Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 01, 2023 | Feb. 24, 2023 | Jul. 03, 2022 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 01, 2023 | ||
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 $.01 per share | ||
Trading Symbol | FRGI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 121,703,406 | ||
Entity Common Stock, Shares Outstanding | 25,874,625 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for Fiesta Restaurant Group, Inc.'s 2023 Annual Meeting of Stockholders, which is expected to be filed pursuant to Regulation 14A no later than 120 days after the conclusion of Fiesta Restaurant Group, Inc.'s fiscal year ended January 1, 2023, are incorporated by reference into Part III of this annual report. | ||
Entity Central Index Key | 0001534992 | ||
Current Fiscal Year End Date | --01-01 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended | |
Jan. 01, 2023 | Jan. 02, 2022 | |
Auditor [Line Items] | ||
Auditor Name | RSM US LLP | Deloitte & Touche LLP |
Auditor Location | Dallas, Texas | Dallas, Texas |
Auditor Firm ID | 49 | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Current assets: | ||
Cash | $ 32,167 | $ 36,797 |
Restricted cash | 3,631 | 3,837 |
Accounts receivable | 5,270 | 6,223 |
Inventories | 1,962 | 2,524 |
Prepaid rent | 109 | 109 |
Income tax receivable | 3,871 | 3,846 |
Prepaid expenses and other current assets | 5,681 | 5,706 |
Total current assets | 52,691 | 59,042 |
Operating lease right-of-use assets | 146,681 | 154,127 |
Goodwill | 56,307 | 56,307 |
Other assets | 5,906 | 7,753 |
Total assets | 348,691 | 367,113 |
Current liabilities: | ||
Current portion of long-term debt | 62 | 63 |
Accounts payable | 14,219 | 12,342 |
Accrued payroll, related taxes and benefits | 6,536 | 8,475 |
Accrued real estate taxes | 1,805 | 1,630 |
Other current liabilities | 17,680 | 18,032 |
Total current liabilities | 40,302 | 40,542 |
Long-term debt, net of current portion | 367 | 438 |
Operating lease liabilities | 155,355 | 163,270 |
Deferred tax liabilities | 202 | 229 |
Other non-current liabilities | 7,208 | 7,763 |
Total liabilities | 203,434 | 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, 28,890,688 and 28,445,812 shares issued, respectively, and 25,306,302 and 24,829,002 shares outstanding, respectively | 282 | 277 |
Additional paid-in capital | 188,528 | 182,686 |
Retained earnings (accumulated deficit) | (12,516) | 2,043 |
Treasury stock, at cost; 2,966,639 and 2,847,792 shares, respectively | (31,037) | (30,135) |
Total stockholders' equity | 145,257 | 154,871 |
Total liabilities and stockholders' equity | $ 348,691 | $ 367,113 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 01, 2023 | 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 | 28,890,688 | 28,445,812 |
Common stock, shares outstanding | 25,306,302 | 24,829,002 |
Treasury stock, shares | 2,966,639 | 2,847,792 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Costs and expenses: | |||
Depreciation and amortization | $ 20,100 | $ 20,600 | $ 22,000 |
Impairment and other lease charges (recoveries) | 1,414 | 1,670 | 9,139 |
Loss from continuing operations before taxes | (14,693) | (7,002) | (10,430) |
Provision for (benefit from) income taxes | 968 | 1,083 | (7,044) |
Loss from continuing operations | (15,661) | (8,085) | (3,386) |
Income (loss) from discontinued operations, net of tax | 1,102 | 18,455 | (6,825) |
Net (loss) income | $ (14,559) | $ 10,370 | $ (10,211) |
Earnings (loss) per common share: | |||
Continuing operations – basic | $ (0.62) | $ (0.31) | $ (0.13) |
Discontinued operations – basic | 0.04 | 0.71 | (0.27) |
Basic (usd per share) | (0.58) | 0.40 | (0.40) |
Continuing operations – diluted | (0.62) | (0.31) | (0.13) |
Discontinued operations – diluted | 0.04 | 0.71 | (0.27) |
Diluted (usd per share) | $ (0.58) | $ 0.40 | $ (0.40) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 24,965,505 | 25,356,339 | 25,341,415 |
Diluted (in shares) | 24,965,505 | 25,356,339 | 25,341,415 |
Continuing Operations | |||
Revenues: | |||
Revenues | $ 387,351 | $ 357,277 | $ 315,358 |
Costs and expenses: | |||
Cost of sales | 124,555 | 108,593 | 100,080 |
Restaurant wages and related expenses (including stock-based compensation expense of $22, $53, and $73, respectively) | 97,473 | 91,669 | 74,328 |
Restaurant rent expense | 24,077 | 23,592 | 22,773 |
Other restaurant operating expenses | 67,714 | 57,430 | 47,823 |
Advertising expense | 12,760 | 11,508 | 8,379 |
General and administrative (including stock-based compensation expense of $6,089, $4,163, and $2,681, respectively) | 52,325 | 45,524 | 39,848 |
Depreciation and amortization | 20,053 | 20,574 | 22,009 |
Impairment and other lease charges (recoveries) | 1,414 | 1,538 | 8,023 |
Closed restaurant rent expense, net of sublease income | 1,928 | 2,999 | 4,331 |
Other (income) expense, net | (591) | 478 | (2,098) |
Total operating expenses | 401,708 | 363,905 | 325,496 |
Loss from operations | (14,357) | (6,628) | (10,138) |
Interest expense | 336 | 374 | 292 |
Continuing Operations | Restaurant sales | |||
Revenues: | |||
Revenues | 385,944 | 355,492 | 314,112 |
Continuing Operations | Franchise royalty revenues and fees | |||
Revenues: | |||
