Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 03, 2018 | Aug. 06, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 3, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | JAMBA, INC. | |
Entity Central Index Key | 1,316,898 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | JMBA | |
Entity Common Stock, Shares Outstanding | 15,640,617 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 03, 2018 | Jan. 02, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 9,095 | $ 10,030 |
Receivables, net of allowances of $719 and $904 | 8,965 | 10,098 |
Inventories | 468 | 465 |
Prepaid rent | 683 | 776 |
Prepaid expenses and other current assets | 3,509 | 4,321 |
Total current assets | 22,720 | 25,690 |
Property, fixtures and equipment, net of accumulated depreciation of $33,549 and $32,785 | 9,778 | 10,928 |
Goodwill | 1,181 | 1,181 |
Trademarks and other intangible assets, net of accumulated amortization of $887 and $855 | 1,150 | 1,211 |
Deferred tax asset | 785 | 791 |
Notes receivable and other long-term assets | 1,040 | 847 |
Total assets | 36,654 | 40,648 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 7,245 | 10,070 |
Accrued compensation and benefits | 4,059 | 2,122 |
Accrued gift card liability | 13,456 | 27,469 |
Other current liabilities | 9,830 | 8,052 |
Total current liabilities | 34,590 | 47,713 |
Long term portion of deferred revenue | 7,715 | 2,398 |
Deferred rent and other long-term liabilities | 4,607 | 5,111 |
Total liabilities | 46,912 | 55,222 |
Commitments and contingencies (Note 10) | ||
Shareholders’ deficit: | ||
Common stock, $0.001 par value—30,000,000 shares authorized; 18,499,434 and 15,640,617 shares issued and outstanding, respectively, at July 3, 2018, and 18,447,023 and 15,588,206 shares issued and outstanding, respectively, at January 2, 2018 | 18 | 18 |
Additional paid-in capital | 410,624 | 409,518 |
Treasury shares, at cost, 2,858,817 shares | (40,009) | (40,009) |
Accumulated deficit | (380,891) | (384,101) |
Total shareholders’ deficit | (10,258) | (14,574) |
Total liabilities and shareholders' deficit | $ 36,654 | $ 40,648 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 03, 2018 | Jan. 02, 2018 |
Receivables, allowances (in dollars) | $ 719 | $ 904 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 33,549 | $ 32,785 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 18,499,434 | 18,447,023 |
Common stock, shares outstanding | 15,640,617 | 15,588,206 |
Treasury Stock, Shares | 2,858,817 | 2,858,817 |
Trade Marks And Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 887 | $ 855 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | |
Revenue: | ||||
Total revenue | $ 24,493 | $ 20,514 | $ 45,466 | $ 38,127 |
Costs and operating expenses: | ||||
Cost of sales | 2,460 | 2,928 | 4,662 | 5,590 |
Labor | 3,544 | 4,281 | 6,934 | 8,569 |
Occupancy | 1,448 | 1,711 | 2,851 | 3,474 |
Store operating | 1,476 | 2,531 | 2,897 | 4,329 |
Depreciation and amortization | 870 | 899 | 1,741 | 1,780 |
General and administrative | 10,552 | 6,757 | 18,575 | 15,358 |
Loss on disposal of assets | 5 | 392 | 168 | 554 |
Store pre-opening | 80 | 105 | 115 | 343 |
Store lease termination and closure | 140 | 57 | 200 | 238 |
Advertising expense | 3,544 | 6,560 | ||
Other operating, net | 584 | (867) | 854 | (791) |
Total costs and operating expenses | 24,703 | 18,794 | 45,557 | 39,444 |
Income (loss) from operations | (210) | 1,720 | (91) | (1,317) |
Other income (expenses): | ||||
Interest income | 3 | 41 | 7 | 95 |
Interest expense | (78) | (83) | (158) | (166) |
Total other income (expenses), net | (75) | (42) | (151) | (71) |
Income (loss) before income taxes | (285) | 1,678 | (242) | (1,388) |
Income tax (expense) benefit | (1) | 47 | (6) | (39) |
Net income (loss) | $ (286) | $ 1,725 | $ (248) | $ (1,427) |
Weighted-average shares used in the computation of income (loss) per share: | ||||
Basic | 15,602,605 | 15,472,137 | 15,595,405 | 15,441,916 |
Diluted | 15,602,605 | 15,867,544 | 15,595,405 | 15,441,916 |
Income (loss) per share: | ||||
Basic | $ (0.02) | $ 0.11 | $ (0.02) | $ (0.09) |
Diluted | $ (0.02) | $ 0.11 | $ (0.02) | $ (0.09) |
Company Stores [Member] | ||||
Revenue: | ||||
Total revenue | $ 11,058 | $ 13,262 | $ 20,367 | $ 24,369 |
Franchise and Other Revenue [Member] | ||||
Revenue: | ||||
Total revenue | 7,285 | 6,951 | 13,653 | 12,703 |
Advertising Fees and Other Income [Member] | ||||
Revenue: | ||||
Total revenue | $ 6,150 | $ 301 | $ 11,446 | $ 1,055 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 03, 2018 | Jul. 04, 2017 | |
Cash provided by operating activities: | ||
Net loss | $ (248) | $ (1,427) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,741 | 1,780 |
Gift card breakage income | (1,702) | (1,948) |
Stock-based compensation | 2,227 | 645 |
Deferred rent | (510) | 80 |
Other, net | 430 | 308 |
Changes in operating assets and liabilities: | ||
Receivables | 1,154 | 1,557 |
Inventories | (3) | 426 |
Prepaid expenses and other current assets | 836 | (19) |
Other long-term assets | (193) | 1,933 |
Accounts payable and accrued expenses | (2,518) | 940 |
Accrued compensation and benefits | 816 | (2,264) |
Accrued gift card liability | (2,209) | 1,343 |
Other current liabilities | 472 | 1,488 |
Other long-term liabilities | (192) | (885) |
Cash provided by operating activities | 101 | 3,957 |
Cash used in investing activities: | ||
Capital expenditures | (1,038) | (775) |
Proceeds from sale of assets | 2 | 390 |
Cash used in investing activities | (1,036) | (385) |
Cash provided by financing activities: | ||
Payment on capital lease obligations | (3) | |
Proceeds pursuant to stock plan | 544 | |
Cash provided by financing activities | 541 | |
Net (decrease) increase in cash and cash equivalents | (935) | 4,113 |
Cash and cash equivalents at beginning of period | 10,030 | 7,133 |
Cash and cash equivalents at end of period | 9,095 | 11,246 |
Supplemental cash flow information: | ||
Cash paid for interest | 16 | 7 |
Income taxes paid | 4 | 1 |
Noncash investing and financing activities: | ||
Property, fixtures and equipment in accounts payable | $ 104 | $ 105 |
Description of Business
Description of Business | 6 Months Ended |
Jul. 03, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description Of Business | 1. DESCRIPTION OF BUSINESS Business - Jamba, Inc. consummated its initial public offering in July 2005. On November 29, 2006, Jamba, Inc. consummated the merger with Jamba Juice Company whereby Jamba Juice Company, which first began operations in 1990, became its wholly owned subsidiary. J amba, Inc. through its wholly-owned subsidiary, Jamba Juice Company (“the Company”), is a healthful lifestyle brand that inspires and simplifies healthful living through freshly blended whole fruit and vegetable smoothies, bowls, juices, cold-pressed shots, boosts, snacks, and meal replacements. Our global business is driven by a portfolio of franchised and company-owned Jamba Juice® stores. As of July 3, 2018, there were 848 Jamba Juice stores globally, consisting of 51 Company-owned and operated stores (“Company Stores”), 737 franchisee-owned and operated stores (“Franchise Stores”) in the United States and 60 Franchise Stores in international locations (“International Stores”). |
Pending Merger with Focus Brand
Pending Merger with Focus Brands | 6 Months Ended |
Jul. 03, 2018 | |
Business Combinations [Abstract] | |
Pending Merger with Focus Brands | 2. Pending Merger with Focus Brands On August 1, 2018 we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Focus Brands Inc., a Delaware corporation (“Parent”), and Jay Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Merger Sub”). The Merger Agreement provides that Parent will cause Merger Sub to commence, as promptly as practicable, but in no event later than ten (10) business days after the date of the Merger Agreement, a tender offer (the “Offer”) to acquire all of the Company’s outstanding shares of common stock, par value As soon as practicable following consummation of the Offer (the “Offer Acceptance Time”), subject to the satisfaction or waiver of certain customary conditions set forth in the Merger Agreement, Merger Sub will merge with and into the Company, with the Company surviving as a wholly-owned subsidiary of Parent (the “Merger”), pursuant to the procedure provided for under Section 251(h) of the General Corporation Law of the State of Delaware (the “DGCL”), without adoption of the Merger Agreement by the Company’s stockholders. At the effective time of the Merger (the “Effective Time”), each Share issued and outstanding immediately prior to the Effective Time (other than Shares (i) held in the treasury of the Company and Shares owned by Merger Sub, Parent or any wholly-owned subsidiary of Parent or the Company immediately prior to commencement of the Offer, (ii) irrevocably accepted for purchase in the Offer and (iii) owned by a holder who was entitled to demand and who has properly demanded appraisal for such Shares under Section 262 of the DGCL and as of the Effective Time has neither effectively withdrawn nor lost such holder’s rights to such appraisal under DGCL with respect to such Shares) will automatically be converted into the right to receive an amount in cash equal to the Offer Price without interest thereon. The transaction, which was unanimously approved by the Company’s board, is expected to close during the third quarter, subject to tender of at least a majority of the issued and outstanding Shares and other customary closing conditions. Additional information about the Merger Agreement and the related transactions can be found in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 2, 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 03, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and consolidation The accompanying unaudited Condensed Consolidated Financial Statements of Jamba, Inc. have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10-Q. The January 2, 2018 Condensed Consolidated Balance Sheet was derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of the 13-week or 26-week periods ended July 3, 2018 are not necessarily indicative of the results of operations to be expected for the entire fiscal year. The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiary, Jamba Juice Company. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to the Company’s prior financial statements to conform to current year presentation. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended January 2, 2018. Use of estimates The preparation of the Condensed Consolidated Financial Statements and accompanying notes are in conformity with U.S. GAAP. Preparing Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates. Comprehensive Income Comprehensive income is defined as the change in equity during a period from transactions and other events, excluding changes resulting from investments from owners and distributions to owners. The Company currently has no components of comprehensive income other than net income (loss), therefore no separate statement of comprehensive income is presented. Income (Loss) Per Share Basic income (loss) per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share is computed based on the weighted-average number of common shares and potentially dilutive securities, which includes outstanding options and restricted stock awards granted under the Company’s stock option plans. Anti-dilutive common stock equivalents totaling 1.0 million and 1.1 million were excluded from the calculation of diluted weighted-average shares outstanding for the 13-week and 26-week periods ended July 3, 2018, respectively. Anti-dilutive common stock equivalents totaling 1.6 million and 2.0 million were excluded from the calculation of diluted weighted-average shares outstanding for the 13-week and 26-week periods ended July 4, 2017, respectively. Basic and diluted income (loss) per share do not differ when there is a net loss position as potentially dilutive securities are anti-dilutive. Fair Value of Financial Instruments The following instruments are not measured at fair value on the Company’s Condensed Consolidated Balance Sheets but require disclosure of their fair values: cash and cash equivalents, accounts receivables, notes receivable and accounts payable. The estimated fair value of such instruments, excluding notes receivable, approximates their carrying value as reported in the Company’s Condensed Consolidated Balance Sheets due to their short-term nature. The estimated fair value of notes receivable approximates its carrying value due to the interest rates aligning with market rates. The fair value of such financial instruments is determined using the income approach based on the present value of estimated future cash flows. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. Recently Adopted Accounting Pronouncements Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at the beginning of fiscal 2018. In performing its analysis, the Company reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price. Comparative information from prior year periods has not been adjusted and continue to be reported under the accounting standards in effect for those periods under “Revenue Recognition” (“Topic 605”). Refer to Note 4 for further disclosure of the impact of the new guidance. During 13-week period ended July 3, 2018, the Company corrected certain errors related to the adoption of Topic 606 which resulted in additional expense of approximately $0.2 million related to the 13-week period ended April 4, 2018 financial statements. In relation to this adjustment, the Company adjusted the cumulative effect as an adjustment to the opening balance of accumulated deficit by $0.7 million. The Company determined that the corrections were neither quantitatively nor qualitatively material to fiscal year 2018 either individually or in the aggregate or to the trends of the reported results of operations. Liabilities In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products . The new guidance creates an exception under ASC 405-20, Liabilities-Extinguishments of Liabilities , to derecognize financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. In general, these liabilities may be extinguished proportionately in earnings as redemptions occur, or when redemption is remote if issuers are not entitled to the unredeemed stored value. The Company adopted this guidance effective January 3, 2018 in connection with its adoption of Topic 606. Refer to Note 4 for further disclosure of the impact of the new guidance. Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Stock Compensation In January 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Upcoming Accounting Pronouncements The Company is currently assessing the potential impact of the following pronouncements on its Condensed Consolidated Financial Statements and related disclosures: Leases In February 2016, the FASB issued ASU 2016-02, Leases Other Accounting Pronouncements The Company has not yet adopted and does not expect the adoption of the following pronouncements to have a significant impact on its Condensed Consolidated Financial Statements and related disclosures: Intangibles In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jul. 03, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 4. REVENUE RECOGNITION Adoption The Company adopted Topic 606 on January 3, 2018 using the modified retrospective transition method and recorded a decrease to opening accumulated deficit The adoption of this standard update resulted in no impact to the Company’s tax accounts due to the full valuation allowance. Comparative information from prior year periods has not been adjusted and continue to be reported under the accounting standards in effect for those periods under Topic 605. The adoption changed the timing of recognition of initial franchise fees, development fees, market opening fees for our international business and renewal and transfer fees, the reporting of advertising fund contributions and related expenditures, as well as the recognition and classification of gift card breakage. The cumulative effects of the changes made to the Condensed Consolidated Balance Sheets as of January 2, 2018, for the adoption of Topic 606 were as follows (in thousands): Balance at January 2, 2018 Adjustment due to Topic 606 Adjustment (1) Balance at January 3, 2018 Assets Prepaid expenses and other current assets $ 4,321 $ (726 ) $ 658 $ 4,253 Liabilities Accrued gift card liability 27,469 (10,103 ) 17,366 Other current liabilities 8,052 488 8,540 Deferred revenue 2,398 6,089 8,487 Shareholders’ (deficit) equity: Accumulated deficit (384,101 ) 2,800 658 (380,643 ) The following table presents a disaggregation of revenue from contracts with customers for the 13-week and 26-week periods ended July 3, 2018 and July 4, 2017 (in thousands): 13-Week Period Ended 26-Week Period Ended July 3, 2018 July 4, 2017 (2) July 3, 2018 July 4, 2017 (2) Company store revenue $ 11,058 $ 13,262 $ 20,367 $ 24,369 Franchise and related revenue: Royalties 6,986 6,599 12,923 12,156 Upfront fees 298 353 729 548 Advertising fees and other income: Advertising fund contributions 3,250 - 5,834 - Gift card breakage 678 - 1,702 - Other 2,223 300 3,911 1,054 Total revenue $ 24,493 $ 20,514 $ 45,466 $ 38,127 (1) As disclosed in Note 3, a prior period adjustment was made to the cumulative impact of the adoption of Topic 606. (2) As disclosed in Note 3, prior period amounts have not been adjusted under the modified retrospective method of adoption of Topic 606. Company stores – Revenue from Company Stores is recognized when product is sold as this is the point in time that control of the product transfers to the customer. Revenue is presented net of any taxes collected from customers and remitted to government entities. Customer payments are generally due at the time of sale. The adoption of Topic 606 did not impact the recognition of company store sales. Franchise and related revenue – Domestically, the Company sells individual franchises as well as territory arrangements in the form of multi-unit development agreements that grant the right to open and operate a specific number of stores in a specified geographic region. The development and franchise agreements typically require the franchisee to pay an initial, non-refundable fee prior to opening the respective location, and continuing royalty fees on a monthly basis based upon a percentage of franchisee net sales. The initial term of domestic franchise agreements is typically 10 years. Subject to the Company’s approval and the franchisee’s payment of a renewal fee, a franchisee may generally renew the franchise agreement upon its expiration. If approved, a franchisee may transfer a franchise agreement or development agreement to a new or existing franchisee, at which point a transfer fee is typically paid. Under the terms of our franchise agreements, the Company typically promises to provide franchise rights, pre-opening services such as operational