Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2017 | May 03, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | FIESTA RESTAURANT GROUP, INC. | |
Entity Central Index Key | 1,534,992 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 27,063,649 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 |
Current assets: | ||
Cash | $ 7,712 | $ 4,196 |
Trade receivables | 9,207 | 8,771 |
Inventories | 2,688 | 2,865 |
Prepaid rent | 3,639 | 3,575 |
Income tax receivable | 210 | 3,304 |
Prepaid expenses and other current assets | 5,908 | 4,231 |
Total current assets | 29,364 | 26,942 |
Property and equipment, net | 241,705 | 270,920 |
Goodwill | 123,484 | 123,484 |
Deferred income taxes | 26,225 | 14,377 |
Other assets | 5,867 | 5,842 |
Total assets | 426,645 | 441,565 |
Current liabilities: | ||
Current portion of long-term debt | 91 | 89 |
Accounts payable | 14,481 | 16,165 |
Accrued payroll, related taxes and benefits | 12,999 | 12,275 |
Accrued real estate taxes | 3,537 | 6,924 |
Other liabilities | 12,455 | 11,316 |
Total current liabilities | 43,563 | 46,769 |
Long-term debt, net of current portion | 74,399 | 71,423 |
Lease financing obligations | 1,664 | 1,664 |
Deferred income—sale-leaseback of real estate | 26,264 | 27,165 |
Other liabilities | 30,967 | 30,369 |
Total liabilities | 176,857 | 177,390 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $.01; authorized 100,000,000 shares, issued 27,063,800 and 26,884,992 shares, respectively, and outstanding 26,787,205 and 26,755,640 shares, respectively. | 268 | 267 |
Additional paid-in capital | 163,923 | 163,204 |
Retained earnings | 85,597 | 100,704 |
Total stockholders' equity | 249,788 | 264,175 |
Total liabilities and stockholders' equity | $ 426,645 | $ 441,565 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 02, 2017 | Jan. 01, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 27,063,800 | 26,884,992 |
Common stock, shares outstanding | 26,787,205 | 26,755,640 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Revenues: | ||
Restaurant sales | $ 174,977 | $ 175,939 |
Franchise royalty revenues and fees | 630 | 738 |
Total revenues | 175,607 | 176,677 |
Costs and expenses: | ||
Cost of sales | 50,948 | 54,050 |
Restaurant wages and related expenses (including stock-based compensation expense of $109 and $36, respectively) | 48,132 | 45,052 |
Restaurant rent expense | 9,862 | 8,921 |
Other restaurant operating expenses | 24,068 | 22,388 |
Advertising expense | 7,539 | 6,995 |
General and administrative (including stock-based compensation expense of $537 and $975, respectively) | 16,008 | 13,848 |
Depreciation and amortization | 9,186 | 8,336 |
Pre-opening costs | 424 | 1,182 |
Impairment and other lease charges | 32,414 | 12 |
Other expense (income), net | 144 | (248) |
Total operating expenses | 198,725 | 160,536 |
Income (loss) from operations | (23,118) | 16,141 |
Interest expense | 584 | 558 |
Income (loss) before income taxes | (23,702) | 15,583 |
Provision for (benefit from) income taxes | (8,642) | 5,688 |
Net income (loss) | $ (15,060) | $ 9,895 |
Basic net income (loss) per share (usd per share) | $ (0.56) | $ 0.37 |
Diluted net income (loss) per share (usd per share) | $ (0.56) | $ 0.37 |
Basic weighted average common shares outstanding | 26,774,103 | 26,605,717 |
Diluted weighted average common shares outstanding | 26,774,103 | 26,612,021 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Stock-based compensation | $ 600 | $ 1,000 |
Restaurant Wages And Related Expenses | ||
Stock-based compensation | 109 | 36 |
General and Administrative Expense | ||
Stock-based compensation | $ 537 | $ 975 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
Beginning balance at Jan. 03, 2016 | $ 243,982 | $ 266 | $ 159,724 | $ 83,992 |
Beginning shares at Jan. 03, 2016 | 26,571,602 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | $ 1,011 | 1,011 | ||
Vesting of restricted shares (in shares) | 59,040 | |||
Vesting of restricted shares | $ 0 | 0 | 0 | |
Tax deficiency from stock-based compensation | (43) | (43) | ||
Net income (loss) | $ 9,895 | 9,895 | ||
Ending shares at Apr. 03, 2016 | 26,630,642 | |||
Ending balance at Apr. 03, 2016 | $ 254,845 | 266 | 160,692 | 93,887 |
Beginning balance at Jan. 01, 2017 | $ 264,175 | 267 | 163,204 | 100,704 |
Beginning shares at Jan. 01, 2017 | 26,755,640 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | $ 646 | 646 | ||
Vesting of restricted shares (in shares) | 31,565 | |||
Vesting of restricted shares | $ 1 | 1 | 0 | |
Cumulative effect of adopting a new accounting standard (Note 1) | 26 | 73 | (47) | |
Net income (loss) | $ (15,060) | (15,060) | ||
Ending shares at Apr. 02, 2017 | 26,787,205 | |||
Ending balance at Apr. 02, 2017 | $ 249,788 | $ 268 | $ 163,923 | $ 85,597 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (15,060) | $ 9,895 |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Loss (gain) on disposals of property and equipment | 838 | (39) |
Stock-based compensation | 646 | 1,011 |
Impairment and other lease charges | 32,414 | 12 |
Depreciation and amortization | 9,186 | 8,336 |
Amortization of deferred financing costs | 77 | 77 |
Amortization of deferred gains from sale-leaseback transactions | (901) | (901) |
Deferred income taxes | (11,848) | 0 |
Changes in other operating assets and liabilities | (3,140) | (380) |
Net cash provided from operating activities | 12,212 | 18,011 |
Capital expenditures: | ||
New restaurant development | (8,571) | (14,086) |
Restaurant remodeling | (217) | (243) |
Other restaurant capital expenditures | (1,689) | (910) |
Corporate and restaurant information systems | (1,197) | (1,552) |
Total capital expenditures | (11,674) | (16,791) |
Properties purchased for sale-leaseback | 0 | (2,663) |
Proceeds from disposals of other properties | 0 | 236 |
Net cash used in investing activities | (11,674) | (19,218) |
Cash flows from financing activities: | ||
Excess tax benefit from vesting of restricted shares | 0 | 92 |
Borrowings on revolving credit facility | 5,000 | 6,400 |
Repayments on revolving credit facility | (2,000) | (6,500) |
Principal payments on capital leases | (22) | (13) |
Net cash provided by (used in) financing activities | 2,978 | (21) |
Net increase (decrease) in cash | 3,516 | (1,228) |
Cash, beginning of period | 4,196 | 5,281 |
Cash, end of period | 7,712 | 4,053 |
Supplemental disclosures: | ||
Interest paid on long-term debt | 522 | 473 |
Interest paid on lease financing obligations | 36 | 35 |
Accruals for capital expenditures | 6,754 | 7,764 |
Income tax payments, net | $ 86 | $ 282 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 02, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Business Description. Fiesta Restaurant Group, Inc. ("Fiesta Restaurant Group" or "Fiesta") owns, operates and franchises two fast-casual restaurant brands through its wholly-owned subsidiaries Pollo Operations, Inc. and its subsidiaries, Pollo Franchise, Inc. (collectively “Pollo Tropical”) and Taco Cabana, Inc. and its subsidiaries (collectively “Taco Cabana”). Unless the context otherwise requires, Fiesta and its subsidiaries, Pollo Tropical and Taco Cabana, are collectively referred to as the “Company”. At April 2, 2017 , the Company owned and operated 180 Pollo Tropical ® restaurants and 167 Taco Cabana ® restaurants. The Pollo Tropical restaurants included 131 located in Florida, 30 located in Texas, 16 located in Georgia and three located in Tennessee. The Taco Cabana restaurants included 166 located in Texas and one located in Oklahoma. At April 2, 2017 , the Company franchised a total of 34 Pollo Tropical restaurants and seven Taco Cabana restaurants. The franchised Pollo Tropical restaurants included 17 in Puerto Rico, one in the Bahamas, two in Guyana, one in Venezuela, four in Panama, two in Guatemala, and seven on college campuses and at a hospital in Florida. The franchised Taco Cabana restaurants included five in New Mexico and two on college campuses in Texas. Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. Fiscal Year . The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended January 1, 2017 contained 52 weeks. The three months ended April 2, 2017 and April 3, 2016 each contained thirteen weeks. The fiscal year ending December 31, 2017 will contain 52 weeks. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three months ended April 2, 2017 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three months ended April 2, 2017 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended January 1, 2017 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2017 . The January 1, 2017 balance sheet data is derived from those audited financial statements. Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value: • Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. • Revolving Credit Borrowings. The fair value of outstanding revolving credit borrowings under the Company's senior credit facility, which is considered Level 2, is based on current LIBOR rates. The fair value and carrying value of the Company's senior credit facility were approximately $72.9 million at April 2, 2017 and $69.9 million at January 1, 2017 . Long-Lived Assets . The Company assesses the recoverability of property and equipment and definite-lived intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed when events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. See Note 2. Use of Estimates . The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill and long-lived assets and lease accounting matters. Actual results could differ from those estimates. Guidance Adopted in 2017. In March 2016, the Financial Accounting Standards Board issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), to simplify various aspects of the accounting and presentation of share-based payments, including the income tax effects of awards and forfeiture assumptions. In the first quarter of 2017, the Company prospectively adopted the amendments in this guidance that relate to the classification of excess tax benefits or tax benefit deficiencies from share-based payment arrangements in the statement of cash flows and income statement. Excess tax benefits from share-based payment arrangements result from share-based compensation windfall deductions in excess of compensation costs for financial reporting purposes and tax benefit deficiencies result from share-based compensation deduction shortfalls. During the three months ended April 2, 2017 , the Company recognized $0.1 million of tax benefit deficiencies, which pursuant to the adopted guidance increased income tax expense and decreased net income by $0.1 million . Effective January 2, 2017, the Company elected to change its accounting policy to recognize forfeitures as they occur. The new forfeiture policy election was adopted using a modified retrospective approach with a $0.1 million |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets and Other Lease Charges | 3 Months Ended |
Apr. 02, 2017 | |
Asset Impairment Charges [Abstract] | |
Impairment of Long-Lived Assets and Other Lease Charges | Impairment of Long-Lived Assets and Other Lease Charges The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. In addition to considering management’s plans, known regulatory or governmental actions and damage due to acts of God (hurricanes, tornadoes, etc.), the Company considers a triggering event to have occurred related to a specific restaurant if the restaurant’s cash flows for the last twelve months are less than a minimum threshold or if consistent levels of cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis. If actual performance does not achieve the projections, the Company may recognize impairment charges in future periods, and such charges could be material. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries. A summary of impairment on long-lived assets and other lease charges recorded by segment is as follows: Three Months Ended April 2, 2017 April 3, 2016 Pollo Tropical $ 32,071 $ — Taco Cabana 343 12 $ 32,414 $ 12 On April 24, 2017, the Company announced a strategic renewal plan to drive long-term value that includes the closure of 30 Pollo Tropical restaurants outside its core Florida markets. The Company has subsequently closed all Pollo Tropical locations in Dallas-Fort Worth and Austin, Texas, and Nashville, Tennessee. The Company will continue to operate 19 Pollo Tropical restaurants outside of Florida, including 13 in Atlanta and six in south Texas. Up to five closed restaurants in Texas may be rebranded as Taco Cabana restaurants. In the first quarter of 2017 , the Company recognized impairment charges with respect to the 30 restaurants that it subsequently closed in the second quarter of 2017, seven of which were impaired in 2016, as well as an additional impairment charge related to previously closed restaurants primarily as a result of the decision not to convert a location to a Taco Cabana restaurant. The Company also recognized an impairment charge with respect to three Taco Cabana restaurants that it continues to operate. Impairment and other lease charges for the three months ended April 2, 2017 consisted of impairment charges for Pollo Tropical and Taco Cabana restaurants of $32.0 million and $0.3 million , respectively, and lease and other charges related to closed Pollo Tropical restaurants of $0.1 million , net of recoveries. The Company will recognize lease and other charges related to the closed restaurants in the second quarter of 2017. The Company determined the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions, the Company’s history of using these assets in the operation of its business and the Company's expectation of how a market participant would value the assets. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. The Level 3 assets measured at fair value associated with impairment charges recorded during the three months ended April 2, 2017 totaled $15.2 million |
Other Liabilities
Other Liabilities | 3 Months Ended |
Apr. 02, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities, current, consist of the following: April 2, 2017 January 1, 2017 Accrued workers' compensation and general liability claims $ 5,673 $ 4,838 Sales and property taxes 1,834 1,844 Accrued occupancy costs 2,104 2,161 Other 2,844 2,473 $ 12,455 $ 11,316 Other liabilities, long-term, consist of the following: April 2, 2017 January 1, 2017 Accrued occupancy costs $ 20,175 $ 20,172 Deferred compensation 1,826 2,027 Accrued workers’ compensation and general liability claims 4,030 4,030 Other 4,936 4,140 $ 30,967 $ 30,369 Accrued occupancy costs include obligations pertaining to closed restaurant locations and accruals to expense operating lease rental payments on a straight-line basis over the lease term. The following table presents the activity in the closed-store reserve, of which $ 2.6 million and $ 3.1 million are included in long-term accrued occupancy costs at April 2, 2017 and January 1, 2017 , respectively, with the remainder in other current liabilities. Three Months Ended April 2, 2017 Year Ended January 1, 2017 Balance, beginning of period $ 4,912 $ 1,832 Provisions for restaurant closures 421 3,093 Additional lease charges, net of (recoveries) (281 ) (237 ) Payments, net (708 ) (806 ) Other adjustments 171 1,030 Balance, end of period $ 4,515 $ 4,912 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation During the three months ended April 2, 2017 and April 3, 2016 , the Company granted certain employees 187,342 and 50,087 non-vested restricted shares, respectively, under the Fiesta Restaurant Group, Inc. 2012 Stock Incentive Plan (the "Fiesta Plan"). These shares generally vest and become non-forfeitable over a four year vesting period. The weighted average fair value at grant date for these non-vested shares issued to employees during the three months ended April 2, 2017 and April 3, 2016 was $20.75 and $35.25 , respectively. During the three months ended April 2, 2017 and April 3, 2016 , the Company granted certain employees 11,745 and 5,762 restricted stock units, respectively, under the Fiesta Plan. The restricted stock units granted during the three months ended April 2, 2017 and April 3, 2016 vest and become non-forfeitable at the end of a four year vesting period. The weighted average fair value at grant date for these restricted stock units issued to employees during the three months ended April 2, 2017 and April 3, 2016 was $20.75 and $35.25 , respectively. Also during the three months ended April 3, 2016 , the Company granted 33,691 non-vested restricted shares and 33,691 restricted stock units, respectively, under the Fiesta Plan to certain employees subject to performance conditions. The non-vested restricted shares vest and become non-forfeitable over a four year vesting period subject to the attainment of financial performance conditions. The restricted stock units vest and become non-forfeitable at the end of a three year vesting period. The number of shares into which the restricted stock units convert is based on the attainment of certain financial performance conditions and for the restricted stock units granted during the three months ended April 3, 2016 , ranges from no shares, if the minimum financial performance condition is not met, to 67,382 shares, if the maximum performance condition is met. The weighted average fair value at grant date for both restricted non-vested shares and restricted stock units subject to financial performance conditions granted during the three months ended April 3, 2016 was $35.25 . Stock-based compensation expense for the three months ended April 2, 2017 was $0.6 million , and for the three months ended April 3, 2016 was $1.0 million . At April 2, 2017 , the total unrecognized stock-based compensation expense related to non-vested restricted shares and restricted stock units was approximately $ 7.0 million . At April 2, 2017 , the remaining weighted average vesting period for non-vested restricted shares was 3.2 years and restricted stock units was 2.0 years. A summary of all non-vested restricted shares and restricted stock units activity for the three months ended April 2, 2017 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at January 1, 2017 129,352 $ 37.94 51,445 $ 46.59 Granted 187,342 20.75 11,745 20.75 Vested/Released (31,463 ) 35.04 (102 ) 50.38 Forfeited (8,636 ) 40.95 (914 ) 42.39 Outstanding at April 2, 2017 276,595 $ 26.53 62,174 $ 41.76 |
Business Segment Information
Business Segment Information | 3 Months Ended |
Apr. 02, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company is engaged in the fast-casual restaurant industry, with two restaurant concepts (each of which is an operating segment): Pollo Tropical and Taco Cabana. Pollo Tropical restaurants offer a wide variety of freshly prepared Caribbean inspired food while our Taco Cabana restaurants offer a broad selection of freshly prepared Mexican inspired food. Each segment's accounting policies are the same as those described in the summary of significant accounting policies in Note 1 to the Company's audited financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2017 . The Company reports more than one measure of segment profit or loss to the chief operating decision maker for the purposes of allocating resources to the segments and assessing their performance. The primary measures of segment profit or loss used to assess performance and allocate resources are income (loss) before taxes and Adjusted EBITDA, which is defined as earnings attributable to the applicable operating segment before interest, income taxes, depreciation and amortization, impairment and other lease charges, stock-based compensation expense and other income and expense. Although the chief operating decision maker uses Adjusted EBITDA as a measure of segment profitability, in accordance with Accounting Standards Codification 280, Segment Reporting, the following table includes segment income (loss) before taxes, which is the measure of segment profit or loss determined in accordance with the measurement principles that are most consistent with the principles used in measuring the corresponding amounts in the consolidated financial statements. The “Other” column includes corporate-related items not allocated to reportable segments and consists primarily of corporate-owned property and equipment, miscellaneous prepaid costs, capitalized costs associated with the issuance of indebtedness, corporate cash accounts, a current income tax receivable, and advisory fees related to a previously proposed and terminated separation transaction. Three Months Ended Pollo Tropical Taco Cabana Other Consolidated April 2, 2017: Restaurant sales $ 99,310 $ 75,667 $ — $ 174,977 Franchise revenue 449 181 — 630 Cost of sales 29,947 21,001 — 50,948 Restaurant wages and related expenses (1) 24,046 24,086 — 48,132 Restaurant rent expense 5,375 4,487 — 9,862 Other restaurant operating expenses 13,389 10,679 — 24,068 Advertising expense 4,325 3,214 — 7,539 General and administrative expense (2) 8,894 7,114 — 16,008 Depreciation and amortization 6,083 3,103 — 9,186 Pre-opening costs 332 92 — 424 Impairment and other lease charges 32,071 343 — 32,414 Interest expense 249 335 — 584 Income (loss) before taxes (25,096 ) 1,394 — (23,702 ) Capital expenditures 8,663 2,696 315 11,674 April 3, 2016: Restaurant sales $ 98,906 $ 77,033 $ — $ 175,939 Franchise revenue 577 161 — 738 Cost of sales 31,604 22,446 — 54,050 Restaurant wages and related expenses (1) 22,896 22,156 — 45,052 Restaurant rent expense 4,644 4,277 — 8,921 Other restaurant operating expenses 12,592 9,796 — 22,388 Advertising expense 3,762 3,233 — 6,995 General and administrative expense (2) 7,685 5,462 701 13,848 Depreciation and amortization 5,278 3,058 — 8,336 Pre-opening costs 1,114 68 — 1,182 Impairment and other lease charges — 12 — 12 Interest expense 251 307 — 558 Income (loss) before taxes 9,669 6,615 (701 ) 15,583 Capital expenditures 14,099 1,634 1,058 16,791 Identifiable Assets: April 2, 2017 $ 247,967 $ 170,169 $ 8,509 $ 426,645 January 1, 2017 263,868 165,195 12,502 441,565 (1) Includes stock-based compensation expense of $109 and $ 36 for the three months ended April 2, 2017 and April 3, 2016 , respectively. (2) Includes stock-based compensation expense of $537 and $ 975 for the three months ended April 2, 2017 and April 3, 2016 |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Apr. 02, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income (Loss) per Share The Company computes basic net income (loss) per share by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic net income per share pursuant to th e two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Net income per common share is computed by dividing undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if our restricted stock units were to be converted into common shares. Restricted stock units with performance conditions are only included in the diluted earnings per share calculation to the extent that performance conditions have been met at the measurement date. We compute diluted earnings per share by adjusting the basic weighted average number of common shares by the dilutive effect of the restricted stock units, determined using the treasury stock method. For the three months ended April 2, 2017 , all restricted stock units outstanding were excluded from the computation of diluted earnings per share because to do so would have been antidilutive as a result of the net loss in the first quarter of 2017. Weighted average outstanding restricted stock units totaling 7,407 shares for the three months ended April 3, 2016 , were not included in the computation of diluted earnings per share because to do so would have been antidilutive. The computation of basic and diluted net income (loss) per share is as follows: Three Months Ended April 2, 2017 April 3, 2016 Basic and diluted net income (loss) per share: Net income (loss) $ (15,060 ) $ 9,895 Less: income allocated to participating securities — (93 ) Net income (loss) available to common shareholders $ (15,060 ) $ 9,802 Weighted average common shares, basic 26,774,103 26,605,717 Restricted stock units — 6,304 Weighted average common shares, diluted 26,774,103 26,612,021 Basic net income (loss) per share $ (0.56 ) $ 0.37 Diluted net income (loss) per share $ (0.56 ) $ 0.37 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 02, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Assignments . Taco Cabana has assigned three leases to various parties on properties where it no longer operates restaurants with lease terms expiring on various dates through 2029. The assignees are responsible for making the payments required by the leases. The Company is a guarantor under one of the leases, and it remains secondarily liable as a surety with respect to two of the leases. The maximum potential liability for future rental payments that the Company could be required to make under these leases at April 2, 2017 was $1.6 million . The Company could also be obligated to pay property taxes and other lease related costs. The obligations under these leases will generally continue to decrease over time as the operating leases expire. The Company does not believe it is probable that it will be ultimately responsible for the obligations under these leases. Legal Matters . The Company is a party to legal proceedings incidental to the conduct of business, including the matter described below. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. On November 24, 2015, Pollo Tropical received a legal demand letter alleging that assistant managers were misclassified as exempt from overtime wages under the Fair Labor Standards Act. On September 30, 2016, prior to any suit being filed, Pollo Tropical reached a settlement with seven named individuals and a proposed collective action class that will allow current and former assistant managers to receive notice and opt-in to the settlement. Pollo Tropical denies any liability or unlawful conduct. The Company has recorded a charge of $0.8 million to cover the estimated costs related to the settlement, including estimated payments to individuals that opt-in to the settlement, premium payments to named individuals, attorneys’ fees for the individuals' counsel, and related settlement administration costs. The charge does not include legal fees incurred by Pollo Tropical in defending the action. The settlement, which is subject to approval by an arbitrator and a judicial body, will result in dismissal with prejudice for the named individuals and all individuals that opt-in to the settlement. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 02, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, and in subsequent updates, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance in former Topic 605, Revenue Recognition, and provides for either a full retrospective adoption in which the standard is applied to all of the periods presented or a modified retrospective adoption in which the cumulative effect of initially applying the standard is recognized at the date of initial application. The new standard provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers unless the contracts are in the scope of other US GAAP requirements. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain non-financial assets, such as property and equipment, including real estate. The Company is currently evaluating the impact of the provisions of Topic 606; however, the Company does not believe the standard will impact its recognition of revenue from company-owned restaurants or its recognition of franchise royalty revenues, which are based on a percent of gross sales. The Company expects the provisions to primarily impact franchise and development fees as well as gift card programs and does not expect the standard to have a material effect on its financial statements. The Company does not plan to early adopt the standard and plans to use the modified retrospective approach to adopt the standard. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessee recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required with an option to use certain practical expedients. The new guidance is required to be applied at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact on its financial statements. Although the impact is not currently estimable, the Company expects to recognize lease assets and lease liabilities for most of the leases it currently accounts for as operating leases. In addition, for the Company's leases that are classified as sale-leaseback transactions, the Company will be required to record an initial adjustment to retained earnings associated with the previously deferred gains, and for any future transactions, the gain, adjusted for any off-market terms, will be recorded immediately. Currently the Company amortizes sale-leaseback gains over the lease term. The Company is continuing its assessment, which may identify other impacts. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 02, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year . The Company uses a 52 - 53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended January 1, 2017 contained 52 weeks. The three months ended April 2, 2017 and April 3, 2016 each contained thirteen weeks. The fiscal year ending December 31, 2017 will contain 52 |
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three months ended April 2, 2017 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three months ended April 2, 2017 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended January 1, 2017 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2017 . The January 1, 2017 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value: • Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. • Revolving Credit Borrowings. |
Long-Lived Assets | Long-Lived Assets . The Company assesses the recoverability of property and equipment and definite-lived intangible assets by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed when events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. See Note 2. |
Use of Estimates | Use of Estimates . The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: accrued occupancy costs, |
Recent Accounting Pronouncements | Guidance Adopted in 2017. In March 2016, the Financial Accounting Standards Board issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), to simplify various aspects of the accounting and presentation of share-based payments, including the income tax effects of awards and forfeiture assumptions. In the first quarter of 2017, the Company prospectively adopted the amendments in this guidance that relate to the classification of excess tax benefits or tax benefit deficiencies from share-based payment arrangements in the statement of cash flows and income statement. Excess tax benefits from share-based payment arrangements result from share-based compensation windfall deductions in excess of compensation costs for financial reporting purposes and tax benefit deficiencies result from share-based compensation deduction shortfalls. During the three months ended April 2, 2017 , the Company recognized $0.1 million of tax benefit deficiencies, which pursuant to the adopted guidance increased income tax expense and decreased net income by $0.1 million . Effective January 2, 2017, the Company elected to change its accounting policy to recognize forfeitures as they occur. The new forfeiture policy election was adopted using a modified retrospective approach with a $0.1 million In May 2014, and in subsequent updates, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance in former Topic 605, Revenue Recognition, and provides for either a full retrospective adoption in which the standard is applied to all of the periods presented or a modified retrospective adoption in which the cumulative effect of initially applying the standard is recognized at the date of initial application. The new standard provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers unless the contracts are in the scope of other US GAAP requirements. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain non-financial assets, such as property and equipment, including real estate. The Company is currently evaluating the impact of the provisions of Topic 606; however, the Company does not believe the standard will impact its recognition of revenue from company-owned restaurants or its recognition of franchise royalty revenues, which are based on a percent of gross sales. The Company expects the provisions to primarily impact franchise and development fees as well as gift card programs and does not expect the standard to have a material effect on its financial statements. The Company does not plan to early adopt the standard and plans to use the modified retrospective approach to adopt the standard. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2017. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessee recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required with an option to use certain practical expedients. The new guidance is required to be applied at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact on its financial statements. Although the impact is not currently estimable, the Company expects to recognize lease assets and lease liabilities for most of the leases it currently accounts for as operating leases. In addition, for the Company's leases that are classified as sale-leaseback transactions, the Company will be required to record an initial adjustment to retained earnings associated with the previously deferred gains, and for any future transactions, the gain, adjusted for any off-market terms, will be recorded immediately. Currently the Company amortizes sale-leaseback gains over the lease term. The Company is continuing its assessment, which may identify other impacts. |
Net Income per Share | The Company computes basic net income (loss) per share by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic net income per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Net income per common share is computed by dividing undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period. |
Impairment of Long-Lived Asse17
Impairment of Long-Lived Assets and Other Lease Charges (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Asset Impairment Charges [Abstract] | |
Schedule of Impairment on Long-Lived Assets and Other Lease Charges by Segment | A summary of impairment on long-lived assets and other lease charges recorded by segment is as follows: Three Months Ended April 2, 2017 April 3, 2016 Pollo Tropical $ 32,071 $ — Taco Cabana 343 12 $ 32,414 $ 12 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities, Current | Other liabilities, current, consist of the following: April 2, 2017 January 1, 2017 Accrued workers' compensation and general liability claims $ 5,673 $ 4,838 Sales and property taxes 1,834 1,844 Accrued occupancy costs 2,104 2,161 Other 2,844 2,473 $ 12,455 $ 11,316 |
Other Liabilities, Long-term | Other liabilities, long-term, consist of the following: April 2, 2017 January 1, 2017 Accrued occupancy costs $ 20,175 $ 20,172 Deferred compensation 1,826 2,027 Accrued workers’ compensation and general liability claims 4,030 4,030 Other 4,936 4,140 $ 30,967 $ 30,369 |
Activity in the Closed-Store Reserve | The following table presents the activity in the closed-store reserve, of which $ 2.6 million and $ 3.1 million are included in long-term accrued occupancy costs at April 2, 2017 and January 1, 2017 , respectively, with the remainder in other current liabilities. Three Months Ended April 2, 2017 Year Ended January 1, 2017 Balance, beginning of period $ 4,912 $ 1,832 Provisions for restaurant closures 421 3,093 Additional lease charges, net of (recoveries) (281 ) (237 ) Payments, net (708 ) (806 ) Other adjustments 171 1,030 Balance, end of period $ 4,515 $ 4,912 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Non-vested Restricted Shares Activity | A summary of all non-vested restricted shares and restricted stock units activity for the three months ended April 2, 2017 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at January 1, 2017 129,352 $ 37.94 51,445 $ 46.59 Granted 187,342 20.75 11,745 20.75 Vested/Released (31,463 ) 35.04 (102 ) 50.38 Forfeited (8,636 ) 40.95 (914 ) 42.39 Outstanding at April 2, 2017 276,595 $ 26.53 62,174 $ 41.76 |
Schedule of Restricted Stock Units Activity | A summary of all non-vested restricted shares and restricted stock units activity for the three months ended April 2, 2017 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at January 1, 2017 129,352 $ 37.94 51,445 $ 46.59 Granted 187,342 20.75 11,745 20.75 Vested/Released (31,463 ) 35.04 (102 ) 50.38 Forfeited (8,636 ) 40.95 (914 ) 42.39 Outstanding at April 2, 2017 276,595 $ 26.53 62,174 $ 41.76 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended Pollo Tropical Taco Cabana Other Consolidated April 2, 2017: Restaurant sales $ 99,310 $ 75,667 $ — $ 174,977 Franchise revenue 449 181 — 630 Cost of sales 29,947 21,001 — 50,948 Restaurant wages and related expenses (1) 24,046 24,086 — 48,132 Restaurant rent expense 5,375 4,487 — 9,862 Other restaurant operating expenses 13,389 10,679 — 24,068 Advertising expense 4,325 3,214 — 7,539 General and administrative expense (2) 8,894 7,114 — 16,008 Depreciation and amortization 6,083 3,103 — 9,186 Pre-opening costs 332 92 — 424 Impairment and other lease charges 32,071 343 — 32,414 Interest expense 249 335 — 584 Income (loss) before taxes (25,096 ) 1,394 — (23,702 ) Capital expenditures 8,663 2,696 315 11,674 April 3, 2016: Restaurant sales $ 98,906 $ 77,033 $ — $ 175,939 Franchise revenue 577 161 — 738 Cost of sales 31,604 22,446 — 54,050 Restaurant wages and related expenses (1) 22,896 22,156 — 45,052 Restaurant rent expense 4,644 4,277 — 8,921 Other restaurant operating expenses 12,592 9,796 — 22,388 Advertising expense 3,762 3,233 — 6,995 General and administrative expense (2) 7,685 5,462 701 13,848 Depreciation and amortization 5,278 3,058 — 8,336 Pre-opening costs 1,114 68 — 1,182 Impairment and other lease charges — 12 — 12 Interest expense 251 307 — 558 Income (loss) before taxes 9,669 6,615 (701 ) 15,583 Capital expenditures 14,099 1,634 1,058 16,791 Identifiable Assets: April 2, 2017 $ 247,967 $ 170,169 $ 8,509 $ 426,645 January 1, 2017 263,868 165,195 12,502 441,565 (1) Includes stock-based compensation expense of $109 and $ 36 for the three months ended April 2, 2017 and April 3, 2016 , respectively. (2) Includes stock-based compensation expense of $537 and $ 975 for the three months ended April 2, 2017 and April 3, 2016 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The computation of basic and diluted net income (loss) per share is as follows: Three Months Ended April 2, 2017 April 3, 2016 Basic and diluted net income (loss) per share: Net income (loss) $ (15,060 ) $ 9,895 Less: income allocated to participating securities — (93 ) Net income (loss) available to common shareholders $ (15,060 ) $ 9,802 Weighted average common shares, basic 26,774,103 26,605,717 Restricted stock units — 6,304 Weighted average common shares, diluted 26,774,103 26,612,021 Basic net income (loss) per share $ (0.56 ) $ 0.37 Diluted net income (loss) per share $ (0.56 ) $ 0.37 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - restaurant | 3 Months Ended | 12 Months Ended | ||
Apr. 02, 2017 | Apr. 03, 2016 | Dec. 31, 2017 | Jan. 01, 2017 | |
Entity Information [Line Items] | ||||
Fiscal period duration | 91 days | 91 days | 371 days | |
Forecast | ||||
Entity Information [Line Items] | ||||
Fiscal period duration | 364 days | |||
Minimum | Forecast | ||||
Entity Information [Line Items] | ||||
Fiscal period duration | 364 days | |||
Maximum | Forecast | ||||
Entity Information [Line Items] | ||||
Fiscal period duration | 371 days | |||
Entity Operated Units | Pollo Tropical | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 180 | |||
Entity Operated Units | Pollo Tropical | Florida | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 131 | |||
Entity Operated Units | Pollo Tropical | Texas | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 30 | |||
Entity Operated Units | Pollo Tropical | Georgia | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 16 | |||
Entity Operated Units | Pollo Tropical | Tennessee | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 3 | |||
Entity Operated Units | Taco Cabana | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 167 | |||
Entity Operated Units | Taco Cabana | Texas | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 166 | |||
Entity Operated Units | Taco Cabana | Oklahoma | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 1 | |||
Franchised Units | Pollo Tropical | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 34 | |||
Franchised Units | Pollo Tropical | Florida | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 7 | |||
Franchised Units | Pollo Tropical | Puerto Rico | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 17 | |||
