Fiesta Restaurant (FRGI) 10-Q 11 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 03, 2022	Aug. 05, 2022
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 03, 2022
Document Transition Report	false
Entity File Number	001-35373
Entity Registrant Name	FIESTA RESTAURANT GROUP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	90-0712224
Entity Address, Address Line One	14800 Landmark Boulevard, Suite 500
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75254
City Area Code	972
Local Phone Number	702-9300
Title of 12(b) Security	Common Stock, par value $0.01 per share
Entity Trading Symbol	FRGI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001534992
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		25,995,285

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Current assets:
Cash	$ 39,262	$ 36,797
Restricted cash	3,631	3,837
Accounts receivable	5,777	6,223
Inventories	2,527	2,524
Prepaid rent	109	109
Income tax receivable	2,777	3,846
Prepaid expenses and other current assets	7,812	5,706
Total current assets	61,895	59,042
Property and equipment, net	85,506	89,884
Operating lease right-of-use assets	150,423	154,127
Goodwill	56,307	56,307
Deferred tax assets	175	0
Other assets	6,385	7,753
Total assets	360,691	367,113
Current liabilities:
Current portion of long-term debt	69	63
Accounts payable	14,653	12,342
Accrued payroll, related taxes and benefits	8,198	8,475
Accrued real estate taxes	2,956	1,630
Other current liabilities	18,800	18,032
Total current liabilities	44,676	40,542
Long-term debt, net of current portion	397	438
Operating lease liabilities	158,876	163,270
Deferred tax liabilities	0	229
Other non-current liabilities	7,669	7,763
Total liabilities	211,618	212,242
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value; 20,000,000 shares authorized, no shares issued	0	0
Common stock, $0.01 par value; 100,000,000 shares authorized, 28,858,749 and 28,445,812 shares issued, respectively, and 24,971,073 and 24,829,002 shares outstanding, respectively	278	277
Additional paid-in capital	184,628	182,686
Retained earnings (accumulated deficit)	(5,534)	2,043
Treasury stock, at cost; 2,862,538 and 2,847,792 shares, respectively	(30,299)	(30,135)
Total stockholders' equity	149,073	154,871
Total liabilities and stockholders' equity	$ 360,691	$ 367,113

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 03, 2022	Jan. 02, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
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	28,858,749	28,445,812
Common stock, shares outstanding	24,971,073	24,829,002
Treasury Stock, Shares	2,862,538	2,847,792

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Costs and expenses:
Impairment and other lease charges (recoveries)			$ 1,408	$ 40
Income (loss) from continuing operations before taxes	$ (5,354)	$ 1,839	(6,877)	4,221
Provision for (benefit from) income taxes	1,134	(841)	912	2,236
Income (loss) from continuing operations	(6,488)	2,680	(7,789)	1,985
Income (loss) from discontinued operations, net of tax	267	(2,763)	212	(4,157)
Net loss	$ (6,221)	$ (83)	$ (7,577)	$ (2,172)
Earnings (loss) per common share:
Continuing operations - basic (usd per share)	$ (0.26)	$ 0.11	$ (0.31)	$ 0.07
Discontinued operations - basic (usd per share)	0.01	(0.11)	0.01	(0.16)
Basic (usd per share)	(0.25)	0	(0.30)	(0.09)
Continuing operations - diluted (usd per share)	(0.26)	0.11	(0.31)	0.07
Discontinued operations - diluted (usd per share)	0.01	(0.11)	0.01	(0.16)
Diluted (usd per share)	$ (0.25)	$ 0	$ (0.30)	$ (0.09)
Weighted average common shares outstanding:
Basic (in shares)	24,946,674	25,496,038	24,889,650	25,410,123
Diluted (in shares)	24,946,674	25,496,038	24,889,650	25,410,783
Continuing Operations
Revenues:
Revenues	$ 98,487	$ 91,155	$ 194,096	$ 179,370
Costs and expenses:
Cost of sales	32,580	27,558	63,327	54,859
Restaurant wages and related expenses (including stock-based compensation expense of $6, $15, $13 and $31, respectively)	24,583	21,901	48,157	42,240
Restaurant rent expense	5,976	5,824	12,003	11,701
Other restaurant operating expenses	16,755	14,215	33,405	27,520
Advertising expense	3,245	2,898	6,109	5,273
General and administrative (including stock-based compensation expense of $1,388, $1,046, $2,011 and $2,040, respectively)	12,791	11,050	25,133	21,716
Depreciation and amortization	5,232	4,875	10,346	9,963
Impairment and other lease charges (recoveries)	2,110	(202)	1,408	(254)
Closed restaurant rent expense, net of sublease income	401	966	781	1,716
Other expense (income), net	83	170	134	293
Total operating expenses	103,756	89,255	200,803	175,027
Income (loss) from operations	(5,269)	1,900	(6,707)	4,343
Interest expense	85	61	170	122
Restaurant sales | Continuing Operations
Revenues:
Revenues	98,023	90,764	193,223	178,604
Franchise royalty revenues and fees | Continuing Operations
Revenues:
Revenues	$ 464	$ 391	$ 873	$ 766

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - Continuing Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Stock-based compensation	$ 1,400	$ 1,100	$ 2,000	$ 2,100
Restaurant Wages And Related Expenses
Stock-based compensation	6	15	13	31
General and Administrative Expense
Stock-based compensation	$ 1,388	$ 1,046	$ 2,011	$ 2,040

