Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35987 | |
Entity Registrant Name | NOODLES & COMPANY | |
Entity Central Index Key | 0001275158 | |
Current Fiscal Year End Date | --12-29 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1303469 | |
Entity Address, Address Line One | 520 Zang Street, Suite D | |
Entity Address, City or Town | Broomfield, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80021 | |
City Area Code | 720 | |
Local Phone Number | 214-1900 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value per share | |
Trading Symbol | NDLS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,354,811 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 62,076 | $ 10,459 |
Accounts receivable | 2,406 | 3,503 |
Inventories | 9,510 | 9,871 |
Prepaid expenses and other assets | 3,562 | 5,386 |
Income tax receivable | 180 | 103 |
Total current assets | 77,734 | 29,322 |
Property and equipment, net | 124,640 | 128,867 |
Operating lease assets, net | 209,445 | 209,717 |
Goodwill | 7,154 | 7,154 |
Intangibles, net | 855 | 883 |
Other assets, net | 2,567 | 2,576 |
Total long-term assets | 344,661 | 349,197 |
Total assets | 422,395 | 378,519 |
Current liabilities: | ||
Accounts payable | 11,380 | 9,351 |
Accrued payroll and benefits | 10,222 | 13,479 |
Accrued expenses and other current liabilities | 12,478 | 11,679 |
Current operating lease liabilities | 26,144 | 22,775 |
Current portion of long-term debt | 750 | 750 |
Total current liabilities | 60,974 | 58,034 |
Long-term debt, net | 93,040 | 40,497 |
Long-term operating lease liabilities, net | 229,196 | 225,014 |
Deferred tax liabilities, net | 247 | 200 |
Other long-term liabilities | 6,662 | 4,203 |
Total liabilities | 390,119 | 327,948 |
Stockholders’ equity: | ||
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of June 30, 2020 and December 31, 2019; no shares issued or outstanding | 0 | 0 |
Common stock—$0.01 par value, 180,000,000 shares authorized as of June 30, 2020 and December 31, 2019; 46,778,682 issued and 44,354,811 outstanding as of June 30, 2020 and 46,557,934 issued and 44,134,063 outstanding as of December 31, 2019 | 468 | 466 |
Treasury stock, at cost, 2,423,871 shares as of June 30, 2020 and December 31, 2019 | (35,000) | (35,000) |
Additional paid-in capital | 201,601 | 200,585 |
Accumulated deficit | (134,793) | (115,480) |
Total stockholders’ equity | 32,276 | 50,571 |
Total liabilities and stockholders’ equity | $ 422,395 | $ 378,519 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
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 | 180,000,000 |
Common stock, shares, issued | 46,778,682 | 46,557,934 |
Common stock, shares, outstanding | 44,354,811 | 44,134,063 |
Treasury stock, shares | 2,423,871 | 2,423,871 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 02, 2019 | Jun. 30, 2020 | Jul. 02, 2019 | |
Revenue: | ||||
Total revenue | $ 80,157 | $ 120,190 | $ 180,505 | $ 230,236 |
Restaurant operating costs (exclusive of depreciation and amortization shown): | ||||
Other restaurant operating costs | 15,789 | 16,858 | 32,478 | 33,314 |
General and administrative | 10,034 | 11,848 | 20,588 | 21,988 |
Depreciation and amortization | 5,397 | 5,661 | 10,732 | 11,168 |
Pre-opening | 71 | 65 | 144 | 65 |
Restaurant impairments, closure costs and asset disposals | 2,558 | 2,884 | 3,614 | 3,304 |
Total costs and expenses | 92,682 | 118,952 | 197,884 | 230,088 |
(Loss) income from operations | (12,525) | 1,238 | (17,379) | 148 |
Interest expense, net | 920 | 800 | 1,888 | 1,561 |
(Loss) income before taxes | (13,445) | 438 | (19,267) | (1,413) |
Provision for income taxes | 33 | 0 | 46 | 0 |
Net (loss) income and comprehensive (loss) income | $ (13,478) | $ 438 | $ (19,313) | $ (1,413) |
(Loss) earnings per Class A and Class B common stock, combined | ||||
Basic (USD per share) | $ (0.30) | $ 0.01 | $ (0.44) | $ (0.03) |
Diluted (USD per share) | $ (0.30) | $ 0.01 | $ (0.44) | $ (0.03) |
Weighted average shares of Class A and Class B common stock outstanding, combined: | ||||
Basic (in shares) | 44,212,751 | 43,964,175 | 44,177,648 | 43,955,580 |
Diluted (in shares) | 44,212,751 | 45,075,888 | 44,177,648 | 43,955,580 |
Restaurant revenue | ||||
Revenue: | ||||
Total revenue | $ 80,021 | $ 118,858 | $ 178,737 | $ 227,623 |
Restaurant operating costs (exclusive of depreciation and amortization shown): | ||||
Restaurant operating costs | 20,020 | 30,448 | 45,224 | 59,539 |
Franchising royalties and fees, and other | ||||
Revenue: | ||||
Total revenue | 136 | 1,332 | 1,768 | 2,613 |
Labor | ||||
Restaurant operating costs (exclusive of depreciation and amortization shown): | ||||
Restaurant operating costs | 27,137 | 38,877 | 61,368 | 75,969 |
Occupancy | ||||
Restaurant operating costs (exclusive of depreciation and amortization shown): | ||||
Restaurant operating costs | $ 11,676 | $ 12,311 | $ 23,736 | $ 24,741 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Adoption of ASU No. 2016-02 Leases | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitAdoption of ASU No. 2016-02 Leases | ||
Beginning balance (in shares) at Jan. 01, 2019 | 46,353,309 | [1] | 2,423,871 | ||||||
Beginning balance at Jan. 01, 2019 | $ 52,681 | $ (5,992) | $ 464 | [1] | $ (35,000) | $ 198,352 | $ (111,135) | $ (5,992) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock plan transactions and other (in shares) | [1] | 155,277 | |||||||
Stock plan transactions and other | (235) | $ 1 | [1] | (236) | |||||
Stock-based compensation expense | 1,862 | 1,862 | |||||||
Net income (loss) | (1,413) | (1,413) | |||||||
Ending balance (in shares) at Jul. 02, 2019 | 46,508,586 | [1] | 2,423,871 | ||||||
Ending balance at Jul. 02, 2019 | 46,903 | $ 465 | [1] | $ (35,000) | 199,978 | (118,540) | |||
Beginning balance (in shares) at Apr. 02, 2019 | 46,370,951 | [1] | 2,423,871 | ||||||
Beginning balance at Apr. 02, 2019 | 45,596 | $ 464 | [1] | $ (35,000) | 199,110 | (118,978) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock plan transactions and other (in shares) | [1] | 137,635 | |||||||
Stock plan transactions and other | (256) | $ 1 | [1] | (257) | |||||
Stock-based compensation expense | 1,125 | 1,125 | |||||||
Net income (loss) | 438 | 438 | |||||||
Ending balance (in shares) at Jul. 02, 2019 | 46,508,586 | [1] | 2,423,871 | ||||||
Ending balance at Jul. 02, 2019 | 46,903 | $ 465 | [1] | $ (35,000) | 199,978 | (118,540) | |||
Beginning balance (in shares) at Dec. 31, 2019 | 46,557,934 | [1] | 2,423,871 | ||||||
Beginning balance at Dec. 31, 2019 | 50,571 | $ 466 | [1] | $ (35,000) | 200,585 | (115,480) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock plan transactions and other (in shares) | [1] | 220,748 | |||||||
Stock plan transactions and other | (272) | $ 2 | [1] | (274) | |||||
Stock-based compensation expense | 1,290 | 1,290 | |||||||
Net income (loss) | (19,313) | (19,313) | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 46,778,682 | [1] | 2,423,871 | ||||||
Ending balance at Jun. 30, 2020 | 32,276 | $ 468 | [1] | $ (35,000) | 201,601 | (134,793) | |||
Beginning balance (in shares) at Mar. 31, 2020 | 46,583,879 | [1] | 2,423,871 | ||||||
Beginning balance at Mar. 31, 2020 | 44,906 | $ 466 | [1] | $ (35,000) | 200,755 | (121,315) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock plan transactions and other (in shares) | [1] | 194,803 | |||||||
Stock plan transactions and other | (271) | $ 2 | [1] | (273) | |||||
Stock-based compensation expense | 1,119 | 1,119 | |||||||
Net income (loss) | (13,478) | (13,478) | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 46,778,682 | [1] | 2,423,871 | ||||||
Ending balance at Jun. 30, 2020 | $ 32,276 | $ 468 | [1] | $ (35,000) | $ 201,601 | $ (134,793) | |||
[1] | Unless otherwise noted, activity relates to Class A common stock. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jul. 02, 2019 | |
Operating activities | ||
Net loss | $ (19,313) | $ (1,413) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 10,732 | 11,168 |
Deferred income taxes | 47 | 0 |
Restaurant impairments, closure costs and asset disposals | 3,029 | 2,784 |
Amortization of debt issuance costs | 149 | 250 |
Stock-based compensation | 1,253 | 1,841 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,190 | (143) |
Inventories | 306 | (347) |
Prepaid expenses and other assets | 87 | (904) |
Accounts payable | 2,722 | (1,332) |
Income taxes | (77) | (6) |
Operating lease assets and liabilities | 7,507 | (407) |
Accrued expenses and other liabilities | (925) | (2,483) |
Net cash provided by operating activities | 6,707 | 9,008 |
Investing activities | ||
Purchases of property and equipment | (6,810) | (8,217) |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 352 |
Franchise restaurant acquisition, net of cash acquired | 0 | (1,387) |
Net cash used in investing activities | (6,810) | (9,252) |
Financing activities | ||
Proceeds from issuance of long-term debt | 55,500 | 0 |
Payments on long-term debt | (2,375) | (500) |
Payments on finance leases | (402) | (338) |
Debt issuance costs | (731) | 0 |
Stock plan transactions and tax withholding on share-based compensation awards | (272) | (235) |
Net cash provided by (used in) financing activities | 51,720 | (1,073) |
Net increase (decrease) in cash and cash equivalents | 51,617 | (1,317) |
Cash and cash equivalents | ||
Beginning of period | 10,459 | 4,655 |
End of period | $ 62,076 | $ 3,338 |
Business Summary and Basis of P
Business Summary and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Summary and Basis of Presentation | Business Summary and Basis of Presentation Business Noodles & Company (the “Company”), a Delaware corporation, develops and operates fast casual restaurants that serve globally inspired noodle and pasta dishes, soups, salads and appetizers. As of June 30, 2020 , the Company had 380 company-owned restaurants and 76 franchise restaurants in 29 states and the District of Columbia. The Company operates its business as one operating and reportable segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of the Company, all adjustments considered necessary for the fair presentation of the Company’s results of operations, financial position and cash flows for the periods presented have been included and are of a normal, recurring nature. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2019 was derived from audited financial statements. These financial statements should be read in conjunction with the audited financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 . Fiscal Year The Company operates on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. The Company’s fiscal quarters each contain 13 operating weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains 14 operating weeks. Fiscal year 2020 , which ends on December 29, 2020 , and fiscal year 2019 , which ended on December 31, 2019 , both contain 52 weeks. The Company’s fiscal quarter that ended June 30, 2020 is referred to as the second quarter of 2020 , and the fiscal quarter ended July 2, 2019 is referred to as the second quarter of 2019 . Risks and Uncertainties We are subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company’s business is uncertain and difficult to predict. Our operational and financial performance will depend on future developments, including the duration of the outbreak, limitations imposed by federal, state and local governments with respect to reduced seating capacity in our restaurants and other social distancing measures, and our customers’ future willingness to eat at restaurants. Furthermore, capital and financial markets have been negatively impacted by the COVID-19 pandemic, and it is possible that it could cause an extended economic recession. All of the effects of the COVID-19 pandemic could have a material adverse effect on our business. Although the ultimate severity of the COVID-19 pandemic is uncertain at this time, we have implemented several new initiatives to adapt our operations to the current environment, including direct delivery and curbside pickup, to further bolster our existing off premise capabilities. Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 was issued as a means to reduce the complexity of accounting for income taxes for those entities that fall within the scope of the accounting standard. This guidance is effective for public companies for annual reporting periods beginning after December 15, 2020 and interim periods within those reporting periods. Interim period adoption is permitted. The guidance is to be applied using a prospective method, excluding amendments related to franchise taxes, which should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. We are currently evaluating the impacts of adoption of the new guidance to our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , followed by other related ASUs that provided targeted improvements (collectively “ASU 2016-13”). ASU 2016-13 provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The guidance is to be applied using a modified retrospective method and is effective for fiscal years beginning after December 15, 2022 for smaller reporting companies, with early adoption permitted. The Company early adopted ASU 2016-13 on January 1, 2020. The adoption of ASU 2016-13 did not result in any impact to the Company’s consolidated financial statements or disclosures. |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Accounts receivable consist of the following (in thousands): June 30, December 31, Insurance receivable $ 96 $ 744 Vendor rebate receivables 281 788 Franchise and other receivables 2,029 1,971 $ 2,406 $ 3,503 Prepaid expenses and other assets consist of the following (in thousands): June 30, December 31, Prepaid occupancy related costs $ 608 $ 834 Other prepaid expenses 2,948 2,799 Other current assets (1) 6 1,753 $ 3,562 $ 5,386 _____________________________ (1) Other current assets as of December 31, 2019 included assets held in connection with the divestiture of nine company-owned restaurants to a franchisee (“RCRG Sale”) which closed in January 2020. Property and equipment, net, consists of the following (in thousands): June 30, December 31, Leasehold improvements $ 197,859 $ 200,580 Furniture, fixtures and equipment 124,587 122,752 Construction in progress 5,899 2,890 328,345 326,222 Accumulated depreciation and amortization (203,705 ) (197,355 ) Property and equipment, net $ 124,640 $ 128,867 Accrued payroll and benefits consist of the following (in thousands): June 30, December 31, Accrued payroll and related liabilities $ 5,634 $ 6,364 Accrued bonus 848 3,505 Insurance liabilities 3,740 3,610 $ 10,222 $ 13,479 Accrued expenses and other current liabilities consist of the following (in thousands): June 30, December 31, Gift card liability $ 1,900 $ 2,398 Occupancy related 1,695 1,458 Utilities 1,221 1,379 Deferred revenue 1,690 555 Current portion of finance lease liability 998 510 Other accrued expenses 4,974 5,379 Accrued expenses and other current liabilities $ 12,478 $ 11,679 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On May 9, 2018, the Company entered into a credit facility with U.S. Bank National Association (the “2018 Credit Facility”). The 2018 Credit Facility consists of a term loan facility in an aggregate principal amount of $25.0 million and a revolving credit facility of $65.0 million (which may be increased to $75.0 million ), which includes a letter of credit subfacility in the amount of $15.0 million and a swingline subfacility in the amount of $10.0 million . The 2018 Credit Facility has a four-year term and matures on May 9, 2022. On November 20, 2019, the Company amended its 2018 Credit Facility by entering into the First Amendment to the Credit Facility (the “Amendment” or “First Amended Credit Facility”). Among other things, the Amendment: (i) extended the maturity date to November 20, 2024; (ii) increased the revolving credit facility from $65.0 million to $75.0 million ; (iii) delayed step downs of the Company’s leverage covenant; and (iv) increased the limit on capital expenditures to $37.0 million in 2020 and to $45.0 million in 2021 and each fiscal year thereafter. Borrowings under the First Amended Credit Facility, including the term loan facility, bear interest annually, at the Company’s option, at either (i) LIBOR plus a margin of 2.00% to 2.75% per annum, based upon the consolidated total lease-adjusted leverage ratio or (ii) the highest of the following base rates plus a margin of 1.00% to 1.75% per annum: (a) the federal funds rate plus 0.50% ; (b) the U.S. Bank prime rate or (c) the one-month LIBOR plus 1.00% . The Amendment includes a commitment fee of 0.20% to 0.35% per annum, based upon the consolidated total lease-adjusted leverage ratio, on any unused portion of the revolving credit facility. On June 16, 2020 (the “Effective Date”), the Company amended its 2018 Credit Facility by entering into the Second Amendment to the Credit Facility (the “Second Amendment” or the “Second Amended Credit Facility”). Beginning on the Effective Date and through the third quarter of 2021 (the “Amendment Period”), borrowings under the Second Amended Credit Facility, including the term loan facility (“Borrowings”), will bear interest at LIBOR plus 3.25% per annum. Following the Amendment Period, borrowings will bear interest at LIBOR plus a margin of 2.00% to 3.00% per annum, based upon the consolidated total lease-adjusted leverage ratio. Among other things, the Second Amendment (i) waives the lease-adjusted leverage ratio and fixed charge ratio covenants through the first quarter of 2021; (ii) amends the Company’s lease-adjusted leverage ratio and fixed coverage ratio covenant thresholds beginning in the second quarter of 2021 through the third quarter of 2022 and the first quarter of 2022, respectively and (iii) limits capital expenditures to $12.0 million in 2020, $12.0 million plus a liquidity-based performance basket up to an additional $12.0 million in 2021, $34.0 million in 2022, $37.0 million in 2023 and $45.0 million annually thereafter. As of June 30, 2020 , the Company had $95.7 million of indebtedness (excluding $2.0 million of unamortized debt issuance costs) and $3.2 million of letters of credit outstanding under the Second Amended Credit Facility. As of June 30, 2020 , the Company had cash on hand of $62.1 million . The term loan requires principal payments of $187,500 per quarter through the third quarter of 2021, $375,000 per quarter through the third quarter of 2022, and $531,250 per quarter through the third quarter of 2023 and $625,000 per quarter thereafter through maturity. Aggregate maturities for debt outstanding as of June 30, 2020 are as follows (in thousands): Year 1 $ 750 Year 2 1,313 Year 3 1,969 Year 4 2,406 Year 5 89,305 Total $ 95,743 The Company’s outstanding indebtedness bore interest at rates between 3.07% to 6.25% during the first two quarters of 2020 . The Company also maintains outstanding letters of credit to secure obligations under its workers’ compensation program and certain lease obligations. The Company was in compliance with all of its debt covenants as of June 30, 2020 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
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 their fair values due to their short-term nature. 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. The fair value of the Company’s line of credit and term borrowings are measured using Level 2 inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets recognized or disclosed at fair value in the condensed consolidated financial statements on a non-recurring basis include items such as leasehold improvements, property and equipment, operating lease assets, goodwill and other intangible assets. These assets are measured at fair value if determined to be impaired or when acquired. During the second quarter of 2020, the Company performed an interim qualitative impairment assessment of goodwill, due to the impact of the COVID-19 pandemic on its operating results. Based on the qualitative assessment performed, management determined that the Company’s goodwill has not been impaired as of June 30, 2020 and, as a result, no impairment charge was recorded in the second quarter of 2020 or in the first two quarters of 2020 . Adjustments to the fair value of assets measured at fair value on a non-recurring basis as of June 30, 2020 and July 2, 2019 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the Company’s provision for income taxes (in thousands): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Provision for income taxes $ 33 $ — $ 46 $ — Effective tax rate (0.2 )% — % (0.2 )% — % The effective tax rate for the second quarter of 2020 and the second quarter of 2019 reflect the impact of the previously recorded valuation allowance. For the remainder of fiscal 2020 , the Company does not anticipate material income tax expense or benefit as a result of the valuation allowance recorded. The Company will maintain the valuation allowance against deferred tax assets until there is sufficient evidence to support a full or partial reversal. The reversal of a previously recorded valuation allowance will generally result in a benefit from income tax. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), which provides economic relief in response to the COVID-19 pandemic, was signed into law. The CARES Act includes provisions that permit refunds of alternative minimum tax credits, temporary modifications to the limitations placed on the tax deductibility of net interest expenses, and technical amendments for qualified improvement property (“QIP”). We do not expect that the provisions in the CARES Act will have a material impact to our tax rate or expense during 2020. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s Stock Incentive Plan (the “Plan”), as amended and restated in May of 2013, authorizes the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”) and incentive bonuses to employees, officers, non-employee directors and other service providers. As of June 30, 2020 , approximately 2.8 million share-based awards were available to be granted under the Plan. The following table shows total stock-based compensation expense (in thousands): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Stock-based compensation expense $ 1,094 $ 1,155 $ 1,253 $ 1,881 Capitalized stock-based compensation expense $ 25 $ 10 $ 37 $ 21 |
Restaurant Impairments, Closure
Restaurant Impairments, Closure Costs and Asset Disposals | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment Impairment or Disposal [Abstract] | |
Restaurant Impairments, Closure Costs and Asset Disposals | Restaurant Impairments, Closure Costs and Asset Disposals The following table presents restaurant impairments, closure costs and asset disposals (in thousands): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Restaurant impairments (1) $ 2,135 $ 2,276 $ 2,262 $ 2,465 Closure costs (1) 299 173 512 134 Loss on disposal of assets and other 124 435 840 705 $ 2,558 $ 2,884 $ 3,614 $ 3,304 _____________________________ (1) Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed. During the second quarter of 2020 , five restaurants were identified as impaired for which the Company recorded an impairment charge of $2.1 million . In the second quarter of 2019, two restaurants were impaired for a total impairment charge of $2.2 million . Impairment is based on management’s current assessment of the expected future cash flows of a restaurant based on recent results and other specific market factors. Impairment expense is a Level 3 fair value measure and is determined by comparing the carrying value of restaurant assets to the estimated fair market value of the restaurant assets at resale value and the right-of-use asset based on a discounted cash flow analysis utilizing market lease rates. The Company will continue to monitor the impact from the COVID-19 pandemic as it relates to recoverability of long-lived assets. Although we have seen an improvement in sales, we are unable to predict how long these conditions will persist, what additional measures may be introduced by governments or what effect any such additional measures may have on restaurants and our business. Any measure that encourages consumers to stay in their homes, engage in social distancing or avoid larger gatherings of people for an extended period of time is highly likely to be harmful to the restaurant industry in general. Closure costs in each of the second quarter and first two quarters of 2020 and 2019 include ongoing costs related to restaurants closed in previous years as well as one company-owned restaurant closed during the second quarter of 2020 that was near the end of its lease term. In addition, closure costs in the second quarter and first two quarters of 2019 were partially offset by a gain of $0.1 million and $0.4 million , respectively, from adjustments to liabilities as lease terminations occur. Loss on disposal of assets and other includes expenses recognized during the first two quarters of 2020 related to the divestiture of company-owned restaurants to a franchisee. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using net income (loss) available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options, warrants and RSUs. 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 diluted EPS (in thousands, except share and per share data): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Net (loss) income $ (13,478 ) $ 438 $ (19,313 ) $ (1,413 ) Shares: Basic weighted average shares outstanding 44,212,751 43,964,175 44,177,648 43,955,580 Effect of dilutive securities — 1,111,713 — — Diluted weighted average shares outstanding 44,212,751 45,075,888 44,177,648 43,955,580 (Loss) earnings per share: Basic (loss) earnings per share $ (0.30 ) $ 0.01 $ (0.44 ) $ (0.03 ) Diluted (loss) earnings per share $ (0.30 ) $ 0.01 $ (0.44 ) $ (0.03 ) The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. Potential common shares are excluded from the computation of diluted earnings per share when the effect would be anti-dilutive. The shares issuable on the vesting or exercise of share-based awards or exercise of outstanding warrants that were excluded from the calculation of diluted earnings (loss) per share because the effect of their inclusion would have been anti-dilutive totaled 4,142,754 and 1,297,255 for the second quarter of 2020 and 2019 , respectively, and totaled 3,309,278 and 3,229,030 for the first two quarters of 2020 and 2019 , respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases As discussed in Note 1, Business Summary and Basis of Presentation, the COVID-19 pandemic impacted us significantly, including causing us to close all of our dining rooms starting in March 2020. We commenced reopening a portion of our dining rooms in June of 2020. During the second quarter of 2020, we were able to negotiate with the majority of our landlords to obtain rent abatements, defer rent amounts due during the second quarter, or in some cases, extend the period of the respective lease term. In the case where the lease term was extended, we remeasured the remaining consideration in the contract. The total rent that was deferred for lease amendments that have been executed through June 30, 2020 was $4.0 million . Further, for certain of our restaurants, the COVID-19 pandemic had a significant impact to the underlying asset values. Based on an impairment analysis performed during the quarter ended June 30, 2020, we recorded asset impairment charges of $0.3 million to reduce the carrying value of certain operating lease assets to their respective estimated fair value. Supplemental balance sheet information related to leases is as follows (in thousands): Classification June 30, December 31, Assets Operating Operating lease assets, net $ 209,445 $ 209,717 Finance Finance lease assets, net (1) 3,086 771 Total leased assets $ 212,531 $ 210,488 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 26,144 $ 22,775 Finance Current finance lease liabilities (2) 998 510 Long-term lease liabilities Operating Long-term operating lease liabilities 229,196 225,014 Finance Long-term finance lease liabilities (2) 2,127 281 Total lease liabilities $ 258,465 $ 248,580 _____________________ (1) The finance lease assets are included in property and equipment, net in the Condensed Consolidated Balance Sheets. (2) The current portion of the finance lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion was included in other long-term liabilities in the Condensed Consolidated Balance Sheets. Sublease income recognized in the Condensed Consolidated Statements of Operations was $0.1 million and $0.1 million for the for the second quarter of 2020 and 2019 , and $0.5 million and $0.2 million first two quarters of 2020 and 2019 , respectively. Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Cash paid for lease liabilities: Operating leases $ 6,066 $ 10,813 $ 13,574 $ 21,506 Finance leases 270 160 452 377 $ 6,336 $ 10,973 $ 14,026 $ 21,883 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 4,557 $ 2,049 $ 10,281 $ 5,210 Finance leases 1,238 179 2,842 229 $ 5,795 $ 2,228 $ 13,123 $ 5,439 Future minimum lease payments required under existing leases as of June 30, 2020 are as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2020 $ 22,747 $ 599 $ 23,346 2021 44,433 978 45,411 2022 43,604 836 44,440 2023 42,514 682 43,196 2024 40,982 218 41,200 Thereafter 170,200 37 170,237 Total lease payments 364,480 3,350 367,830 Less: Imputed interest 109,140 225 109,365 Present value of lease liabilities $ 255,340 $ 3,125 $ 258,465 |
Leases | Leases As discussed in Note 1, Business Summary and Basis of Presentation, the COVID-19 pandemic impacted us significantly, including causing us to close all of our dining rooms starting in March 2020. We commenced reopening a portion of our dining rooms in June of 2020. During the second quarter of 2020, we were able to negotiate with the majority of our landlords to obtain rent abatements, defer rent amounts due during the second quarter, or in some cases, extend the period of the respective lease term. In the case where the lease term was extended, we remeasured the remaining consideration in the contract. The total rent that was deferred for lease amendments that have been executed through June 30, 2020 was $4.0 million . Further, for certain of our restaurants, the COVID-19 pandemic had a significant impact to the underlying asset values. Based on an impairment analysis performed during the quarter ended June 30, 2020, we recorded asset impairment charges of $0.3 million to reduce the carrying value of certain operating lease assets to their respective estimated fair value. Supplemental balance sheet information related to leases is as follows (in thousands): Classification June 30, December 31, Assets Operating Operating lease assets, net $ 209,445 $ 209,717 Finance Finance lease assets, net (1) 3,086 771 Total leased assets $ 212,531 $ 210,488 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 26,144 $ 22,775 Finance Current finance lease liabilities (2) 998 510 Long-term lease liabilities Operating Long-term operating lease liabilities 229,196 225,014 Finance Long-term finance lease liabilities (2) 2,127 281 Total lease liabilities $ 258,465 $ 248,580 _____________________ (1) The finance lease assets are included in property and equipment, net in the Condensed Consolidated Balance Sheets. (2) The current portion of the finance lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion was included in other long-term liabilities in the Condensed Consolidated Balance Sheets. Sublease income recognized in the Condensed Consolidated Statements of Operations was $0.1 million and $0.1 million for the for the second quarter of 2020 and 2019 , and $0.5 million and $0.2 million first two quarters of 2020 and 2019 , respectively. Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Cash paid for lease liabilities: Operating leases $ 6,066 $ 10,813 $ 13,574 $ 21,506 Finance leases 270 160 452 377 $ 6,336 $ 10,973 $ 14,026 $ 21,883 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 4,557 $ 2,049 $ 10,281 $ 5,210 Finance leases 1,238 179 2,842 229 $ 5,795 $ 2,228 $ 13,123 $ 5,439 Future minimum lease payments required under existing leases as of June 30, 2020 are as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2020 $ 22,747 $ 599 $ 23,346 2021 44,433 978 45,411 2022 43,604 836 44,440 2023 42,514 682 43,196 2024 40,982 218 41,200 Thereafter 170,200 37 170,237 Total lease payments 364,480 3,350 367,830 Less: Imputed interest 109,140 225 109,365 Present value of lease liabilities $ 255,340 $ 3,125 $ 258,465 |
Supplemental Disclosures to Con
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows | Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows The following table presents the supplemental disclosures to the Condensed Consolidated Statements of Cash Flows for the two quarters ended June 30, 2020 and July 2, 2019 (in thousands): June 30, July 2, Interest paid (net of amounts capitalized) $ 1,666 $ 1,382 Income taxes paid 25 6 Purchases of property and equipment accrued in accounts payable 1,793 2,392 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Revenue consists of sales from restaurant operations, franchise royalties and fees, and sublease income. Revenue from the operation of company-owned restaurants is recognized when sales occur. The Company reports revenue net of sales and use taxes collected from customers and remitted to governmental taxing authorities. Gift Cards 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 9% of gift cards will not be redeemed and recognizes gift card breakage ratably over the estimated redemption period of the gift card, which is approximately 24 months . Gift card liability balances are typically highest at the end of each calendar year following increased gift card purchases during the holiday season. As of June 30, 2020 and December 31, 2019 , the current portion of the gift card liability, $1.9 million and $2.4 million , respectively, was included in accrued expenses and other current liabilities, and the long-term portion, $0.6 million and $0.9 million , respectively, was included in other long-term liabilities in the Condensed Consolidated Balance Sheets. Revenue recognized in the Condensed Consolidated Statements of Operations for the redemption of gift cards was $2.1 million and $3.2 million for the first two quarters of 2020 and 2019 , respectively. Franchise Fees Royalties from franchise restaurants are based on a percentage of restaurant revenues and are recognized in the period the related franchised restaurants’ sales occur. In the second quarter of 2020, we forgave the franchise royalties due for the quarter due to the impact of the COVID-19 pandemic. In the third quarter, we will resume recognizing franchise royalty revenue and cash collection. Development fees and franchise fees, portions of which are collected in advance, are nonrefundable and are recognized in income ratably over the term of the related franchise agreement or recognized upon the termination of the agreement between the Company and the franchisee. The Company has determined that the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement and should be treated as a single performance obligation; therefore, initial fees received from franchisees are recognized as revenue over the term of each respective franchise agreement, which is typically 20 years . Loyalty Program Customers who register on the Noodles App are automatically enrolled in the Noodles Rewards program, which is primarily a spend-based loyalty program. With each purchase, Noodles Rewards members earn loyalty points that can be redeemed for rewards, including free products. Using an estimate of the value of reward redemptions, we defer revenue associated with points earned, net of estimated points that will not be redeemed. Points generally expire after six months. Revenue is recognized in a future period when the reward points are redeemed. As of June 30, 2020 and December 31, 2019 , the deferred revenue related to the rewards was $1.7 million and $0.6 million , respectively, and was included in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company is subject to other 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 June 30, 2020 . These matters could affect the operating results of any one financial reporting period when resolved in future periods. The Company believes that an unfavorable outcome with respect to these matters is remote or a potential range of loss is not material to its 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 its business, financial condition, results of operations or cash flows. |
Business Summary and Basis of_2
Business Summary and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of the Company, all adjustments considered necessary for the fair presentation of the Company’s results of operations, financial position and cash flows for the periods presented have been included and are of a normal, recurring nature. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2019 was derived from audited financial statements. These financial statements should be read in conjunction with the audited financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 . |
Fiscal Year | Fiscal Year The Company operates on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. The Company’s fiscal quarters each contain 13 operating weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains 14 operating weeks. Fiscal year 2020 , which ends on December 29, 2020 , and fiscal year 2019 , which ended on December 31, 2019 , both contain 52 weeks. The Company’s fiscal quarter that ended June 30, 2020 is referred to as the second quarter of 2020 , and the fiscal quarter ended July 2, 2019 is referred to as the second quarter of 2019 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 was issued as a means to reduce the complexity of accounting for income taxes for those entities that fall within the scope of the accounting standard. This guidance is effective for public companies for annual reporting periods beginning after December 15, 2020 and interim periods within those reporting periods. Interim period adoption is permitted. The guidance is to be applied using a prospective method, excluding amendments related to franchise taxes, which should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. We are currently evaluating the impacts of adoption of the new guidance to our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , followed by other related ASUs that provided targeted improvements (collectively “ASU 2016-13”). ASU 2016-13 provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The guidance is to be applied using a modified retrospective method and is effective for fiscal years beginning after December 15, 2022 for smaller reporting companies, with early adoption permitted. The Company early adopted ASU 2016-13 on January 1, 2020. The adoption of ASU 2016-13 did not result in any impact to the Company’s consolidated financial statements or disclosures. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Financial Information [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following (in thousands): June 30, December 31, Insurance receivable $ 96 $ 744 Vendor rebate receivables 281 788 Franchise and other receivables 2,029 1,971 $ 2,406 $ 3,503 |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following (in thousands): June 30, December 31, Prepaid occupancy related costs $ 608 $ 834 Other prepaid expenses 2,948 2,799 Other current assets (1) 6 1,753 $ 3,562 $ 5,386 _____________________________ (1) Other current assets as of December 31, 2019 included assets held in connection with the divestiture of nine company-owned restaurants to a franchisee (“RCRG Sale”) which closed in January 2020. |
Schedule of Property and Equipment | Property and equipment, net, consists of the following (in thousands): June 30, December 31, Leasehold improvements $ 197,859 $ 200,580 Furniture, fixtures and equipment 124,587 122,752 Construction in progress 5,899 2,890 328,345 326,222 Accumulated depreciation and amortization (203,705 ) (197,355 ) Property and equipment, net $ 124,640 $ 128,867 |
Schedule of Accrued Payroll, Benefits, Expenses and Other Current Liabilities | Accrued payroll and benefits consist of the following (in thousands): June 30, December 31, Accrued payroll and related liabilities $ 5,634 $ 6,364 Accrued bonus 848 3,505 Insurance liabilities 3,740 3,610 $ 10,222 $ 13,479 Accrued expenses and other current liabilities consist of the following (in thousands): June 30, December 31, Gift card liability $ 1,900 $ 2,398 Occupancy related 1,695 1,458 Utilities 1,221 1,379 Deferred revenue 1,690 555 Current portion of finance lease liability 998 510 Other accrued expenses 4,974 5,379 Accrued expenses and other current liabilities $ 12,478 $ 11,679 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Maturities for Debt Outstanding | Aggregate maturities for debt outstanding as of June 30, 2020 are as follows (in thousands): Year 1 $ 750 Year 2 1,313 Year 3 1,969 Year 4 2,406 Year 5 89,305 Total $ 95,743 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The following table presents the Company’s provision for income taxes (in thousands): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Provision for income taxes $ 33 $ — $ 46 $ — Effective tax rate (0.2 )% — % (0.2 )% — % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table shows total stock-based compensation expense (in thousands): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Stock-based compensation expense $ 1,094 $ 1,155 $ 1,253 $ 1,881 Capitalized stock-based compensation expense $ 25 $ 10 $ 37 $ 21 |
Restaurant Impairments, Closu_2
Restaurant Impairments, Closure Costs and Asset Disposals (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment Impairment or Disposal [Abstract] | |
Schedule of Restaurant Impairments, Closure Costs and Asset Disposals | The following table presents restaurant impairments, closure costs and asset disposals (in thousands): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Restaurant impairments (1) $ 2,135 $ 2,276 $ 2,262 $ 2,465 Closure costs (1) 299 173 512 134 Loss on disposal of assets and other 124 435 840 705 $ 2,558 $ 2,884 $ 3,614 $ 3,304 _____________________________ (1) Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS | The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Net (loss) income $ (13,478 ) $ 438 $ (19,313 ) $ (1,413 ) Shares: Basic weighted average shares outstanding 44,212,751 43,964,175 44,177,648 43,955,580 Effect of dilutive securities — 1,111,713 — — Diluted weighted average shares outstanding 44,212,751 45,075,888 44,177,648 43,955,580 (Loss) earnings per share: Basic (loss) earnings per share $ (0.30 ) $ 0.01 $ (0.44 ) $ (0.03 ) Diluted (loss) earnings per share $ (0.30 ) $ 0.01 $ (0.44 ) $ (0.03 ) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Supplemental Lease Information | Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended Two Fiscal Quarters Ended June 30, July 2, June 30, July 2, Cash paid for lease liabilities: Operating leases $ 6,066 $ 10,813 $ 13,574 $ 21,506 Finance leases 270 160 452 377 $ 6,336 $ 10,973 $ 14,026 $ 21,883 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 4,557 $ 2,049 $ 10,281 $ 5,210 Finance leases 1,238 179 2,842 229 $ 5,795 $ 2,228 $ 13,123 $ 5,439 Supplemental balance sheet information related to leases is as follows (in thousands): Classification June 30, December 31, Assets Operating Operating lease assets, net $ 209,445 $ 209,717 Finance Finance lease assets, net (1) 3,086 771 Total leased assets $ 212,531 $ 210,488 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 26,144 $ 22,775 Finance Current finance lease liabilities (2) 998 510 Long-term lease liabilities Operating Long-term operating lease liabilities 229,196 225,014 Finance Long-term finance lease liabilities (2) 2,127 281 Total lease liabilities $ 258,465 $ 248,580 _____________________ (1) The finance lease assets are included in property and equipment, net in the Condensed Consolidated Balance Sheets. (2) The current portion of the finance lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion was included in other long-term liabilities in the Condensed Consolidated Balance Sheets. |
Schedule of Future Minimum Lease Payments for Finance Leases | Future minimum lease payments required under existing leases as of June 30, 2020 are as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2020 $ 22,747 $ 599 $ 23,346 2021 44,433 978 45,411 2022 43,604 836 44,440 2023 42,514 682 43,196 2024 40,982 218 41,200 Thereafter 170,200 37 170,237 Total lease payments 364,480 3,350 367,830 Less: Imputed interest 109,140 225 109,365 Present value of lease liabilities $ 255,340 $ 3,125 $ 258,465 |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments required under existing leases as of June 30, 2020 are as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2020 $ 22,747 $ 599 $ 23,346 2021 44,433 978 45,411 2022 43,604 836 44,440 2023 42,514 682 43,196 2024 40,982 218 41,200 Thereafter 170,200 37 170,237 Total lease payments 364,480 3,350 367,830 Less: Imputed interest 109,140 225 109,365 Present value of lease liabilities $ 255,340 $ 3,125 $ 258,465 |
Supplemental Disclosures to C_2
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Disclosures to the Condensed Consolidated Statements of Cash Flows | The following table presents the supplemental disclosures to the Condensed Consolidated Statements of Cash Flows for the two quarters ended June 30, 2020 and July 2, 2019 (in thousands): June 30, July 2, Interest paid (net of amounts capitalized) $ 1,666 $ 1,382 Income taxes paid 25 6 Purchases of property and equipment accrued in accounts payable 1,793 2,392 |
Business Summary and Basis of_3
Business Summary and Basis of Presentation - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020segmentrestaurantstate | |
Franchisor Disclosure [Line Items] | |
Number of states with operations | state | 29 |
Number of operating segments | segment | 1 |
Number of reportable segments | segment | 1 |
Company-Owned | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | restaurant | 380 |
Franchise | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | restaurant | 76 |
Supplemental Financial Inform_3
Supplemental Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 2,406 | $ 3,503 |
Insurance receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 96 | 744 |
Vendor rebate receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 281 | 788 |
Franchise and other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 2,029 | $ 1,971 |
Supplemental Financial Inform_4
Supplemental Financial Information - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Supplemental Financial Information [Abstract] | ||
Prepaid occupancy related costs | $ 608 | $ 834 |
Other prepaid expenses | 2,948 | 2,799 |
Other current assets | 6 | 1,753 |
Prepaid expenses and other assets | $ 3,562 | $ 5,386 |
Supplemental Financial Inform_5
Supplemental Financial Information - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 328,345 | $ 326,222 |
Accumulated depreciation and amortization | (203,705) | (197,355) |
Property and equipment, net | 124,640 | 128,867 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 197,859 | 200,580 |
Furniture, Fixtures, and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 124,587 | 122,752 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,899 | $ 2,890 |
Supplemental Financial Inform_6
Supplemental Financial Information - Accrued Payroll and Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Supplemental Financial Information [Abstract] | ||
Accrued payroll and related liabilities | $ 5,634 | $ 6,364 |
Accrued bonus | 848 | 3,505 |
Insurance liabilities | 3,740 | 3,610 |
Accrued payroll and benefits | $ 10,222 | $ 13,479 |
Supplemental Financial Inform_7
Supplemental Financial Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Supplemental Financial Information [Abstract] | ||
Gift card liability | $ 1,900 | $ 2,398 |
Occupancy related | 1,695 | 1,458 |
Utilities | 1,221 | 1,379 |
Deferred revenue | 1,690 | 555 |
Current portion of finance lease liability | 998 | 510 |
Other accrued expenses | 4,974 | 5,379 |
Accrued expenses and other current liabilities | $ 12,478 | $ 11,679 |
Long-Term Debt - Narrative (De
Long-Term Debt - Narrative (Details) - USD ($) | Nov. 20, 2019 | Jun. 30, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Nov. 20, 2024 | Sep. 30, 2021 | Sep. 30, 2021 | Nov. 20, 2024 | Jun. 16, 2020 | Dec. 31, 2019 | May 09, 2018 |
Line of Credit Facility [Line Items] | |||||||||||
Indebtedness | $ 95,743,000 | ||||||||||
Unamortized debt issuance costs | 2,000,000 | ||||||||||
Letters of credit outstanding | 3,200,000 | ||||||||||
Cash on hand | $ 62,076,000 | $ 10,459,000 | |||||||||
Forecast | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Quarterly principal payments | $ 531,250 | $ 375,000 | $ 625,000 | $ 187,500 | |||||||
Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate during period | 3.07% | ||||||||||
Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate during period | 6.25% | ||||||||||
2018 Letter of Credit Subfacility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 15,000,000 | ||||||||||
2018 Swingline Subfacility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 10,000,000 | ||||||||||
Amended 2018 Credit Facility | Federal Funds Rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 0.50% | ||||||||||
Amended 2018 Credit Facility | Prime Rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 1.00% | ||||||||||
Amended 2018 Credit Facility | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment fee percentage | 0.20% | ||||||||||
Amended 2018 Credit Facility | Minimum | LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 2.00% | ||||||||||
Amended 2018 Credit Facility | Minimum | Base Rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 1.00% | ||||||||||
Amended 2018 Credit Facility | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment fee percentage | 0.35% | ||||||||||
Amended 2018 Credit Facility | Maximum | LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 2.75% | ||||||||||
Amended 2018 Credit Facility | Maximum | Base Rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 1.75% | ||||||||||
Second Amended 2018 Credit Facility | LIBOR | Forecast | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 3.25% | ||||||||||
Second Amended 2018 Credit Facility | Minimum | LIBOR | Forecast | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 2.00% | ||||||||||
Second Amended 2018 Credit Facility | Maximum | LIBOR | Forecast | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 3.00% | ||||||||||
Revolving Credit Facility | 2018 Term Loan Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 25,000,000 | ||||||||||
Revolving Credit Facility | 2018 Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 65,000,000 | ||||||||||
Revolving Credit Facility | Amended 2018 Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 75,000,000 | ||||||||||
Capital expenditure limit in current fiscal year per agreement | 37,000,000 | ||||||||||
Capital expenditure limit in each year after current fiscal year | $ 45,000,000 | ||||||||||
Revolving Credit Facility | Second Amended 2018 Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Capital expenditure limit in current fiscal year per agreement | $ 12,000,000 | ||||||||||
Capital expenditure limit in next fiscal year per agreement | 12,000,000 | ||||||||||
Liquidity-based performance basket in next fiscal year per agreement | 12,000,000 | ||||||||||
Capital expenditure limit in 2022 per agreement | 34,000,000 | ||||||||||
Capital expenditure limit in 2023 per agreement | 37,000,000 | ||||||||||
Capital expenditure limit after 2023 per agreement | $ 45,000,000 | ||||||||||
Letter of Credit | 2018 Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 75,000,000 |
Long-Term Debt - Aggregate Matu
Long-Term Debt - Aggregate Maturities (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Aggregate Maturities for Debt Outstanding | |
Year 1 | $ 750 |
Year 2 | 1,313 |
Year 3 | 1,969 |
Year 4 | 2,406 |
Year 5 | 89,305 |
Total | $ 95,743 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | ||
Goodwill impairment charge | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 02, 2019 | Jun. 30, 2020 | Jul. 02, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 33 | $ 0 | $ 46 | $ 0 |
Effective tax rate | (0.20%) | 0.00% | (0.20%) | 0.00% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 02, 2019 | Jun. 30, 2020 | Jul. 02, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Shares awards available to be granted (in shares) | 2.8 | 2.8 | ||
Stock-based compensation expense | $ 1,094 | $ 1,155 | $ 1,253 | $ 1,881 |
Capitalized stock-based compensation expense | $ 25 | $ 10 | $ 37 | $ 21 |
Restaurant Impairments, Closu_3
Restaurant Impairments, Closure Costs and Asset Disposals - Schedule of Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 02, 2019 | Jun. 30, 2020 | Jul. 02, 2019 | |
Property, Plant and Equipment Impairment or Disposal [Abstract] | ||||
Restaurant impairments | $ 2,135 | $ 2,276 | $ 2,262 | $ 2,465 |
Closure costs | 299 | 173 | 512 | 134 |
Loss on disposal of assets and other | 124 | 435 | 840 | 705 |
Restaurant impairments, closure costs and asset disposals | $ 2,558 | $ 2,884 | $ 3,614 | $ 3,304 |
Restaurant Impairments, Closu_4
Restaurant Impairments, Closure Costs and Asset Disposals - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($)restaurant | Jul. 02, 2019USD ($)restaurant | Jul. 02, 2019USD ($) | |
Property, Plant and Equipment Impairment or Disposal [Abstract] | |||
Number of restaurants impaired | restaurant | 5 | 2 | |
Impairment charge for restaurants | $ 2.1 | $ 2.2 | |
Offset adjustment to closure costs related to lease terminations | $ 0.1 | $ 0.4 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 02, 2019 | Jun. 30, 2020 | Jul. 02, 2019 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (13,478) | $ 438 | $ (19,313) | $ (1,413) |
Shares: | ||||
Basic weighted average shares outstanding (in shares) | 44,212,751 | 43,964,175 | 44,177,648 | 43,955,580 |
Effect of dilutive securities (in shares) | 0 | 1,111,713 | 0 | 0 |
Diluted weighted average number of shares outstanding (in shares) | 44,212,751 | 45,075,888 | 44,177,648 | 43,955,580 |
Earnings (loss) per share: | ||||
Basic loss per share (USD per share) | $ (0.30) | $ 0.01 | $ (0.44) | $ (0.03) |
Diluted loss per share (USD per share) | $ (0.30) | $ 0.01 | $ (0.44) | $ (0.03) |
Anti-dilutive securities | ||||
Antidilutive securities excluded from computation of earnings per share | 4,142,754 | 1,297,255 | 3,309,278 | 3,229,030 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease assets, net | $ 209,445 | $ 209,717 |
Finance lease assets, net | 3,086 | 771 |
Total leased assets | 212,531 | 210,488 |
Liabilities | ||
Current operating lease liabilities | 26,144 | 22,775 |
Current portion of finance lease liabilities | 998 | 510 |
Long-term operating lease liabilities, net | 229,196 | 225,014 |
Long-term finance lease liabilities | 2,127 | 281 |
Total lease liabilities | $ 258,465 | $ 248,580 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 02, 2019 | Jun. 30, 2020 | Jul. 02, 2019 | |
Leases [Abstract] | ||||
Deferred rent for lease amendments due to COVID-19 pandemic | $ 4 | |||
Sublease income | $ 0.1 | $ 0.1 | $ 0.5 | $ 0.2 |
Asset impairment charge for certain operating leases | $ 0.3 |
Leases - Supplemental Disclours
Leases - Supplemental Disclourses of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 02, 2019 | Jun. 30, 2020 | Jul. 02, 2019 | |
Leases [Abstract] | ||||
Cash paid for operating lease liabilities | $ 6,066 | $ 10,813 | $ 13,574 | $ 21,506 |
Cash paid for finance lease liabilities | 270 | 160 | 452 | 377 |
Cash paid for lease liabilities | 6,336 | 10,973 | 14,026 | 21,883 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 4,557 | 2,049 | 10,281 | 5,210 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 1,238 | 179 | 2,842 | 229 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 5,795 | $ 2,228 | $ 13,123 | $ 5,439 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Operating Leases | |
Remainder of 2020 | $ 22,747 |
2021 | 44,433 |
2022 | 43,604 |
2023 | 42,514 |
2024 | 40,982 |
Thereafter | 170,200 |
Total lease payments | 364,480 |
Less: Imputed interest | 109,140 |
Present value of lease liabilities | 255,340 |
Finance Leases | |
Remainder of 2020 | 599 |
2021 | 978 |
2022 | 836 |
2023 | 682 |
2024 | 218 |
Thereafter | 37 |
Total lease payments | 3,350 |
Less: Imputed interest | 225 |
Present value of lease liabilities | 3,125 |
Total | |
Remainder of 2020 | 23,346 |
2021 | 45,411 |
2022 | 44,440 |
2023 | 43,196 |
2024 | 41,200 |
Thereafter | 170,237 |
Total lease payments | 367,830 |
Less: Imputed interest | 109,365 |
Present value of lease liabilities | $ 258,465 |
Supplemental Disclosures to C_3
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jul. 02, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid (net of amounts capitalized) | $ 1,666 | $ 1,382 |
Income taxes paid | 25 | 6 |
Purchases of property and equipment accrued in accounts payable | $ 1,793 | $ 2,392 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 02, 2019 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Expected unredeemed percent | 9.00% | ||
Estimated redemption period | 24 months | ||
Gift card liability, current | $ 1,900 | $ 2,398 | |
Revenue recognized | $ 2,100 | $ 3,200 | |
Period in which initial fees received from franchisees will be recognized as revenue | 20 years | ||
Deferred revenue | $ 1,690 | 555 | |
Accrued Expenses and Other Current Liabilities | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Gift card liability, current | 1,900 | 2,400 | |
Other Long-term Liabilities | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Gift card liability, non-current | $ 600 | $ 900 |