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฀
49
looking฀ statements.฀ The฀ risks,฀ uncertainties฀ and฀ assumptions฀ that฀ are฀ involved฀ in฀ our฀ forward-looking฀
statements฀include,฀but฀are฀not฀limited฀to:฀
฀
•
aggressive฀changes฀in฀pricing฀or฀other฀marketing฀or฀promotional฀strategies฀by฀competitors฀which฀
may฀ adversely฀ affect฀ sales;฀ and฀ new฀ product฀ and฀ concept฀ developments฀ by฀ food฀ industry฀
competitors;฀
•
changes฀ in฀ consumer฀ preferences฀ and฀ adverse฀ general฀ economic฀ and฀ political฀ conditions,฀
including฀increasing฀tax฀rates,฀and฀their฀resulting฀impact฀on฀consumer฀buying฀habits;฀
•
the฀impact฀that฀product฀recalls,฀food฀quality฀or฀safety฀issues,฀and฀general฀public฀health฀concerns฀
could฀have฀on฀our฀restaurants;฀
•
failure฀to฀maintain฀our฀brand฀strength฀and฀quality฀reputation;฀
•
the฀ability฀of฀the฀Company฀and฀its฀franchisees฀to฀meet฀planned฀growth฀targets฀and฀operate฀new฀
and฀existing฀restaurants฀profitably;฀
•
increases฀in฀or฀sustained฀high฀costs฀of฀food฀ingredients฀and฀other฀commodities;฀
•
disruption฀ of฀ our฀ supply฀ chain฀ or฀ our฀ commissary฀ operations฀ due฀ to฀ sole฀ or฀ limited฀ source฀ of฀
suppliers฀or฀weather,฀drought,฀disease฀or฀other฀disruption฀beyond฀our฀control;฀
•
increased฀ risks฀ associated฀ with฀ our฀ international฀ operations,฀ including฀ economic฀ and฀ political฀
conditions฀in฀our฀international฀ markets฀ and฀difficulty฀ in฀meeting฀planned฀sales฀ targets฀and฀ new฀
store฀ growth฀ for฀ our฀ international฀ operations,฀ including฀ our฀ expansion฀ into฀ emerging฀ or฀
underpenetrated฀markets,฀such฀as฀China,฀where฀we฀have฀a฀Company-owned฀presence.฀Based฀on฀
prior฀experience฀in฀underpenetrated฀markets,฀operating฀losses฀are฀likely฀to฀occur฀as฀the฀market฀is฀
being฀established;฀
•
increased฀ employee฀ compensation,฀ benefits,฀ insurance,฀ tax฀ rates,฀ regulatory฀ compliance฀ and฀
similar฀costs,฀including฀increased฀costs฀resulting฀from฀federal฀health฀care฀legislation;฀
•
the฀credit฀performance฀of฀our฀franchise฀loan฀program;฀
•
the฀ impact฀ of฀ the฀ resolution฀ of฀ current฀ or฀ future฀ claims฀ and฀ litigation,฀ and฀ current฀ or฀ proposed฀
legislation฀impacting฀our฀business;฀
•
the฀impact฀of฀changes฀in฀currency฀exchange฀and฀interest฀rates;฀
•
failure฀to฀effectively฀execute฀succession฀planning,฀and฀our฀reliance฀on฀the฀services฀of฀our฀Founder฀
and฀Chief฀Executive฀Officer,฀who฀also฀serves฀as฀our฀brand฀spokesperson;฀
•
disruption฀of฀critical฀business฀or฀information฀technology฀systems,฀and฀risks฀associated฀with฀data฀
privacy฀ and฀ ฀ security฀ breaches,฀ including฀ theft฀ of฀ Company฀ and฀ customer฀ information.฀ This฀
would฀include฀the฀increased฀risk฀associated฀with฀the฀planned฀rollout฀of฀ our฀new฀domestic฀ POS฀
system.฀If฀prolonged฀and฀widespread฀technological฀problems฀are฀experienced฀during฀the฀rollout,฀
our฀ domestic฀ corporate฀ and฀ franchise฀ operations฀ could฀ be฀ disrupted,฀ which฀ could฀ adversely฀
impact฀sales.฀฀
฀
These฀and฀other฀risk฀factors฀are฀discussed฀in฀detail฀in฀“Part฀I.฀Item฀1A.฀–฀Risk฀Factors”฀of฀this฀Annual฀
Report฀ on฀ Form฀ 10-K.฀ We฀ undertake฀ no฀ obligation฀to฀ update฀ publicly฀ any฀ forward-looking฀ statements,฀
whether฀as฀a฀result฀of฀future฀events,฀new฀information฀or฀otherwise,฀except฀as฀required฀by฀law.฀
฀
Item฀7A.฀฀Quantitative฀and฀Qualitative฀Disclosures฀About฀Market฀Risk฀
฀
Interest฀Rate฀Risk฀
฀
Our฀debt฀is฀comprised฀entirely฀of฀a฀revolving฀credit฀facility.฀On฀April฀30,฀2013,฀we฀amended฀and฀restated฀
our฀revolving฀credit฀facility฀to฀increase฀the฀amount฀available฀for฀borrowing฀thereunder฀to฀$300฀million,฀
from฀$175฀ million,฀and฀extend฀the฀maturity฀date฀to฀April฀30,฀2018.฀The฀outstanding฀balance฀under฀this฀
facility฀was฀ $157.9฀million฀as฀ of฀December฀29,฀ 2013฀and฀$88.3฀ million฀as฀of฀December฀ 30,฀2012.฀The฀
interest฀rate฀charged฀on฀outstanding฀balances฀is฀LIBOR฀plus฀75฀to฀175฀basis฀points.฀The฀commitment฀fee฀
on฀the฀unused฀balance฀ranges฀from฀15฀to฀25฀basis฀points.฀