Revenues | $ 1,407 | $ 1,785 | $ 1,246 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - Continuing Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Stock-based compensation expense | $ 6,100 | $ 4,200 | $ 2,800 |
Restaurant Wages And Related Expenses | |||
Stock-based compensation expense | 22 | 53 | 73 |
General and Administrative Expense | |||
Stock-based compensation expense | $ 6,089 | $ 4,163 | $ 2,681 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock |
Beginning balance at Dec. 29, 2019 | $ 158,236 | $ 271 | $ 173,132 | $ 1,884 | $ (17,051) |
Beginning balance (in shares) at Dec. 29, 2019 | 25,612,597 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation | 3,484 | 3,484 | |||
Vesting of restricted shares (in shares) | 180,552 | ||||
Vesting of restricted shares | 0 | $ 2 | (2) | ||
Tax withholdings related to net share settlements | 0 | ||||
Purchase of treasury stock (in shares) | (500,000) | ||||
Purchase of treasury stock | (3,728) | (3,728) | |||
Net (loss) income | (10,211) | (10,211) | |||
Ending balance (in shares) at Jan. 03, 2021 | 25,293,149 | ||||
Ending balance at Jan. 03, 2021 | 147,781 | $ 273 | 176,614 | (8,327) | (20,779) |
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation | 6,076 | 6,076 | |||
Vesting of restricted shares (in shares) | 390,150 | ||||
Vesting of restricted shares | 0 | $ 4 | (4) | ||
Tax withholdings related to net share settlements | 0 | ||||
Purchase of treasury stock (in shares) | (854,297) | ||||
Purchase of treasury stock | (9,356) | (9,356) | |||
Net (loss) income | $ 10,370 | 10,370 | |||
Ending balance (in shares) at Jan. 02, 2022 | 24,829,002 | 24,829,002 | |||
Ending balance at Jan. 02, 2022 | $ 154,871 | $ 277 | 182,686 | 2,043 | (30,135) |
Increase (Decrease) in Stockholders' Equity | |||||
Retained earnings (accumulated deficit) | 2,043 | ||||
Stock-based compensation | 6,029 | 6,029 | |||
Vesting of restricted shares (in shares) | 596,147 | ||||
Vesting of restricted shares | 0 | $ 5 | (5) | ||
Tax withholdings related to net share settlements | (182) | (182) | |||
Purchase of treasury stock (in shares) | (118,847) | ||||
Purchase of treasury stock | (902) | (902) | |||
Net (loss) income | $ (14,559) | (14,559) | |||
Ending balance (in shares) at Jan. 01, 2023 | 25,306,302 | 25,306,302 | |||
Ending balance at Jan. 01, 2023 | $ 145,257 | $ 282 | $ 188,528 | $ (12,516) | $ (31,037) |
Increase (Decrease) in Stockholders' Equity | |||||
Retained earnings (accumulated deficit) | $ (12,516) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Operating activities: | |||
Net (loss) income | $ (14,559) | $ 10,370 | $ (10,211) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Gain on disposals of property and equipment, net | 0 | (124) | (3,267) |
Stock-based compensation | 6,029 | 6,076 | 3,484 |
Impairment and other lease charges (recoveries) | 1,414 | 1,670 | 9,139 |
Loss on extinguishment of debt | 0 | 5,307 | 1,241 |
Gain on sale of Taco Cabana | 0 | (24,979) | 0 |
Depreciation and amortization | 20,053 | 28,373 | 38,206 |
Amortization of deferred financing costs | 80 | 526 | 437 |
Deferred income taxes | (27) | (4,384) | (650) |
Changes in other operating assets and liabilities: | |||
Accounts receivable | 641 | 525 | (951) |
Prepaid expenses and other current assets | 25 | (454) | 340 |
Operating lease right-of-use assets | 12,930 | 18,245 | 24,213 |
Other non-current assets | 1,767 | (1,955) | 3,396 |
Accounts payable | 1,844 | (1,301) | 1,309 |
Accrued payroll, related taxes and benefits | (1,939) | (3,952) | 4,370 |
Accrued real estate taxes | 175 | (1,861) | 103 |
Other current liabilities | (655) | (1,633) | (3,396) |
Operating lease liabilities | (12,328) | (18,290) | (23,264) |
Other non-current liabilities | (555) | (3,633) | 2,166 |
Income tax receivable/payable | (25) | 5,553 | (5,578) |
Other | 563 | (23) | (815) |
Net cash provided by operating activities | 15,433 | 14,056 | 40,272 |
Capital expenditures: | |||
New restaurant development | 0 | 0 | (1,863) |
Restaurant remodeling | (8,760) | (2,380) | (1,103) |
Other restaurant capital expenditures | (7,820) | (14,732) | (11,270) |
Corporate and restaurant information systems | (2,849) | (2,416) | (4,133) |
Total capital expenditures | (19,429) | (19,528) | (18,369) |
Proceeds received from sale of Taco Cabana | 0 | 74,910 | 0 |
Proceeds from disposals of properties | 0 | 1,307 | 9,559 |
Proceeds from sale-leaseback transactions | 0 | 3,083 | 17,222 |
Proceeds from insurance recoveries | 312 | 0 | 0 |
Net cash (used in) provided by investing activities | (19,117) | 59,772 | 8,412 |
Financing activities: | |||
Borrowings on revolving credit facility | 0 | 0 | 154,143 |
Repayments on revolving credit facility | 0 | 0 | (229,143) |
Borrowings of unsecured debt | 0 | 0 | 15,000 |
Repayments of unsecured debt | 0 | 0 | (15,000) |
Borrowings of secured debt | 0 | 0 | 73,500 |
Repayment of secured debt | 0 | (75,000) | 0 |
Principal payments on finance leases | (68) | (219) | (237) |
Financing costs associated with debt | 0 | 0 | (3,013) |
Premium and other costs related to extinguishment of debt | 0 | (2,238) | 0 |
Tax withholdings related to net share settlements | (182) | 0 | 0 |
Payments to purchase treasury stock | (902) | (9,356) | (3,728) |
Net cash used in financing activities | (1,152) | (86,813) | (8,478) |
Net change in cash and restricted cash | (4,836) | (12,985) | 40,206 |
Cash and restricted cash, beginning of period | 40,634 | 53,362 | 13,089 |
Cash and restricted cash of discontinued operations, beginning of period | 0 | 257 | 324 |
Cash and restricted cash of discontinued operations, end of period | 0 | 0 | (257) |
Cash and restricted cash, end of period | $ 35,798 | $ 40,634 | $ 53,362 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Jan. 01, 2023 | |
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 January 1, 2023, the Company owned and operated 137 Pollo Tropical ® restaurants located in Florida and franchised a total of 32 Pollo Tropical restaurants. The franchised Pollo Tropical restaurants include 17 in Puerto Rico, two in Panama, one in Guyana, two in Ecuador, one in the Bahamas, and six on college campuses in Florida, and locations at one hospital and two sports and entertainment stadium in Florida. 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 consolidated statements of operations for all periods presented. See Note 2—Dispositions. Unless otherwise noted, amounts and disclosures throughout these notes to the consolidated financial statements relate to the Company's continuing operations. Basis of Consolidation. The 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 years ended January 1, 2023 and January 2, 2022 each contained 52 weeks. The fiscal year ended January 3, 2021 contained 53 weeks. 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. Use of Estimates . The preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the 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. Concentrations of Risk. Food and supplies are ordered from approved suppliers and are shipped to the restaurants via distributors. Performance Food Group, Inc. is the primary distributor of food and beverage products and supplies for Pollo Tropical. In the years ended January 1, 2023 and January 2, 2022, Performance Food Group, Inc. accounted for approximately 97% and 96%, respectively, of the food and supplies delivered to restaurants. The Company's limited distributor relationships could have an adverse effect on the Company's operations. Cash and Cash Equ ivalents. The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Restricted Cash. The Company's restricted cash is comprised of certain cash balances that are reserved as cash collateral for the Company's existing letters of credit. Inventories. Inventories, primarily consisting of food and paper, are stated at the lower of cost (first-in, first-out) or market. Property and Equipment. The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Application development stage costs for significant internally developed software projects are capitalized and amortized. Repairs and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Buildings and improvements 5 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to finance lease Shorter of useful life or lease term Leasehold improvements, including new buildings constructed on leased land, are depreciated over the shorter of their estimated useful lives or the underlying lease term. In circumstances where an economic penalty would be presumed by the non-exercise of one or more renewal options under the lease, the Company includes those renewal option periods when determining the lease term for depreciation purposes. For significant leasehold improvements made during the latter part of the lease term, the Company amortizes those improvements over the shorter of their useful life or an extended lease term. The extended lease term would consider the exercise of renewal options if the value of the improvements would imply that an economic penalty would be incurred without the renewal of the option. Building costs incurred for new restaurants on leased land are depreciated over the lease term, which is generally a 20-year period. Cloud-Based Computing Arrangements. The Company defers and amortizes application development stage costs for cloud-based computing arrangements over the life of the related service (subscription) agreement. Goodwill. Goodwill represents the excess purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets acquired by Carrols Restaurant Group, Inc. ("Carrols"), Fiesta's former parent company, from the acquisition of Pollo Tropical in 1998. Goodwill is not amortized but is assessed for impairment at least annually as of the last day of the fiscal year or more frequently if impairment indicators exist. See Note 5—Goodwill. 