Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2018 | Jan. 27, 2019 | Jul. 01, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PBPB | ||
Entity Registrant Name | POTBELLY CORPORATION | ||
Entity Central Index Key | 1,195,734 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 24,144,586 | ||
Entity Public Float | $ 322 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 19,775 | $ 25,530 |
Accounts receivable, net of allowances of $113 and $129 as of December 30, 2018 and December 31, 2017, respectively | 4,737 | 5,087 |
Inventories | 3,482 | 3,525 |
Prepaid expenses and other current assets | 11,426 | 11,061 |
Total current assets | 39,420 | 45,203 |
Property and equipment, net | 87,782 | 103,859 |
Indefinite-lived intangible assets | 3,404 | 3,404 |
Goodwill | 2,222 | 2,222 |
Deferred income taxes, non-current | 13,385 | 11,202 |
Deferred expenses, net and other assets | 7,002 | 4,840 |
Total assets | 153,215 | 170,730 |
Current liabilities | ||
Accounts payable | 3,835 | 3,903 |
Accrued expenses | 25,029 | 23,273 |
Accrued income taxes | 162 | 176 |
Total current liabilities | 29,026 | 27,352 |
Deferred rent and landlord allowances | 22,905 | 22,987 |
Other long-term liabilities | 5,751 | 3,153 |
Total liabilities | 57,682 | 53,492 |
Stockholders’ equity | ||
Common stock, $0.01 par value—authorized 200,000,000 shares; outstanding 24,142,586 and 24,999,688 shares as of December 30, 2018 and December 31, 2017, respectively | 330 | 318 |
Additional paid-in-capital | 432,771 | 421,657 |
Treasury stock, held at cost, 8,801,154 and 6,831,508 shares as of December 30, 2018, and December 31, 2017, respectively | (108,372) | (85,262) |
Accumulated deficit | (229,558) | (219,990) |
Total stockholders’ equity | 95,171 | 116,723 |
Non-controlling interest | 362 | 515 |
Total stockholders' equity | 95,533 | 117,238 |
Total liabilities and equity | $ 153,215 | $ 170,730 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowances on accounts receivable | $ 113 | $ 129 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 200,000,000 | 200,000,000 |
Common stock, outstanding | 24,142,586 | 24,999,688 |
Treasury stock, shares | 8,801,154 | 6,831,508 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Revenues | |||
Total revenues | $ 422,638 | $ 428,111 | $ 407,131 |
Sandwich shop operating expenses | |||
Cost of goods sold, excluding depreciation | 111,083 | 113,426 | 111,026 |
Labor and related expenses | 127,962 | 126,337 | 117,838 |
Occupancy expenses | 59,789 | 58,562 | 52,444 |
Other operating expenses | 50,363 | 49,209 | 43,738 |
General and administrative expenses | 46,862 | 44,618 | 40,411 |
Depreciation expense | 23,142 | 25,680 | 22,734 |
Pre-opening costs | 472 | 1,441 | 1,786 |
Impairment and loss on disposal of property and equipment | 13,567 | 10,761 | 4,141 |
Total expenses | 433,240 | 430,034 | 394,118 |
Income (loss) from operations | (10,602) | (1,923) | 13,013 |
Interest expense | 142 | 124 | 134 |
Income (loss) before income taxes | (10,744) | (2,047) | 12,879 |
Income tax expense (benefit) | (2,195) | 4,643 | 4,443 |
Net income (loss) | (8,549) | (6,690) | 8,436 |
Net income attributable to non-controlling interest | 329 | 266 | 224 |
Net income (loss) attributable to Potbelly Corporation | $ (8,878) | $ (6,956) | $ 8,212 |
Net income (loss) per common share attributable to common stockholders: | |||
Basic | $ (0.35) | $ (0.28) | $ 0.32 |
Diluted | $ (0.35) | $ (0.28) | $ 0.31 |
Weighted average shares outstanding: | |||
Basic | 25,173,171 | 25,045,427 | 25,623,809 |
Diluted | 25,173,171 | 25,045,427 | 26,231,367 |
Product [Member] | |||
Revenues | |||
Total revenues | $ 419,426 | $ 424,932 | $ 404,874 |
Franchise Royalties And Fees [Member] | |||
Revenues | |||
Total revenues | $ 3,212 | $ 3,179 | $ 2,257 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Warrants [Member] | Additional Paid-in-Capital [Member] | Accumulated Deficit [Member] | Non-Controlling Interest [Member] |
Beginning balance at Dec. 27, 2015 | $ 130,213 | $ 303 | $ (50,000) | $ 909 | $ 399,458 | $ (221,246) | $ 789 |
Beginning balance, common shares at Dec. 27, 2015 | 26,304,261 | ||||||
Net income (loss) | 8,436 | 8,212 | 224 | ||||
Stock-based compensation plans | $ 5,776 | $ 6 | 5,770 | ||||
Stock-based compensation plans, shares | 554,368 | ||||||
Exercise of stock warrants, shares | 536,000 | ||||||
Excess tax benefits associated with exercise of stock options | $ (663) | (663) | |||||
Repurchases of common stock | (22,321) | (22,321) | |||||
Repurchases of common stock, shares | (1,719,502) | ||||||
Distributions to non-controlling interest | (413) | (413) | |||||
Contributions from non-controlling interest | 151 | 151 | |||||
Amortization of stock-based compensation | 3,057 | 3,057 | |||||
Ending balance at Dec. 25, 2016 | 124,236 | $ 309 | (72,321) | 909 | 407,622 | (213,034) | 751 |
Ending balance, common shares at Dec. 25, 2016 | 25,139,127 | ||||||
Net income (loss) | (6,690) | (6,956) | 266 | ||||
Stock-based compensation plans | 6,487 | $ 7 | 6,480 | ||||
Stock-based compensation plans, shares | 696,953 | ||||||
Exercise of stock warrants | $ 1,972 | $ 2 | $ (909) | 2,879 | |||
Exercise of stock warrants, shares | 653,000 | 241,704 | |||||
Repurchases of common stock | $ (12,941) | (12,941) | |||||
Repurchases of common stock, shares | (1,078,096) | ||||||
Distributions to non-controlling interest | (513) | (513) | |||||
Contributions from non-controlling interest | 11 | 11 | |||||
Amortization of stock-based compensation | 4,676 | 4,676 | |||||
Ending balance at Dec. 31, 2017 | $ 117,238 | $ 318 | (85,262) | 421,657 | (219,990) | 515 | |
Ending balance, common shares at Dec. 31, 2017 | 24,999,688 | 24,999,688 | |||||
Net income (loss) | $ (8,549) | (8,878) | 329 | ||||
Cumulative impact of Topic 606 at 1/1/2018 | (690) | (690) | |||||
Stock-based compensation plans | $ 8,244 | $ 12 | 8,232 | ||||
Stock-based compensation plans, shares | 1,112,544 | ||||||
Exercise of stock warrants, shares | 993,000 | ||||||
Repurchases of common stock | $ (22,916) | (22,916) | |||||
Repurchases of common stock, shares | (1,953,245) | ||||||
Distributions to non-controlling interest | (580) | (580) | |||||
Contributions from non-controlling interest | 98 | 98 | |||||
Treasury shares used for stock-based plans | (194) | (194) | |||||
Treasury shares used for stock-based plans, shares | (16,401) | ||||||
Amortization of stock-based compensation | 2,882 | 2,882 | |||||
Ending balance at Dec. 30, 2018 | $ 95,533 | $ 330 | $ (108,372) | $ 432,771 | $ (229,558) | $ 362 | |
Ending balance, common shares at Dec. 30, 2018 | 24,142,586 | 24,142,586 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (8,549) | $ (6,690) | $ 8,436 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 23,142 | 25,680 | 22,734 |
Deferred income tax | (3,016) | 6,096 | (1,659) |
Deferred rent and landlord allowances | (82) | 1,911 | 3,256 |
Amortization of stock-based compensation | 2,882 | 4,676 | 3,057 |
Excess tax deficiency (benefit) from stock-based compensation | 1,089 | 2,112 | (31) |
Asset impairment, store closure and disposal of property and equipment | 13,762 | 10,947 | 4,243 |
Amortization of debt issuance costs | 37 | 37 | 34 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 100 | (650) | 674 |
Inventories | 43 | (160) | (188) |
Prepaid expenses and other assets | (694) | (3,190) | 3,204 |
Accounts payable | 177 | 286 | (1,899) |
Accrued and other liabilities | 2,097 | 764 | 4,108 |
Net cash provided by operating activities | 30,988 | 41,819 | 45,969 |
Cash flows from investing activities: | |||
Acquisition of franchise shop | (1,108) | ||
Purchases of property and equipment | (21,395) | (34,684) | (36,712) |
Net cash used in investing activities | (21,395) | (34,684) | (37,820) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 8,244 | 6,487 | 5,776 |
Proceeds from exercise of stock warrants | 1,972 | ||
Excess tax benefit from stock-based compensation | 31 | ||
Employee taxes on certain stock-based payment arrangements | (194) | ||
Treasury stock repurchase | (22,916) | (12,941) | (22,321) |
Contributions from non-controlling interest | 98 | 11 | 151 |
Distributions to non-controlling interest | (580) | (513) | (413) |
Net cash used in financing activities | (15,348) | (4,984) | (16,776) |
Net increase (decrease) in cash and cash equivalents | (5,755) | 2,151 | (8,627) |
Cash and cash equivalents at beginning of period | 25,530 | 23,379 | 32,006 |
Cash and cash equivalents at end of period | 19,775 | 25,530 | 23,379 |
Supplemental cash flow information: | |||
Income taxes paid | 250 | 1,656 | 3,663 |
Interest paid | 110 | 94 | 108 |
Supplemental non-cash investing and financing activities: | |||
Unpaid liability for purchases of property and equipment | $ 751 | $ 1,741 | $ 2,727 |
Organization and Other Matters
Organization and Other Matters | 12 Months Ended |
Dec. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Other Matters | (1) Organization and Other Matters Business Potbelly Corporation (the “Company” or “Potbelly”), through its wholly owned subsidiaries, owns or operates more than 400 company-owned shops in the United States. Additionally, Potbelly franchisees operate approximately 50 shops domestically, and international shops in the Middle East, Canada and India. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Principles of Consolidation The consolidated financial statements include the accounts of Potbelly Corporation; its wholly owned subsidiary, Potbelly Illinois, Inc. (“PII”); PII’s wholly owned subsidiaries, Potbelly Franchising, LLC and Potbelly Sandwich Works LLC (“LLC”); eight of LLC’s wholly owned subsidiaries and LLC’s six joint ventures, collectively, the “Company.” All intercompany balances and transactions have been eliminated in consolidation. For consolidated joint ventures, non-controlling interest represents a non-controlling partner’s share of the assets, liabilities and operations related to the seven joint venture investments. The Company has ownership interests ranging from 51-80% in these consolidated joint ventures. The Company does not have any components of other comprehensive income (loss) recorded within its consolidated financial statements, and, therefore, does not separately present a statement of comprehensive income (loss) in its consolidated financial statements. (b) Reporting Period The Company uses a 52/53-week fiscal year that ends on the last Sunday of the calendar year. Approximately every five or six years a 53rd week is added. Fiscal years 2018, 2017 and 2016 consisted of 52, 53 and 52 weeks, respectively. (c) Segment Reporting The Company owns and operates Potbelly Sandwich Shops concepts in the United States. The Company also has domestic and international franchise operations of Potbelly Sandwich Shops concepts. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer. As the CODM reviews financial performance and allocates resources at a consolidated level on a recurring basis, the Company has one operating segment and one reportable segment. (d) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America U.S. GAAP (e) Fair Value Measurements The Company applies fair value accounting for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company assumes the highest and best use of the asset by market participants in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels, and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Inputs that are both unobservable and significant to the overall fair value measurement reflect an entity’s estimates of assumptions that market participants would use in pricing the asset or liability. (f) Financial Instruments The Company records all financial instruments at cost, which is the fair value at the date of transaction. The amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and all other current liabilities approximate their fair value because of the short-term maturities of these instruments. (g) Cash and Cash Equivalents The Company considers all highly liquid investment instruments with an original maturity of three months or less when purchased to be cash equivalents. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits; however, the Company has not experienced any losses in these accounts. The Company believes it is not exposed to any significant credit risk. These are valued within the fair value hierarchy as Level 1 measurements. (h) Accounts Receivable, net Accounts receivable, net consists of credit card receivables, amounts owed from vendors and miscellaneous receivables. The Company had credit card receivables of $2.0 million and $1.9 million as of December 30, 2018 and December 31, 2017, respectively. (i) Inventories Inventories, which consist of food products, paper goods and supplies, and promotional items, are valued at the lower of cost (first-in, first-out) or market. No adjustment is deemed necessary to reduce inventory to the lower of cost or market value due to the rapid turnover and high utilization of inventory. (j) Property and Equipment Property and equipment acquired is recorded at cost less accumulated depreciation. Property and equipment is depreciated based on the straight-line method over the estimated useful lives, generally ranging from three to five years for furniture and fixtures, computer equipment, computer software, and machinery and equipment. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the related lease life, generally 10 to 15 years. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease. Direct costs and expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized, whereas the costs of repairs and maintenance are expensed when incurred. Capitalized costs are recorded as part of the asset to which they relate, primarily to leasehold improvements, and such costs are amortized over the asset’s useful life. When assets are retired or sold, the asset cost and related accumulated depreciation are removed from the consolidated balance sheet and any gain or loss is recorded in the consolidated statement of operations. The Company assesses potential impairments to its long-lived assets, which includes property and equipment, on a quarterly basis or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Shop-level assets are grouped at the individual shop-level for the purpose of the impairment assessment. Recoverability of an asset is measured by a comparison of the carrying amount of an asset to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the shop assets is determined using the discounted future cash flow method of anticipated cash flows through the shop’s lease-end date using fair value measurement inputs classified as Level 3. Level 3 inputs are derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company used a weighted average cost of capital to discount the future cash flows. After performing periodic reviews of the company-operated shops during each quarter of 2018, 2017 and 2016, it was determined that indicators of impairment were present for certain shops as a result of continued underperformance. The Company performed an impairment analysis related to these shops and recorded impairment charges of $13.4 million, $10.6 million and $4.0 million for the fiscal years 2018, 2017 and 2016, respectively. (k) Intangible Assets The Company reviews indefinite-lived intangible assets, which includes goodwill and tradenames, annually at fiscal year-end for impairment or more frequently if events or circumstances indicate that the carrying value may not be recoverable. An impaired asset is written down to its estimated fair value based on the most recent information available. The Company assesses the fair values of its intangible assets, and its reporting unit for goodwill testing purposes, using an income-based approach. Under the income approach, fair value is based on the present value of estimated future cash flows. The income approach is dependent on a number of factors, including forecasted revenues and expenses, appropriate discount rates and other variables. The annual impairment review utilizes the estimated fair value of the intangible assets and the overall reporting unit and compares the estimated fair values to the carrying values as of the testing date. If the carrying value of these intangible assets or the reporting unit exceeds the fair values, the Company would then use the fair values to measure the amount of any required impairment charge. No impairment charge was recognized for intangible assets for any of the fiscal periods presented. (l) Pre-opening Costs Pre-opening costs consist of costs incurred prior to opening a new shop and are made up primarily of travel, employee payroll and training costs incurred prior to the shop opening, as well as occupancy costs incurred from when the Company takes site possession to shop opening. Shop pre-opening costs are expensed as incurred. (m) Advertising Expenses Advertising costs are expensed as incurred and are included in general and administrative expenses in the consolidated statements of operations. Advertising expenses were $4.3 million, $3.4 million and $3.0 million in fiscal years 2018, 2017 and 2016, respectively. (n) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are attributed to differences between financial statement and income tax reporting. Deferred tax assets, net of any valuation allowances, represent the future tax return consequences of those differences and for operating loss and tax credit carryforwards, which will be deductible when the assets are recovered. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. In making this assessment of realizability of deferred tax assets, the Company considers all positive and negative evidence as to whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns. The Company accounts for uncertain tax positions under current accounting guidance, which prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by tax authorities, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. (o) Stock-Based Compensation The Company has granted stock options under its 2001 Equity Incentive Plan (the “2001 Plan”), 2004 Equity Incentive Plan (the “2004 Plan”) and 2013 Long-Term Incentive Plan, as amended (the “2013 Plan” and together with the 2004 Plan and 2001 Plan, the “Plans”) and restricted stock units (“RSUs”) under its 2013 Plan. The Plans permit the granting of awards to employees and non-employee officers, consultants, agents, and independent contractors of the Company in the form of stock appreciation rights, stock awards and units, and stock options. The Plans give broad powers to the Company’s board of directors to administer and interpret the Plans, including the authority to select the individuals to be granted options and rights and to prescribe the particular form and conditions of each option to be granted. In September 2011, the 2001 Plan expired with options outstanding under the plan still available for exercise. On July 31, 2013, the Company’s board of directors approved the adoption of the 2013 Plan, which replaced the 2004 Plan in conjunction with the Company’s IPO. Upon approval of the 2013 Plan, the Company no longer issued awards under the 2004 Plan. The 2004 Plan expired in February 2014, but will continue to govern outstanding awards granted prior to its termination. The Company accounts for its stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718, Stock Based Compensation RSUs. For the Company’s non-employee directors, the Company records stock compensation expense on the grant date of the RSUs. (p) Leases The Company leases retail shops, warehouse and office space under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, lease premiums, rent escalation clauses, and/or contingent rent provisions. For purposes of recognizing incentives, premiums, and minimum rental expenses on a straight-line basis over the terms of the leases, the Company uses the date it takes possession of the leased space for construction purposes as the beginning of the term, which is generally two to three months prior to a shop’s opening date. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease. In addition to rental expense, certain leases require the Company to pay a portion of real estate taxes, utilities, building operating expenses, insurance and other charges in addition to rent. For tenant improvement allowances, rent escalations, and rent holidays, the Company records a deferred rent liability in its consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to occupancy expense in the consolidated statements of operations. (q) Revenue Recognition Revenue from retail shops is presented net of discounts and recognized when food and beverage products are sold. Sales taxes collected from customers are excluded from revenues and the obligation is included in accrued liabilities until the taxes are remitted to the appropriate taxing authorities. The company adopted ASC 606 as January 1, 2018 using the modified retrospective method applied to contracts that were not completed as of the date of adoption. Potbelly sells gift cards to customers, records the sale as a contract liability and recognizes the associated revenue as the gift card is redeemed. A portion of these gift cards are not redeemed by the customer, which is recognized by the Company as revenue as a percentage of customers gift card redemptions. The expected breakage amount recognized is determined by a historical data analysis on gift card redemption patterns. The Company recognized gift card breakage income of $312 thousand, $396 thousand and $254 thousand for the fiscal years ended 2018, 2017 and 2016, respectively, which is recorded within other operating expenses in the consolidated statements of operations. The Company earns an initial franchise fee, a franchise development agreement fee and ongoing royalty fees under the Company’s franchise agreements. Prior to 2018, initial franchise fees were recognized as revenue when the shop opened. These franchise fees are considered highly dependent upon and interrelated with the franchise right granted in the franchise agreement. As such, these franchise fees are recognized over the contractual term of the franchise agreement. Under the new method, the Company recognized franchise fee revenue of 0.8 million in fiscal year 2018. Under the previous method, the Company recognized franchise fee revenue of $0.7 million and $0.4 million in fiscal year 2017 and 2016, respectively. The Company records a contract liability for the unearned portion of the upfront franchise payments. The Company has deferred revenue related to initial franchise fees of $1.2 million and $0.7 million included in accrued expenses as of December 30, 2018 and December 31, 2017, respectively. Franchise development agreement fees represent the exclusivity rights for a geographical area paid by a third party to develop Potbelly shops for a certain period of time. Franchise development agreement fee payments received by the Company are recorded as deferred revenue in the consolidated balance sheet and amortized over the life of the franchise development agreement. The Company had deferred revenue related to franchise development agreement fees of $0.7 million and $0.5 million recorded in accrued expenses as of December 30, 2018 and December 31, 2017, respectively. Royalty fees are based on a percentage of sales and are recorded as revenue as the fees are earned and become receivable from the franchisee. The Company recognized royalty fees revenue of $2.4 million, $2.5 million and $1.9 million for fiscal years 2018, 2017, and 2016, respectively. (r) Recent Accounting Pronouncements I n May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers.” The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and International Financial Reporting Standards (IFRS). In addition, the FASB issued ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13 and ASU 2017-14 in March 2016, April 2016, May 2016, December 2016, September 2017 and November 2017, respectively, to help provide interpretive clarifications on the new guidance in Accounting Standards Codification (ASC) Topic 606. Potbelly adopted the standard effective January 1, 2018 using the modified retrospective method applied to contracts that were not completed as of the date of adoption. The adoption does not have a material impact on sandwich shop sales, but impacted the recognition of franchise revenue and gift card breakage. Potbelly licenses intellectual property and trademarks to franchisees through franchise arrangements. As part of these agreements, Potbelly receives an initial franchise fee payment which historically was recognized as revenue when the shop opened. Effective for the annual period beginning January 1, 2018, initial franchise fees are recognized as revenue over the contractual term. Potbelly sells gift cards to customers and records the sale as a liability. The liability is released once the card is redeemed. Historically, a portion of these gift card sales were not redeemed by the customer (“breakage”) and Potbelly would recognize breakage two years after the period of sale. Effective for the annual period beginning January 1, 2018, expected breakage is recognized as customers redeem the gift cards. Upon adoption of the standard, Potbelly’s accumulated deficit (net of tax). The franchise revenue adjustment impacted accrued expenses, other long-term liabilities and deferred income taxes. The breakage adjustment impacted accrued expenses and deferred income taxes. Revenue recognized in the fiscal year 2018 was $0.1 million higher than it would have been under the previous methodology. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which will replace the existing guidance in ASC 840, “Leases.” The pronouncement requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee will recognize interest expense and amortization of the right-of-use asset and for operating leases, the lessee will recognize expense on a straight-line basis. The pronouncement is effective for fiscal years beginning after December 15, 2018, including annual and interim periods thereafter. We have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply the standard to the comparative periods presented in our financial statements. On the date of adoption, we will recognize a cumulative-effect adjustment in retained earnings due to impairment of certain right-of-use assets as of the effective date. We will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. We will not elect the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of right-of-use assets. Further, we will elect a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. We are still assessing the impact of the standard on our accounting policies, processes, disclosures, consolidated statements of operations, and internal control over financial reporting and have implemented necessary changes to our existing lease system to report in accordance with the new standard. The adoption of ASU 2016-02 will have a significant impact on our consolidated balance sheets as we will record material assets and obligations primarily related to 437 restaurant operating leases and corporate office lease. We expect to record operating lease liabilities in a range of approximately $235 million to $255 million based on the present value of the remaining minimum rental payments using incremental borrowing rates as of the effective date. We expect to record corresponding right-of-use assets, based upon the operating lease liabilities adjusted for impairment of right-of-use assets recorded in retained earnings at December 31, 2018, prepaid and deferred rent, and unamortized initial direct costs. We expect no material impact on our consolidated statements of cash flows. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718).” The pronouncement simplifies the accounting for the taxes related to stock-based compensation, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification within the statement of cash flows. The pronouncement is effective for annual periods beginning after December 15, 2016, including annual and interim periods. Potbelly adopted ASU 2016-09 in the first quarter of 2017. The primary impact of adoption was the recognition of excess tax benefits and deficiencies that arise upon vesting or exercise of share-based payments in the Income Statement as income tax expense instead of a component of equity recorded to paid-in capital. This aspect of the new guidance, which was required to be adopted prospectively, resulted in an additional income tax expense of $2.1 million for the fiscal year 2017. Potbelly has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Excess income tax benefits and deficiencies from stock-based compensation arrangements are now classified as cash flow from operations, instead of as cash flow used in financing activities. The Company elected to apply this change in presentation prospectively and as such prior periods have not been adjusted. Additionally, in accordance with the new standard, the Company now excludes excess tax benefits and deficiencies from the assumed proceeds available to repurchase shares in the computation of the Company’s diluted earnings per share. (s) Commitments and Contingencies The Company is subject to legal proceedings including claims and liabilities, such as employment-related claims and slip and fall cases, which arise in the ordinary course of business and are generally covered by insurance. The Company accrues for such liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are based on developments to date, the Company’s estimates of the outcomes of these matters and its experience in contesting, litigating and settling other similar matters. The Company believes resolution of these matters, individually and in the aggregate, will not have a material adverse effect on the Company’s financial position, liquidity or future operations. Many of the food products the Company purchases are subject to changes in the price and availability of food commodities, including, among other things, beef, poultry, grains, dairy and produce. The Company works with its suppliers and uses a mix of forward pricing protocols for certain items including agreements with its supplier on fixed prices for deliveries at a time in the future and agreements on a fixed price with its supplier for the duration of those protocols. The Company also utilizes formula pricing protocols under which the prices the Company pays are based on a specified formula related to the prices of the goods, such as spot prices. The Company’s use of any forward pricing arrangements varies substantially from time to time and these arrangements tend to cover relatively short periods (i.e., typically twelve months or less). Such contracts are used in the normal purchases of the Company’s food products and not for speculative purposes, and as such are not required to be evaluated as derivative instruments. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (3) Fair Value Measurement The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current liabilities approximate fair values due to the short maturities of these balances. The Company assesses potential impairments to its long-lived assets, which includes property and equipment, on a quarterly basis or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Shop-level assets are grouped at the individual shop-level for the purpose of the impairment assessment. Recoverability of an asset is measured by a comparison of the carrying amount of an asset to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the shop assets was determined using the discounted future cash flow method of anticipated cash flows through the shop’s lease-end date using fair value measurement inputs classified as Level 3. Level 3 inputs are derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. After performing a periodic review of the Company’s shops during each quarter of 2018, 2017 and 2016, it was determined that indicators of impairment were present for certain shops as a result of continued underperformance. The Company performed an impairment analysis related to these shops and recorded impairment charges of $13.4 million, $10.6 million and $4.0 million for the fiscal years 2018, 2017 and 2016, respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | (4) Earnings (Loss) Per Share Basic and diluted income per common share attributable to common stockholders are calculated using the weighted average number of common shares outstanding for the period. Diluted income per common share attributable to common stockholders is computed by dividing the income allocated to common stockholders by the weighted average number of fully diluted common shares outstanding. In periods of a net loss, no potential common shares are included in diluted shares outstanding as the effect is anti-dilutive. For the fiscal year 2018, the Company had a loss per share, therefore, shares were excluded for potential stock option exercises. The following table summarizes the earnings (loss) per share calculation: Fiscal Year 2018 2017 2016 Net income (loss) attributable to Potbelly Corporation $ (8,878 ) $ (6,956 ) $ 8,212 Weighted average common shares outstanding-basic 25,173,171 25,045,427 25,623,809 Plus: Effect of potential stock options exercise — — 549,578 Plus: Effect of potential warrant exercise — — 57,980 Weighted average common shares outstanding-diluted 25,173,171 25,045,427 26,231,367 Income (loss) per share available to common stockholders- basic $ (0.35 ) $ (0.28 ) $ 0.32 Income (loss) per share available to common stockholders- diluted $ (0.35 ) $ (0.28 ) $ 0.31 Potentially dilutive shares that are considered anti-dilutive: Shares 2,499,139 3,375,591 1,164,047 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | (5) Property and Equipment Property and equipment, net consisted of the following (in thousands): December 30, December 31, 2018 2017 Leasehold improvements $ 169,300 $ 174,602 Machinery and equipment 48,606 49,427 Furniture and fixtures 33,177 33,893 Computer equipment and software 35,159 29,832 Construction in progress 1,938 3,831 288,180 291,585 Less: Accumulated depreciation (200,398 ) (187,726 ) $ 87,782 $ 103,859 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 30, 2018 | |
Accrued Liabilities Current [Abstract] | |
Accrued Expenses | (6) Accrued Expenses Accrued expenses consisted of the following (in thousands): December 30, December 31, 2018 2017 Accrued labor and related expenses $ 10,324 $ 7,352 Deferred gift card revenue 1,821 2,305 Accrued occupancy expenses 2,309 2,387 Deferred rent—current 1,250 1,011 Accrued corporate and shop expenses 1,446 1,882 Accrued utilities 1,304 1,311 Accrued sales and use tax 3,001 2,760 Accrued construction 147 891 Accrued contract termination costs (a) 392 27 Accrued legal and professional fees 128 177 Accrued other 2,907 3,170 Total $ 25,029 $ 23,273 (a) The Company incurs expenses associated with exit activity for certain signed lease agreements, which are recognized in general and administrative expenses. Accrued contract termination costs consisted of the following (in thousands): December 30, December 31, 2018 2017 Accrued contract termination costs—beginning balance $ 27 $ 28 Contract termination costs incurred 1,461 578 Contract termination costs settled and paid (1,096 ) (579 ) Accrued contract termination costs—ending balance $ 392 $ 27 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes Income (loss) before income taxes for the Company’s domestic and foreign operations was as follows (in thousands): Fiscal Year 2018 2017 2016 Domestic operations $ (11,381 ) $ (2,513 ) $ 12,411 Foreign operations 637 466 468 Total $ (10,744 ) $ (2,047 ) $ 12,879 Income tax expense (benefit) consisted of the following (in thousands): Fiscal Year 2018 2017 2016 Federal: Current $ (339 ) $ (3,728 ) $ 4,652 Deferred (1,644 ) 8,792 (1,386 ) (1,983 ) 5,064 3,266 State and Local: Current 73 150 1,426 Deferred (305 ) (584 ) (273 ) (232 ) (434 ) 1,153 Foreign: Current 20 13 24 20 13 24 Income tax expense (benefit) $ (2,195 ) $ 4,643 $ 4,443 Income tax expense (benefit) differed from the amounts computed by applying the U.S. federal income tax rates to income (loss) before income taxes as a result of the following (in thousands): Fiscal Year 2018 2017 2016 U.S. federal statutory tax 21.0 % 35.0 % 35.0 % Computed “expected” tax expense (benefit) $ (2,256 ) $ (716 ) $ 4,508 Increase (reduction) resulting from: Minority interest (87 ) (105 ) (89 ) Permanent differences 220 96 131 State and local income taxes, net of federal income tax effect (436 ) 5 673 FICA and other tax credits (522 ) (502 ) (556 ) Equity compensation 1,089 2,112 — Adjustments (252 ) (93 ) (300 ) Rate change 49 3,846 76 $ (2,195 ) $ 4,643 $ 4,443 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was enacted into law making significant changes to the U.S. tax code, including: (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) implementing bonus depreciation that will allow for full expensing of qualified property; (3) implementing limitations on the deductibility of certain executive compensation; and (4) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. At December 31, 2017, the Company had not completed the accounting for the tax effects of enactment of the Tax Act; however, the Company made a reasonable estimate which was recorded in the fourth quarter of 2017. During 2018, the Company made no changes to its initial estimates recorded at December 31, 2017 or the effective tax rate for 2018. As of December 30, 2018, the Company has completed its accounting related to the tax effects of enactment of the Tax Act. Due to the adoption of ASU 2016-09 in 2017, all excess tax benefits and deficiencies are recognized as income tax expense in the Company’s Consolidated Statement of Operations. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities reflected in the consolidated balance sheets are presented below (in thousands): December 30, December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 576 $ 11 Accrued liabilities 1,449 842 Deferred revenue 543 120 Stock-based compensation 2,685 4,495 Property and equipment 5,037 3,258 Deferred rent 4,373 4,229 Tax credits and charitable contribution carryforwards 981 273 Other — 127 Total deferred tax assets 15,644 13,355 Net deferred tax assets 15,644 13,355 Deferred tax liabilities: Prepaids (466 ) (452 ) Intangible assets (1,075 ) (977 ) Smallwares (566 ) (574 ) Other (152 ) (150 ) Total deferred tax liabilities (2,259 ) (2,153 ) Net deferred tax assets $ 13,385 $ 11,202 As of December 30, 2018 and December 31, 2017, the Company has no valuation allowances recorded based on management’s assessment of the amount of its deferred tax assets that are more likely than not to be realized. In assessing the realizability of deferred tax assets, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and results of recent operations. monitor its operating performance and evaluate the likelihood of the future realization of these deferred tax assets. If actual operating results differ from our projections, or if future shop impairment charges are significant, a valuation allowance may be necessary. In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 30, 2018 and December 31, 2017, the Company had no interest or penalties accrued. The tax years prior to 2014 are generally closed for examination by the United States Internal Revenue Service. However, certain of these tax years are open for examination as a result of net operating losses generated in these years and utilized in subsequent years. The Company’s last IRS examination was for the 2014 tax year; no IRS audits are currently ongoing. |
Debt and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Dec. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | (8) Debt and Credit Facilities Credit facility JPMorgan Chase Bank, N.A. On December 9, 2015, the Company entered into an amended and restated five-year revolving credit facility agreement that expires in November 2020. The credit agreement provides, among other things, for a revolving credit facility in a maximum principal amount of $50 million, with possible future increases to $75 million under an expansion feature. Borrowings under the credit facility generally bear interest at the Company’s option at either (i) a eurocurrency rate determined by reference to the applicable LIBOR rate plus a margin ranging from 1.00% to 1.75% or (ii) a prime rate as announced by JP Morgan Chase plus a margin ranging from 0.00% to 0.50%. The applicable margin is determined based upon the Company’s consolidated total leverage ratio. On the last day of each calendar quarter, the Company is required to pay a commitment fee ranging from 0.125% to 0.20% per annum in respect of any unused commitments under the credit facility, with the specific rate determined based upon the Company’s consolidated total leverage ratio. So long as certain total leverage ratios are met, there is no limit on the “restricted payments” (primarily distributions and equity repurchases) that the Company may make. As of December 30, 2018 the Company had no amounts outstanding under the credit facility. |
Capital Stock and Warrants
Capital Stock and Warrants | 12 Months Ended |
Dec. 30, 2018 | |
Equity [Abstract] | |
Capital Stock and Warrants | (9) Capital Stock and Warrants As of December 30, 2018 and December 31, 2017, the Company had authorized an aggregate of 210,000,000 shares of capital stock, of which 200,000,000 shares were designated as common stock and 10,000,000 shares were designated as preferred stock. As of December 30, 2018, the Company had issued and outstanding 32,943,740 and 24,142,586 shares of common stock, respectively. As of December 31, 2017, the Company had issued and outstanding 31,831,196 and 24,999,688 shares of common stock, respectively. Common Stock As of December 30, 2018, each share of common stock has the same relative rights and was identical in all respects to each other share of common stock. Each holder of shares of common stock is entitled to one vote for each share held by such holder at all meetings of stockholders. On May 8, 2018, the Company announced that its Board of Directors authorized a stock repurchase program for up to $65.0 million of its outstanding common stock, replacing the Company’s previous $30.0 million share repurchase program. The current program permits the Company, from time to time, to purchase shares in the open market (including in pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) or in privately negotiated transactions. The number of common shares actually repurchased, and the timing and price of repurchases, will depend upon market conditions, Securities and Exchange Commission requirements and other factors. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. During the fiscal year 2018, the Company repurchased 1,948,245 shares of its common stock for approximately $22.9 million under the new stock repurchase program and had repurchased 5,000 shares of its common stock for approximately $0.1 million under the previous share repurchase program, including cost and commission, in open market transactions. As of December 30, 2018, the remaining dollar value of authorization under the share repurchase program was $42.1 million, which does not include commission. Repurchased shares are included as treasury stock in the condensed consolidated balance sheets and the condensed consolidated statements of equity. On June 14, 2018, the Company registered 1,000,000 additional shares of its common stock, par value $0.01, reserved for issuance under the Amended and Restated 2013 Long-Term Incentive Plan. As a result, the total number of shares registered under the 2013 Long-Term Incentive Plan is 3,500,000. Warrants The Company had zero warrants outstanding as of both December 30, 2018 and December 31, 2017. Outstanding warrants were exercised in June 2017 with proceeds of $2.0 million received by the Company. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 30, 2018 | |
Leases [Abstract] | |
Operating Leases | (10) Operating Leases The Company leases office space for its corporate office and commercial spaces for its shops under various long-term operating lease agreements. The leases for the Company’s shop locations generally have initial terms of 10 years and typically provide for two renewal options in five-year increments as well as for rent escalations. These leases expire or become subject to renewal clauses at various dates from 2019 to 2028. Some of the leases provide for base rent, plus additional rent based on gross sales, as defined in each lease agreement. The Company is also generally obligated to pay certain real estate taxes, utilities, building operating expenses, insurance, and various other expenses related to properties. Rental expense under operating lease agreements were as follows (in thousands): Fiscal Year 2018 2017 2016 Minimum rentals $ 46,334 $ 45,334 $ 40,252 Contingent rentals 1,295 1,408 1,755 Less: sublease rentals — (33 ) (94 ) Total $ 47,629 $ 46,709 $ 41,913 A schedule by year of future minimum rental payments required under operating leases, excluding contingent rent, that have initial or remaining non-cancelable lease terms in excess of one year, as of December 30, 2018, is as follows (in thousands): Years Ending Minimum 2019 47,918 2020 45,828 2021 41,497 2022 36,120 2023 31,060 Thereafter 138,928 Total minimum payments required* $ 341,351 * Minimum payments have not been reduced by minimum sublease rentals of $1.6 million due in the future Certain leases have outstanding letters of credit in lieu of rent deposits expiring at various dates through September 2019. The letters of credit were $0.2 million, $0.2 million and $0.7 million in aggregate for the fiscal years ended December 30, 2018, December 31, 2017 and December 25, 2016, respectively. Under the credit facility, outstanding letters of credit are subject to an annual fee of 1.5% and reduce the available borrowing to the Company. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 30, 2018 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | (11) Employee Benefit Plan The Company sponsors a 401(k) profit sharing plan for all employees who are eligible based upon age and length of service. The Company made matching contributions of $0.4 million for fiscal years 2018, 2017 and 2016. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | (12) Stock-Based Compensation Stock-Based Compensation Granted Under the 2013 Long-Term Incentive Plan Stock options and restricted stock units are awarded under the 2013 Long-Term Incentive Plan to eligible employees and certain non-employee members of the Board of Directors On July 31, 2013, the Company’s Board of Directors approved the adoption of the 2013 Plan, which replaced the 2004 Equity Incentive Plan (the “2004 Plan” and together with the 2013 Plan, the “Plans”) in conjunction with the Company’s IPO. Upon approval of the 2013 Plan, the Company no longer issued awards under the 2004 Plan. The 2004 Plan expired in February 2014, but will continue to govern outstanding awards granted prior to its termination. As of December 30, 2018, there have been 2,514,194 options, 28,240 shares of common stock and 460,855 shares of restricted stock units granted under the 2013 Plan. As of May 2018, restricted stock units granted under the 2013 Plan count against shares reserved for future issuances at a ratio of 2:1. As of December 30, 2018, there are 1,699,387 shares reserved for future issuance. Stock Options Under the Plans, the number of shares and exercise price of each option are determined by the committee designated by the Company’s Board of Directors. The options granted are generally exercisable within a 10-year period from the date of grant. The company awards options to certain employees including the senior leadership team. Activity under the Plans and the Agreement is as follows: Options Shares (Thousands) Weighted Average Exercise Price Aggregate Intrinsic Value (Thousands) Weighted Average Remaining Term (Years) Outstanding—December 27, 2015 4,368 $ 10.53 $ 9,742 5.10 Granted 369 13.65 Exercised (536 ) 10.77 Canceled (188 ) 14.40 Outstanding—December 25, 2016 4,013 $ 10.61 $ 13,455 4.78 Granted 464 12.09 Exercised (653 ) 9.94 Canceled (515 ) 12.18 Outstanding—December 31, 2017 3,309 $ 10.71 $ 7,699 4.90 Granted 203 11.27 Exercised (993 ) 8.30 Canceled (369 ) 13.63 Outstanding—December 30, 2018 2,150 $ 11.49 $ 378 5.13 Exercisable—December 30, 2018 1,611 $ 11.14 $ 378 4.52 The following table reflects the average assumptions utilized in the Black-Scholes option-pricing model to value the options granted for each year: 2018 2017 2016 Risk-free interest rate 3.0 % 2.0 % 1.7 % Expected life (years) 6.25 6.25 7.00 Expected dividend yield — — — Volatility 35.0 % 36.0 % 49.4 % Weighted average grant date fair value $ 4.52 $ 4.76 $ 7.05 The risk-free rate is based on U.S. Treasury rates in effect at the time of the grant with a similar duration of the expected life of the options. The expected life of options granted is derived from the average of the vesting period and the term of the option. The Company has not paid dividends to date (with exception to the one-time dividend paid to stockholders prior to the initial public offering) and does not plan to pay dividends in the near future. RSUs The Company awards restricted stock units (“RSUs”) to certain non-employee members of its Board of Directors and the senior leadership team. In May 2018, the Company issued 74,760 shares of RSUs with a grant date fair value of $13.25 upon issuance. In June 2018, the Company issued 19,157 RSUs with a grant date fair value of $13.05 upon issuance. In December 2018, the Company issued 37,353 RSUs with a grant date fair value of $9.37 upon issuance. The Board of Director grants have a vesting schedule of 50% on the first anniversary of the grant date and 50% on the second anniversary of the grant date. The senior leadership team grants vest in one-third increments over a three-year period. In May 2017, the Company issued 153,369 shares of RSUs with a grant date fair value of $11.05 upon issuance. In August 2017, the Company issued 2,608 shares of RSUs with a grant date fair value of $11.15 upon issuance. In November 2017, the Company issued 6,848 and 78,125 shares of RSUs with grant date fair values of $11.50 and $12.80 upon issuance, respectively. In May 2016, the Company issued 52,558 shares of RSUs with a grant date fair value of $13.27 upon issuance. Stock-Based Compensation Expense Stock-based compensation is measured at the grant date, based on the calculated fair value of the award and is recognized as expense over the requisite employee service period, which is generally the vesting period of the grant, with a corresponding increase to additional paid-in-capital |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | (13) Quarterly Financial Data (Unaudited) The unaudited quarterly information includes all normal recurring adjustments that the Company considers necessary for the fair presentation of the information shown below. The Company’s quarterly results have been and will continue to be affected by the timing of new shop openings and their associated pre-opening costs. As a result of these and other factors, the financial results for any quarter may not be indicative of the results for any future period. The following table presents selected unaudited quarterly financial data for periods indicated (in thousands, except per share data): Fiscal Year 2018 (1) April 1 July 1 September 30 December 30 Total revenues $ 102,917 $ 110,347 $ 106,996 $ 102,378 Income (loss) from operations (2,630 ) 95 (2,697 ) (5,370 ) Net income attributable to Potbelly Corporation (2,194 ) (360 ) (1,961 ) (4,363 ) Income per share available to common stockholders-basic (0.09 ) (0.01 ) (0.08 ) (0.17 ) Income per share available to common stockholders-diluted (0.09 ) (0.01 ) (0.08 ) (0.17 ) Fiscal Year 2017 (1) March 26 June 25 September 24 December 31 Total revenues $ 101,699 $ 108,136 $ 106,127 $ 112,149 Income from operations 1,263 164 (574 ) (2,776 ) Net income (loss) attributable to Potbelly Corporation 683 (138 ) (240 ) (7,261 ) Income (loss) per share available to common stockholders-basic 0.03 (0.01 ) (0.01 ) (0.29 ) Income (loss) per share available to common stockholders-diluted 0.03 (0.01 ) (0.01 ) (0.29 ) (1) Fiscal year 2018 was a 52-week year. Each quarter of the fiscal year consisted of 13 weeks. Fiscal year 2017 was a 53-week year. The first three fiscal quarters consisted of 13 weeks and the fourth fiscal quarter consisted of 14 weeks. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies The Company is subject to legal proceedings, claims and liabilities, such as employment-related claims and slip and fall cases, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to those actions should not have a material adverse impact on the Company’s financial position or results of operations and cash flows. In October 2017, plaintiffs filed a purported collective and class action lawsuit (the “Complaint”) in the United States District Court for the Southern District of New York against the Company alleging violations of the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL). The plaintiffs allege that the Company violated the FLSA and NYLL by not paying overtime compensation to our assistant managers and violated NYLL by not paying spread-of-hours pay. The Complaint was brought as a nationwide “collective action” under the FLSA and as a “class action” under NYLL. Since the filing of the Complaint, the plaintiffs have stated that they do not intend to pursue the New York state class action. They have indicated, however, an intent to pursue an Illinois state law class action, but have not yet filed an amended complaint. Potbelly believes the assistant managers were properly classified under state and federal law. The Company intends to vigorously defend this action. This case is at an early stage, and Potbelly is therefore unable to make a reasonable estimate of the probable loss or range of losses, if any, that might arise from this matter. |
Revenue
Revenue | 12 Months Ended |
Dec. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | (15) Revenue Potbelly primarily earns revenue at a point in time through sales at our sandwich shop locations and records such revenue net of sales-related taxes collected from customers. The payment on these sales is due at the time of the customer’s purchase. The Company also receives royalties from franchisees on their respective sales, which are recognized at the point in time the sale is made and invoiced weekly. Potbelly also records revenue from sales over time related to upfront franchise fees, gift card redemptions and breakage. For the fiscal year ended December 30, 2018, revenue recognized from all revenue sources on point in time sales was $421.8 million, and revenue recognized from sales over time was $0.8 million. Franchise Revenue Potbelly licenses intellectual property and trademarks to franchisees through franchise agreements. As part of these franchise agreements, Potbelly receives an upfront payment from the franchisee, which the Company recognizes over the term of the franchise agreement. The Company records a contract liability for the unearned portion of the upfront franchise payments. Gift Card Redemptions / Breakage Revenue Potbelly sells gift cards to customers, records the sale as a contract liability and recognizes the associated revenue as the gift card is redeemed. A portion of these gift cards are not redeemed by the customer, which is recognized by the Company as revenue as a percentage of customers gift card redemptions. The expected breakage amount recognized is determined by a historical data analysis on gift card redemption patterns. Contract Liabilities As described above, the Company records current and noncurrent contract liabilities for upfront franchise fees as well as gift cards. There are no other contract liabilities or contract assets recorded by the Company. The opening and closing balances of the Company’s current and noncurrent contract liabilities from contracts with customers were as follows: Current Contract Liability Noncurrent Contract Liability (Thousands) (Thousands) Beginning balance as of January 1, 2018 $ (2,325 ) $ (2,144 ) Ending balance as of December 30, 2018 (2,184 ) (1,631 ) Decrease in contract liability $ (141 ) $ (513 ) The aggregate value of remaining performance obligations on outstanding contracts was $3.8 million as of December 30, 2018. The decrease in the liability during the 52 weeks ended December 30, 2018 was a result of gift card redemptions offset by purchases of new gift cards and recognition of franchise fees. The Company expects to recognize revenue related to contract liabilities as follows (in thousands), which may vary based upon franchise activity as well as gift card redemption patterns: Years Ending Amount 2019 $ 2,184 2020 $ 199 2021 $ 195 2022 $ 189 2023 $ 501 Thereafter $ 547 Total revenue recognized $ 3,815 For the 52 weeks ended December 30, 2018, the amount of revenue recognized related to the January 1, 2018 liability ending balance was $2.1 million. This revenue related to the recognition of gift card redemptions and upfront franchise fees. For the year ended December 30, 2018, the Company did not recognize any revenue from obligations satisfied (or partially satisfied) in prior periods. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | (a) Principles of Consolidation The consolidated financial statements include the accounts of Potbelly Corporation; its wholly owned subsidiary, Potbelly Illinois, Inc. (“PII”); PII’s wholly owned subsidiaries, Potbelly Franchising, LLC and Potbelly Sandwich Works LLC (“LLC”); eight of LLC’s wholly owned subsidiaries and LLC’s six joint ventures, collectively, the “Company.” All intercompany balances and transactions have been eliminated in consolidation. For consolidated joint ventures, non-controlling interest represents a non-controlling partner’s share of the assets, liabilities and operations related to the seven joint venture investments. The Company has ownership interests ranging from 51-80% in these consolidated joint ventures. The Company does not have any components of other comprehensive income (loss) recorded within its consolidated financial statements, and, therefore, does not separately present a statement of comprehensive income (loss) in its consolidated financial statements. |
Reporting Period | (b) Reporting Period The Company uses a 52/53-week fiscal year that ends on the last Sunday of the calendar year. Approximately every five or six years a 53rd week is added. Fiscal years 2018, 2017 and 2016 consisted of 52, 53 and 52 weeks, respectively. |
Segment Reporting | (c) Segment Reporting The Company owns and operates Potbelly Sandwich Shops concepts in the United States. The Company also has domestic and international franchise operations of Potbelly Sandwich Shops concepts. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer. As the CODM reviews financial performance and allocates resources at a consolidated level on a recurring basis, the Company has one operating segment and one reportable segment. |
Use of Estimates | (d) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America U.S. GAAP |
Fair Value Measurements | (e) Fair Value Measurements The Company applies fair value accounting for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company assumes the highest and best use of the asset by market participants in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels, and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices in active markets for identical assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Inputs that are both unobservable and significant to the overall fair value measurement reflect an entity’s estimates of assumptions that market participants would use in pricing the asset or liability. |
Financial Instruments | (f) Financial Instruments The Company records all financial instruments at cost, which is the fair value at the date of transaction. The amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and all other current liabilities approximate their fair value because of the short-term maturities of these instruments. |
Cash and Cash Equivalents | (g) Cash and Cash Equivalents The Company considers all highly liquid investment instruments with an original maturity of three months or less when purchased to be cash equivalents. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits; however, the Company has not experienced any losses in these accounts. The Company believes it is not exposed to any significant credit risk. These are valued within the fair value hierarchy as Level 1 measurements. |
Accounts Receivable, net | (h) Accounts Receivable, net Accounts receivable, net consists of credit card receivables, amounts owed from vendors and miscellaneous receivables. The Company had credit card receivables of $2.0 million and $1.9 million as of December 30, 2018 and December 31, 2017, respectively. |
Inventories | (i) Inventories Inventories, which consist of food products, paper goods and supplies, and promotional items, are valued at the lower of cost (first-in, first-out) or market. No adjustment is deemed necessary to reduce inventory to the lower of cost or market value due to the rapid turnover and high utilization of inventory. |
Property and Equipment | (j) Property and Equipment Property and equipment acquired is recorded at cost less accumulated depreciation. Property and equipment is depreciated based on the straight-line method over the estimated useful lives, generally ranging from three to five years for furniture and fixtures, computer equipment, computer software, and machinery and equipment. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the related lease life, generally 10 to 15 years. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease. Direct costs and expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized, whereas the costs of repairs and maintenance are expensed when incurred. Capitalized costs are recorded as part of the asset to which they relate, primarily to leasehold improvements, and such costs are amortized over the asset’s useful life. When assets are retired or sold, the asset cost and related accumulated depreciation are removed from the consolidated balance sheet and any gain or loss is recorded in the consolidated statement of operations. The Company assesses potential impairments to its long-lived assets, which includes property and equipment, on a quarterly basis or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Shop-level assets are grouped at the individual shop-level for the purpose of the impairment assessment. Recoverability of an asset is measured by a comparison of the carrying amount of an asset to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the shop assets is determined using the discounted future cash flow method of anticipated cash flows through the shop’s lease-end date using fair value measurement inputs classified as Level 3. Level 3 inputs are derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company used a weighted average cost of capital to discount the future cash flows. After performing periodic reviews of the company-operated shops during each quarter of 2018, 2017 and 2016, it was determined that indicators of impairment were present for certain shops as a result of continued underperformance. The Company performed an impairment analysis related to these shops and recorded impairment charges of $13.4 million, $10.6 million and $4.0 million for the fiscal years 2018, 2017 and 2016, respectively. |
Intangible Assets | (k) Intangible Assets The Company reviews indefinite-lived intangible assets, which includes goodwill and tradenames, annually at fiscal year-end for impairment or more frequently if events or circumstances indicate that the carrying value may not be recoverable. An impaired asset is written down to its estimated fair value based on the most recent information available. The Company assesses the fair values of its intangible assets, and its reporting unit for goodwill testing purposes, using an income-based approach. Under the income approach, fair value is based on the present value of estimated future cash flows. The income approach is dependent on a number of factors, including forecasted revenues and expenses, appropriate discount rates and other variables. The annual impairment review utilizes the estimated fair value of the intangible assets and the overall reporting unit and compares the estimated fair values to the carrying values as of the testing date. If the carrying value of these intangible assets or the reporting unit exceeds the fair values, the Company would then use the fair values to measure the amount of any required impairment charge. No impairment charge was recognized for intangible assets for any of the fiscal periods presented. |
Pre-opening Costs | (l) Pre-opening Costs Pre-opening costs consist of costs incurred prior to opening a new shop and are made up primarily of travel, employee payroll and training costs incurred prior to the shop opening, as well as occupancy costs incurred from when the Company takes site possession to shop opening. Shop pre-opening costs are expensed as incurred. |
Advertising Expenses | (m) Advertising Expenses Advertising costs are expensed as incurred and are included in general and administrative expenses in the consolidated statements of operations. Advertising expenses were $4.3 million, $3.4 million and $3.0 million in fiscal years 2018, 2017 and 2016, respectively. |
Income Taxes | (n) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are attributed to differences between financial statement and income tax reporting. Deferred tax assets, net of any valuation allowances, represent the future tax return consequences of those differences and for operating loss and tax credit carryforwards, which will be deductible when the assets are recovered. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. In making this assessment of realizability of deferred tax assets, the Company considers all positive and negative evidence as to whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Deferred tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns. The Company accounts for uncertain tax positions under current accounting guidance, which prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by tax authorities, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. |
Stock-Based Compensation | (o) Stock-Based Compensation The Company has granted stock options under its 2001 Equity Incentive Plan (the “2001 Plan”), 2004 Equity Incentive Plan (the “2004 Plan”) and 2013 Long-Term Incentive Plan, as amended (the “2013 Plan” and together with the 2004 Plan and 2001 Plan, the “Plans”) and restricted stock units (“RSUs”) under its 2013 Plan. The Plans permit the granting of awards to employees and non-employee officers, consultants, agents, and independent contractors of the Company in the form of stock appreciation rights, stock awards and units, and stock options. The Plans give broad powers to the Company’s board of directors to administer and interpret the Plans, including the authority to select the individuals to be granted options and rights and to prescribe the particular form and conditions of each option to be granted. In September 2011, the 2001 Plan expired with options outstanding under the plan still available for exercise. On July 31, 2013, the Company’s board of directors approved the adoption of the 2013 Plan, which replaced the 2004 Plan in conjunction with the Company’s IPO. Upon approval of the 2013 Plan, the Company no longer issued awards under the 2004 Plan. The 2004 Plan expired in February 2014, but will continue to govern outstanding awards granted prior to its termination. The Company accounts for its stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718, Stock Based Compensation RSUs. For the Company’s non-employee directors, the Company records stock compensation expense on the grant date of the RSUs. |
Leases | (p) Leases The Company leases retail shops, warehouse and office space under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, lease premiums, rent escalation clauses, and/or contingent rent provisions. For purposes of recognizing incentives, premiums, and minimum rental expenses on a straight-line basis over the terms of the leases, the Company uses the date it takes possession of the leased space for construction purposes as the beginning of the term, which is generally two to three months prior to a shop’s opening date. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease. In addition to rental expense, certain leases require the Company to pay a portion of real estate taxes, utilities, building operating expenses, insurance and other charges in addition to rent. For tenant improvement allowances, rent escalations, and rent holidays, the Company records a deferred rent liability in its consolidated balance sheets and amortizes the deferred rent over the terms of the leases as reductions to occupancy expense in the consolidated statements of operations. |
