Sale and Closure of Company-Owned Stores

12 Months Ended

Dec. 30, 2018

Restructuring and Related Activities [Abstract]

Sale and Closure of Company-Owned Stores

(12)	Sale and Closure of Company-Owned Stores

During 2018, the Company sold 12 Company-owned stores to a former executive of the Company for proceeds of $7.9 million. The former executive terminated his employment with the Company prior to the closing date of the sale and became a franchisee. In connection with the sale of the stores, the Company recorded a

$5.9 million pre-tax gain

on the sale of the related assets, which was net of a $0.4 million reduction in goodwill. During 2018, the Company also sold two Company-owned stores to a franchisee for proceeds of $0.3 million. In connection with the sale of the stores, the Company recorded a

pre-tax

gain of less than $0.1 million on the sale of the related assets, which was net of a $0.1 million reduction in goodwill. The gains on these sales were recorded in general and administrative expense in the Company’s consolidated statements of income.

During 2017, the Company sold 17 Company-owned stores to franchisees for proceeds of $6.8 million. In connection with the sale of the stores, the Company recorded a $4.0 million

pre-tax

gain on the sale of the related assets, which was net of a $0.6 million reduction in goodwill. The gain was recorded in general and administrative expense in the Company’s consolidated statements of income.

The Company closed one Company-owned store in 2016. In connection with the closure, the Company recorded a reduction of goodwill of less than $0.1 million in general and administrative expense in the Company’s consolidated statements of income.