Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 2, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BJRI | |
Entity Registrant Name | BJs RESTAURANTS INC | |
Entity Central Index Key | 0001013488 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 20,734,231 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 02, 2019 | Jan. 01, 2019 | Apr. 03, 2018 | Jan. 02, 2018 | |
Current assets: | |||||
Cash and cash equivalents | $ 25,673 | $ 29,224 | |||
Accounts and other receivables, net | 15,440 | 31,190 | |||
Inventories, net | 10,678 | 10,133 | |||
Prepaid expenses and other current assets | 6,548 | 7,940 | |||
Total current assets | 58,339 | 78,487 | |||
Property and equipment, net | 582,509 | 582,754 | |||
Operating lease assets | 380,240 | ||||
Goodwill | 4,673 | 4,673 | |||
Other assets, net | 32,487 | 29,193 | |||
Total assets | 1,058,248 | 695,107 | |||
Current liabilities: | |||||
Accounts payable | [1] | 32,942 | 36,505 | ||
Accrued expenses | 88,939 | 113,920 | |||
Current operating lease obligations | 26,013 | ||||
Total current liabilities | 147,894 | 150,425 | |||
Long-term operating lease obligations | 446,081 | ||||
Deferred income taxes | 22,132 | 15,977 | |||
Deferred rent | 35,088 | ||||
Deferred lease incentives | 54,264 | ||||
Long-term debt | 102,000 | 95,000 | |||
Other liabilities | 10,873 | 35,132 | |||
Total liabilities | 728,980 | 385,886 | |||
Commitments and contingencies | |||||
Shareholders’ equity: | |||||
Preferred stock, 5,000 shares authorized, none issued or outstanding | |||||
Common stock, no par value, 125,000 shares authorized and 20,909 and 21,058 shares issued and outstanding as of April 2, 2019 and January 1, 2019, respectively | 0 | 0 | |||
Capital surplus | 61,683 | 64,342 | |||
Retained earnings | 267,585 | 244,879 | |||
Total shareholders’ equity | 329,268 | 309,221 | $ 268,787 | $ 258,729 | |
Total liabilities and shareholders’ equity | $ 1,058,248 | $ 695,107 | |||
[1] | Included in accounts payable as of April 2, 2019 and January 1, 2019 is $4,817 and $6,110, respectively, of related party trade payables. See Note 6 for further information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 02, 2019 | Jan. 01, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 20,909,000 | 21,058,000 |
Common stock, shares outstanding | 20,909,000 | 21,058,000 |
Accounts payable, related party trade payables | $ 4,817 | $ 6,110 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Apr. 02, 2019 | Apr. 03, 2018 | ||
Income Statement [Abstract] | |||
Revenues | $ 290,554 | $ 278,523 | |
Restaurant operating costs (excluding depreciation and amortization): | |||
Cost of sales | [1] | 73,326 | 69,971 |
Labor and benefits | 105,221 | 100,433 | |
Occupancy and operating | [1] | 61,591 | 57,503 |
General and administrative | 16,896 | 15,131 | |
Depreciation and amortization | 17,642 | 17,454 | |
Restaurant opening | 448 | 597 | |
Loss on disposal of assets | 1,645 | 1,061 | |
Total costs and expenses | 276,769 | 262,150 | |
Income from operations | 13,785 | 16,373 | |
Other income (expense): | |||
Interest expense, net | (1,070) | (1,387) | |
Other income (expense), net | 1,097 | (100) | |
Total other income (expense) | 27 | (1,487) | |
Income before income taxes | 13,812 | 14,886 | |
Income tax expense | 948 | 222 | |
Net income | $ 12,864 | $ 14,664 | |
Net income per share: | |||
Basic | $ 0.61 | $ 0.71 | |
Diluted | $ 0.60 | $ 0.70 | |
Weighted average number of shares outstanding: | |||
Basic | 21,056 | 20,586 | |
Diluted | 21,448 | 21,063 | |
Cash dividends declared per common share | $ 0.12 | $ 0.11 | |
[1] | Related party costs included in cost of sales are $21,762 and $21,302 for the thirteen weeks ended April 2, 2019 and April 3, 2018, respectively. Related party costs included in occupancy and operating are $2,427 and $2,463 for the thirteen weeks ended April 2, 2019 and April 3, 2018, respectively. See Note 6 for further information. |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2019 | Apr. 03, 2018 | |
Income Statement [Abstract] | ||
Related party costs included in cost of sales | $ 21,762 | $ 21,302 |
Related party costs included in occupancy and operating | $ 2,427 | $ 2,463 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] |
Beginning Balance at Jan. 02, 2018 | $ 258,729 | $ 68,904 | $ 189,825 | |
Beginning Balance (in shares) at Jan. 02, 2018 | 20,485 | |||
Exercise of stock options | 5,900 | $ 9,443 | (3,543) | |
Exercise of stock options (in shares) | 283 | |||
Issuance of restricted stock units | (365) | $ 284 | (649) | |
Issuance of restricted stock units (in shares) | 36 | |||
Repurchase and retirement of common stock | (5,566) | $ (9,727) | 4,161 | |
Repurchase and retirement of common stock (in shares) | (135) | |||
Stock-based compensation | 2,376 | 2,376 | ||
Cumulative effect of adopting | Revenue Recognition Standard [Member] | (4,598) | (4,598) | ||
Dividends paid or payable | (2,353) | (2,353) | ||
Net income | 14,664 | 14,664 | ||
Ending Balance at Apr. 03, 2018 | 268,787 | 67,088 | 201,699 | |
Ending Balance (in shares) at Apr. 03, 2018 | 20,669 | |||
Beginning Balance at Jan. 01, 2019 | 309,221 | 64,342 | 244,879 | |
Beginning Balance (in shares) at Jan. 01, 2019 | 21,058 | |||
Exercise of stock options | $ 514 | $ 683 | (169) | |
Exercise of stock options (in shares) | 16 | 16 | ||
Issuance of restricted stock units | $ (1,003) | $ 3,649 | (4,652) | |
Issuance of restricted stock units (in shares) | 84 | |||
Repurchase and retirement of common stock | $ (11,894) | $ (4,332) | (7,562) | |
Repurchase and retirement of common stock (in shares) | (200) | (249) | ||
Stock-based compensation | $ 2,162 | 2,162 | ||
Cumulative effect of adopting | Lease standard [Member] | 19,963 | 19,963 | ||
Dividends paid or payable | (2,559) | (2,559) | ||
Net income | 12,864 | 12,864 | ||
Ending Balance at Apr. 02, 2019 | $ 329,268 | $ 61,683 | $ 267,585 | |
Ending Balance (in shares) at Apr. 02, 2019 | 20,909 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 02, 2019 | Apr. 03, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends paid or payable | $ 0.12 | $ 0.11 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2019 | Apr. 03, 2018 | ||
Cash flows from operating activities: | |||
Net income | $ 12,864 | $ 14,664 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 17,642 | 17,454 | |
Non-cash lease expense | 6,595 | ||
Deferred income taxes | (344) | (2,490) | |
Stock-based compensation expense | 2,084 | 2,283 | |
Loss on disposal of assets | 1,645 | 1,061 | |
Changes in assets and liabilities: | |||
Accounts and other receivables | 16,750 | 2,977 | |
Landlord contribution for tenant improvements | (2,637) | ||
Inventories, net | (545) | 354 | |
Prepaid expenses and other current assets | 1,304 | (397) | |
Other assets, net | (3,767) | (604) | |
Accounts payable | (4,292) | (2,815) | |
Accrued expenses | (18,120) | (5,614) | |
Operating lease obligations | (12,552) | ||
Deferred rent | 509 | ||
Deferred lease incentives | 1,356 | ||
Other liabilities | 2,792 | (347) | |
Net cash provided by operating activities | 22,056 | 25,754 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (17,674) | (14,064) | |
Net cash used in investing activities | (17,674) | (14,064) | |
Cash flows from financing activities: | |||
Borrowings on line of credit | 260,500 | 485,500 | |
Payments on line of credit | (253,500) | (490,500) | |
Taxes paid on vested stock units under employee plans | (1,003) | (365) | |
Proceeds from exercise of stock options | 514 | 5,900 | |
Cash dividends paid | (2,550) | (2,289) | |
Repurchases of common stock | (11,894) | (5,566) | |
Net cash used in financing activities | (7,933) | (7,320) | |
Net (decrease) increase in cash and cash equivalents | (3,551) | 4,370 | |
Cash and cash equivalents, beginning of period | 29,224 | 24,335 | |
Cash and cash equivalents, end of period | 25,673 | 28,705 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 1,184 | 2,702 | |
Cash paid for interest, net of capitalized interest | 1,026 | 1,147 | |
Supplemental disclosure of non-cash operating, investing and financing activities: | |||
Operating lease assets obtained in exchange for operating lease obligations | 9,800 | ||
Property and equipment acquired and included in accounts payable | 11,089 | 5,596 | |
Stock-based compensation capitalized | [1] | $ 78 | $ 93 |
