<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 27, 2000
---------------------------
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------- ---------
Commission File Number 1-9684
------------------------------
CHART HOUSE ENTERPRISES, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 33-0147725
- --------------------------------------------------------------------------------
(State of other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
640 North LaSalle, Suite 295, Chicago, Illinois, 60610
- --------------------------------------------------------------------------------
(Address of principal executive offices, including zip code)
(312) 266-1100
- --------------------------------------------------------------------------------
(registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes x No
----------- ----------
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of May 5, 2000:
Common Stock ($.01 par value) - 11,787,720
----------
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
March 27, December 27,
ASSETS 2000 1999
----------- -----------
(Unaudited)
<S> <C> <C>
Current Assets:
Cash and Equivalents $ 367 $ 424
Accounts Receivable 2,507 2,969
Inventories 2,062 2,282
Prepaid Expenses and Other Current Assets 956 530
Current Portion of Deferred Tax Asset 288 288
------------ -----------
Total Current Assets 6,180 6,493
------------ -----------
Property and Equipment, at Cost:
Land 3,609 3,904
Buildings 13,103 15,384
Equipment 33,997 33,115
Leasehold Interests & Improvements 56,873 53,854
Construction in Progress 5,111 3,380
------------ -----------
112,693 109,637
Less: Accumulated Depreciation and Amortization 43,675 42,621
------------ -----------
Net Property & Equipment 69,018 67,016
------------ -----------
Leased Property under Capital Leases, Less Accumulated
Amortization of $2,364 in 2000 and $2,329 in 1999 2,479 2,514
------------ -----------
Deferred Tax Asset 5,092 5,092
------------ -----------
Other Assets and Goodwill, Net 17,948 18,374
------------ -----------
$ 100,717 $ 99,489
============ ===========
</TABLE>
The accompanying notes are an integral part of these consolidated
balance sheets.
-1-
<PAGE>
CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
March 27, December 27,
LIABILITIES AND STOCKHOLDERS' EQUITY 2000 1999
----------- ------------
(Unaudited)
<S> <C> <C>
Current Liabilities:
Current Portion of Long-Term Obligations $ 2,466 $ 2,435
Accounts Payable 3,612 4,577
Accrued Liabilities 13,489 13,775
----------- -----------
Total Current Liabilities 19,567 20,787
Deferred Payments on Acquisition 813 1,000
Long-Term Debt 20,650 17,700
Long-Term Obligations under Capital Leases 3,635 3,713
Stockholders' Equity:
Preferred Stock, $1.00 par value, authorized 10,000,000
shares; none outstanding - -
Common Stock, $.01 par value, authorized 30,000,000
shares; 11,775,191 shares outstanding in 2000 and 1999 118 118
Additional Paid-In Capital 61,178 61,178
Retained Deficit (5,244) (5,007)
----------- -----------
Total Stockholders' Equity 56,052 56,289
----------- -----------
$ 100,717 $ 99,489
=========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated
balance sheets.
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<PAGE>
CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
<TABLE>
<CAPTION>
First Quarter First Quarter
Ended March 27, Ended March 29,
2000 1999
--------------- ---------------
<S> <C> <C>
Revenues $ 32,880 $ 34,631
Costs and Expenses:
Cost of Sales 10,740 11,099
Restaurant Labor 9,513 10,406
Other Operating Costs 7,175 7,904
Pre-opening Costs 235 -
Selling, General and
Administrative Expenses 3,239 2,986
Depreciation and Amortization 1,670 1,837
Interest Expense 545 275
------------ -------------
Total Costs and Expenses 33,117 34,507
------------ -------------
(Loss) Income Before Income Taxes (237) 124
Provision for Income Taxes - -
------------ -------------
Net (Loss) Income $ (237) $ 124
============ =============
Net (Loss) Income Per Common Share - Basic and
Diluted $(.02) $.01
Weighted Average Shares Outstanding 11,775 11,763
</TABLE>
The accompanying notes are an integral part of these consolidated statements.
