax provision
  $ 86,155     $ 351,497     $ 335,545     $ 661,485  

The provision for income taxes is different from that which would be obtained by applying the statutory federal income tax rate to loss before income taxes.  The items causing this difference are as follows:

   
June 24
2012
   
June 26
2011
 
Income tax provision at federal statutory rate
  $ 331,904     $ 646,371  
State income tax provision
    88,752       234,104  
Permanent differences
    81,092       50,559  
Tax credits
    (283,164 )     (211,257 )
Other
    116,961       (58,292 )
Income tax provision
  $ 335,545     $ 661,485  

The Company’s income tax provision for the six months ended June 24, 2012 varies from the provision using the statutory rate due primarily to provision to return adjustments.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  The Company expects the deferred tax assets to be fully realizable within the next several years. Significant components of the Company's deferred income tax assets and liabilities are summarized as follows:

   
June 24
2012
   
December 25
2011
 
Deferred tax assets:
           
Net operating loss carry forwards
  $ 980,694     $ 1,861,906  
Deferred rent expense
    17,307       50,471  
Start-up costs
    108,279       135,535  
Tax credit carry forwards
    1,419,109       1,089,561  
Other - including state deferred tax assets
    345,480       393,713  
Total deferred tax assets
    2,870,869       3,531,186  
                 
Deferred tax liabilities:
               
Other
    -       -  
Tax depreciation in excess of book
    2,750,887       3,258,854  
Total deferred tax liabilities
    2,750,887       3,258,854  
                 
Net deferred income tax asset
  $ 119,982     $ 272,332  

If deemed necessary by management, the Company establishes valuation allowances in accordance with the provisions of FASB ASC 740 ("ASC 740"), "Income Taxes".  Management continually reviews realizability of deferred tax assets and the Company recognizes these benefits only as reassessment indicates that it is more likely than not that such tax benefits will be realized.

The Company expects to use net operating loss and general business tax credit carryforwards before its 20-year expiration.  A significant amount of net operating loss carry forwards were used when the Company purchased nine affiliated restaurants in 2010, which were previously managed by DRH.  Federal net operating loss carry forwards of $1,616,146, $28,290, $8,134, and $734,523 will expire in 2031, 2030, 2029 and 2028, respectively.  General business tax credits of $283,164, $638,769, $335,621, $86,678, $59,722, and $46,144 will expire in 2032, 2031, 2030, 2029, 2028 and 2027, respectively.

The Company applies the provisions of ASC 740 regarding the accounting for uncertainty in income taxes.  There are no amounts recorded on the Company's consolidated financial statements for uncertain positions.  The Company classifies all interest and penalties as income tax expense.  There are no accrued interest amounts or penalties related to uncertain tax positions as of June 24, 2012.

The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions.

Note 9 - Operating Leases (Including Related Party)
Operating Leases of Lessee Disclosure [Table Text Block]
9.           OPERATING LEASES (INCLUDING RELATED PARTY

Lease terms range from four to 15 years, generally include renewal options, and frequently require us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs. Some restaurant leases provide for contingent rental payments based on sales thresholds.

Total rent expense was $733,124 and $650,736 for the three-month periods ended June 24, 2012 and June 26, 2011, respectively (of which $23,358 and $22,529, respectively, were paid to a related party).  Total rent expense was $1,446,967 and $1,264,047  for the six-month periods ended June 24, 2012 and June 26, 2011, respectively (of which $46,717 and $43,400, respectively, were paid to a related party).

Scheduled future minimum lease payments for each of the five years and thereafter for non-cancelable operating leases with initial or remaining lease terms in excess of one year at June 24, 2012 are summarized as follows:

Year
 
Amount
 
2013
 
$
3,115,720
 
2014
   
3,179,481
 
2015
   
3,011,402
 
2016
   
2,847,430
 
2017
   
2,466,779
 
Thereafter
   
7,053,552
 
Total
 
$
21,674,364
 

Note 10 - Commitments and Contingencies
Commitments and Contingencies Disclosure [Text Block]
10.           COMMITMENTS AND CONTINGENCIES

The Company assumed, from a related entity, an "Area Development Agreement" with BWWI in which the Company undertakes to open 23 BWW restaurants within its designated "development territory", as defined by the agreement, by October 1, 2016.  On December 12, 2008, this agreement was amended, adding nine additional restaurants and extending the date of fulfillment to March 1, 2017.  Failure to develop restaurants in accordance with the schedule detailed in the agreement could lead to potential penalties of $50,000 for each undeveloped restaurant, payment of the initial franchise fees for each undeveloped restaurant, and loss of rights to development territory.  As of June 24, 2012, of the 32 restaurants required to be opened under the Area Development Agreement, 16 of these restaurants had been opened for business.  An additional six restaurants not part of this Area Development Agreement were also opened for business as of June 24, 2012. 

The Company is required to pay BWWI royalties (5% of net sales) and advertising fund contributions (3% of net sales) for the term of the individual franchise agreements.  The Company incurred $728,432 and $677,300 in royalty expense for the three-month periods ended June 24, 2012 and June 26, 2011, respectively and $1,508,618 and $1,378,264 for the six-month periods ended June 24, 2012 and June 26, 2011.  Advertising fund contribution expenses were $443,780 and $432,928 for the three-month periods ended June 24, 2012 and June 26, 2011, respectively, and $905,440 and $848,968 for the six-month periods ended June 24, 2012 and June 26, 2011, respectively.