[1] | Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on the Consolidated Balance Sheets. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 02, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of BJ’s Restaurants, Inc. (referred to herein as the “Company,” “we,” “us” and “our”) and our wholly owned subsidiaries. The consolidated financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of our financial condition, results of operations, cash flows for the period and statements of shareholders’ equity. Our consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in consolidated financial statements in accordance with U.S. GAAP have been omitted pursuant to the U.S. Securities and Exchange Commission (“SEC”) rules. The preparation of financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual amounts could differ from these estimates. A description of our accounting policies and other financial information is included in our audited consolidated financial statements filed with the SEC on Form 10-K for the year ended January 1, 2019. The disclosures included in our accompanying interim consolidated financial statements and footnotes should be read in conjunction with our consolidated financial statements and notes thereto included in the Annual Report on Form 10-K and our other reports filed from time to time with the Securities and Exchange Commission. Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This update clarifies the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 will be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We will adopt ASU 2018-15 the first quarter of fiscal 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. Recently Adopted Accounting Standards On January 2, 2019, the first day of fiscal 2019, we adopted ASU 2016-02, Leases (Topic 842), along with related clarifications and improvements. This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The guidance requires disclosure of key information about leasing arrangements that is intended to give financial statement users the ability to assess the amount, timing, and potential uncertainty of cash flows related to leases. We elected the optional transition method to apply the standard as of the effective date and therefore, we have not applied the standard to the comparative periods presented on our consolidated financial statements. Our practical expedient implications as of January 2, 2019 were as follows: Practical expedient package We have not reassessed whether any expired or existing contracts are, or contain, leases. We have not reassessed the lease classification for any expired or existing leases. We have not reassessed initial direct costs for any expired or existing leases. Hindsight practical expedient We have not elected the hindsight practical expedient, which permits the use of hindsight when determining lease term, including option periods, and impairment of operating lease assets. Related to the adoption of Topic 842, our policy elections were as follows: Separation of lease and non-lease components We elected to account for lease and non-lease components as a single component for office and beverage gas equipment Short-term policy We have elected the short-term lease recognition exemption for all classes of underlying assets. E for short-term leases eases with an initial term of 12 months or less and that do not include an option to purchase the underlying asset that we are reasonably certain to exercise are not recorded on the balance sheet. The impact on our consolidated opening balance sheet was as follows: January 1, 2019 Topic 842 Adjustments January 2, 2019 (1) (unaudited) Assets Current assets: Cash and cash equivalents $ 29,224 $ — $ 29,224 Accounts and other receivables, net 31,190 — 31,190 Inventories, net 10,133 — 10,133 Prepaid expenses and other current assets 7,940 — 7,940 Total current assets 78,487 — 78,487 Property and equipment, net 582,754 — 582,754 Operating lease assets — 377,035 377,035 Goodwill 4,673 — 4,673 Other assets, net 29,193 — 29,193 Total assets $ 695,107 $ 377,035 $ 1,072,142 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 36,505 $ — $ 36,505 Accrued expenses 113,920 (6,869 ) 107,051 Current operating lease obligation — 30,529 30,529 Total current liabilities 150,425 23,660 174,085 Long-term operating lease obligation — 443,316 443,316 Deferred income taxes 15,977 6,499 22,476 Deferred rent 35,088 (35,088 ) — Deferred lease incentives 54,264 (54,264 ) — Long-term debt 95,000 — 95,000 Other liabilities 35,132 (27,051 ) 8,081 Total liabilities 385,886 357,072 742,958 Commitments and contingencies Shareholders’ equity: Preferred stock, 5,000 shares authorized, none issued or outstanding — — — Common stock, no par value, 125,000 shares authorized and 21,058 shares issued and outstanding as of January 1, 2019 and January 2, 2019 — — — Capital surplus 64,342 — 64,342 Retained earnings 244,879 19,963 (2) 264,842 Total shareholders’ equity 309,221 19,963 329,184 Total liabilities and shareholders’ equity $ 695,107 $ 377,035 $ 1,072,142 (1) Adjustments represent non-cash activities for Consolidated Statements of Cash Flow purposes. (2) Primarily composed of an increase of $28.8 million for deferred sale-leaseback gains no longer amortizable, a decrease of $2.3 million to impair the right-of-use asset related to previously impaired properties and a $6.5 million decrease for the deferred tax impact of the cumulative effect adjustments. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 02, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. REVENUE RECOGNITION Our revenues are comprised of food and beverage sales at our restaurants. Revenues from restaurant sales are recognized when payment is tendered at the point of sale. Amounts paid with a credit card are recorded in accounts and other receivables until payment is collected from the credit card processor. We sell gift cards which do not have an expiration date and we do not deduct non-usage fees from outstanding gift card balances. Gift card sales are recorded as a liability and recognized as revenues upon redemption in our restaurants. Estimated gift card breakage is recorded as revenue and recognized in proportion to our historical redemption pattern. The estimated gift card breakage is based on when the likelihood of redemption becomes remote, which has typically been 24 months after the original gift card issuance date. Our “BJ’s Premier Rewards Plus” customer loyalty program enables participants to earn points for qualifying purchases that can be redeemed for food and beverages in the future. We allocate the transaction price between the goods delivered and the future goods that will be delivered, on a relative standalone selling price basis, and defer the revenues allocated to the points, less expected expirations, until such points are redeemed. The liability related to our gift card and loyalty program, included in “Accrued expenses,” on our Consolidated Balance Sheets is as follows (in thousands): April 2, 2019 January 1, 2019 Gift card liability $ 12,877 $ 17,201 Deferred loyalty revenue (post-adoption of ASU 2016-10) $ 10,291 $ 10,066 Revenue recognized on our Consolidated Statements of Income for the redemption of gift cards and loyalty rewards deferred at the beginning of each respective fiscal year is as follows (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Revenue recognized from gift card liability $ 7,605 $ 5,932 Revenue recognized from customer loyalty program $ 4,073 $ 2,331 |
Leases
Leases | 3 Months Ended |
Apr. 02, 2019 | |
Leases [Abstract] | |
Leases | 3. LEASES We determine if a contract contains a lease at inception. Our material operating leases consist of restaurant locations and office space. U.S. GAAP requires that our leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which we have the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All of our restaurant leases and office space are classified as operating leases. As of April 2, 2019, we did not have any finance leases. We disburse cash for leasehold improvements, furniture and fixtures and equipment to build out and equip our leased premises. Tenant improvement allowance incentives may be available to partially offset the cost of developing and opening the related restaurants, pursuant to agreed-upon terms in our leases. Tenant improvement allowances can take the form of cash payments upon the opening of the related restaurants, full or partial credits against minimum or percentage rents otherwise payable by us, or a combination thereof. All tenant improvement allowances received by us are recorded as a contra right-of-use asset and amortized over the term of the lease. The lease term used for straight-line rent expense is calculated from the commencement date (the date the lessor makes the underlying asset available for use) through the lease termination date (including any options where exercise is reasonably certain and failure to exercise such option would result in an economic penalty). We expense rent from commencement date through restaurant open date as preopening expense. Once a restaurant opens for business, we record straight-line rent expense plus any additional variable contingent rent expense to the extent it is due under the lease agreement. There is potential for variability in the rent holiday period, which begins on the commencement date and ends on the restaurant open date, during which no cash rent payments are typically due under the terms of the lease. Factors that may affect the length of the rent holiday period generally pertain to construction related delays. Extension of the rent holiday period due to delays in restaurant opening will result in greater preopening rent expense recognized during the rent holiday period and lesser occupancy expense during the rest of the lease term (post-opening). We record total rent payable during the lease term, including rent escalations in which the amount of future rent is certain or fixed on the straight-line basis over the term of the lease (including the rent holiday period beginning