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Income Taxes
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6 Months Ended |
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Jun. 29, 2014
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| Income Tax Disclosure [Abstract] | |
| Income Taxes |
INCOME TAXES
The effective income tax rate for the twenty-six weeks ended June 29, 2014 and June 30, 2013 was 29.9% and 27.2%, respectively. The difference between the effective income tax rate and the statutory rate of 35% is mainly attributable to employment tax credits attributable to employment taxes paid on employee tips. However, the lower rate during the twenty-six weeks ended June 30, 2013, was primarily attributable to the favorable impact of a one time adjustment made for these incremental employment tax credits for the prior year as well as the previous open tax years, which resulted in a $556,000 net favorable impact in net income during the twenty-six weeks ended June 30, 2013 which was partially offset by the unfavorable impact of the non-tax deductible secondary offering costs incurred during the same period .
Since the Company has net operating loss carry forwards, the net favorable tax benefit mentioned above primarily increased the general business credits deferred tax asset.
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