Cover
Cover - shares | 9 Months Ended | |
Oct. 03, 2023 | Nov. 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 03, 2023 | |
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 | --01-02 | |
Document Fiscal Year Focus | 2023 | |
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, $0.01 par value per share | |
Trading Symbol | NDLS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 44,929,009 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 03, 2023 | Jan. 03, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 2,530 | $ 1,523 |
Accounts receivable | 4,812 | 6,443 |
Inventories | 10,307 | 10,044 |
Prepaid expenses and other assets | 4,787 | 3,450 |
Income tax receivable | 332 | 176 |
Total current assets | 22,768 | 21,636 |
Property and equipment, net | 149,442 | 129,386 |
Operating lease assets, net | 187,218 | 183,392 |
Goodwill | 7,154 | 7,154 |
Intangibles, net | 569 | 608 |
Other assets, net | 1,679 | 1,667 |
Total long-term assets | 346,062 | 322,207 |
Total assets | 368,830 | 343,843 |
Current liabilities: | ||
Accounts payable | 22,071 | 15,308 |
Accrued payroll and benefits | 11,741 | 9,219 |
Accrued expenses and other current liabilities | 12,056 | 11,005 |
Current operating lease liabilities | 29,721 | 28,581 |
Total current liabilities | 75,589 | 64,113 |
Long-term debt, net | 64,040 | 46,051 |
Long-term operating lease liabilities, net | 189,978 | 187,320 |
Deferred tax liabilities, net | 274 | 229 |
Other long-term liabilities | 6,434 | 7,766 |
Total liabilities | 336,315 | 305,479 |
Stockholders’ equity: | ||
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of October 3, 2023 and January 3, 2023; no shares issued or outstanding | 0 | 0 |
Common stock—$0.01 par value, 180,000,000 shares authorized as of October 3, 2023 and January 3, 2023; 47,352,880 issued and 44,929,009 outstanding as of October 3, 2023 and 48,464,298 issued and 46,040,427 outstanding as of January 3, 2023 | 474 | 485 |
Treasury stock, at cost, 2,423,871 shares as of October 3, 2023 and January 3, 2023 | (35,000) | (35,000) |
Additional paid-in capital | 209,148 | 211,267 |
Accumulated deficit | (142,107) | (138,388) |
Total stockholders’ equity | 32,515 | 38,364 |
Total liabilities and stockholders’ equity | $ 368,830 | $ 343,843 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 03, 2023 | Jan. 03, 2023 |
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 | 47,352,880 | 48,464,298 |
Common stock, shares, outstanding | 44,929,009 | 46,040,427 |
Treasury shares | 2,423,871 | 2,423,871 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2023 | Sep. 27, 2022 | Oct. 03, 2023 | Sep. 27, 2022 | |
Revenue: | ||||
Total revenue | $ 127,854 | $ 129,381 | $ 379,085 | $ 373,010 |
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||||
Other restaurant operating costs | 22,558 | 22,709 | 69,163 | 67,367 |
General and administrative | 11,864 | 11,596 | 37,968 | 36,180 |
Depreciation and amortization | 6,626 | 5,826 | 19,313 | 17,310 |
Pre-opening | 541 | 337 | 1,642 | 1,098 |
Restaurant impairments, closure costs and asset disposals | 2,135 | 1,672 | 5,313 | 5,032 |
Total costs and expenses | 125,820 | 127,852 | 379,558 | 375,678 |
Income (loss) from operations | 2,034 | 1,529 | (473) | (2,668) |
Interest expense, net | 1,186 | 735 | 3,201 | 1,661 |
Income (loss) before taxes | 848 | 794 | (3,674) | (4,329) |
Provision for (benefit from) income taxes | 148 | (1) | 45 | (40) |
Net income (loss) | $ 700 | $ 795 | $ (3,719) | $ (4,289) |
Earnings (loss) per Class A and Class B common stock, combined | ||||
Basic (USD per share) | $ 0.02 | $ 0.02 | $ (0.08) | $ (0.09) |
Diluted (USD per share) | $ 0.02 | $ 0.02 | $ (0.08) | $ (0.09) |
Weighted average shares of Class A and Class B common stock outstanding, combined: | ||||
Basic (in shares) | 45,935,305 | 46,010,824 | 46,166,320 | 45,872,893 |
Diluted (in shares) | 46,008,651 | 46,197,511 | 46,166,320 | 45,872,893 |
Restaurant revenue | ||||
Revenue: | ||||
Total revenue | $ 125,208 | $ 126,638 | $ 370,829 | $ 364,873 |
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||||
Restaurant operating costs | 31,457 | 35,528 | 93,182 | 101,963 |
Franchising royalties and fees, and other | ||||
Revenue: | ||||
Total revenue | 2,646 | 2,743 | 8,256 | 8,137 |
Labor | ||||
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||||
Restaurant operating costs | 39,139 | 39,049 | 118,626 | 113,370 |
Occupancy | ||||
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||||
Restaurant operating costs | $ 11,500 | $ 11,135 | $ 34,351 | $ 33,358 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury | Additional Paid-in Capital | Accumulated Deficit | ||
Beginning balance (in shares) at Dec. 28, 2021 | [1] | 48,125,151 | |||||
Beginning balance at Dec. 28, 2021 | $ 37,633 | $ 481 | [1] | $ (35,000) | $ 207,226 | $ (135,074) | |
Treasury stock, beginning balance (in shares) at Dec. 28, 2021 | 2,423,871 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock plan transactions and other (in shares) | [1] | 318,643 | |||||