upon our possession of the premises, and any fixed payments stated in the lease). A related lease liability is recorded on the balance sheet at the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. In addition, a right-of-use asset is recorded as the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any lease incentives received. The difference between the minimum rents paid and the straight-line rent is reflected within the associated right-of-use asset. Certain leases contain provisions that require additional rent payments based upon restaurant sales volume (“variable lease cost”). Contingent rent is accrued each period as the liabilities are incurred, in addition to the straight-line rent expense noted above. This results in some variability in occupancy expense as a percentage of revenues over the term of the lease in restaurants where we pay contingent rent. Management makes judgments regarding the reasonably certain lease term for each restaurant property lease, which can impact the classification and accounting for a lease as finance or operating, the rent holiday and/or escalations in payments that are taken into consideration when calculating straight-line rent, and the term over which leasehold improvements for each restaurant are amortized. These judgments may produce materially different amounts of depreciation, amortization and rent expense than would be reported if different assumed lease terms were used. To determine the incremental borrowing rates used to discount the lease payments, the Company estimated its synthetic credit rating. Rates will be updated quarterly and have been applied based on the remaining lease term of each respective lease on the implementation date of January 2, 2019. Supplemental balance sheet information related to leases was as follows (in thousands): Operating Leases Classification April 2, 2019 Right-of-use assets Operating lease assets $ 380,240 Current lease liabilities Current operating lease obligations 26,013 Non-current lease liabilities Long-term operating lease obligations 446,081 Total lease liabilities $ 472,094 Weighted-average lease terms and discount rates as of April 2, 2019 were as follows: Weighted-average remaining lease term 12.9 Years Weighted-average discount rate 5.7% Lease cost included in “Occupancy & Operating” costs on the Consolidated Statements of Income consisted of the following (in thousands): For the Thirteen Weeks Ended April 2, 2019 Lease cost $ 13,240 Variable lease cost 855 Total lease cost $ 14,095 Supplemental disclosures of cash flow information related to leases were as follows (in thousands): For the Thirteen Weeks Ended April 2, 2019 Cash paid for operating lease obligations $ 19,229 Operating lease obligation maturities as of April 2, 2019 were as follows (in thousands): 2019 (remainder of fiscal year) $ 37,862 2020 57,084 2021 56,713 2022 56,043 2023 53,778 Thereafter 397,014 Total lease payments $ 658,494 Less: imputed interest (186,400 ) Present value of operating lease obligations $ 472,094 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Apr. 02, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 4. LONG-TERM DEBT Line of Credit Our Credit Facility, which matures on November 18, 2021, provides us with revolving loan commitments totaling $250 million, of which $50 million may be used for the issuance of letters of credit. Availability under the Credit Facility is reduced by outstanding letters of credit, which are used to support our self-insurance programs. Our obligations under the Credit Facility are unsecured. As of April 2, 2019, there were borrowings of $102.0 million and letters of credit totaling approximately $14.1 million outstanding under the Credit Facility. Available borrowings under the Credit Facility were $133.9 million as of April 2, 2019. The Credit Facility bears interest at our choice of LIBOR plus a percentage not to exceed 1.75%, or at a rate ranging from Bank of America’s prime rate to 0.75% above Bank of America’s prime rate, based on our level of lease and debt obligations as compared to EBITDA plus lease expenses. The weighted average interest rate during the thirteen weeks ended April 2, 2019 was approximately 3.4%. The Credit Facility contains provisions requiring us to maintain compliance with certain covenants, including a Fixed Charge Coverage Ratio and a Lease Adjusted Leverage Ratio. At April 2, 2019, we were in compliance with these covenants. Based on our Credit Facility agreement, adopting new accounting standards, such as ASU 2016-02, Leases (Topic 842), does not impact our compliance calculations. Interest expense and commitment fees under the Credit Facility for the thirteen weeks ended April 2, 2019 and April 3, 2018 were approximately $1.1 million and $1.4 million, respectively. We also capitalized approximately $0.07 million and $0.03 million of interest expense related to new restaurant construction during the thirteen weeks ended April 2, 2019 and April 3, 2018, respectively. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Apr. 02, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 5. NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if in-the-money stock options issued by us to sell common stock at set prices were exercised and if restrictions on restricted stock units (“RSUs”) issued by us were to lapse (collectively, equity awards) using the treasury stock method. Performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and we include these contingently issuable shares in our diluted net income calculation. Once theses performance-based RSUs vest, they are included in our basic net income per share calculation . The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards that were included in the dilutive net income per share computation (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Numerator: Net income $ 12,864 $ 14,664 Denominator: Weighted-average shares outstanding – basic 21,056 20,586 Dilutive effect of equity awards 392 477 Weighted-average shares outstanding – diluted 21,448 21,063 For the thirteen weeks ended April 2, 2019 and April 3, 2018, there were approximately 0.3 million and 0.6 million shares of common stock equivalents, respectively, that were excluded from the calculation of diluted net income per share because they are anti-dilutive. |
Related Party
Related Party | 3 Months Ended |
Apr. 02, 2019 | |
Related Party Transactions [Abstract] | |
Related Party | 6. RELATED PARTY James Dal Pozzo, the Chairman of the Board of the Jacmar Companies (“Jacmar”), is a member of our Board of Directors. Jacmar, through its affiliation with Distribution Market Advantage (“DMA”), a consortium of large, regional food distributors located throughout the United States, is currently our largest distributor of food, beverage, paper products and supplies. In 2006, we began using DMA to deliver the majority of our food products to our restaurants. In July 2017, after conducting a market evaluation, we entered into a new five-year agreement with DMA. The new agreement expires in June 2020 and automatically renews for two successive one-year periods (effectively expiring June 2022), unless either party provides a non-renewal notice 90 days prior to the end of each year. Jacmar services our restaurants in California and Nevada, while other DMA distributors service our restaurants in all other states. Under the terms of our agreement with DMA, Jacmar is required to sell products to us at the same prices as the other DMA distributors. Jacmar does not provide us with any produce, liquor, wine or beer products, all of which are provided by other third party vendors and are included in “Cost of sales” on the Consolidated Statements of Income. The cost of food, beverage, paper products and supplies provided by Jacmar included within restaurant operating costs consisted of the following (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Cost of sales: Third party suppliers $ 51,564 70.3 % $ 48,669 69.6 % Jacmar 21,762 29.7 21,302 30.4 Total cost of sales $ 73,326 100.0 % $ 69,971 100.0 % Occupancy and operating: Third party suppliers $ 59,164 96.1 % $ 55,040 95.7 % Jacmar 2,427 3.9 2,463 4.3 Total occupancy and operating $ 61,591 100.0 % $ 57,503 100.0 % The amounts included in trade payables related to Jacmar consisted of the following (in thousands): April 2, 2019 January 1, 2019 Third party suppliers $ 28,125 $ 30,395 Jacmar 4,817 6,110 Total accounts payable $ 32,942 $ 36,505 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 02, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. STOCK-BASED COMPENSATION Our current shareholder approved stock-based compensation plan is the BJ’s Restaurants, Inc. Equity Incentive Plan, formerly known as the 2005 Equity Incentive Plan (as amended from time to time, “the Plan”). Under the Plan, we may issue shares of our common stock to employees, officers, directors and consultants. We have granted incentive stock options, non-qualified stock options, and performance and time-based restricted stock units. Stock options and stock appreciation rights, if any, are charged against the Plan share reserve on the basis of one share for each share granted. Other types of grants, including RSUs, are currently charged against the Plan share reserve on the basis of 1.5 shares for each share granted. The Plan also contains other limits on the terms of incentive grants such as limits on the number that can be granted to an employee during any fiscal year. All options granted under the Plan expire within 10 years of their date of grant. Under the Plan, we issue non-qualified stock options as well as time-based and performance-based RSUs to vice presidents and above. We issue time-based RSUs and/or non-qualified stock options to other support employees. We also issue RSUs, and previously issued non-qualified stock options, in connection with the BJ’s Gold Standard Stock Ownership Program (the “GSSOP”). The GSSOP is a long-term equity incentive program for our restaurant general managers, executive kitchen managers, directors of operations and directors of kitchen operations. GSSOP grants are dependent on the length of each participant’s service with us and position. All GSSOP participants are required to remain in good standing during their vesting period. The Plan permits our Board of Directors to set the vesting terms and exercise period for awards at its discretion. Stock options and time-based RSUs vest ratably over one, three or five years for non-GSSOP participants and either cliff vest at five years or cliff vest at 33% on the third anniversary and 67% on the fifth anniversary for GSSOP participants. Performance-based RSUs generally cliff vest on the third anniversary of the grant date in an amount from 0% to 150% of the grant quantity, dependent on the level of performance target achievement. The following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Labor and benefits $ 458 $ 578 General and administrative $ 1,626 $ 1,705 Capitalized (1) $ 78 $ 93 (1) Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on the Consolidated Balance Sheets. Stock Options The fair value of each stock option was estimated on the grant date using the Black‑Scholes option-pricing model with the following weighted average assumptions: For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Expected volatility 34.5 % 33.6 % Risk free interest rate 2.5 % 2.3 % Expected option life 5 years 5 years Dividend yield 1.5 % 1.5 % Fair value of options granted $ 15.72 $ 10.75 U.S. GAAP requires us to make certain assumptions and judgments regarding the grant date fair value. These judgments include expected volatility, risk free interest rate, expected option life, and dividend yield. These estimations and judgments are determined by us using assumptions that, in many cases, are outside of our control. The changes in these variables or trends, including stock price volatility, dividend yield and risk free interest rate may significantly impact the fair value of future grants resulting in a significant impact to our financial results. The exercise price of our stock options under our stock-based compensation plan is required to equal or exceed the fair value of our common stock at market close on the option grant date or the most recent trading day when grants take place on market holidays. The following table presents stock option activity: Options Outstanding Options Exercisable Shares (in thousands) Weighted Average Exercise Price Shares (in thousands) Weighted Average Exercise Price Outstanding at January 1, 2019 588 $ 38.14 189 $ 37.41 Granted 105 53.22 Exercised (16 ) 32.62 Forfeited (6 ) 45.51 Outstanding at April 2, 2019 671 $ 40.56 352 $ 38.16 As of April 2, 2019, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $3.3 million, which is generally expected to be recognized over the next five years. Restricted Stock Units Time-Based Restricted Stock Units The following table presents time-based restricted stock unit activity: Shares (in thousands) Weighted Average Fair Value Outstanding at January 1, 2019 494 $ 40.99 Granted 83 53.22 Released (75 ) 36.51 Forfeited (16 ) 44.36 Outstanding at April 2, 2019 486 $ 43.65 The fair value of our time-based RSUs is equal to the fair value of our common stock at market close on the date of grant or the most recent trading day when grants take place on market holidays. The fair value of each time-based RSU is expensed over the vesting period (e.g., one, three or five years). As of April 2, 2019, total unrecognized stock-based compensation expense related to non-vested RSUs was approximately $11.6 million, which is generally expected to be recognized over the next five years. Performance-Based Restricted Stock Units The following table presents performance-based restricted stock unit activity: Shares (in thousands) Weighted Average Fair Value Outstanding at January 1, 2019 105 $ 38.32 Granted 31 53.22 Released (28 ) 42.41 Forfeited (3 ) 43.13 Outstanding at April 2, 2019 105 $ 41.42 The fair value of our performance-based RSUs is equal to the fair value of our common stock at market close on the date of grant or the most recent trading day when grants take place on market holidays. The fair value of each performance-based RSU is expensed based on management’s current estimate of the level that the performance goal will be achieved. As of April 2, 2019, based on |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 . INCOME TAXES We calculate our interim income tax provision in accordance with ASC Topic 270, “Interim Reporting” and ASC Topic 740, “Accounting for Income Taxes.” At the end of each interim period, we estimate the annual effective tax rate and apply that rate to our ordinary year-to-date earnings. The related tax expense or benefit is recognized in the interim period in which it occurs. In addition, the effect of changes in enacted tax laws, rates or tax status is recognized in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including the expected operating income for the year, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets generated in the current fiscal year. The accounting estimates used to compute income tax expense may change as new events occur, additional information is obtained or the tax environment changes. As of April 2, 2019, we had unrecognized tax benefits of approximately $1.6 million, of which approximately $1.1 million, if reversed, would impact our effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is the following (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Gross unrecognized tax benefits at beginning of year $ 1,532 $ 1,516 Decreases for tax positions taken in prior years (7 ) — Increases for tax positions taken in the current year 25 22 Gross unrecognized tax benefits at end of year $ 1,550 $ 1,538 Our uncertain tax positions are related to tax years that remain subject to examination by tax agencies. As of April 2, 2019, the earliest tax year still subject to examination by the Internal Revenue Service is 2015. The earliest year still subject to examination by a significant state or local taxing jurisdiction is 2014. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Apr. 02, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings | 9. LEGAL PROCEEDINGS We are subject to lawsuits, administrative proceedings and demands that arise in the ordinary course of our business and which typically involve claims from customers, employees and others related to operational, employment, real estate and intellectual property issues common to the foodservice industry. A number of these claims may exist at any given time. We are self-insured for a portion of our general liability, our employee workers’ compensation and our employment practice requirements. We maintain coverage with a third party insurer to limit our total exposure. We believe that most of our customer claims will be covered by our general liability insurance, subject to coverage limits and the portion of such claims that are self-insured. Punitive damages awards and employee unfair practice claims, however, are not covered by our general liability insurance. To date, we have not been ordered to pay punitive damages with respect to any claims, but there can be no assurance that punitive damages will not be awarded with respect to any future claims. We could be affected by adverse publicity resulting from allegations in lawsuits, claims and proceedings, regardless of whether these allegations are valid or whether we are ultimately determined to be liable. We currently believe that the final disposition of these types of lawsuits, proceedings and claims will not have a material adverse effect on our financial position, results of operations or liquidity. It is possible, however, that our future results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to lawsuits, proceedings or claims. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Apr. 02, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 10. SHAREHOLDERS’ EQUITY Stock Repurchases During the thirteen weeks ended April 2, 2019, we repurchased and retired approximately 0.2 million shares of our common stock at an average price of $47.78 per share for a total of $11.9 million, which is recorded as a reduction in common stock, with any excess charged to retained earnings. In March 2019, our Board of Directors approved an expansion of our share repurchase program by $100 million. As of April 2, 2019, we have approximately $110.3 million remaining under the current $500 million share repurchase plan approved by our Board of Directors. Cash Dividends On February 19, 2019, our Board of Directors authorized and declared a quarterly cash dividend of $0.12 per share of common stock that was paid on March 26, 2019, to shareholders of record at the close of business on March 12, 2019. While we intend to pay quarterly cash dividends, any future decisions to pay, increase or decrease cash dividends will be reviewed quarterly and declared by the Board of Directors at its discretion. Debt instruments that we enter into in the future may contain covenants that place limitations on the amount of dividends we may pay. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 02, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. SUBSEQUENT EVENTS On April 22, 2019, our Board of Directors authorized and declared a quarterly cash dividend of $0.12 per share of common stock payable on May 27, 2019, to shareholders of record at the close of business on May 13, 2019. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 02, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements include the accounts of BJ’s Restaurants, Inc. (referred to herein as the “Company,” “we,” “us” and “our”) and our wholly owned subsidiaries. The consolidated financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of our financial condition, results of operations, cash flows for the period and statements of shareholders’ equity. Our consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in consolidated financial statements in accordance with U.S. GAAP have been omitted pursuant to the U.S. Securities and Exchange Commission (“SEC”) rules. The preparation of financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual amounts could differ from these estimates. A description of our accounting policies and other financial information is included in our audited consolidated financial statements filed with the SEC on Form 10-K for the year ended January 1, 2019. The disclosures included in our accompanying interim consolidated financial statements and footnotes should be read in conjunction with our consolidated financial statements and notes thereto included in the Annual Report on Form 10-K and our other reports filed from time to time with the Securities and Exchange Commission. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This update clarifies the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU 2018-15 will be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We will adopt ASU 2018-15 the first quarter of fiscal 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards On January 2, 2019, the first day of fiscal 2019, we adopted ASU 2016-02, Leases (Topic 842), along with related clarifications and improvements. This pronouncement requires lessees to recognize a liability for lease obligations, which represents the discounted obligation to make future lease payments, and a corresponding right-of-use asset on the balance sheet. The guidance requires disclosure of key information about leasing arrangements that is intended to give financial statement users the ability to assess the amount, timing, and potential uncertainty of cash flows related to leases. We elected the optional transition method to apply the standard as of the effective date and therefore, we have not applied the standard to the comparative periods presented on our consolidated financial statements. Our practical expedient implications as of January 2, 2019 were as follows: Practical expedient package We have not reassessed whether any expired or existing contracts are, or contain, leases. We have not reassessed the lease classification for any expired or existing leases. We have not reassessed initial direct costs for any expired or existing leases. Hindsight practical expedient We have not elected the hindsight practical expedient, which permits the use of hindsight when determining lease term, including option periods, and impairment of operating lease assets. Related to the adoption of Topic 842, our policy elections were as follows: Separation of lease and non-lease components We elected to account for lease and non-lease components as a single component for office and beverage gas equipment Short-term policy We have elected the short-term lease recognition exemption for all classes of underlying assets. E for short-term leases eases with an initial term of 12 months or less and that do not include an option to purchase the underlying asset that we are reasonably certain to exercise are not recorded on the balance sheet. The impact on our consolidated opening balance sheet was as follows: January 1, 2019 Topic 842 Adjustments January 2, 2019 (1) (unaudited) Assets Current assets: Cash and cash equivalents $ 29,224 $ — $ 29,224 Accounts and other receivables, net 31,190 — 31,190 Inventories, net 10,133 — 10,133 Prepaid expenses and other current assets 7,940 — 7,940 Total current assets 78,487 — 78,487 Property and equipment, net 582,754 — 582,754 Operating lease assets — 377,035 377,035 Goodwill 4,673 — 4,673 Other assets, net 29,193 — 29,193 Total assets $ 695,107 $ 377,035 $ 1,072,142 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 36,505 $ — $ 36,505 Accrued expenses 113,920 (6,869 ) 107,051 Current operating lease obligation — 30,529 30,529 Total current liabilities 150,425 23,660 174,085 Long-term operating lease obligation — 443,316 443,316 Deferred income taxes 15,977 6,499 22,476 Deferred rent 35,088 (35,088 ) — Deferred lease incentives 54,264 (54,264 ) — Long-term debt 95,000 — 95,000 Other liabilities 35,132 (27,051 ) 8,081 Total liabilities 385,886 357,072 742,958 Commitments and contingencies Shareholders’ equity: Preferred stock, 5,000 shares authorized, none issued or outstanding — — — Common stock, no par value, 125,000 shares authorized and 21,058 shares issued and outstanding as of January 1, 2019 and January 2, 2019 — — — Capital surplus 64,342 — 64,342 Retained earnings 244,879 19,963 (2) 264,842 Total shareholders’ equity 309,221 19,963 329,184 Total liabilities and shareholders’ equity $ 695,107 $ 377,035 $ 1,072,142 (1) Adjustments represent non-cash activities for Consolidated Statements of Cash Flow purposes. (2) Primarily composed of an increase of $28.8 million for deferred sale-leaseback gains no longer amortizable, a decrease of $2.3 million to impair the right-of-use asset related to previously impaired properties and a $6.5 million decrease for the deferred tax impact of the cumulative effect adjustments. |
Net Income Per Share | Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if in-the-money stock options issued by us to sell common stock at set prices were exercised and if restrictions on restricted stock units (“RSUs”) issued by us were to lapse (collectively, equity awards) using the treasury stock method. Performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and we include these contingently issuable shares in our diluted net income calculation. Once theses performance-based RSUs vest, they are included in our basic net income per share calculation . |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Apr. 02, 2019 | |
ASU 2016-02 | |
Schedule of Impact on Consolidated Opening Balance Sheet | The impact on our consolidated opening balance sheet was as follows: January 1, 2019 Topic 842 Adjustments January 2, 2019 (1) (unaudited) Assets Current assets: Cash and cash equivalents $ 29,224 $ — $ 29,224 Accounts and other receivables, net 31,190 — 31,190 Inventories, net 10,133 — 10,133 Prepaid expenses and other current assets 7,940 — 7,940 Total current assets 78,487 — 78,487 Property and equipment, net 582,754 — 582,754 Operating lease assets — 377,035 377,035 Goodwill 4,673 — 4,673 Other assets, net 29,193 — 29,193 Total assets $ 695,107 $ 377,035 $ 1,072,142 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 36,505 $ — $ 36,505 Accrued expenses 113,920 (6,869 ) 107,051 Current operating lease obligation — 30,529 30,529 Total current liabilities 150,425 23,660 174,085 Long-term operating lease obligation — 443,316 443,316 Deferred income taxes 15,977 6,499 22,476 Deferred rent 35,088 (35,088 ) — Deferred lease incentives 54,264 (54,264 ) — Long-term debt 95,000 — 95,000 Other liabilities 35,132 (27,051 ) 8,081 Total liabilities 385,886 357,072 742,958 Commitments and contingencies Shareholders’ equity: Preferred stock, 5,000 shares authorized, none issued or outstanding — — — Common stock, no par value, 125,000 shares authorized and 21,058 shares issued and outstanding as of January 1, 2019 and January 2, 2019 — — — Capital surplus 64,342 — 64,342 Retained earnings 244,879 19,963 (2) 264,842 Total shareholders’ equity 309,221 19,963 329,184 Total liabilities and shareholders’ equity $ 695,107 $ 377,035 $ 1,072,142 (1) Adjustments represent non-cash activities for Consolidated Statements of Cash Flow purposes. (2) Primarily composed of an increase of $28.8 million for deferred sale-leaseback gains no longer amortizable, a decrease of $2.3 million to impair the right-of-use asset related to previously impaired properties and a $6.5 million decrease for the deferred tax impact of the cumulative effect adjustments. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 02, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Gift Card Liability and Loyalty Program Included in Accrued Expenses on Consolidated Balance Sheets | The liability related to our gift card and loyalty program, included in “Accrued expenses,” on our Consolidated Balance Sheets is as follows (in thousands): April 2, 2019 January 1, 2019 Gift card liability $ 12,877 $ 17,201 Deferred loyalty revenue (post-adoption of ASU 2016-10) $ 10,291 $ 10,066 |
Revenue Recognized on Consolidated Statements of Income for Redemption of Gift Cards and Loyalty Rewards Deferred | Revenue recognized on our Consolidated Statements of Income for the redemption of gift cards and loyalty rewards deferred at the beginning of each respective fiscal year is as follows (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Revenue recognized from gift card liability $ 7,605 $ 5,932 Revenue recognized from customer loyalty program $ 4,073 $ 2,331 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 02, 2019 | |
Leases [Abstract] | |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows (in thousands): Operating Leases Classification April 2, 2019 Right-of-use assets Operating lease assets $ 380,240 Current lease liabilities Current operating lease obligations 26,013 Non-current lease liabilities Long-term operating lease obligations 446,081 Total lease liabilities $ 472,094 |
Summary of Weighted-Average Lease Terms and Discount Rates | Weighted-average lease terms and discount rates as of April 2, 2019 were as follows: Weighted-average remaining lease term 12.9 Years Weighted-average discount rate 5.7% |
Summary of Lease Cost | Lease cost included in “Occupancy & Operating” costs on the Consolidated Statements of Income consisted of the following (in thousands): For the Thirteen Weeks Ended April 2, 2019 Lease cost $ 13,240 Variable lease cost 855 Total lease cost $ 14,095 |
Summary of Supplemental Disclosures of Cash Flow Information Related to Leases | Supplemental disclosures of cash flow information related to leases were as follows (in thousands): For the Thirteen Weeks Ended April 2, 2019 Cash paid for operating lease obligations $ 19,229 |
Summary of Operating Lease Obligation Maturities | Operating lease obligation maturities as of April 2, 2019 were as follows (in thousands): 2019 (remainder of fiscal year) $ 37,862 2020 57,084 2021 56,713 2022 56,043 2023 53,778 Thereafter 397,014 Total lease payments $ 658,494 Less: imputed interest (186,400 ) Present value of operating lease obligations $ 472,094 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Apr. 02, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income Per Share Computations and Number of Dilutive Equity Awards Included in Dilutive Net Income Per Share Computation | The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards that were included in the dilutive net income per share computation (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Numerator: Net income $ 12,864 $ 14,664 Denominator: Weighted-average shares outstanding – basic 21,056 20,586 Dilutive effect of equity awards 392 477 Weighted-average shares outstanding – diluted 21,448 21,063 |
Related Party (Tables)
Related Party (Tables) | 3 Months Ended |
Apr. 02, 2019 | |
Trade Payables | |
Summary of Amounts Included in Restaurant Operating Costs and in Trade Payables Related to Jacmar | The amounts included in trade payables related to Jacmar consisted of the following (in thousands): April 2, 2019 January 1, 2019 Third party suppliers $ 28,125 $ 30,395 Jacmar 4,817 6,110 Total accounts payable $ 32,942 $ 36,505 |
Cost of Sales, Occupancy and Operating Costs | |
Summary of Amounts Included in Restaurant Operating Costs and in Trade Payables Related to Jacmar | The cost of food, beverage, paper products and supplies provided by Jacmar included within restaurant operating costs consisted of the following (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Cost of sales: Third party suppliers $ 51,564 70.3 % $ 48,669 69.6 % Jacmar 21,762 29.7 21,302 30.4 Total cost of sales $ 73,326 100.0 % $ 69,971 100.0 % Occupancy and operating: Third party suppliers $ 59,164 96.1 % $ 55,040 95.7 % Jacmar 2,427 3.9 2,463 4.3 Total occupancy and operating $ 61,591 100.0 % $ 57,503 100.0 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 02, 2019 | |
Stock-Based Compensation Recognized within Our Consolidated Financial Statements | The following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Labor and benefits $ 458 $ 578 General and administrative $ 1,626 $ 1,705 Capitalized (1) $ 78 $ 93 (1) Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on the Consolidated Balance Sheets. |
Black-Scholes Option-Pricing Model, Weighted Average Assumptions Used to Estimate the Fair Value of Each Stock Option | The fair value of each stock option was estimated on the grant date using the Black‑Scholes option-pricing model with the following weighted average assumptions: For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Expected volatility 34.5 % 33.6 % Risk free interest rate 2.5 % 2.3 % Expected option life 5 years 5 years Dividend yield 1.5 % 1.5 % Fair value of options granted $ 15.72 $ 10.75 |
Stock Option Activity | The following table presents stock option activity: Options Outstanding Options Exercisable Shares (in thousands) Weighted Average Exercise Price Shares (in thousands) Weighted Average Exercise Price Outstanding at January 1, 2019 588 $ 38.14 189 $ 37.41 Granted 105 53.22 Exercised (16 ) 32.62 Forfeited (6 ) 45.51 Outstanding at April 2, 2019 671 $ 40.56 352 $ 38.16 |
Time-Vested Restricted Stock Units | |
Restricted Stock Unit Activity | The following table presents time-based restricted stock unit activity: Shares (in thousands) Weighted Average Fair Value Outstanding at January 1, 2019 494 $ 40.99 Granted 83 53.22 Released (75 ) 36.51 Forfeited (16 ) 44.36 Outstanding at April 2, 2019 486 $ 43.65 |
Performance Based Restricted Stock Units | |
Restricted Stock Unit Activity | The following table presents performance-based restricted stock unit activity: Shares (in thousands) Weighted Average Fair Value Outstanding at January 1, 2019 105 $ 38.32 Granted 31 53.22 Released (28 ) 42.41 Forfeited (3 ) 43.13 Outstanding at April 2, 2019 105 $ 41.42 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Apr. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is the following (in thousands): For the Thirteen Weeks Ended April 2, 2019 April 3, 2018 Gross unrecognized tax benefits at beginning of year $ 1,532 $ 1,516 Decreases for tax positions taken in prior years (7 ) — Increases for tax positions taken in the current year 25 22 Gross unrecognized tax benefits at end of year $ 1,550 $ 1,538 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Apr. 02, 2019 | |
Accounting Policies [Abstract] | |
Lease, practical expedients, package | true |
Lease, practical expedient, use of hindsight | false |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Impact on Consolidated Opening Balance Sheet (Detail) - USD ($) $ in Thousands | Apr. 02, 2019 | Jan. 02, 2019 | Jan. 01, 2019 | Apr. 03, 2018 | Jan. 02, 2018 | |
Current assets: | ||||||
Cash and cash equivalents | $ 25,673 | $ 29,224 | ||||
Accounts and other receivables, net | 15,440 | 31,190 | ||||
Inventories, net | 10,678 | 10,133 | ||||
Prepaid expenses and other current assets | 6,548 | 7,940 | ||||
Total current assets | 58,339 | 78,487 | ||||
Property and equipment, net | 582,509 | 582,754 | ||||
Operating lease assets | 380,240 | |||||
Goodwill | 4,673 | 4,673 | ||||
Other assets, net | 32,487 | 29,193 | ||||
Total assets | 1,058,248 | 695,107 | ||||
Current liabilities: | ||||||
Accounts payable | [1] | 32,942 | 36,505 | |||
Accrued expenses | 88,939 | 113,920 | ||||
Current operating lease obligations | 26,013 | |||||
Total current liabilities | 147,894 | 150,425 | ||||
Long-term operating lease obligations | 446,081 | |||||
Deferred income taxes | 22,132 | 15,977 | ||||
Deferred rent | 35,088 | |||||
Deferred lease incentives | 54,264 | |||||
Long-term debt | 102,000 | 95,000 | ||||
Other liabilities | 10,873 | 35,132 | ||||
Total liabilities | 728,980 | 385,886 | ||||
Commitments and contingencies | ||||||
Shareholders’ equity: | ||||||
Preferred stock, 5,000 shares authorized, none issued or outstanding | ||||||
Common stock, no par value, 125,000 shares authorized and 21,058 shares issued and outstanding as of January 1, 2019 and January 2, 2019 | 0 | 0 | ||||
Capital surplus | 61,683 | 64,342 | ||||
Retained earnings | 267,585 | 244,879 | ||||
Total shareholders’ equity | 329,268 | 309,221 | $ 268,787 | $ 258,729 | ||
Total liabilities and shareholders’ equity | $ 1,058,248 | $ 695,107 | ||||
ASU 2016-02 | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 29,224 | |||||
Accounts and other receivables, net | 31,190 | |||||
Inventories, net | 10,133 | |||||
Prepaid expenses and other current assets | 7,940 | |||||
Total current assets | 78,487 | |||||
Property and equipment, net | 582,754 | |||||
Operating lease assets | 377,035 | |||||
Goodwill | 4,673 | |||||
Other assets, net | 29,193 | |||||
Total assets | 1,072,142 | |||||
Current liabilities: | ||||||
Accounts payable | 36,505 | |||||
Accrued expenses | 107,051 | |||||
Current operating lease obligations | 30,529 | |||||
Total current liabilities | 174,085 | |||||
Long-term operating lease obligations | 443,316 | |||||
Deferred income taxes | 22,476 | |||||
Long-term debt | 95,000 | |||||
Other liabilities | 8,081 | |||||
Total liabilities | 742,958 | |||||
Commitments and contingencies | ||||||
Shareholders’ equity: | ||||||
Preferred stock, 5,000 shares authorized, none issued or outstanding | ||||||
Common stock, no par value, 125,000 shares authorized and 21,058 shares issued and outstanding as of January 1, 2019 and January 2, 2019 | 0 | |||||
Capital surplus | 64,342 | |||||
Retained earnings | 264,842 | |||||
Total shareholders’ equity | 329,184 | |||||
Total liabilities and shareholders’ equity | 1,072,142 | |||||
Topic 842 Adjustments | ASU 2016-02 | ||||||
Current assets: | ||||||
Operating lease assets | [2] | 377,035 | ||||
Total assets | [2] | 377,035 | ||||
Current liabilities: | ||||||
Accrued expenses | [2] | (6,869) | ||||
Current operating lease obligations | [2] | 30,529 | ||||
Total current liabilities | [2] | 23,660 | ||||
Long-term operating lease obligations | [2] | 443,316 | ||||
Deferred income taxes | [2] | 6,499 | ||||
Deferred rent | [2] | (35,088) | ||||
Deferred lease incentives | [2] | (54,264) | ||||
Other liabilities | [2] | (27,051) | ||||
Total liabilities | [2] | 357,072 | ||||
Commitments and contingencies | [2] | |||||
Shareholders’ equity: | ||||||
Preferred stock, 5,000 shares authorized, none issued or outstanding | [2] | |||||
Common stock, no par value, 125,000 shares authorized and 21,058 shares issued and outstanding as of January 1, 2019 and January 2, 2019 | [2] | 0 | ||||
Retained earnings | [2],[3] | 19,963 | ||||
Total shareholders’ equity | [2] | 19,963 | ||||
Total liabilities and shareholders’ equity | [2] | $ 377,035 | ||||
[1] | Included in accounts payable as of April 2, 2019 and January 1, 2019 is $4,817 and $6,110, respectively, of related party trade payables. See Note 6 for further information. | |||||
[2] | Adjustments represent non-cash activities for Consolidated Statements of Cash Flow purposes | |||||
[3] | Primarily composed of an increase of $28.8 million for deferred sale-leaseback gains no longer amortizable, a decrease of $2.3 million to impair the right-of-use asset related to previously impaired properties and a $6.5 million decrease for the deferred tax impact of the cumulative effect adjustments. |
Basis of Presentation - Sched_2
Basis of Presentation - Schedule of Impact on Consolidated Opening Balace Sheet (Parenthetical) (Detail) - USD ($) $ in Millions | Apr. 02, 2019 | Jan. 02, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 | 0 |
Preferred stock, outstanding | 0 | 0 | 0 |
Common stock, par value | |||
Common stock, shares authorized | 125,000,000 | 125,000,000 | 125,000,000 |
Common stock, shares issued | 20,909,000 | 21,058,000 | 21,058,000 |
Common stock, shares outstanding | 20,909,000 | 21,058,000 | 21,058,000 |
ASU 2016-02 | Topic 842 Adjustments | Increase of Deferred Sale-Leaseback Gains | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings cumulative effect adjustments | $ 28.8 | ||
ASU 2016-02 | Topic 842 Adjustments | Decrease to Impair Right-of-use Asset | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings cumulative effect adjustments | (2.3) | ||
ASU 2016-02 | Topic 842 Adjustments | Decrease for Deferred Tax Impact | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings cumulative effect adjustments | $ (6.5) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 3 Months Ended |
Apr. 02, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Gift cards breakage, redemption period | 24 months |
Gift Card Liability and Loyalty
Gift Card Liability and Loyalty Program Included in Accrued Expenses on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Apr. 02, 2019 | Jan. 01, 2019 |
Contract With Customer Asset And Liability [Line Items] | ||
Gift card liability | $ 12,877 | $ 17,201 |
Post-adoption of ASU 2016-10 | ||
Contract With Customer Asset And Liability [Line Items] | ||
Deferred loyalty revenue | $ 10,291 | $ 10,066 |
Revenue Recognized on Consolida
Revenue Recognized on Consolidated Statements of Income for Redemption of Gift Cards and Loyalty Rewards Deferred (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2019 | Apr. 03, 2018 | |
Disaggregation Of Revenue [Abstract] | ||
Revenue recognized from gift card liability | $ 7,605 | $ 5,932 |
Revenue recognized from customer loyalty program | $ 4,073 | $ 2,331 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | Apr. 02, 2019USD ($) |
Leases [Abstract] | |
Right-of-use assets | $ 380,240 |
Current lease liabilities | 26,013 |
Non-current lease liabilities | 446,081 |
Total lease liabilities | $ 472,094 |
Leases - Summary of Weighted-Av
Leases - Summary of Weighted-Average Lease Terms and Discount Rates (Detail) | Apr. 02, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term | 12 years 10 months 24 days |
Weighted-average discount rate | 5.70% |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Detail) $ in Thousands | 3 Months Ended |
Apr. 02, 2019USD ($) | |
Leases [Abstract] | |
Lease cost | $ 13,240 |
Variable lease cost | 855 |
Total lease cost | $ 14,095 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Disclosures of Cash Flow Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Apr. 02, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease obligations | $ 19,229 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Obligation Maturities (Detail) $ in Thousands | Apr. 02, 2019USD ($) |
Leases [Abstract] | |
2019 (remainder of fiscal year) | $ 37,862 |
2020 | 57,084 |
2021 | 56,713 |
2022 | 56,043 |
2023 | 53,778 |
Thereafter | 397,014 |
Total lease payments | 658,494 |
Less: imputed interest | (186,400) |
Present value of operating lease obligations | $ 472,094 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - Credit Facility - USD ($) | 3 Months Ended | |
Apr. 02, 2019 | Apr. 03, 2018 | |
Line of Credit Facility [Line Items] | ||
Revolving loan commitments under loan agreement | $ 250,000,000 | |
Loan agreement, expiration date | Nov. 18, 2021 | |
Letters of credit outstanding amount | $ 14,100,000 | |
Line of credit outstanding amount | 102,000,000 | |
Available borrowings under credit facility | $ 133,900,000 | |
Weighted average interest rate | 3.40% | |
Interest expense and commitment fees | $ 1,100,000 | $ 1,400,000 |
Interest expense on line of credit | 70,000 | $ 30,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Revolving loan commitments under loan agreement | $ 50,000,000 | |
Maximum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Line of credit, adjustment to interest rate | 1.75% | |
Minimum | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Line of credit, adjustment to interest rate | 0.75% |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Net Income Per Share Computations and Number of Dilutive Equity Awards Included in Dilutive Net Income Per Share Computation (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2019 | Apr. 03, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 12,864 | $ 14,664 |
Weighted-average shares outstanding – basic | 21,056 | 20,586 |
Dilutive effect of equity awards | 392 | 477 |
Weighted-average shares outstanding – diluted | 21,448 | 21,063 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Apr. 02, 2019 | Apr. 03, 2018 | |
Earnings Per Share [Abstract] | ||
Common stock equivalents excluded from calculation of diluted net income per share | 0.3 | 0.6 |
Related Party - Additional Info
Related Party - Additional Information (Detail) - Jacmar | 3 Months Ended |
Apr. 02, 2019 | |
Related Party Transaction [Line Items] | |
New agreement terms | 5 years |
New agreement maturing date | 2020-06 |
Related party transaction new period agreement maturing description | The new agreement expires in June 2020 and automatically renews for two successive one-year periods (effectively expiring June 2022), unless either party provides a non-renewal notice 90 days prior to the end of each year. |
Related Party - Related Party -
Related Party - Related Party - Summary of Amounts Included in Restaurant Operating Costs Related to Jacmar (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2019 | Apr. 03, 2018 | ||
Related Party Transaction [Line Items] | |||
Total cost of sales | [1] | $ 73,326 | $ 69,971 |
Total occupancy and operating | [1] | $ 61,591 | $ 57,503 |
Cost of sales | Supplier Concentration Risk | |||
Related Party Transaction [Line Items] | |||
Concentration percentage | 100.00% | 100.00% | |
Occupancy and operating | Supplier Concentration Risk | |||
Related Party Transaction [Line Items] | |||
Concentration percentage | 100.00% | 100.00% | |
Jacmar | |||
Related Party Transaction [Line Items] | |||
Total cost of sales | $ 21,762 | $ 21,302 | |
Total occupancy and operating | $ 2,427 | $ 2,463 | |
Jacmar | Cost of sales | Supplier Concentration Risk | |||
Related Party Transaction [Line Items] | |||
Concentration percentage | 29.70% | 30.40% | |
Jacmar | Occupancy and operating | Supplier Concentration Risk | |||