-3-
<PAGE>
CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
First Quarter First Quarter
Ended March 27, Ended March 29,
2000 1999
-------------- ---------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net (Loss) Income $ (237) $ 124
Adjustments to Reconcile Net Income to Cash
Flows from Operating Activities:
Depreciation and Amortization 1,713 1,837
Loss on Write-Down and Disposition of Assets - 2
Change in Net Current Liabilities (1,350) (2,503)
------------- ---------------
Cash Provided by (Used in) Operating Activities 126 (540)
Cash Flows from Investing Activities:
Expenditures for Property and Equipment (4,409) (3,647)
Additions to Other Assets (16) (177)
Proceeds from Disposition of Assets 1,526 -
------------- ---------------
Cash Used in Investing Activities (2,899) (3,824)
Cash Flows from Financing Activities:
Principal Payments on Obligations under Capital
Leases (47) (206)
Payments under Deferred Acquisition Agreement (187) -
Net Borrowings under Revolving Credit Agreement
2,950 4,550
------------- ---------------
Cash Provided by Financing Activities 2,716 4,344
------------- ---------------
Decrease in Cash (57) (20)
Cash, Beginning of Period 424 266
------------- ---------------
Cash, End of Period $ 367 $ 246
============= ===============
</TABLE>
The accompanying notes are an integral part of these consolidated statements.
-4-
<PAGE>
CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
First Quarter First Quarter
Ended March 27, Ended March 29,
2000 1999
--------------- ---------------
<S> <C> <C>
The Change in Net Current Liabilities is
Comprised of the Following:
Decrease in Accounts Receivable $ 462 $ 457
Decrease in Inventories 220 355
Increase in Prepaid Expenses and Other Current (426) (82)
Assets
Decrease in Accounts Payable (965) (2,354)
Decrease in Accrued Liabilities (641) (1,695)
-------------- --------------
Change in Net Current Liabilities $ (1,350) $ (2,503)
Supplemental Cash Flow Disclosures:
Cash Paid During the Period for:
Interest (Net of Amount Capitalized) $ 539 $ 133
Income Taxes (Net of Refunds) $ - $ 2
</TABLE>
The accompanying notes are an integral part of these consolidated statements.
-5-
<PAGE>
CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 27, 2000
(Unaudited)
(1) BASIS OF PRESENTATION
The accompanying consolidated financial statements of Chart House
Enterprises, Inc. and subsidiaries (the "Company") for the quarterly periods
ended March 27, 2000 and March 29, 1999 have been prepared in accordance with
generally accepted accounting principles, and with the instructions to Form 10-
Q. These financial statements have not been audited by independent public
accountants, but include all adjustments (consisting of normal recurring
adjustments) which are, in the opinion of management, necessary for a fair
presentation of the financial condition, results of operations and cash flows
for such periods. However, these results are not necessarily indicative of
results for any other interim period or for the full year.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities as of the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Certain information and footnote disclosures normally included in financial
statements in accordance with generally accepted accounting principles have been
omitted pursuant to requirements of the Securities and Exchange Commission.
Management believes that the disclosures included in the accompanying interim
financial statements and footnotes are adequate to make the information not
misleading, but should be read in conjunction with the consolidated financial
statements and notes thereto included in the Company's annual report on
Form 10-K for the year ended December 27, 1999.
Certain items previously reported in specific financial statement captions
have been reclassified to conform to the 2000 presentation.
(2) INCOME TAXES
No provision for income taxes has been recorded as of March 27, 2000 as the
Company expects to offset 2000 income tax expense with income tax benefits
associated with net operating losses and tax credits.
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<PAGE>
(3) RESTRUCTURING ACTIONS AND SPECIAL CHARGES
In 1999, the Company recorded a restructuring charge and write-down of
assets totaling $4,890,000 in preparation for an expansion plan requiring
disposal of eleven restaurants whose operating results and economics were not
conducive to the long-term success of the Company. The charges included:
Write-down of assets to be disposed $4,286,000
Severance and other exit costs $ 604,000
Seven of the eleven restaurants closed within the first six weeks of 2000.
The Company anticipates operating the remaining four restaurants (all located in
Hawaii) until sales agreements are reached, in accordance with the lease
contracts. Of the seven closed restaurants, two restaurant properties have been
sold. The other five closed restaurants' assets remain for sale. It is
management's intention to sell these restaurant assets during 2000.
The table below reflects the proportion of the Company's results of
operations (excluding overhead allocations) contributed by the eleven
restaurants identified for disposal.
Q1 2000 Q1 1999
in thousands in thousands
Revenue: $2,937 $4,994
Net Income: $ 262 $ 92
The carrying value of assets held for disposal at March 27, 2000 was
approximately $2,927,000.
The table below reflects the charges to the liability for severance and
other exit costs (included in Accrued Liabilities) for the period to date.
Liability as of December 27, 1999 $ 604,000
Payments made for severance ($361,000)
------------
Liability as of March 27, 2000 $ 243,000
The number of employees terminated through first quarter 2000 as a result
of this disposition plan was 138. The liability remaining at March 27, 2000 will
absorb the exit costs and severance payments due 131 employees currently working
in our restaurants held for disposal.