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Treasury Stock
Beginning shares at Jan. 03, 2021		25,293,149
Beginning balance at Jan. 03, 2021	$ 147,781	$ 273	$ 176,614	$ (8,327)	$ (20,779)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	1,163		1,163
Vesting of restricted shares (in shares)		109,528
Vesting of restricted shares	0	$ 1	(1)
Net loss	(2,089)			(2,089)
Ending shares at Apr. 04, 2021		25,402,677
Ending balance at Apr. 04, 2021	146,855	$ 274	177,776	(10,416)	(20,779)
Beginning shares at Jan. 03, 2021		25,293,149
Beginning balance at Jan. 03, 2021	147,781	$ 273	176,614	(8,327)	(20,779)
Increase (Decrease) in Stockholders' Equity
Net loss	(2,172)
Ending shares at Jul. 04, 2021		25,529,468
Ending balance at Jul. 04, 2021	148,013	$ 275	179,016	(10,499)	(20,779)
Beginning shares at Apr. 04, 2021		25,402,677
Beginning balance at Apr. 04, 2021	146,855	$ 274	177,776	(10,416)	(20,779)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	1,241		1,241
Vesting of restricted shares (in shares)		126,791
Vesting of restricted shares	0	$ 1	(1)
Net loss	(83)			(83)
Ending shares at Jul. 04, 2021		25,529,468
Ending balance at Jul. 04, 2021	$ 148,013	$ 275	179,016	(10,499)	(20,779)
Beginning shares at Jan. 02, 2022	24,829,002	24,829,002
Beginning balance at Jan. 02, 2022	$ 154,871	$ 277	182,686	2,043	(30,135)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	549		549
Vesting of restricted shares (in shares)		66,372
Vesting of restricted shares	0	$ 0	0
Purchase of treasury stock (in shares)		(14,746)
Purchase of treasury stock	(164)				(164)
Net loss	(1,356)			(1,356)
Ending shares at Apr. 03, 2022		24,880,628
Ending balance at Apr. 03, 2022	$ 153,900	$ 277	183,235	687	(30,299)
Beginning shares at Jan. 02, 2022	24,829,002	24,829,002
Beginning balance at Jan. 02, 2022	$ 154,871	$ 277	182,686	2,043	(30,135)
Increase (Decrease) in Stockholders' Equity
Purchase of treasury stock (in shares)	(14,746)
Purchase of treasury stock	$ (200)
Net loss	$ (7,577)
Ending shares at Jul. 03, 2022	24,971,073	24,971,073
Ending balance at Jul. 03, 2022	$ 149,073	$ 278	184,628	(5,534)	(30,299)
Beginning shares at Apr. 03, 2022		24,880,628
Beginning balance at Apr. 03, 2022	153,900	$ 277	183,235	687	(30,299)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	1,394		1,394
Vesting of restricted shares (in shares)		90,445
Vesting of restricted shares	0	$ 1	(1)
Net loss	$ (6,221)			(6,221)
Ending shares at Jul. 03, 2022	24,971,073	24,971,073
Ending balance at Jul. 03, 2022	$ 149,073	$ 278	$ 184,628	$ (5,534)	$ (30,299)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021
Operating activities:
Net loss	$ (7,577)	$ (2,172)
Adjustments to reconcile net loss to net cash provided by operating activities:
Gain on disposals of property and equipment, net	0	(285)
Stock-based compensation	1,943	2,404
Impairment and other lease charges (recoveries)	1,408	40
Depreciation and amortization	10,346	17,762
Amortization of deferred financing costs	40	400
Deferred income taxes	(404)	(975)
Changes in other operating assets and liabilities	4,940	4,342
Net cash provided by operating activities	10,696	21,516
Capital expenditures:
Restaurant remodeling	(3,311)	(1,237)
Other restaurant capital expenditures	(3,895)	(6,458)
Corporate and restaurant information systems	(1,239)	(1,374)
Total capital expenditures	(8,445)	(9,069)
Proceeds from disposals of properties	0	1,307
Proceeds from insurance recoveries	203	0
Proceeds from sale-leaseback transactions	0	3,083
Net cash used in investing activities	(8,242)	(4,679)
Financing activities:
Repayment of secured debt	0	(375)
Principal payments on finance leases	(31)	(154)
Payments to purchase treasury stock	(164)	0
Net cash used in financing activities	(195)	(529)
Net change in cash and restricted cash	2,259	16,308
Cash and restricted cash, beginning of period	40,634	53,362
Cash and restricted cash of discontinued operations, beginning of period	0	257
Cash and restricted cash of discontinued operations, end of period	0	(260)
Cash and restricted cash, end of period	$ 42,893	$ 69,667

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 03, 2022
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 Pollo Tropical restaurants through its wholly-owned subsidiaries Pollo Operations, Inc. and Pollo Franchise, Inc. (collectively "Pollo Tropical"). Fiesta owned, operated and franchised Taco Cabana restaurants through its wholly-owned subsidiary, Taco Cabana, Inc. and its subsidiaries (collectively "Taco Cabana") through August 15, 2021. Unless the context otherwise requires, Fiesta and its subsidiaries are collectively referred to as the "Company." At July 3, 2022, the Company owned and operated 138 Pollo Tropical ® restaurants located in Florida and franchised a total of 29 Pollo Tropical restaurants. The franchised Pollo Tropical restaurants include 17 in Puerto Rico, two in Panama, one in Guyana, one in Ecuador, one in the Bahamas, four on college campuses in Florida, and locations at one hospital and two sports and entertainment stadiums in Florida. The Company operates its business as one operating and reportable segment. Discontinued Operations. On July 1, 2021, the Company entered into a stock purchase agreement for the sale of Taco Cabana, Inc. and its subsidiaries (collectively "Taco Cabana"). On August 16, 2021, the Company completed the sale of Taco Cabana. The Company has classified the revenues, costs and expenses and income taxes attributable to the Taco Cabana business segment, together with certain costs related to the transaction, within income (loss) from discontinued operations, net of tax, on the condensed consolidated statements of operations for all periods presented. See Note 2—Dispositions. Unless otherwise noted, amounts and disclosures throughout these notes to the condensed consolidated financial statements relate to the Company's continuing operations. 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 2, 2022 contained 52 weeks. The three and six months ended July 3, 2022 and July 4, 2021 each contained thirteen and twenty-six weeks, respectively. The fiscal year ending January 1, 2023 will contain 52 weeks. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and six months ended July 3, 2022 and July 4, 2021 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 and six months ended July 3, 2022 and July 4, 2021 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 2, 2022 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2022. The January 2, 2022 balance sheet data is derived from those audited financial statements. Reclassification. Certain prior period balances have been reclassified to conform to the current period presentation in the accompanying notes to the condensed consolidated financial statements. Revenue Recognition. Revenue is recognized upon transfer of promised products or services to customers in an amount that reflects the consideration the Company received in exchange for those products or services. Revenues from the Company's owned and operated restaurants are recognized when payment is tendered at the time of sale. Franchise royalty revenues are based on a percentage of gross sales and are recorded as income when earned. Initial franchise fees and area development fees associated with new franchise agreements are not distinct from the continuing rights and services offered by the Company during the term of the related franchise agreements and are recognized as income over the term of the related franchise agreements. A portion of the initial franchise fee is allocated to training services and is recognized as revenue when the Company completes the training services. 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 on 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 management's 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 condensed consolidated balance sheets of cash and restricted 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. There were no outstanding revolving credit borrowings under the Company's senior credit facility as of July 3, 2022 and January 2, 2022. See Note 4 for discussion of the fair value measurement of non-financial assets. Long-Lived Assets . The Company assesses the recoverability of property and equipment and definite-lived intangible assets, including right-of-use ("ROU") lease 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 whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. See Note 4—Impairment of Long-Lived Assets and Other Lease Charges (Recoveries). Leases. The Company assesses whether an agreement contains a lease at inception. All leases are reviewed for finance or operating classification once control is obtained. The majority of the Company's leases are operating leases. Operating leases are included within operating lease right-of-use assets, other current liabilities, and operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included within property and equipment, net, current portion of long-term debt, and long-term debt, net of current portion in the condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance and is reduced by lease incentives received. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate at commencement date in determining the present value of lease payments. Lease terms include options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company assumes options are reasonably certain to be exercised when such options are required to achieve a minimum 20-year lease term for new restaurant properties and when it incurs significant leasehold improvement costs near the end of a lease term. The Company uses judgment and available data to allocate consideration in a contract when it leases land and a building. The Company also uses judgment in determining its incremental borrowing rate, which includes selecting a yield curve based on a synthetic credit rating determined using a valuation model. Lease expense for lease payments is recognized on a straight-line basis over the lease term unless the related ROU asset has been adjusted for an impairment charge. The Company has real estate lease agreements with lease and non-lease components, which are accounted for as a single lease component.

Dispositions

Dispositions	6 Months Ended
	Jul. 03, 2022
Discontinued Operations and Disposal Groups [Abstract]
Dispositions	DispositionsOn June 30, 2021, the Company's Board of Directors approved a stock purchase agreement, which was subsequently entered into by the Company on July 1, 2021, for the sale of all of the outstanding capital stock of Taco Cabana, Inc., including nearly all related assets and liabilities, for a cash purchase price of $85.0 million subject to reduction for (i) closing adjustments of approximately $4.6 million and (ii) certain other working capital adjustments as set forth in the stock purchase agreement. The transaction was completed August 16, 2021. The Company filed an insurance claim for winter storm damages in Texas that occurred in the first quarter of 2021 and retained the right to receive the insurance claim proceeds. The Company recognized $0.4 million of insurance proceeds within income (loss) from discontinued operations, net of tax, in the second quarter of 2022 and $0.9 million of insurance proceeds in the fourth quarter of 2021, and expects to recognize any additional proceeds when the claim is ultimately resolved. All revenues, costs and expenses and income taxes attributable to Taco Cabana, together with certain costs related to the transaction, have been aggregated within income (loss) from discontinued operations, net of tax, in the condensed consolidated statements of operations for all periods presented. No amounts for shared general and administrative operating support expense were allocated to discontinued operations. Depreciation and amortization related to Taco Cabana property and equipment and lease ROU assets was not recorded after June 30, 2021 when Taco Cabana was classified as held for sale. As required by the terms of the senior credit facility, the net proceeds from the sale were used to fully repay Fiesta's outstanding term loan borrowings on August 16, 2021. The early repayment was subject to a 103% loan prepayment premium. Interest expense and amortization of discount and debt issuance costs related to the term loan portion of the senior credit facility are included within income (loss) from discontinued operations, net of tax. Upon completion of the sale of Taco Cabana, the Company provided certain services to Taco Cabana subject to a transition services agreement which expired on December 13, 2021. The Company retained certain closed Taco Cabana restaurant leases, including the associated operating lease right-of-use assets and operating lease liabilities. The Company also retained liability for Taco Cabana's accrued worker's compensation and general liability claims for periods prior to the sale. These liabilities are recognized in other current liabilities and other non-current liabilities in the condensed consolidated balance sheets. As there are estimates and assumptions inherent in recording these insurance liabilities, including the ability to estimate the future development of incurred claims based on historical trends or the severity of the claims, differences between actual future events and prior estimates and assumptions could result in adjustments to these liabilities. During the three and six months ended July 3, 2022, the Company recognized $0.4 million and $0.2 million of income, respectively, primarily related to insurance proceeds and slightly offset by expenses related to workers' compensation claims within income (loss) from discontinued operations, net of tax, in the condensed consolidated statement of operations. Additionally, during the six months ended July 3, 2022, the Company recognized a reduction of stock-based compensation of $(0.1) million within income (loss) from discontinued operations, net of tax, in the condensed consolidated statement of operations. A summary of the results of the discontinued operations for the three and six months ended July 4, 2021 is as follows: Three Months Ended Six Months Ended July 4, 2021 July 4, 2021 Major classes of line items constituting pretax loss of discontinued operations: Revenues: Total revenues $ 66,352 $ 122,876 Costs and expenses: Cost of sales 18,823 34,608 Restaurant wages and related expenses (including stock-based compensation expense of $24 and $50, respectively) 20,640 38,345 Restaurant rent expense 5,657 11,413 Other restaurant operating expenses 10,459 19,450 General and administrative (including stock-based compensation expense of $156 and $283, respectively) 4,089 7,991 Depreciation and amortization 3,961 7,799 Other income and expense items that are not major 2,658 4,381 Total operating expenses 66,287 123,987 Income (loss) from operations 65 (1,111) Interest expense 1,906 3,868 Loss from discontinued operations before income taxes (1,841) (4,979) Provision for (benefit from) income taxes 922 (822) Loss from discontinued operations, net of tax $ (2,763) $ (4,157) A summary of significant investing activity and non-cash operating, investing, and financing activity of the discontinued operations for the six months ended July 4, 2021 is as follows: Six Months Ended July 4, 2021 Non-cash operating activities: Gain on disposals of property and equipment, net $ (290) Stock-based compensation 333 Impairment and other lease charges 294 Depreciation and amortization 7,799 Investing activities: Capital expenditures: New restaurant development $ — Restaurant remodeling (645) Other restaurant capital expenditures (2,708) Corporate and restaurant information systems (110) Total capital expenditures (3,463) Proceeds from disposals of properties 1,307 Proceeds from sale-leaseback transactions 3,083 Net cash provided by investing activities – discontinued operations $ 927 Supplemental cash flow disclosures: Interest paid on long-term debt $ 3,356 Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 1,692 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 5,156 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 2,194 Operating lease liabilities 2,795

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
	Jul. 03, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: July 3, 2022 January 2, 2022 Prepaid contract expenses $ 4,685 $ 4,462 Other 3,127 1,244 $ 7,812 $ 5,706

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets and Other Lease Charges	6 Months Ended
	Jul. 03, 2022
Property, Plant and Equipment [Abstract]
Impairment of Long-Lived Assets and Other Lease Charges	Impairment of Long-Lived Assets and Other Lease Charges (Recoveries) The Company reviews its long-lived assets, principally property and equipment and lease ROU assets, for impairment at the restaurant level. The Company has elected to exclude operating lease payments and liabilities from future cash flows and carrying values, respectively, in its impairment review. 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, exclusive of operating lease payments, 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, exclusive of operating lease payments, over the life of the primary asset for each restaurant is compared to that long-lived asset group's carrying value, excluding operating lease liabilities. 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. A summary of impairment of long-lived assets and other lease charges (recoveries) is as follows: Three Months Ended Six Months Ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Impairment of long-lived assets $ 2,156 $ 32 $ 2,156 $ 142 Other lease charges (recoveries) (46) (234) (748) (396) $ 2,110 $ (202) $ 1,408 $ (254) Impairment charges for the three and six months ended July 3, 2022 related primarily to impairment of assets from four underperforming Pollo Tropical restaurants for which continued performance declines resulted in a decrease in the estimated future cash flows. For the three and six months ended July 3, 2022, other lease charges (recoveries) consist of gains from lease terminations. Impairment charges for the three and six months ended July 4, 2021 related primarily to impairment of equipment from previously impaired and closed restaurants. For the three and six months ended July 4, 2021, other lease charges (recoveries) related primarily to gains from lease terminations. The Company determines 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. In addition, for those restaurants reviewed for impairment where the Company owns the land and building, the Company utilizes third-party information such as a broker quoted value to determine the fair value of the property, when applicable. The Company also utilizes discounted future cash flows to determine the fair value of assets for certain leased restaurants with positive discounted projected future cash flows. The Company utilizes current market lease rent and discount rates to determine the fair value of right-of-use lease 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 six months ended July 3, 2022 totaled $1.2 million.

Other Liabilities

Other Liabilities	6 Months Ended
	Jul. 03, 2022
Other Liabilities Disclosure [Abstract]
Other Liabilities	Other Liabilities Other current liabilities consist of the following: July 3, 2022 January 2, 2022 Operating lease liabilities $ 10,685 $ 10,381 Accrued workers' compensation and general liability claims 2,832 3,083 Sales and property taxes 1,382 921 Other 3,901 3,647 $ 18,800 $ 18,032 Other non-current liabilities consist of the following: July 3, 2022 January 2, 2022 Accrued workers' compensation and general liability claims $ 6,432 $ 6,432 Deferred compensation 268 320 Other 969 1,011 $ 7,669 $ 7,763

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jul. 03, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Purchase of Treasury Stock In 2018, the Company's board of directors approved a share repurchase program for up to 1,500,000 shares of the Company's common stock. In 2019, the Company's board of directors approved increases to the share repurchase program of an additional 1,500,000 shares of the Company's common stock for an aggregate approval of 3,000,000 shares of the Company's common stock. Under the share repurchase program, shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The share repurchase program has no time limit and may be modified, suspended, superseded or terminated at any time by the Company's board of directors. The Company repurchased 14,746 shares of common stock valued at approximately $0.2 million during the six months ended July 3, 2022. As of July 3, 2022, 137,462 shares of common stock remain available for purchase under the share repurchase program. The repurchased shares are held as treasury stock at cost. Stock-Based Compensation On April 28, 2021, the stockholders of the Company approved the Fiesta Restaurant Group, Inc. 2021 Stock Incentive Plan (the "2021 Plan"). Following a grant of a total 37,874 shares to non-employee directors under the Company's 2012 Stock Incentive Plan (the "2012 Plan") on April 28, 2021, no additional shares will be granted under the 2012 Plan. During the six months ended July 3, 2022, the Company granted certain employees a total of 227,781 non-vested restricted shares under the 2021 Plan that vest and become non-forfeitable over a four one one During the six months ended July 3, 2022, the Company also granted certain employees a total of 107,539 restricted stock units under the 2021 Plan subject to performance conditions. The restricted stock units vest and become non-forfeitable at the end of a three Stock-based compensation expense from continuing operations for the three and six months ended July 3, 2022 was $1.4 million and $2.0 million, respectively, and for the three and six months ended July 4, 2021 was $1.1 million and $2.1 million, respectively. Stock-based compensation expense from discontinued operations for the six months ended July 3, 2022 was $(0.1) million and for the three and six months ended July 4, 2021 was $0.2 million and $0.3 million, respectively. At July 3, 2022, the total unrecognized stock-based compensation expense related to non-vested restricted shares and restricted stock units was approximately $7.2 million. At July 3, 2022, the remaining weighted average vesting period for non-vested restricted shares was 1.6 years and restricted stock units was 2.3 years. A summary of all non-vested restricted shares and restricted stock units activity for the six months ended July 3, 2022 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at January 2, 2022 769,018 $ 11.19 64,175 $ 17.45 Granted 493,049 8.83 107,539 9.02 Vested and released (156,817) 12.20 — — Forfeited (80,112) 11.02 (5,021) 17.43 Outstanding at July 3, 2022 1,025,138 $ 9.92 166,693 $ 12.01

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jul. 03, 2022
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings (loss) per share ("EPS") is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during each period. 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 EPS pursuant to the two-class method. The two-class method of computing EPS 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. EPS 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 EPS reflects the potential dilution that could occur if the restricted stock units were to be converted into common shares. Restricted stock units with performance conditions are only included in the diluted EPS calculation to the extent that performance conditions have been met at the measurement date. Diluted EPS is computed 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. All outstanding restricted stock units in the three and six months ended July 3, 2022 and the three months ended July 4, 2021 were performance-based awards which had not yet met their performance conditions as of July 3, 2022 and July 4, 2021. For the six months ended July 4, 2021, all shares of outstanding restricted stock units were excluded from the computation of diluted EPS because including these restricted stock units would have been antidilutive as a result of the loss from continuing operations in the six months ended July 4, 2021. The computation of basic and diluted EPS is as follows: Three Months Ended Six Months Ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Basic and diluted EPS: Income (loss) from continuing operations $ (6,488) $ 2,680 $ (7,789) $ 1,985 Income (loss) from discontinued operations, net of tax 267 (2,763) 212 (4,157) Net loss $ (6,221) $ (83) $ (7,577) $ (2,172) Weighted average common shares—basic 24,946,674 25,496,038 24,889,650 25,410,123 Restricted stock units — — — 660 Weighted average common shares—diluted 24,946,674 25,496,038 24,889,650 25,410,783 Earnings (loss) from continuing operations per common share—basic $ (0.26) $ 0.11 $ (0.31) $ 0.07 Earnings (loss) from discontinued operations per common share—basic 0.01 (0.11) 0.01 (0.16) Earnings (loss) per common share—basic $ (0.25) $ — $ (0.30) $ (0.09) Earnings (loss) from continuing operations per common share—diluted $ (0.26) $ 0.11 $ (0.31) $ 0.07 Earnings (loss) from discontinued operations per common share—diluted 0.01 (0.11) 0.01 (0.16) Earnings (loss) per common share—diluted $ (0.25) $ — $ (0.30) $ (0.09)