Stock plan transactions and other | (373) | $ 3 | [1] | (376) | |||
Stock-based compensation expense | 3,410 | 3,410 | |||||
Net income (loss) | (4,289) | (4,289) | |||||
Ending balance (in shares) at Sep. 27, 2022 | [1] | 48,443,794 | |||||
Ending balance at Sep. 27, 2022 | 36,381 | $ 484 | [1] | $ (35,000) | 210,260 | (139,363) | |
Treasury stock, ending balance (in shares) at Sep. 27, 2022 | 2,423,871 | ||||||
Beginning balance (in shares) at Jun. 28, 2022 | [1] | 48,384,193 | |||||
Beginning balance at Jun. 28, 2022 | 34,887 | $ 484 | [1] | $ (35,000) | 209,561 | (140,158) | |
Treasury stock, beginning balance (in shares) at Jun. 28, 2022 | 2,423,871 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock plan transactions and other (in shares) | [1] | 59,601 | |||||
Stock plan transactions and other | (56) | $ 0 | [1] | (56) | |||
Stock-based compensation expense | 755 | 755 | |||||
Net income (loss) | 795 | 795 | |||||
Ending balance (in shares) at Sep. 27, 2022 | [1] | 48,443,794 | |||||
Ending balance at Sep. 27, 2022 | $ 36,381 | $ 484 | [1] | $ (35,000) | 210,260 | (139,363) | |
Treasury stock, ending balance (in shares) at Sep. 27, 2022 | 2,423,871 | ||||||
Beginning balance (in shares) at Jan. 03, 2023 | 46,040,427 | 48,464,298 | [1] | ||||
Beginning balance at Jan. 03, 2023 | $ 38,364 | $ 485 | [1] | $ (35,000) | 211,267 | (138,388) | |
Treasury stock, beginning balance (in shares) at Jan. 03, 2023 | 2,423,871 | 2,423,871 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock plan transactions and other (in shares) | [1] | 620,534 | |||||
Stock plan transactions and other | $ (644) | $ 6 | [1] | (650) | |||
Shares repurchased and retired (in shares) | [1] | (1,731,952) | |||||
Shares repurchased and retired | (5,014) | $ (17) | [1] | (4,997) | |||
Stock-based compensation expense | 3,528 | 3,528 | |||||
Net income (loss) | $ (3,719) | (3,719) | |||||
Ending balance (in shares) at Oct. 03, 2023 | 44,929,009 | 47,352,880 | [1] | ||||
Ending balance at Oct. 03, 2023 | $ 32,515 | $ 474 | [1] | $ (35,000) | 209,148 | (142,107) | |
Treasury stock, ending balance (in shares) at Oct. 03, 2023 | 2,423,871 | 2,423,871 | |||||
Beginning balance (in shares) at Jul. 04, 2023 | [1] | 48,853,045 | |||||
Beginning balance at Jul. 04, 2023 | $ 36,080 | $ 489 | [1] | $ (35,000) | 213,398 | (142,807) | |
Treasury stock, beginning balance (in shares) at Jul. 04, 2023 | 2,423,871 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock plan transactions and other (in shares) | [1] | 231,787 | |||||
Stock plan transactions and other | $ 41 | $ 2 | [1] | 39 | |||
Shares repurchased and retired (in shares) | (1,731,952) | (1,731,952) | [1] | ||||
Shares repurchased and retired | $ (5,014) | $ (17) | [1] | (4,997) | |||
Stock-based compensation expense | 708 | 708 | |||||
Net income (loss) | $ 700 | 700 | |||||
Ending balance (in shares) at Oct. 03, 2023 | 44,929,009 | 47,352,880 | [1] | ||||
Ending balance at Oct. 03, 2023 | $ 32,515 | $ 474 | [1] | $ (35,000) | $ 209,148 | $ (142,107) | |
Treasury stock, ending balance (in shares) at Oct. 03, 2023 | 2,423,871 | 2,423,871 | |||||
[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 | |
Oct. 03, 2023 | Sep. 27, 2022 | |
Operating activities | ||
Net loss | $ (3,719) | $ (4,289) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 19,313 | 17,310 |
Deferred income taxes | 45 | (41) |
Restaurant impairments, closure costs and asset disposals | 2,385 | 1,688 |
Amortization of debt issuance costs | 270 | 627 |
Stock-based compensation | 3,472 | 3,354 |
Gain on insurance proceeds for property damage | (205) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,676 | (1,210) |
Inventories | (327) | (709) |
Prepaid expenses and other assets | (1,380) | 923 |
Accounts payable | 3,164 | (592) |
Income taxes | (156) | (119) |
Operating lease assets and liabilities | (342) | (2,440) |
Accrued expenses and other liabilities | 3,135 | (6,682) |
Net cash provided by operating activities | 27,331 | 7,820 |
Investing activities | ||
Purchases of property and equipment | (36,722) | (22,549) |
Insurance proceeds received for property damage | 100 | 0 |
Proceeds from restaurant divestitures | 0 | 1,577 |
Net cash used in investing activities | (36,622) | (20,972) |
Financing activities | ||
Net (payments) borrowings from swing line loan | (4,781) | |
Net (payments) borrowings from swing line loan | 4,967 | |
Proceeds from borrowings on long-term debt | 22,500 | 43,512 |
Payments on long-term debt | 0 | (32,850) |
Payments on finance leases | (1,796) | (1,442) |
Debt issuance costs | 0 | (1,077) |
Repurchase of common stock | (4,981) | 0 |
Stock plan transactions and tax withholding on share-based compensation awards | (644) | (373) |
Net cash provided by financing activities | 10,298 | 12,737 |
Net increase (decrease) in cash and cash equivalents | 1,007 | (415) |
Cash and cash equivalents | ||