Related Party Transaction [Line Items] | |||
Concentration percentage | 3.90% | 4.30% | |
Third Party Suppliers | |||
Related Party Transaction [Line Items] | |||
Total cost of sales | $ 51,564 | $ 48,669 | |
Total occupancy and operating | $ 59,164 | $ 55,040 | |
Third Party Suppliers | Cost of sales | Supplier Concentration Risk | |||
Related Party Transaction [Line Items] | |||
Concentration percentage | 70.30% | 69.60% | |
Third Party Suppliers | Occupancy and operating | Supplier Concentration Risk | |||
Related Party Transaction [Line Items] | |||
Concentration percentage | 96.10% | 95.70% | |
[1] | Related party costs included in cost of sales are $21,762 and $21,302 for the thirteen weeks ended April 2, 2019 and April 3, 2018, respectively. Related party costs included in occupancy and operating are $2,427 and $2,463 for the thirteen weeks ended April 2, 2019 and April 3, 2018, respectively. See Note 6 for further information. |
Related Party - Summary of Amou
Related Party - Summary of Amounts Included in Trade Payables Related to Jacmar (Detail) - USD ($) $ in Thousands | Apr. 02, 2019 | Jan. 01, 2019 | |
Related Party Transaction [Line Items] | |||
Total accounts payable | [1] | $ 32,942 | $ 36,505 |
Third Party Suppliers | |||
Related Party Transaction [Line Items] | |||
Total accounts payable | 28,125 | 30,395 | |
Jacmar | |||
Related Party Transaction [Line Items] | |||
Total accounts payable | $ 4,817 | $ 6,110 | |
[1] | Included in accounts payable as of April 2, 2019 and January 1, 2019 is $4,817 and $6,110, respectively, of related party trade payables. See Note 6 for further information. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 02, 2019 | Oct. 02, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares charged to reserve per granted share | 1 | |
Share basis for number shares charged to reserve | 1 | |
Expiration term of stock options | 10 years | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares charged to reserve per granted share | 1.5 | |
Stock Options and Time-based RSUs [Member] | Vesting Period One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 1 year | |
Stock Options and Time-based RSUs [Member] | Vesting Period Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Stock Options and Time-based RSUs [Member] | Vesting Period Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 5 years | |
Stock Options and Time-based RSUs [Member] | Cliff Vesting Third Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.00% | |
Stock Options and Time-based RSUs [Member] | Cliff Vesting Fifth Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 67.00% | |
Stock Options and Time-based RSUs [Member] | Cliff Vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 5 years | |
Performance Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $ 2.3 | |
Unrecognized stock-based compensation expenses recognition period (in years) | 3 years | |
Performance Based Restricted Stock Units | Minimum | Cliff Vesting Third Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 0.00% | |
Performance Based Restricted Stock Units | Maximum | Cliff Vesting Third Anniversary | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 150.00% | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $ 3.3 | |
Unrecognized stock-based compensation expenses recognition period (in years) | 5 years | |
Time-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $ 11.6 | |
Unrecognized stock-based compensation expenses recognition period (in years) | 5 years |
Stock-Based Compensation Recogn
Stock-Based Compensation Recognized within Our Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2019 | Apr. 03, 2018 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Capitalized | [1] | $ 78 | $ 93 |
Labor and benefits | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 458 | 578 | |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 1,626 | $ 1,705 | |
[1] | Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on the Consolidated Balance Sheets. |
Black-Scholes Option-Pricing Mo
Black-Scholes Option-Pricing Model, Weighted Average Assumptions Used to Estimate the Fair Value of Each Stock Option (Detail) - $ / shares | 3 Months Ended | |
Apr. 02, 2019 | Apr. 03, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected volatility | 34.50% | 33.60% |
Risk free interest rate | 2.50% | 2.30% |
Expected option life | 5 years | 5 years |
Dividend yield | 1.50% | 1.50% |
Fair value of options granted | $ 15.72 | $ 10.75 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) shares in Thousands | 3 Months Ended |
Apr. 02, 2019$ / sharesshares | |
Options Outstanding, Shares | |
Outstanding, Beginning Balance | shares | 588 |
Granted | shares | 105 |
Exercised | shares | (16) |
Forfeited | shares | (6) |
Outstanding, Ending Balance | shares | 671 |
Options Outstanding, Weighted Average Exercise Price | |
Outstanding, Beginning Balance | $ / shares | $ 38.14 |
Granted | $ / shares | 53.22 |
Exercised | $ / shares | 32.62 |
Forfeited | $ / shares | 45.51 |
Outstanding, Ending Balance | $ / shares | $ 40.56 |
Options Exercisable, Shares | |
Options Exercisable Outstanding, Beginning Balance | shares | 189 |
Options Exercisable Outstanding, Ending Balance | shares | 352 |
Options Exercisable, Weighted Average Exercise Price | |
Options Exercisable, Beginning Balance | $ / shares | $ 37.41 |
Options Exercisable, Ending Balance | $ / shares | $ 38.16 |
Time-Based Restricted Stock Uni
Time-Based Restricted Stock Unit Activity (Detail) - Time-Based Restricted Stock Units shares in Thousands | 3 Months Ended |
Apr. 02, 2019$ / sharesshares | |
Shares Outstanding | |
Outstanding Beginning Balance, Shares | shares | 494 |
Granted, Shares | shares | 83 |
Released. Shares | shares | (75) |
Forfeited, Shares | shares | (16) |
Outstanding Ending Balance, Shares | shares | 486 |
Weighted Average Fair Value | |
Outstanding Beginning Balance, Weighted Average Fair Value | $ / shares | $ 40.99 |
Granted, Weighted Average Fair Value | $ / shares | 53.22 |
Released, Weighted Average Fair Value | $ / shares | 36.51 |
Forfeited, Weighted Average Fair Value | $ / shares | 44.36 |
Outstanding Ending Balance, Weighted Average Fair Value | $ / shares | $ 43.65 |
Performance-Based Restricted St
Performance-Based Restricted Stock Unit Activity (Detail) - Performance Based Restricted Stock Units shares in Thousands | 3 Months Ended |
Apr. 02, 2019$ / sharesshares | |
Shares Outstanding | |
Outstanding Beginning Balance, Shares | shares | 105 |
Granted, Shares | shares | 31 |
Released. Shares | shares | (28) |
Forfeited, Shares | shares | (3) |
Outstanding Ending Balance, Shares | shares | 105 |
Weighted Average Fair Value | |
Outstanding Beginning Balance, Weighted Average Fair Value | $ / shares | $ 38.32 |
Granted, Weighted Average Fair Value | $ / shares | 53.22 |
Released, Weighted Average Fair Value | $ / shares | 42.41 |
Forfeited, Weighted Average Fair Value | $ / shares | 43.13 |
Outstanding Ending Balance, Weighted Average Fair Value | $ / shares | $ 41.42 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 02, 2019 | Jan. 01, 2019 | Apr. 03, 2018 | Jan. 02, 2018 | |
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | ||||
Unrecognized tax benefits | $ 1,550 | $ 1,532 | $ 1,538 | $ 1,516 |
Unrecognized tax benefits that would impact effective tax rate, if reversed | $ 1,100 | |||
Federal | Earliest Tax Year | ||||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | ||||
Income tax examination, years open | 2015 | |||
State or Local Taxing Jurisdiction | Earliest Tax Year | ||||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | ||||
Income tax examination, years open | 2014 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2019 | Apr. 03, 2018 | |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits at beginning of year | $ 1,532 | $ 1,516 |
Decreases for tax positions taken in prior years | (7) | |
Increases for tax positions taken in the current year | 25 | 22 |
Gross unrecognized tax benefits at end of year | $ 1,550 | $ 1,538 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | Feb. 19, 2019 | Mar. 31, 2019 | Apr. 02, 2019 | Apr. 03, 2018 |
Equity [Abstract] | ||||
Number of shares repurchased during the period | 0.2 | |||
Repurchased average price per share | $ 47.78 | |||
Shares repurchased, value | $ 11,894,000 | $ 5,566,000 | ||
Expansion of share repurchased program | $ 100,000,000 | |||
Common stock remaining under the share repurchase plan | 110,300,000 | |||
Current amount authorized under the share repurchase plan | $ 500,000,000 | |||
Common stock quarterly cash dividend per share | $ 0.12 | |||
Common stock payable date | Mar. 26, 2019 | |||
Common stock payable record date | Mar. 12, 2019 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Apr. 22, 2019 | Feb. 19, 2019 | Apr. 02, 2019 | Apr. 03, 2018 |
Subsequent Event [Line Items] | ||||
Cash dividends declared per common share | $ 0.12 | $ 0.11 | ||
Common stock payable date | Mar. 26, 2019 | |||
Common stock payable record date | Mar. 12, 2019 | |||
Board of Directors [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per common share | $ 0.12 | |||
Common stock payable date | May 27, 2019 | |||
Common stock payable record date | May 13, 2019 |