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 03, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Assignments . Pollo Tropical assigned two leases to third parties on properties where it no longer operates with lease terms expiring in 2033 and 2036. Although the assignees are responsible for making the payments required by the lease, the Company is a guarantor under the leases. The maximum potential liability for future rental payments that the Company could be required to make under these leases at July 3, 2022 was $4.5 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. Indemnity of Lease Guarantees. As discussed in Note 2—Dispositions, Taco Cabana, Inc., a former wholly-owned subsidiary of the Company, was sold in the third quarter of 2021 to YTC Enterprises LLC ("YTC Enterprises") through a stock purchase agreement. The Company's previous owners, Carrols Restaurant Group, Inc. ("Carrols") remains a guarantor under 12 Taco Cabana restaurant property leases with lease terms expiring on various dates through 2030, all of which are still operating, as of July 3, 2022. The Company has indemnified Carrols for all obligations under the guarantees per the terms of the Separation and Distribution Agreement entered into in connection with the spin-off of Fiesta. The Company remains liable for all obligations under the terms of the leases in the event YTC Enterprises fails to pay any sums due under the lease, subject to indemnification provisions under the stock purchase agreement. The maximum potential amount of future undiscounted rental payments the Company could be required to make under these leases at July 3, 2022 was $7.9 million. The obligations under these leases will generally continue to decrease over time as these operating leases expire, except for any execution of renewal options that exist under the original leases. No payments related to these guarantees have been made by the Company to date and none are expected to be required to be made in the future. YTC Enterprises has indemnified the Company for all such obligations and the Company does not believe it is probable it will be required to perform under any of the guarantees or direct obligations. Legal Matters . The Company is a party to various legal proceedings incidental to the conduct of business. The Company does not believe that the outcome of any of these matters will have a material effect on its condensed consolidated financial statements. 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

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jul. 03, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company engaged Jefferies LLC ("Jefferies"), an affiliate of one of the current members of Fiesta's board of directors, and a subsidiary of Jefferies Financial Group, Inc, a holder of more than 20 percent of the total outstanding shares of Fiesta, in connection with a refinancing of the Company's former amended senior credit facility in 2020 and other advisory services including related to the sale of Taco Cabana. The Company paid fees of $1.7 million to Jefferies and reimbursed Jefferies for reasonable out of pocket and ancillary expenses of less than $0.1 million when the refinancing was completed in the fourth quarter of 2020. The Company paid Jefferies a transaction advisory fee of $2.0 million upon the sale of Taco Cabana. As of July 3, 2022 and January 2, 2022, there were no amounts due to the related party recognized on the condensed consolidated balance sheets.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jul. 03, 2022
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information The following table details supplemental cash flow disclosures of non-cash investing and financing activities from continuing operations: Six Months Ended July 3, 2022 July 4, 2021 Supplemental cash flow disclosures: Interest paid on long-term debt $ 97 $ 115 Income tax payments (refunds), net 323 (6,347) Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 2,437 $ 2,481 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 5,281 1,490 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 2,370 2,288 Operating lease liabilities 3,321 2,793 Cash and restricted cash reconciliation: Beginning of period Cash $ 36,797 $ 49,778 Restricted cash 3,837 3,584 Cash and restricted cash, beginning of period $ 40,634 $ 53,362 End of period Cash $ 39,262 $ 65,830 Restricted cash 3,631 3,837 Cash and restricted cash, end of period $ 42,893 $ 69,667

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jul. 03, 2022
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848) ("ASU No. 2020-04"), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. As of July 3, 2022, the Company's only exposure to LIBOR rates was the undrawn $10.0 million revolving credit facility under its senior credit facility. Upon cessation of the LIBOR, the senior credit facility would use a benchmark replacement rate. According to ASU No. 2020-04, modifications of contracts within the scope of Topic 470 Debt should be accounted for by prospectively adjusting the effective interest rate. The Company does not expect ASU No. 2020-04 to have a significant impact on its financial statements.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jul. 03, 2022
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 2, 2022 contained 52 weeks. The three and six months ended July 3, 2022 and July 4, 2021 each contained thirteen and twenty-six weeks, respectively. The fiscal year ending January 1, 2023 will contain 52 weeks.
Basis of Presentation	Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and six months ended July 3, 2022 and July 4, 2021 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 and six months ended July 3, 2022 and July 4, 2021 are not necessarily indicative of the results to be expected for the full year.
Reclassification	Reclassification. Certain prior period balances have been reclassified to conform to the current period presentation in the accompanying notes to the condensed consolidated financial statements.
Revenue Recognition	Revenue Recognition. Revenue is recognized upon transfer of promised products or services to customers in an amount that reflects the consideration the Company received in exchange for those products or services. Revenues from the Company's owned and operated restaurants are recognized when payment is tendered at the time of sale. Franchise royalty revenues are based on a percentage of gross sales and are recorded as income when earned. Initial franchise fees and area development fees associated with new franchise agreements are not distinct from the continuing rights and services offered by the Company during the term of the related franchise agreements and are recognized as income over the term of the related franchise agreements. A portion of the initial franchise fee is allocated to training services and is recognized as revenue when the Company completes the training services.
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 on 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 management's 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 condensed consolidated balance sheets of cash and restricted 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, including right-of-use ("ROU") lease 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 whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable.
Leases	Leases. The Company assesses whether an agreement contains a lease at inception. All leases are reviewed for finance or operating classification once control is obtained. The majority of the Company's leases are operating leases. Operating leases are included within operating lease right-of-use assets, other current liabilities, and operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included within property and equipment, net, current portion of long-term debt, and long-term debt, net of current portion in the condensed consolidated balance sheets.
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: insurance liabilities, evaluation for impairment of goodwill and long-lived assets, lease accounting matters, and deferred income tax assets. Actual results could differ from those estimates. Due to the uncertainty associated with the unprecedented nature of the COVID-19 pandemic and the impact it will have on the Company's operations and future cash flows, it is reasonably possible that the estimates of future cash flows used in impairment assessments will change in the near term and the effect of the change could be material.
Impairment of Long-Lived Assets	The Company reviews its long-lived assets, principally property and equipment and lease ROU assets, for impairment at the restaurant level. The Company has elected to exclude operating lease payments and liabilities from future cash flows and carrying values, respectively, in its impairment review. 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, exclusive of operating lease payments, 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, exclusive of operating lease payments, over the life of the primary asset for each restaurant is compared to that long-lived asset group's carrying value, excluding operating lease liabilities. 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.
Purchase of Treasury Stock	Purchase of Treasury StockIn 2018, the Company's board of directors approved a share repurchase program for up to 1,500,000 shares of the Company's common stock. In 2019, the Company's board of directors approved increases to the share repurchase program of an additional 1,500,000 shares of the Company's common stock for an aggregate approval of 3,000,000 shares of the Company's common stock. Under the share repurchase program, shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The share repurchase program has no time limit and may be modified, suspended, superseded or terminated at any time by the Company's board of directors. The Company repurchased 14,746 shares of common stock valued at approximately $0.2 million during the six months ended July 3, 2022. As of July 3, 2022, 137,462 shares of common stock remain available for purchase under the share repurchase program. The repurchased shares are held as treasury stock at cost.
Earnings per Share	Basic earnings (loss) per share ("EPS") is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during each period. 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 EPS pursuant to the two-class method. The two-class method of computing EPS 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. EPS 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 EPS reflects the potential dilution that could occur if the restricted stock units were to be converted into common shares. Restricted stock units with performance conditions are only included in the diluted EPS calculation to the extent that performance conditions have been met at the measurement date. Diluted EPS is computed 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.
Guidance Adopted in 2021 and Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848) ("ASU No. 2020-04"), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. As of July 3, 2022, the Company's only exposure to LIBOR rates was the undrawn $10.0 million revolving credit facility under its senior credit facility. Upon cessation of the LIBOR, the senior credit facility would use a benchmark replacement rate. According to ASU No. 2020-04, modifications of contracts within the scope of Topic 470 Debt should be accounted for by prospectively adjusting the effective interest rate. The Company does not expect ASU No. 2020-04 to have a significant impact on its financial statements.

Dispositions (Tables)

Dispositions (Tables)	6 Months Ended
	Jul. 03, 2022
Discontinued Operations and Disposal Groups [Abstract]
Dispositions	A summary of the results of the discontinued operations for the three and six months ended July 4, 2021 is as follows: Three Months Ended Six Months Ended July 4, 2021 July 4, 2021 Major classes of line items constituting pretax loss of discontinued operations: Revenues: Total revenues $ 66,352 $ 122,876 Costs and expenses: Cost of sales 18,823 34,608 Restaurant wages and related expenses (including stock-based compensation expense of $24 and $50, respectively) 20,640 38,345 Restaurant rent expense 5,657 11,413 Other restaurant operating expenses 10,459 19,450 General and administrative (including stock-based compensation expense of $156 and $283, respectively) 4,089 7,991 Depreciation and amortization 3,961 7,799 Other income and expense items that are not major 2,658 4,381 Total operating expenses 66,287 123,987 Income (loss) from operations 65 (1,111) Interest expense 1,906 3,868 Loss from discontinued operations before income taxes (1,841) (4,979) Provision for (benefit from) income taxes 922 (822) Loss from discontinued operations, net of tax $ (2,763) $ (4,157) A summary of significant investing activity and non-cash operating, investing, and financing activity of the discontinued operations for the six months ended July 4, 2021 is as follows: Six Months Ended July 4, 2021 Non-cash operating activities: Gain on disposals of property and equipment, net $ (290) Stock-based compensation 333 Impairment and other lease charges 294 Depreciation and amortization 7,799 Investing activities: Capital expenditures: New restaurant development $ — Restaurant remodeling (645) Other restaurant capital expenditures (2,708) Corporate and restaurant information systems (110) Total capital expenditures (3,463) Proceeds from disposals of properties 1,307 Proceeds from sale-leaseback transactions 3,083 Net cash provided by investing activities – discontinued operations $ 927 Supplemental cash flow disclosures: Interest paid on long-term debt $ 3,356 Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 1,692 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 5,156 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 2,194 Operating lease liabilities 2,795

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jul. 03, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following: July 3, 2022 January 2, 2022 Prepaid contract expenses $ 4,685 $ 4,462 Other 3,127 1,244 $ 7,812 $ 5,706

Impairment of Long-Lived Asse_2

Impairment of Long-Lived Assets and Other Lease Charges (Tables)	6 Months Ended
	Jul. 03, 2022
Property, Plant and Equipment [Abstract]
Summary of Impairment on Long-Lived Assets	A summary of impairment of long-lived assets and other lease charges (recoveries) is as follows: Three Months Ended Six Months Ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Impairment of long-lived assets $ 2,156 $ 32 $ 2,156 $ 142 Other lease charges (recoveries) (46) (234) (748) (396) $ 2,110 $ (202) $ 1,408 $ (254)
Other Lease Charges (Recoveries)	A summary of impairment of long-lived assets and other lease charges (recoveries) is as follows: Three Months Ended Six Months Ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Impairment of long-lived assets $ 2,156 $ 32 $ 2,156 $ 142 Other lease charges (recoveries) (46) (234) (748) (396) $ 2,110 $ (202) $ 1,408 $ (254)

Other Liabilities (Tables)

Other Liabilities (Tables)	6 Months Ended
	Jul. 03, 2022
Other Liabilities Disclosure [Abstract]
Other Liabilities, Current	Other current liabilities consist of the following: July 3, 2022 January 2, 2022 Operating lease liabilities $ 10,685 $ 10,381 Accrued workers' compensation and general liability claims 2,832 3,083 Sales and property taxes 1,382 921 Other 3,901 3,647 $ 18,800 $ 18,032
Other Liabilities, Non-current	Other non-current liabilities consist of the following: July 3, 2022 January 2, 2022 Accrued workers' compensation and general liability claims $ 6,432 $ 6,432 Deferred compensation 268 320 Other 969 1,011 $ 7,669 $ 7,763

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jul. 03, 2022
Equity [Abstract]
Schedule of Non-vested Restricted Shares and Restricted Stock Units Activity	A summary of all non-vested restricted shares and restricted stock units activity for the six months ended July 3, 2022 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at January 2, 2022 769,018 $ 11.19 64,175 $ 17.45 Granted 493,049 8.83 107,539 9.02 Vested and released (156,817) 12.20 — — Forfeited (80,112) 11.02 (5,021) 17.43 Outstanding at July 3, 2022 1,025,138 $ 9.92 166,693 $ 12.01

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jul. 03, 2022
Earnings Per Share [Abstract]
Computation of Basic and Diluted EPS	The computation of basic and diluted EPS is as follows: Three Months Ended Six Months Ended July 3, 2022 July 4, 2021 July 3, 2022 July 4, 2021 Basic and diluted EPS: Income (loss) from continuing operations $ (6,488) $ 2,680 $ (7,789) $ 1,985 Income (loss) from discontinued operations, net of tax 267 (2,763) 212 (4,157) Net loss $ (6,221) $ (83) $ (7,577) $ (2,172) Weighted average common shares—basic 24,946,674 25,496,038 24,889,650 25,410,123 Restricted stock units — — — 660 Weighted average common shares—diluted 24,946,674 25,496,038 24,889,650 25,410,783 Earnings (loss) from continuing operations per common share—basic $ (0.26) $ 0.11 $ (0.31) $ 0.07 Earnings (loss) from discontinued operations per common share—basic 0.01 (0.11) 0.01 (0.16) Earnings (loss) per common share—basic $ (0.25) $ — $ (0.30) $ (0.09) Earnings (loss) from continuing operations per common share—diluted $ (0.26) $ 0.11 $ (0.31) $ 0.07 Earnings (loss) from discontinued operations per common share—diluted 0.01 (0.11) 0.01 (0.16) Earnings (loss) per common share—diluted $ (0.25) $ — $ (0.30) $ (0.09)

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jul. 03, 2022
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Disclosures of Non-Cash Investing and Financing Activities	The following table details supplemental cash flow disclosures of non-cash investing and financing activities from continuing operations: Six Months Ended July 3, 2022 July 4, 2021 Supplemental cash flow disclosures: Interest paid on long-term debt $ 97 $ 115 Income tax payments (refunds), net 323 (6,347) Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 2,437 $ 2,481 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 5,281 1,490 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 2,370 2,288 Operating lease liabilities 3,321 2,793 Cash and restricted cash reconciliation: Beginning of period Cash $ 36,797 $ 49,778 Restricted cash 3,837 3,584 Cash and restricted cash, beginning of period $ 40,634 $ 53,362 End of period Cash $ 39,262 $ 65,830 Restricted cash 3,631 3,837 Cash and restricted cash, end of period $ 42,893 $ 69,667