Beginning of period | 1,523 | 2,255 |
End of period | $ 2,530 | $ 1,840 |
Business Summary and Basis of P
Business Summary and Basis of Presentation | 9 Months Ended |
Oct. 03, 2023 | |
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 October 3, 2023, the Company had 468 restaurants system-wide in 31 states, comprised of 377 company-owned restaurants and 91 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 January 3, 2023 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 January 3, 2023. 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 2023, which ends on January 2, 2024 contains 52 weeks and fiscal year 2022, which ended on January 3, 2023, contained 53 weeks. The Company’s fiscal quarter that ended October 3, 2023 is referred to as the third quarter of 2023, and the fiscal quarter ended September 27, 2022 is referred to as the third quarter of 2022. |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Oct. 03, 2023 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Accounts receivable consist of the following (in thousands): October 3, January 3, Delivery program receivables $ 1,822 $ 2,027 Vendor rebate receivables 667 801 Franchise receivables 1,303 2,050 Other receivables 1,020 1,565 Accounts receivable $ 4,812 $ 6,443 Prepaid expenses and other assets consist of the following (in thousands): October 3, January 3, Prepaid insurance $ 1,509 $ 882 Prepaid occupancy related costs 773 711 Prepaid expenses 2,473 1,802 Other current assets 32 55 Prepaid expenses and other assets $ 4,787 $ 3,450 Property and equipment, net, consists of the following (in thousands): October 3, January 3, Leasehold improvements $ 225,581 $ 212,319 Furniture, fixtures and equipment 162,041 152,786 Construction in progress 19,388 6,738 407,010 371,843 Accumulated depreciation and amortization (257,568) (242,457) Property and equipment, net $ 149,442 $ 129,386 Accrued payroll and benefits consist of the following (in thousands): October 3, January 3, Accrued payroll and related liabilities $ 8,549 $ 5,004 Accrued bonus 1,366 2,007 Insurance liabilities 1,826 2,208 Accrued payroll and benefits $ 11,741 $ 9,219 Accrued expenses and other current liabilities consist of the following (in thousands): October 3, January 3, Gift card liability $ 1,805 $ 2,430 Occupancy related 1,190 1,001 Utilities 1,253 1,612 Current portion of finance lease liability 2,351 2,210 Insurance liabilities 266 415 Other restaurant expense accruals 1,539 1,128 Other corporate expense accruals 3,652 2,209 Accrued expenses and other current liabilities $ 12,056 $ 11,005 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Oct. 03, 2023 | |
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 was subsequently amended on November 20, 2019 and again on June 16, 2020, (as amended, the “Second Amended Credit Facility”). O n July 27, 2022, the Company amended and restated its Second Amended Credit Facility by entering into the Third Amendment to the Credit Agreement (as amended and restated, the “Third Amended Credit Facility”) which matures on July 27, 2027. Among other things, the Third Amended Credit Facility: (i) increased the credit facility from $100.0 million to $125.0 million; (ii) eliminated the term loan and principal amortization components of the credit facility; (iii) removed the Company’s capital expenditure covenant; (iv) enhanced flexibility for certain covenants and restrictions; and (v) lowered the spread of the Company’s cost of borrowing and transitioned from the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.50% to 2.50% per annum, based upon the consolidated total lease-adjusted leverage ratio. As of October 3, 2023, the Company had $65.4 million of indebtedness (excluding $1.4 million of unamortized debt issuance costs) and $3.0 million of letters of credit outstanding under the Third Amended Credit Facility. As of October 3, 2023, the Company had cash on hand of $2.5 million. The Company’s revolver, which had a balance of $65.4 million as of October 3, 2023 , bore interest at rates between 6.63% and 9.75% during the first three quarters of 2023. The Company’s swingline, which did not have a balance as of October 3, 2023 , bore interest at rates between 8.75% and 9.75% in the first three quarters of 2023. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 03, 2023 | |
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 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 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 03, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the Company’s provision for income taxes (in thousands): Fiscal Quarter Ended Three Fiscal Quarters Ended October 3, September 27, October 3, September 27, Provision for (benefit from) income taxes $ 148 $ (1) $ 45 $ (40) Effective tax rate 17.5 % (0.1) % (1.2) % 0.9 % The effective tax rate for the third quarter and the first three quarters of 2023 and 2022, respectively, reflects the impact of the previously recorded valuation allowance. For the remainder of fiscal 2023, 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 | 9 Months Ended |
Oct. 03, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In May of 2023, the Company’s Board of Directors adopted the 2023 Stock Incentive Plan, which was approved at the annual meeting of stockholders on May 16, 2023 (the “2023 Plan”). The 2023 Plan 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 applicable . The Company’s 2013 Stock Incentive Plan, as amended and restated in May of 2013 was terminated. As of October 3, 2023, approximately 2.9 million share-based awards were available to be granted under the 2023 Plan. The following table shows total stock-based compensation expense (in thousands): Fiscal Quarter Ended Three Fiscal Quarters Ended October 3, September 27, October 3, September 27, Stock-based compensation expense $ 694 $ 751 $ 3,580 $ 3,419 Capitalized stock-based compensation expense $ 14 $ 18 $ 56 $ 56 |
Restaurant Impairments, Closure
Restaurant Impairments, Closure Costs and Asset Disposals | 9 Months Ended |
Oct. 03, 2023 | |
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 Three Fiscal Quarters Ended October 3, September 27, October 3, September 27, Restaurant impairments (1) $ 731 $ 412 $ 1,240 $ 1,186 Closure costs (1) 189 370 996 1,224 Loss on disposal of assets and other 1,215 890 3,077 2,622 $ 2,135 $ 1,672 $ 5,313 $ 5,032 _____________________________ (1) Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed. 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. In the third quarter of 2023, the Company wrote down lease related assets for two restaurants previously closed. There were no impairment charges for fixed assets in the third quarter of 2023. In the third quarter of 2022, the Company wrote down lease related assets for one restaurant. The Company also recorded fixed asset impairments for two restaurants in the third quarter of 2022. During the first three quarters of 2023, the Company recorded fixed asset impairment related to one restaurant and wrote down lease related assets on four restaurants. During the first three quarters of 2022, the Company wrote down lease related assets for two restaurants and fixed asset impairment for four restaurants . The Company did not close any restaurants during the third quarters of 2023 and 2022, respectively. Closure costs in the third quarters of 2023 and 2022 included ongoing expenses from restaurant closures in prior periods. We permanently closed four company-owned restaurants in the first three quarters of 2023, two of which were early lease terminations. The Company closed two restaurants in the first three quarters of 2022 . Closure costs in the first three quarters of 2023 and 2022 also included ongoing expenses from restaurant closures in prior years. Both periods include asset disposals in the normal course of business and lease related costs and expenses in connection with the divestiture of company-owned restaurants in previous years. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Oct. 03, 2023 | |
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 October 3, September 27, October 3, September 27, Net income (loss) $ 700 $ 795 $ (3,719) $ (4,289) Shares: Basic weighted average shares outstanding 45,935,305 46,010,824 46,166,320 45,872,893 Effect of dilutive securities 73,346 186,687 — — Diluted weighted average shares outstanding 46,008,651 46,197,511 46,166,320 45,872,893 Earnings (loss) per share: Basic earnings (loss) per share $ 0.02 $ 0.02 $ (0.08) $ (0.09) Diluted earnings (loss) per share $ 0.02 $ 0.02 $ (0.08) $ (0.09) 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 loss per share when the effect would be anti-dilutive. The shares issuable on the vesting or exercise of share-based awards that were excluded from the calculation of diluted earnings per share because the effect of their inclusion would have been anti-dilu tive totaled 3,488,884 and 1,810,346 for the third quarters of 2023 and 2022, respectively, and totaled 3,442,798 and 2,364,003 for the first three quarters of 2023 and 2022, respectively. |
Leases
Leases | 9 Months Ended |
Oct. 03, 2023 | |
Leases [Abstract] | |
Leases | Leases Supplemental balance sheet information related to leases is as follows (in thousands): Classification October 3, January 3, Assets Operating Operating lease assets, net $ 187,218 $ 183,392 Finance Property and equipment 3,908 5,258 Total leased assets $ 191,126 $ 188,650 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 29,721 $ 28,581 Finance Accrued expenses and other current liabilities 2,351 2,210 Long-term lease liabilities Operating Long-term operating lease liabilities 189,978 187,320 Finance Other long-term liabilities 1,939 3,520 Total lease liabilities $ 223,989 $ 221,631 Sublease income recognized in the Condensed Consolidated Statements of Operations was $0.7 million and $0.8 million for the third quarter of 2023 and 2022, and $2.4 million for both of the first three quarters of 2023 and 2022, respectively. Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended Three Fiscal Quarters Ended October 3, September 27, October 3, September 27, Cash paid for lease liabilities: Operating leases $ 10,769 $ 10,459 $ 31,856 $ 31,318 Finance leases 626 538 2,028 1,751 $ 11,395 $ 10,997 $ 33,884 $ 33,069 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 9,857 $ 9,351 $ 23,631 $ 17,458 Finance leases 179 444 356 1,287 $ 10,036 $ 9,795 $ 23,987 $ 18,745 |