The Company is required, by its various BWWI franchise agreements, to modernize the restaurants during the term of the agreements.  The individual agreements generally require improvements between the fifth year and the tenth year to meet the most current design model that BWWI has approved.  The modernization costs can range from approximately $50,000 to approximately $500,000 depending on the individual restaurants’ needs.

The Company is subject to ordinary, routine, legal proceedings, as well as demands, claims and threatened litigation, which arise in the ordinary course of its business.  The ultimate outcome of any litigation is uncertain.  While unfavorable outcomes could have adverse effects on the Company's business, results of operations, and financial condition, management believes that the Company is adequately insured and does not believe that any pending or threatened proceedings would adversely impact the Company's results of operations, cash flows, or financial condition.  Therefore, no separate reserve has been established for these types of legal proceedings.

Note 11 - Supplemental Cash Flows Information
Cash Flow, Supplemental Disclosures [Text Block]
11.            SUPPLEMENTAL CASH FLOWS INFORMATION

Other Cash Flows Information

Cash paid for interest was $254,968 and $306,624 during the three-month periods ended June 24, 2012 and June 26, 2011, respectively, and $515,898 and $593,434 for the six-month periods ended June 24, 2012 and June 26, 2011, respectively.

Cash paid for income taxes was $85,000 and $37,943 during the three-month periods ended June 24, 2012 and June 26, 2011, respectively, and $213,000 and $74,446 for the six-month periods ended June 24, 2012 and June 26, 2011, respectively.

Note 12 - Fair Value of Financial Instruments
Fair Value Disclosures [Text Block]
12.           FAIR VALUE OF FINANCIAL INSTRUMENTS

The guidance for fair value measurements, ASC 820 Fair Value Measurements and Disclosures, establishes the authoritative definition of fair value, sets out a framework for measuring fair value, and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three-tier fair value hierarchy based upon observable and non-observable inputs as follows:

●
Level 1
Quoted market prices in active markets for identical assets and liabilities;
●
Level 2
Inputs, other than level 1 inputs, either directly or indirectly observable; and
●
Level 3
Unobservable inputs developed using internal estimates and assumptions (there is little or no market data) which reflect those that market participants would use.

As of June 24, 2012 and December 25, 2011, respectively, our financial instruments consisted of cash equivalents, accounts payable, and debt. The fair value of cash equivalents, accounts payable and short-term debt approximate its carrying value, due to its short-term nature.

The fair value of our interest rate swaps is determined based on valuation models, which utilize quoted interest rate curves to calculate the forward value and then discount the forward values to the present period. The Company measures the fair value using broker quotes which are generally based on market observable inputs including yield curves and the value associated with counterparty credit risk. Our interest rate swaps are classified as a Level 2 measurement as these securities are not actively traded in the market, but are observable based on transactions associated with bank loans with similar terms and maturities.

There were no transfers between levels of the fair value hierarchy during the three months ended June 24, 2012 and the fiscal year ended December 25, 2011, respectively.

The following table presents the fair values for those assets and liabilities measured on a recurring basis as of June 24, 2012:

FAIR VALUE MEASUREMENTS
 
Description
 
Level 1
   
Level 2
   
Level 3
   
Total
   
Asset/(Liability)
Total
 
Interest Rate Swaps
 
$
—
   
$
(326,973
)
 
$
—
   
$
(326,973
)
 
$
(326,973
)

The following table presents the fair values for those assets and liabilities measured on a recurring basis as of December 25, 2011:

FAIR VALUE MEASUREMENTS
 
Description
 
Level 1
   
Level 2
   
Level 3
   
Total
   
Asset/(Liability)
Total
 
Interest Rate Swaps
 
$
—
   
$
(613,999
)
 
$
—
   
$
(613,999
)
 
$
(613,999
)

As of June 24, 2012, our total debt, was approximately $21.5 million and had a fair value of approximately $15.8 million. The Company did not have any related party debt as of June 24, 2012; this debt was paid in full in conjunction with the 2012 Term Loan (see Note 6 for details).  As of December 25, 2011, our total debt, less related party debt, was approximately $17.3 million and had a fair value of approximately $15.2 million. Related party debt as of December 25, 2011 was approximately $2.5 million and had a fair value of approximately $2.6 million.  The Company estimates the fair value of its fixed-rate debt using discounted cash flow analysis based on the Company’s incremental borrowing rate.

Accounting Policies, by Policy (Policies)
3 Months Ended
Jun. 24, 2012
Consolidation, Policy [Policy Text Block]
Principles of Consolidation The consolidated financial statements include the accounts of DRH, its wholly-owned subsidiaries, and Ansley Group, LLC (collectively, the "Company"), a real estate entity under common control which is consolidated in accordance with Financial Accounting Standards Board ("FASB") guidance related to variable interest entities. All significant intercompany accounts and transactions have been eliminated upon consolidation. We consolidate all variable-interest entities ("VIE") where we are the primary beneficiary.For VIE, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIE.The primary beneficiary of a VIE is the party that has the power to direct the activities that most significantly impact the performance of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity.We consolidated Ansley Group, LLC because we lease and maintain substantially all of its assets to operate our Clinton Township, Michigan BWW restaurant and we guarantee all of its debt. 
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation The consolidated financial statements as of June 24, 2012 and December 25, 2011, and for the three-month and six-month periods ended June 24, 2012 and June 26, 2011, have been prepared by the Company pursuant to accounting principles generally accepted in the United States of America ("GAAP") and the rulesand regulations of the Securities and Exchange Commission ("SEC"). The financial information as of June 24, 2012 and for the three-month and six-month periods ended June 24, 2012 and June 26, 2011 is unaudited, but, in the opinion of management, reflects all adjustments and accruals necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods. The financial information as of December 25, 2011 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 25, 2011, which is included in Item 8 in the Fiscal 2011 Annual Report on Form10-K, and should be read in conjunction with such financial statements. The results of operations for the three-month and six-month periods ended June 24, 2012 are not necessarily indicative of the results of operations that may be achieved for the entire year ending December30, 2012. 
Fiscal Period, Policy [Policy Text Block]
Fiscal Year The Company utilizes a 52- or 53-week accounting period that ends on the last Sunday in December. This quarterly report on Form 10-Q is for the three-month period ended June 24, 2012 and June 26, 2011, each comprising 13 weeks. 
Concentration Risk, Credit Risk, Policy [Policy Text Block]
Concentration Risks Approximately 75% and 76% of the Company's revenues during the three months ended June 24, 2012 and June 26, 2011, respectively, are generated from food and beverage sales from restaurants located in Michigan. 
Use of Estimates, Policy [Policy Text Block]
Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclose contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period.Actual results could differ from those estimates. 
Derivatives, Policy [Policy Text Block]
Interest Rate Swap Agreements The Company utilizes interest rate swap agreements with a bank to fix interest rates on a portion of the Company's portfolio of variable rate debt, which reduces exposure to interest rate fluctuations.The Company does not use any other types of derivative financial instruments to hedge such exposures, nor does it use derivatives for speculative purposes. Prior to the debt restructure on April 2, 2012 (see Note 2 and Note 6 for details), the interest rate swap agreements did not qualify for hedge accounting. As such, the Company recorded the change in the fair value of the swap agreements in change in fair value of derivative instruments on the consolidated statements of operations. The interest rate swap agreement associated with the 2012 debt restructure does qualify for hedge accounting. As such, the Company recorded the change in the fair value of the swap agreement associated with the 2012 debt restructure as a component of accumulated other comprehensive income (loss), net of tax. The Company records the fair value of its interest rate swaps on the balance sheet in other assets or other liabilities depending on the fair value of the swaps. See Note 6 and Note 12 for additional information on the interest rate swap agreements. 
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements None. 
Reclassification, Policy [Policy Text Block]
Reclassifications Certain reclassifications have been made to the prior year consolidated financial statements to conform to the current year's presentation. 
Note 3 - Property and Equipment (Tables)
Property, Plant and Equipment [Table Text Block]
   
June 24
2012
   
December 25
2011
 
Land
 
$
469,680
   
$
469,680
 
Land (restricted assets of VIE)
   
520,000
     
520,000
 
Building
   
2,745,296
     
2,745,296
 
Building (restricted assets of VIE)
   
1,570,967
     
1,570,967
 
Equipment
   
11,134,942
     
10,596,964
 
Furniture and fixtures
   
3,149,555
     
3,060,014
 
Leasehold improvements
   
19,797,455
     
19,148,471
 
Restaurant construction in progress
   
1,403,110
     
-
 
Total
   
40,791,005
     
38,111,392
 
Less accumulated depreciation
   
(15,798,239)
     
(13,955,881
)
Less accumulated depreciation (restricted assets of VIE)
   
(648,459)
     
(633,197
)
Property and equipment, net
 
$
24,344,307
   
$
23,522,314
 
Note 4 - Intangibles (Tables)
Schedule of Finite-Lived Intangible Assets [Table Text Block]
   
June 24
2012
   
December 25
2011
 
Amortized intangibles:
           
Franchise fees
 
$
308,750
   
$
303,750
 
Trademark
   
34,388
     
30,852
 
Loan fees
   
23,100
     
164,429
 
Total
   
366,238
     
499,031
 
Less accumulated amortization
   
(88,745
)
   
(112,271
)
Amortized intangibles, net
   
277,493
     
386,760
 
                 
Unamortized intangibles:
               
Liquor licenses
   
821,159
     
727,237
 
Total intangibles, net
 
$
1,098,652
   
$
1,113,997
 
Note 6 - Long-Term Debt (Tables)
Schedule of Long-term Debt Instruments [Table Text Block] 
   
June 24
2012
   
December 25
2011
 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal payments are approximately $191,000 plus interest through maturity in April 2019. Interest is charged based on a variable rate of one-month LIBOR plus LIBOR margin (which ranges between 2.50% and 3.40%) and a 1.41% fixed-rate swap arrangement.  The rate at June 24, 2012 was approximately 4.40%.
 
$
15,619,048
   
$
-
 
                 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal and interest payments were approximately $113,000 through maturity in May 2017. Interest was charged based on a swap arrangement designed to yield a fixed annual rate of 7.10%. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
   
 
7,326,128
 
                 
Note payable to a bank secured by a senior mortgage on the Brandon Property and a personal guaranty. Scheduled monthly principal and interest payments are approximately $8,000 through maturity in June 2030, at which point a balloon payment of $413,550 is due. Interest is charged based on a fixed rate of 6.72%, per annum, through June 2017, at which point the rate will adjust to the U.S. Treasury Securities Rate plus 4% (and will adjust every seven years thereafter).
   
1,112,645
     
1,122,413
 
                 
Note payable to a bank secured by a junior mortgage on the Brandon Property. Matures in 2030 and requires monthly principal and interest installments of approximately $6,300 until maturity. Interest is charged at a rate of 3.58% per annum.
   
865,987
     
882,769
 
                 
Note payable to a bank, secured by a senior lien on all company assets. Scheduled interest payments are charged at a rate of 3% over the 30-day LIBOR (the rate at June 24, 2012 was approximately 3.25%). In November 2011, a DLOC converted this into a term loan. The monthly interest payment approximates $6,500. The note will mature in May 2017. The DLOC includes a carrying cost of .25% per year of any available but undrawn amounts.
   
2,729,456
     
1,030,052
 
                 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal and interest payments were approximately $19,500 through maturity in May 2017. Interest was charged based on a swap arrangement designed to yield a fixed annual rate of 5.91%. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
1,195,853
 
                 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal and interest payments were approximately $40,000 through maturity in May 2017. Interest was charged based on a swap arrangement designed to yield a fixed annual rate of 6.35%. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
2,602,375
 
                 
Note payable to a bank secured by a senior lien on all company assets. Scheduled monthly principal and interest payments were approximately $24,500 through maturity in May 2017. Interest was charged based on a swap arrangement designed to yield a fixed annual rate of 6.35%. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
1,676,000
 
                 
Unsecured note payable that originally matured in August 2013 and required monthly principal and interest installments of approximately $2,200, with the balance due at maturity. Interest was 7% per annum. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
231,940
 
                 
Note payable to Ford Credit secured by a vehicle purchased by Flyer Enterprises, Inc. to be used in the operation of the business. This is an interest-free loan under a promotional 0% rate. Scheduled monthly principal payments are approximately $430. The note matures in April 2013.
   
4,291
     
6,864
 
                 
Notes payable – variable interest entity. Note payable to a bank secured by a senior mortgage on the property located at 15745 Fifteen Mile Road, Clinton Township, Michigan 48035, a DRH corporate guaranty, and a personal guaranty. Scheduled monthly principal and interest payments are approximately $12,000 through maturity in 2025. Interest is charged at a rate of 4% over the 30-day LIBOR (the rate at June 24, 2012 was approximately 4.25%).
   
1,184,730
     
1,229,439
 
                 
Notes payable – related parties. These notes were repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
   
-
     
2,504,657
 
                 
Total long-term debt
   
21,516,157
     
19,808,490
 
                 
Less current portion (includes VIE debt of $89,414)
   
(2,434,668
)
   
(2,967,135
)
                 
Long-term debt, net of current portion
 
$
19,081,489
   
$
16,841,355
 
Schedule of Maturities of Long-term Debt [Table Text Block] 
Year
 
Amount
 
2013
 
$
2,434,668
 
2014
   
2,823,012
 
2015
   
2,825,874
 
2016
   
2,828,698
 
2017
   
2,832,066
 
Thereafter
   
7,771,839
 
Total
 
$
21,516,157
 
Note 7 - Capital Stock (Including Purchase Warrants and Options) (Tables)
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]
   
Number of Restricted
Stock Shares
 
Unvested, December 25, 2011
   
60,800
 
Granted
   
20,000
 
Vested
   
-
 
Expired/Forfeited
   
(11,000
)
Unvested, June 24, 2012
   
69,800
 
   
Number of Restricted
Stock Shares
 
Unvested, December 26, 2010
   
-
 
Granted
   
-
 
Vested
   
-
 
Expired/Forfeited
   
-
 
Unvested, June 26, 2011
   
-
 
Note 8 - Income Taxes (Tables)
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] 
   
Three Months Ended
   
Six Months Ended
 
   
June 24
2012
   
June 26
2011
   
June 24
2012
   
June 26
2011
 
Federal:
                       
      Current
                       
      Deferred
  $ 29,088     $ 203,394     $ 246,794     $ 427,382  
                                 
State:
                               
      Current
    6,437       104,299       72,025       137,006  
      Deferred
    50,630       43,804       16,726       97,097  
                                 
Income tax provision
  $ 86,155     $ 351,497     $ 335,545     $ 661,485  
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] 
   
June 24
2012
   
June 26
2011
 
Income tax provision at federal statutory rate
  $ 331,904     $ 646,371  
State income tax provision
    88,752       234,104  
Permanent differences
    81,092       50,559  
Tax credits
    (283,164 )     (211,257 )
Other
    116,961       (58,292 )
Income tax provision
  $ 335,545     $ 661,485  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] 
   
June 24
2012
   
December 25
2011
 
Deferred tax assets:
           
Net operating loss carry forwards
  $ 980,694     $ 1,861,906  
Deferred rent expense
    17,307       50,471  
Start-up costs
    108,279       135,535  
Tax credit carry forwards
    1,419,109       1,089,561  
Other - including state deferred tax assets
    345,480       393,713  
Total deferred tax assets
    2,870,869       3,531,186  
                 
Deferred tax liabilities:
               
Other
    -       -  
Tax depreciation in excess of book
    2,750,887       3,258,854  
Total deferred tax liabilities
    2,750,887       3,258,854  
                 
Net deferred income tax asset
  $ 119,982     $ 272,332  
Note 9 - Operating Leases (Including Related Party) (Tables)
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
Year
 
Amount
 
2013
 
$
3,115,720
 
2014
   
3,179,481
 
2015
   
3,011,402
 
2016
   
2,847,430
 
2017
   
2,466,779
 
Thereafter
   
7,053,552
 
Total
 
$
21,674,364
 
Note 12 - Fair Value of Financial Instruments (Tables)
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
FAIR VALUE MEASUREMENTS
 
Description
 
Level 1
   
Level 2
   
Level 3
   
Total
   
Asset/(Liability)
Total
 
Interest Rate Swaps
 
$
—
   
$
(326,973
)
 
$
—
   
$
(326,973
)
 
$
(326,973
)
FAIR VALUE MEASUREMENTS
 
Description
 
Level 1
   
Level 2
   
Level 3
   
Total
   
Asset/(Liability)
Total
 
Interest Rate Swaps
 
$
—
   
$
(613,999
)
 
$
—
   
$
(613,999
)
 
$
(613,999
)
Note 1 - Business and Summary of Significant Accounting Policies (Detail)
3 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Dec. 31, 2017
Aug. 13, 2012
Aug. 13, 2012
IFA [Member]
Jun. 24, 2012
BWW [Member]
Dec. 30, 2012
Additional Corporate Owned [Member]
Dec. 30, 2012
Franchise Midwest [Member]
Aug. 13, 2012
Michigan [Member]
Aug. 13, 2012
Florida [Member]
Dec. 31, 2017
Additional [Member]
Jun. 10, 2012
Midwest [Member]
Number of Restaurants
7 
 
32 
22 
 
22 
3 
6 
14 
8 
16 
6 
Franchise Members
 
 
 
1,000 
12,000 
 
 
 
 
 
 
 
Concentration Risk, Percentage
75.00% 
76.00% 
 
 
 
 
 
 
 
 
 
 
Note 2 - Significant Business Transactions (Detail) (USD $)
6 Months Ended 18 Months Ended 6 Months Ended
Jun. 24, 2012
Mar. 31, 2019
Apr. 2, 2012
Jun. 7, 2011
Apr. 2, 2012
Working Capital [Member]
Dec. 7, 2012
Development Line of Credit [Member]
Jun. 7, 2011
Development Line of Credit [Member]
Jun. 7, 2011
Revolving Line of Credit [Member]
Apr. 2, 2012
Commitment Letter [Member]
Refinancing of Debt [Member]
Jun. 24, 2012
Min Range [Member]
Jun. 24, 2012
Max Range [Member]
Line of Credit Facility, Maximum Borrowing Capacity
 
 
 
$ 8,000,000 
$ 300,000 
 
$ 7,000,000 
$ 1,000,000 
$ 15,700,000 
 
 
Secured Debt
 
 
16,000,000 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Terms of Conversion Feature
 
 
 
 
 
seven 
 
 
 
2.50% 
3.40% 
Notional Amount of Interest Rate Derivatives
 
0 
16,000,000 
 
 
 
 
 
 
 
 
Derivative, Swaption Interest Rate
1.41% 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Periodic Payment
$ 191,000 
 
 
 
 
 
 
 
 
 
 
Note 3 - Property and Equipment (Detail) - Property and Equipment (USD $)
Jun. 24, 2012
Dec. 25, 2011
Property and equipment
$ 40,791,005 
$ 38,111,392 
Less accumulated depreciation
(15,798,239)
(13,955,881)
Property and equipment, net
22,901,799 
22,064,544 
Land [Member]
 
 
Property and equipment
469,680 
469,680 
Land VIE [Member]
 
 
Property and equipment
520,000 
520,000 
Building [Member]
 
 
Property and equipment
2,745,296 
2,745,296 
Building VIE [Member]
 
 
Property and equipment
1,570,967 
1,570,967 
Equipment [Member]
 
 
Property and equipment
11,134,942 
10,596,964 
Furniture and Fixtures [Member]
 
 
Property and equipment
3,149,555 
3,060,014 
Leasehold Improvements [Member]
 
 
Property and equipment
19,797,455 
19,148,471 
Construction in Progress [Member]
 
 
Property and equipment
1,403,110 
 
Accumulated Depreciation VIE [Member]
 
 
Less accumulated depreciation
(648,459)
(633,197)
Total Including VIE [Member]
 
 
Property and equipment, net
$ 24,344,307 
$ 23,522,314 
Note 4 - Intangibles (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Dec. 26, 2016
Dec. 25, 2011
Amortization of Intangible Assets
$ 4,278 
$ 9,705 
$ 13,869 
$ 19,430 
 
 
Finite-Lived Intangible Assets, Net
277,493 
 
277,493 
 
17,800 
386,760 
Amortization of Financing Costs
$ 103,934 
 
$ 103,934 
 
 
 
Note 4 - Intangibles (Detail) - Intangible Assets (USD $)
Dec. 26, 2016
Jun. 24, 2012
Dec. 25, 2011
Amortized intangibles:
 
 
 
Franchise fees
 
$ 308,750 
$ 303,750 
Trademark
 
34,388 
30,852 
Loan fees
 
23,100 
164,429 
Total
 
366,238 
499,031 
Less accumulated amortization
 
(88,745)
(112,271)
Amortized intangibles, net
17,800 
277,493 
386,760 
Unamortized intangibles:
 
 
 
Liquor licenses
 
821,159 
727,237 
Total intangibles, net
 
$ 1,098,652 
$ 1,113,997 
Note 5 - Related Party Transactions (Detail) (USD $)
3 Months Ended 6 Months Ended 72 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 24, 2012
Jun. 26, 2011
Feb. 1, 2016
Affiliate Acquisition [Member]
Mar. 25, 2012
Affiliate Acquisition [Member]
Dec. 25, 2011
Affiliate Acquisition [Member]
Sep. 25, 2011
Promissory Demand Note [Member]
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
 
 
6.00% 
 
 
8.00% 
Debt Instrument, Periodic Payment
 
 
 
$ 191,000 
 
$ 157,000 
 
 
 
Notes Payable
 
 
 
 
 
 
2,118,535 
2,254,657 
 
Professional Fees
89,811 
82,730 
182,658 
 
152,085 
 
 
 
 
Notes Payable, Current
 
 
 
 
 
 
 
 
$ 250,000 
Note 6 - Long-Term Debt (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Dec. 25, 2011
Jun. 24, 2012
Minimum [Member]
Jun. 24, 2012
Maximum [Member]
Mar. 31, 2019
2012 Term Loan [Member]
Jun. 24, 2012
2012 Term Loan [Member]
Jun. 24, 2012
Used To Repay All Outstanding Senior Debt [Member]
Jun. 24, 2012
Working Capital [Member]
Debt Instrument, Face Amount
 
 
 
 
 
 
 
 
$ 16,000,000 
 
 
Long-term Debt
21,516,157 
 
21,516,157 
 
19,808,490 
 
 
 
 
15,700,000 
300,000 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
2.50% 
3.40% 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
0 
16,000,000 
 
 
Derivative, Fixed Interest Rate
 
 
 
 
 
 
 
 
1.41% 
 
 
Debt Instrument, Periodic Payment
 
 
191,000 
 
 
 
 
 
 
 
 
Interest Expense
253,103 
306,624 
565,644 
593,434 
 
 
 
 
 
 
 
Interest Expense, Related Party
10,593 
45,291 
52,724 
102,371 
 
 
 
 
 
 
 
Interest Rate Derivative Assets, at Fair Value
$ 326,973 
 
$ 326,973 
 
$ 613,999 
 
 
 
 
 
 
Note 6 - Long-Term Debt (Detail) - Long Term Debt Obligations (USD $)
Jun. 24, 2012
Dec. 25, 2011
Notes payable – related parties. These notes were repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
 
$ 2,504,657 
Total long-term debt
21,516,157 
19,808,490 
Less current portion (includes VIE debt of $89,414)
(2,434,668)
(2,967,135)
Long-term debt, net of current portion
19,081,489 
16,841,355 
Secured Debt [Member] |
Note Payable May 2017 [Member]
 
 
Secured long-term debt
 
7,326,128 
Secured Debt [Member] |
Note Payable June 2030 [Member]
 
 
Secured long-term debt
1,112,645 
1,122,413 
Secured Debt [Member] |
Note Payable 2030 Junior [Member]
 
 
Secured long-term debt
865,987 
882,769 
Secured Debt [Member] |
Development Line of Credit [Member]
 
 
Secured long-term debt
2,729,456 
1,030,052 
Secured Debt [Member] |
Note Payable2 May 2017 [Member]
 
 
Secured long-term debt
 
1,195,853 
Secured Debt [Member] |
Note Payable3 May 2017 [Member]
 
 
Secured long-term debt
 
2,602,375 
Secured Debt [Member] |
Note Payable April 2013 [Member]
 
 
Secured long-term debt
4,291 
6,864 
Secured Debt [Member] |
Note Payable 2025 [Member]
 
 
Secured long-term debt
1,184,730 
1,229,439 
Unsecured Debt [Member] |
Note Payable August 2013 [Member]
 
 
Unsecured note payable that originally matured in August 2013 and required monthly principal and interest installments of approximately $2,200, with the balance due at maturity. Interest was 7% per annum. This note was repaid in full in conjunction with the 2012 Term Loan; refer below for further details.
 
231,940 
Note Payable April 2019 [Member]
 
 
Secured long-term debt
15,619,048 
 
Note Payable 4 May 2017 [Member]
 
 
Secured long-term debt
 
$ 1,676,000 
Note 6 - Long-Term Debt (Detail) - Long Term Debt Obligations (Parentheticals) (USD $)
6 Months Ended 12 Months Ended
Jun. 24, 2012
Dec. 25, 2011
Monthly payment (in Dollars)
$ 191,000 
 
VIE Debt (in Dollars)
89,414 
89,414 
Minimum [Member] |
Note Payable April 2019 [Member]
 
 
Fixed annual rate
2.50% 
 
Maximum [Member] |
Note Payable April 2019 [Member]
 
 
Fixed annual rate
3.40% 
 
Secured Debt [Member] |
Note Payable May 2017 [Member]
 
 
Monthly payment (in Dollars)
 
113,000 
Fixed annual rate
 
7.10% 
Secured Debt [Member] |
Note Payable June 2030 [Member]
 
 
Monthly payment (in Dollars)
8,000 
8,000 
Fixed annual rate
6.72% 
6.72% 
Balloon payment (in Dollars)
413,550 
413,550 
Secured Debt [Member] |
Note Payable 2030 Junior [Member]
 
 
Monthly payment (in Dollars)
6,300 
6,300 
Fixed annual rate
3.58% 
3.58% 
Secured Debt [Member] |
Development Line of Credit [Member]
 
 
Loan bearing interest
3.00% 
3.00% 
Carrying cost
25.00% 
0.25% 
Interest rate at period end
3.25% 
 
Secured Debt [Member] |
Note Payable2 May 2017 [Member]
 
 
Monthly payment (in Dollars)
 
19,500 
Fixed annual rate
 
5.91% 
Secured Debt [Member] |
Note Payable3 May 2017 [Member]
 
 
Monthly payment (in Dollars)
 
40,000 
Fixed annual rate
 
6.35% 
Secured Debt [Member] |
Note Payable April 2013 [Member]
 
 
Monthly payment (in Dollars)
430 
430 
Fixed annual rate
0.00% 
0.00% 
Secured Debt [Member] |
Note Payable 2025 [Member]
 
 
Monthly payment (in Dollars)
12,000 
12,000 
Interest rate at period end
4.25% 
 
Unsecured Debt [Member] |
Note Payable August 2013 [Member]
 
 
Monthly payment (in Dollars)
 
2,200 
Fixed annual rate
 
7.00% 
Note Payable April 2019 [Member]
 
 
Monthly payment (in Dollars)
191,000 
 
Note Payable 4 May 2017 [Member]
 
 
Monthly payment (in Dollars)
 
$ 24,500 
Fixed annual rate
 
6.35% 
Note 6 - Long-Term Debt (Detail) - Principal Maturities Of Long-Term Debt (USD $)
Jun. 24, 2012
Dec. 25, 2011
2013
$ 2,434,668 
 
2014
2,823,012 
 
2015
2,825,874 
 
2016
2,828,698 
 
2017
2,832,066 
 
Thereafter
7,771,839 
 
Total
$ 21,516,157 
$ 19,808,490 
Note 7 - Capital Stock (Including Purchase Warrants and Options) (Detail) (USD $)
3 Months Ended 6 Months Ended 73 Months Ended 126 Months Ended 1 Months Ended 5 Months Ended 59 Months Ended 33 Months Ended 2 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Jul. 31, 2016
Jun. 26, 2011
Jul. 30, 2007
Jul. 31, 2010
Board of Directors [Member]
Dec. 26, 2010
Board of Directors [Member]
Jun. 24, 2012
Board of Directors [Member]
Jun. 24, 2012
Director [Member]
Mar. 1, 2012
Maximum [Member]
Mar. 1, 2012
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized
750,000 
 
750,000 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)
 
 
 
 
 
 
 
 
 
 
 
$ 5.00 
$ 3.10 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant
680,200 
 
680,200 
 
 
 
150,000 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period
 
 
 
 
6 years 
 
 
 
 
3 years 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (in Dollars per share)
 
 
$ 2.50 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures
 
 
 
 
 
 
 
210,000 
 
 
 
 
 
Investment Options, Exercise Price (in Dollars per share)
 
 
 
 
 
 
 
 
$ 2.50 
 
$ 2.50 
 
 
Share-based Compensation (in Dollars)
$ 53,815 
$ 21,981 
$ 106,948 
$ 43,962 
 
$ 43,962 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in Dollars per share)
$ 87,926 
 
$ 87,926 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
 
 
 
 
 
 
 
 
 
 
6,000 
 
 
Common Stock, Capital Shares Reserved for Future Issuance
354,000 
 
354,000 
 
 
 
 
 
 
 
 
 
 
Preferred Stock, Shares Authorized
10,000,000 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)
$ 0.0001 
 
$ 0.0001 
 
 
 
 
 
 
 
 
 
 
Note 7 - Capital Stock (Including Purchase Warrants and Options) (Detail) - Restricted Shares Transactions (Restricted Stock Units (RSUs) [Member])
6 Months Ended
Jun. 24, 2012
Restricted Stock Units (RSUs) [Member]
 
Unvested Balance
60,800 
Granted
20,000 
Expired/Forfeited
(11,000)
Unvested Balance
69,800 
Note 8 - Income Taxes (Detail) (USD $)
Jun. 24, 2012
Dec. 25, 2011
Deferred Tax Assets, Operating Loss Carryforwards
$ 980,694 
$ 1,861,906 
Deferred Tax Assets, Tax Credit Carryforwards, General Business
46,144 
 
Expires 2031 [Member]
 
 
Deferred Tax Assets, Operating Loss Carryforwards
1,616,146 
 
Expires 2030 [Member]
 
 
Deferred Tax Assets, Operating Loss Carryforwards
28,290 
 
Expires 2029 [Member]
 
 
Deferred Tax Assets, Operating Loss Carryforwards
8,134 
 
Expires 2028 [Member]
 
 
Deferred Tax Assets, Operating Loss Carryforwards
734,523 
 
Expires 2031 [Member]
 
 
Deferred Tax Assets, Tax Credit Carryforwards, General Business
283,164 
 
Expires 2030 [Member]
 
 
Deferred Tax Assets, Tax Credit Carryforwards, General Business
638,769 
 
Expires 2029 [Member]
 
 
Deferred Tax Assets, Tax Credit Carryforwards, General Business
335,621 
 
Expires 2028 [Member]
 