materials, planning and functional training courses, and ongoing services, such as management of the advertising fund. Development agreements provide exclusive development rights and additional market opening and consulting services. All of these promised services, including development rights, are highly interrelated and are not considered to be individually distinct and the Company accounts for them as part of a single franchise right obligation. Therefore upon adoption of Topic 606, initial franchise fees, development fees and market opening fees (collectively, “upfront” fees) paid by franchisees for each arrangement are deferred and apportioned to each individual store and recognized during the respective franchise agreement from the date the store opens as this ensures that revenue recognition aligns with the customer’s access to the franchise right over the duration of the agreement. Internationally, the Company sells master franchise agreements that grant the master franchisee the right to develop and operate, and in some instances, sub-franchise, a certain number of stores within a particular geographic area. The master franchisee is typically required to pay an upfront market opening fee upon entering into the master franchise agreement and an upfront initial franchise fee for each developed store prior to each respective opening. The master franchisee will also pay continuing fees, or royalty income, generally on a monthly basis based upon a percentage of sales. Generally, the master franchise agreement serves as the franchise agreement for the underlying stores, and the initial franchise term provided for each store is typically 10 years. Under either domestic development agreements or international master franchise agreements, the upfront fee amount is based on the number of stores to be opened pursuant to the respective agreement. The area developer generally pays one-half of the initial non-refundable fee multiplied by each store to be built as a non-refundable development fee upon execution of the agreement. This deposit is included in deferred revenue or other current liabilities in the accompanying Condensed Consolidated Financial Statements. The development and master franchise agreements are generally for a term of 10 years. Each time a store is opened under these agreements, the Company credits the franchisee one-half of the upfront fee as part of the development fee and the franchisee is required to pay the remaining one-half of the upfront fee. Royalty income is recognized during the respective franchise agreement based on the royalties earned each period as the underlying franchise store sales occur. Renewal fees are generally recognized over the renewal term for the respective store from the start of the renewal period. Transfer fees are recognized over the remaining term of the franchise agreement beginning at the time of transfer. Previously, under Topic 605, these fees were generally recognized upfront upon either opening of the respective store, when a renewal agreement became effective, or upon transfer of a franchise agreement. Transfer fees are included within franchise fees and related revenue in the Condensed Consolidated Statements of Operations. The new guidance did not materially impact the recognition of royalty income. Advertising fees and other income – Advertising revenue is comprised of contributions from franchisees to the Company’s advertising fund. The Company participates with its franchisees in an advertising fund to collect and administer funds contributed for use in advertising and promotional programs, which are designed to increase sales and enhance the reputation of the Company and its franchise owners. Contributions to the advertising fund are required for Company Stores and traditional Franchise Stores. These contributions represent sales-based royalties related entirely to the single obligation under the franchise agreement. The franchise agreements typically require the franchisee to pay continuing advertising fees on a monthly basis based on a percentage of net sales, which are recognized during the respective franchise agreement based on the fees earned each period as the underlying store sales occur. Under Topic 606, the Company has determined that although the marketing fees are not separate performance obligations distinct from underlying franchise right, the Company acts as the principal as it is primarily responsible for the fulfilment and control of the marketing services. As a result, the Company records advertising fees in revenues and related advertising fund expenditures in expenses in the Condensed Consolidated Statement of Operations. The Company historically presented the net activities of the advertising fund within expenses in the Condensed Consolidated Statements of Operations. While this reclassification will impact the gross amount of reported advertising income and related expenses, the impact is an offsetting increase to both revenue and expense with no impact income from operations or net income. The advertising fund assets, consisting primarily of cash received from the Company and franchisees and accounts receivable from franchisees, can only be used for selected purposes. The cash contributed by franchisees is recorded as a liability against which specified advertising costs are charged. Advertising fund assets as of July 3, 2018 and January 2, 2018 include $2.6 million and $2.0 million of receivables from franchisees, net of allowances, respectively, which is recorded in Receivables in the Company’s Condensed Consolidated Balance Sheets. Advertising fund liabilities as of July 3, 2018 and January 2, 2018, were $3.0 million and $2.0 million, respectively, and are reported in other current liabilities in the Company’s Condensed Consolidated Balance Sheets. The Company sells gift cards to its customers in its retail stores, through its website and through resellers. The Company’s gift cards do not have an expiration date and are not redeemable for cash except where required by law. Revenue from gift cards is recognized upon redemption in exchange for product and reported within Company store revenue in the Condensed Consolidated Statements of Operations. Until redemption, outstanding customer balances are recorded as a liability. Previously, under Topic 605, the Company recognized revenue from gift cards when the likelihood of the gift card being redeemed by the customer was remote (also referred to as “breakage”) and the Company determined that it did not have a legal obligation to remit the unredeemed gift cards to the relevant jurisdictions. The Company determined the gift card breakage amount based upon its historical redemption patterns. Gift card breakage revenue was previously included in other operating, net, in the Condensed Consolidated Statements of Operations. Under Topic 606, the Company recognizes gift card breakage proportional to actual gift card redemptions, which is recorded in Advertising fees and other income in the Condensed Consolidated Statements of Operations. Upon adoption of Topic 606, gift card liabilities of $10.1 million, were reclassified to accumulated deficit in the Condensed Consolidated Balance Sheets, resulting in a decrease to the opening accumulated deficit balance. The Company’s loyalty program allows customers to earn points based on the volume of their purchases. Under the loyalty program, a customer receives a discount on future purchases when a defined number of points have been earned. As a result, each loyalty point is deemed to represent a separate performance obligation, with transaction price allocated to each loyalty point earned at the time of sale. The transaction price allocated to loyalty points is initially recorded in deferred revenue and recognized when the customers redeem the loyalty points they earned. As part of the Company’s franchise agreements, the franchisee purchases products and supplies from designated vendors through the Company’s platform. The Company is entitled to receive rebates from the distributor on product purchases by franchisees through the platform. The Company does not possess control of the products prior to their transfer to the franchisee and has determined under Topic 606 that it is acting as an agent for accounting purposes. As a result, the Company recognizes the rebates as franchisees purchase products and supplies from distributor, which are reported as other revenue within Advertising fees and other income in the Condensed Consolidated Statements of Operations. Revenues related to the Company’s flexible format franchise locations are recognized when the products are delivered to the operators of the Jamba Juice Express. Licensing fees from Consumer Packaged Goods (“CPG”) products sold to retail outlets and online and royalties from licensed CPG products. Revenue from sale of CPG products are recognized when the products are delivered to the customer. License revenue from CPG products is based on a percentage of product sales and is recognized as revenue upon the sale of the product to retail outlets which are reported as other revenue with in Advertising fees and other income. Contract balances and transaction price allocated to remaining performance obligations Franchise fees, development fees and market opening fee payments (“upfront fees”) received by the Company are recorded as deferred revenue in the Condensed Consolidated Balance Sheet. Deferred revenue is reduced as fees are recognized in revenue on a straight-line basis during the franchise agreement for each respective store. The estimated amount of points redeemable for discounts on future purchases under the Company’s loyalty program are also recorded in deferred revenue and recognized when the customers redeem the points they earned. Deferred revenue is included in other current liabilities and other long-term liabilities in the Company’s Condensed Consolidated Balance Sheets. The deferred revenue balance subject to Topic 606 was $8.6 million and $1.3 million as of July 3, 2018 and January 2, 2018, respectively. During the 13-week and 26-week periods ended July 3, 2018, the Company recognized $0.3 million and $0.7 million of revenue that was included in the deferred revenue balance as of January 3, 2018. Deferred gift card liabilities are reported within accrued gift card liability in the Condensed Consolidated Balance Sheets and consist of the unredeemed portion of gift cards sold. The balance of accrued gift card liabilities represents our remaining performance obligations to our customers. During the 13-week and 26-week periods ended July 3, 2018, the Company recognized revenue of $4.3 million and $9.2 million, respectively, from gift card redemptions. The Company expects to recognize approximately $5.5 million of revenue in the future related to franchise obligations that are either unsatisfied or partially unsatisfied at July 3, 2018. This estimate does not contemplate future franchise renewals and does not include estimates of future sales-based royalties as a result of applying the sales-based royalty disclosure exemption. The estimate also excludes $6.5 million of consideration allocated to stores that have not yet opened, so the fees are not yet being amortized. The weighted average remaining amortization period for deferred franchise and renewal fees related to open stores is 3.5 years. As of July 3, 2018, there were no contract assets from contracts with customers. Impact to Prior Period information In accordance with the new revenue standard requirements, the following tables summarize the effects of the new standard on selected unaudited line items within the Company’s Condensed Consolidated Statement of Operations for the 13-week period ended July 3, 2018 (in thousands): 13-Week Period Ended As Reported Balances without the adoption of Topic 606 Effect of Change Higher/(Lower) Revenue: Franchise and related revenue $ 7,285 $ 7,502 $ (217 ) Advertising fees and other income 6,150 - 6,150 General and administrative 10,552 8,494 2,058 Advertising expense 3,544 - 3,544 Other operating, net 584 224 360 Income (loss) from operations (210 ) (181 ) (29 ) Income (loss) before income taxes (285 ) (256 ) (29 ) Income tax (expense) benefit (1 ) (1 ) - Net income (loss) $ (286 ) $ (257 ) $ (29 ) The following tables summarize the effects of the new standard on selected unaudited line items within the Company’s Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheets for the 26-week period ended July 3, 2018 (in thousands): 26-Week Period Ended As Reported Balances without the adoption of Topic 606 Effect of Change Higher/(Lower) Revenue: Franchise and related revenue $ 13,653 $ 13,898 $ (245 ) Advertising fees and other income 11,446 - 11,446 General and administrative 18,575 15,063 3,512 Advertising expense 6,560 - 6,560 Other operating, net 854 642 212 Income (loss) from operations (91 ) (1,008 ) 917 Income (loss) before income taxes (242 ) (1,159 ) 917 Income tax (expense) benefit (6 ) (6 ) - Net income (loss) $ (248 ) $ (1,165 ) $ 917 26-Week Period Ended As Reported Balances without the adoption of Topic 606 Effect of Change Higher/(Lower) Assets Prepaid expenses and other current assets $ 3,509 $ 3,469 $ 40 Liabilities Accrued gift card liability 13,456 24,215 (10,759 ) Other current liabilities 9,830 8,397 1,433 Deferred revenue 7,715 2,724 4,991 Accumulated deficit (380,891 ) (385,266 ) 4,375 |
Severance and Other Compensatio
Severance and Other Compensation | 6 Months Ended |
Jul. 03, 2018 | |
Severance Disclosure [Abstract] | |
Severance and Other Compensation | 5. SEVERANCE AND OTHER COMPENSATION In connection with the relocation of the Company’s headquarters from Emeryville, California to Frisco, Texas, in the fourth quarter of fiscal year 2016, the Company incurred severance obligations. At July 3, 2018 and January 2, 2018, $0.1 million and $0.3 million of severance liability were classified in account payable and accrued expenses, respectively, in the Condensed Consolidated Balance Sheets. The Company made severance payments of $0.1 million during the 13-week and 26-week periods ended July 3, 2018 . The remaining severance payments will be completed by the end of the fourth quarter in fiscal 2018. During the first quarter of fiscal 2018, we recorded severance of $0.3 million for the departure of one senior executive. The remaining severance payments will be completed by the end of the first quarter in fiscal 2019. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jul. 03, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 6. FAIR VALUE MEASUREMENT Financial Assets and Liabilities Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: • Level 1: Quoted prices are available in active markets for identical assets or liabilities. • Level 2: Inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable. • Level 3: Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions that market participants would use in pricing. Non-financial Assets and Liabilities The Company’s non-financial assets and liabilities primarily consist of long-lived assets, trademarks and other intangibles, and are reported at carrying value. They are not required to be measured at fair value on a recurring basis. The Company evaluates long-lived assets for impairment when facts and circumstances indicate that their carrying values may not be recoverable. Trademarks and other intangibles are evaluated for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company had no impairments during the 13-week and 26-week periods ended July 3, 2018 and July 4, 2017. |
Credit Agreement
Credit Agreement | 6 Months Ended |
Jul. 03, 2018 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 7. CREDIT AGREEMENT On November 3, 2016, the Company entered into a credit agreement with Cadence Bank, NA (“Credit Agreement”). The Credit Agreement provides an aggregate principal amount of up to $10.0 million. The Credit Agreement also allows the Company to request an additional $5.0 million for an aggregate principal amount of up to $15.0 million. The Credit Agreement accrues interest at a per annum rate equal to the LIBOR rate plus 2.50% and has a five-year term. Under the terms of the Credit Agreement, the Company is required to either maintain minimum cash or consolidated EBITDA levels and a minimum fixed charge coverage ratio. To acquire the Credit Agreement, the Company incurred upfront fees, which are being amortized over the term of the Credit Agreement. As of July 3, 2018, the unamortized commitment fee amount was not material and is recorded in prepaid expenses in the Condensed Consolidated Balance Sheets. During the 13-week and 26-week periods ended July 3, 2018, there were no borrowings under the Credit Agreement. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jul. 03, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 8. SHARE-BASED COMPENSATION The Jamba, Inc. 2013 Equity Incentive Plan, as amended and restated (“the Plan”) authorizes the Company to provide incentive compensation in the form of stock options (“options”), restricted stock and stock units (“RSUs”), performance based and market based shares and units (“PSUs”) and (“MBRSUs”), other stock-based and restricted stock-based awards (“RSAs”), cash-based awards and deferred compensation awards. In addition, the Company periodically authorizes grants of stock-based compensation as inducement awards to new employees. This type of award does not require shareholder approval in accordance with Rule 5635(c)(4) of the Nasdaq listing rules. Share-based compensation expense, which is included in general and administrative expenses in the Condensed Consolidated Statements of Operations, was $2.1 million and $2.2 million for the 13-week and 26-week periods ended July 3, 2018 $0.5 million and $0.6 million for the Stock Options The fair value of options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions. 26-Week Period Ended July 3, 2018 Weighted-average risk-free interest rate 2.9 % Expected life of options (years) 5.39 Expected stock volatility 33.2 % Expected dividend yield 0 % A summary of stock option activities for the 26-week period ended as of July 3, 2018 are presented below (shares and aggregate intrinsic value in thousands): Weighted-Average Number of Weighted-Average Contractual Term Aggregate Options Exercise Price Remaining Intrinsic Value Outstanding at January 2, 2018 639 $ 13.16 4.99 $ 13 Granted 48 9.71 Exercised - - Canceled (209 ) 13.67 Outstanding at July 3, 2018 478 $ 12.59 6.64 $ 124 Options vested or expected to vest at July 3, 2018 478 $ 12.59 6.64 $ 124 Options exercisable at July 3, 2018 306 $ 12.95 5.74 $ 45 During the 13-week and 26-week periods ended July 3, 2018, 48,000 shares of the Company’s common stock were granted as inducement awards to new employees. The weighted average grant date fair value of options granted was $3.44. During the 26-week period ended July 4, 2017, 15,000 shares of the Company’s common stock were granted as an inducement award to a new employee. The weighted average