Leases | Leases Supplemental balance sheet information related to leases is as follows (in thousands): Classification October 3, January 3, Assets Operating Operating lease assets, net $ 187,218 $ 183,392 Finance Property and equipment 3,908 5,258 Total leased assets $ 191,126 $ 188,650 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 29,721 $ 28,581 Finance Accrued expenses and other current liabilities 2,351 2,210 Long-term lease liabilities Operating Long-term operating lease liabilities 189,978 187,320 Finance Other long-term liabilities 1,939 3,520 Total lease liabilities $ 223,989 $ 221,631 Sublease income recognized in the Condensed Consolidated Statements of Operations was $0.7 million and $0.8 million for the third quarter of 2023 and 2022, and $2.4 million for both of the first three quarters of 2023 and 2022, respectively. Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended Three Fiscal Quarters Ended October 3, September 27, October 3, September 27, Cash paid for lease liabilities: Operating leases $ 10,769 $ 10,459 $ 31,856 $ 31,318 Finance leases 626 538 2,028 1,751 $ 11,395 $ 10,997 $ 33,884 $ 33,069 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 9,857 $ 9,351 $ 23,631 $ 17,458 Finance leases 179 444 356 1,287 $ 10,036 $ 9,795 $ 23,987 $ 18,745 |
Supplemental Disclosures to Con
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows | 9 Months Ended |
Oct. 03, 2023 | |
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 October 3, 2023 and September 27, 2022 (in thousands): October 3, September 27, Interest paid (net of amounts capitalized) $ 2,604 $ 749 Income taxes paid 156 123 Purchases of property and equipment accrued in accounts payable 9,272 5,970 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 03, 2023 | |
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 approximat ely 14% of gift ca rds will not be redeemed and recognizes gift card breakage ratably over the estimated redemption period of the gift card, which is approximate ly 24 months. G ift card liability balances are typically highest at the end of each calendar year following increased gift card purchases during the holiday season. As of October 3, 2023 and January 3, 2023, the current portion of the gift card liability, $1.8 million and $2.4 million, respectively, was included in accrued expenses and other current liabilities, and the long-term portion a mounting to $0.7 million at each quarter end, 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 $0.6 million and $0.8 million for the third quarters of 2023 and 2022, respectively, and $2.2 million and $2.6 million for the first three quarters of 2023 and 2022, 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 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 October 3, 2023 and January 3, 2023, the deferred revenue related to the rewards w as $0.9 million and $0.3 million, respectively and is included in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Share Repurchases
Share Repurchases | 9 Months Ended |
Oct. 03, 2023 | |
Equity [Abstract] | |
Share Repurchases | Share Repurchases On July 26, 2023, the Company announced a share repurchase program (the “2023 Share Repurchase Program”) of up to $5.0 million of the Company’s Class A common stock. Under this program, the Company purchased shares of the Company's Class A common stock in the open market. The Company conducted any open market share repurchase activities in compliance with the safe harbor provisions of Rule 10b-18 of the Exchange Act. During the third quarter ended October 3, 2023 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 03, 2023 | |
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 October 3, 2023. 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 |
Oct. 03, 2023 | |
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 January 3, 2023 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 2023, which ends on January 2, 2024 contains 52 weeks and fiscal year 2022, which ended on January 3, 2023, contained 53 weeks. The Company’s fiscal quarter that ended October 3, 2023 is referred to as the third quarter of 2023, and the fiscal quarter ended September 27, 2022 is referred to as the third quarter of 2022. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 9 Months Ended |
Oct. 03, 2023 | |
Supplemental Financial Information [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following (in thousands): October 3, January 3, Delivery program receivables $ 1,822 $ 2,027 Vendor rebate receivables 667 801 Franchise receivables 1,303 2,050 Other receivables 1,020 1,565 Accounts receivable $ 4,812 $ 6,443 |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following (in thousands): October 3, January 3, Prepaid insurance $ 1,509 $ 882 Prepaid occupancy related costs 773 711 Prepaid expenses 2,473 1,802 Other current assets 32 55 Prepaid expenses and other assets $ 4,787 $ 3,450 |
Schedule of Property and Equipment | Property and equipment, net, consists of the following (in thousands): October 3, January 3, Leasehold improvements $ 225,581 $ 212,319 Furniture, fixtures and equipment 162,041 152,786 Construction in progress 19,388 6,738 407,010 371,843 Accumulated depreciation and amortization (257,568) (242,457) Property and equipment, net $ 149,442 $ 129,386 |
Schedule of Accrued Payroll and Benefits | Accrued payroll and benefits consist of the following (in thousands): October 3, January 3, Accrued payroll and related liabilities $ 8,549 $ 5,004 Accrued bonus 1,366 2,007 Insurance liabilities 1,826 2,208 Accrued payroll and benefits $ 11,741 $ 9,219 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): October 3, January 3, Gift card liability $ 1,805 $ 2,430 Occupancy related 1,190 1,001 Utilities 1,253 1,612 Current portion of finance lease liability 2,351 2,210 Insurance liabilities 266 415 Other restaurant expense accruals 1,539 1,128 Other corporate expense accruals 3,652 2,209 Accrued expenses and other current liabilities $ 12,056 $ 11,005 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Oct. 03, 2023 | |
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 October 3, September 27, October 3, September 27, Provision for (benefit from) income taxes $ 148 $ (1) $ 45 $ (40) Effective tax rate 17.5 % (0.1) % (1.2) % 0.9 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 03, 2023 | |
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 October 3, September 27, October 3, September 27, Stock-based compensation expense $ 694 $ 751 $ 3,580 $ 3,419 Capitalized stock-based compensation expense $ 14 $ 18 $ 56 $ 56 |
Restaurant Impairments, Closu_2
Restaurant Impairments, Closure Costs and Asset Disposals (Tables) | 9 Months Ended |
Oct. 03, 2023 | |
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 Three Fiscal Quarters Ended October 3, September 27, October 3, September 27, Restaurant impairments (1) $ 731 $ 412 $ 1,240 $ 1,186 Closure costs (1) 189 370 996 1,224 Loss on disposal of assets and other 1,215 890 3,077 2,622 $ 2,135 $ 1,672 $ 5,313 $ 5,032 _____________________________ |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Oct. 03, 2023 | |
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 October 3, September 27, October 3, September 27, Net income (loss) $ 700 $ 795 $ (3,719) $ (4,289) Shares: Basic weighted average shares outstanding 45,935,305 46,010,824 46,166,320 45,872,893 Effect of dilutive securities 73,346 186,687 — — Diluted weighted average shares outstanding 46,008,651 46,197,511 46,166,320 45,872,893 Earnings (loss) per share: Basic earnings (loss) per share $ 0.02 $ 0.02 $ (0.08) $ (0.09) Diluted earnings (loss) per share $ 0.02 $ 0.02 $ (0.08) $ (0.09) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 03, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Lease Information | Supplemental balance sheet information related to leases is as follows (in thousands): Classification October 3, January 3, Assets Operating Operating lease assets, net $ 187,218 $ 183,392 Finance Property and equipment 3,908 5,258 Total leased assets $ 191,126 $ 188,650 Liabilities Current lease liabilities Operating Current operating lease liabilities $ 29,721 $ 28,581 Finance Accrued expenses and other current liabilities 2,351 2,210 Long-term lease liabilities Operating Long-term operating lease liabilities 189,978 187,320 Finance Other long-term liabilities 1,939 3,520 Total lease liabilities $ 223,989 $ 221,631 Supplemental disclosures of cash flow information related to leases are as follows (in thousands): Fiscal Quarter Ended Three Fiscal Quarters Ended October 3, September 27, October 3, September 27, Cash paid for lease liabilities: Operating leases $ 10,769 $ 10,459 $ 31,856 $ 31,318 Finance leases 626 538 2,028 1,751 $ 11,395 $ 10,997 $ 33,884 $ 33,069 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 9,857 $ 9,351 $ 23,631 $ 17,458 Finance leases 179 444 356 1,287 $ 10,036 $ 9,795 $ 23,987 $ 18,745 |
Supplemental Disclosures to C_2
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Tables) | 9 Months Ended |
Oct. 03, 2023 | |
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 October 3, 2023 and September 27, 2022 (in thousands): October 3, September 27, Interest paid (net of amounts capitalized) $ 2,604 $ 749 Income taxes paid 156 123 Purchases of property and equipment accrued in accounts payable 9,272 5,970 |
Business Summary and Basis of_3
Business Summary and Basis of Presentation (Details) | 9 Months Ended |
Oct. 03, 2023 restaurant segment state | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 468 |
Number of states with operations | state | 31 |
Number of operating segments | segment | 1 |
Number of reportable segments | segment | 1 |
Company-owned | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 377 |
Franchise | |
Franchisor Disclosure [Line Items] | |
Number of restaurants | 91 |
Supplemental Financial Inform_3
Supplemental Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands | Oct. 03, 2023 | Jan. 03, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 4,812 | $ 6,443 |
Delivery program receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 1,822 | 2,027 |
Vendor rebate receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 667 | 801 |
Franchise receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 1,303 | 2,050 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 1,020 | $ 1,565 |
Supplemental Financial Inform_4
Supplemental Financial Information - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Oct. 03, 2023 | Jan. 03, 2023 |
Supplemental Financial Information [Abstract] | ||
Prepaid insurance | $ 1,509 | $ 882 |
Prepaid occupancy related costs | 773 | 711 |
Prepaid expenses | 2,473 | 1,802 |
Other current assets | 32 | 55 |
Prepaid expenses and other assets | $ 4,787 | $ 3,450 |
Supplemental Financial Inform_5
Supplemental Financial Information - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Oct. 03, 2023 | Jan. 03, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 407,010 | $ 371,843 |
Accumulated depreciation and amortization | (257,568) | (242,457) |
Property and equipment, net | 149,442 | 129,386 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 225,581 | 212,319 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 162,041 | 152,786 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 19,388 | $ 6,738 |
Supplemental Financial Inform_6
Supplemental Financial Information - Accrued Payroll and Benefits (Details) - USD ($) $ in Thousands | Oct. 03, 2023 | Jan. 03, 2023 |
Supplemental Financial Information [Abstract] | ||
Accrued payroll and related liabilities | $ 8,549 | $ 5,004 |
Accrued bonus | 1,366 | 2,007 |
Insurance liabilities | 1,826 | 2,208 |
Accrued payroll and benefits | $ 11,741 | $ 9,219 |
Supplemental Financial Inform_7
Supplemental Financial Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Oct. 03, 2023 | Jan. 03, 2023 |
Supplemental Financial Information [Abstract] | ||
Gift card liability | $ 1,805 | $ 2,430 |
Occupancy related | 1,190 | 1,001 |
Utilities | 1,253 | 1,612 |
Current portion of finance lease liability | 2,351 | 2,210 |
Insurance liabilities | 266 | 415 |
Other restaurant expense accruals | 1,539 | 1,128 |
Other corporate expense accruals | 3,652 | 2,209 |
Accrued expenses and other current liabilities | $ 12,056 | $ 11,005 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 9 Months Ended | |||
Jul. 27, 2022 | Oct. 03, 2023 | Jan. 03, 2023 | Nov. 20, 2019 | |
Line of Credit Facility [Line Items] | ||||
Cash and cash equivalents | $ 2,530,000 | $ 1,523,000 | ||
Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Long-Term Line of Credit | $ 65,400,000 | |||
Revolving credit facility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 6.63% | |||
Revolving credit facility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 9.75% | |||
Swingline subfacility | ||||
Line of Credit Facility [Line Items] | ||||
Long-Term Line of Credit | $ 0 | |||
Swingline subfacility | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate during period | 8.75% | |||
Swingline subfacility | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate during period | 9.75% | |||
2018 Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Indebtedness | $ 65,400,000 | |||
Unamortized debt issuance costs | 1,400,000 | |||
Letters of credit outstanding | 3,000,000 | |||
Cash and cash equivalents | $ 2,500,000 | |||
2018 Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
2018 Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.50% | |||
2018 Credit Facility | Revolving credit facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 125,000,000 | $ 100,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2023 | Sep. 27, 2022 | Oct. 03, 2023 | Sep. 27, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 148 | $ (1) | $ 45 | $ (40) |
Effective tax rate | 17.50% | (0.10%) | (1.20%) | 0.90% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2023 | Sep. 27, 2022 | Oct. 03, 2023 | Sep. 27, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Shares awards available to be granted (in shares) | 2.9 | 2.9 | ||
Stock-based compensation expense | $ 694 | $ 751 | $ 3,580 | $ 3,419 |
Capitalized stock-based compensation expense | $ 14 | $ 18 | $ 56 | $ 56 |
Restaurant Impairments, Closu_3
Restaurant Impairments, Closure Costs and Asset Disposals - Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2023 | Sep. 27, 2022 | Oct. 03, 2023 | Sep. 27, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Restaurant impairments | $ 731 | $ 412 | $ 1,240 | $ 1,186 |
Closure costs | 189 | 370 | 996 | 1,224 |
Loss on disposal of assets and other | 1,215 | 890 | 3,077 | 2,622 |
Restaurant impairments, closure costs and asset disposals | $ 2,135 | $ 1,672 | $ 5,313 | $ 5,032 |
Restaurant Impairments, Closu_4
Restaurant Impairments, Closure Costs and Asset Disposals - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2023 restaurant | Sep. 27, 2022 restaurant | Oct. 03, 2023 restaurant lease | Sep. 27, 2022 restaurant | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Number of restaurants with lease related assets written down | 2 | 1 | 4 | 2 |
Number of restaurants impaired | 0 | 2 | 1 | 4 |
Number of restaurants closed | 0 | 0 | 4 | 2 |
Number of early lease terminations | lease | 2 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2023 | Sep. 27, 2022 | Oct. 03, 2023 | Sep. 27, 2022 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ 700 | $ 795 | $ (3,719) | $ (4,289) |
Shares: | ||||
Basic weighted average shares outstanding (in shares) | 45,935,305 | 46,010,824 | 46,166,320 | 45,872,893 |
Effect of dilutive securities (in shares) | 73,346 | 186,687 | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 46,008,651 | 46,197,511 | 46,166,320 | 45,872,893 |
Earnings (loss) per share: | ||||
Basic earnings (loss) per share (USD per share) | $ 0.02 | $ 0.02 | $ (0.08) | $ (0.09) |
Diluted earnings (loss) per share (USD per share) | $ 0.02 | $ 0.02 | $ (0.08) | $ (0.09) |
Anti-dilutive securities | ||||
Antidilutive securities excluded from computation of earnings (loss) per share | 3,488,884 | 1,810,346 | 3,442,798 | 2,364,003 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Oct. 03, 2023 | Jan. 03, 2023 |
Assets | ||
Operating lease assets, net | $ 187,218 | $ 183,392 |
Finance lease assets, net | 3,908 | 5,258 |
Total leased assets | $ 191,126 | $ 188,650 |
Finance lease assets, line item [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Liabilities | ||
Current operating lease liabilities | $ 29,721 | $ 28,581 |
Current portion of finance lease liabilities | 2,351 | 2,210 |
Long-term operating lease liabilities, net | 189,978 | 187,320 |
Long-term finance lease liabilities | 1,939 | 3,520 |
Total lease liabilities | $ 223,989 | $ 221,631 |
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) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2023 | Sep. 27, 2022 | Oct. 03, 2023 | Sep. 27, 2022 | |
Leases [Abstract] | ||||
Sublease income | $ 0.7 | $ 0.8 | $ 2.4 | $ 2.4 |
Leases - Supplemental Disclosur
Leases - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2023 | Sep. 27, 2022 | Oct. 03, 2023 | Sep. 27, 2022 | |
Leases [Abstract] | ||||
Cash paid for operating lease liabilities | $ 10,769 | $ 10,459 | $ 31,856 | $ 31,318 |
Cash paid for finance lease liabilities | 626 | 538 | 2,028 | 1,751 |
Cash paid for lease liabilities | 11,395 | 10,997 | 33,884 | 33,069 |
Right-of-use assets obtained in exchange for operating lease liabilities | 9,857 | 9,351 | 23,631 | 17,458 |
Right-of-use assets obtained in exchange for finance lease liabilities | 179 | 444 | 356 | 1,287 |
Right-of-use assets obtained in exchange for lease liabilities | $ 10,036 | $ 9,795 | $ 23,987 | $ 18,745 |
Supplemental Disclosures to C_3
Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2023 | Sep. 27, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid (net of amounts capitalized) | $ 2,604 | $ 749 |
Income taxes paid | 156 | 123 |
Purchases of property and equipment accrued in accounts payable | $ 9,272 | $ 5,970 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2023 | Sep. 27, 2022 | Oct. 03, 2023 | Sep. 27, 2022 | Jan. 03, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Expected unredeemed percent | 14% | ||||
Estimated redemption period | 24 months | ||||
Gift card liability, current | $ 1,805 | $ 1,805 | $ 2,430 | ||
Revenue recognized for redemption of gift cards | 600 | $ 800 | $ 2,200 | $ 2,600 | |
Period in which initial fees received from franchisees will be recognized as revenue | 20 years | ||||
Loyalty program deferred revenue | 900 | $ 900 | 300 | ||
Accrued Expenses and Other Current Liabilities | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Gift card liability, current | 1,800 | 1,800 | 2,400 | ||
Other Long-term Liabilities | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Gift card liability, non-current | $ 700 | $ 700 | $ 700 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2023 | Oct. 03, 2023 | Oct. 03, 2023 | Jul. 26, 2023 | |
Equity [Abstract] | ||||
Stock Repurchase Program, Authorized Amount | $ 5,000,000 | |||
Shares repurchased and retired (in shares) | 1,731,952 | |||
Stock Repurchased and Retired During Period, Value | $ 5,014,000 | $ 5,014,000 | ||
Shares Acquired, Average Cost Per Share | $ 2.86 |