 
Deferred Tax Assets, Tax Credit Carryforwards, General Business
86,678 
 
Expires 2027 [Member]
 
 
Deferred Tax Assets, Tax Credit Carryforwards, General Business
$ 59,722 
 
Note 8 - Income Taxes (Detail) - Income Tax Benefit (Provision) Components (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Federal:
 
 
 
 
Deferred
$ 29,088 
$ 203,394 
$ 246,794 
$ 427,382 
State:
 
 
 
 
Current
6,437 
104,299 
72,025 
137,006 
Deferred
50,630 
43,804 
16,726 
97,097 
Income tax provision
$ 86,155 
$ 351,497 
$ 335,545 
$ 661,485 
Note 8 - Income Taxes (Detail) - Income Tax Benefit (Provision) Reconciliation (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Income tax provision at federal statutory rate
 
 
$ 331,904 
$ 646,371 
State income tax provision
 
 
88,752 
234,104 
Permanent differences
 
 
81,092 
50,559 
Tax credits
 
 
(283,164)
(211,257)
Other
 
 
116,961 
(58,292)
Income tax provision
$ 86,155 
$ 351,497 
$ 335,545 
$ 661,485 
Note 8 - Income Taxes (Detail) - Deferred Income Tax Assets And Liabilities (USD $)
Jun. 24, 2012
Dec. 25, 2011
Net operating loss carry forwards
$ 980,694 
$ 1,861,906 
Deferred rent expense
17,307 
50,471 
Start-up costs
108,279 
135,535 
Tax credit carry forwards
1,419,109 
1,089,561 
Other - including state deferred tax assets
345,480 
393,713 
Total deferred tax assets
2,870,869 
3,531,186 
Tax depreciation in excess of book
2,750,887 
3,258,854 
Total deferred tax liabilities
2,750,887 
3,258,854 
Net deferred income tax asset
$ 119,982 
$ 272,332 
Note 9 - Operating Leases (Including Related Party) (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Operating Leases, Rent Expense
$ 733,124 
$ 650,736 
$ 1,446,967 
$ 1,264,047 
Operating Lease Expense [Member]
 
 
 
 
Operating Leases, Rent Expense
$ 23,358 
$ 22,529 
$ 46,717 
$ 43,400 
Note 9 - Operating Leases (Including Related Party) (Detail) - Future Minimum Lease Payments (USD $)
Jun. 24, 2012
2013
$ 3,115,720 
2014
3,179,481 
2015
3,011,402 
2016
2,847,430 
2017
2,466,779 
Thereafter
7,053,552 
Total
$ 21,674,364 
Note 10 - Commitments and Contingencies (Detail) (USD $)
3 Months Ended 6 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 26, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Dec. 31, 2017
Aug. 13, 2012
Oct. 1, 2016
Original Number of Restaurants Required [Member]
Mar. 1, 2017
Additional Restaurant Amendment [Member]
Jun. 24, 2012
Potential Penalty Per Undeveloped Restaurant [Member]
Jun. 24, 2012
Restaurants Required [Member]
Jun. 24, 2012
Open Restaurants [Member]
Jun. 24, 2012
Additional Openings Not Related to Area Development Agreement [Member]
Number of Restaurants
7 
 
 
7 
 
32 
22 
23 
9 
 
32 
16 
6 
Loss on Contract Termination for Default
 
 
 
 
 
 
 
 
 
$ 50,000 
 
 
 
Royalty Percentage
 
 
 
5.00% 
 
 
 
 
 
 
 
 
 
Advertising Fund Contribution
 
 
 
3.00% 
 
 
 
 
 
 
 
 
 
Royalty Expense
728,432 
 
677,300 
1,508,618 
1,378,264 
 
 
 
 
 
 
 
 
Advertising Expense
 
443,780 
432,928 
905,440 
848,968 
 
 
 
 
 
 
 
 
Modernization Cost Per Restaurant Range Low
 
 
 
50,000 
 
 
 
 
 
 
 
 
 
Modernization Cost Per Restaurant Range High
 
 
 
$ 500,000 
 
 
 
 
 
 
 
 
 
Note 11 - Supplemental Cash Flows Information (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 24, 2012
Jun. 26, 2011
Jun. 24, 2012
Jun. 26, 2011
Interest Paid
$ 254,968 
$ 306,624 
$ 515,898 
$ 593,434 
Income Taxes Paid
$ 85,000 
$ 37,943 
$ 213,000 
$ 74,446 
Note 12 - Fair Value of Financial Instruments (Detail) (USD $)
In Millions, unless otherwise specified
Jun. 24, 2012
Dec. 25, 2011
Debt, Long-term and Short-term, Combined Amount
$ 21.5 
$ 17.3 
Debt Instrument, Fair Value Disclosure
15.8 
15.2 
Due to Related Parties
 
2.6 
Related Parties [Member]
 
 
Debt Instrument, Fair Value Disclosure
 
$ 2.5 
Note 12 - Fair Value of Financial Instruments (Detail) - Fair Value Of Assets And Liabilities Measured On A Recurring Basis (USD $)
Jun. 24, 2012
Dec. 25, 2011
Interest Rate Swaps
$ (326,973)
$ (613,999)
Fair Value, Inputs, Level 2 [Member]
 
 
Interest Rate Swaps
$ (326,973)
$ (613,999)