Franchised Units | Pollo Tropical | Bahamas | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 1 | |||
Franchised Units | Pollo Tropical | Guyana | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 2 | |||
Franchised Units | Pollo Tropical | Venezuela | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 1 | |||
Franchised Units | Pollo Tropical | Panama | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 4 | |||
Franchised Units | Pollo Tropical | Guatemala | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 2 | |||
Franchised Units | Taco Cabana | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 7 | |||
Franchised Units | Taco Cabana | Texas | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 2 | |||
Franchised Units | Taco Cabana | New Mexico | ||||
Entity Information [Line Items] | ||||
Number of restaurants | 5 |
Basis of Presentation - Fair Va
Basis of Presentation - Fair Value Disclosures (Details) - USD ($) $ in Millions | Apr. 02, 2017 | Jan. 01, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of senior credit facility | $ 72.9 | $ 69.9 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior credit facility | $ 72.9 | $ 69.9 |
Basis of Presentation - Guidanc
Basis of Presentation - Guidance Adopted in 2017 (Details) $ in Thousands | 3 Months Ended |
Apr. 02, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment to beginning retained earnings | $ 26 |
ASU 2016-09 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax deficiencies from share-based compensation | 100 |
Effect of adopting new guidance to net income | 100 |
Cumulative-effect adjustment to beginning retained earnings | $ 100 |
Impairment of Long-Lived Asse25
Impairment of Long-Lived Assets and Other Lease Charges - Summary by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Impairment and Other Lease Charges [Line Items] | ||
Impairment and other lease charges | $ 32,414 | $ 12 |
Pollo Tropical | ||
Impairment and Other Lease Charges [Line Items] | ||
Impairment and other lease charges | 32,071 | 0 |
Taco Cabana | ||
Impairment and Other Lease Charges [Line Items] | ||
Impairment and other lease charges | $ 343 | $ 12 |
Impairment of Long-Lived Asse26
Impairment of Long-Lived Assets and Other Lease Charges - Narrative (Details) $ in Millions | 3 Months Ended | ||
Apr. 02, 2017USD ($)restaurant | Apr. 24, 2017restaurant | Jan. 01, 2017restaurant | |
Level 3 | |||
Impairment and Other Lease Charges [Line Items] | |||
Fair value of impaired assets | $ | $ 15.2 | ||
Subsequent Event | Restaurants, Brand Conversion | Maximum | Forecast | |||
Impairment and Other Lease Charges [Line Items] | |||
Number of restaurants | 5 | ||
Pollo Tropical | |||
Impairment and Other Lease Charges [Line Items] | |||
Asset impairment charges | $ | 32 | ||
Lease charges | $ | 0.1 | ||
Pollo Tropical | Restaurants, Open | |||
Impairment and Other Lease Charges [Line Items] | |||
Number of restaurants | 7 | ||
Pollo Tropical | Subsequent Event | Outside Florida | |||
Impairment and Other Lease Charges [Line Items] | |||
Number of restaurants | 19 | ||
Pollo Tropical | Subsequent Event | Atlanta | |||
Impairment and Other Lease Charges [Line Items] | |||
Number of restaurants | 13 | ||
Pollo Tropical | Subsequent Event | South Texas | |||
Impairment and Other Lease Charges [Line Items] | |||
Number of restaurants | 6 | ||
Pollo Tropical | Subsequent Event | Restaurants, Closed | |||
Impairment and Other Lease Charges [Line Items] | |||
Number of restaurants | 30 | ||
Taco Cabana | |||
Impairment and Other Lease Charges [Line Items] | |||
Asset impairment charges | $ | $ 0.3 | ||
Taco Cabana | Restaurants, Open | |||
Impairment and Other Lease Charges [Line Items] | |||
Number of restaurants | 3 |
Other Liabilities - Current (De
Other Liabilities - Current (Details) - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Accrued workers' compensation and general liability claims | $ 5,673 | $ 4,838 |
Sales and property taxes | 1,834 | 1,844 |
Accrued occupancy costs | 2,104 | 2,161 |
Other | 2,844 | 2,473 |
Other liabilities, current | $ 12,455 | $ 11,316 |
Other Liabilities - Long-term (
Other Liabilities - Long-term (Details) - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Accrued occupancy costs | $ 20,175 | $ 20,172 |
Deferred compensation | 1,826 | 2,027 |
Accrued workers’ compensation and general liability claims | 4,030 | 4,030 |
Other | 4,936 | 4,140 |
Other liabilities, long-term | $ 30,967 | $ 30,369 |
Other Liabilities - Narrative (
Other Liabilities - Narrative (Details) - Closed Stores - USD ($) $ in Thousands | Apr. 02, 2017 | Jan. 01, 2017 | Jan. 03, 2016 |
Restructuring Cost and Reserve [Line Items] | |||
Closed-store reserve | $ 4,515 | $ 4,912 | $ 1,832 |
Other Liabilities, Long-Term | |||
Restructuring Cost and Reserve [Line Items] | |||
Closed-store reserve | $ 2,600 | $ 3,100 |
Other Liabilities - Restructuri
Other Liabilities - Restructuring Reserve (Details) - Closed Stores - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 02, 2017 | Jan. 01, 2017 | |
Activity in the Closed-Store Reserve | ||
Balance, beginning of period | $ 4,912 | $ 1,832 |
Provisions for restaurant closures | 421 | 3,093 |
Additional lease charges, net of (recoveries) | (281) | (237) |
Payments, net | (708) | (806) |
Other adjustments | 171 | 1,030 |
Balance, end of period | $ 4,515 | $ 4,912 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 0.6 | $ 1 |
Unrecognized stock-based compensation expense | $ 7 | |
Nonvested Restricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted in period | 187,342 | |
Weighted average grant date fair value, grants in period (usd per share) | $ 20.75 | |
Share-based compensation cost not yet recognized, period for recognition | 3 years 2 months 12 days | |
Nonvested Restricted Shares | Management | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted in period | 187,342 | 50,087 |
Vesting period | 4 years | |
Weighted average grant date fair value, grants in period (usd per share) | $ 20.75 | $ 35.25 |
Nonvested Restricted Shares | Executive Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted in period | 33,691 | |
Vesting period | 4 years | |
Weighted average grant date fair value, grants in period (usd per share) | $ 35.25 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted in period | 11,745 | |
Weighted average grant date fair value, grants in period (usd per share) | $ 20.75 | |
Share-based compensation cost not yet recognized, period for recognition | 2 years | |
Restricted Stock Units | Management | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted in period | 11,745 | 5,762 |
Vesting period | 4 years | |
Weighted average grant date fair value, grants in period (usd per share) | $ 20.75 | $ 35.25 |
Restricted Stock Units | Executive Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted in period | 33,691 | |
Vesting period | 3 years | |
Weighted average grant date fair value, grants in period (usd per share) | $ 35.25 | |
Restricted Stock Units | Executive Officer | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares to be issued at end of performance period | 0 | |
Restricted Stock Units | Executive Officer | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares to be issued at end of performance period | 67,382 |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-vested Restricted Shares and Restricted Stock Units Activity (Details) | 3 Months Ended |
Apr. 02, 2017$ / sharesshares | |
Non-Vested Shares | |
Non-vested Restricted Shares and Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 129,352 |
Granted (in shares) | shares | 187,342 |
Vested/Released (in shares) | shares | (31,463) |
Forfeited (in shares) | shares | (8,636) |
Outstanding at end of period (in shares) | shares | 276,595 |
Weighted Average Grant Date Price | |
Outstanding at beginning of period (usd per share) | $ / shares | $ 37.94 |
Granted (usd per share) | $ / shares | 20.75 |
Vested/Released (usd per share) | $ / shares | 35.04 |
Forfeited (usd per share) | $ / shares | 40.95 |
Outstanding at end of period (usd per share) | $ / shares | $ 26.53 |
Restricted Stock Units | |
Non-vested Restricted Shares and Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 51,445 |
Granted (in shares) | shares | 11,745 |
Vested/Released (in shares) | shares | (102) |
Forfeited (in shares) | shares | (914) |
Outstanding at end of period (in shares) | shares | 62,174 |
Weighted Average Grant Date Price | |
Outstanding at beginning of period (usd per share) | $ / shares | $ 46.59 |
Granted (usd per share) | $ / shares | 20.75 |
Vested/Released (usd per share) | $ / shares | 50.38 |
Forfeited (usd per share) | $ / shares | 42.39 |
Outstanding at end of period (usd per share) | $ / shares | $ 41.76 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2017USD ($)segment | Apr. 03, 2016USD ($) | Jan. 01, 2017USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Restaurant sales | $ 174,977 | $ 175,939 | |
Franchise revenue | 630 | 738 | |
Cost of sales | 50,948 | 54,050 | |
Restaurant wages and related expenses | 48,132 | 45,052 | |
Restaurant rent expense | 9,862 | 8,921 | |
Other restaurant operating expenses | 24,068 | 22,388 | |
Advertising expense | 7,539 | 6,995 | |
General and administrative expense | 16,008 | 13,848 | |
Depreciation and amortization | 9,186 | 8,336 | |
Pre-opening costs | 424 | 1,182 | |
Impairment and other lease charges | 32,414 | 12 | |
Interest expense | 584 | 558 | |
Income (loss) before taxes | (23,702) | 15,583 | |
Capital expenditures | 11,674 | 16,791 | |
Identifiable assets | 426,645 | $ 441,565 | |
Stock-based compensation | 600 | 1,000 | |
Restaurant Wages And Related Expenses | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation | 109 | 36 | |
General and Administrative Expense | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation | 537 | 975 | |
Pollo Tropical | |||
Segment Reporting Information [Line Items] | |||
Impairment and other lease charges | 32,071 | 0 | |
Taco Cabana | |||
Segment Reporting Information [Line Items] | |||
Impairment and other lease charges | 343 | 12 | |
Operating Segments | Pollo Tropical | |||
Segment Reporting Information [Line Items] | |||
Restaurant sales | 99,310 | 98,906 | |
Franchise revenue | 449 | 577 | |
Cost of sales | 29,947 | 31,604 | |
Restaurant wages and related expenses | 24,046 | 22,896 | |
Restaurant rent expense | 5,375 | 4,644 | |
Other restaurant operating expenses | 13,389 | 12,592 | |
Advertising expense | 4,325 | 3,762 | |
General and administrative expense | 8,894 | 7,685 | |
Depreciation and amortization | 6,083 | 5,278 | |
Pre-opening costs | 332 | 1,114 | |
Impairment and other lease charges | 32,071 | 0 | |
Interest expense | 249 | 251 | |
Income (loss) before taxes | (25,096) | 9,669 | |
Capital expenditures | 8,663 | 14,099 | |
Identifiable assets | 247,967 | 263,868 | |
Operating Segments | Taco Cabana | |||
Segment Reporting Information [Line Items] | |||
Restaurant sales | 75,667 | 77,033 | |
Franchise revenue | 181 | 161 | |
Cost of sales | 21,001 | 22,446 | |
Restaurant wages and related expenses | 24,086 | 22,156 | |
Restaurant rent expense | 4,487 | 4,277 | |
Other restaurant operating expenses | 10,679 | 9,796 | |
Advertising expense | 3,214 | 3,233 | |
General and administrative expense | 7,114 | 5,462 | |
Depreciation and amortization | 3,103 | 3,058 | |
Pre-opening costs | 92 | 68 | |
Impairment and other lease charges | 343 | 12 | |
Interest expense | 335 | 307 | |
Income (loss) before taxes | 1,394 | 6,615 | |
Capital expenditures | 2,696 | 1,634 | |
Identifiable assets | 170,169 | 165,195 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Restaurant sales | 0 | 0 | |
Franchise revenue | 0 | 0 | |
Cost of sales | 0 | 0 | |
Restaurant wages and related expenses | 0 | 0 | |
Restaurant rent expense | 0 | 0 | |
Other restaurant operating expenses | 0 | 0 | |
Advertising expense | 0 | 0 | |
General and administrative expense | 0 | 701 | |
Depreciation and amortization | 0 | 0 | |
Pre-opening costs | 0 | 0 | |
Impairment and other lease charges | 0 | 0 | |
Interest expense | 0 | 0 | |
Income (loss) before taxes | 0 | (701) | |
Capital expenditures | 315 | $ 1,058 | |
Identifiable assets | $ 8,509 | $ 12,502 |
Net Income (Loss) per Share - N
Net Income (Loss) per Share - Narrative (Details) | 3 Months Ended |
Apr. 03, 2016shares | |
Restricted Stock Units | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Weighted average antidilutive securities excluded from computation of diluted earnings per share (in shares) | 7,407 |
Net Income (Loss) per Share - C
Net Income (Loss) per Share - Computation of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (15,060) | $ 9,895 |
Less: income allocated to participating securities | 0 | (93) |
Net income (loss) available to common shareholders | $ (15,060) | $ 9,802 |
Weighted average common shares, basic | 26,774,103 | 26,605,717 |
Restricted stock units (in shares) | 0 | 6,304 |
Weighted average common shares, diluted | 26,774,103 | 26,612,021 |
Basic net income (loss) per common share (usd per share) | $ (0.56) | $ 0.37 |
Diluted net income (loss) per common share (usd per share) | $ (0.56) | $ 0.37 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2016USD ($)plaintiff | Apr. 02, 2017USD ($)restaurant |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of subleases | restaurant | 3 | |
Maximum potential liability for future rental payments | $ 1.6 | |
Fair Labor Standards Act Legal Demand Letter | ||
Loss Contingencies [Line Items] | ||
Number of named individuals related to settlement | plaintiff | 7 | |
Recorded charge to cover estimated costs related to settlement | $ 0.8 |