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details)	Jul. 03, 2022 restaurant
Minimum
Entity Information [Line Items]
Lease term	20 years
Entity Operated Units | Pollo Tropical
Entity Information [Line Items]
Number of restaurants	138
Franchised Units | Pollo Tropical
Entity Information [Line Items]
Number of restaurants	29
Franchised Units | Pollo Tropical | Puerto Rico
Entity Information [Line Items]
Number of restaurants	17
Franchised Units | Pollo Tropical | Panama
Entity Information [Line Items]
Number of restaurants	2
Franchised Units | Pollo Tropical | Guyana
Entity Information [Line Items]
Number of restaurants	1
Franchised Units | Pollo Tropical | Ecuador
Entity Information [Line Items]
Number of restaurants	1
Franchised Units | Pollo Tropical | Bahamas
Entity Information [Line Items]
Number of restaurants	1
Franchised Units | Pollo Tropical | Florida | College Campus
Entity Information [Line Items]
Number of restaurants	4
Franchised Units | Pollo Tropical | Florida | Hospital
Entity Information [Line Items]
Number of restaurants	1
Franchised Units | Pollo Tropical | Florida | Stadium
Entity Information [Line Items]
Number of restaurants	2

Dispositions - Narrative (Detai

Dispositions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021	Jan. 02, 2022	Aug. 16, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Description and timing of disposal			On June 30, 2021, the Company's Board of Directors approved a stock purchase agreement, which was subsequently entered into by the Company on July 1, 2021, for the sale of all of the outstanding capital stock of Taco Cabana, Inc., including nearly all related assets and liabilities, for a cash purchase price of $85.0 million subject to reduction for (i) closing adjustments of approximately $4.6 million and (ii) certain other working capital adjustments as set forth in the stock purchase agreement. The transaction was completed August 16, 2021.
Cash purchase price of disposition						$ 85,000
Closing adjustments						$ 4,600
Recorded expected insurance proceeds	$ 400		$ 400		$ 900
Restaurant wages and related expenses		$ 20,640		$ 38,345
Other income	$ 400		200
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Stock-based compensation expense		$ 200	$ (100)	$ 300

Dispositions - Tabular (Details

Dispositions - Tabular (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Revenues:
Total revenues		$ 66,352		$ 122,876
Costs and expenses:
Cost of sales		18,823		34,608
Restaurant wages and related expenses (including stock-based compensation expense of $24 and $50, respectively)		20,640		38,345
Restaurant rent expense		5,657		11,413
Other restaurant operating expenses		10,459		19,450
General and administrative (including stock-based compensation expense of $156 and $283, respectively)		4,089		7,991
Depreciation and amortization		3,961		7,799
Other income and expense items that are not major		2,658		4,381
Total operating expenses		66,287		123,987
Income (loss) from operations		65		(1,111)
Interest expense		1,906		3,868
Loss from discontinued operations before income taxes		(1,841)		(4,979)
Provision for (benefit from) income taxes		922		(822)
Loss from discontinued operations, net of tax	$ 267	(2,763)	$ 212	(4,157)
Non-cash Operating Activities [Abstract]
Gain on disposals of property and equipment, net			0	(285)
Stock-based compensation			1,943	2,404
Impairment and other lease charges (recoveries)			1,408	40
Depreciation and amortization			10,346	17,762
Investing activities:
Restaurant remodeling			(3,311)	(1,237)
Other restaurant capital expenditures			(3,895)	(6,458)
Corporate and restaurant information systems			(1,239)	(1,374)
Total capital expenditures			(8,445)	(9,069)
Proceeds from disposals of properties			0	1,307
Proceeds from sale-leaseback transactions			0	3,083
Net cash provided by investing activities – discontinued operations				927
Discontinued Operations
Costs and expenses:
Stock-based compensation		200	(100)	300
Non-cash Operating Activities [Abstract]
Gain on disposals of property and equipment, net				(290)
Stock-based compensation				333
Impairment and other lease charges (recoveries)				294
Depreciation and amortization				7,799
Investing activities:
New restaurant development				0
Restaurant remodeling				(645)
Other restaurant capital expenditures				(2,708)
Corporate and restaurant information systems				(110)
Total capital expenditures				(3,463)
Proceeds from disposals of properties				1,307
Proceeds from sale-leaseback transactions				3,083
Supplemental cash flow disclosures:
Interest paid on long-term debt				3,356
Supplemental cash flow disclosures of non-cash investing and financing activities:
Accruals for capital expenditures				1,692
Operating lease ROU assets				5,156
Operating lease ROU assets				2,194
Operating lease liabilities				2,795
Discontinued Operations | Restaurant Wages And Related Expenses
Costs and expenses:
Stock-based compensation		24		50
Discontinued Operations | General and Administrative Expense
Costs and expenses:
Stock-based compensation		$ 156	$ (100)	$ 283

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid contract expenses	$ 4,685	$ 4,462
Other	3,127	1,244
Prepaid expenses and other current assets	$ 7,812	$ 5,706

Impairment of Long-Lived Asse_3

Impairment of Long-Lived Assets and Other Lease Charges - Summary (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Impairment and Other Lease Charges [Line Items]
Impairment and other lease charges (recoveries)			$ 1,408	$ 40
Continuing Operations
Impairment and Other Lease Charges [Line Items]
Impairment of long-lived assets	$ 2,156	$ 32	2,156	142
Other lease charges (recoveries)	(46)	(234)	(748)	(396)
Impairment and other lease charges (recoveries)	$ 2,110	$ (202)	$ 1,408	$ (254)

Impairment of Long-Lived Asse_4

Impairment of Long-Lived Assets and Other Lease Charges - Narrative (Details) $ in Millions	Jul. 03, 2022 USD ($)
Impairment and Other Lease Charges [Line Items]
Assets measured at fair value associated with impairment charges	$ 1.2

Other Liabilities - Current (De

Other Liabilities - Current (Details) - USD ($) $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Other Liabilities Disclosure [Abstract]
Operating lease liabilities	$ 10,685	$ 10,381
Accrued workers' compensation and general liability claims	2,832	3,083
Sales and property taxes	1,382	921
Other	3,901	3,647
Other current liabilities	$ 18,800	$ 18,032

Other Liabilities - Non-current

Other Liabilities - Non-current (Details) - USD ($) $ in Thousands	Jul. 03, 2022	Jan. 02, 2022
Other Liabilities Disclosure [Abstract]
Accrued workers' compensation and general liability claims	$ 6,432	$ 6,432
Deferred compensation	268	320
Other	969	1,011
Other non-current liabilities	$ 7,669	$ 7,763

Stockholders' Equity - Purchase

Stockholders' Equity - Purchase of Treasury Stock (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Apr. 03, 2022	Jul. 03, 2022	Dec. 29, 2019	Feb. 26, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be repurchased		3,000,000
Treasury stock purchases (in shares)		14,746
Treasury stock purchases	$ 164	$ 200
Remaining number of shares authorized to be repurchased		137,462
Share Repurchase Program 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be repurchased				1,500,000
Share Repurchase Program 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be repurchased			1,500,000

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
	Apr. 28, 2021	Jul. 03, 2022	Jul. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense		$ 7.2		$ 7.2
Continuing Operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation		$ 1.4	$ 1.1	2	$ 2.1
Discontinued Operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation			$ 0.2	$ (0.1)	$ 0.3
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares to be Issued at End of Performance Period				0
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares to be Issued at End of Performance Period				215,078
Nonvested Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period	37,874			493,049
Weighted average grant date fair value, grants in period (usd per share)				$ 8.83	$ 16.83
Share-based compensation cost not yet recognized, period for recognition				1 year 7 months 6 days
Nonvested Restricted Shares | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period				80,268
Nonvested Restricted Shares | Director | Vesting 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
Nonvested Restricted Shares | March
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period				227,781
Nonvested Restricted Shares | March | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years
Nonvested Restricted Shares | February
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period				185,000
Nonvested Restricted Shares | February | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period				107,539
Vesting period				3 years
Weighted average grant date fair value, grants in period (usd per share)				$ 9.02	$ 17.43
Share-based compensation cost not yet recognized, period for recognition				2 years 3 months 18 days

Stockholders' Equity - Non-vest

Stockholders' Equity - Non-vested Restricted Shares and Restricted Stock Units Activity (Details) - $ / shares		6 Months Ended
	Apr. 28, 2021	Jul. 03, 2022	Jul. 04, 2021
Non-Vested Shares
Non-vested Restricted Shares and Restricted Stock Units
Outstanding at beginning of period (in shares)		769,018
Granted (in shares)	37,874	493,049
Vested and released (in shares)		(156,817)
Forfeited (in shares)		(80,112)
Outstanding at end of period (in shares)		1,025,138
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (usd per share)		$ 11.19
Granted (usd per share)		8.83	$ 16.83
Vested and released (usd per share)		12.20
Forfeited (usd per share)		11.02
Outstanding at end of period (usd per share)		$ 9.92
Restricted Stock Units
Non-vested Restricted Shares and Restricted Stock Units
Outstanding at beginning of period (in shares)		64,175
Granted (in shares)		107,539
Vested and released (in shares)		0
Forfeited (in shares)		(5,021)
Outstanding at end of period (in shares)		166,693
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (usd per share)		$ 17.45
Granted (usd per share)		9.02	$ 17.43
Vested and released (usd per share)		0
Forfeited (usd per share)		17.43
Outstanding at end of period (usd per share)		$ 12.01

Earnings (Loss) Per Share - Nar

Earnings (Loss) Per Share - Narrative (Details)	Jul. 03, 2022
Earnings Per Share [Abstract]
Nonvested restricted shares right to receive dividends, per share ratio to common shares	1

Earnings (Loss) Per Share - Com

Earnings (Loss) Per Share - Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 03, 2022	Apr. 03, 2022	Jul. 04, 2021	Apr. 04, 2021	Jul. 03, 2022	Jul. 04, 2021
Basic and diluted EPS:
Income (loss) from continuing operations	$ (6,488)		$ 2,680		$ (7,789)	$ 1,985
Income (loss) from discontinued operations, net of tax	267		(2,763)		212	(4,157)
Net loss	$ (6,221)	$ (1,356)	$ (83)	$ (2,089)	$ (7,577)	$ (2,172)
Weighted average common shares—basic	24,946,674		25,496,038		24,889,650	25,410,123
Restricted stock units (in shares)	0		0		0	660
Weighted average common shares—diluted	24,946,674		25,496,038		24,889,650	25,410,783
Earnings (loss) from continuing operations per common share—basic (usd per share)	$ (0.26)		$ 0.11		$ (0.31)	$ 0.07
Earnings (loss) from discontinued operations per common share—basic (usd per share)	0.01		(0.11)		0.01	(0.16)
Earnings (loss) per common share—basic (usd per share)	(0.25)		0		(0.30)	(0.09)
Earnings (loss) from continuing operations per common share—diluted (usd per share)	(0.26)		0.11		(0.31)	0.07
Earnings (loss) from discontinued operations per common share—diluted (usd per share)	0.01		(0.11)		0.01	(0.16)
Earnings (loss) per common share—diluted (usd per share)	$ (0.25)		$ 0		$ (0.30)	$ (0.09)

Commitments and Contingencies -

Commitments and Contingencies - Lease Assignments (Details) $ in Millions	Jul. 03, 2022 USD ($) restaurant
Pollo Tropical
Loss Contingencies [Line Items]
Number of leases assigned | restaurant	2
Pollo Tropical | Payment Guarantee
Loss Contingencies [Line Items]
Maximum potential liability for future rental payments | $	$ 4.5
Corporate Segment | Payment Guarantee
Loss Contingencies [Line Items]
Number of restaurants | restaurant	12
Maximum potential liability for future rental payments | $	$ 7.9

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions		3 Months Ended
	Aug. 16, 2021	Apr. 04, 2021	Jul. 03, 2022	Jan. 02, 2022
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 2	$ 1.7
Related Party Transaction, Due from (to) Related Party			$ 0	$ 0
Maximum
Related Party Transaction [Line Items]
Recovery of Direct Costs		$ 0.1
Jefferies Financial Group, Inc
Related Party Transaction [Line Items]
Ownership percentage			20%

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2022	Jul. 04, 2021	Jan. 02, 2022	Jan. 03, 2021
Cash and restricted cash reconciliation:
Cash	$ 39,262	$ 65,830	$ 36,797	$ 49,778
Restricted cash	3,631	3,837	3,837	3,584
Cash and restricted cash	42,893	69,667	$ 40,634	$ 53,362
Continuing Operations
Supplemental cash flow disclosures:
Interest paid on long-term debt	97	115
Income tax payments (refunds), net	323	(6,347)
Supplemental cash flow disclosures of non-cash investing and financing activities:
Accruals for capital expenditures	2,437	2,481
Right-of-use assets obtained in exchange for lease liabilities:
Operating lease ROU assets	5,281	1,490
Right-of-use assets and lease liabilities reduced for terminated leases:
Operating lease ROU assets	2,370	2,288
Operating lease liabilities	$ 3,321	$ 2,793

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details) $ in Millions	Jul. 03, 2022 USD ($)
Accounting Policies [Abstract]
Available for borrowing under the amended senior credit facility	$ 10