Noodles & Company (NDLS) 10-Q 29 Oct 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 29, 2020	Oct. 26, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 29, 2020
Document Transition Report	false
Entity File Number	001-35987
Entity Registrant Name	NOODLES & COMPANY
Entity Central Index Key	0001275158
Amendment Flag	false
Current Fiscal Year End Date	--12-29
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
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		44,371,985

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 8,621	$ 10,459
Accounts receivable	3,366	3,503
Inventories	9,680	9,871
Prepaid expenses and other assets	3,952	5,386
Income tax receivable	76	103
Total current assets	25,695	29,322
Property and equipment, net	123,422	128,867
Operating lease assets, net	202,993	209,717
Goodwill	7,154	7,154
Intangibles, net	840	883
Other assets, net	3,066	2,576
Total long-term assets	337,475	349,197
Total assets	363,170	378,519
Current liabilities:
Accounts payable	13,138	9,351
Accrued payroll and benefits	8,369	13,479
Accrued expenses and other current liabilities	13,142	11,679
Current operating lease liabilities	25,357	22,775
Current portion of long-term debt	938	750
Total current liabilities	60,944	58,034
Long-term debt, net	41,213	40,497
Long-term operating lease liabilities, net	219,473	225,014
Deferred tax liabilities, net	272	200
Other long-term liabilities	8,406	4,203
Total liabilities	330,308	327,948
Stockholders’ equity:
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of September 29, 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 September 29, 2020 and December 31, 2019; 46,795,534 issued and 44,371,663 outstanding as of September 29, 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 September 29, 2020 and December 31, 2019	(35,000)	(35,000)
Additional paid-in capital	202,314	200,585
Accumulated deficit	(134,920)	(115,480)
Total stockholders’ equity	32,862	50,571
Total liabilities and stockholders’ equity	$ 363,170	$ 378,519

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 29, 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	46,795,534	46,557,934
Common stock, shares, outstanding	44,371,663	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		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Revenue:
Total revenue	$ 105,982	$ 118,304	$ 286,487	$ 348,540
Restaurant operating costs (exclusive of depreciation and amortization shown):
Other restaurant operating costs	19,383	17,161	51,861	50,475
General and administrative	10,827	10,436	31,415	32,424
Depreciation and amortization	5,541	5,458	16,273	16,626
Pre-opening	239	266	383	331
Restaurant impairments, closure costs and asset disposals	369	336	3,983	3,640
Total costs and expenses	105,260	113,260	303,144	343,348
Income (loss) from operations	722	5,044	(16,657)	5,192
Interest expense, net	822	737	2,710	2,298
(Loss) income before taxes	(100)	4,307	(19,367)	2,894
Provision for income taxes	27	64	73	64
Net (loss) income and comprehensive (loss) income	$ (127)	$ 4,243	$ (19,440)	$ 2,830
Earnings Per Share [Abstract]
Basic (USD per share)	$ 0	$ 0.10	$ (0.44)	$ 0.06
Diluted (USD per share)	$ 0	$ 0.09	$ (0.44)	$ 0.06
Weighted average shares of Class A and Class B common stock outstanding, combined:
Basic (in shares)	44,358,763	43,990,049	44,238,400	44,007,345
Diluted (in shares)	44,358,763	44,899,176	44,238,400	45,078,539
Restaurant revenue
Revenue:
Total revenue	$ 104,413	$ 116,759	$ 283,150	$ 344,382
Restaurant operating costs (exclusive of depreciation and amortization shown):
Restaurant operating costs	25,900	29,544	71,124	89,083
Franchising royalties and fees, and other
Revenue:
Total revenue	1,569	1,545	3,337	4,158
Labor
Restaurant operating costs (exclusive of depreciation and amortization shown):
Restaurant operating costs	31,264	37,951	92,632	113,920
Occupancy
Restaurant operating costs (exclusive of depreciation and amortization shown):
Restaurant operating costs	$ 11,737	$ 12,108	$ 35,473	$ 36,849

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]			192,683
Stock plan transactions and other		(284)		$ 1	[1]		(285)
Stock-based compensation expense		1,811					1,811
Net income (loss)		2,830						2,830
Ending balance (in shares) at Oct. 01, 2019				46,545,992	[1]	2,423,871
Ending balance at Oct. 01, 2019		51,046		$ 465	[1]	$ (35,000)	199,878	(114,297)
Beginning balance (in shares) at Jul. 02, 2019				46,508,586		2,423,871
Beginning balance at Jul. 02, 2019		46,903		$ 465		$ (35,000)	199,978	(118,540)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock plan transactions and other (in shares)				37,406
Stock plan transactions and other		(49)		$ 0			(49)
Stock-based compensation expense		(51)					(51)
Net income (loss)		4,243						4,243
Ending balance (in shares) at Oct. 01, 2019				46,545,992	[1]	2,423,871
Ending balance at Oct. 01, 2019		51,046		$ 465	[1]	$ (35,000)	199,878	(114,297)
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]			237,600
Stock plan transactions and other		(223)		$ 2	[1]		(225)
Stock-based compensation expense		1,954					1,954
Net income (loss)		(19,440)						(19,440)
Ending balance (in shares) at Sep. 29, 2020				46,795,534	[1]	2,423,871
Ending balance at Sep. 29, 2020		32,862		$ 468	[1]	$ (35,000)	202,314	(134,920)
Beginning balance (in shares) at Jun. 30, 2020				46,778,682		2,423,871
Beginning balance at Jun. 30, 2020		32,276		$ 468		$ (35,000)	201,601	(134,793)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock plan transactions and other (in shares)				16,852
Stock plan transactions and other		49		$ 0			49
Stock-based compensation expense		664					664
Net income (loss)		(127)						(127)
Ending balance (in shares) at Sep. 29, 2020				46,795,534	[1]	2,423,871
Ending balance at Sep. 29, 2020		$ 32,862		$ 468	[1]	$ (35,000)	$ 202,314	$ (134,920)
[1]	Unless otherwise noted, activity relates to Class A common stock.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019
Operating activities
Net (loss) income	$ (19,440)	$ 2,830
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	16,273	16,626
Deferred income taxes	72	64
Restaurant impairments, closure costs and asset disposals	3,034	3,647
Amortization of debt issuance costs	260	374
Stock-based compensation	1,904	1,780
Changes in operating assets and liabilities:
Accounts receivable	230	122
Inventories	75	(349)
Prepaid expenses and other assets	(802)	(1,062)
Accounts payable	3,505	(864)
Income taxes	27	(6)
Operating lease assets and liabilities	4,034	(1,749)
Accrued expenses and other liabilities	(858)	(5,144)
Net cash provided by operating activities	8,314	16,269
Investing activities
Purchases of property and equipment	(9,887)	(13,788)
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	(9,887)	(14,823)
Financing activities
Proceeds from issuance of long-term debt	55,500	0
Payments on long-term debt	(54,125)	(2,188)
Payments on finance leases	(686)	(543)
Debt issuance costs	(731)	0
Stock plan transactions and tax withholding on share-based compensation awards	(223)	(284)
Net cash used in financing activities	(265)	(3,015)
Net decrease in cash and cash equivalents	(1,838)	(1,569)
Cash and cash equivalents
Beginning of period	10,459	4,655
End of period	$ 8,621	$ 3,086

Business Summary and Basis of P

Business Summary and Basis of Presentation	9 Months Ended
	Sep. 29, 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 September 29, 2020, the Company had 454 restaurants system-wide in 29 states , comprised of 378 company-owned restaurants and 76 franchise re staurants. 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. Certain prior period balances within Note 7, Restaurant Impairments, Closure Costs and Asset Disposals have been reclassified to conform to the current year presentation. Such reclassifications had no effect on the Company's net income, earnings per share or accumulated deficit previously reported. 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 September 29, 2020 is referred to as the third quarter of 2020, and the fiscal quarter ended October 1, 2019 is referred to as the third quarter of 2019. Risks and Uncertainties We are subject to risks and uncertainties as a result of the ongoing COVID-19 pandemi c. The extent of the future 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, several industries 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 do not believe that there will be a material impact of adopting the new guidance on 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	9 Months Ended
	Sep. 29, 2020
Supplemental Financial Information [Abstract]
Supplemental Financial Information	Supplemental Financial Information Accounts receivable consist of the following (in thousands): September 29, December 31, Delivery program receivables $ 1,784 $ 636 Insurance receivable 157 744 Vendor rebate receivables 611 788 Franchise receivables 517 527 Other receivables 297 808 $ 3,366 $ 3,503 Prepaid expenses and other assets consist of the following (in thousands): September 29, December 31, Prepaid insurance $ 1,189 $ 724 Prepaid occupancy related costs 863 834 Other prepaid expenses 1,861 2,075 Other current assets (1) 39 1,753 $ 3,952 $ 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): September 29, December 31, Leasehold improvements $ 199,649 $ 200,580 Furniture, fixtures and equipment 125,779 122,752 Construction in progress 6,403 2,890 331,831 326,222 Accumulated depreciation and amortization (208,409) (197,355) Property and equipment, net $ 123,422 $ 128,867 Accrued payroll and benefits consist of the following (in thousands): September 29, December 31, Accrued payroll and related liabilities $ 3,248 $ 6,364 Accrued bonus 1,455 3,505 Insurance liabilities 3,666 3,610 $ 8,369 $ 13,479 Accrued expenses and other current liabilities consist of the following (in thousands): September 29, December 31, Gift card liability $ 1,862 $ 2,398 Occupancy related 1,581 1,458 Utilities 1,212 1,379 Deferred revenue 2,046 555 Current portion of finance lease liability 1,059 510 Other accrued expenses 5,382 5,379 Accrued expenses and other current liabilities $ 13,142 $ 11,679

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 29, 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 consisted of a term loan facility in an aggregate principal amount of $25.0 million and a revolving credit facility of $65.0 million, which included a letter of credit subfacility in the amount of $15.0 million and a swingline subfacility in the amount of $10.0 million. 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 September 29, 2020, the Company had $44.0 million of indebtedness (excluding $1.8 million of unamortized debt issuance costs) and $3.2 million of letters of credit outstanding under the Second Amended Credit Facility. As o f September 29, 2020, the Company had cash on hand of $8.6 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, $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 September 29, 2020 are as follows (in thousands): Year 1 $ 938 Year 2 1,500 Year 3 2,125 Year 4 2,500 Year 5 36,930 Total $ 43,993 The Company’s outstanding indebtedness bore interest at rates between 3.07% to 6.25% during the first three quarters of 2020.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 29, 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.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 29, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe following table presents the Company’s provision for income taxes (in thousands): Fiscal Quarter Ended Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Provision for income taxes $ 27 $ 64 $ 73 $ 64 Effective tax rate (27.0) % 1.5 % (0.4) % 2.2 % The effective tax rate for the third quarter of 2020 and first three quarters of 2020 reflects 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	9 Months Ended
	Sep. 29, 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 September 29, 2020, approximately 2.9 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 Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Stock-based compensation expense $ 708 $ (61) $ 1,960 $ 1,820 Capitalized stock-based compensation expense $ 12 $ 11 $ 50 $ 32

Restaurant Impairments, Closure

Restaurant Impairments, Closure Costs and Asset Disposals	9 Months Ended
	Sep. 29, 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 Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Restaurant impairments (1) $ 113 $ 89 $ 2,375 $ 2,554 Closure costs (1) (168) (809) 345 (675) Loss on disposal of assets and other 424 1,056 1,263 1,761 $ 369 $ 336 $ 3,983 $ 3,640 _____________________________ (1) Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed. There were no restaurant impairments during the third quarters of 2020 and 2019. During the first three quarters of 2020, five restaurants were impaired compared to two restaurant impairments in the first three quarters of 2019. 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 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 the third quarter and first three quarters of 2020 and 2019 include ongoing costs related to restaurants closed in previous years as well as three company-owned restaurants closed during the third quarter of 2020 that were near the end of the lease term. In addition, closure costs were offset by gains resulting from adjustments to liabilities as lease terminations occur. These gains included a total of $0.6 million in the third quarter and first three quarters of 2020, and $0.8 million and $0.7 million during the third quarter and first three quarters of 2019, respectively. Loss on disposal of assets and other includes expenses recognized during the first three quarters of 2020 and 2019 related to the divestiture of company-owned restaurants to a franchisee.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 29, 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 Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Net (loss) income $ (127) $ 4,243 $ (19,440) $ 2,830 Shares: Basic weighted average shares outstanding 44,358,763 43,990,049 44,238,400 44,007,345 Effect of dilutive securities — 909,127 — 1,071,194 Diluted weighted average shares outstanding 44,358,763 44,899,176 44,238,400 45,078,539 (Loss) earnings per share: Basic (loss) earnings per share $ — $ 0.10 $ (0.44) $ 0.06 Diluted (loss) earnings per share $ — $ 0.09 $ (0.44) $ 0.06 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 3,107,448 and 1,748,444 for the third quarters of 2020 and 2019, respectively, and totaled 3,251,799 and 1,490,202 for the first three quarters of 2020 and 2019, respectively.

Leases

Leases	9 Months Ended
	Sep. 29, 2020
Leases [Abstract]
Leases	LeasesAs discussed in Note 1, Business Summary and Basis of Presentation, the onset of 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 and as of September 29, 2020, over 90% of our restaurant dining rooms are open. During the second and third quarters 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 September 29, 2020 was $4.2 million. Further, for certain of our restaurants, the COVID-19 pandemic has had an impact to the underlying asset values. In the second quarter of 2020, we recorded right-of-use asset impairment charges of $0.3 million to reduce the carrying value of certain operating lease assets to their respective estimated fair value. There was no impairment during the third quarter of 2020. Supplemental balance sheet information related to leases is as follows (in thousands): Classification September 29, December 31, Assets Operating Operating lease assets, net $ 202,993 $ 209,717 Finance Finance lease assets, net (1) 3,308 771 Total leased assets $ 206,301 $ 210,488 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 25,357 $ 22,775 Finance Current finance lease liabilities (2) 1,059 510 Long-term lease liabilities Operating Long-term operating lease liabilities 219,473 225,014 Finance Long-term finance lease liabilities (2) 2,309 281 Total lease liabilities $ 248,198 $ 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 $0.2 million for both the third quarter of 2020 and 2019, and $0.7 million and $0.4 million for the first three quarters of 2020 and 2019, respectively. Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Cash paid for lease liabilities: Operating leases $ 14,784 $ 10,795 $ 28,358 $ 32,301 Finance leases 324 223 776 600 $ 15,108 $ 11,018 $ 29,134 $ 32,901 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 108 $ 2,646 $ 10,388 $ 7,856 Finance leases 545 — 3,387 229 $ 653 $ 2,646 $ 13,775 $ 8,085
Leases	LeasesAs discussed in Note 1, Business Summary and Basis of Presentation, the onset of 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 and as of September 29, 2020, over 90% of our restaurant dining rooms are open. During the second and third quarters 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 September 29, 2020 was $4.2 million. Further, for certain of our restaurants, the COVID-19 pandemic has had an impact to the underlying asset values. In the second quarter of 2020, we recorded right-of-use asset impairment charges of $0.3 million to reduce the carrying value of certain operating lease assets to their respective estimated fair value. There was no impairment during the third quarter of 2020. Supplemental balance sheet information related to leases is as follows (in thousands): Classification September 29, December 31, Assets Operating Operating lease assets, net $ 202,993 $ 209,717 Finance Finance lease assets, net (1) 3,308 771 Total leased assets $ 206,301 $ 210,488 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 25,357 $ 22,775 Finance Current finance lease liabilities (2) 1,059 510 Long-term lease liabilities Operating Long-term operating lease liabilities 219,473 225,014 Finance Long-term finance lease liabilities (2) 2,309 281 Total lease liabilities $ 248,198 $ 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 $0.2 million for both the third quarter of 2020 and 2019, and $0.7 million and $0.4 million for the first three quarters of 2020 and 2019, respectively. Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Cash paid for lease liabilities: Operating leases $ 14,784 $ 10,795 $ 28,358 $ 32,301 Finance leases 324 223 776 600 $ 15,108 $ 11,018 $ 29,134 $ 32,901 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 108 $ 2,646 $ 10,388 $ 7,856 Finance leases 545 — 3,387 229 $ 653 $ 2,646 $ 13,775 $ 8,085

Supplemental Disclosures to Con

Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows	9 Months Ended
	Sep. 29, 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 three quarters ended September 29, 2020 and October 1, 2019 (in thousands): September 29, October 1, Interest paid (net of amounts capitalized) $ 1,902 $ 1,972 Income taxes (refunded) paid (78) 6 Purchases of property and equipment accrued in accounts payable 2,818 2,538

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 29, 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 tax 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 September 29, 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, $0.5 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 $2.8 million and $4.1 million for the first three 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 of 2020, we resumed 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 The Company operates 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 September 29, 2020 and December 31, 2019, the deferred revenue related to the rewards was $2.0 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	9 Months Ended
	Sep. 29, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesIn 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 September 29, 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)	9 Months Ended
	Sep. 29, 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. Certain prior period balances within Note 7, Restaurant Impairments, Closure Costs and Asset Disposals have been reclassified to conform to the current year presentation. Such reclassifications had no effect on the Company's net income, earnings per share or accumulated deficit previously reported.
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 September 29, 2020 is referred to as the third quarter of 2020, and the fiscal quarter ended October 1, 2019 is referred to as the third 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 do not believe that there will be a material impact of adopting the new guidance on 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)	9 Months Ended
	Sep. 29, 2020
Supplemental Financial Information [Abstract]
Schedule of Accounts Receivable	Accounts receivable consist of the following (in thousands): September 29, December 31, Delivery program receivables $ 1,784 $ 636 Insurance receivable 157 744 Vendor rebate receivables 611 788 Franchise receivables 517 527 Other receivables 297 808 $ 3,366 $ 3,503
Schedule of Prepaid Expenses and Other Assets	Prepaid expenses and other assets consist of the following (in thousands): September 29, December 31, Prepaid insurance $ 1,189 $ 724 Prepaid occupancy related costs 863 834 Other prepaid expenses 1,861 2,075 Other current assets (1) 39 1,753 $ 3,952 $ 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): September 29, December 31, Leasehold improvements $ 199,649 $ 200,580 Furniture, fixtures and equipment 125,779 122,752 Construction in progress 6,403 2,890 331,831 326,222 Accumulated depreciation and amortization (208,409) (197,355) Property and equipment, net $ 123,422 $ 128,867
Schedule of Accrued Payroll, Benefits, Expenses and Other Current Liabilities	Accrued payroll and benefits consist of the following (in thousands): September 29, December 31, Accrued payroll and related liabilities $ 3,248 $ 6,364 Accrued bonus 1,455 3,505 Insurance liabilities 3,666 3,610 $ 8,369 $ 13,479 Accrued expenses and other current liabilities consist of the following (in thousands): September 29, December 31, Gift card liability $ 1,862 $ 2,398 Occupancy related 1,581 1,458 Utilities 1,212 1,379 Deferred revenue 2,046 555 Current portion of finance lease liability 1,059 510 Other accrued expenses 5,382 5,379 Accrued expenses and other current liabilities $ 13,142 $ 11,679

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 29, 2020
Debt Disclosure [Abstract]
Schedule of Aggregate Maturities for Debt Outstanding	Aggregate maturities for debt outstanding as of September 29, 2020 are as follows (in thousands): Year 1 $ 938 Year 2 1,500 Year 3 2,125 Year 4 2,500 Year 5 36,930 Total $ 43,993

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 29, 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 Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Provision for income taxes $ 27 $ 64 $ 73 $ 64 Effective tax rate (27.0) % 1.5 % (0.4) % 2.2 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 29, 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 Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Stock-based compensation expense $ 708 $ (61) $ 1,960 $ 1,820 Capitalized stock-based compensation expense $ 12 $ 11 $ 50 $ 32

Restaurant Impairments, Closu_2

Restaurant Impairments, Closure Costs and Asset Disposals (Tables)	9 Months Ended
	Sep. 29, 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 Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Restaurant impairments (1) $ 113 $ 89 $ 2,375 $ 2,554 Closure costs (1) (168) (809) 345 (675) Loss on disposal of assets and other 424 1,056 1,263 1,761 $ 369 $ 336 $ 3,983 $ 3,640 _____________________________

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 29, 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 Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Net (loss) income $ (127) $ 4,243 $ (19,440) $ 2,830 Shares: Basic weighted average shares outstanding 44,358,763 43,990,049 44,238,400 44,007,345 Effect of dilutive securities — 909,127 — 1,071,194 Diluted weighted average shares outstanding 44,358,763 44,899,176 44,238,400 45,078,539 (Loss) earnings per share: Basic (loss) earnings per share $ — $ 0.10 $ (0.44) $ 0.06 Diluted (loss) earnings per share $ — $ 0.09 $ (0.44) $ 0.06

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 29, 2020
Leases [Abstract]
Schedule of Supplemental Lease Information	Supplemental balance sheet information related to leases is as follows (in thousands): Classification September 29, December 31, Assets Operating Operating lease assets, net $ 202,993 $ 209,717 Finance Finance lease assets, net (1) 3,308 771 Total leased assets $ 206,301 $ 210,488 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 25,357 $ 22,775 Finance Current finance lease liabilities (2) 1,059 510 Long-term lease liabilities Operating Long-term operating lease liabilities 219,473 225,014 Finance Long-term finance lease liabilities (2) 2,309 281 Total lease liabilities $ 248,198 $ 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. Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended Three Fiscal Quarters Ended September 29, October 1, September 29, October 1, Cash paid for lease liabilities: Operating leases $ 14,784 $ 10,795 $ 28,358 $ 32,301 Finance leases 324 223 776 600 $ 15,108 $ 11,018 $ 29,134 $ 32,901 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 108 $ 2,646 $ 10,388 $ 7,856 Finance leases 545 — 3,387 229 $ 653 $ 2,646 $ 13,775 $ 8,085

Supplemental Disclosures to C_2

Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Tables)	9 Months Ended
	Sep. 29, 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 three quarters ended September 29, 2020 and October 1, 2019 (in thousands): September 29, October 1, Interest paid (net of amounts capitalized) $ 1,902 $ 1,972 Income taxes (refunded) paid (78) 6 Purchases of property and equipment accrued in accounts payable 2,818 2,538

Business Summary and Basis of_3

Business Summary and Basis of Presentation (Details)	9 Months Ended
	Sep. 29, 2020statesegmentrestaurant
Franchisor Disclosure [Line Items]
Number of restaurants	454
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	378
Franchise
Franchisor Disclosure [Line Items]
Number of restaurants	76

Supplemental Financial Inform_3

Supplemental Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 3,366	$ 3,503
Delivery program receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	1,784	636
Insurance receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	157	744
Vendor rebate receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	611	788
Franchise receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	517	527
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 297	$ 808

Supplemental Financial Inform_4

Supplemental Financial Information - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Supplemental Financial Information [Abstract]
Prepaid insurance	$ 1,189	$ 724
Prepaid occupancy related costs	863	834
Other prepaid expenses	1,861	2,075
Other current assets	39	1,753
Prepaid expenses and other assets	$ 3,952	$ 5,386

Supplemental Financial Inform_5

Supplemental Financial Information - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 331,831	$ 326,222
Accumulated depreciation and amortization	(208,409)	(197,355)
Property and equipment, net	123,422	128,867
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	199,649	200,580
Furniture, Fixtures, and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	125,779	122,752
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 6,403	$ 2,890

Supplemental Financial Inform_6

Supplemental Financial Information - Accrued Payroll and Benefits (Details) - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Supplemental Financial Information [Abstract]
Accrued payroll and related liabilities	$ 3,248	$ 6,364
Accrued bonus	1,455	3,505
Insurance liabilities	3,666	3,610
Accrued payroll and benefits	$ 8,369	$ 13,479

Supplemental Financial Inform_7

Supplemental Financial Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Supplemental Financial Information [Abstract]
Gift card liability	$ 1,862	$ 2,398
Occupancy related	1,581	1,458
Utilities	1,212	1,379
Deferred revenue	2,046	555
Current portion of finance lease liability	1,059	510
Other accrued expenses	5,382	5,379
Accrued expenses and other current liabilities	$ 13,142	$ 11,679

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)	Nov. 20, 2019	Sep. 29, 2020	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021	Nov. 20, 2024	Sep. 30, 2021	Nov. 20, 2024	Jun. 16, 2020	Dec. 31, 2019	May 09, 2018
Line of Credit Facility [Line Items]
Indebtedness		$ 43,993,000
Unamortized debt issuance costs		1,800,000
Letters of credit outstanding		3,200,000
Cash on hand		$ 8,621,000								$ 10,459,000
Forecast
Line of Credit Facility [Line Items]
Quarterly principal payments			$ 531,250	$ 375,000	$ 187,500	$ 625,000
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 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 Letter of Credit Subfacility
Line of Credit Facility [Line Items]
Maximum borrowing capacity											$ 15,000,000

Long-Term Debt - Aggregate Matu

Long-Term Debt - Aggregate Maturities (Details) $ in Thousands	Sep. 29, 2020USD ($)
Aggregate Maturities for Debt Outstanding
Year 1	$ 938
Year 2	1,500
Year 3	2,125
Year 4	2,500
Year 5	36,930
Total	$ 43,993

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 27	$ 64	$ 73	$ 64
Effective tax rate	(27.00%)	1.50%	(0.40%)	2.20%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Share-based Payment Arrangement [Abstract]
Shares awards available to be granted (in shares)	2.9		2.9
Stock-based compensation expense	$ 708	$ (61)	$ 1,960	$ 1,820
Capitalized stock-based compensation expense	$ 12	$ 11	$ 50	$ 32

Restaurant Impairments, Closu_3

Restaurant Impairments, Closure Costs and Asset Disposals - Schedule of Impairments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Property, Plant and Equipment Impairment or Disposal [Abstract]
Restaurant impairments	$ 113	$ 89	$ 2,375	$ 2,554
Closure costs	(168)	(809)	345	(675)
Loss on disposal of assets and other	424	1,056	1,263	1,761
Restaurant impairments, closure costs and asset disposals	$ 369	$ 336	$ 3,983	$ 3,640

Restaurant Impairments, Closu_4

Restaurant Impairments, Closure Costs and Asset Disposals - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2020USD ($)restaurant	Oct. 01, 2019USD ($)restaurant	Sep. 29, 2020USD ($)restaurant	Oct. 01, 2019USD ($)restaurant
Property, Plant and Equipment Impairment or Disposal [Abstract]
Number of restaurants impaired	0	0	5	2
Number of restaurants closed that were near end of lease term	3
Offset adjustment to closure costs related to lease terminations | $	$ 0.6	$ 0.8	$ 0.6	$ 0.7

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Earnings Per Share [Abstract]
Net (loss) income	$ (127)	$ 4,243	$ (19,440)	$ 2,830
Shares:
Basic weighted average shares outstanding (in shares)	44,358,763	43,990,049	44,238,400	44,007,345
Effect of dilutive securities (in shares)	0	909,127	0	1,071,194
Diluted weighted average number of shares outstanding (in shares)	44,358,763	44,899,176	44,238,400	45,078,539
(Loss) earnings per share:
Basic loss per share (USD per share)	$ 0	$ 0.10	$ (0.44)	$ 0.06
Diluted loss per share (USD per share)	$ 0	$ 0.09	$ (0.44)	$ 0.06
Anti-dilutive securities
Antidilutive securities excluded from computation of earnings per share	3,107,448	1,748,444	3,251,799	1,490,202

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Assets
Operating lease assets, net	$ 202,993	$ 209,717
Finance lease assets, net	3,308	771
Total leased assets	206,301	210,488
Liabilities
Current operating lease liabilities	25,357	22,775
Current portion of finance lease liabilities	1,059	510
Long-term operating lease liabilities, net	219,473	225,014
Long-term finance lease liabilities	2,309	281
Total lease liabilities	$ 248,198	$ 248,580

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 29, 2020	Jun. 30, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Leases [Abstract]
Percentage of restaurant dining rooms open	90.00%			90.00%
Deferred rent for lease amendments due to COVID-19 pandemic				$ 4,200,000
Asset impairment charge for certain operating leases	$ 0	$ 300,000
Sublease income	$ 200,000		$ 200,000	$ 700,000	$ 400,000

Leases - Supplemental Disclours

Leases - Supplemental Disclourses of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Leases [Abstract]
Cash paid for operating lease liabilities	$ 14,784	$ 10,795	$ 28,358	$ 32,301
Cash paid for finance lease liabilities	324	223	776	600
Cash paid for lease liabilities	15,108	11,018	29,134	32,901
Right-of-use assets obtained in exchange for new operating lease liabilities	108	2,646	10,388	7,856
Right-of-use assets obtained in exchange for new finance lease liabilities	545	0	3,387	229
Right-of-use assets obtained in exchange for new lease liabilities	$ 653	$ 2,646	$ 13,775	$ 8,085

Supplemental Disclosures to C_3

Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019
Supplemental Cash Flow Elements [Abstract]
Interest paid (net of amounts capitalized)	$ 1,902	$ 1,972
Income taxes (refunded) paid	(78)	6
Purchases of property and equipment accrued in accounts payable	$ 2,818	$ 2,538

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2020	Oct. 01, 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	$ 1,862		$ 2,398
Revenue recognized	$ 2,800	$ 4,100
Period in which initial fees received from franchisees will be recognized as revenue	20 years
Deferred revenue	$ 2,046		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	$ 500		$ 900