There were no adjustments to the liability other than payments charged to
the liability. The liability as of March 27, 2000 reflects management's best
estimate of future expenses and losses on closings and disposals.
-7-
<PAGE>
(4) PRE-OPENING COSTS
The Company expenses pre-opening costs as incurred. Pre-opening costs, or
start-up costs, are one-time activities related to opening a new restaurant.
Pre-opening costs of approximately $235,000 primarily represent salary-related
expenses and training costs for new employees.
(5) DEBT COMPLIANCE
The Company is in compliance with all debt covenants as of March 27, 2000.
(6) CONTINGENCIES
The Company is contingently liable, in certain circumstances, for lease
obligations of properties subleased to third parties. Certain properties,
previously occupied and operated by the Company, have been subleased where the
Company is liable for lease payments under sublessee default. The Company is
not aware of default under any of these agreements.
(7) SEASONALITY
Historically, the Company's business is seasonal in nature with revenues
and net income for the second and third quarters being greater than in the first
and fourth quarters.
-8-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Results of Operations
- ---------------------
The following is a comparative discussion of the results of operations for
the quarterly periods ended March 27, 2000 and March 29, 1999. The results of
operations for the first quarter of 2000 are not necessarily indicative of the
results to be expected for the fiscal year ending December 25, 2000. The dollar
amounts in the table below are in thousands.
<TABLE>
<CAPTION>
First Quarter First Quarter
Ended March 27, Ended March 29,
2000 1999
------------------------------- ---------------------------------
Dollars Percent Dollars Percent
------------ ----------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C>
Revenues 32,880 100.0 34,631 100.0
Costs and Expenses:
Cost of Sales 10,740 32.7 11,099 32.0
Restaurant Labor 9,513 28.9 10,406 30.0
Other Operating Costs 7,175 21.8 7,904 22.8
Pre-opening Costs 235 0.7 - -
Selling, General and Administrative
Expenses 3,239 9.9 2,986 8.6
Depreciation and Amortization 1,670 5.1 1,837 5.4
Interest Expense 545 1.7 275 0.8
------------ ----------- ------------- -------------
Total Costs and Expenses 33,117 100.7 34,507 99.6
------------ ----------- ------------- -------------
(Loss) Income Before Income Taxes (237) (0.7) 124 0.4
Provision for Income Taxes - - - -
------------ ----------- ------------- -------------
Net (Loss) Income (237) (0.7) 124 0.4
============ =========== ============= =============
</TABLE>
Management believes that the most meaningful approach to analyzing results
of operations is through comparable restaurant sales and margin analysis, which
requires critically reviewing the relationships that certain costs and expenses
bear to revenues. Accordingly, the discussion below follows this approach.
-9-
<PAGE>
Revenues for the first quarter decreased by 5.1% from 1999 to 2000. The
table below reflects the impact on total revenues resulting from strategic
decisions implemented over the past two years.
Permanent Closure of Restaurants (13.3)%
Closure of Restaurants due to Remodeling (3.5%)
Restaurants Held for Disposal (0.6%)
Angelo and Maxie's (acquired in Q2 1999) 5.6%
Continuing Restaurants 6.7%
------
Total (5.1%)
At March 27, 2000 the Company operated 43 Chart House restaurants (which
includes the Peohe's restaurant) and one Angelo and Maxie's steakhouse, which
was acquired in the second quarter 1999. Of those restaurants, four restaurants
have been designated for closure in conjunction with the 1999 restructuring.
Management estimates that all four restaurants will be closed in 2000.
Comparable restaurant revenue growth for the continuing 39 Chart House
restaurants was 6.7% and 0.8% for the first quarter 2000 and first quarter 1999,
respectively.
Revenue growth at comparable restaurants is attributed to implementation of
a new menu at many restaurants and the renewed interest in many restaurants
subsequent to significant remodeling. Both customer counts and check averages
have risen which contributes to the increase.
Restaurant-level operating margins have changed since 1999 primarily due to
the acquisition of Angelo and Maxie's as well as the disposal of under-
performing restaurants. Cost of sales as a percentage of revenues was higher in
2000 as the result of the addition of Angelo and Maxie's. The menu at Angelo and
Maxie's contains significantly more beef items and large portion sizes. This
results in higher food costs than have typically been realized at the Chart
House restaurants. Chart House restaurants sell larger volumes of seafood which
generally result in a lower cost of sales percentage. Restaurant labor expense
has decreased between the 2000 and 1999 periods, primarily in hourly wages. The
decision made in 1999 to dispose of eleven restaurants during 2000 was based, in
part, on the deterioration of operating margins. The first quarter results
reflect the elimination of higher costs from closed restaurants. Further, the
remodeling of most of the restaurants in 1999 and 2000 has relieved the Company
of significant repair and maintenance expense.
Selling, general and administrative expenses have increased from 1999
primarily because of incremental salary and related costs for the Angelo and
Maxie's concept management team. The Company has incurred significant expenses
in legal and real estate costs in securing new leases for new Angelo and Maxie's
locations opening in 2000 and 2001.
Depreciation and amortization has decreased from 1999 due to the fewer
number of restaurants currently under operation. Interest expense has increased
since the issuance of the $15 million term loan in April 1999.
No provision for income taxes has been recorded as of March 27, 2000 as the
Company expects to offset 2000 income tax expense with income tax benefits
associated with net operating losses and tax credits reflected in deferred tax
assets.
-10-
<PAGE>
The Company has incurred approximately $235,000 in expenditures during the
first quarter relating to the opening of new restaurants. These costs primarily
reflect salaries and benefits and training costs for new employees. The Company
plans to open one Chart House in May 2000, one Angelo and Maxie's in June 2000,
and four Angelo and Maxie's in the second half of 2000.
As a result of the foregoing, net income decreased by $361,000 from
$124,000 for the first quarter of 1999 to a loss of ($237,000) for the first
quarter of 2000.
Restructuring Charges and Impaired Assets
- -----------------------------------------
In 1999, the Company recorded a restructuring charge and write-down of
assets totaling $4,890,000 in preparation for an expansion plan requiring
disposal of eleven restaurants whose operating results and economics were not
conducive to the long-term success of the Company. The charges included:
Write-down of assets to be disposed $4,286,000
Severance and other exit costs $ 604,000
Seven of the eleven restaurants closed within the first six weeks of 2000.
The Company anticipates operating the remaining four restaurants (all located in
Hawaii) until sales agreements are reached, in accordance with the lease
contracts. Of the seven closed restaurants, two restaurant properties have been
sold. The other five closed restaurants' assets remain for sale. It is
management's intention to sell these restaurant assets during 2000.
The table below reflects the proportion of the Company's results of
operations (excluding overhead allocations) contributed by the eleven
restaurants identified for disposal.
Q1 2000 Q1 1999
in thousands in thousands
Revenue: $2,937 $4,994
Net Income: $ 262 $ 92
The carrying value of assets held for disposal (included in Net Property
and Equipment) at March 27, 2000 was approximately $2,927,000.
The table below reflects the charges to the liability for severance and
other exit costs (included in Accrued Liabilities) for the period to date.
Liability as of December 27, 1999 $604,000
-11-
<PAGE>
Payments made for severance ($361,000)
------------
Liability as of March 27, 2000 $243,000
The number of employees terminated through first quarter 2000 as a result
of this disposition plan was 138. There are severance payments due 131 employees
currently working in our restaurants held for disposal.
There were no adjustments to the liability other than payments charged to
the liability. The liability as of March 27, 2000 reflects management's best
estimate of future expenses and losses on closings and disposals.
Liquidity and Capital Resources
- -------------------------------
First Quarter First Quarter
2000 1999
(in `000s) (in `000s)
Cash provided by (used in) Operating Activities $ 126 ($540)
Expenditures for Property and Equipment (4,409) (3,647)
Proceeds from Disposition of Assets 1,526 -
Cash used in other Investing Activities (16) (177)
Cash provided by Financing Activities 2,716 4,344
-------- -------
Change in cash ($57) ($20)
======== =======
The working capital deficit increased by approximately $2.8 million from
$10.6 million in the first quarter of 1999 to $13.4 million in the first quarter
of 2000. The majority of this increase is represented by the principal payments
of long-term debt becoming current.
Long-term debt consists of borrowings under the Company's Revolving Credit
and Term Loan Agreement ("Agreement"). The proceeds of the term loan were
received in second quarter 1999. Quarterly principal payments of $750,000 under
the term loan portion of the Agreement will commence with the first payment due
June 30, 2000 and will continue through September 30, 2001. Quarterly payments
of $1,000,000 will commence with payment due December 31, 2001 and will continue
through September 30, 2003. Quarterly payments of $1,250,000 will commence with
payment due December 31, 2003 and will end with a final principal payment on
March 31, 2004. During the first quarter of 2000, the Company increased its
borrowings under the revolving credit portion of the
-12-
<PAGE>
Agreement by $2,950,000. At March 27, 2000, the Company had outstanding
borrowings of $22,900,000 under the Agreement and approximately $17,000,000 in
available credit. Proceeds received from the revolving credit portion of the
Agreement in the first quarter 2000 were used primarily to fund capital
expenditures and pre-opening expenses for at least four new restaurants to open
in 2000. The Company was in compliance with all covenants of the Agreement
through March 27, 2000.
Capital expenditures for the first quarter of 2000 were primarily for the
remodeling of several restaurants and the construction of a new Angelo and
Maxie's to open in June. Capital expenditures for each of the remaining three
quarters of 2000 are expected to increase with expansion of the Angelo and
Maxie's concept.
In conjunction with the 1999 restructuring, the Company intends to dispose
of the nine remaining restaurant properties during fiscal year 2000. Cash
proceeds upon the sale of all properties are estimated at $2 million. Management
is actively pursuing reasonable purchase offers on each property; however, no
assurance can be given as to the likelihood or timing of such sales or that
estimated proceeds will be realized.
The Company owns the land and buildings for five restaurant properties for
which management is evaluating sale-leaseback opportunities. If the transaction
was to materialize, preliminary estimated proceeds on this transaction range
between $14 million and $17 million. Management is currently evaluating this
decision. No assurance can be given as to the likelihood or timing of such
transactions or that estimated proceeds will be realized.
In the opinion of management, cash flows from operations, availability
under the agreement, and proceeds from the sale of certain assets will be
sufficient to fund working capital and regular capital expenditure commitments
for the next twelve months. The Company currently projects 2000 capital
expenditures to be approximately $15 million, however, this amount may vary
depending on several factors. These factors include, but are not limited to, the
timing of construction activities and compliance with financial covenants under
the Agreement. In order to fully implement the remodeling and expansion program,
the Company may require alternative sources of long-term financing. However, no
assurance can be given that such financing will be available or that it will be
available on terms satisfactory to the Company.
Seasonality
- -----------
Historically, the Company's business is seasonal in nature with revenues
and net income for the second and third quarters being greater than in the first
and fourth quarters.
Other Information
- -----------------
Certain of the statements contained in this report may be forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking statements
include financial projections, estimates and statements regarding plans,
objectives and expectations of the Company and its management. Examples of
certain forward-looking statements are the Company's intentions and abilities to
dispose of assets, remodel assets, or acquire assets, the intentions and
abilities to increase or decrease outstanding borrowings, the intentions and
abilities to control or mitigate changes in any operating costs, and the
intentions and abilities to maintain current levels of comparable restaurant
revenues or operating results. Although the Company
-13-
<PAGE>
believes that the expectations reflected in all such forward-looking statements
are based upon reasonable assumptions, it can give no assurance that its
expectations will be achieved. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Some of the known and unknown risks,
uncertainties and other factors referred to above include, but are not limited
to, the following: changes in customer demand due to economic factors,
competitive factors, pricing pressures, availability of employees, changes in
demographic trends, the ability to open new restaurants successfully and to
successfully integrate any acquired businesses, litigation involving employment,
liability and other issues, weather and other acts of God.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
Exhibit No. 27 Financial Data Schedule (required for electronic
filing only).
(b) Reports on Form 8-K. No reports on Form 8-K were filed during the
quarter of which this report is filed.
-14-
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHART HOUSE ENTERPRISES, INC. (Registrant)
Date: May 11, 2000 By: /s/ THOMAS J. WALTERS
---------------------
Thomas J. Walters
President and Chief Executive Officer
By: /s/ WILLIAM M. SULLIVAN
-----------------------
William M. Sullivan
Executive Vice President and Chief Financial
Officer
-15-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-25-2000
<PERIOD-START> DEC-28-1999
<PERIOD-END> MAR-27-2000
<CASH> 367
<SECURITIES> 0
<RECEIVABLES> 2,507
<ALLOWANCES> 0
<INVENTORY> 2,062
<CURRENT-ASSETS> 6,180
<PP&E> 112,693
<DEPRECIATION> 43,675
<TOTAL-ASSETS> 100,717
<CURRENT-LIABILITIES> 19,567
<BONDS> 0
0
0
<COMMON> 118
<OTHER-SE> 55,934
<TOTAL-LIABILITY-AND-EQUITY> 100,717
<SALES> 32,880
<TOTAL-REVENUES> 32,880
<CGS> 10,740
<TOTAL-COSTS> 20,253
<OTHER-EXPENSES> 7,410
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 545
<INCOME-PRETAX> (237)
<INCOME-TAX> 0
<INCOME-CONTINUING> (237)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (237)
<EPS-BASIC> (.02)
<EPS-DILUTED> (.02)
</TABLE>