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 6—Impairment of L ong-Lived Assets. Deferred Financing Costs. Financing costs incurred and the original issue discount recognized in obtaining revolving credit facilities are capitalized and included within other assets on the consolidated balance sheets and are amortized over the life of the related credit facility as interest expense on a straight-line basis. Financing costs incurred and original issue discount recognized in obtaining long-term debt are capitalized and amortized over the term of the associated debt agreement as interest expense using the effective interest method. These financing costs and the original issue discount are presented as a reduction from the carrying amount of the related long-term debt balance on the consolidated balance sheets. Leases. The Company assesses whether an agreement contains a lease at inception. All leases are reviewed for finance or o perating classification once control is obtained. The majority of the Company's leases are operating leases. Operating leases are included within operating lease ROU assets, other current liabilities, and operating lease liabilities on the 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, on the 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. See Note 8—Leases. The Company separately presents rent expense related to its closed restaurant locations and any sublease income related to these closed restaurant locations within closed restaurant rent expense, net of sublease income in the consolidated statement of operations. Income Taxes. Deferred income tax assets and liabilities are based on the difference between the financial statement and tax bases of assets and liabilities as measured by the tax rates that are anticipated to be in effect when those differences reverse. The deferred tax provision generally represents the net change in deferred tax assets and liabilities during the period. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established when it is necessary to reduce deferred tax assets to amounts for which realization is more likely than not. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Advertising Costs. All advertising costs are expensed as incurred. Cost of Sales. The Company includes the cost of food, beverage and paper, net of any discounts, in cost of sales. Cost of sales excludes depreciation and amortization expense, which are presented separately on the consolidated statement of operations. Insurance. The Company is insured for workers' compensation, general liability and medical insurance claims under policies where it pays all claims, subject to stop-loss limitations both for individual claims and for general liability, medical insurance and certain workers' compensation claims in the aggregate. Losses are accrued based upon estimates of the aggregate liability for claims based on the Company's experience and certain actuarial methods used to measure such estimates. The Company does not discount any of its self-insurance obligations. 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 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. • Term Loan Borrowings. The fair value of outstanding term loan borrowings under the Company's senior credit facility, which is considered Level 2, is based on current LIBOR rates. There were no outstanding term loan borrowings as of January 1, 2023 and January 2, 2022 as the Company fully repaid the outstanding term loan borrowings on August 16, 2021. See Note 6 for discussion of the fair value measurement of non-financial assets. 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 percent 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. Gift Cards . The Company sells gift cards to its customers in its restaurants and through select third parties. The Company recognizes revenue from gift cards upon redemption by the customer. For unredeemed gift cards that the Company expects to be entitled to breakage, the Company recognizes expected breakage as revenue in proportion to the pattern of redemption by the customers. The gift cards have no stated expiration dates. Revenues from unredeemed gift cards and gift card liabilities, which are recorded in other current liabilities, are not material to the Company's financial statements. Loyalty Program. The Company's loyalty program for Pollo Tropical (My Pollo™) allows eligible customers who enroll in the program to earn points for every dollar spent. After accumulating a certain number of points, the customer earns a reward that can be used for future purchases at Pollo Tropical. Earned rewards expire 90 days after they are issued. Earned points that have not been converted to rewards do not currently expire. The Company defers revenue associated with the estimated standalone selling price of points earned by customers as each point is earned, net of points the Company does not expect to be redeemed. The estimated standalone selling price of each point earned is based on the estimated value of the reward which is expected to be redeemed. Loyalty revenue is recognized when a customer redeems an earned reward. For unredeemed rewards that the Company expects to be entitled to breakage, the Company recognizes expected breakage as revenue in proportion to the pattern of redemption of the rewards by the customers. The costs associated with rewards are recorded when they are redeemed and are included within cost of sales on the consolidated statements of operations. Deferred revenue associated with the rewards is included within other current liabilities on the consolidated balance sheets. Guidance Adopted in 2021. In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740) ("ASU No. 2019-12"), which is a part of the Simplification Initiative being undertaken by the FASB to reduce complexity of accounting standards. The amendments in this update simplify the accounting for income taxes by removing certain exceptions, the most notable for the Company being the exception to the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss for the full year. The Company adopted this new accounting standard on January 4, 2021, and will apply it prospectively in each period after the date of adoption. The impact of the standard is largely dependent on interim and anticipated profit or loss in a given period, however the Company does not expect ASU No. 2019-12 to have a significant impact on its financial statements. Recent Accounting Pronouncements . In March 2020, the FASB issued 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 January 1, 2023, 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