grant date fair value of options granted was $3.54. At July 3, 2018, stock options vested or expected to vest totaled 0.5 million. The remaining expense to amortize is approximately $1.4 million over a weighted-average remaining recognition period of approximately 1.6 years. Time-Based Restricted Stock Units — Information regarding activities during the 26-week period ended July 3, 2018 for outstanding time-based RSUs is as follows (shares in thousands): Weighted-Average Number of Grant Date Shares of RSUs Fair Value (per share) Outstanding as of January 2, 2018 58 $ 13.14 Granted 198 10.00 Vested (123 ) 13.25 Forfeited (4 ) 12.55 Outstanding as of July 3, 2018 129 $ 9.96 During the 13-week and 26-week periods ended July 3, 2018, the Company granted 127,671 time-based RSUs at a weighted average grant date fair value of $9.71 with a remaining vesting period of two years. The fair value of restricted stock units is the market close price of our common stock on the date of the grant. During the 13-week and 26-week periods ended July 3, 2018, the Company granted 70,206 time-based RSUs to the Board of Directors as part of their compensation. These awards generally vest within one year from the date of grant. Performance- Based Restricted Stock Units — Information regarding activities during fiscal 2018 for outstanding PSUs is as follows (shares in thousands): Weighted-Average Number of Grant Date Shares of PSUs Fair Value (per share) Unvested as of January 2, 2018 2 $ 14.04 Granted - - Cancelled (2 ) 14.04 Forfeited - - Unvested as of July 3, 2018 - $ - There were no PSUs granted during the 13 week and 26-week periods ended July 3, 2018 and January 2, 2018. Market-Based Restricted Stock Units — Information regarding activities during fiscal 2018 for outstanding MBRSUs is as follows (shares in thousands): Weighted-Average Number of Grant Date Market-based RSUs Fair Value (per share) Unvested as of January 2, 2018 505 $ 2.80 Granted 105 3.51 Vested - - Forfeited (70 ) 1.06 Unvested as of July 3, 2018 540 $ 3.74 The market-based RSU’s will vest upon achievement of compound annual stock price growth rate targets of 15%, 22.5% and 30%. The estimated requisite service period in general ranges between approximately eighteen and thirty months. Compensation expense related to market-based RSUs over the requisite service period on a straight-line basis. The requisite service period is a measure of the expected time to reach the respective vesting threshold. The Company estimated the expense and service period by utilizing a Monte Carlo simulation, considering only those stock price-paths in which the threshold was exceeded. There were 105,000 market-based RSUs granted during the 13-week and 26-week periods ended July 3, 2018 at a weighted average grant date fair value of $3.51. There were no market-based RSUs granted during the 13-week period ended July 4, 2017, and there were 70,000 market-based RSUs granted during the 26-week period ended July 4, 2017, at a weighted average grant date fair value of $1.06. At July 3, 2018, unvested share-based compensation for market-based RSUs was $0.3 million, which will be recognized over the remaining weighted-average recognition period of approximately 2.5 years. |
Other Operating, Net
Other Operating, Net | 6 Months Ended |
Jul. 03, 2018 | |
Other Operating Net [Abstract] | |
Other Operating, Net | 9. OTHER OPERATING, NET For the 13-week and 26-week periods ended July 3, 2018 and July 4, 2017, the components of other operating, net were as follows (in thousands): 13-Week Period Ended 26-Week Period Ended July 3, 2018 (1) July 4, 2017 July 3, 2018 (1) July 4, 2017 Franchise gift card discount expense $ 31 $ 157 $ 31 $ 227 Franchise other expense 407 432 562 961 Gift card expense 486 189 694 452 Gift card breakage income - (1,218 ) - (1,948 ) Franchise sublease income (150 ) (162 ) (215 ) (340 ) Other (income) expense (190 ) (265 ) (218 ) (143 ) Total other operating, net $ 584 $ (867 ) $ 854 $ (791 ) (1) Refer to Note 4, for the impact of the new guidance to breakage income. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 03, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES The Company records a liability for litigation claims and contingencies when payment is probable and the amount of loss can be reasonably estimated. During the 26-week period ended July 4, 2017, the Company had recorded a liability for an ongoing litigation matter by $1.0 million in the normal course of business based on the available information at the time. The estimated losses are included in general and administrative expenses in the Company’s Condensed Consolidated Financial Statements of Operations. No additional liabilities were incurred during the 13-week or 26-week periods ended July 3, 2018. As of July 3, 2018 and January 2, 2018, the liabilities associated with these matters are recorded in account payable and accrued expenses in the Condensed Consolidated Balance Sheets and was $2.0 million, respectively. The Company is a defendant in litigation arising in the normal course of business. Although there can be no assurance as to the ultimate disposition of these matters, it is the opinion of the Company’s management, based upon the information available at this time, that the expected outcome of these matters, individually or in the aggregate, will not have a material adverse effect on the results of operations, liquidity or financial condition of the Company. |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jul. 03, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 11. RELATED-PARTY TRANSACTIONS For the 13-week and 26-week periods ended July 3, 2018 and July 4, 2017, the Company received $0.1 million and $0.1 million, respectively, from Sodexo related to licensing fees for Jamba units operated by Sodexo. One Jamba Juice Director is an executive with Sodexo. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 03, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. SUBSEQUENT EVENTS The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. See Note 2 related to the pending merger with Focus Brands Inc. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 03, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of presentation and consolidation The accompanying unaudited Condensed Consolidated Financial Statements of Jamba, Inc. have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10-Q. The January 2, 2018 Condensed Consolidated Balance Sheet was derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of the 13-week or 26-week periods ended July 3, 2018 are not necessarily indicative of the results of operations to be expected for the entire fiscal year. The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiary, Jamba Juice Company. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to the Company’s prior financial statements to conform to current year presentation. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended January 2, 2018. |
Use of Estimates | Use of estimates The preparation of the Condensed Consolidated Financial Statements and accompanying notes are in conformity with U.S. GAAP. Preparing Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity during a period from transactions and other events, excluding changes resulting from investments from owners and distributions to owners. The Company currently has no components of comprehensive income other than net income (loss), therefore no separate statement of comprehensive income is presented. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income (loss) per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share is computed based on the weighted-average number of common shares and potentially dilutive securities, which includes outstanding options and restricted stock awards granted under the Company’s stock option plans. Anti-dilutive common stock equivalents totaling 1.0 million and 1.1 million were excluded from the calculation of diluted weighted-average shares outstanding for the 13-week and 26-week periods ended July 3, 2018, respectively. Anti-dilutive common stock equivalents totaling 1.6 million and 2.0 million were excluded from the calculation of diluted weighted-average shares outstanding for the 13-week and 26-week periods ended July 4, 2017, respectively. Basic and diluted income (loss) per share do not differ when there is a net loss position as potentially dilutive securities are anti-dilutive. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following instruments are not measured at fair value on the Company’s Condensed Consolidated Balance Sheets but require disclosure of their fair values: cash and cash equivalents, accounts receivables, notes receivable and accounts payable. The estimated fair value of such instruments, excluding notes receivable, approximates their carrying value as reported in the Company’s Condensed Consolidated Balance Sheets due to their short-term nature. The estimated fair value of notes receivable approximates its carrying value due to the interest rates aligning with market rates. The fair value of such financial instruments is determined using the income approach based on the present value of estimated future cash flows. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit at the beginning of fiscal 2018. In performing its analysis, the Company reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price. Comparative information from prior year periods has not been adjusted and continue to be reported under the accounting standards in effect for those periods under “Revenue Recognition” (“Topic 605”). Refer to Note 4 for further disclosure of the impact of the new guidance. During 13-week period ended July 3, 2018, the Company corrected certain errors related to the adoption of Topic 606 which resulted in additional expense of approximately $0.2 million related to the 13-week period ended April 4, 2018 financial statements. In relation to this adjustment, the Company adjusted the cumulative effect as an adjustment to the opening balance of accumulated deficit by $0.7 million. The Company determined that the corrections were neither quantitatively nor qualitatively material to fiscal year 2018 either individually or in the aggregate or to the trends of the reported results of operations. Liabilities In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products . The new guidance creates an exception under ASC 405-20, Liabilities-Extinguishments of Liabilities , to derecognize financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. In general, these liabilities may be extinguished proportionately in earnings as redemptions occur, or when redemption is remote if issuers are not entitled to the unredeemed stored value. The Company adopted this guidance effective January 3, 2018 in connection with its adoption of Topic 606. Refer to Note 4 for further disclosure of the impact of the new guidance. Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Stock Compensation In January 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. |
Upcoming Accounting Pronouncements | Upcoming Accounting Pronouncements The Company is currently assessing the potential impact of the following pronouncements on its Condensed Consolidated Financial Statements and related disclosures: Leases In February 2016, the FASB issued ASU 2016-02, Leases |
Other Accounting Pronouncements | Other Accounting Pronouncements The Company has not yet adopted and does not expect the adoption of the following pronouncements to have a significant impact on its Condensed Consolidated Financial Statements and related disclosures: Intangibles In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jul. 03, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Schedule of Disaggregation of Revenue from Contracts with Customers | The following table presents a disaggregation of revenue from contracts with customers for the 13-week and 26-week periods ended July 3, 2018 and July 4, 2017 (in thousands): 13-Week Period Ended 26-Week Period Ended July 3, 2018 July 4, 2017 (2) July 3, 2018 July 4, 2017 (2) Company store revenue $ 11,058 $ 13,262 $ 20,367 $ 24,369 Franchise and related revenue: Royalties 6,986 6,599 12,923 12,156 Upfront fees 298 353 729 548 Advertising fees and other income: Advertising fund contributions 3,250 - 5,834 - Gift card breakage 678 - 1,702 - Other 2,223 300 3,911 1,054 Total revenue $ 24,493 $ 20,514 $ 45,466 $ 38,127 (1) As disclosed in Note 3, a prior period adjustment was made to the cumulative impact of the adoption of Topic 606. (2) As disclosed in Note 3, prior period amounts have not been adjusted under the modified retrospective method of adoption of Topic 606. |
ASU 2014-09 [member] | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Summary of Cumulative Effects of Changes Made to Condensed Consolidated Balance Sheets Due to Adoption of Topic 606 | The cumulative effects of the changes made to the Condensed Consolidated Balance Sheets as of January 2, 2018, for the adoption of Topic 606 were as follows (in thousands): Balance at January 2, 2018 Adjustment due to Topic 606 Adjustment (1) Balance at January 3, 2018 Assets Prepaid expenses and other current assets $ 4,321 $ (726 ) $ 658 $ 4,253 Liabilities Accrued gift card liability 27,469 (10,103 ) 17,366 Other current liabilities 8,052 488 8,540 Deferred revenue 2,398 6,089 8,487 Shareholders’ (deficit) equity: Accumulated deficit (384,101 ) 2,800 658 (380,643 ) |
Summary of Effects of New Standard on Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheets | In accordance with the new revenue standard requirements, the following tables summarize the effects of the new standard on selected unaudited line items within the Company’s Condensed Consolidated Statement of Operations for the 13-week period ended July 3, 2018 (in thousands): 13-Week Period Ended As Reported Balances without the adoption of Topic 606 Effect of Change Higher/(Lower) Revenue: Franchise and related revenue $ 7,285 $ 7,502 $ (217 ) Advertising fees and other income 6,150 - 6,150 General and administrative 10,552 8,494 2,058 Advertising expense 3,544 - 3,544 Other operating, net 584 224 360 Income (loss) from operations (210 ) (181 ) (29 ) Income (loss) before income taxes (285 ) (256 ) (29 ) Income tax (expense) benefit (1 ) (1 ) - Net income (loss) $ (286 ) $ (257 ) $ (29 ) The following tables summarize the effects of the new standard on selected unaudited line items within the Company’s Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheets for the 26-week period ended July 3, 2018 (in thousands): 26-Week Period Ended As Reported Balances without the adoption of Topic 606 Effect of Change Higher/(Lower) Revenue: Franchise and related revenue $ 13,653 $ 13,898 $ (245 ) Advertising fees and other income 11,446 - 11,446 General and administrative 18,575 15,063 3,512 Advertising expense 6,560 - 6,560 Other operating, net 854 642 212 Income (loss) from operations (91 ) (1,008 ) 917 Income (loss) before income taxes (242 ) (1,159 ) 917 Income tax (expense) benefit (6 ) (6 ) - Net income (loss) $ (248 ) $ (1,165 ) $ 917 26-Week Period Ended As Reported Balances without the adoption of Topic 606 Effect of Change Higher/(Lower) Assets Prepaid expenses and other current assets $ 3,509 $ 3,469 $ 40 Liabilities Accrued gift card liability 13,456 24,215 (10,759 ) Other current liabilities 9,830 8,397 1,433 Deferred revenue 7,715 2,724 4,991 Accumulated deficit (380,891 ) (385,266 ) 4,375 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jul. 03, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Fair Value of Options Estimated at Date of Grant Using Black-Scholes Option Pricing Model with Weighted-Average Assumptions | The fair value of options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions. 26-Week Period Ended July 3, 2018 Weighted-average risk-free interest rate 2.9 % Expected life of options (years) 5.39 Expected stock volatility 33.2 % Expected dividend yield 0 % |
Summary of Stock Option Activities | A summary of stock option activities for the 26-week period ended as of July 3, 2018 are presented below (shares and aggregate intrinsic value in thousands): Weighted-Average Number of Weighted-Average Contractual Term Aggregate Options Exercise Price Remaining Intrinsic Value Outstanding at January 2, 2018 639 $ 13.16 4.99 $ 13 Granted 48 9.71 Exercised - - Canceled (209 ) 13.67 Outstanding at July 3, 2018 478 $ 12.59 6.64 $ 124 Options vested or expected to vest at July 3, 2018 478 $ 12.59 6.64 $ 124 Options exercisable at July 3, 2018 306 $ 12.95 5.74 $ 45 |
Summary of Outstanding Time-Based Restricted Stock Units | Information regarding activities during the 26-week period ended July 3, 2018 for outstanding time-based RSUs is as follows (shares in thousands): Weighted-Average Number of Grant Date Shares of RSUs Fair Value (per share) Outstanding as of January 2, 2018 58 $ 13.14 Granted 198 10.00 Vested (123 ) 13.25 Forfeited (4 ) 12.55 Outstanding as of July 3, 2018 129 $ 9.96 |
Summary of Outstanding Performance Stock Units | Information regarding activities during fiscal 2018 for outstanding PSUs is as follows (shares in thousands): Weighted-Average Number of Grant Date Shares of PSUs Fair Value (per share) Unvested as of January 2, 2018 2 $ 14.04 Granted - - Cancelled (2 ) 14.04 Forfeited - - Unvested as of July 3, 2018 - $ - |
Summary of Outstanding Market-Based Restricted Stock Units | Information regarding activities during fiscal 2018 for outstanding MBRSUs is as follows (shares in thousands): Weighted-Average Number of Grant Date Market-based RSUs Fair Value (per share) Unvested as of January 2, 2018 505 $ 2.80 Granted 105 3.51 Vested - - Forfeited (70 ) 1.06 Unvested as of July 3, 2018 540 $ 3.74 |
Other Operating, Net (Tables)
Other Operating, Net (Tables) | 6 Months Ended |
Jul. 03, 2018 | |
Other Operating Net [Abstract] | |
Schedule of Components of Other Operating, Net | For the 13-week and 26-week periods ended July 3, 2018 and July 4, 2017, the components of other operating, net were as follows (in thousands): 13-Week Period Ended 26-Week Period Ended July 3, 2018 (1) July 4, 2017 July 3, 2018 (1) July 4, 2017 Franchise gift card discount expense $ 31 $ 157 $ 31 $ 227 Franchise other expense 407 432 562 961 Gift card expense 486 189 694 452 Gift card breakage income - (1,218 ) - (1,948 ) Franchise sublease income (150 ) (162 ) (215 ) (340 ) Other (income) expense (190 ) (265 ) (218 ) (143 ) Total other operating, net $ 584 $ (867 ) $ 854 $ (791 ) (1) Refer to Note 4, for the impact of the new guidance to breakage income. |
Description of Business - Addit
Description of Business - Additional Information (Details) | Jul. 03, 2018 |
Jamba Juice stores [Member] | |
Franchisor Disclosure [Line Items] | |
Number of stores | 848 |
Company Stores [Member] | |
Franchisor Disclosure [Line Items] | |
Number of stores | 51 |
Franchise Stores [Member] | |
Franchisor Disclosure [Line Items] | |
Number of stores | 737 |
International Stores [Member] | |
Franchisor Disclosure [Line Items] | |
Number of stores | 60 |
Pending Merger with Focus Bra23
Pending Merger with Focus Brands - Additional Information (Details) - $ / shares | Aug. 01, 2018 | Jul. 03, 2018 | Jan. 02, 2018 |
Business Acquisition [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Merger Agreement [Member] | Focus Brands Inc [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, effective date | Aug. 1, 2018 | ||
Common stock, par value (in dollars per share) | $ 0.001 | ||
Business acquisition, Purchase Price | $ 13 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 03, 2018 | Apr. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | Jan. 02, 2018 | |
Antidilutive securities excluded from computation of earnings per share, amount | 1 | 1.6 | 1.1 | 2 | ||
Accumulated deficit | $ (380,891) | $ (380,891) | $ (384,101) | |||
Adjustment Due to Topic 606 [Member] | ||||||
Additional expense incurred by company due to error corrections | $ 200 | |||||
Accumulated deficit | $ 700 | $ 700 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jul. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | Jan. 03, 2018 | Jan. 02, 2018 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Decrease to opening accumulated deficit | $ (380,891,000) | $ (380,891,000) | $ (384,101,000) | |||
Commitments from franchise agreements | 10 years | |||||
Accounts receivable, net | 2,600,000 | $ 2,600,000 | 2,000,000 | |||
Advertising fund liabilities | 3,000,000 | 3,000,000 | 2,000,000 | |||
Gift card liabilities | 13,456,000 | 13,456,000 | 27,469,000 | |||
Deferred revenue recognized | 300,000 | 700,000 | ||||
Revenue recognized | 24,493,000 | $ 20,514,000 | 45,466,000 | $ 38,127,000 | ||
Revenue expected to recognize in future related to franchise obligations | 5,500,000 | 5,500,000 | ||||
Consideration allocated to stores not opened | 6,500,000 | $ 6,500,000 | ||||
Weighted average remaining amortization period for deferred franchise and renewal fees related to open stores | 3 years 6 months | |||||
Contract assets from contracts with customers | 0 | $ 0 | ||||
Gift Card Redemptions [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Revenue recognized | 4,300,000 | $ 9,200,000 | ||||
Master Franchise Agreement [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Initial franchise term provided for each store | 10 years | |||||
License Agreement Terms [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Commitments from franchise agreements | 10 years | |||||
Adjustment Due to Topic 606 [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Decrease to opening accumulated deficit | 700,000 | $ 700,000 | ||||
ASU 2014-09 [member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Decrease to opening accumulated deficit | $ (380,643,000) | |||||
Gift card liabilities | 10,100,000 | 10,100,000 | 17,366,000 | |||
Deferred revenue | 8,600,000 | 8,600,000 | 1,300,000 | |||
ASU 2014-09 [member] | Adjustment Due to Topic 606 [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Decrease to opening accumulated deficit | 4,375,000 | 4,375,000 | $ (3,500,000) | 2,800,000 | ||
Gift card liabilities | $ (10,759,000) | $ (10,759,000) | $ (10,103,000) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Cumulative Effects of Changes to Condensed Consolidated Balance Sheets for Adoption of Topic 606 (Details) - USD ($) $ in Thousands | Jul. 03, 2018 | Jan. 03, 2018 | Jan. 02, 2018 |
ASSETS | |||
Prepaid expenses and other current assets | $ 3,509 | $ 4,321 | |
Liabilities | |||
Accrued gift card liability | 13,456 | 27,469 | |
Other current liabilities | 9,830 | 8,052 | |
Deferred revenue | 7,715 | 2,398 | |
Shareholders’ (deficit) equity: | |||
Accumulated deficit | (380,891) | (384,101) | |
Adjustment Due to Topic 606 [Member] | |||
Shareholders’ (deficit) equity: | |||
Accumulated deficit | 700 | ||
ASU 2014-09 [member] | |||
ASSETS | |||
Prepaid expenses and other current assets | $ 4,253 | ||
Liabilities | |||
Accrued gift card liability | 10,100 | 17,366 | |
Other current liabilities | 8,540 | ||
Deferred revenue | 8,487 | ||
Shareholders’ (deficit) equity: | |||
Accumulated deficit | (380,643) | ||
ASU 2014-09 [member] | Adjustment Due to Topic 606 [Member] | |||
ASSETS | |||
Prepaid expenses and other current assets | 40 | (726) | |
Liabilities | |||
Accrued gift card liability | (10,759) | (10,103) | |
Other current liabilities | 1,433 | 488 | |
Deferred revenue | 4,991 | 6,089 | |
Shareholders’ (deficit) equity: | |||
Accumulated deficit | $ 4,375 | $ (3,500) | 2,800 |
ASU 2014-09 [member] | Adjustment Due to Topic 606 [Member] | Adjustment [Member] | |||
ASSETS | |||
Prepaid expenses and other current assets | 658 | ||
Shareholders’ (deficit) equity: | |||
Accumulated deficit | $ 658 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregation of Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 24,493 | $ 20,514 | $ 45,466 | $ 38,127 |
Company Store Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 11,058 | 13,262 | 20,367 | 24,369 |
Royalties [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 6,986 | 6,599 | 12,923 | 12,156 |
Upfront Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 298 | 353 | 729 | 548 |
Advertising Fund Contributions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 3,250 | 5,834 | ||
Gift Card Breakage [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 678 | 1,702 | ||
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 2,223 | $ 300 | $ 3,911 | $ 1,054 |
Revenue Recognition - Summary28
Revenue Recognition - Summary of Effects of New Standard on Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 24,493 | $ 20,514 | $ 45,466 | $ 38,127 |
General and administrative | 10,552 | 6,757 | 18,575 | 15,358 |
Advertising expense | 3,544 | 6,560 | ||
Other operating, net | 584 | (867) | 854 | (791) |
Income (loss) from operations | (210) | 1,720 | (91) | (1,317) |
Income (loss) before income taxes | (285) | 1,678 | (242) | (1,388) |
Income tax (expense) benefit | (1) | 47 | (6) | (39) |
Net income (loss) | (286) | $ 1,725 | (248) | $ (1,427) |
Balances Without the Adoption of Topic 606 [Member] | ASU 2014-09 [member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
General and administrative | 8,494 | 15,063 | ||
Other operating, net | 224 | 642 | ||
Income (loss) from operations | (181) | (1,008) | ||
Income (loss) before income taxes | (256) | (1,159) | ||
Income tax (expense) benefit | (1) | (6) | ||
Net income (loss) | (257) | (1,165) | ||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
General and administrative | 2,058 | 3,512 | ||
Advertising expense | 3,544 | 6,560 | ||
Other operating, net | 360 | 212 | ||
Income (loss) from operations | (29) | 917 | ||
Income (loss) before income taxes | (29) | 917 | ||
Net income (loss) | (29) | 917 | ||
Franchise and Related Revenue [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 7,285 | 13,653 | ||
Franchise and Related Revenue [Member] | Balances Without the Adoption of Topic 606 [Member] | ASU 2014-09 [member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 7,502 | 13,898 | ||
Franchise and Related Revenue [Member] | Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | (217) | (245) | ||
Advertising Fees and Other Income [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 6,150 | 11,446 | ||
Advertising Fees and Other Income [Member] | Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 6,150 | $ 11,446 |
Revenue Recognition - Summary29
Revenue Recognition - Summary of Effects of New Standard on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jul. 03, 2018 | Jan. 03, 2018 | Jan. 02, 2018 |
ASSETS | |||
Prepaid expenses and other current assets | $ 3,509 | $ 4,321 | |
Liabilities | |||
Accrued gift card liability | 13,456 | 27,469 | |
Other current liabilities | 9,830 | 8,052 | |
Deferred revenue | 7,715 | 2,398 | |
Accumulated deficit | (380,891) | (384,101) | |
ASU 2014-09 [member] | |||
ASSETS | |||
Prepaid expenses and other current assets | $ 4,253 | ||
Liabilities | |||
Accrued gift card liability | 10,100 | 17,366 | |
Other current liabilities | 8,540 | ||
Deferred revenue | 8,487 | ||
Accumulated deficit | (380,643) | ||
Balances Without the Adoption of Topic 606 [Member] | ASU 2014-09 [member] | |||
ASSETS | |||
Prepaid expenses and other current assets | 3,469 | ||
Liabilities | |||
Accrued gift card liability | 24,215 | ||
Other current liabilities | 8,397 | ||
Deferred revenue | 2,724 | ||
Accumulated deficit | (385,266) | ||
Effect of Change Higher/(Lower) [Member] | |||
Liabilities | |||
Accumulated deficit | 700 | ||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [member] | |||
ASSETS | |||
Prepaid expenses and other current assets | 40 | (726) | |
Liabilities | |||
Accrued gift card liability | (10,759) | (10,103) | |
Other current liabilities | 1,433 | 488 | |
Deferred revenue | 4,991 | 6,089 | |
Accumulated deficit | $ 4,375 | $ (3,500) | $ 2,800 |
Severance and Other Compensat30
Severance and Other Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2018 | Apr. 03, 2018 | Jul. 03, 2018 | Jan. 02, 2018 | |
Headquarters Relocation [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs classified in account payable and accrued expenses | $ 0.1 | $ 0.1 | $ 0.3 | |
Severance Payments | $ 0.1 | $ 0.1 | ||
Employee Severance [Member] | Other Senior Executives [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance costs | $ 0.3 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Asset Impairment Charges | $ 0 | $ 0 | $ 0 | $ 0 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Details) - Cadence Bank NA [Member] - USD ($) | Nov. 03, 2016 | Jul. 03, 2018 |
Credit Agreement [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | $ 15,000,000 |
Line of credit facility, additional borrowing capacity | $ 5,000,000 | |
Debt instrument, description of variable rate basis | accrues interest at a per annum rate equal to the LIBOR rate plus 2.50% | |
Debt instrument, term | 5 years | |
Credit facility outstanding amount | $ 0 | |
Line of Credit [Member] | ||
Credit Agreement [Line Items] | ||
Debt instrument, maturity date | Nov. 3, 2021 | |
LIBOR [Member] | ||
Credit Agreement [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.50% |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | Jan. 02, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Employee service share-based compensation, tax benefit from compensation expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.44 | $ 3.44 | $ 3.54 | ||
Remaining expense to amortize | $ 1,400,000 | $ 1,400,000 | |||
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding, weighted average remaining recognition period | 1 year 7 months 6 days | ||||
Share-based Compensation Award, Tranche One [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 15.00% | ||||
Share-based Compensation Award, Tranche Two [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 22.50% | ||||
Share-based Compensation Award, Tranche Three [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 30.00% | ||||
Employee Stock Option [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding, number | 500,000 | 500,000 | |||
Inducement Awards [Member] | Employee Stock Option [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, shares issued in period | 48,000 | 48,000 | 15,000 | ||
Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Accelerated share-based compensation expense | $ 700,000 | $ 700,000 | |||
Cash-Based Bonus Award [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Accelerated share-based compensation expense | $ 1,100,000 | $ 1,100,000 | |||
Time-Based Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.71 | $ 9.71 | |||
Number of shares, granted | 198,000 | 0 | |||
Remaining vesting period | 2 years | 2 years | |||
Share-based compensation arrangement by share-based payment award equity instruments other than options grants in period grant date fair value | $ 2,000,000 | $ 2,000,000 | |||
Unvested share-based compensation | $ 400,000 | $ 400,000 | |||
Share based compensation arrangement by share based payment award option and restricted stock, remaining weighted average vesting period | 1 year | ||||
Weighted-Average Grant Date Fair Value, granted | $ 10 | ||||
Time-Based Restricted Stock Units [Member] | Non-Board Member [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 127,671 | 127,671 | |||
Time-Based Restricted Stock Units [Member] | Board of Directors [Membe] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 70,206 | 70,206 | |||
Vesting period | 1 year | ||||
Performance-Based Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 0 | 0 | 0 | ||
Market-Based Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 105,000 | 0 | 105,000 | 70,000 | |
Unvested share-based compensation | $ 300,000 | $ 300,000 | |||
Share based compensation arrangement by share based payment award option and restricted stock, remaining weighted average vesting period | 2 years 6 months | ||||
Weighted-Average Grant Date Fair Value, granted | $ 3.51 | $ 3.51 | $ 1.06 | ||
Market-Based Restricted Stock Units [Member] | Minimum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, estimated requisite service period | 18 months | ||||
Market-Based Restricted Stock Units [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, estimated requisite service period | 30 months | ||||
General and Administrative Expense [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Allocated share-based compensation expense | $ 2,100,000 | $ 500,000 | $ 2,200,000 | $ 600,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Fair Value of Options Estimated at Date of Grant Using Black-Scholes Option Pricing Model with Weighted-Average Assumptions (Details) | 6 Months Ended |
Jul. 03, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted-average risk-free interest rate | 2.90% |
Expected life of options (years) | 5 years 4 months 20 days |
Expected stock volatility | 33.20% |
Expected dividend yield | 0.00% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 03, 2018 | Jan. 02, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Options outstanding, beginning balance | 639 | |
Number of Options, Granted | 48 | |
Number of Options, Canceled | (209) | |
Number of Options outstanding, ending balance | 478 | 639 |
Number of Options, Vested or expected to vest at July 3, 2018 | 478 | |
Number of Options, Exercisable at July 3, 2018 | 306 | |
Weighted-Average Exercise Price, Outstanding, beginning balance | $ 13.16 | |
Weighted-Average Exercise Price, Granted | 9.71 | |
Weighted-Average Exercise Price, Canceled | 13.67 | |
Weighted-Average Exercise Price, Outstanding, ending balance | 12.59 | $ 13.16 |
Weighted-Average Exercise Price, Vested or expected to vest at July 3, 2018 | 12.59 | |
Weighted-Average Exercise Price, Exercisable at July 3, 2018 | $ 12.95 | |
Weighted-Average Contractual Term, Outstanding | 6 years 7 months 20 days | 4 years 11 months 26 days |
Weighted-Average Contractual Term Remaining, Vested or expected to vest at July 3, 2018 | 6 years 7 months 20 days | |
Weighted-Average Contractual Term Remaining Exercisable at July 3, 2018 | 5 years 8 months 26 days | |
Aggregate Intrinsic Value, Outstanding | $ 124 | $ 13 |
Aggregate Intrinsic Value, Vested or expected to vest at July 3, 2018 | 124 | |
Aggregate Intrinsic Value, Exercisable at July 3, 2018 | $ 45 |
Share-Based Compensation - Su36
Share-Based Compensation - Summary of Outstanding Time-Based Restricted Stock Units (Details) - Time-Based Restricted Stock Units [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jul. 03, 2018 | Jan. 02, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, beginning balance | 58,000 | |
Number of Shares, Granted | 198,000 | 0 |
Number of Shares, Vested | (123,000) | |
Number of Shares, Forfeited | (4,000) | |
Number of Shares, Outstanding, ending balance | 129,000 | 58,000 |
Weighted-Average Grant Date Fair Value, Outstanding, beginning balance | $ 13.14 | |
Weighted-Average Grant Date Fair Value, Granted | 10 | |
Weighted-Average Grant Date Fair Value,Vested | 13.25 | |
Weighted-Average Grant Date Fair Value, Forfeited | 12.55 | |
Weighted- Average Grant Date Fair Value, Outstanding, ending balance | $ 9.96 | $ 13.14 |
Share-Based Compensation - Su37
Share-Based Compensation - Summary of Outstanding Performance-Based Restricted Stock Units (Details) - Performance-Based Restricted Stock Units [Member] - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 03, 2018 | Jul. 03, 2018 | Jan. 02, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Outstanding, beginning balance | 2,000 | ||
Number of Shares, Granted | 0 | 0 | 0 |
Number of Shares, Cancelled | (2,000) | ||
Number of Shares, Outstanding, ending balance | 2,000 | ||
Weighted-Average Grant Date Fair Value, Outstanding, beginning balance | $ 14.04 | ||
Weighted-Average Grant Date Fair Value, Cancelled | $ 14.04 | ||
Weighted- Average Grant Date Fair Value, Outstanding, ending balance | $ 14.04 |
Share-Based Compensation - Su38
Share-Based Compensation - Summary of Outstanding Market-Based Restricted Stock Units (Details) - Market-Based Restricted Stock Units [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of Shares, Outstanding, beginning balance | 505,000 | |||
Number of Shares, Granted | 105,000 | 0 | 105,000 | 70,000 |
Number of Shares, Forfeited | (70,000) | |||
Number of Shares, Outstanding, ending balance | 540,000 | 540,000 | ||
Weighted-Average Grant Date Fair Value, Outstanding, beginning balance | $ 2.80 | |||
Weighted-Average Grant Date Fair Value, Granted | $ 3.51 | 3.51 | $ 1.06 | |
Weighted-Average Grant Date Fair Value, Forfeited | 1.06 | |||
Weighted- Average Grant Date Fair Value, Outstanding, ending balance | $ 3.74 | $ 3.74 |
Other Operating, Net - Schedule
Other Operating, Net - Schedule of Components of Other Operating, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | |
Other Operating Income Expenses [Line Items] | ||||
Franchise gift card discount expense | $ 31 | $ 157 | $ 31 | $ 227 |
Gift card expense | 486 | 189 | 694 | 452 |
Gift card breakage income | (1,218) | (1,948) | ||
Franchise sublease income | (150) | (162) | (215) | (340) |
Other (income) expense | (190) | (265) | (218) | (143) |
Total other operating, net | 584 | (867) | 854 | (791) |
Franchise Other Expense [Member] | ||||
Other Operating Income Expenses [Line Items] | ||||
Franchise other expense | $ 407 | $ 432 | $ 562 | $ 961 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2018 | Jul. 03, 2018 | Jul. 04, 2017 | Jan. 02, 2018 | |
Loss Contingencies [Line Items] | ||||
Loss contingency, estimated losses associated with ongoing and settled litigation matters | $ 0 | $ 0 | $ 1,000,000 | |
Accounts Payable and Accrued Expenses [Member] | ||||
Loss Contingencies [Line Items] | ||||
Liability associated with ongoing and settled litigation matters | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2018 | Jul. 04, 2017 | Jul. 03, 2018 | Jul. 04, 2017 | |
License [Member] | Sodexo [Member] | ||||
Related Party Transaction [Line Items] | ||||
Licenses revenue | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |