Cover
Cover - shares | 3 Months Ended | |
Mar. 29, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 29, 2022 | |
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 | --01-03 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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, $0.01 par value per share | |
Trading Symbol | NDLS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,834,723 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 29, 2022 | Dec. 28, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,601 | $ 2,255 |
Accounts receivable | 4,425 | 3,958 |
Inventories | 9,719 | 9,404 |
Prepaid expenses and other assets | 3,779 | 6,837 |
Income tax receivable | 107 | 108 |
Total current assets | 19,631 | 22,562 |
Property and equipment, net | 122,320 | 119,276 |
Operating lease assets, net | 186,493 | 188,440 |
Goodwill | 7,154 | 7,154 |
Intangibles, net | 654 | 668 |
Other assets, net | 1,520 | 3,359 |
Total long-term assets | 318,141 | 318,897 |
Total assets | 337,772 | 341,459 |
Current liabilities: | ||
Accounts payable | 15,307 | 15,543 |
Accrued payroll and benefits | 11,130 | 18,600 |
Accrued expenses and other current liabilities | 12,209 | 13,791 |
Current operating lease liabilities | 27,149 | 26,617 |
Current portion of long-term debt | 1,813 | 2,031 |
Total current liabilities | 67,608 | 76,582 |
Long-term debt, net | 32,306 | 18,931 |
Long-term operating lease liabilities, net | 196,922 | 200,243 |
Deferred tax liabilities, net | 185 | 269 |
Other long-term liabilities | 8,706 | 7,801 |
Total liabilities | 305,727 | 303,826 |
Stockholders’ equity: | ||
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of March 29, 2022 and December 28, 2021; no shares issued or outstanding | 0 | 0 |
Common stock—$0.01 par value, 180,000,000 shares authorized as of March 29, 2022 and December 28, 2021; 48,258,594 issued and 45,834,723 outstanding as of March 29, 2022 and 48,125,151 issued and 45,701,280 outstanding as of December 28, 2021 | 483 | 481 |
Treasury stock, at cost, 2,423,871 shares as of March 29, 2022 and December 28, 2021 | (35,000) | (35,000) |
Additional paid-in capital | 208,065 | 207,226 |
Accumulated deficit | (141,503) | (135,074) |
Total stockholders’ equity | 32,045 | 37,633 |
Total liabilities and stockholders’ equity | $ 337,772 | $ 341,459 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 29, 2022 | Dec. 28, 2021 |
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 | 48,258,594 | 48,125,151 |
Common stock, shares, outstanding | 45,834,723 | 45,701,280 |
Treasury stock, shares | 2,423,871 | 2,423,871 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2022 | Mar. 30, 2021 | |
Revenue: | ||
Total revenue | $ 112,562 | $ 109,577 |
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||
Other restaurant operating costs | 21,866 | 20,205 |
General and administrative | 11,840 | 10,929 |
Depreciation and amortization | 5,721 | 5,587 |
Pre-opening | 408 | 58 |
Restaurant impairments, closure costs and asset disposals | 1,389 | 1,231 |
Total costs and expenses | 118,637 | 110,942 |
Loss from operations | (6,075) | (1,365) |
Interest expense, net | 437 | 622 |
Loss before taxes | (6,512) | (1,987) |
Benefit from income taxes | (83) | (10) |
Net loss | $ (6,429) | $ (1,977) |
Loss per Class A and Class B common stock, combined | ||
Basic (USD per share) | $ (0.14) | $ (0.04) |
Diluted (USD per share) | $ (0.14) | $ (0.04) |
Weighted average shares of Class A and Class B common stock outstanding, combined: | ||
Basic (in shares) | 45,726,500 | 45,098,028 |
Diluted (in shares) | 45,726,500 | 45,098,028 |
Restaurant revenue | ||
Revenue: | ||
Total revenue | $ 109,961 | $ 107,744 |
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||
Restaurant operating costs | 30,771 | 26,977 |
Franchising royalties and fees, and other | ||
Revenue: | ||
Total revenue | 2,601 | 1,833 |
Labor | ||
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||
Restaurant operating costs | 35,493 | 34,306 |
Occupancy | ||
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||
Restaurant operating costs | $ 11,149 | $ 11,649 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | ||
Beginning balance (in shares) at Dec. 29, 2020 | 46,807,587 | [1] | 2,423,871 | ||||
Beginning balance at Dec. 29, 2020 | $ 29,699 | $ 468 | [1] | $ (35,000) | $ 202,970 | $ (138,739) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
L Catterton warrants exercised (in shares) | [1] | 975,458 | |||||
L Catterton warrants exercised | 0 | $ 10 | [1] | (10) | |||
Stock plan transactions and other (in shares) | [1] | 107,443 | |||||
Stock plan transactions and other | (335) | $ 1 | [1] | (336) | |||
Stock-based compensation expense | 738 | 738 | |||||
Net income (loss) | (1,977) | (1,977) | |||||
Ending balance (in shares) at Mar. 30, 2021 | 47,890,488 | [1] | 2,423,871 | ||||
Ending balance at Mar. 30, 2021 | 28,125 | $ 479 | [1] | $ (35,000) | 203,362 | (140,716) | |
Beginning balance (in shares) at Dec. 28, 2021 | 48,125,151 | [1] | 2,423,871 | ||||
Beginning balance at Dec. 28, 2021 | 37,633 | $ 481 | [1] | $ (35,000) | 207,226 | (135,074) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock plan transactions and other (in shares) | [1] | 133,443 | |||||
Stock plan transactions and other | (299) | $ 2 | [1] | (301) | |||
Stock-based compensation expense | 1,140 | 1,140 | |||||
Net income (loss) | (6,429) | (6,429) | |||||
Ending balance (in shares) at Mar. 29, 2022 | 48,258,594 | [1] | 2,423,871 | ||||
Ending balance at Mar. 29, 2022 | $ 32,045 | $ 483 | [1] | $ (35,000) | $ 208,065 | $ (141,503) | |
[1] | Unless otherwise noted, activity relates to Class A common stock. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2022 | Mar. 30, 2021 | |
Operating activities | ||
Net loss | $ (6,429) | $ (1,977) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 5,721 | 5,587 |
Deferred income taxes | (84) | (10) |
Restaurant impairments, closure costs and asset disposals | 496 | 618 |
Amortization of debt issuance costs | 112 | 111 |
Stock-based compensation | 1,120 | 720 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (513) | 71 |
Inventories | (315) | 111 |
Prepaid expenses and other assets | 1,378 | (717) |
Accounts payable | (716) | 3,543 |
Income taxes | 1 | 0 |
Operating lease assets and liabilities | (826) | (1,412) |
Accrued expenses and other liabilities | (6,005) | (2,866) |
Net cash (used in) provided by operating activities | (6,060) | 3,779 |
Investing activities | ||
Purchases of property and equipment | (8,412) | (2,733) |
Proceeds from restaurant divestitures | 1,577 | 0 |
Net cash used in investing activities | (6,835) | (2,733) |
Financing activities | ||
Net borrowings from swing line loan | 3,195 | 0 |
Proceeds from borrowings on long-term debt | 10,600 | 0 |
Payments on long-term debt | (750) | (5,042) |
Payments on finance leases | (505) | (392) |
Stock plan transactions and tax withholding on share-based compensation awards | (299) | (335) |
Net cash provided by (used in) financing activities | 12,241 | (5,769) |
Net decrease in cash and cash equivalents | (654) | (4,723) |
Cash and cash equivalents | ||
Beginning of period | 2,255 | 7,840 |
End of period | $ 1,601 | $ 3,117 |
Business Summary and Basis of P
Business Summary and Basis of Presentation | 3 Months Ended |
Mar. 29, 2022 | |
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 March 29, 2022, the Company had 453 restaurants system-wide in 30 states, comprised of 360 company-owned restaurants and 93 franchise restaurants. 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 28, 2021 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 28, 2021. 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 2022, which ends on January 3, 2023 contains 53 weeks and fiscal year 2021, which ended on December 28, 2021, contained 52 weeks. The Company’s fiscal quarter that ended March 29, 2022 is referred to as the first quarter of 2022, and the fiscal quarter ended March 30, 2021 is referred to as the first quarter of 2021. Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 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, 202 2. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 29, 2022 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Accounts receivable consist of the following (in thousands): March 29, December 28, Delivery program receivables $ 1,812 $ 1,467 Vendor rebate receivables 943 695 Franchise receivables 772 644 Other receivables 898 1,152 Accounts receivable $ 4,425 $ 3,958 Prepaid expenses and other assets consist of the following (in thousands): March 29, December 28, Prepaid insurance $ 224 $ 853 Prepaid occupancy related costs 51 73 Current assets held for sale (1) — 3,514 Prepaid expenses 3,349 2,272 Other current assets 155 125 Prepaid expenses and other assets $ 3,779 $ 6,837 _____________________________ (1) Current assets held for sale as of December 28, 2021 included assets held in connection with the divestiture of 15 company-owned restaurants to a franchisee (“Warner Sale”) which closed in January 2022. Property and equipment, net, consists of the following (in thousands): March 29, December 28, Leasehold improvements $ 202,560 $ 197,722 Furniture, fixtures and equipment 143,023 140,698 Construction in progress 7,411 6,306 352,994 344,726 Accumulated depreciation and amortization (230,674) (225,450) Property and equipment, net $ 122,320 $ 119,276 Accrued payroll and benefits consist of the following (in thousands): March 29, December 28, Accrued payroll and related liabilities $ 6,990 $ 9,851 Accrued bonus 1,190 5,078 Insurance liabilities 2,950 3,671 Accrued payroll and benefits $ 11,130 $ 18,600 Accrued expenses and other current liabilities consist of the following (in thousands): March 29, December 28, Gift card liability $ 2,367 $ 2,850 Occupancy related 1,670 1,615 Utilities 1,181 1,302 Current portion of finance lease liability 2,029 1,956 Liabilities held for sale (1) — 1,671 Accrued interest 222 271 Insurance liabilities 358 393 Other restaurant expense accruals 1,322 995 Other corporate expense accruals 3,060 2,738 Accrued expenses and other current liabilities $ 12,209 $ 13,791 _____________________________ (1) Liabilities held for sale as of December 28, 2021 included liabilities held in connection with the Warner Sale which closed in January 2022. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 29, 2022 | |
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 Agreement (the “Amendment” and the 2018 Credit Facility, as amended, the “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 First Amended Credit Facility by entering into the Second Amendment to the Credit Agreement (the “Second Amendment” and the First Amended Credit Facility, as amended, 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, bore interest at LIBOR plus 3.25% per annum. Following the Amendment Period, borrowings bore interest at LIBOR plus a margin of 2.00% to 3.00% per annum, based upon the consolidated total lease-adjusted leverage ratio. Through the end of the first quarter of 2022, the Company continued to use LIBOR. 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 March 29, 2022, the Company had $35.3 million of indebtedness (excluding $1.2 million of unamortized debt issuance costs) and $3.2 million of l etters of credit outstanding under the Second Amended Credit Facility. As of March 29, 2022, the Company had cash on hand of $1.6 million. The term loan requires principal payments of $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 March 29, 2022 are as follows (in thousands): Year 1 $ 1,813 Year 2 2,313 Year 3 31,169 Total $ 35,295 The Company’s outstanding indebtedness bore interest at rates betw een 2.35% to 4.75% duri ng the first quarter of 2022. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 29, 2022 | |
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 | 3 Months Ended |
Mar. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the Company’s provision for income taxes (in thousands): Fiscal Quarter Ended March 29, March 30, Benefit from income taxes $ (83) $ (10) Effective tax rate 1.3 % 0.5 % The effective tax rate for the first quarter of 2022 and the first quarter of 2021 ref lects the impact of the previously recorded valuation allowance. For the remainder of fiscal 2022, 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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 29, 2022 | |
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 and incentive bonuses to employees, officers, non-employee directors and other service providers. As of March 29, 2022, approximate ly 2.5 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 March 29, March 30, Stock-based compensation expense $ 1,169 $ 802 Capitalized stock-based compensation expense $ 20 $ 18 |
Restaurant Impairments, Closure
Restaurant Impairments, Closure Costs and Asset Disposals | 3 Months Ended |
Mar. 29, 2022 | |
Discontinued Operations and Disposal Groups [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 March 29, March 30, Restaurant impairments (1) $ 106 $ 502 Closure costs (1) 389 305 Loss on disposal of assets and other 894 424 $ 1,389 $ 1,231 _____________________________ (1) Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed. The Company did not impair any restaurants in t he first quarter of 2022 and had one restaurant impairment in the first quarter of 2021. I mpairment 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 the Company has seen an improvement in sales, the Company is 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 and has been highly likely to continue to be harmful to the restaurant industry in general. Closure costs in the first quarter of 2022 include ongoing costs related to restaurants closed in previous years as well as two company-owned restaurant closures during the first quarter of 2022. Closure costs in the first quarter of 2021 include ongoing costs related to restaurants closed in previous years, as well as six company-owned restaurant closures during the first quarter of 2021 . Loss on disposal of assets and other for the first quarter of 2022 includes expenses related to the divestiture of company-owned restaurants related to the Warner Sale. Both periods include disposals of assets in the normal course of business. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 29, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per ShareBasic 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 March 29, March 30, Net loss $ (6,429) $ (1,977) Shares: Basic weighted average shares outstanding 45,726,500 45,098,028 Effect of dilutive securities — — Diluted weighted average shares outstanding 45,726,500 45,098,028 Loss per share: Basic loss per share $ (0.14) $ (0.04) Diluted loss per share $ (0.14) $ (0.04) 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 (loss) 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 per share because the effect of their inclusion would have been anti-dilutive totaled 1,018,962 and 769,732 for the first quarters of 2022 and 2021, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 29, 2022 | |
Leases [Abstract] | |
Leases | Leases Supplemental balance sheet information related to leases is as follows (in thousands): Classification March 29, December 28, Assets Operating Operating lease assets, net $ 186,493 $ 188,440 Finance Property and equipment 6,350 6,394 Total leased assets $ 192,843 $ 194,834 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 27,149 $ 26,617 Finance Accrued expenses and other current liabilities 2,029 1,956 Long-term lease liabilities Operating Long-term operating lease liabilities 196,922 200,243 Finance Other long-term liabilities 4,572 4,654 Total lease liabilities $ 230,672 $ 233,470 Sublease income recognized in the Condensed Consolidated Statements of Operations was $0.8 million and $0.5 million for the first quarter of 2022 and 2021, respectively. For certain of the Company’s restaurants, the COVID-19 pandemic has had an impact on the underlying asset values. In the first quarter of 2021, the Company recorded a right-of-use asset impairment charge for one restaurant to reduce the carrying value of operating lease assets to its respective estimated fair value. In the first quarters of 2021, we recorded an impairment charge of $0.3 million on the right-of-use assets of one restaurant that was impaired in the first quarter of 2021. There was no impairment to the Company’s right-of-use assets during the first quarter of 2022. Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended March 29, March 30, Cash paid for lease liabilities: Operating leases $ 10,444 $ 11,666 Finance leases 614 525 $ 11,058 $ 12,191 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 3,832 $ 573 Finance leases 722 651 $ 4,554 $ 1,224 |
Leases | Leases Supplemental balance sheet information related to leases is as follows (in thousands): Classification March 29, December 28, Assets Operating Operating lease assets, net $ 186,493 $ 188,440 Finance Property and equipment 6,350 6,394 Total leased assets $ 192,843 $ 194,834 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 27,149 $ 26,617 Finance Accrued expenses and other current liabilities 2,029 1,956 Long-term lease liabilities Operating Long-term operating lease liabilities 196,922 200,243 Finance Other long-term liabilities 4,572 4,654 Total lease liabilities $ 230,672 $ 233,470 Sublease income recognized in the Condensed Consolidated Statements of Operations was $0.8 million and $0.5 million for the first quarter of 2022 and 2021, respectively. For certain of the Company’s restaurants, the COVID-19 pandemic has had an impact on the underlying asset values. In the first quarter of 2021, the Company recorded a right-of-use asset impairment charge for one restaurant to reduce the carrying value of operating lease assets to its respective estimated fair value. In the first quarters of 2021, we recorded an impairment charge of $0.3 million on the right-of-use assets of one restaurant that was impaired in the first quarter of 2021. There was no impairment to the Company’s right-of-use assets during the first quarter of 2022. Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended March 29, March 30, Cash paid for lease liabilities: Operating leases $ 10,444 $ 11,666 Finance leases 614 525 $ 11,058 $ 12,191 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 3,832 $ 573 Finance leases 722 651 $ 4,554 $ 1,224 |
Supplemental Disclosures to Con
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows | 3 Months Ended |
Mar. 29, 2022 | |
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 first quarter ended March 29, 2022 and March 30, 2021 (in thousands): March 29, March 30, Interest paid (net of amounts capitalized) $ 245 $ 709 Income taxes paid (refunded) 1 — Purchases of property and equipment accrued in accounts payable 5,820 2,398 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 29, 2022 | |
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 March 29, 2022 and December 28, 2021, the current portion of the gift card liability, $2.4 million and $2.9 million, respectively, was included in accrued expenses and other current liabilities, and the long-term portion, $0.6 million and $0.6 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 $1.0 million and $1.1 million for the first quarters of 2022 and 2021, 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. Dev elopment 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 based upon the Company’s historical redemption patterns. Points generally expire after six months. Revenue is recognized in a future period when the reward points are redeemed. As of March 29, 2022 and December 28, 2021, the deferred revenue related to the rewards wa s $0.4 million and is included in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2022 | |
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 March 29, 2022. 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) | 3 Months Ended |
Mar. 29, 2022 | |
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 28, 2021 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 |
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 2022, which ends on January 3, 2023 contains 53 weeks and fiscal year 2021, which ended on December 28, 2021, contained 52 weeks. The Company’s fiscal quarter that ended March 29, 2022 is referred to as the first quarter of 2022, and the fiscal quarter ended March 30, 2021 is referred to as the first quarter of 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 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, 202 2. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 29, 2022 | |
Supplemental Financial Information [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following (in thousands): March 29, December 28, Delivery program receivables $ 1,812 $ 1,467 Vendor rebate receivables 943 695 Franchise receivables 772 644 Other receivables 898 1,152 Accounts receivable $ 4,425 $ 3,958 |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following (in thousands): March 29, December 28, Prepaid insurance $ 224 $ 853 Prepaid occupancy related costs 51 73 Current assets held for sale (1) — 3,514 Prepaid expenses 3,349 2,272 Other current assets 155 125 Prepaid expenses and other assets $ 3,779 $ 6,837 _____________________________ (1) Current assets held for sale as of December 28, 2021 included assets held in connection with the divestiture of 15 company-owned restaurants to a franchisee (“Warner Sale”) which closed in January 2022. |
Schedule of Property and Equipment | Property and equipment, net, consists of the following (in thousands): March 29, December 28, Leasehold improvements $ 202,560 $ 197,722 Furniture, fixtures and equipment 143,023 140,698 Construction in progress 7,411 6,306 352,994 344,726 Accumulated depreciation and amortization (230,674) (225,450) Property and equipment, net $ 122,320 $ 119,276 |
Schedule of Accrued Payroll and Benefits | Accrued payroll and benefits consist of the following (in thousands): March 29, December 28, Accrued payroll and related liabilities $ 6,990 $ 9,851 Accrued bonus 1,190 5,078 Insurance liabilities 2,950 3,671 Accrued payroll and benefits $ 11,130 $ 18,600 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): March 29, December 28, Gift card liability $ 2,367 $ 2,850 Occupancy related 1,670 1,615 Utilities 1,181 1,302 Current portion of finance lease liability 2,029 1,956 Liabilities held for sale (1) — 1,671 Accrued interest 222 271 Insurance liabilities 358 393 Other restaurant expense accruals 1,322 995 Other corporate expense accruals 3,060 2,738 Accrued expenses and other current liabilities $ 12,209 $ 13,791 _____________________________ (1) Liabilities held for sale as of December 28, 2021 included liabilities held in connection with the Warner Sale which closed in January 2022. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 29, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Maturities for Debt Outstanding | Aggregate maturities for debt outstanding as of March 29, 2022 are as follows (in thousands): Year 1 $ 1,813 Year 2 2,313 Year 3 31,169 Total $ 35,295 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 29, 2022 | |
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 March 29, March 30, Benefit from income taxes $ (83) $ (10) Effective tax rate 1.3 % 0.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 29, 2022 | |
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 March 29, March 30, Stock-based compensation expense $ 1,169 $ 802 Capitalized stock-based compensation expense $ 20 $ 18 |
Restaurant Impairments, Closu_2
Restaurant Impairments, Closure Costs and Asset Disposals (Tables) | 3 Months Ended |
Mar. 29, 2022 | |
Discontinued Operations and Disposal Groups [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 March 29, March 30, Restaurant impairments (1) $ 106 $ 502 Closure costs (1) 389 305 Loss on disposal of assets and other 894 424 $ 1,389 $ 1,231 _____________________________ |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 29, 2022 | |
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 March 29, March 30, Net loss $ (6,429) $ (1,977) Shares: Basic weighted average shares outstanding 45,726,500 45,098,028 Effect of dilutive securities — — Diluted weighted average shares outstanding 45,726,500 45,098,028 Loss per share: Basic loss per share $ (0.14) $ (0.04) Diluted loss per share $ (0.14) $ (0.04) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 29, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Lease Information | Supplemental balance sheet information related to leases is as follows (in thousands): Classification March 29, December 28, Assets Operating Operating lease assets, net $ 186,493 $ 188,440 Finance Property and equipment 6,350 6,394 Total leased assets $ 192,843 $ 194,834 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 27,149 $ 26,617 Finance Accrued expenses and other current liabilities 2,029 1,956 Long-term lease liabilities Operating Long-term operating lease liabilities 196,922 200,243 Finance Other long-term liabilities 4,572 4,654 Total lease liabilities $ 230,672 $ 233,470 Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended March 29, March 30, Cash paid for lease liabilities: Operating leases $ 10,444 $ 11,666 Finance leases 614 525 $ 11,058 $ 12,191 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 3,832 $ 573 Finance leases 722 651 $ 4,554 $ 1,224 |
Supplemental Disclosures to C_2
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Tables) | 3 Months Ended |
Mar. 29, 2022 | |
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 first quarter ended March 29, 2022 and March 30, 2021 (in thousands): March 29, March 30, Interest paid (net of amounts capitalized) $ 245 $ 709 Income taxes paid (refunded) 1 — Purchases of property and equipment accrued in accounts payable 5,820 2,398 |
Business Summary and Basis of_3
Business Summary and Basis of Presentation (Details) | 3 Months Ended |
Mar. 29, 2022restaurantsegmentstate | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 453 |
Number of states with operations | state | 30 |
Number of operating segments | segment | 1 |
Number of reportable segments | segment | 1 |
Company-owned | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 360 |
Franchise | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 93 |
Supplemental Financial Inform_3
Supplemental Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 29, 2022 | Dec. 28, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 4,425 | $ 3,958 |
Delivery program receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 1,812 | 1,467 |
Vendor rebate receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 943 | 695 |
Franchise receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 772 | 644 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 898 | $ 1,152 |
Supplemental Financial Inform_4
Supplemental Financial Information - Prepaid Expenses and Other Assets (Details) $ in Thousands | 1 Months Ended | ||
Jan. 31, 2022restaurant | Mar. 29, 2022USD ($) | Dec. 28, 2021USD ($) | |
Supplemental Financial Information [Abstract] | |||
Prepaid insurance | $ 224 | $ 853 | |
Prepaid occupancy related costs | 51 | 73 | |
Current assets held for sale | 0 | 3,514 | |
Prepaid expenses | 3,349 | 2,272 | |
Other current assets | 155 | 125 | |
Prepaid expenses and other assets | $ 3,779 | $ 6,837 | |
Number of restaurants divested | restaurant | 15 |
Supplemental Financial Inform_5
Supplemental Financial Information - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 29, 2022 | Dec. 28, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 352,994 | $ 344,726 |
Accumulated depreciation and amortization | (230,674) | (225,450) |
Property and equipment, net | 122,320 | 119,276 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 202,560 | 197,722 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 143,023 | 140,698 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,411 | $ 6,306 |
Supplemental Financial Inform_6
Supplemental Financial Information - Accrued Payroll and Benefits (Details) - USD ($) $ in Thousands | Mar. 29, 2022 | Dec. 28, 2021 |
Supplemental Financial Information [Abstract] | ||
Accrued payroll and related liabilities | $ 6,990 | $ 9,851 |
Accrued bonus | 1,190 | 5,078 |
Insurance liabilities | 2,950 | 3,671 |
Accrued payroll and benefits | $ 11,130 | $ 18,600 |
Supplemental Financial Inform_7
Supplemental Financial Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 29, 2022 | Dec. 28, 2021 |
Supplemental Financial Information [Abstract] | ||
Gift card liability | $ 2,367 | $ 2,850 |
Occupancy related | 1,670 | 1,615 |
Utilities | 1,181 | 1,302 |
Current portion of finance lease liability | 2,029 | 1,956 |
Liabilities held for sale | 0 | 1,671 |
Accrued interest | 222 | 271 |
Insurance liabilities | 358 | 393 |
Other restaurant expense accruals | 1,322 | 995 |
Other corporate expense accruals | 3,060 | 2,738 |
Accrued expenses and other current liabilities | $ 12,209 | $ 13,791 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Nov. 20, 2019 | Mar. 29, 2022 | Sep. 27, 2022 | Oct. 03, 2023 | Sep. 27, 2022 | Nov. 20, 2024 | Sep. 28, 2021 | Nov. 20, 2024 | Dec. 28, 2021 | Jun. 16, 2020 | May 09, 2018 |
Line of Credit Facility [Line Items] | |||||||||||
Indebtedness | $ 35,295,000 | ||||||||||
Unamortized debt issuance costs | 1,200,000 | ||||||||||
Letters of credit outstanding | 3,200,000 | ||||||||||
Cash on hand | $ 1,601,000 | $ 2,255,000 | |||||||||
Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate during period | 2.35% | ||||||||||
Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate during period | 4.75% | ||||||||||
2018 Credit Facility | Term loan | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Aggregate principal amount | $ 25,000,000 | ||||||||||
2018 Credit Facility | Term loan | Forecast | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Quarterly principal payments | $ 375,000 | $ 531,250 | $ 625,000 | ||||||||
Frequency of periodic payment | quarter | ||||||||||
2018 Credit Facility | Revolving credit facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 65,000,000 | ||||||||||
2018 Credit Facility | Letter of credit subfacility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 15,000,000 | ||||||||||
2018 Credit Facility | Swingline subfacility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||||||
First Amended Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Limit on capital expenditures in 2020 | $ 37,000,000 | ||||||||||
Limit on capital expenditures in 2021 | 45,000,000 | ||||||||||
Limit on capital expenditures after 2021 | $ 45,000,000 | ||||||||||
First Amended Credit Facility | LIBOR | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 2.00% | ||||||||||
First Amended Credit Facility | LIBOR | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 2.75% | ||||||||||
First Amended Credit Facility | Base Rate | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 1.00% | ||||||||||
First Amended Credit Facility | Base Rate | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 1.75% | ||||||||||
First Amended Credit Facility | Federal Funds Rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 0.50% | ||||||||||
First Amended Credit Facility | Prime Rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 1.00% | ||||||||||
First Amended Credit Facility | Revolving credit facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 75,000,000 | ||||||||||
First Amended Credit Facility | Revolving credit facility | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment fee percentage | 0.20% | ||||||||||
First Amended Credit Facility | Revolving credit facility | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment fee percentage | 0.35% | ||||||||||
Second Amended Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Limit on capital expenditures in 2020 | $ 12,000,000 | ||||||||||
Limit on capital expenditures in 2021 | 12,000,000 | ||||||||||
Limit on capital expenditures in 2021 liquidity-based performance basket, maximum | 12,000,000 | ||||||||||
Limit on capital expenditures in 2022 | 34,000,000 | ||||||||||
Limit on capital expenditures in 2023 | 37,000,000 | ||||||||||
Limit on capital expenditures after 2023 | $ 45,000,000 | ||||||||||
Second Amended Credit Facility | LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 3.25% | ||||||||||
Second Amended Credit Facility | LIBOR | Minimum | Forecast | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 2.00% | ||||||||||
Second Amended Credit Facility | LIBOR | Maximum | Forecast | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 3.00% |
Long-Term Debt - Aggregate Matu
Long-Term Debt - Aggregate Maturities (Details) $ in Thousands | Mar. 29, 2022USD ($) |
Aggregate Maturities for Debt Outstanding | |
Year 1 | $ 1,813 |
Year 2 | 2,313 |
Year 3 | 31,169 |
Total | $ 35,295 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2022 | Mar. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Benefit from income taxes | $ (83) | $ (10) |
Effective tax rate | 1.30% | 0.50% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | |
Mar. 29, 2022 | Mar. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Shares awards available to be granted (in shares) | 2.5 | |
Stock-based compensation expense | $ 1,169 | $ 802 |
Capitalized stock-based compensation expense | $ 20 | $ 18 |
Restaurant Impairments, Closu_3
Restaurant Impairments, Closure Costs and Asset Disposals - Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2022 | Mar. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Restaurant impairments | $ 106 | $ 502 |
Closure costs | 389 | 305 |
Loss on disposal of assets and other | 894 | 424 |
Restaurant impairments, closure costs and asset disposals | $ 1,389 | $ 1,231 |
Restaurant Impairments, Closu_4
Restaurant Impairments, Closure Costs and Asset Disposals - Narrative (Details) - restaurant | 3 Months Ended | |
Mar. 29, 2022 | Mar. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Number of restaurants impaired | 0 | 1 |
Number of restaurants closed | 2 | 6 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 29, 2022 | Mar. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (6,429) | $ (1,977) |
Shares: | ||
Basic weighted average shares outstanding (in shares) | 45,726,500 | 45,098,028 |
Effect of dilutive securities (in shares) | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 45,726,500 | 45,098,028 |
Loss per share: | ||
Basic earnings (loss) per share (USD per share) | $ (0.14) | $ (0.04) |
Diluted earnings (loss) per share (USD per share) | $ (0.14) | $ (0.04) |
Anti-dilutive securities | ||
Antidilutive securities excluded from computation of earnings (loss) per share | 1,018,962 | 769,732 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 29, 2022 | Dec. 28, 2021 |
Assets | ||
Operating lease assets, net | $ 186,493 | $ 188,440 |
Finance lease assets, net | 6,350 | 6,394 |
Total leased assets | $ 192,843 | $ 194,834 |
Finance lease assets, line item [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Liabilities | ||
Current operating lease liabilities | $ 27,149 | $ 26,617 |
Current portion of finance lease liabilities | 2,029 | 1,956 |
Long-term operating lease liabilities, net | 196,922 | 200,243 |
Long-term finance lease liabilities | 4,572 | 4,654 |
Total lease liabilities | $ 230,672 | $ 233,470 |
Current finance lease liabilities, line item [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Long-term finance lease liabilities, line item [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 29, 2022USD ($)lease | Mar. 30, 2021USD ($)lease | |
Leases [Abstract] | ||
Sublease income | $ 0.8 | $ 0.5 |
Number of restaurant lease assets impaired | lease | 0 | 1 |
Asset impairment charge for certain operating leases | $ 0.3 |
Leases - Supplemental Disclosur
Leases - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2022 | Mar. 30, 2021 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 10,444 | $ 11,666 |
Cash paid for finance lease liabilities | 614 | 525 |
Cash paid for lease liabilities | 11,058 | 12,191 |
Right-of-use assets obtained in exchange for operating lease liabilities | 3,832 | 573 |
Right-of-use assets obtained in exchange for finance lease liabilities | 722 | 651 |
Right-of-use assets obtained in exchange for lease liabilities | $ 4,554 | $ 1,224 |
Supplemental Disclosures to C_3
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2022 | Mar. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid (net of amounts capitalized) | $ 245 | $ 709 |
Income taxes paid (refunded) | 1 | 0 |
Purchases of property and equipment accrued in accounts payable | $ 5,820 | $ 2,398 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 29, 2022 | Mar. 30, 2021 | Dec. 28, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Expected unredeemed percent | 9.00% | ||
Estimated redemption period | 24 months | ||
Gift card liability, current | $ 2,367 | $ 2,850 | |
Revenue recognized for redemption of gift cards | $ 1,000 | $ 1,100 | |
Period in which initial fees received from franchisees will be recognized as revenue | 20 years | ||
Loyalty program deferred revenue | $ 400 | 400 | |
Accrued Expenses and Other Current Liabilities | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Gift card liability, current | 2,400 | 2,900 | |
Other Long-term Liabilities | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Gift card liability, non-current | $ 600 | $ 600 |