Dispositions | 12 Months Ended |
Jan. 01, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Dispositions 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 and the Company recognized a gain on the sale of Taco Cabana of $25.0 million during the year ended January 2, 2022, which is included within income from discontinued operations, net of tax, in the consolidated statements of operations. 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 $1.0 million and $0.9 million of insurance proceeds within income (loss) from discontinued operations, net of tax, in the years ended January 1, 2023 and January 2, 2022, respectively. The Company 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 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 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 began providing certain services to Taco Cabana subject to a transition services agreement which expired on December 13, 2021. The Company recognized $0.5 million in income under the transition services agreement for the year ended January 2, 2022, which was recorded as a reduction to general and administrative expense. 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 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 will result in adjustments to these liabilities. Year Ended January 2, 2022 January 3, 2021 Major classes of line items constituting pretax loss of discontinued operations: Revenues: Total revenues $ 152,339 $ 239,445 Costs and expenses: Cost of sales 43,480 70,433 Restaurant wages and related expenses (including stock-based compensation expense of $172 and $127, respectively) 48,399 74,817 Restaurant rent expense 12,995 22,588 Other restaurant operating expenses 24,814 34,357 General and administrative (including stock-based compensation expense of $1,688 and $603, respectively) 11,442 13,229 Depreciation and amortization 7,799 16,197 Pre-opening costs — 69 Other income and expense items that are not major 3,935 10,133 Total operating expenses 152,864 241,823 Loss from operations (525) (2,378) Interest expense 4,678 4,464 Gain on sale of Taco Cabana (24,979) — Loss on extinguishment of debt 5,307 1,241 Income (loss) from discontinued operations before income taxes 14,469 (8,083) Benefit from income taxes (3,986) (1,258) Income (loss) from discontinued operations, net of tax $ 18,455 $ (6,825) A summary of significant investing activity and non-cash operating, investing, and financing activity of the discontinued operations from the consolidated statements of cash flows is as follows: Year Ended January 2, 2022 January 3, 2021 Non-cash operating activities: Loss (gain) on disposals of property and equipment, net $ (217) $ (551) Stock-based compensation 1,860 730 Impairment and other lease charges 132 1,116 Loss on extinguishment of debt 5,307 1,241 Gain on sale of Taco Cabana (24,979) — Depreciation and amortization 7,799 16,197 Investing activities: Capital expenditures: New restaurant development $ — $ (854) Restaurant remodeling (1,283) (745) Other restaurant capital expenditures (5,050) (4,728) Corporate and restaurant information systems (169) (1,559) Total capital expenditures (6,502) (7,886) Proceeds received from sale of Taco Cabana 74,910 — Proceeds from disposals of properties 1,307 4,305 Proceeds from sale-leaseback transactions 3,083 3,966 Net cash provided by investing activities – discontinued operations $ 72,798 $ 385 Supplemental cash flow disclosures: Interest paid on long-term debt (including capitalized interest of $0 and $57, respectively) $ 4,338 $ 4,001 Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ — $ 1,027 Accruals for financing costs associated with debt amendment — 277 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 5,156 18,466 Finance lease ROU assets — 33 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 2,695 953 Operating lease liabilities 3,443 1,217 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jan. 01, 2023 | |
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: January 1, 2023 January 2, 2022 Prepaid contract expenses $ 4,471 $ 4,462 Other 1,210 1,244 $ 5,681 $ 5,706 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 01, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: January 1, 2023 January 2, 2022 Leasehold improvements (1) $ 135,805 $ 132,641 Equipment 119,029 117,652 Assets subject to finance leases 850 850 255,684 251,143 Less accumulated depreciation and amortization (168,578) (161,259) $ 87,106 $ 89,884 (1) Leasehold improvements include the cost of new buildings constructed on leased land. Assets subject to finance leases primarily pertain to buildings leased for certain restaurant locations and fleet vehicles, and had accumulated amortization at January 1, 2023 and January 2, 2022 of $0.6 million and $0.6 million, respectively. Depreciation and am ortization expense for property and equipment for the years ended January 1, 2023, January 2, 2022 and January 3, 2021 was $20.1 million, $20.6 million and $22.0 million, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Jan. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company is required to review goodwill for impairment annually or more frequently when events and circumstances indicate that the carrying amount may be impaired. If the determined fair value of goodwill is less than the related carrying amount, an impairment loss is recognized. The Company performs its annual impairment assessment as of the last day of the fiscal year and has determined its reporting unit to be its operating segment, Pollo Tropical. There were no changes in goodwill or goodwill impairment losses recorded for the Pollo Tropical reporting unit during the years ended January 1, 2023, January 2, 2022 and January 3, 2021. The Company's annual goodwill impairment assessments as of January 1, 2023, January 2, 2022 and January 3, 2021 were performed using a qualitative assessment, which included examining key events and circumstances affecting fair value and indicated that it is more likely than not that the Pollo Tropical reporting unit's fair value is greater than its carrying value. A summary of changes in goodwill during the years ended January 1, 2023, January 2, 2022 and January 3, 2021 is as follows: January 1, 2023 January 2, 2022 January 3, 2021 Goodwill, gross $ 56,307 $ 56,307 $ 56,307 Accumulated impairment losses — — — Goodwill $ 56,307 $ 56,307 $ 56,307 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets and Other Lease Charges (Recoveries) | 12 Months Ended |
Jan. 01, 2023 | |
Restructuring and Related Activities [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, which also includes right-of-use asset impairment, and other lease charges (recoveries) is as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Impairment of long-lived assets $ 2,288 $ 2,095 $ 7,318 Other lease charges (recoveries) (874) (557) 705 $ 1,414 $ 1,538 $ 8,023 The Company closed one Pollo Tropical restaurant as a result of a lease termination in 2022. Additionally, the Company closed one Pollo Tropical restaurant as a result of a lease termination, one Pollo Tropical restaurant as the result of the sale of a property and two Pollo Tropical restaurants as a result of a limited restaurant portfolio review in 2020. Impairmen t charges in 2022 were related primarily to eight underperforming Pollo Tropical restaurants , one of which closed in the fourth quarter of 2022, for which continued performance declines resulted in a decrease in the estimated future cash flows. Other lease charges (recoveries) consist of net gains from lease terminations and a lease term reassessment. I mpairmen t charges in 2021 were related primarily to five underperforming Pollo Tropical restaurants for which continued sales declines coupled with the impact of expected sales declines resulted in a decrease in the estimated future cash flows and impairment of equipment from previously closed restaurants. Other lease charges (recoveries) consist of net gains from lease terminations. Impairment charges in 2020 were related primarily to three underperforming Pollo Tropical restaurants, two of which were closed in the third quarter of 2020, for which continued sales declines coupled with the impact of expected sales declines resulted in a decrease in the estimated future cash flows. Additionally, impairment charges consisted of the write-down of saucing islands and self-service soda machines that were removed from Pollo Tropical dining rooms as a result of COVID-19 and the write-down of assets held for sale to their fair value less costs to sell. Other lease charges in 2020 related primarily to lease termination charges of $0.9 million for Pollo Tropical restaurant locations the Company decided not to develop, net of a gain from lease terminations of $(0.2) million. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Jan. 01, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other current liabilities consist of the following: January 1, 2023 January 2, 2022 Operating lease liabilities $ 10,496 $ 10,381 Accrued workers' compensation and general liability claims 2,623 3,083 Sales and property taxes 981 921 Other 3,580 3,647 $ 17,680 $ 18,032 Other non-current liabilities consist of the following: January 1, 2023 January 2, 2022 Accrued workers' compensation and general liability claims 6,000 6,432 Deferred compensation 273 320 Other 935 1,011 $ 7,208 $ 7,763 |
Leases
Leases | 12 Months Ended |
Jan. 01, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company utilizes land and buildings in its operations under various operating and finance lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for 20 years and, in many cases, provide for renewal options and in most cases rent escalations. As of January 1, 2023, the Company's leases hav e remaining lease terms of 0.5 years to 18.0 years. Some of the Company's leases include options to extend the lease for up to 30 additional years. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. Variable lease payments included in rent expense consist of such contingent rent, certain rent payments based on changes in an index and certain occupancy related costs, such as variable common area maintenance expense and property taxes. The Company is not subject to residual value guarantees under any of the lease agreements. Many of the Company's real estate leases contain usage restrictions, but its leases do not contain financial covenants and restrictions. During the year ended January 3, 2021, the Company completed five sale-leaseback transactions with third parties. The sale-leaseback transactions do not provide for any continuing involvement by the Company other than normal leases where the Company intends to use the property during the lease term. The net proceeds of the sales were $13.3 million which resulted in a net gain of $2.7 million which is included within other expense (income), net, on the consolidated statement of operations. The leases have initial terms of 20 years plus renewal options and have been accounted for as operating leases. Lease expense consisted of the following: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Operating lease cost $ 25,946 $ 26,375 $ 26,026 Finance lease costs: Amortization of right-of-use assets $ 80 $ 102 98 Interest on lease liabilities 87 120 136 Total finance lease costs $ 167 $ 222 $ 234 Variable lease costs $ 7,634 $ 7,320 6,999 Sublease income (6,523) (6,092) (4,853) Total lease costs $ 27,224 $ 27,825 $ 28,406 Supplemental balance sheet information related to leases is as follows: January 1, 2023 January 2, 2022 Operating Leases Operating lease right-of-use assets $ 146,681 $ 154,127 Other current liabilities $ 10,496 $ 10,381 Operating lease liabilities 155,355 163,270 Total operating lease liabilities $ 165,851 $ 173,651 Finance Leases Property and equipment, gross $ 850 $ 850 Accumulated amortization (630) (551) Property and equipment, net $ 220 $ 299 Current portion of long-term debt $ 62 $ 63 Long-term debt, net of current portion 367 438 Total finance lease liabilities $ 429 $ 501 Weighted Average Remaining Lease Term (in Years) Operating leases 11.2 12.1 Finance leases 5.8 6.4 Weighted Average Discount Rate Operating leases 7.74 % 7.71 % Finance leases 19.51 % 18.73 % Supplemental cash flow information related to leases is as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 25,195 $ 25,333 $ 26,078 Operating cash flows for finance leases 87 120 136 Financing cash flows for finance leases 68 80 60 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 9,090 4,975 19,150 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 3,480 2,761 1,773 Operating lease liabilities 4,593 3,451 1,971 Maturities of lease liabilities were as follows: Operating Leases Finance Leases 2023 $ 22,845 $ 141 2024 24,185 113 2025 23,525 117 2026 22,640 117 2027 21,530 122 Thereafter 140,391 122 Total lease payments 255,116 732 Less amount representing interest (89,265) (303) Total discounted lease liabilities 165,851 429 Less current portion (10,496) (62) Long-term portion of lease liabilities $ 155,355 $ 367 The Company subleases land and buildings related to closed restaurant locations under various operating sublease agreements. Initial sublease terms are generally for the period of time remaining on the head lease term and, in some cases, subleases provide for renewal options and in most cases rent escalations. As of January 1, 2023, the Company's subleases have remaining sublease terms o f 0.5 years to 14.5 years. Some of the Company's subleases include options to extend the lease for up to 25 years. Variable l ease payments included in sublease income consist of certain occupancy related costs, such as variable common area maintenance expense and property taxes where the Company makes the real estate payment and is reimbursed by the lessee. The sublease agreements do not include residual value guarantees. Consistent with the Company's real estate leases, many of the subleases contain usage restrictions, but its subleases do not contain financial covenants and restrictions. The undiscounted cash flows to be received under operating subleases were as follows: Operating Leases 2023 $ 6,308 2024 6,365 2025 6,536 2026 6,737 2027 6,868 Thereafter 41,805 Total $ 74,619 |
Leases | Leases The Company utilizes land and buildings in its operations under various operating and finance lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for 20 years and, in many cases, provide for renewal options and in most cases rent escalations. As of January 1, 2023, the Company's leases hav e remaining lease terms of 0.5 years to 18.0 years. Some of the Company's leases include options to extend the lease for up to 30 additional years. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. Variable lease payments included in rent expense consist of such contingent rent, certain rent payments based on changes in an index and certain occupancy related costs, such as variable common area maintenance expense and property taxes. The Company is not subject to residual value guarantees under any of the lease agreements. Many of the Company's real estate leases contain usage restrictions, but its leases do not contain financial covenants and restrictions. During the year ended January 3, 2021, the Company completed five sale-leaseback transactions with third parties. The sale-leaseback transactions do not provide for any continuing involvement by the Company other than normal leases where the Company intends to use the property during the lease term. The net proceeds of the sales were $13.3 million which resulted in a net gain of $2.7 million which is included within other expense (income), net, on the consolidated statement of operations. The leases have initial terms of 20 years plus renewal options and have been accounted for as operating leases. Lease expense consisted of the following: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Operating lease cost $ 25,946 $ 26,375 $ 26,026 Finance lease costs: Amortization of right-of-use assets $ 80 $ 102 98 Interest on lease liabilities 87 120 136 Total finance lease costs $ 167 $ 222 $ 234 Variable lease costs $ 7,634 $ 7,320 6,999 Sublease income (6,523) (6,092) (4,853) Total lease costs $ 27,224 $ 27,825 $ 28,406 Supplemental balance sheet information related to leases is as follows: January 1, 2023 January 2, 2022 Operating Leases Operating lease right-of-use assets $ 146,681 $ 154,127 Other current liabilities $ 10,496 $ 10,381 Operating lease liabilities 155,355 163,270 Total operating lease liabilities $ 165,851 $ 173,651 Finance Leases Property and equipment, gross $ 850 $ 850 Accumulated amortization (630) (551) Property and equipment, net $ 220 $ 299 Current portion of long-term debt $ 62 $ 63 Long-term debt, net of current portion 367 438 Total finance lease liabilities $ 429 $ 501 Weighted Average Remaining Lease Term (in Years) Operating leases 11.2 12.1 Finance leases 5.8 6.4 Weighted Average Discount Rate Operating leases 7.74 % 7.71 % Finance leases 19.51 % 18.73 % Supplemental cash flow information related to leases is as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 25,195 $ 25,333 $ 26,078 Operating cash flows for finance leases 87 120 136 Financing cash flows for finance leases 68 80 60 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 9,090 4,975 19,150 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 3,480 2,761 1,773 Operating lease liabilities 4,593 3,451 1,971 Maturities of lease liabilities were as follows: Operating Leases Finance Leases 2023 $ 22,845 $ 141 2024 24,185 113 2025 23,525 117 2026 22,640 117 2027 21,530 122 Thereafter 140,391 122 Total lease payments 255,116 732 Less amount representing interest (89,265) (303) Total discounted lease liabilities 165,851 429 Less current portion (10,496) (62) Long-term portion of lease liabilities $ 155,355 $ 367 The Company subleases land and buildings related to closed restaurant locations under various operating sublease agreements. Initial sublease terms are generally for the period of time remaining on the head lease term and, in some cases, subleases provide for renewal options and in most cases rent escalations. As of January 1, 2023, the Company's subleases have remaining sublease terms o f 0.5 years to 14.5 years. Some of the Company's subleases include options to extend the lease for up to 25 years. Variable l ease payments included in sublease income consist of certain occupancy related costs, such as variable common area maintenance expense and property taxes where the Company makes the real estate payment and is reimbursed by the lessee. The sublease agreements do not include residual value guarantees. Consistent with the Company's real estate leases, many of the subleases contain usage restrictions, but its subleases do not contain financial covenants and restrictions. The undiscounted cash flows to be received under operating subleases were as follows: Operating Leases 2023 $ 6,308 2024 6,365 2025 6,536 2026 6,737 2027 6,868 Thereafter 41,805 Total $ 74,619 |
Leases | Leases The Company utilizes land and buildings in its operations under various operating and finance lease agreements. The Company does not consider any one of these individual leases material to the Company's operations. Initial lease terms are generally for 20 years and, in many cases, provide for renewal options and in most cases rent escalations. As of January 1, 2023, the Company's leases hav e remaining lease terms of 0.5 years to 18.0 years. Some of the Company's leases include options to extend the lease for up to 30 additional years. Certain leases require contingent rent, determined as a percentage of sales as defined by the terms of the applicable lease agreement. For most locations, the Company is obligated for occupancy related costs including payment of property taxes, insurance and utilities. Variable lease payments included in rent expense consist of such contingent rent, certain rent payments based on changes in an index and certain occupancy related costs, such as variable common area maintenance expense and property taxes. The Company is not subject to residual value guarantees under any of the lease agreements. