Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 28, 2014 | Jul. 02, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'NOODLES & Co | ' | ' |
Entity Central Index Key | '0001275158 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 29,574,101 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $389.30 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $968 | $581 |
Accounts receivable | 4,229 | 4,566 |
Inventories | 7,223 | 6,042 |
Prepaid expenses and other assets | 5,310 | 3,970 |
Income tax receivable | 603 | 995 |
Total current assets | 18,333 | 16,154 |
Property and equipment, net | 167,614 | 136,287 |
Deferred tax assets, net | 0 | 2,791 |
Other assets, net | 1,855 | 1,763 |
Total long-term assets | 169,469 | 140,841 |
Total assets | 187,802 | 156,995 |
Current liabilities: | ' | ' |
Accounts payable | 8,167 | 9,393 |
Accrued payroll and benefits | 7,121 | 5,345 |
Accrued expenses and other current liabilities | 7,747 | 7,249 |
Current deferred tax liabilities | 1,130 | 1,023 |
Current portion of long-term debt | 0 | 750 |
Total current liabilities | 24,165 | 23,760 |
Long-term debt | 6,312 | 93,731 |
Deferred rent | 28,846 | 23,013 |
Deferred tax liabilities, net | 1,146 | 0 |
Other long-term liabilities | 2,860 | 2,483 |
Total liabilities | 63,329 | 142,987 |
Temporary equity | ' | ' |
Common stock subject to put options—0 and 296,828 shares as of December 31, 2013 and January 1, 2013, respectively | 0 | 3,601 |
Stockholders' equity: | ' | ' |
Preferred stock—$0.01 par value, authorized 1,000,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock—$0.01 par value, authorized 180,000,000 and 34,043,001 shares as of December 31, 2013 and January 1, 2013, respectively; 29,544,557 and 23,238,984 issued and outstanding as of December 31, 2013 and January 1, 2013, respectively | 295 | 232 |
Treasury stock, at cost, 65,478 and 0 shares as of December 31, 2013 and January 1, 2013, respectively | -2,777 | 0 |
Additional paid-in capital | 116,647 | 7,585 |
Accumulated other comprehensive loss, net of tax | 0 | -24 |
Retained earnings | 10,308 | 2,614 |
Total stockholders' equity | 124,473 | 10,407 |
Total liabilities and stockholders' equity | $187,802 | $156,995 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
Common stock subject to put options | 0 | 296,828 |
Preferred stock, par value (USD per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (USD per share) | $0.01 | $0.01 |
Common stock, shares authorized | 180,000,000 | 34,043,001 |
Common stock, shares, issued | 29,544,557 | 23,238,984 |
Common stock, shares, outstanding | 29,544,557 | 23,238,984 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Revenue: | ' | ' | ' |
Restaurant revenue | $347,140 | $297,264 | $253,467 |
Franchise royalties and fees | 3,784 | 3,146 | 2,599 |
Total revenue | 350,924 | 300,410 | 256,066 |
Restaurant operating costs (exclusive of depreciation and amortization, shown separately below): | ' | ' | ' |
Cost of sales | 91,892 | 78,997 | 66,419 |
Labor | 104,040 | 89,435 | 75,472 |
Occupancy | 35,173 | 29,323 | 25,208 |
Other restaurant operating costs | 44,078 | 36,380 | 32,031 |
General and administrative | 35,893 | 29,081 | 26,463 |
Depreciation and amortization | 20,623 | 16,719 | 14,501 |
Pre-opening | 3,809 | 3,145 | 2,327 |
Asset disposals, closure costs and restaurant impairments | 1,164 | 1,278 | 1,629 |
Total costs and expenses | 336,672 | 284,358 | 244,050 |
Income from operations | 14,252 | 16,052 | 12,016 |
Debt extinguishment expense | 624 | 2,646 | 275 |
Interest expense | 2,196 | 5,028 | 6,132 |
Income before income taxes | 11,432 | 8,378 | 5,609 |
Provision for income taxes | 4,767 | 3,215 | 1,780 |
Net income | $6,665 | $5,163 | $3,829 |
Earnings per share of Class A and Class B common stock, combined: | ' | ' | ' |
Basic (USD per share) | $0.25 | $0.22 | $0.16 |
Diluted (USD per share) | $0.24 | $0.22 | $0.16 |
Weighted average shares of Class A and Class B common stock outstanding, combined: | ' | ' | ' |
Basic (in shares) | 26,406,904 | 23,238,984 | 23,237,698 |
Diluted (in shares) | 27,688,629 | 23,265,542 | 23,237,698 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Net income | $6,665 | $5,163 | $3,829 |
Cash flow hedges: | ' | ' | ' |
Loss recognized in accumulated other comprehensive income | 0 | -186 | -209 |
Reclassification of loss to net income | 0 | 382 | 434 |
Unrealized income on cash flow hedges | 0 | 196 | 225 |
Provision for income tax on cash flow hedges | 0 | -168 | -3 |
Other comprehensive income, net of tax | 0 | 28 | 222 |
Comprehensive income | $6,665 | $5,191 | $4,051 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity Statement (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings (Accumulated Deficit) [Member] | ||
In Thousands, except Share data, unless otherwise specified | ||||||||
Temporary equity, beginning balance at Dec. 28, 2010 | $2,572 | ' | ' | ' | ' | ' | ||
Beginning balance at Dec. 28, 2010 | -494 | 232 | [1],[2] | 0 | 4,897 | -274 | -5,349 | |
Beginning balance, shares at Dec. 28, 2010 | ' | 23,237,169 | [2] | 0 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ||
Exercise of stock options | 16 | 0 | [2] | ' | 16 | ' | ' | |
Exercise of stock options, shares | [2] | ' | 1,815 | ' | ' | ' | ' | |
Tax benefit on exercise of stock options | 109 | ' | ' | 109 | ' | ' | ||
Stock-based compensation expenses | 1,402 | ' | ' | 1,402 | ' | ' | ||
2010 Merger-transaction expenses | -133 | ' | ' | -133 | ' | ' | ||
Unrealized income on cash flow hedges, net of tax | 222 | ' | ' | ' | 222 | ' | ||
Net income | 3,829 | ' | ' | ' | ' | 3,829 | ||
Temporary equity, ending balance at Jan. 03, 2012 | 2,572 | ' | ' | ' | ' | ' | ||
Ending balance at Jan. 03, 2012 | 4,951 | 232 | [1],[2] | 0 | 6,291 | -52 | -1,520 | |
Ending balance, shares at Jan. 03, 2012 | ' | 23,238,984 | [2] | 0 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ||
Tax benefit on exercise of stock options | 27 | ' | ' | 27 | ' | ' | ||
Stock-based compensation expenses | 1,315 | ' | ' | 1,315 | ' | ' | ||
2010 Merger-transaction expenses | -48 | ' | ' | -48 | ' | ' | ||
Temporary equity related to put options | -1,029 | ' | ' | ' | ' | -1,029 | ||
Unrealized income on cash flow hedges, net of tax | 28 | ' | ' | ' | 28 | ' | ||
Net income | 5,163 | ' | ' | ' | ' | 5,163 | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ||
Temporary equity related to put options | 1,029 | ' | ' | ' | ' | ' | ||
Temporary equity, ending balance at Jan. 01, 2013 | 3,601 | ' | ' | ' | ' | ' | ||
Ending balance at Jan. 01, 2013 | 10,407 | 232 | [1],[2] | 0 | 7,585 | -24 | 2,614 | |
Beginning balance, shares at Jan. 01, 2013 | ' | 23,238,984 | [2] | 0 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ||
Issuance of common stock in connection with IPO, net of transaction expenses | 100,069 | 62 | [2] | ' | 100,007 | ' | ' | |
Issuance of common stock, net of transaction expenses, shares | [2] | ' | 6,160,714 | ' | ' | ' | ' | |
Tax benefit on exercise of stock options | 201 | ' | ' | 201 | ' | ' | ||
Stock-based compensation expenses | 1,098 | ' | ' | 1,098 | ' | ' | ||
Stock-based compensation expense related to acceleration of vesting | 3,203 | ' | ' | 3,203 | ' | ' | ||
Elimination of temporary equity at IPO | 3,601 | ' | ' | 2,572 | ' | 1,029 | ||
Proceeds from exercise of stock options, warrants and employee stock purchase plan | 1,982 | 1 | [2] | ' | 1,981 | ' | ' | |
Proceeds from exercise of stock options, warrants and employee stock purchase plan, shares | [2] | ' | 144,907 | ' | ' | ' | ' | |
Treasury shares acquired | -2,777 | ' | -2,777 | ' | ' | ' | ||
Treasury shares acquired, shares | ' | ' | 65,478 | ' | ' | ' | ||
Other | 24 | ' | ' | ' | 24 | ' | ||
Other, shares | ' | -48 | ' | ' | ' | ' | ||
Net income | 6,665 | ' | ' | ' | ' | 6,665 | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ||
Elimination of temporary equity at IPO | -3,601 | ' | ' | ' | ' | ' | ||
Temporary equity, ending balance at Dec. 31, 2013 | 0 | ' | ' | ' | ' | ' | ||
Ending balance at Dec. 31, 2013 | $124,473 | $295 | [1],[2] | ($2,777) | $116,647 | $0 | $10,308 | |
Ending balance, shares at Dec. 31, 2013 | ' | 29,544,557 | [2] | 65,478 | ' | ' | ' | |
[1] | Includes 6,292,640 shares of Class B common stock in all years presented and one share of Class C common stock | |||||||
[2] | Unless otherwise noted, activity relates to Class A common stock |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) | Dec. 31, 2013 |
Class B Common Stock [Member] | ' |
Shares outstanding | 6,292,640 |
Class C Common Stock [Member] | ' |
Shares outstanding | 1 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Operating activities | ' | ' | ' |
Net income | $6,665 | $5,163 | $3,829 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 20,623 | 16,719 | 14,501 |
Provision for deferred income taxes | 4,206 | 2,607 | 1,520 |
Excess tax benefit on stock-based compensation | -201 | -27 | -109 |
Asset disposals, closure costs and restaurant impairments | 1,164 | 1,278 | 1,629 |
Amortization of debt issuance costs and debt extinguishment expense | 710 | 3,227 | 1,013 |
Stock-based compensation | 4,230 | 1,234 | 1,327 |
Other noncash | -248 | -341 | 892 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable and income tax receivable | 538 | -1,124 | 166 |
Inventories | -1,181 | -1,447 | -680 |
Prepaid expenses and other assets | -1,518 | -644 | -63 |
Accounts payable | -230 | -155 | 80 |
Deferred rent | 5,833 | 4,369 | 2,290 |
Income taxes | 392 | 20 | 108 |
Accrued expenses and other liabilities | 2,651 | 1,190 | 1,419 |
Net cash provided by operating activities | 43,634 | 32,069 | 27,922 |
Investing activities | ' | ' | ' |
Purchases of property and equipment | -54,429 | -47,384 | -30,047 |
Net cash used in investing activities | -54,429 | -47,384 | -30,047 |
Financing activities | ' | ' | ' |
Proceeds from issuances of long-term debt | 136,357 | 105,697 | 111,771 |
Payments on long-term debt | -224,526 | -89,549 | -65,498 |
Payments on bridge financing | 0 | 0 | -45,977 |
Debt issuance costs | -124 | -754 | -4,226 |
Change in restricted cash related to equity recapitalization | 0 | 0 | 189,388 |
Change in shareholder escrow-equity recapitalization | 0 | 0 | -189,502 |
Acquisition of treasury stock | -2,777 | 0 | 0 |
Payment of payroll taxes associated with equity recapitalization | 0 | 0 | -6,602 |
Issuance of common stock, net of transaction expenses | 100,069 | -48 | -133 |
Proceeds from exercise of stock options, warrants and employee stock purchase plan | 1,982 | 0 | 16 |
Excess tax benefit on stock-based compensation | 201 | 27 | 109 |
Net cash provided by (used in) financing activities | 11,182 | 15,373 | -10,654 |
Net increase (decrease) in cash and cash equivalents | 387 | 58 | -12,779 |
Cash and cash equivalents | ' | ' | ' |
Beginning of year | 581 | 523 | 13,302 |
End of year | $968 | $581 | $523 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
Business and Summary and Basis of Presentation | ' | ||
Business and Summary of Significant Accounting Policies | |||
Business | |||
Noodles & Company (the "Company" or "Noodles & Company"), a Delaware corporation, develops and operates fast casual restaurants that serve globally inspired noodle and pasta dishes, soups, salads and sandwiches. As of December 31, 2013, there were 318 company-owned restaurants and 62 franchise restaurants in 29 states and the District of Columbia. The Company operates its business as one operating and reportable segment. | |||
On July 2, 2013, the Company completed an initial public offering ("IPO") of shares of Class A common stock at $18.00 per share. The Company issued 6,160,714 shares of Class A common stock, $0.01 par value, including 803,571 shares sold to the underwriters in the IPO pursuant to their over-allotment option. After underwriter discounts and commissions and estimated offering expenses, the Company received net proceeds from the offering of approximately $100.2 million. These proceeds were used to repay all but $0.2 million of outstanding debt under the Company's credit facility. | |||
On December 5, 2013, the Company completed a follow-on offering of 4,500,000 shares of Class A common stock at a price of $39.50 per share. All of the shares in the offering were offered by selling stockholders, except for 108,267 shares offered by the Company, the proceeds of which were used to repurchase the same number of shares from certain officers at the same net price per share. The Company did not receive any net proceeds from the offering. The selling stockholders paid all of the underwriting discounts and commissions associated with the sale of the shares; however, the Company incurred approximately $696,000 in costs and expenses related to this offering. | |||
In December 2010, Catterton Partners ("Catterton") and Argentia Private Investments Inc. ("Argentia") completed an equity recapitalization to purchase approximately 90% of the Company's equity interests. Catterton and Argentia sold shares in the follow-on offering that closed in December of 2013 and now own approximately 56% of the Company's common shares outstanding. See Note 2 "Equity Recapitalization." | |||
All share and per share data, including options, have been retroactively adjusted in the accompanying financial statements to reflect a reverse stock split. See Note 9 "Stockholders' Equity." | |||
Principles of Consolidation | |||
The accompanying consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All material intercompany balances and transactions are eliminated in consolidation. Certain reclassifications were made to prior year amounts to conform to the fiscal 2013 presentation. | |||
Fiscal Year | |||
The Company operates on a 52 or 53 week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2013 and 2012, which ended on December 31, 2013 and January 1, 2013, respectively, each contained 52 weeks. Fiscal year 2011, which ended on January 3, 2012, contained 53 weeks. | |||
Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||
Cash and Cash Equivalents | |||
The Company considers all highly liquid investment instruments with an initial maturity of three months or less when purchased to be cash equivalents. Amounts receivable from credit card processors are converted to cash shortly after the related sales transaction and are considered to be cash equivalents because they are both short-term and highly liquid in nature. Amounts receivable from credit card processors and considered cash equivalents as of December 31, 2013 and January 1, 2013 were $1.5 million and $2.5 million, respectively, and were offset on the consolidated balance sheets by payments processed by the Company, but not yet redeemed by the payee. Book overdrafts, which are outstanding checks in excess of cash and cash equivalents, are recorded with | |||
1. Business and Summary of Significant Accounting Policies (continued) | |||
accounts payable in the accompanying consolidated balance sheets and within operating activities in the accompanying statements of cash flows. | |||
Accounts Receivable | |||
Accounts receivable consist primarily of tenant improvement receivables and vendor rebates receivable, as well as amounts due from franchisees and other miscellaneous receivables. The Company believes all amounts to be collectible. Accordingly, no allowance for doubtful accounts has been recorded as of December 31, 2013 or January 1, 2013. | |||
Inventories | |||
Inventories consist of food, beverages, supplies, and smallwares, and are stated at the lower of cost (first-in, first-out method) or market. Smallwares inventory, which consist of the plates, silverware, and cooking utensils used in the restaurants, are frequently replaced and are considered current assets. Replacement costs of smallwares inventory are recorded as other restaurant operating costs and are expensed as incurred. As of December 31, 2013 and January 1, 2013, smallwares inventory of $4.5 million and $3.8 million was included on the consolidated balance sheets. | |||
Property and Equipment | |||
Property and equipment are stated at cost, less accumulated depreciation. Expenditures for major renewals and improvements are capitalized, while expenditures for minor replacements, maintenance and repairs are expensed as incurred. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and the related gain or loss is reflected in earnings. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life or the lease term, which generally includes option periods that are reasonably assured to be exercised. Depreciation and amortization expense on property and equipment, including assets under capital lease, was $20.6 million in 2013, $16.7 million in 2012 and $14.5 million in 2011. | |||
The estimated useful lives for property and equipment are: | |||
Property and Equipment | Estimated Useful Lives | ||
Leasehold improvements | Shorter of lease term or estimated useful life, not to exceed 20 years | ||
Furniture and fixtures | 3 to 15 years | ||
Equipment | 3 to 7 years | ||
The Company capitalizes internal payroll and payroll related costs directly related to the successful acquisition, development, design and construction of its new restaurants. Capitalized internal costs were $2.6 million, $2.3 million and $1.8 million in 2013, 2012 and 2011, respectively. Interest incurred on funds used to construct company-owned restaurants is capitalized and amortized over the estimated useful life of the related assets. Capitalized interest totaled $0.3 million in 2013, $0.3 million in 2012 and $0.3 million in 2011. | |||
Other Assets | |||
Other assets consist primarily of unamortized debt issuance costs, long term deposits, trademark rights and transferable liquor licenses. Direct costs incurred for the issuance of debt are capitalized and amortized using the straight-line method, which approximates the effective interest method, over the term of the debt. During 2013, 2012, and 2011, the Company incurred debt issuance costs related to amendments of its credit facility in 2013 and 2012 and its financing in 2011. See Note 4 "Borrowings." | |||
Net debt issuance costs of $0.5 million and $1.0 million are recorded in other assets, net of accumulated amortization of $0.2 million and $0.5 million, as of December 31, 2013 and January 1, 2013, respectively. In 2013 and 2012, the Company amended and restated its credit facility and in 2011 the Company entered into a new credit facility. The Company wrote off $0.6 million, $2.6 million and $0.3 million of debt issuance costs, net of accumulated amortization of $0.3 million, $0.8 million, and $0.9 million in 2013, 2012, and 2011, respectively. Trademark rights are considered indefinite lived intangibles, the carrying value of which is analyzed for impairment at least annually. Transferable liquor licenses are carried at the lower of fair value or cost. | |||
1. Business and Summary of Significant Accounting Policies (continued) | |||
Impairment of Long-Lived Assets | |||
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If the assets are determined to be impaired, the amount of impairment recognized is the amount by which the carrying amount of the assets exceeds their fair value, which is based on discounted future cash flows. Estimates of future cash flows are based on the Company's experience and knowledge of local operations. The Company recorded impairment charges of certain long-lived assets of $54,000, $0.1 million and $0.7 million in 2013, 2012 and 2011, respectively, which are included in asset disposals, closure costs and restaurant impairments in the consolidated statements of income. Fair value of the restaurants was determined using Level 3 inputs (as described in Note 6 "Fair Value Measurements") based on a discounted cash flows method at a market level through the estimated date of closure. | |||
Self-Insurance Programs | |||
The Company self-insures for health, workers' compensation, general liability and property damage. Predetermined loss limits have been arranged with insurance companies to limit the Company's per occurrence cash outlay. Estimated costs to settle reported claims and incurred but unreported claims for health and workers' compensation self-insured plans are recorded in accrued payroll and benefits and for general liability and property damage in accrued expenses and other liabilities. | |||
Concentrations of Credit Risk | |||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company's cash balances may exceed federally insured limits. Credit card transactions at the Company's restaurants are processed by one service provider. Concentration of credit risk related to accounts receivable are limited, as the Company's receivables are primarily amounts due from landlords for the reimbursement of tenant improvements and the Company generally has the right to offset rent due for tenant improvement receivables. | |||
Revenue Recognition | |||
Revenue consists of sales from restaurant operations and franchise royalties and fees. Revenue from the operation of company-owned restaurants are recognized when sales occur. The Company reports revenue net of sales and use taxes collected from customers and remitted to governmental taxing authorities. | |||
The Company sells gift cards which do not have an expiration date, and it does not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards when the gift card is redeemed by the customer or the Company determines the likelihood of the gift card being redeemed by the customer is remote ("gift card breakage"). The determination of the gift card breakage rate is based upon Company-specific historical redemption patterns. The Company has determined that approximately 6% of gift cards will not be redeemed, which is recognized ratably over the estimated redemption period of the gift card, approximately 18 months. The Company recognized gift card breakage of $0.2 million in 2013, $0.2 million in 2012 and $0.1 million 2011, in restaurant revenue. | |||
Royalties from franchise restaurants are based on a percentage of restaurant revenues and are recognized in the period the related franchised restaurants' sales occur. Development fees and franchise fees, portions of which are collected in advance, are nonrefundable and are recognized in income when all material services or conditions relating to the sale of the franchise have been substantially performed or satisfied by the Company. Both franchise fees and development fees will generally be recognized upon the opening of a franchise restaurant or upon termination of the agreement(s) between the Company and the franchisee. | |||
As of December 31, 2013, January 1, 2013, and January 3, 2012, there were 62, 51 and 45 franchise restaurants in operation. Franchisees opened 11, six and two restaurants in 2013, 2012 and 2011 respectively. | |||
Pre-Opening Costs | |||
Pre-opening costs, including rent, wages, benefits and travel for the training and opening teams, food, beverage, and other restaurant operating costs, are expensed as incurred prior to a restaurant opening for business. | |||
1. Business and Summary of Significant Accounting Policies (continued) | |||
Advertising and Marketing Costs | |||
Advertising and marketing costs are expensed as incurred and aggregated $3.9 million, $2.8 million and $2.3 million in 2013, 2012 and 2011, respectively. These costs are included in restaurant operating costs, general and administrative expenses and pre-opening costs based on the nature of the advertising and marketing costs incurred. | |||
Rent | |||
Rent expense for the Company's leases, which generally have escalating rentals over the term of the lease, is recorded on a straight-line basis over the lease term. The lease term includes renewal options which are reasonably assured of being exercised and begins when the Company has control and possession of the leased property, which is typically before rent payments are due under the lease. The difference between the rent expense and rent paid is recorded as deferred rent in the consolidated balance sheets. Rent expense for the period prior to the restaurant opening is reported in pre-opening costs in the consolidated statements of income. Tenant incentives used to fund leasehold improvements are recorded in deferred rent and amortized as a reduction of rent expense over the term of the lease. Certain leases contain rental provisions based on the sales of the underlying restaurants; the Company has determined that the amount of these provisions is immaterial. | |||
Provision for Income Taxes | |||
Provision (benefit) for income taxes is accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those deferred amounts are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company's policy is to recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in provision (benefit) for income taxes in the consolidated statement of income. | |||
Comprehensive Income | |||
Comprehensive income consists of the net income and other gains and losses affecting stockholders' equity that, under accounting principles generally accepted in the United States, are excluded from net income. Other comprehensive income, presented in the consolidated statements of comprehensive income for 2012 and 2011, consists of the unrealized income, net of tax, on the Company's cash flow hedges. See Note 5 "Derivative Instruments." | |||
Stock Compensation Expense | |||
The Company recognizes stock-based compensation using fair value measurement guidance for all share-based payments, including stock options and warrants. For option awards, expense is recognized ratably over the vesting period in an amount equal to the fair value of the stock-based awards on the date of grant determined using the Black-Scholes option pricing model. Warrants are valued using the fair value of the common stock as of the measurement date. See Note 10 "Stock-Based Compensation." | |||
Earnings Per Share | |||
Basic earnings per share ("EPS") are calculated by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated using income available to common shareholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options and restricted stock. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. See Note 11 "Earnings Per Share." | |||
Recent Accounting Pronouncements | |||
Effective January 2, 2013, the Company adopted Accounting Standards Update ("ASU") No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." The adoption of ASU 2013-02 concerns presentation and disclosure only and does not have an impact on the Company’s consolidated financial position or results of operations. |
Equity_Recapitalization
Equity Recapitalization | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Equity Recapitalization | ' |
Equity Recapitalization | |
On December 27, 2010, the Company completed an equity recapitalization through a merger with a newly organized Delaware corporation ("Merger Sub"), which was 100% indirectly owned by Catterton and the Public Sector Pension Investment Board ("PSPIB"), a Canadian Crown corporation, pursuant to the Agreement and Plan of Merger dated November 26, 2010 ("Merger Agreement"). The Company was the surviving entity of the recapitalization. The Company received $181.0 million from Catterton and Argentia and paid $7.0 million in transaction expenses. Catterton was issued 10,501,400 shares of Class A common stock in exchange for $91.0 million in cash and Argentia received 4,093,360 shares of Class A common stock, 6,292,640 shares of Class B common stock, and 1 share of Class C common stock in exchange for $90.0 million. The cash received from Catterton and Argentia was used to pay the cash portion of merger consideration to shareholders and holders of outstanding stock options. Class B and Class C common stock is nonvoting and the share of Class C common stock was redeemed in connection with the Company's IPO. | |
Total consideration paid for the outstanding shares was $211.7 million, of which $16.7 million was settled in rollover shares and the remainder was paid in cash in 2010 and 2011. Outstanding stock options were canceled in exchange for payments in cash or equity in the surviving entity. | |
Catterton and Argentia sold shares in the follow-on offering that closed in December of 2013 and now own approximately 56% of the Company's common shares outstanding. |
Supplemental_Financial_Informa
Supplemental Financial Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Financial Information [Abstract] | ' | ||||||||
Supplemental Financial Information | ' | ||||||||
Supplemental Financial Information | |||||||||
Accounts receivable consist of the following (in thousands): | |||||||||
2013 | 2012 | ||||||||
Tenant improvement receivables | $ | 2,532 | $ | 3,077 | |||||
Vendor rebate receivables | 748 | 693 | |||||||
Franchise and other receivables | 949 | 796 | |||||||
Total Accounts Receivable | $ | 4,229 | $ | 4,566 | |||||
Prepaid expenses and other assets consist of the following (in thousands): | |||||||||
2013 | 2012 | ||||||||
Prepaid occupancy related costs | $ | 3,318 | $ | 2,700 | |||||
Other prepaid expenses | 1,917 | 1,191 | |||||||
Other current assets | 75 | 79 | |||||||
$ | 5,310 | $ | 3,970 | ||||||
Property and equipment, net, consist of the following: | |||||||||
2013 | 2012 | ||||||||
Leasehold improvements | $ | 169,953 | $ | 139,907 | |||||
Furniture, fixtures and equipment | 92,695 | 77,202 | |||||||
Construction in progress | 11,209 | 7,878 | |||||||
273,857 | 224,987 | ||||||||
Accumulated depreciation and amortization | (106,243 | ) | (88,700 | ) | |||||
$ | 167,614 | $ | 136,287 | ||||||
Accrued payroll and benefits consist of the following: | |||||||||
2013 | 2012 | ||||||||
Accrued payroll and related liabilities | $ | 2,611 | $ | 2,537 | |||||
Accrued bonus | 3,383 | 1,981 | |||||||
Insurance liabilities | 1,127 | 827 | |||||||
$ | 7,121 | $ | 5,345 | ||||||
3. Supplemental Financial Information (continued) | |||||||||
Accrued expense and other liabilities consist of the following: | |||||||||
2013 | 2012 | ||||||||
Gift card liability | $ | 2,289 | $ | 2,182 | |||||
Occupancy related | 1,418 | 1,264 | |||||||
Utilities | 1,321 | 1,002 | |||||||
Other accrued expenses | 2,719 | 2,801 | |||||||
$ | 7,747 | $ | 7,249 | ||||||
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Borrowings | ' |
Borrowings | |
Credit Facility | |
The Company maintains a $45.0 million revolving line of credit under our credit facility. The revolving line of credit includes a swing line loan of $10.0 million used to fund everyday working capital requirements. On November 22, 2013, the Company amended and restated its credit facility to provide more favorable borrowing rates and fees, to extend borrowing capacity through July 2018 and to effect certain changes to the covenants. In connection with the IPO, the Company repaid the $75.0 million senior term loan under its credit facility and the majority of the revolving line of credit. There was $6.3 million of outstanding indebtedness, $2.8 million of outstanding letters of credit and $35.9 million available for borrowing under the revolving line of credit as of December 31, 2013. | |
Borrowings under our amended and restated credit facility bear interest, at our option, at either (i) LIBOR plus 1.00 to 1.75%, based on the lease-adjusted leverage ratio or (ii) the highest of the following rates plus zero to 0.75%: (a) the federal funds rate plus 0.50%; (b) the Bank of America prime rate or (c) the one month LIBOR plus 1.00%. The facility includes a commitment fee of 1.25 to 0.25%, based on the lease-adjusted leverage ratio, per year on any unused portion of the facility. We also maintain outstanding letters of credit to secure obligations under our workers’ compensation program and certain lease obligations. | |
Availability of borrowings under the revolving line of credit is conditioned on compliance with specified covenants, including a maximum lease-adjusted leverage ratio and a minimum consolidated fixed charge coverage ratio. We are subject to a number of other customary covenants, including limitations on additional borrowings, acquisitions, dividend payments and lease commitments. As of December 31, 2013, the Company was in compliance with all of our debt covenants. | |
The credit facility is secured by a pledge of stock of substantially all of the Company's subsidiaries and a lien on substantially all of the personal property assets of the Company and its subsidiaries. | |
Bridge Financing | |
In connection with the 2010 Equity Recapitalization the Company obtained bridge financing from Catterton and Argentia in the amount of $45.0 million. Such amount was repaid, along with $0.9 million of PIK interest at 12%, in conjunction with the February 2011 debt refinancing. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Instruments | ' | ||||||||||||
Derivative Instruments | |||||||||||||
The Company enters into derivative instruments for risk management purposes only, including derivatives designated as cash flow hedges. The Company uses interest rate-related derivative instruments to manage its exposure to fluctuations in interest rates. By using these instruments, the Company exposes itself, from time to time, to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. The Company minimizes the credit risk by entering into transactions with high-quality counterparties whose credit rating is evaluated on a quarterly basis. Management evaluated credit and nonperformance risks as of January 1, 2013 and January 3, 2012 and considered the risk of counterparty default to be improbable. There were no open derivative contracts as of December 31, 2013. Market risk, as it relates to the Company's interest-rate derivatives, is the adverse effect on the value of a financial instrument that results from changes in interest rates. The Company minimizes market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be taken. | |||||||||||||
5. Derivative Instruments (continued) | |||||||||||||
In February 2011, the Company's interest rate swap with a notional amount of $15.0 million matured. The swap had been designated as a cash flow hedge in October 2008 and gains of $0.2 million and $27,000 were recorded in earnings during 2012 and 2011 due to ineffectiveness as a result of the fair value of the swap not equaling zero at the date of hedge designation. A second interest rate swap on a notional amount of $14.0 million was terminated by the Company in March 2011. The fair value of the interest rate swap on the date of termination was $0.5 million and was settled in payments on a new interest rate swap with an effective date of April 4, 2011 and a notional amount of $17.5 million. The deferred loss accumulated in other comprehensive income as of the date of termination was amortized over the life of the terminated swap through November 2012, the original term of the terminated swap. | |||||||||||||
As required by the February 2011 credit facility and to mitigate exposure to fluctuations in interest rates, the Company entered into two variable-to-fixed interest rate swap agreements with embedded floors matching that of the hedged portion of its borrowings under the credit facility. The new interest rate swaps became effective on April 4, 2011 and matured on April 4, 2013. The swaps were designated as cash flow hedges at inception and were expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk during their respective terms. In August 2012, the Company ceased the application of hedge designation on both interest rate swaps as a result of the interest rate floor being removed from the hedged credit facility. Under the terms of the swap agreements, the Company was required to make payments based on a fixed rate of 1.59% calculated on a notional amount of $20.0 million and 3.06% calculated on a notional amount of $17.5 million. The fair value of the $20.0 million swap was zero at designation, while the fair value of the $17.5 million swap was a liability of $0.5 million at designation, which is reflective of the fair value of the previously terminated swap. In exchange, the Company received interest on $20.0 million of notional amount at a variable rate based on the greater of 1.25% or one-month LIBOR and will receive interest on a notional amount of $17.5 million at a variable rate based on the greater of 1.25% or one-month LIBOR. | |||||||||||||
The effective portion of changes in the fair value of designated cash flow hedges were recorded in accumulated other comprehensive loss and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Following termination of hedge designation in August 2012, changes in the fair value of the interest rate swaps were recorded directly to interest expense. During 2011 and 2012, these derivatives were used to hedge the variable cash flows associated with the Company's applicable credit facilities. The ineffective portion of the change in fair value of the derivatives was calculated using the hypothetical derivative method and recognized directly in earnings. During 2012, the Company recorded $174,000 of hedge ineffectiveness in earnings attributable to the fair value at inception on the $17.5 million notional interest rate swap. | |||||||||||||
The following table summarizes the fair value and presentation of the interest rate swaps as hedging instruments in the accompanying consolidated balance sheets (in thousands): | |||||||||||||
2013 Fair Value | 2012 Fair Value | ||||||||||||
Deferred revenue and other noncurrent liabilities | $ | — | $ | 98 | |||||||||
The following table summarizes the effect of the interest rate swap on the consolidated statements of income for the fiscal years 2013, 2012 and 2011 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Loss on swap in accumulated other comprehensive loss (pretax) | $ | — | $ | 186 | $ | 209 | |||||||
Realized loss (pretax) recognized in interest expense | — | 382 | 434 | ||||||||||
The interest rate swaps are measured at fair value on a recurring basis. As of December 31, 2013 all swaps had been terminated and as of January 1, 2013, the fair market value of the interest rate swaps is recorded in other noncurrent liabilities. As a result of this activity, accumulated other comprehensive loss decreased by $196,000, or $28,000 net of tax, for the fiscal year ended January 1, 2013. Additionally, the Company reclassified to earnings $202,000 of accumulated other comprehensive loss related to the interest rate swap terminated and embedded in a new instrument in April 2011. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Fair Value Measurements | ' | ||||||||
Fair Value Measurements | |||||||||
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 instruments. The carrying amounts of borrowings approximate fair value as the line of credit and term borrowings vary with market interest rates and negotiated terms and conditions are consistent with current market rates. Asset impairment charges are recorded at fair value on a nonrecurring basis. | |||||||||
Assets and Liabilities Measured at Fair Value | |||||||||
The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation. | |||||||||
Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||
Level 2—Quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. | |||||||||
Level 3—Prices or valuation techniques which require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). | |||||||||
The Company's cash flow hedges were, prior to termination and maturity, measured at fair value on a recurring basis, including an adjustment for the Company's credit risk. Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of January 1, 2013, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. | |||||||||
The following table presents the Company's liabilities measured at fair value on a recurring basis as of December 31, 2013 and January 1, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): | |||||||||
2013 | 2012 | ||||||||
Total derivatives—Level 1 | $ | — | $ | — | |||||
Total derivatives—Level 2 | — | 98 | |||||||
Total derivatives—Level 3 | — | — | |||||||
The Company's temporary equity was measured at fair value on a recurring basis until its elimination in 2013. The Company has determined that the majority of the inputs used to value its stock, which directly impacts the valuation of temporary equity, fall within Level 3 of the fair value hierarchy. See Note 10 "Stock Based Compensation," for further discussion of the significant inputs into the share price valuation. | |||||||||
Fair Value of Derivatives | |||||||||
All derivatives are recognized on the balance sheet at fair value as either assets or liabilities. The fair value of the Company's derivative financial instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The Company reports its derivative assets or liabilities in other assets, other liabilities, other current assets or accrued expenses as applicable. The accounting for the change in the fair value of a derivative financial instrument depends on its intended use and the resulting hedge designation, if any. | |||||||||
6. Fair Value Measurements (continued) | |||||||||
Fair Value of Temporary Equity | |||||||||
The following table represents the temporary equity measured at fair value on a recurring basis as of December 31, 2013 and January 1, 2013 and the level in the fair value hierarchy within which the measurements fall (in thousands): | |||||||||
2013 | 2012 | ||||||||
Level 1 | $ | — | $ | — | |||||
Level 2 | — | — | |||||||
Level 3 | — | 3,601 | |||||||
Closed_Restaurant_Reserve
Closed Restaurant Reserve | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Closed Restaurant Reserve | ' | ||||||||
Closed Restaurant Reserve | |||||||||
The Company provides for closed property operating lease liabilities using a discount rate to calculate the present value of the remaining non-cancelable lease payments after the closing date, net of estimated subtenant income. Following is a summary of the changes in the liability for closed properties as of December 31, 2013 and January 1, 2013 (in thousands). | |||||||||
2013 | 2012 | ||||||||
Closed restaurant reserves, beginning of period | $ | 788 | $ | 515 | |||||
Additions—store closing costs recognized, accretion | 80 | 483 | |||||||
Decreases—payments | (285 | ) | (210 | ) | |||||
Closed restaurant reserves, end of period | $ | 583 | $ | 788 | |||||
The current portion of the liability, $0.2 million and $0.3 million as of December 31, 2013 and January 1, 2013, respectively, is recorded in accrued expenses and other liabilities, and the long-term portion is reported in other noncurrent liabilities in the Company's consolidated balance sheets. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The components of the provision for income taxes are as follows for 2013, 2012 and 2011 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax provision: | |||||||||||||
Federal | $ | — | $ | 49 | $ | — | |||||||
State | 561 | 559 | 260 | ||||||||||
561 | 608 | 260 | |||||||||||
Deferred tax provision: | |||||||||||||
Federal | 3,923 | 2,591 | 1,945 | ||||||||||
State | 283 | 16 | (425 | ) | |||||||||
4,206 | 2,607 | 1,520 | |||||||||||
Total provision for income taxes | $ | 4,767 | $ | 3,215 | $ | 1,780 | |||||||
8. Income Taxes (continued) | |||||||||||||
The reconciliation of income tax provision that would result from applying the federal statutory rate to pre-tax income as shown in the accompanying consolidated statements of income is as follows for 2013, 2012 and 2011 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income expense at federal rate | $ | 3,887 | $ | 2,848 | $ | 1,907 | |||||||
State income tax, net of related federal income tax benefit | 653 | 420 | 257 | ||||||||||
Permanent items—primarily follow-on transaction costs | 374 | 83 | (10 | ) | |||||||||
Foreign rate differential | 26 | 106 | — | ||||||||||
Change in blended state rate | — | — | (25 | ) | |||||||||
Other items, net | (173 | ) | (242 | ) | (349 | ) | |||||||
Provision for income taxes | $ | 4,767 | $ | 3,215 | $ | 1,780 | |||||||
Effective income tax rate | 41.7 | % | 38.4 | % | 31.7 | % | |||||||
Pre-tax net income in 2013 totaled $11.4 million and included a foreign loss of $0.1 million in 2013. | |||||||||||||
In 2013, 2012, and 2011 the Company recognized tax benefits on option exercises at fair value in excess of those utilized to record stock-based compensation for book purposes, totaling $201,000, $27,000, and $109,000, respectively, as a credit to additional paid-in capital. | |||||||||||||
In 2013 and 2012, other items represents changes made between the provision for income taxes and the filed tax return and the impact of the prior year interest rate swap designation to interest expense. Other items in 2011 represents the reconciliation of the beginning deferred tax asset for state asset depreciation. | |||||||||||||
Deferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Noncurrent deferred tax assets (liabilities): | |||||||||||||
Loss carry forwards | $ | 2,745 | $ | 2,445 | |||||||||
Deferred rent and franchise revenue | 11,850 | 9,622 | |||||||||||
Property, equipment and intangible assets | (19,342 | ) | (11,061 | ) | |||||||||
Stock-based compensation | 2,442 | 994 | |||||||||||
Alternative minimum tax credits | 208 | 256 | |||||||||||
Interest rate swap | — | 38 | |||||||||||
Other | 951 | 497 | |||||||||||
Total noncurrent net deferred tax assets (liabilities) | (1,146 | ) | 2,791 | ||||||||||
Current deferred tax assets (liabilities): | |||||||||||||
Inventory smallwares | (1,737 | ) | (1,459 | ) | |||||||||
Other | 607 | 436 | |||||||||||
Total current deferred tax liabilities | (1,130 | ) | (1,023 | ) | |||||||||
Net deferred tax assets (liability) | $ | (2,276 | ) | $ | 1,768 | ||||||||
At December 31, 2013 and January 1, 2013, net operating loss carryforwards for federal income tax purposes of approximately $22.7 million and $15.6 million, respectively, were available to offset future taxable income through the year 2033 and 2032, respectively. The net operating loss carry forwards are primarily composed of excess tax deductions for equity compensation. Utilization of the net operating losses is subject to an annual limitation resulting from a change in control in 2007 and a change of control in 2010, pursuant to the change in ownership provisions of Section 382 of the Internal Revenue Code and similar provisions of state law. As a result of certain realization requirements of ASC 718, the deferred tax assets shown above include only realized tax deductions related to equity compensation equal to the compensation recognized for financial reporting during the years ended | |||||||||||||
8. Income Taxes (continued) | |||||||||||||
December 31, 2013 and January 1, 2013. Equity will be increased by up to $5.1 million if and when the net operating loss is ultimately realized. | |||||||||||||
Uncertain tax positions are recognized if it is more likely than not that the Company will be able to sustain the tax position taken, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon resolution of the benefit. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. There were no uncertain tax positions for the years ended December 31, 2013 or January 1, 2013. The only periods subject to examination for the Company's federal and state returns are 2009 through 2012. |
Stockholders_Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Stockholder's Equity | ' |
Stockholders' Equity | |
The Company has 181,000,000 shares of stock authorized, consisting of 150,000,000 shares of Class A common stock, par value $0.01 per share; 30,000,000 shares of Class B common stock, par value $0.01 and 1,000,000 shares of preferred stock, par value $0.01 per share. Preferred stock rights will be determined by the Company's Board of Directors in the event that preferred shares are issued. The following summarizes the rights of common stock: | |
Reverse Stock Split | |
On June 25, 2013, the Company effected a 1-for-0.577 reverse stock split of our Class A common stock and Class B common stock.Concurrent with the reverse stock split, the Company adjusted the number of shares subject to and the exercise price of outstanding stock option awards under the Plan such that the holders of the options are in the same economic position both before and after the reverse stock split. | |
Voting—Shares of Class A common stock and Class B common stock are entitled to one vote per share in all voting matters, with the exception that Class B common stock does not vote on the election or removal of directors. Class C common stock is entitled to vote only on amendments to the certificate of incorporation that would adversely affect the rights and preferences of the Class C common stock and reclassification or subdivision matters related to the Class C common stock. | |
Conversion—Each share of Class A common stock held by one of the Equity Sponsors is convertible, at the option of the holder, into one share of Class B common stock. Each share of Class B common stock is convertible, at the option of the holder, into one share of Class A common stock. | |
Dividends—A Class C dividend agreement was entered in connection with the Merger Agreement between one of the Equity Sponsors and the Company, which provides that the new investor will receive, in the form of a dividend, an amount equal to the compensation payable to the other new investor under a Management Services Agreement. In connection with the IPO, the management services agreement expired and one share of Class C common stock was redeemed. See additional information in Note 16 "Related-Party Transactions." Class A common stock and Class B common stock share equally if a dividend is declared or paid to either class, but do not have rights to any special dividend. | |
Liquidation, Dissolution or Winding Up—Class A common stock and Class B common stock share equally in distributions in liquidation, dissolution, or winding up of the corporation. | |
Registration Rights—After December 27, 2011, the Equity Sponsors have the right to demand registration of 10% or more of the shares of the Company's common stock held by them. Other shareholders have piggyback registration rights, but are not required to exercise these rights. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company's Stock Incentive Plan, as amended and restated in May of 2013, authorizes the grant of nonqualified stock options, incentive stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs") and incentive bonuses to employees, officers, nonemployee directors and other service providers. The number of shares of common stock available for issuance pursuant to awards granted under the Stock Incentive Plan is 3,168,705 shares. The Plan is administered by the Compensation Committee of the board or another committee designated by the board, or in the absence of any such committee, the board itself (the "administrator"). Stock options are granted at price determined by the administrator at an exercise price that is not less than the fair market value of the underlying stock on the date of option is grant. The administrator may also grant SARs and RSUs with terms determined by the administrator in accordance with the Plan. The fair market value of shares prior to the IPO was determined by the compensation committee of the Board of Directors, or the Board of Directors using historical or current transactions, comparable | ||||||||||||||
10. Stock-Based Compensation (continued) | ||||||||||||||
public company valuations, historical transactions, third-party valuations and other factors. Stock options generally have a 10-year term and vest equally over 4 years from the date of grant. | ||||||||||||||
Stock-based compensation expense is generally recognized on a straight-line basis over the service period of the options. In 2013, 2012 and 2011, non-cash stock-based compensation expense of $4.3 million, $1.2 million and $1.3 million, respectively, is included in general and administrative expense. Stock-based compensation of $71,000, $81,000 and $75,000 is included in capitalized internal costs in 2013, 2012 and 2011, respectively. Of the total stock-based compensation recognized in 2013, $2.0 million related to accelerated vesting of outstanding stock options at the IPO and $1.2 million related to stock options granted at the IPO to 2 executive officers of which 50% were vested at the time of grant. Stock-based compensation expense also includes $65,000 related to the Employee Stock Purchase Plan, see Note 12 "Employee Benefit Plans." | ||||||||||||||
At December 31, 2013, options available for future share grants totaled 3,321,785. The intrinsic value associated with options exercised was $5.1 million and $16,000 for the fiscal years ended December 31, 2013 and January 3, 2012, respectively. There were no options exercised in 2012. | ||||||||||||||
The estimated fair value of each option granted is calculated using the Black-Scholes option-pricing model. Expected volatilities are based on the historical Company volatility, as well as volatilities from publicly traded companies operating in the Company's industry. The Company uses historical data to estimate expected employee forfeiture of stock options. The expected life of options granted is management's best estimate using recent and expected transactions. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | ||||||||||||||
The weighted-average assumptions used in the model were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Risk-free interest | 1.1 | % | 0.4 | % | 1.1 | % | ||||||||
Expected life (years) | 4.3 | 3.4 | 3.7 | |||||||||||
Expected dividend yield | — | — | — | |||||||||||
Volatility | 39.7 | % | 32.7 | % | 26.2 | % | ||||||||
Weighted-average Black-Scholes fair value per share at date of grant | $ | 6.04 | $ | 2.84 | $ | 1.89 | ||||||||
The tables below summarize the option activity under the Plan: | ||||||||||||||
Shares | Weighted- | |||||||||||||
Average | ||||||||||||||
Exercise Price | ||||||||||||||
Outstanding—December 28, 2010 | 2,420,861 | 8.67 | ||||||||||||
Granted | 283,307 | 8.67 | ||||||||||||
Forfeited | (81,330 | ) | 8.67 | |||||||||||
Exercised | (1,815 | ) | 8.67 | |||||||||||
Outstanding—January 3, 2012 | 2,621,023 | 8.67 | ||||||||||||
Granted | 516,473 | 11.27 | ||||||||||||
Forfeited | (164,329 | ) | 8.68 | |||||||||||
Exercised | — | — | ||||||||||||
Outstanding—January 1, 2013 | 2,973,167 | 9.12 | ||||||||||||
Granted | 555,273 | 18.06 | ||||||||||||
Forfeited | (55,389 | ) | 11.89 | |||||||||||
Exercised | (163,179 | ) | 8.72 | |||||||||||
Outstanding—December 31, 2013 | 3,309,872 | $ | 10.59 | |||||||||||
10. Stock-Based Compensation (continued) | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic Value(1) (in thousands) | ||||||||||||
Exercise Price | Remaining | |||||||||||||
Years of | ||||||||||||||
Contractual | ||||||||||||||
Life | ||||||||||||||
Outstanding as of December 31, 2013 | 3,309,872 | $ | 10.59 | 7.65 | $ | 83,842 | ||||||||
Vested and expected to vest | 3,291,058 | 10.56 | 7.63 | 83,475 | ||||||||||
Exercisable as of December 31, 2013 | 2,679,130 | 9.45 | 7.27 | 70,925 | ||||||||||
_____________ | ||||||||||||||
-1 | Aggregate intrinsic value represents the amount by which fair value of the Company's stock exceeds the exercise price of the option as of December 31, 2013. | |||||||||||||
As of December 31, 2013, there was $2.7 million of unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plan, which is expected to be recognized over 3.11 years. | ||||||||||||||
On March 10, 2011, the Company issued warrants to a consultant to purchase 86,550 shares of Class B common stock at $8.67 per share, which are classified as equity awards. The warrants vest based on specified performance criteria and are considered stock-based compensation to nonemployees. Stock-based compensation expense related to the awards is recognized when the performance criteria are met, using the estimated fair value at the measurement date. During 2013 and 2012, the Company did not recognize stock-based compensation expense as no performance criteria were met, and in 2011, the Company recognized $0.1 million of stock-based compensation expense related to the warrants as performance criteria were met. During 2013, 28,850 warrants were exercised by the consultant. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
Earnings Per Share | |||||||||||||
EPS is calculated by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share ("diluted EPS") is calculated using income available to common shareholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options and restricted common stock. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. | |||||||||||||
The following table sets forth the computations of basic and dilutive earnings per share: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income (in thousands) | $ | 6,665 | $ | 5,163 | $ | 3,829 | |||||||
Shares: | |||||||||||||
Basic weighted average shares outstanding | 26,406,904 | 23,238,984 | 23,237,698 | ||||||||||
Dilutive stock options and warrants | 1,281,726 | 26,558 | — | ||||||||||
Diluted weighted average number of shares outstanding | 27,688,629 | 23,265,542 | 23,237,698 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.25 | $ | 0.22 | $ | 0.16 | |||||||
Diluted | $ | 0.24 | $ | 0.22 | $ | 0.16 | |||||||
The Company excluded 17,000, 590,617 and 2,621,023 outstanding options from the diluted earnings per share calculation for 2013, 2012 and 2011, respectively, as the options were out of the money and to include them would have been antidilutive. All outstanding warrants were dilutive in the calculation of diluted earnings per share. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
Employee Benefit Plans | |
Defined Contribution Plan | |
In October 2003, the Company adopted a defined contribution plan, The Noodles & Company 401(k) Plan (the "401(k) Plan"). Company employees with six months of service, aged 21 or older, are eligible to participate in the 401(k) Plan. Under the provisions | |
12. Employee Benefit Plans (continued) | |
of the plan, the Company may, at its discretion, make contributions to the 401(k) Plan. Participants are 100% vested in their own contributions. The Company made no contributions during 2013, 2012 and 2011. | |
Deferred Compensation Plan | |
The Company's deferred compensation plan, under which compensation deferrals began in 2013, is a non-qualified deferred compensation plan which allows highly compensated employees to defer a portion of their base salary and variable compensation each plan year. To offset its obligation, the Company purchases Company-owned whole-life insurance contracts on certain team members. As of December 31, 2013, $581,000 and $599,000 was included in other assets, net and other long term liabilities, which represent the carrying value of the liability for deferred compensation and the cash surrender value of the associated life insurance policy, respectively. | |
Employee Stock Purchase Plan | |
In 2013, the Company adopted an Employee Stock Purchase Plan under which eligible team members may voluntarily contribute up to 15% of their salary, subject to limitations, to purchase common stock at a price equal to 85% of the fair market value of a share of the Company's common stock on the first day of each offering period or 85% of the fair market value of a share of the Company's common stock on the last day of each offering period, whichever amount is less. In general, all of the Company's officers and team members who have been employed by the Company for at thirty days prior to the offering period and who are regularly scheduled to work more than twenty hours per week and for more than five months in any calendar year, are eligible to participate in this plan which operates in-line with the Company's fiscal quarters. A total of 750,000 shares of common stock are available for issuance under this plan. The Company has issued a total of 18,356 shares under this plan, which were all issued in 2013. A total of 731,644 shares remain available for future issuance. For 2013, in accordance with the guidance for accounting for stock compensation, the Company estimated the fair value of the stock purchase plan using the Black-Scholes multiple-option pricing model. The average assumptions used in the model included a zero percent risk-free interest rate; three month expected life; expected volatility of 14.3%; and a zero percent dividend yield. The weighted average fair value per share at grant date was $3.55. In 2013 the Company recognized $65,000 of compensation expense related to this plan. |
Leases_Notes
Leases (Notes) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Leases | ' | |||
Leases | ||||
The Company leases restaurant facilities, office space and certain equipment under operating leases that expire on various dates through December 2029. Lease terms for traditional shopping centers generally include a base term of 10 years, with options to extend these leases for additional periods of 5 to 15 years. Typically, the lease includes rent escalations, which are expensed on a straight-line basis over the lease term. The difference between rent expense and cash paid for rent is recognized as deferred rent. Rent expense for 2013, 2012 and 2011 was approximately $29.5 million, $24.6 million and $20.9 million, respectively. | ||||
Future minimum lease payments required under existing leases as of December 31, 2013 are as follows (in thousands): | ||||
2014 | $ | 33,912 | ||
2015 | 34,351 | |||
2016 | 33,279 | |||
2017 | 30,689 | |||
2018 | 26,368 | |||
Thereafter | 89,330 | |||
$ | 247,929 | |||
Supplemental_Disclosures_to_Co
Supplemental Disclosures to Consolidated Statements of Cash Flows | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Supplemental Disclosures to Consolidated Statements of Cash Flows | ' | ||||||||||||
Supplemental Disclosures to Consolidated Statements of Cash Flows | |||||||||||||
The following table presents the supplemental disclosures to the consolidated statements of cash flows (in thousands) for fiscal years 2013, 2012 and 2011: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest paid (net of amounts capitalized) | $ | 2,506 | $ | 4,400 | $ | 5,177 | |||||||
Income taxes paid (net of refunds) | 137 | 509 | 43 | ||||||||||
Purchases of property and equipment accrued in accounts payable | 996 | 2,648 | 1,170 | ||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
In the normal course of business, the Company is subject to proceedings, lawsuits and claims. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of December 31, 2013. These matters could affect the operating results of any one financial reporting period when resolved in future periods. Management believes that an unfavorable outcome with respect to these matters is remote or a potential range of loss is not material to the Company's consolidated financial statements. Significant increases in the number of these claims, or one or more successful claims that result in greater liabilities than the Company currently anticipates, could materially and adversely affect the Company's business, financial condition, results of operations or cash flows. | |
The Company entered into employment agreements with two of its executives in connection with the IPO superseding the previous employment agreements with these executives. The agreements have an initial term of three years and automatically renew annually unless canceled by either party within 90 days of the end of the initial term or anniversaries thereof. Under each of the Employment Agreements, if the executive’s employment is terminated by the Company without "cause" or by the executive with "good reason," (as such terms are defined in the applicable employment agreement) the executive is entitled to receive compensation equal to 18 months of the executive’s then-current base salary, payable in equal installments over 18 months, a pro rata bonus for the year of termination and reimbursement of "COBRA" premiums for up to 18 months for the executive and his dependents. The severance payments are conditioned upon the executive entering into a mutual release of claims with the Company. | |
The previous employment agreements with such executives included a call option in favor of the Company and a put option in favor of the executive, for the Company to purchase 296,828 rollover shares at fair market value if the employment agreement is terminated prior to a qualified initial public offering. The put option did not result in the executive avoiding the risks and rewards of owning the rollover shares. The fair value of the shares of common stock subject to put options was presented as temporary equity in the Company's consolidated financial statements until the initial public offering. The Company recorded changes in the fair value of the common stock subject to put options by adjusting temporary equity with the offset to retained earnings. The fair value per share was determined using the most recent valuation performed by the board of directors. See Note 10 "Stock Based Compensation." |
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related-Party Transactions | ' |
Related-Party Transactions | |
During 2013 the Company paid $375,000, and during 2012 and 2011 the Company paid $1.1 million to Catterton Partners and Argentia Private Investments Inc. or their affiliates ("Equity Sponsors") for management service fees and Class C Dividends pursuant to a management services agreement and an agreement to pay dividends on its Class C common stock. In connection with the IPO, the management services agreement expired and one share of Class C common stock was redeemed. Management service fees and Class C dividends paid in each fiscal year vary due to the timing of payments. | |
In connection with the IPO during the second quarter of 2013, the Company paid $1.7 million of transaction bonuses and related payroll taxes to employees of the Company and $0.8 million in transaction payments to the Equity Sponsors. | |
In connection with the follow-on offering in the fourth quarter of 2013, the Company purchased 108,267 shares of of common stock from certain of its officers at the net offering price per share in such follow on offering. The Company did not receive any of the proceeds from the offering. | |
In February 2011, the Company paid the Equity Sponsors $45.9 million to repay subordinated notes, which included amounts accrued for PIK interest. See Note 4 "Borrowings." | |
Stockholders Agreement. In connection with the IPO, the Company entered into a new stockholders agreement with the Equity Sponsors, the 2013 Stockholders Agreement. The 2013 Stockholders Agreement contains restrictions on sale, issuance or transfer | |
16. Related-Party Transactions (continued) | |
of shares for each Equity Sponsor without the consent of the the other Equity Sponsor except in a tag along sale under the Registration Rights Agreement or the earlier of the second anniversary of the offering and time at which such Sponsor holds less than 25% of the Company's outstanding stock and Class B stock. The 2013 Stockholders Agreement also grants the Equity Sponsors the right to nominate representatives to the Company's board of directors and committees of the board. Catterton and Argentia each have the right to designate two members to the Company's board of directors and the Equity Sponsors will agree to vote to elect such director designees. If at any time an Equity Sponsor owns more than 10% and less than 20% of outstanding Class A and Class B common stock, such Equity Sponsor has the right to designate one nominee for election to the Company's board of directors. If an Equity Sponsor’s ownership level falls below 10% of outstanding Class A and Class B common stock, such Equity Sponsor will no longer have a right to designate a nominee. In addition, for so long as Catterton and Argentia hold at least 35% of the voting power of outstanding common stock, certain actions may not be taken without the approval of Catterton and Argentia. | |
The Company entered into a stockholders agreement with the Equity Sponsors in connection with the 2010 equity recapitalization. Under the 2010 Stockholders Agreement, each of Catterton and Argentia agreed to vote its respective shares of common stock to elect two directors selected by Argentia. Furthermore, if the Public Sector Pension Investment Board Act ceased to prohibit PSPIB from investing in securities of a corporation to which were attached more than 30% of the votes that may be cast to elect directors, each of Catterton and Argentia would vote its respective shares of common stock to elect two directors selected by Catterton. Additionally, Catterton would not vote its shares to elect any three of the five directors not designated by Argentia, unless any such director had been approved by Argentia. Catterton and Argentia further agreed not to vote their shares in favor of any of certain actions without the mutual consent of the other. All of the provisions of the 2010 Stockholders Agreement terminated upon the Company's IPO, in accordance with its terms. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Notes) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Selected Quarterly Financial Data | ' | |||||||||||||||
Selected Quarterly Financial Data (unaudited) | ||||||||||||||||
The following table presents selected unaudited quarterly financial data for the periods indicated (in thousands, except per share data: | ||||||||||||||||
2013 | ||||||||||||||||
31-Dec | 1-Oct | 2-Jul | 2-Apr | |||||||||||||
Revenue | $ | 91,468 | $ | 88,936 | $ | 89,239 | $ | 81,280 | ||||||||
Operating income | 5,163 | 5,580 | 937 | 2,572 | ||||||||||||
Net income | 2,407 | 3,265 | 68 | 924 | ||||||||||||
Basic earnings per share | $ | 0.09 | $ | 0.11 | $ | 0.01 | $ | 0.04 | ||||||||
Diluted earnings per share | $ | 0.08 | $ | 0.11 | $ | 0.01 | $ | 0.04 | ||||||||
2012 | ||||||||||||||||
1-Jan | 2-Oct | 3-Jul | 3-Apr | |||||||||||||
Revenue | $ | 77,929 | $ | 77,099 | $ | 75,494 | $ | 69,888 | ||||||||
Operating income | 3,369 | 4,004 | 5,199 | 3,481 | ||||||||||||
Net income | 1,559 | 133 | 2,180 | 1,291 | ||||||||||||
Basic earnings per share | $ | 0.07 | $ | 0.01 | $ | 0.09 | $ | 0.06 | ||||||||
Diluted earnings per share | $ | 0.07 | $ | 0.01 | $ | 0.09 | $ | 0.06 | ||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On March 3, 2014, Argentia converted 4,770,542 of Class B common stock to Class A common stock. If these shares had been converted to Class A shares as of December 31, 2013, Argentia would have owned approximately 24.1% of the Company's outstanding voting power based on the number of shares of Class A common stock outstanding as of that date, and Catterton and certain of its affiliates would have beneficially owned, in aggregate, shares representing approximately 29.8% of our outstanding voting power. |
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All material intercompany balances and transactions are eliminated in consolidation. | |
Fiscal Year | ' |
Fiscal Year | |
The Company operates on a 52 or 53 week fiscal year ending on the Tuesday closest to December 31. Fiscal years 2013 and 2012, which ended on December 31, 2013 and January 1, 2013, respectively, each contained 52 weeks. Fiscal year 2011, which ended on January 3, 2012, contained 53 weeks. | |
Estimates | ' |
Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
The Company considers all highly liquid investment instruments with an initial maturity of three months or less when purchased to be cash equivalents. Amounts receivable from credit card processors are converted to cash shortly after the related sales transaction and are considered to be cash equivalents because they are both short-term and highly liquid in nature. Amounts receivable from credit card processors and considered cash equivalents as of December 31, 2013 and January 1, 2013 were $1.5 million and $2.5 million, respectively, and were offset on the consolidated balance sheets by payments processed by the Company, but not yet redeemed by the payee. Book overdrafts, which are outstanding checks in excess of cash and cash equivalents, are recorded with | |
1. Business and Summary of Significant Accounting Policies (continued) | |
accounts payable in the accompanying consolidated balance sheets and within operating activities in the accompanying statements of cash flows. | |
Accounts Receivable | ' |
Accounts Receivable | |
Accounts receivable consist primarily of tenant improvement receivables and vendor rebates receivable, as well as amounts due from franchisees and other miscellaneous receivables. | |
Inventories | ' |
Inventories | |
Inventories consist of food, beverages, supplies, and smallwares, and are stated at the lower of cost (first-in, first-out method) or market. Smallwares inventory, which consist of the plates, silverware, and cooking utensils used in the restaurants, are frequently replaced and are considered current assets. Replacement costs of smallwares inventory are recorded as other restaurant operating costs and are expensed as incurred. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment are stated at cost, less accumulated depreciation. Expenditures for major renewals and improvements are capitalized, while expenditures for minor replacements, maintenance and repairs are expensed as incurred. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and the related gain or loss is reflected in earnings. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life or the lease term, which generally includes option periods that are reasonably assured to be exercised. | |
Other Assets | ' |
Other Assets | |
Other assets consist primarily of unamortized debt issuance costs, long term deposits, trademark rights and transferable liquor licenses. Direct costs incurred for the issuance of debt are capitalized and amortized using the straight-line method, which approximates the effective interest method, over the term of the debt. During 2013, 2012, and 2011, the Company incurred debt issuance costs related to amendments of its credit facility in 2013 and 2012 and its financing in 2011. See Note 4 "Borrowings." | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If the assets are determined to be impaired, the amount of impairment recognized is the amount by which the carrying amount of the assets exceeds their fair value, which is based on discounted future cash flows. Estimates of future cash flows are based on the Company's experience and knowledge of local operations. The Company recorded impairment charges of certain long-lived assets of $54,000, $0.1 million and $0.7 million in 2013, 2012 and 2011, respectively, which are included in asset disposals, closure costs and restaurant impairments in the consolidated statements of income. Fair value of the restaurants was determined using Level 3 inputs (as described in Note 6 "Fair Value Measurements") based on a discounted cash flows method at a market level through the estimated date of closure. | |
Self Insurance Programs | ' |
Self-Insurance Programs | |
The Company self-insures for health, workers' compensation, general liability and property damage. Predetermined loss limits have been arranged with insurance companies to limit the Company's per occurrence cash outlay. Estimated costs to settle reported claims and incurred but unreported claims for health and workers' compensation self-insured plans are recorded in accrued payroll and benefits and for general liability and property damage in accrued expenses and other liabilities. | |
Concentrations of Credit Risk | ' |
Concentrations of Credit Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company's cash balances may exceed federally insured limits. Credit card transactions at the Company's restaurants are processed by one service provider. Concentration of credit risk related to accounts receivable are limited, as the Company's receivables are primarily amounts due from landlords for the reimbursement of tenant improvements and the Company generally has the right to offset rent due for tenant improvement receivables. | |
Revenue Recognition | ' |
Revenue Recognition | |
Revenue consists of sales from restaurant operations and franchise royalties and fees. Revenue from the operation of company-owned restaurants are recognized when sales occur. The Company reports revenue net of sales and use taxes collected from customers and remitted to governmental taxing authorities. | |
The Company sells gift cards which do not have an expiration date, and it does not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards when the gift card is redeemed by the customer or the Company determines the likelihood of the gift card being redeemed by the customer is remote ("gift card breakage"). The determination of the gift card breakage rate is based upon Company-specific historical redemption patterns. The Company has determined that approximately 6% of gift cards will not be redeemed, which is recognized ratably over the estimated redemption period of the gift card, approximately 18 months. The Company recognized gift card breakage of $0.2 million in 2013, $0.2 million in 2012 and $0.1 million 2011, in restaurant revenue. | |
Royalties from franchise restaurants are based on a percentage of restaurant revenues and are recognized in the period the related franchised restaurants' sales occur. Development fees and franchise fees, portions of which are collected in advance, are nonrefundable and are recognized in income when all material services or conditions relating to the sale of the franchise have been substantially performed or satisfied by the Company. Both franchise fees and development fees will generally be recognized upon the opening of a franchise restaurant or upon termination of the agreement(s) between the Company and the franchisee. | |
Pre-Opening Costs | ' |
Pre-Opening Costs | |
Pre-opening costs, including rent, wages, benefits and travel for the training and opening teams, food, beverage, and other restaurant operating costs, are expensed as incurred prior to a restaurant opening for business. | |
Advertising and Marketing Costs | ' |
Advertising and Marketing Costs | |
Advertising and marketing costs are expensed as incurred and aggregated $3.9 million, $2.8 million and $2.3 million in 2013, 2012 and 2011, respectively. These costs are included in restaurant operating costs, general and administrative expenses and pre-opening costs based on the nature of the advertising and marketing costs incurred. | |
Rent | ' |
Rent | |
Rent expense for the Company's leases, which generally have escalating rentals over the term of the lease, is recorded on a straight-line basis over the lease term. The lease term includes renewal options which are reasonably assured of being exercised and begins when the Company has control and possession of the leased property, which is typically before rent payments are due under the lease. The difference between the rent expense and rent paid is recorded as deferred rent in the consolidated balance sheets. Rent expense for the period prior to the restaurant opening is reported in pre-opening costs in the consolidated statements of income. Tenant incentives used to fund leasehold improvements are recorded in deferred rent and amortized as a reduction of rent expense over the term of the lease. Certain leases contain rental provisions based on the sales of the underlying restaurants; the Company has determined that the amount of these provisions is immaterial. | |
Provision for Income Taxes | ' |
Provision for Income Taxes | |
Provision (benefit) for income taxes is accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those deferred amounts are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company's policy is to recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in provision (benefit) for income taxes in the consolidated statement of income. | |
Comprehensive Income (Loss) | ' |
Comprehensive Income | |
Comprehensive income consists of the net income and other gains and losses affecting stockholders' equity that, under accounting principles generally accepted in the United States, are excluded from net income. Other comprehensive income, presented in the consolidated statements of comprehensive income for 2012 and 2011, consists of the unrealized income, net of tax, on the Company's cash flow hedges. See Note 5 "Derivative Instruments." | |
Stock Compensation Expense | ' |
Stock Compensation Expense | |
The Company recognizes stock-based compensation using fair value measurement guidance for all share-based payments, including stock options and warrants. For option awards, expense is recognized ratably over the vesting period in an amount equal to the fair value of the stock-based awards on the date of grant determined using the Black-Scholes option pricing model. Warrants are valued using the fair value of the common stock as of the measurement date. See Note 10 "Stock-Based Compensation." | |
Earnings Per Share | ' |
Earnings Per Share | |
Basic earnings per share ("EPS") are calculated by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated using income available to common shareholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options and restricted stock. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. See Note 11 "Earnings Per Share." | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Effective January 2, 2013, the Company adopted Accounting Standards Update ("ASU") No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." The adoption of ASU 2013-02 concerns presentation and disclosure only and does not have an impact on the Company’s consolidated financial position or results of operations. |
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Schedule of Property Plant and Equipment, Useful Life | ' | ||
The estimated useful lives for property and equipment are: | |||
Property and Equipment | Estimated Useful Lives | ||
Leasehold improvements | Shorter of lease term or estimated useful life, not to exceed 20 years | ||
Furniture and fixtures | 3 to 15 years | ||
Equipment | 3 to 7 years |
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Financial Information [Abstract] | ' | ||||||||
Schedule of Accounts Receivable | ' | ||||||||
Accounts receivable consist of the following (in thousands): | |||||||||
2013 | 2012 | ||||||||
Tenant improvement receivables | $ | 2,532 | $ | 3,077 | |||||
Vendor rebate receivables | 748 | 693 | |||||||
Franchise and other receivables | 949 | 796 | |||||||
Total Accounts Receivable | $ | 4,229 | $ | 4,566 | |||||
Schedule of Prepaid Expenses and Other Assets | ' | ||||||||
Prepaid expenses and other assets consist of the following (in thousands): | |||||||||
2013 | 2012 | ||||||||
Prepaid occupancy related costs | $ | 3,318 | $ | 2,700 | |||||
Other prepaid expenses | 1,917 | 1,191 | |||||||
Other current assets | 75 | 79 | |||||||
$ | 5,310 | $ | 3,970 | ||||||
Schedule of Property and Equipment | ' | ||||||||
Property and equipment, net, consist of the following: | |||||||||
2013 | 2012 | ||||||||
Leasehold improvements | $ | 169,953 | $ | 139,907 | |||||
Furniture, fixtures and equipment | 92,695 | 77,202 | |||||||
Construction in progress | 11,209 | 7,878 | |||||||
273,857 | 224,987 | ||||||||
Accumulated depreciation and amortization | (106,243 | ) | (88,700 | ) | |||||
$ | 167,614 | $ | 136,287 | ||||||
Schedule of Accrued Liabilities and Other Liabilities | ' | ||||||||
Accrued payroll and benefits consist of the following: | |||||||||
2013 | 2012 | ||||||||
Accrued payroll and related liabilities | $ | 2,611 | $ | 2,537 | |||||
Accrued bonus | 3,383 | 1,981 | |||||||
Insurance liabilities | 1,127 | 827 | |||||||
$ | 7,121 | $ | 5,345 | ||||||
3. Supplemental Financial Information (continued) | |||||||||
Accrued expense and other liabilities consist of the following: | |||||||||
2013 | 2012 | ||||||||
Gift card liability | $ | 2,289 | $ | 2,182 | |||||
Occupancy related | 1,418 | 1,264 | |||||||
Utilities | 1,321 | 1,002 | |||||||
Other accrued expenses | 2,719 | 2,801 | |||||||
$ | 7,747 | $ | 7,249 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Schedule of Interest Rate Derivatives | ' | ||||||||||||
The following table summarizes the fair value and presentation of the interest rate swaps as hedging instruments in the accompanying consolidated balance sheets (in thousands): | |||||||||||||
2013 Fair Value | 2012 Fair Value | ||||||||||||
Deferred revenue and other noncurrent liabilities | $ | — | $ | 98 | |||||||||
Schedule of Net Investment Hedges | ' | ||||||||||||
The following table summarizes the effect of the interest rate swap on the consolidated statements of income for the fiscal years 2013, 2012 and 2011 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Loss on swap in accumulated other comprehensive loss (pretax) | $ | — | $ | 186 | $ | 209 | |||||||
Realized loss (pretax) recognized in interest expense | — | 382 | 434 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | ||||||||
The following table presents the Company's liabilities measured at fair value on a recurring basis as of December 31, 2013 and January 1, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): | |||||||||
2013 | 2012 | ||||||||
Total derivatives—Level 1 | $ | — | $ | — | |||||
Total derivatives—Level 2 | — | 98 | |||||||
Total derivatives—Level 3 | — | — | |||||||
The following table represents the temporary equity measured at fair value on a recurring basis as of December 31, 2013 and January 1, 2013 and the level in the fair value hierarchy within which the measurements fall (in thousands): | |||||||||
2013 | 2012 | ||||||||
Level 1 | $ | — | $ | — | |||||
Level 2 | — | — | |||||||
Level 3 | — | 3,601 | |||||||
Closed_Restaurant_Reserve_Tabl
Closed Restaurant Reserve (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||
Schedule of Changes in Liabilities for Closed Properties | ' | ||||||||
Following is a summary of the changes in the liability for closed properties as of December 31, 2013 and January 1, 2013 (in thousands). | |||||||||
2013 | 2012 | ||||||||
Closed restaurant reserves, beginning of period | $ | 788 | $ | 515 | |||||
Additions—store closing costs recognized, accretion | 80 | 483 | |||||||
Decreases—payments | (285 | ) | (210 | ) | |||||
Closed restaurant reserves, end of period | $ | 583 | $ | 788 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Provision for Income Taxes | ' | ||||||||||||
The components of the provision for income taxes are as follows for 2013, 2012 and 2011 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax provision: | |||||||||||||
Federal | $ | — | $ | 49 | $ | — | |||||||
State | 561 | 559 | 260 | ||||||||||
561 | 608 | 260 | |||||||||||
Deferred tax provision: | |||||||||||||
Federal | 3,923 | 2,591 | 1,945 | ||||||||||
State | 283 | 16 | (425 | ) | |||||||||
4,206 | 2,607 | 1,520 | |||||||||||
Total provision for income taxes | $ | 4,767 | $ | 3,215 | $ | 1,780 | |||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
The reconciliation of income tax provision that would result from applying the federal statutory rate to pre-tax income as shown in the accompanying consolidated statements of income is as follows for 2013, 2012 and 2011 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income expense at federal rate | $ | 3,887 | $ | 2,848 | $ | 1,907 | |||||||
State income tax, net of related federal income tax benefit | 653 | 420 | 257 | ||||||||||
Permanent items—primarily follow-on transaction costs | 374 | 83 | (10 | ) | |||||||||
Foreign rate differential | 26 | 106 | — | ||||||||||
Change in blended state rate | — | — | (25 | ) | |||||||||
Other items, net | (173 | ) | (242 | ) | (349 | ) | |||||||
Provision for income taxes | $ | 4,767 | $ | 3,215 | $ | 1,780 | |||||||
Effective income tax rate | 41.7 | % | 38.4 | % | 31.7 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Deferred income taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Deferred income tax liabilities and assets consist of the following (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Noncurrent deferred tax assets (liabilities): | |||||||||||||
Loss carry forwards | $ | 2,745 | $ | 2,445 | |||||||||
Deferred rent and franchise revenue | 11,850 | 9,622 | |||||||||||
Property, equipment and intangible assets | (19,342 | ) | (11,061 | ) | |||||||||
Stock-based compensation | 2,442 | 994 | |||||||||||
Alternative minimum tax credits | 208 | 256 | |||||||||||
Interest rate swap | — | 38 | |||||||||||
Other | 951 | 497 | |||||||||||
Total noncurrent net deferred tax assets (liabilities) | (1,146 | ) | 2,791 | ||||||||||
Current deferred tax assets (liabilities): | |||||||||||||
Inventory smallwares | (1,737 | ) | (1,459 | ) | |||||||||
Other | 607 | 436 | |||||||||||
Total current deferred tax liabilities | (1,130 | ) | (1,023 | ) | |||||||||
Net deferred tax assets (liability) | $ | (2,276 | ) | $ | 1,768 | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule of Valuation Assumptions | ' | |||||||||||||
The weighted-average assumptions used in the model were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Risk-free interest | 1.1 | % | 0.4 | % | 1.1 | % | ||||||||
Expected life (years) | 4.3 | 3.4 | 3.7 | |||||||||||
Expected dividend yield | — | — | — | |||||||||||
Volatility | 39.7 | % | 32.7 | % | 26.2 | % | ||||||||
Weighted-average Black-Scholes fair value per share at date of grant | $ | 6.04 | $ | 2.84 | $ | 1.89 | ||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||||||||
The tables below summarize the option activity under the Plan: | ||||||||||||||
Shares | Weighted- | |||||||||||||
Average | ||||||||||||||
Exercise Price | ||||||||||||||
Outstanding—December 28, 2010 | 2,420,861 | 8.67 | ||||||||||||
Granted | 283,307 | 8.67 | ||||||||||||
Forfeited | (81,330 | ) | 8.67 | |||||||||||
Exercised | (1,815 | ) | 8.67 | |||||||||||
Outstanding—January 3, 2012 | 2,621,023 | 8.67 | ||||||||||||
Granted | 516,473 | 11.27 | ||||||||||||
Forfeited | (164,329 | ) | 8.68 | |||||||||||
Exercised | — | — | ||||||||||||
Outstanding—January 1, 2013 | 2,973,167 | 9.12 | ||||||||||||
Granted | 555,273 | 18.06 | ||||||||||||
Forfeited | (55,389 | ) | 11.89 | |||||||||||
Exercised | (163,179 | ) | 8.72 | |||||||||||
Outstanding—December 31, 2013 | 3,309,872 | $ | 10.59 | |||||||||||
10. Stock-Based Compensation (continued) | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic Value(1) (in thousands) | ||||||||||||
Exercise Price | Remaining | |||||||||||||
Years of | ||||||||||||||
Contractual | ||||||||||||||
Life | ||||||||||||||
Outstanding as of December 31, 2013 | 3,309,872 | $ | 10.59 | 7.65 | $ | 83,842 | ||||||||
Vested and expected to vest | 3,291,058 | 10.56 | 7.63 | 83,475 | ||||||||||
Exercisable as of December 31, 2013 | 2,679,130 | 9.45 | 7.27 | 70,925 | ||||||||||
_____________ | ||||||||||||||
-1 | Aggregate intrinsic value represents the amount by which fair value of the Company's stock exceeds the exercise price of the option as of December 31, 2013. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share | ' | ||||||||||||
The following table sets forth the computations of basic and dilutive earnings per share: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income (in thousands) | $ | 6,665 | $ | 5,163 | $ | 3,829 | |||||||
Shares: | |||||||||||||
Basic weighted average shares outstanding | 26,406,904 | 23,238,984 | 23,237,698 | ||||||||||
Dilutive stock options and warrants | 1,281,726 | 26,558 | — | ||||||||||
Diluted weighted average number of shares outstanding | 27,688,629 | 23,265,542 | 23,237,698 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.25 | $ | 0.22 | $ | 0.16 | |||||||
Diluted | $ | 0.24 | $ | 0.22 | $ | 0.16 | |||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Schedule of Future Minimum Lease Payments Required under Existing Leases | ' | |||
Future minimum lease payments required under existing leases as of December 31, 2013 are as follows (in thousands): | ||||
2014 | $ | 33,912 | ||
2015 | 34,351 | |||
2016 | 33,279 | |||
2017 | 30,689 | |||
2018 | 26,368 | |||
Thereafter | 89,330 | |||
$ | 247,929 | |||
Supplemental_Disclosures_to_Co1
Supplemental Disclosures to Consolidated Statements of Cash Flows (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | ||||||||||||
The following table presents the supplemental disclosures to the consolidated statements of cash flows (in thousands) for fiscal years 2013, 2012 and 2011: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest paid (net of amounts capitalized) | $ | 2,506 | $ | 4,400 | $ | 5,177 | |||||||
Income taxes paid (net of refunds) | 137 | 509 | 43 | ||||||||||
Purchases of property and equipment accrued in accounts payable | 996 | 2,648 | 1,170 | ||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||
The following table presents selected unaudited quarterly financial data for the periods indicated (in thousands, except per share data: | ||||||||||||||||
2013 | ||||||||||||||||
31-Dec | 1-Oct | 2-Jul | 2-Apr | |||||||||||||
Revenue | $ | 91,468 | $ | 88,936 | $ | 89,239 | $ | 81,280 | ||||||||
Operating income | 5,163 | 5,580 | 937 | 2,572 | ||||||||||||
Net income | 2,407 | 3,265 | 68 | 924 | ||||||||||||
Basic earnings per share | $ | 0.09 | $ | 0.11 | $ | 0.01 | $ | 0.04 | ||||||||
Diluted earnings per share | $ | 0.08 | $ | 0.11 | $ | 0.01 | $ | 0.04 | ||||||||
2012 | ||||||||||||||||
1-Jan | 2-Oct | 3-Jul | 3-Apr | |||||||||||||
Revenue | $ | 77,929 | $ | 77,099 | $ | 75,494 | $ | 69,888 | ||||||||
Operating income | 3,369 | 4,004 | 5,199 | 3,481 | ||||||||||||
Net income | 1,559 | 133 | 2,180 | 1,291 | ||||||||||||
Basic earnings per share | $ | 0.07 | $ | 0.01 | $ | 0.09 | $ | 0.06 | ||||||||
Diluted earnings per share | $ | 0.07 | $ | 0.01 | $ | 0.09 | $ | 0.06 | ||||||||
Business_and_Summary_of_Signif3
Business and Summary of Significant Accounting Policies (Business and Fiscal Year) (Details) (USD $) | 9 Months Ended | 12 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||
Oct. 01, 2013 | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | Dec. 27, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | Oct. 01, 2013 | Oct. 01, 2013 | Dec. 05, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 01, 2013 | Dec. 05, 2013 | Dec. 31, 2013 | |
segment | Minimum [Member] | Maximum [Member] | Company-Owned [Member] | Franchise [Member] | Franchise [Member] | Franchise [Member] | IPO [Member] | Over-Allotment Option [Member] | Follow On [Member] | Follow On [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | Catterton and Argentia [Member] | |||||
state | restaurant | restaurant | restaurant | restaurant | IPO [Member] | Follow On [Member] | |||||||||||||
Organization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants | ' | ' | ' | ' | ' | ' | ' | 318 | 62 | 51 | 45 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of states in which Noodles & Company operates | ' | 29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price (USD per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18 | $39.50 | ' |
Issuance of common stock, net of transaction expenses, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 803,571 | 108,267 | 108,267 | ' | 6,160,714 | 4,500,000 | ' |
Common stock, par value (USD per share) | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | ' | ' |
Issuance of common stock, net of transaction expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,200,000 | ' | ' | ' | ' | ' | ' | ' |
Repayments of long term debt | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for initial public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $696,000 | ' | ' | ' | ' | ' |
Collaborative group, ownership percentage | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56.00% |
Number of weeks in fiscal year | ' | '364 days | '364 days | '71 days | ' | '364 days | '371 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_and_Summary_of_Signif4
Business and Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) (Credit Card Receivable [Member], USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Millions, unless otherwise specified | ||
Credit Card Receivable [Member] | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' |
Cash equivalents | $1.50 | $2.50 |
Business_and_Summary_of_Signif5
Business and Summary of Significant Accounting Policies (Inventories) (Details) (USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Inventories | $7,223 | $6,042 |
Smallwares Inventory [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventories | $4,500 | $3,800 |
Business_and_Summary_of_Signif6
Business and Summary of Significant Accounting Policies (Property & Equipment) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization | $20,623,000 | $16,719,000 | $14,501,000 |
Internal payroll costs capitalized | 2,600,000 | 2,300,000 | 1,800,000 |
Interest costs capitalized | $300,000 | $300,000 | $300,000 |
Leasehold Improvements [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '20 years | ' | ' |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '15 years | ' | ' |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '3 years | ' | ' |
Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '7 years | ' | ' |
Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, useful life | '3 years | ' | ' |
Business_and_Summary_of_Signif7
Business and Summary of Significant Accounting Policies (Other Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Debt issuance costs | $0.50 | $1 | ' |
Accumulated amortization of debt issuance costs | 0.2 | 0.5 | ' |
August 2012 Credit Facility Amendment [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Write off of deferred debt issuance cost | 0.6 | 2.6 | 0.3 |
Accumulated amortization of debt issuance costs | $0.30 | $0.80 | $0.90 |
Business_and_Summary_of_Signif8
Business and Summary of Significant Accounting Policies (Impairment of Long-Lived Assets) (Details) (Asset Disposals, Closure Costs and Restaurant Impairments [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Asset Disposals, Closure Costs and Restaurant Impairments [Member] | ' | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' | ' |
Asset impairment charges | $54 | $100 | $700 |
Business_and_Summary_of_Signif9
Business and Summary of Significant Accounting Policies (Revenue Recognition) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Franchisor Disclosure [Line Items] | ' | ' | ' |
Percent of gift cards expected to be unredeemed (percent) | 6.00% | ' | ' |
Gift card estimated redemption period | '18 months | ' | ' |
Gift cards breakage | $0.20 | $0.20 | $0.10 |
Franchise [Member] | ' | ' | ' |
Franchisor Disclosure [Line Items] | ' | ' | ' |
Number of restaurants | 62 | 51 | 45 |
Number of restaurants opened during period | 11 | 6 | 2 |
Recovered_Sheet1
Business and Summary of Significant Accounting Policies (Advertising and Marketing Costs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Advertising and marketing costs | $3.90 | $2.80 | $2.30 |
Equity_Recapitalization_Detail
Equity Recapitalization (Details) (USD $) | 0 Months Ended | 0 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Dec. 27, 2010 | Dec. 31, 2013 | Dec. 27, 2010 | Dec. 27, 2010 | Dec. 27, 2010 | Dec. 27, 2010 | Dec. 27, 2010 | Dec. 27, 2010 | Dec. 27, 2010 |
Catterton and Argentia [Member] | Catterton [Member] | Argentia [Member] | Class A Common Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] | Class C Common Stock [Member] | Catterton and PSPIB [Member] | ||
Catterton [Member] | Argentia [Member] | Argentia [Member] | Argentia [Member] | ||||||
Equity Recapitalization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage of merger partner by third parties | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Cash received from equity recapitalization | $181 | ' | $91 | $90 | ' | ' | ' | ' | ' |
Transaction expenses | 7 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock, net of transaction expenses, shares | ' | ' | ' | ' | 10,501,400 | 4,093,360 | 6,292,640 | 1 | ' |
Total consideration paid | 211.7 | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration paid in rollover shares, value | $16.70 | ' | ' | ' | ' | ' | ' | ' | ' |
Collaborative group, ownership percentage | 90.00% | 56.00% | ' | ' | ' | ' | ' | ' | ' |
Supplemental_Financial_Informa2
Supplemental Financial Information (Accounts Receivable) (Details) (USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | $4,229 | $4,566 |
Tenant Improvement [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | 2,532 | 3,077 |
Vendor Rebate [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | 748 | 693 |
Franchise and Other [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable | $949 | $796 |
Supplemental_Financial_Informa3
Supplemental Financial Information (Prepaid Expenses and Other Assets) (Details) (USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Thousands, unless otherwise specified | ||
Supplemental Financial Information [Abstract] | ' | ' |
Prepaid occupancy related costs | $3,318 | $2,700 |
Other prepaid expenses | 1,917 | 1,191 |
Other current assets | 75 | 79 |
Prepaid expenses and other assets | $5,310 | $3,970 |
Supplemental_Financial_Informa4
Supplemental Financial Information (Property and Equipment) (Details) (USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $273,857 | $224,987 |
Accumulated depreciation and amortization | -106,243 | -88,700 |
Property and equipment, net | 167,614 | 136,287 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 169,953 | 139,907 |
Furniture, Fixtures, and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 92,695 | 77,202 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $11,209 | $7,878 |
Supplemental_Financial_Informa5
Supplemental Financial Information (Accrued Payroll and Benefits) (Details) (USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Thousands, unless otherwise specified | ||
Supplemental Financial Information [Abstract] | ' | ' |
Accrued payroll and related liabilities | $2,611 | $2,537 |
Accrued bonus | 3,383 | 1,981 |
Insurance liabilities | 1,127 | 827 |
Accrued payroll and benefits | $7,121 | $5,345 |
Supplemental_Financial_Informa6
Supplemental Financial Information (Accrued Expense and Other Liabilities) (Details) (USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Thousands, unless otherwise specified | ||
Supplemental Financial Information [Abstract] | ' | ' |
Gift card liability | $2,289 | $2,182 |
Occupancy related | 1,418 | 1,264 |
Utilities | 1,321 | 1,002 |
Other accrued expenses | 2,719 | 2,801 |
Accrued expenses and other current liabilities | $7,747 | $7,249 |
Borrowings_Credit_Facility_Det
Borrowings (Credit Facility) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ' |
Amount outstanding | 6,300,000 |
Letters of credit outstanding | 2,800,000 |
Remaining borrowing capacity | 35,900,000 |
Revolving Line of Credit [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | 45,000,000 |
Swing Line Loan [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | 10,000,000 |
Senior Loans [Member] | IPO [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Amount outstanding | 75,000,000 |
Minimum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Commitment fee on unused portion of facility | 1.25% |
Maximum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Commitment fee on unused portion of facility | 0.25% |
Secondary Rates [Member] | Minimum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 0.00% |
Secondary Rates [Member] | Maximum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 0.75% |
London Interbank Offered Rate (LIBOR) [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 1.00% |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 1.00% |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 1.75% |
Federal Funds Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 0.50% |
Borrowings_Bridge_Financing_De
Borrowings (Bridge Financing) (Details) (Catterton and Argentia [Member], Bridge Loan [Member], USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2011 | Jan. 03, 2012 |
Catterton and Argentia [Member] | Bridge Loan [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Bridge financing, amount | ' | $45 |
PIK interest paid | $0.90 | ' |
Bridge financing, interest rate | 12.00% | ' |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Apr. 04, 2011 | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | Dec. 31, 2013 | Jan. 01, 2013 | Mar. 31, 2011 | Feb. 28, 2011 | Apr. 04, 2011 | Dec. 31, 2013 | Apr. 04, 2011 | Apr. 04, 2011 | Apr. 04, 2011 | |
Swap Agreements 2008 [Member] | Swap Agreements 2008 [Member] | Swap Agreements 2008 [Member] | Swap Agreements 2008 [Member] | Swap Agreements 2011 [Member] | Swap Agreements 2011 [Member] | Swap Agreements 2011 [Member] | Swap Agreement One 2011 [Member] | Swap Agreement Two 2011 [Member] | |||||
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | agreement | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of derivative | ' | ' | ' | ' | ' | ' | $14,000,000 | $15,000,000 | ' | ' | $17,500,000 | $20,000,000 | $17,500,000 |
Gain on interest rate cash flow hedge ineffectiveness | ' | ' | ' | ' | 200,000 | 27,000 | ' | ' | ' | 174,000 | ' | ' | ' |
Fair value of derivative | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | 0 | 500,000 |
Number of derivative agreements | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.59% | 3.06% |
Basis spread on variable rate (higher of this rate or one-month LIBOR) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 1.25% |
Unrealized income on cash flow hedges, before tax | ' | 0 | 196,000 | 225,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized income on cash flow hedges, net of tax | ' | ' | 28,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized loss (pretax) recognized in interest expense | $202,000 | $0 | $382,000 | $434,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_Fair_Va
Derivative Instruments (Fair Value and Presentation of Derivatives as Hedges) (Details) (Deferred Revenue and Other Noncurrent Liabilities [Member], USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
Deferred Revenue and Other Noncurrent Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Interest rate cash flow hedge derivative at fair value | $0 | $98,000 |
Derivative_Instruments_Effect_
Derivative Instruments (Effect of Derivatives on Income Statement) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 04, 2011 | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Loss on swap in accumulated other comprehensive loss (pretax) | ' | $0 | $186 | $209 |
Realized loss (pretax) recognized in interest expense | $202 | $0 | $382 | $434 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value of Liabilities Measured on Recurring Basis) (Details) (Recurring [Member], USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivatives, fair value | $0 | $0 |
Temporary equity, fair value | 0 | 0 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivatives, fair value | 0 | 98 |
Temporary equity, fair value | 0 | 0 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivatives, fair value | 0 | 0 |
Temporary equity, fair value | $0 | $3,601 |
Closed_Restaurant_Reserve_Deta
Closed Restaurant Reserve (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 |
Restructuring Reserve [Roll Forward] | ' | ' |
Closed restaurant reserves, beginning of period | $788 | $515 |
Additions—store closing costs recognized, accretion | 80 | 483 |
Decreases—payments | -285 | -210 |
Closed restaurant reserves, end of period | $583 | $788 |
Closed_Restaurant_Reserve_Narr
Closed Restaurant Reserve (Narrative) (Details) (Accrued Expenses and Other Liabilities [Member], USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Millions, unless otherwise specified | ||
Accrued Expenses and Other Liabilities [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring reserve, current portion | $0.20 | $0.30 |
Income_Taxes_Components_of_Pro
Income Taxes (Components of Provision (Benefit) for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Current tax provision: | ' | ' | ' |
Federal | $0 | $49 | $0 |
State | 561 | 559 | 260 |
Total current tax provision | 561 | 608 | 260 |
Deferred tax provision: | ' | ' | ' |
Federal | 283 | 16 | -425 |
State | 3,923 | 2,591 | 1,945 |
Total deferred tax provision (benefit) | 4,206 | 2,607 | 1,520 |
Total provision for income taxes | $4,767 | $3,215 | $1,780 |
Income_Taxes_Tax_Rate_Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal income expense at federal rate | $3,887 | $2,848 | $1,907 |
State income tax, net of related federal income tax benefit | 653 | 420 | 257 |
Permanent items—primarily follow-on transaction costs | 374 | 83 | -10 |
Foreign rate differential | 26 | 106 | 0 |
Change in blended state rate | 0 | 0 | -25 |
Other items, net | -173 | -242 | -349 |
Total provision for income taxes | $4,767 | $3,215 | $1,780 |
Effective income tax rate | 41.70% | 38.40% | 31.70% |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Pre-tax net income | $11,432,000 | $8,378,000 | $5,609,000 |
Foreign income (loss) | -100,000 | ' | ' |
Tax benefits on options | 201,000 | 27,000 | 109,000 |
Increase in equity if realized | 5,100,000 | ' | ' |
Federal [Member] | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Operating loss carryforwards | $22,700,000 | $15,600,000 | ' |
Income_Taxes_Deferred_Income_T
Income Taxes (Deferred Income Taxes) (Details) (USD $) | Dec. 31, 2013 | Jan. 01, 2013 |
In Thousands, unless otherwise specified | ||
Noncurrent deferred tax assets (liabilities): | ' | ' |
Loss carry forwards | $2,745 | $2,445 |
Deferred rent and franchise revenue | 11,850 | 9,622 |
Property, equipment and intangible assets | -19,342 | -11,061 |
Stock-based compensation | 2,442 | 994 |
Alternative minimum tax credits | 208 | 256 |
Interest rate swap | 0 | 38 |
Other | 951 | 497 |
Total noncurrent net deferred tax assets (liabilities) | -1,146 | 2,791 |
Current deferred tax assets (liabilities): | ' | ' |
Inventory smallwares | -1,737 | -1,459 |
Other | 607 | 436 |
Total current deferred tax liabilities | -1,130 | -1,023 |
Net deferred tax assets (liability) | ($2,276) | $1,768 |
Stockholders_Equity_Details
Stockholder's Equity (Details) (USD $) | Dec. 31, 2013 | Jan. 01, 2013 | Jun. 25, 2013 | Dec. 31, 2013 | Jun. 25, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Class A Common Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Preferred Stock [Member] | Equity Sponsors [Member] | |||
Minimum [Member] | ||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized | 181,000,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 180,000,000 | 34,043,001 | ' | 150,000,000 | ' | 30,000,000 | ' | ' |
Common stock, par value | $0.01 | $0.01 | ' | $0.01 | ' | $0.01 | ' | ' |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ' | ' | ' | ' | 1,000,000 | ' |
Preferred stock, par value | $0.01 | $0.01 | ' | ' | ' | ' | $0.01 | ' |
Reverse stock split | ' | ' | 0.577 | ' | 0.577 | ' | ' | ' |
Registration rights, percentage of common stock shares | ' | ' | ' | ' | ' | ' | ' | 10.00% |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | Dec. 31, 2013 | Mar. 10, 2011 | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | Dec. 31, 2013 | Jan. 03, 2012 | |
Employee Stock Purchase Plan [Member] | Class B Common Stock [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | 2010 Stock Incentive Plan Post-Merger [Member] | Capitalized Internal Costs [Member] | Capitalized Internal Costs [Member] | Capitalized Internal Costs [Member] | Stock Option [Member] | Warrant [Member] | ||||
IPO [Member] | ||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | 750,000 | ' | ' | ' | ' | 3,168,705 | ' | ' | ' | ' | ' |
Stock option term | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' |
Stock based compensation expense | ' | ' | ' | $65,000 | ' | $4,300,000 | $1,200,000 | $1,300,000 | ' | $71,000 | $81,000 | $75,000 | ' | $100,000 |
Accelerated vesting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' |
Number of shares available for grant | 3,321,785 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercises in period, intrinsic value | ' | 5,100,000 | 16,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | $2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for recognition | '3 years 1 month 10 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of warrants issued | ' | ' | ' | ' | 86,550 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | ' | ' | ' | ' | 8.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of securities exercised | 28,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Fair_V
Stock-Based Compensation (Fair Value Assumptions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Risk-free interest | 1.10% | 0.40% | 1.10% |
Expected life (years) | '4 years 3 months 18 days | '3 years 4 months 24 days | '3 years 8 months 12 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 39.70% | 32.70% | 26.20% |
Weighted-average Black-Scholes fair value per share at date of grant | $6.04 | $2.84 | $1.89 |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (Stock Option [Member], USD $) | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2010 | Dec. 31, 2013 | Jan. 01, 2013 | Dec. 26, 2010 | |
Stock Option [Member] | ' | ' | ' | ' | |
Options, Outstanding | ' | ' | ' | ' | |
Outstanding, beginning of period | ' | 2,973,167 | 2,621,023 | 2,420,861 | |
Granted | 283,307 | 555,273 | 516,473 | ' | |
Forfeited | -81,330 | -55,389 | -164,329 | ' | |
Exercised | -1,815 | -163,179 | 0 | ' | |
Outstanding, end of period | ' | 3,309,872 | 2,973,167 | 2,420,861 | |
Vested and expected to vest | ' | 3,291,058 | ' | ' | |
Exercisable | ' | 2,679,130 | ' | ' | |
Weighted Average Exercise Price | ' | ' | ' | ' | |
Weighted- average exercise price, beginning balance (USD per share) | ' | $9.12 | $8.67 | $8.67 | |
Granted (USD per share) | $8.67 | $18.06 | $11.27 | ' | |
Forfeited (USD per share) | $8.67 | $11.89 | $8.68 | ' | |
Exercised (USD per share) | $8.67 | $8.72 | $0 | ' | |
Weighted- average exercise price, ending balance (USD per share) | ' | $10.59 | $9.12 | $8.67 | |
Vested and expected to vest (USD per share) | ' | $10.56 | ' | ' | |
Exercisable (USD per share) | ' | $9.45 | ' | ' | |
Weighted- Average Remaining Years of Contractual Life | ' | ' | ' | ' | |
Outstanding | ' | '7 years 7 months 24 days | ' | ' | |
Vested and expected to vest | ' | '7 years 7 months 17 days | ' | ' | |
Exercisable | ' | '7 years 3 months 7 days | ' | ' | |
Aggregate Intrinsic Value | ' | ' | ' | ' | |
Outstanding | ' | $83,842 | [1] | ' | ' |
Vested and expected to vest | ' | 83,475 | [1] | ' | ' |
Exercisable | ' | $70,925 | [1] | ' | ' |
[1] | Aggregate intrinsic value represents the amount by which fair value of the Company's stock exceeds the exercise price of the option as of December 31, 2013. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Oct. 01, 2013 | Jul. 02, 2013 | Apr. 02, 2013 | Jan. 01, 2013 | Oct. 02, 2012 | Jul. 03, 2012 | Apr. 03, 2012 | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $2,407 | $3,265 | $68 | $924 | $1,559 | $133 | $2,180 | $1,291 | $6,665 | $5,163 | $3,829 |
Shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 26,406,904 | 23,238,984 | 23,237,698 |
Dilutive stock options and warrants (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,281,726 | 26,558 | 0 |
Diluted weighted average number of shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 27,688,629 | 23,265,542 | 23,237,698 |
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic EPS (USD per share) | $0.09 | $0.11 | $0.01 | $0.04 | $0.07 | $0.01 | $0.09 | $0.06 | $0.25 | $0.22 | $0.16 |
Diluted EPS (USD per share) | $0.08 | $0.11 | $0.01 | $0.04 | $0.07 | $0.01 | $0.09 | $0.06 | $0.24 | $0.22 | $0.16 |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 17,000 | 590,617 | 2,621,023 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | |
Multiemployer Plans [Line Items] | ' | ' | ' |
Required employee service term | '6 months | ' | ' |
Required employee age | '21 years | ' | ' |
Vesting percentage | 100.00% | ' | ' |
Weighted-average fair value per share at date of grant | $6.04 | $2.84 | $1.89 |
Employee Stock Purchase Plan [Member] | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Maximum employee salary percentage | 15.00% | ' | ' |
Offering date percentage | 85.00% | ' | ' |
Purchase date percentage | 85.00% | ' | ' |
Number of shares authorized | 750,000 | ' | ' |
Shares issued | 18,356 | ' | ' |
Reserved for future issuance | 731,644 | ' | ' |
Risk free interest rate | 0.00% | ' | ' |
Expected life | '3 months | ' | ' |
Expected volatility rate | 14.30% | ' | ' |
Expected dividend rate | 0.00% | ' | ' |
Weighted-average fair value per share at date of grant | $3.55 | ' | ' |
Employee stock purchase plan, compensation expense | $65,000 | ' | ' |
Other Noncurrent Liabilities [Member] | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Deferred compensation plan | 599,000 | ' | ' |
Other Assets [Member] | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Deferred compensation plan | $581,000 | ' | ' |
Leases_Details
Leases (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $33,912 |
2015 | 34,351 |
2016 | 33,279 |
2017 | 30,689 |
2018 | 26,368 |
Thereafter | 89,330 |
Total future minimum lease payments due | $247,929 |
Leases_Narrative_Details
Leases (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating leases, lease term | '10 years | ' | ' |
Operating leases, rent expense | $29.50 | $24.60 | $20.90 |
Minimum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating leases, extension term | '5 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating leases, extension term | '15 years | ' | ' |
Supplemental_Disclosures_to_Co2
Supplemental Disclosures to Consolidated Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Supplemental Cash Flow Elements [Abstract] | ' | ' | ' |
Interest paid (net of amounts capitalized) | $2,506 | $4,400 | $5,177 |
Income taxes paid (net of refunds) | 137 | 509 | 43 |
Purchases of property and equipment accrued in accounts payable | $996 | $2,648 | $1,170 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Executives [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
officer | |
Executives [Member] | ' |
Loss Contingencies [Line Items] | ' |
Employment agreement, number of executives | 2 |
Employment agreement, initial term | '3 years |
Employment agreement, cancelation notice period | '90 days |
Employment agreement, severance pay, number of equivalent months | '18 months |
Employment agreement, period for equal installments | '18 months |
Employment agreement, number of shares available for purchase | 296,828 |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 6 Months Ended | 1 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2010 | Dec. 05, 2013 | Dec. 31, 2013 | Dec. 27, 2010 | Dec. 31, 2013 | Dec. 27, 2010 | Dec. 31, 2013 | Dec. 27, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 27, 2010 | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 | Jul. 03, 2012 | Jul. 03, 2012 | Feb. 28, 2011 |
director | Follow On [Member] | Follow On [Member] | Catterton [Member] | Catterton [Member] | Argentia [Member] | Class B Common Stock [Member] | Class B Common Stock [Member] | Class A and Class B Common Stock [Member] | Class A and Class B Common Stock [Member] | Class C Common Stock [Member] | Management Services Fees [Member] | Management Services Fees [Member] | Management Services Fees [Member] | Bonuses and Payroll Taxes [Member] | Bonuses and Payroll Taxes [Member] | Repayment of Long Term Debt [Member] | |
director | director | Equity Sponsors [Member] | Argentia [Member] | Equity Sponsors [Member] | Equity Sponsors [Member] | Argentia [Member] | Equity Sponsors [Member] | Equity Sponsors [Member] | Equity Sponsors [Member] | Equity Sponsors [Member] | Employees [Member] | Equity Sponsors [Member] | |||||
Minimum [Member] | Maximum [Member] | IPO [Member] | IPO [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $375 | $1,100 | $1,100 | $800 | $1,700 | $45,900 |
Issuance of common stock, net of transaction expenses, shares | ' | 108,267 | 108,267 | ' | ' | ' | ' | 6,292,640 | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Percentage of stock held | ' | ' | ' | ' | ' | ' | 25.00% | ' | 10.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Minimum ownership percentage | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of directors to be selected by related party | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory prohibition against investment if percentage of voting interest is over threshold | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of directors to be selected by related party upon qualifying regulatory change | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of directors not designated by related party, ineligible for election unless approved by related party | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of directors not designated by related party | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Oct. 01, 2013 | Jul. 02, 2013 | Apr. 02, 2013 | Jan. 01, 2013 | Oct. 02, 2012 | Jul. 03, 2012 | Apr. 03, 2012 | Dec. 31, 2013 | Jan. 01, 2013 | Jan. 03, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $91,468 | $88,936 | $89,239 | $81,280 | $77,929 | $77,099 | $75,494 | $69,888 | $350,924 | $300,410 | $256,066 |
Operating income | 5,163 | 5,580 | 937 | 2,572 | 3,369 | 4,004 | 5,199 | 3,481 | 14,252 | 16,052 | 12,016 |
Net income | $2,407 | $3,265 | $68 | $924 | $1,559 | $133 | $2,180 | $1,291 | $6,665 | $5,163 | $3,829 |
Basic EPS (USD per share) | $0.09 | $0.11 | $0.01 | $0.04 | $0.07 | $0.01 | $0.09 | $0.06 | $0.25 | $0.22 | $0.16 |
Diluted EPS (USD per share) | $0.08 | $0.11 | $0.01 | $0.04 | $0.07 | $0.01 | $0.09 | $0.06 | $0.24 | $0.22 | $0.16 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member]) | 0 Months Ended |
Mar. 03, 2014 | |
Argentia [Member] | Class B Common Stock To Class A Common Stock [Member] | ' |
Subsequent Event [Line Items] | ' |
Shares converted | 4,770,542 |
Argentia [Member] | Class A Common Stock [Member] | ' |
Subsequent Event [Line Items] | ' |
Voting Percentage if converted | 24.10% |
Catterton [Member] | Class A Common Stock [Member] | ' |
Subsequent Event [Line Items] | ' |
Voting Percentage if converted | 29.80% |