Revenue Recognition | (q) Revenue Recognition Revenue from retail shops is presented net of discounts and recognized when food and beverage products are sold. Sales taxes collected from customers are excluded from revenues and the obligation is included in accrued liabilities until the taxes are remitted to the appropriate taxing authorities. The company adopted ASC 606 as January 1, 2018 using the modified retrospective method applied to contracts that were not completed as of the date of adoption. Potbelly sells gift cards to customers, records the sale as a contract liability and recognizes the associated revenue as the gift card is redeemed. A portion of these gift cards are not redeemed by the customer, which is recognized by the Company as revenue as a percentage of customers gift card redemptions. The expected breakage amount recognized is determined by a historical data analysis on gift card redemption patterns. The Company recognized gift card breakage income of $312 thousand, $396 thousand and $254 thousand for the fiscal years ended 2018, 2017 and 2016, respectively, which is recorded within other operating expenses in the consolidated statements of operations. The Company earns an initial franchise fee, a franchise development agreement fee and ongoing royalty fees under the Company’s franchise agreements. Prior to 2018, initial franchise fees were recognized as revenue when the shop opened. These franchise fees are considered highly dependent upon and interrelated with the franchise right granted in the franchise agreement. As such, these franchise fees are recognized over the contractual term of the franchise agreement. Under the new method, the Company recognized franchise fee revenue of 0.8 million in fiscal year 2018. Under the previous method, the Company recognized franchise fee revenue of $0.7 million and $0.4 million in fiscal year 2017 and 2016, respectively. The Company records a contract liability for the unearned portion of the upfront franchise payments. The Company has deferred revenue related to initial franchise fees of $1.2 million and $0.7 million included in accrued expenses as of December 30, 2018 and December 31, 2017, respectively. Franchise development agreement fees represent the exclusivity rights for a geographical area paid by a third party to develop Potbelly shops for a certain period of time. Franchise development agreement fee payments received by the Company are recorded as deferred revenue in the consolidated balance sheet and amortized over the life of the franchise development agreement. The Company had deferred revenue related to franchise development agreement fees of $0.7 million and $0.5 million recorded in accrued expenses as of December 30, 2018 and December 31, 2017, respectively. Royalty fees are based on a percentage of sales and are recorded as revenue as the fees are earned and become receivable from the franchisee. The Company recognized royalty fees revenue of $2.4 million, $2.5 million and $1.9 million for fiscal years 2018, 2017, and 2016, respectively. |
Recent Accounting Pronouncements | (r) Recent Accounting Pronouncements I n May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers.” The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and International Financial Reporting Standards (IFRS). In addition, the FASB issued ASU 2016-08, ASU 2016-10, ASU 2016-12, ASU 2016-20, ASU 2017-13 and ASU 2017-14 in March 2016, April 2016, May 2016, December 2016, September 2017 and November 2017, respectively, to help provide interpretive clarifications on the new guidance in Accounting Standards Codification (ASC) Topic 606. Potbelly adopted the standard effective January 1, 2018 using the modified retrospective method applied to contracts that were not completed as of the date of adoption. The adoption does not have a material impact on sandwich shop sales, but impacted the recognition of franchise revenue and gift card breakage. Potbelly licenses intellectual property and trademarks to franchisees through franchise arrangements. As part of these agreements, Potbelly receives an initial franchise fee payment which historically was recognized as revenue when the shop opened. Effective for the annual period beginning January 1, 2018, initial franchise fees are recognized as revenue over the contractual term. Potbelly sells gift cards to customers and records the sale as a liability. The liability is released once the card is redeemed. Historically, a portion of these gift card sales were not redeemed by the customer (“breakage”) and Potbelly would recognize breakage two years after the period of sale. Effective for the annual period beginning January 1, 2018, expected breakage is recognized as customers redeem the gift cards. Upon adoption of the standard, Potbelly’s accumulated deficit (net of tax). The franchise revenue adjustment impacted accrued expenses, other long-term liabilities and deferred income taxes. The breakage adjustment impacted accrued expenses and deferred income taxes. Revenue recognized in the fiscal year 2018 was $0.1 million higher than it would have been under the previous methodology. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which will replace the existing guidance in ASC 840, “Leases.” The pronouncement requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee will recognize interest expense and amortization of the right-of-use asset and for operating leases, the lessee will recognize expense on a straight-line basis. The pronouncement is effective for fiscal years beginning after December 15, 2018, including annual and interim periods thereafter. We have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply the standard to the comparative periods presented in our financial statements. On the date of adoption, we will recognize a cumulative-effect adjustment in retained earnings due to impairment of certain right-of-use assets as of the effective date. We will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. We will not elect the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of right-of-use assets. Further, we will elect a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. We are still assessing the impact of the standard on our accounting policies, processes, disclosures, consolidated statements of operations, and internal control over financial reporting and have implemented necessary changes to our existing lease system to report in accordance with the new standard. The adoption of ASU 2016-02 will have a significant impact on our consolidated balance sheets as we will record material assets and obligations primarily related to 437 restaurant operating leases and corporate office lease. We expect to record operating lease liabilities in a range of approximately $235 million to $255 million based on the present value of the remaining minimum rental payments using incremental borrowing rates as of the effective date. We expect to record corresponding right-of-use assets, based upon the operating lease liabilities adjusted for impairment of right-of-use assets recorded in retained earnings at December 31, 2018, prepaid and deferred rent, and unamortized initial direct costs. We expect no material impact on our consolidated statements of cash flows. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718).” The pronouncement simplifies the accounting for the taxes related to stock-based compensation, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification within the statement of cash flows. The pronouncement is effective for annual periods beginning after December 15, 2016, including annual and interim periods. Potbelly adopted ASU 2016-09 in the first quarter of 2017. The primary impact of adoption was the recognition of excess tax benefits and deficiencies that arise upon vesting or exercise of share-based payments in the Income Statement as income tax expense instead of a component of equity recorded to paid-in capital. This aspect of the new guidance, which was required to be adopted prospectively, resulted in an additional income tax expense of $2.1 million for the fiscal year 2017. Potbelly has elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. Excess income tax benefits and deficiencies from stock-based compensation arrangements are now classified as cash flow from operations, instead of as cash flow used in financing activities. The Company elected to apply this change in presentation prospectively and as such prior periods have not been adjusted. Additionally, in accordance with the new standard, the Company now excludes excess tax benefits and deficiencies from the assumed proceeds available to repurchase shares in the computation of the Company’s diluted earnings per share. |
Commitments and Contingencies | (s) Commitments and Contingencies The Company is subject to legal proceedings including claims and liabilities, such as employment-related claims and slip and fall cases, which arise in the ordinary course of business and are generally covered by insurance. The Company accrues for such liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are based on developments to date, the Company’s estimates of the outcomes of these matters and its experience in contesting, litigating and settling other similar matters. The Company believes resolution of these matters, individually and in the aggregate, will not have a material adverse effect on the Company’s financial position, liquidity or future operations. Many of the food products the Company purchases are subject to changes in the price and availability of food commodities, including, among other things, beef, poultry, grains, dairy and produce. The Company works with its suppliers and uses a mix of forward pricing protocols for certain items including agreements with its supplier on fixed prices for deliveries at a time in the future and agreements on a fixed price with its supplier for the duration of those protocols. The Company also utilizes formula pricing protocols under which the prices the Company pays are based on a specified formula related to the prices of the goods, such as spot prices. The Company’s use of any forward pricing arrangements varies substantially from time to time and these arrangements tend to cover relatively short periods (i.e., typically twelve months or less). Such contracts are used in the normal purchases of the Company’s food products and not for speculative purposes, and as such are not required to be evaluated as derivative instruments. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Earnings (Loss) Per Share Calculation | The following table summarizes the earnings (loss) per share calculation: Fiscal Year 2018 2017 2016 Net income (loss) attributable to Potbelly Corporation $ (8,878 ) $ (6,956 ) $ 8,212 Weighted average common shares outstanding-basic 25,173,171 25,045,427 25,623,809 Plus: Effect of potential stock options exercise — — 549,578 Plus: Effect of potential warrant exercise — — 57,980 Weighted average common shares outstanding-diluted 25,173,171 25,045,427 26,231,367 Income (loss) per share available to common stockholders- basic $ (0.35 ) $ (0.28 ) $ 0.32 Income (loss) per share available to common stockholders- diluted $ (0.35 ) $ (0.28 ) $ 0.31 Potentially dilutive shares that are considered anti-dilutive: Shares 2,499,139 3,375,591 1,164,047 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): December 30, December 31, 2018 2017 Leasehold improvements $ 169,300 $ 174,602 Machinery and equipment 48,606 49,427 Furniture and fixtures 33,177 33,893 Computer equipment and software 35,159 29,832 Construction in progress 1,938 3,831 288,180 291,585 Less: Accumulated depreciation (200,398 ) (187,726 ) $ 87,782 $ 103,859 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Accrued Liabilities Current [Abstract] | |
Summary of Accrued Expenses | Accrued expenses consisted of the following (in thousands): December 30, December 31, 2018 2017 Accrued labor and related expenses $ 10,324 $ 7,352 Deferred gift card revenue 1,821 2,305 Accrued occupancy expenses 2,309 2,387 Deferred rent—current 1,250 1,011 Accrued corporate and shop expenses 1,446 1,882 Accrued utilities 1,304 1,311 Accrued sales and use tax 3,001 2,760 Accrued construction 147 891 Accrued contract termination costs (a) 392 27 Accrued legal and professional fees 128 177 Accrued other 2,907 3,170 Total $ 25,029 $ 23,273 (a) The Company incurs expenses associated with exit activity for certain signed lease agreements, which are recognized in general and administrative expenses. Accrued contract termination costs consisted of the following (in thousands): December 30, December 31, 2018 2017 Accrued contract termination costs—beginning balance $ 27 $ 28 Contract termination costs incurred 1,461 578 Contract termination costs settled and paid (1,096 ) (579 ) Accrued contract termination costs—ending balance $ 392 $ 27 |
Summary of Accrued Contract Termination Costs | Accrued contract termination costs consisted of the following (in thousands): December 30, December 31, 2018 2017 Accrued contract termination costs—beginning balance $ 27 $ 28 Contract termination costs incurred 1,461 578 Contract termination costs settled and paid (1,096 ) (579 ) Accrued contract termination costs—ending balance $ 392 $ 27 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes | Income (loss) before income taxes for the Company’s domestic and foreign operations was as follows (in thousands): Fiscal Year 2018 2017 2016 Domestic operations $ (11,381 ) $ (2,513 ) $ 12,411 Foreign operations 637 466 468 Total $ (10,744 ) $ (2,047 ) $ 12,879 |
Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following (in thousands): Fiscal Year 2018 2017 2016 Federal: Current $ (339 ) $ (3,728 ) $ 4,652 Deferred (1,644 ) 8,792 (1,386 ) (1,983 ) 5,064 3,266 State and Local: Current 73 150 1,426 Deferred (305 ) (584 ) (273 ) (232 ) (434 ) 1,153 Foreign: Current 20 13 24 20 13 24 Income tax expense (benefit) $ (2,195 ) $ 4,643 $ 4,443 |
Reconciliation of Differences Between Federal Statutory and Effective Income (Loss) Tax Rate | Income tax expense (benefit) differed from the amounts computed by applying the U.S. federal income tax rates to income (loss) before income taxes as a result of the following (in thousands): Fiscal Year 2018 2017 2016 U.S. federal statutory tax 21.0 % 35.0 % 35.0 % Computed “expected” tax expense (benefit) $ (2,256 ) $ (716 ) $ 4,508 Increase (reduction) resulting from: Minority interest (87 ) (105 ) (89 ) Permanent differences 220 96 131 State and local income taxes, net of federal income tax effect (436 ) 5 673 FICA and other tax credits (522 ) (502 ) (556 ) Equity compensation 1,089 2,112 — Adjustments (252 ) (93 ) (300 ) Rate change 49 3,846 76 $ (2,195 ) $ 4,643 $ 4,443 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities reflected in the consolidated balance sheets are presented below (in thousands): December 30, December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 576 $ 11 Accrued liabilities 1,449 842 Deferred revenue 543 120 Stock-based compensation 2,685 4,495 Property and equipment 5,037 3,258 Deferred rent 4,373 4,229 Tax credits and charitable contribution carryforwards 981 273 Other — 127 Total deferred tax assets 15,644 13,355 Net deferred tax assets 15,644 13,355 Deferred tax liabilities: Prepaids (466 ) (452 ) Intangible assets (1,075 ) (977 ) Smallwares (566 ) (574 ) Other (152 ) (150 ) Total deferred tax liabilities (2,259 ) (2,153 ) Net deferred tax assets $ 13,385 $ 11,202 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Leases [Abstract] | |
Schedule Of Rental Expenses Under Operating Leases | Rental expense under operating lease agreements were as follows (in thousands): Fiscal Year 2018 2017 2016 Minimum rentals $ 46,334 $ 45,334 $ 40,252 Contingent rentals 1,295 1,408 1,755 Less: sublease rentals — (33 ) (94 ) Total $ 47,629 $ 46,709 $ 41,913 |
Schedule of Future Minimum Rental Payments Under Operating Leases | A schedule by year of future minimum rental payments required under operating leases, excluding contingent rent, that have initial or remaining non-cancelable lease terms in excess of one year, as of December 30, 2018, is as follows (in thousands): Years Ending Minimum 2019 47,918 2020 45,828 2021 41,497 2022 36,120 2023 31,060 Thereafter 138,928 Total minimum payments required* $ 341,351 * Minimum payments have not been reduced by minimum sublease rentals of $1.6 million due in the future |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options Activity Under Plans and Agreement | Activity under the Plans and the Agreement is as follows: Options Shares (Thousands) Weighted Average Exercise Price Aggregate Intrinsic Value (Thousands) Weighted Average Remaining Term (Years) Outstanding—December 27, 2015 4,368 $ 10.53 $ 9,742 5.10 Granted 369 13.65 Exercised (536 ) 10.77 Canceled (188 ) 14.40 Outstanding—December 25, 2016 4,013 $ 10.61 $ 13,455 4.78 Granted 464 12.09 Exercised (653 ) 9.94 Canceled (515 ) 12.18 Outstanding—December 31, 2017 3,309 $ 10.71 $ 7,699 4.90 Granted 203 11.27 Exercised (993 ) 8.30 Canceled (369 ) 13.63 Outstanding—December 30, 2018 2,150 $ 11.49 $ 378 5.13 Exercisable—December 30, 2018 1,611 $ 11.14 $ 378 4.52 |
Schedule of Average Assumptions to Value Options | The following table reflects the average assumptions utilized in the Black-Scholes option-pricing model to value the options granted for each year: 2018 2017 2016 Risk-free interest rate 3.0 % 2.0 % 1.7 % Expected life (years) 6.25 6.25 7.00 Expected dividend yield — — — Volatility 35.0 % 36.0 % 49.4 % Weighted average grant date fair value $ 4.52 $ 4.76 $ 7.05 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Financial Data | The following table presents selected unaudited quarterly financial data for periods indicated (in thousands, except per share data): Fiscal Year 2018 (1) April 1 July 1 September 30 December 30 Total revenues $ 102,917 $ 110,347 $ 106,996 $ 102,378 Income (loss) from operations (2,630 ) 95 (2,697 ) (5,370 ) Net income attributable to Potbelly Corporation (2,194 ) (360 ) (1,961 ) (4,363 ) Income per share available to common stockholders-basic (0.09 ) (0.01 ) (0.08 ) (0.17 ) Income per share available to common stockholders-diluted (0.09 ) (0.01 ) (0.08 ) (0.17 ) Fiscal Year 2017 (1) March 26 June 25 September 24 December 31 Total revenues $ 101,699 $ 108,136 $ 106,127 $ 112,149 Income from operations 1,263 164 (574 ) (2,776 ) Net income (loss) attributable to Potbelly Corporation 683 (138 ) (240 ) (7,261 ) Income (loss) per share available to common stockholders-basic 0.03 (0.01 ) (0.01 ) (0.29 ) Income (loss) per share available to common stockholders-diluted 0.03 (0.01 ) (0.01 ) (0.29 ) (1) Fiscal year 2018 was a 52-week year. Each quarter of the fiscal year consisted of 13 weeks. Fiscal year 2017 was a 53-week year. The first three fiscal quarters consisted of 13 weeks and the fourth fiscal quarter consisted of 14 weeks. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Current and Noncurrent Contract Liabilities from Contracts with Customers | The opening and closing balances of the Company’s current and noncurrent contract liabilities from contracts with customers were as follows: Current Contract Liability Noncurrent Contract Liability (Thousands) (Thousands) Beginning balance as of January 1, 2018 $ (2,325 ) $ (2,144 ) Ending balance as of December 30, 2018 (2,184 ) (1,631 ) Decrease in contract liability $ (141 ) $ (513 ) |
Summary of Expected Revenue Recognition Related to Contract Liabilities | The Company expects to recognize revenue related to contract liabilities as follows (in thousands), which may vary based upon franchise activity as well as gift card redemption patterns: Years Ending Amount 2019 $ 2,184 2020 $ 199 2021 $ 195 2022 $ 189 2023 $ 501 Thereafter $ 547 Total revenue recognized $ 3,815 |
Organization and Other Matters
Organization and Other Matters - Additional Information (Detail) | Dec. 30, 2018Shop |
Minimum [Member] | |
Nature Of Business And Basis Of Presentation [Line Items] | |
Number of shops Potbelly Corporation owns or operates | 400 |
Middle East, Canada and India [Member] | |
Nature Of Business And Basis Of Presentation [Line Items] | |
Number of shops franchisees operate | 50 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018USD ($)JointVentureRestaurant | Sep. 30, 2018USD ($) | Jul. 01, 2018USD ($) | Apr. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 24, 2017USD ($) | Jun. 25, 2017USD ($) | Mar. 26, 2017USD ($) | Dec. 30, 2018USD ($)SubsidiaryJointVentureSegmentRestaurant | Dec. 31, 2017USD ($) | Dec. 25, 2016USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Number of wholly owned subsidiaries | Subsidiary | 8 | ||||||||||
Number of joint ventures | JointVenture | 6 | 6 | |||||||||
Number of operating segments | Segment | 1 | ||||||||||
Number of reportable segments | Segment | 1 | ||||||||||
Credit card receivables | $ 2,000,000 | $ 1,900,000 | $ 2,000,000 | $ 1,900,000 | |||||||
Impairment charges | 13,400,000 | 10,600,000 | $ 4,000,000 | ||||||||
Recognized impairment for intangible assets | 0 | 0 | 0 | ||||||||
Advertising expenses | 4,300,000 | 3,400,000 | 3,000,000 | ||||||||
Gift card breakage income recognized | 312,000 | 396,000 | 254,000 | ||||||||
Revenue | 102,378,000 | $ 106,996,000 | $ 110,347,000 | $ 102,917,000 | 112,149,000 | $ 106,127,000 | $ 108,136,000 | $ 101,699,000 | $ 422,638,000 | 428,111,000 | 407,131,000 |
Term of breakage recognized after sale | 2 years | ||||||||||
Increase in accumulated deficit | (229,558,000) | (219,990,000) | $ (229,558,000) | (219,990,000) | |||||||
Excess tax deficiency (benefit) from stock-based compensation | 1,089,000 | 2,112,000 | (31,000) | ||||||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Increase in accumulated deficit | $ 700,000 | 700,000 | |||||||||
Increase in revenue recognized | $ 100,000 | ||||||||||
Accounting Standards Update 2016-02 [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Number of restaurants | Restaurant | 437 | 437 | |||||||||
Accounting Standards Update 2016-09 [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Excess tax deficiency (benefit) from stock-based compensation | 2,100,000 | ||||||||||
Franchise Fee [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Revenue | $ 800,000 | 700,000 | 400,000 | ||||||||
Royalty Fees [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Revenue | 2,400,000 | 2,500,000 | $ 1,900,000 | ||||||||
Initial Franchise Fees [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Deferred revenue | $ 1,200,000 | 700,000 | 1,200,000 | 700,000 | |||||||
Franchise Development Agreement [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Deferred revenue | 700,000 | $ 500,000 | $ 700,000 | $ 500,000 | |||||||
Minimum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Ownership interest rate | 51.00% | ||||||||||
Estimated period of time between Company's possession of leased space and shop opening date | 2 months | ||||||||||
Minimum [Member] | Accounting Standards Update 2016-02 [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Operating lease liability | 235,000,000 | $ 235,000,000 | |||||||||
Minimum [Member] | Computer Software [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 3 years | ||||||||||
Minimum [Member] | Furniture and Fixtures [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 3 years | ||||||||||
Minimum [Member] | Computer Equipment [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 3 years | ||||||||||
Minimum [Member] | Machinery and Equipment [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 3 years | ||||||||||
Minimum [Member] | Leasehold Improvements [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 10 years | ||||||||||
Maximum [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Ownership interest rate | 80.00% | ||||||||||
Estimated period of time between Company's possession of leased space and shop opening date | 3 months | ||||||||||
Maximum [Member] | Accounting Standards Update 2016-02 [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Operating lease liability | $ 255,000,000 | $ 255,000,000 | |||||||||
Maximum [Member] | Computer Software [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 5 years | ||||||||||
Maximum [Member] | Furniture and Fixtures [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 5 years | ||||||||||
Maximum [Member] | Computer Equipment [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 5 years | ||||||||||
Maximum [Member] | Machinery and Equipment [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 5 years | ||||||||||
Maximum [Member] | Leasehold Improvements [Member] | |||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment estimated useful life | 15 years |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Fair Value Disclosures [Abstract] | |||
Impairment charges | $ 13.4 | $ 10.6 | $ 4 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Earnings (Loss) Per Share [Line Items] | |||
Potential common shares included in diluted shares outstanding | 2,499,139 | 3,375,591 | 1,164,047 |
Common Share Options [Member] | |||
Earnings (Loss) Per Share [Line Items] | |||
Potential common shares included in diluted shares outstanding | 0 |
Earnings (Loss) Per Share - Sum
Earnings (Loss) Per Share - Summary of Earnings (Loss) Per Share Calculation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) attributable to Potbelly Corporation | $ (4,363) | $ (1,961) | $ (360) | $ (2,194) | $ (7,261) | $ (240) | $ (138) | $ 683 | $ (8,878) | $ (6,956) | $ 8,212 |
Weighted average common shares outstanding-basic | 25,173,171 | 25,045,427 | 25,623,809 | ||||||||
Plus: Effect of potential stock options exercise | 549,578 | ||||||||||
Plus: Effect of potential warrant exercise | 57,980 | ||||||||||
Weighted average common shares outstanding-diluted | 25,173,171 | 25,045,427 | 26,231,367 | ||||||||
Income (loss) per share available to common stockholders-basic | $ (0.17) | $ (0.08) | $ (0.01) | $ (0.09) | $ (0.29) | $ (0.01) | $ (0.01) | $ 0.03 | $ (0.35) | $ (0.28) | $ 0.32 |
Income (loss) per share available to common stockholders-diluted | $ (0.17) | $ (0.08) | $ (0.01) | $ (0.09) | $ (0.29) | $ (0.01) | $ (0.01) | $ 0.03 | $ (0.35) | $ (0.28) | $ 0.31 |
Potentially dilutive shares that are considered anti-dilutive | 2,499,139 | 3,375,591 | 1,164,047 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Leasehold improvements | $ 169,300 | $ 174,602 |
Machinery and equipment | 48,606 | 49,427 |
Furniture and fixtures | 33,177 | 33,893 |
Computer equipment and software | 35,159 | 29,832 |
Construction in progress | 1,938 | 3,831 |
Property and equipment, gross | 288,180 | 291,585 |
Less: Accumulated depreciation | (200,398) | (187,726) |
Property and equipment, net | $ 87,782 | $ 103,859 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 |
Accrued Liabilities And Other Liabilities [Abstract] | |||
Accrued labor and related expenses | $ 10,324 | $ 7,352 | |
Deferred gift card revenue | 1,821 | 2,305 | |
Accrued occupancy expenses | 2,309 | 2,387 | |
Deferred rent—current | 1,250 | 1,011 | |
Accrued corporate and shop expenses | 1,446 | 1,882 | |
Accrued utilities | 1,304 | 1,311 | |
Accrued sales and use tax | 3,001 | 2,760 | |
Accrued construction | 147 | 891 | |
Accrued contract termination costs | 392 | 27 | $ 28 |
Accrued legal and professional fees | 128 | 177 | |
Accrued other | 2,907 | 3,170 | |
Total | $ 25,029 | $ 23,273 |
Accrued Expenses - Summary of_2
Accrued Expenses - Summary of Accrued Contract Termination Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2018 | Dec. 31, 2017 | |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued contract termination costs—beginning balance | $ 27 | $ 28 |
Contract termination costs incurred | 1,461 | 578 |
Contract termination costs settled and paid | (1,096) | (579) |
Accrued contract termination costs—ending balance | $ 392 | $ 27 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ (11,381) | $ (2,513) | $ 12,411 |
Foreign operations | 637 | 466 | 468 |
Income (loss) before income taxes | $ (10,744) | $ (2,047) | $ 12,879 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ (339) | $ (3,728) | $ 4,652 |
Federal, Deferred | (1,644) | 8,792 | (1,386) |
Federal, Total | (1,983) | 5,064 | 3,266 |
State and Local, Current | 73 | 150 | 1,426 |
State and Local, Deferred | (305) | (584) | (273) |
State and Local, Total | (232) | (434) | 1,153 |
Foreign, Current | 20 | 13 | 24 |
Foreign, Total | 20 | 13 | 24 |
Income tax expense (benefit) | $ (2,195) | $ 4,643 | $ 4,443 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Differences Between Federal Statutory and Effective Income (Loss) Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax | 21.00% | 35.00% | 35.00% |
Computed “expected” tax expense (benefit) | $ (2,256) | $ (716) | $ 4,508 |
Minority interest | (87) | (105) | (89) |
Permanent differences | 220 | 96 | 131 |
State and local income taxes, net of federal income tax effect | (436) | 5 | 673 |
FICA and other tax credits | (522) | (502) | (556) |
Equity compensation | 1,089 | 2,112 | |
Adjustments | (252) | (93) | (300) |
Rate change | 49 | 3,846 | 76 |
Income tax expense (benefit) | $ (2,195) | $ 4,643 | $ 4,443 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Income Tax [Line Items] | |||
U.S. federal corporate tax rate | 21.00% | 35.00% | 35.00% |
Change in initial estimates recorded related to enactment of Tax Act | $ 0 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | $ 0 | |
Valuation Allowance Tax Credit Carryforward [Member] | |||
Income Tax [Line Items] | |||
Change in valuation allowance | $ 0 | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 30, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 576 | $ 11 |
Accrued liabilities | 1,449 | 842 |
Deferred revenue | 543 | 120 |
Stock-based compensation | 2,685 | 4,495 |
Property and equipment | 5,037 | 3,258 |
Deferred rent | 4,373 | 4,229 |
Tax credits and charitable contribution carryforwards | 981 | 273 |
Other | 127 | |
Total deferred tax assets | 15,644 | 13,355 |
Net deferred tax assets | 15,644 | 13,355 |
Deferred tax liabilities: | ||
Prepaids | (466) | (452) |
Intangible assets | (1,075) | (977) |
Smallwares | (566) | (574) |
Other | (152) | (150) |
Total deferred tax liabilities | (2,259) | (2,153) |
Net deferred tax assets | $ 13,385 | $ 11,202 |
Debt and Credit Facilities - Ad
Debt and Credit Facilities - Additional Information (Detail) - J P Morgan Chase Bank N A [Member] - USD ($) | Dec. 09, 2015 | Dec. 30, 2018 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of commitment fees based on credit facility | 0.125% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of commitment fees based on credit facility | 0.20% | |
Senior Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility agreement term period | 5 years | |
Revolving credit facility agreement expiration date | Nov. 30, 2020 | |
Credit facility, Maximum borrowing capacity | $ 50,000,000 | |
Credit facility, possible future maximum borrowing capacity | $ 75,000,000 | |
Credit facility outstanding amount | $ 0 | |
Senior Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% | |
Senior Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.75% | |
Senior Credit Facility [Member] | Prime Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.00% | |
Senior Credit Facility [Member] | Prime Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.50% |
Capital Stock and Warrants - Ad
Capital Stock and Warrants - Additional Information (Detail) - USD ($) | Jun. 30, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | Jun. 14, 2018 | May 08, 2018 | Sep. 08, 2016 |
Capital Stock And Warrants [Line Items] | |||||||
Capital stock, authorized | 210,000,000 | 210,000,000 | |||||
Common stock, authorized | 200,000,000 | 200,000,000 | |||||
Preferred stock, authorized | 10,000,000 | 10,000,000 | |||||
Common stock, issued | 32,943,740 | 31,831,196 | |||||
Common stock, outstanding | 24,142,586 | 24,999,688 | |||||
Stock repurchase program, authorized amount | $ 65,000,000 | ||||||
Common stock repurchased value | $ 22,916,000 | $ 12,941,000 | $ 22,321,000 | ||||
Remaining dollar value of authorization under the share repurchase program | $ 42,100,000 | ||||||
Common stock, par value | $ 0.01 | $ 0.01 | |||||
Company warrants outstanding | 0 | 0 | |||||
Proceeds from exercise of stock warrants | $ 2,000,000 | $ 1,972,000 | |||||
Amended and Restated 2013 Long-Term Incentive Plan [Member] | |||||||
Capital Stock And Warrants [Line Items] | |||||||
Additional shares of common stock reserved for issuance | 1,000,000 | ||||||
Common stock, par value | $ 0.01 | ||||||
Total number of shares registered | 3,500,000 | ||||||
Previous Share Repurchase Program [Member] | |||||||
Capital Stock And Warrants [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 30,000,000 | ||||||
Common stock shares repurchased | 5,000 | ||||||
Common stock repurchased value | $ 100,000 | ||||||
New Stock Repurchase Program [Member] | |||||||
Capital Stock And Warrants [Line Items] | |||||||
Common stock shares repurchased | 1,948,245 | ||||||
Common stock repurchased value | $ 22,900,000 |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 30, 2018USD ($)Option | Dec. 31, 2017USD ($) | Dec. 25, 2016USD ($) | |
Operating Leased Assets [Line Items] | |||
Initial operating lease period | 10 years | ||
Number of renewal options under operating leases | Option | 2 | ||
Operating lease rent increment term | 5 years | ||
Letters of credit in lieu of rent deposits | $ | $ 0.2 | $ 0.2 | $ 0.7 |
Letters of credit annual fee percentage | 1.50% | ||
Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease period for expiration or renewal | 2,019 | ||
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease period for expiration or renewal | 2,028 |
Operating Leases - Schedule of
Operating Leases - Schedule of Rental Expenses Under Operating Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Operating Leases Rent Expense [Abstract] | |||
Minimum rentals | $ 46,334 | $ 45,334 | $ 40,252 |
Contingent rentals | 1,295 | 1,408 | 1,755 |
Less: sublease rentals | 0 | (33) | (94) |
Total | $ 47,629 | $ 46,709 | $ 41,913 |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Future Minimum Rental Payments Under Operating Leases (Detail) $ in Thousands | Dec. 30, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 47,918 |
2,020 | 45,828 |
2,021 | 41,497 |
2,022 | 36,120 |
2,023 | 31,060 |
Thereafter | 138,928 |
Total minimum payments required | $ 341,351 |
Operating Leases - Schedule o_3
Operating Leases - Schedule of Future Minimum Rental Payments Under Operating Leases (Parenthetical) (Detail) $ in Millions | Dec. 30, 2018USD ($) |
Leases [Abstract] | |
Minimum sublease rentals due in future | $ 1.6 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Contributions made to profit sharing plan | $ 0.4 | $ 0.4 | $ 0.4 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018$ / sharesshares | May 31, 2018$ / sharesshares | Nov. 30, 2017$ / sharesshares | Aug. 31, 2017$ / sharesshares | May 31, 2017$ / sharesshares | May 31, 2016$ / sharesshares | Dec. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 25, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Recognized stock-based compensation expense | $ | $ 2,882 | $ 4,676 | $ 3,057 | |||||||
Unrecognized stock compensation expense | $ | $ 3,000 | $ 3,000 | ||||||||
Unrecognized stock compensation expense, recognition period | 2,022 | |||||||||
Restricted Stock Units (RSUs) [Member] | Non-Employee Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock units issued | 37,353 | 19,157 | 74,760 | 2,608 | 153,369 | 52,558 | ||||
Options vesting period | 3 years | |||||||||
Restricted stock units issued, grant-date fair value | $ / shares | $ 9.37 | $ 13.05 | $ 13.25 | $ 11.15 | $ 11.05 | $ 13.27 | ||||
Vesting description | The senior leadership team grants vest in one-third increments over a three-year period. | |||||||||
Restricted Stock Units (RSUs) [Member] | First Anniversary [Member] | Non-Employee Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||||
Restricted Stock Units (RSUs) [Member] | Second Anniversary [Member] | Non-Employee Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||||
Restricted Stock Units (RSUs) One [Member] | Non-Employee Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock units issued | 6,848 | |||||||||
Restricted stock units issued, grant-date fair value | $ / shares | $ 11.50 | |||||||||
Restricted Stock Units (RSUs) One [Member] | First Anniversary [Member] | Non-Employee Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 50.00% | |||||||||
Restricted Stock Units (RSUs) One [Member] | Second Anniversary [Member] | Non-Employee Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 50.00% | |||||||||
Restricted Stock Units (RSUs) Two [Member] | Non-Employee Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock units issued | 78,125 | |||||||||
Restricted stock units issued, grant-date fair value | $ / shares | $ 12.80 | |||||||||
Restricted Stock Units (RSUs) Two [Member] | First Anniversary [Member] | Non-Employee Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 50.00% | |||||||||
Restricted Stock Units (RSUs) Two [Member] | Second Anniversary [Member] | Non-Employee Board Of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 50.00% | |||||||||
2013 Long Term Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 2,514,194 | 2,514,194 | ||||||||
Shares of common stock reserved for issuance | 1,699,387 | 1,699,387 | ||||||||
Restricted stock units granted against shares reserved for future issuance ratio | 2 | |||||||||
Exercise price of options outstanding, lower limit | $ / shares | $ 7 | |||||||||
Exercise price of options outstanding, higher limit | $ / shares | $ 20.53 | |||||||||
2013 Long Term Incentive Plan [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercisable period from the date of grant | 10 years | |||||||||
Options issued and outstanding, last expiration date | Dec. 31, 2028 | |||||||||
Options vesting period | 5 years | |||||||||
2013 Long Term Incentive Plan [Member] | Minimum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options vesting period | 4 years | |||||||||
2013 Long Term Incentive Plan [Member] | Common Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Issuance of common stock | 28,240 | |||||||||
2013 Long Term Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock units issued | 460,855 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity Under Plans and Agreement (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | Dec. 27, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Options outstanding shares, beginning balance | 3,309 | 4,013 | 4,368 | |
Options, granted | 203 | 464 | 369 | |
Options, exercised | (993) | (653) | (536) | |
Options, canceled | (369) | (515) | (188) | |
Options outstanding shares, ending balance | 2,150 | 3,309 | 4,013 | 4,368 |
Options outstanding shares, exercisable | 1,611 | |||
Options outstanding weighted average exercise price, beginning balance | $ 10.71 | $ 10.61 | $ 10.53 | |
Options, weighted average exercise price, granted | 11.27 | 12.09 | 13.65 | |
Options, weighted average exercise price, exercised | 8.30 | 9.94 | 10.77 | |
Options, weighted average exercise price, canceled | 13.63 | 12.18 | 14.40 | |
Options outstanding weighted average exercise price, ending balance | 11.49 | $ 10.71 | $ 10.61 | $ 10.53 |
Options outstanding weighted average exercise price, exercisable | $ 11.14 | |||
Options outstanding aggregate intrinsic value | $ 378 | $ 7,699 | $ 13,455 | $ 9,742 |
Options exercisable aggregate intrinsic value | $ 378 | |||
Option outstanding weighted average remaining term | 5 years 1 month 17 days | 4 years 10 months 24 days | 4 years 9 months 10 days | 5 years 1 month 6 days |
Options exercisable weighted average remaining term | 4 years 6 months 7 days |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Average Assumptions to Value Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Risk-free interest rate | 3.00% | 2.00% | 1.70% |
Expected life (years) | 6 years 3 months | 6 years 3 months | 7 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 35.00% | 36.00% | 49.40% |
Weighted average grant date fair value | $ 4.52 | $ 4.76 | $ 7.05 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 102,378 | $ 106,996 | $ 110,347 | $ 102,917 | $ 112,149 | $ 106,127 | $ 108,136 | $ 101,699 | $ 422,638 | $ 428,111 | $ 407,131 |
Income (loss) from operations | (5,370) | (2,697) | 95 | (2,630) | (2,776) | (574) | 164 | 1,263 | (10,602) | (1,923) | 13,013 |
Net income (loss) attributable to Potbelly Corporation | $ (4,363) | $ (1,961) | $ (360) | $ (2,194) | $ (7,261) | $ (240) | $ (138) | $ 683 | $ (8,878) | $ (6,956) | $ 8,212 |
Income (loss) per share available to common stockholders-basic | $ (0.17) | $ (0.08) | $ (0.01) | $ (0.09) | $ (0.29) | $ (0.01) | $ (0.01) | $ 0.03 | $ (0.35) | $ (0.28) | $ 0.32 |
Income (loss) per share available to common stockholders-diluted | $ (0.17) | $ (0.08) | $ (0.01) | $ (0.09) | $ (0.29) | $ (0.01) | $ (0.01) | $ 0.03 | $ (0.35) | $ (0.28) | $ 0.31 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) | 1 Months Ended |
Oct. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Purported collective and class action lawsuit filed date | October 2,017 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 30, 2018 | Dec. 31, 2017 | Dec. 25, 2016 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Amount of revenue recognized | $ 102,378,000 | $ 106,996,000 | $ 110,347,000 | $ 102,917,000 | $ 112,149,000 | $ 106,127,000 | $ 108,136,000 | $ 101,699,000 | $ 422,638,000 | $ 428,111,000 | $ 407,131,000 |
Aggregate value of remaining performance obligation on outstanding contracts | $ 3,815,000 | 3,815,000 | |||||||||
Revenue recognized related to prior periods | 0 | ||||||||||
January 1, 2018 Liability Ending Balance [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Amount of revenue recognized | 2,100,000 | ||||||||||
Point in Time Sales [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Amount of revenue recognized | 421,800,000 | ||||||||||
Over Time Sales [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Amount of revenue recognized | $ 800,000 |
Revenue - Summary of Current an
Revenue - Summary of Current and Noncurrent Contract Liabilities from Contracts with Customers (Detail) $ in Thousands | 12 Months Ended |
Dec. 30, 2018USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Beginning balance of current contract liability | $ (2,325) |
Ending balance of current contract liability | (2,184) |
Decrease in contract liability, current | (141) |
Beginning balance of noncurrent contract liability | (2,144) |
Ending balance of noncurrent contract liability | (1,631) |
Decrease in contract liability, noncurrent | $ (513) |
Revenue - Summary of Expected R
Revenue - Summary of Expected Revenue Recognition Related to Contract Liabilities (Detail1) $ in Thousands | Dec. 30, 2018USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 3,815 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 2,184 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 199 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 195 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 189 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 501 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligations | $ 547 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Revenue - Summary of Expected_2
Revenue - Summary of Expected Revenue Recognition Related to Contract Liabilities (Detail) $ in Thousands | Dec. 30, 2018USD ($) |
Revenue From Contract With Customer [Abstract] | |
Revenue, remaining performance obligations | $ 3,815 |