Quantitative and Qualitative Disclosures of Market Risks
−Removed: Impact of Inflation.
−Removed: The primary inflationary factors affecting our and our franchisees’ operations are food and beverage costs, labor costs, energy costs, and the costs and materials used in the construction of new restaurants.
−Removed: Our restaurant operations are subject to federal and state minimum wage laws governing such matters as working conditions, overtime and tip credits.
−Removed: Significant numbers of our and our franchisees’ restaurant personnel are paid at rates related to the federal and/or state minimum wage and, accordingly, increases in the minimum wage increase our and our franchisees’ labor costs.
−Removed: To the extent permitted by competition and the economy, we have mitigated increased costs by increasing menu prices and may continue to do so if deemed necessary in future years.
−Removed: Substantial increases in costs and expenses could impact our operating results to the extent such increases cannot be passed through to our customers.
−Removed: Historically, inflation has not had a material effect on our results of operations.
−Removed: Severe increases in inflation, however, could affect the global and U.S.
−Removed: economies and could have an adverse impact on our business, financial condition, and results of operations.
Commodity Price Risk.
1 unchanged sentence
Many of the food products purchased by us are affected by weather, production, availability, and other factors outside our control.
−Removed: Although we attempt to minimize the effect of price volatility by negotiating fixed price contracts for the supply of key ingredients, there are no established fixed price markets for bone-in chicken wings so we are subject to prevailing market conditions.
+Added: Although we attempt to minimize the effect of price volatility by negotiating fixed price contracts for the supply of key ingredients, there are no established fixed price markets for bone-in chicken wings, and as a result we are subject to prevailing market conditions.
Bone-in chicken wings accounted for approximately 27.4% and 28.2% of our company-owned restaurant costs of sales in fiscal years 2020 and 2019.
3 unchanged sentences
Our long-term debt, including current portion, consisted entirely of the $480.0 million incurred under the 2020 Notes as of December 26, 2020 (excluding unamortized debt issuance costs).
−Removed: The Company’s predominantly fixed-rate debt structure has reduced its exposure to interest rate increases that could adversely affect its earnings and cash flows, but the Company remains exposed to changes in market interest rates reflected in the fair value of the debt and to the risk that the Company may need to refinance maturing debt with new debt as a higher rate.
+Added: The Company’s predominantly fixed-rate debt structure has reduced its exposure to interest rate increases that could adversely affect its earnings and cash flows, but the Company remains exposed to changes in market interest rates reflected in the fair value of the debt and to the risk that the Company may need to refinance maturing debt with new debt at a higher rate.
The Company is exposed to interest rate increases under the 2020 Variable Funding Notes;
2 unchanged sentences
Information with respect to this Item is set forth beginning on page F-1.
−Removed: See “Item 15 - Exhibits and Financial Schedule” below.
+Added: See “ Item 15 - Exhibits and Financial Statement Schedules ” below.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.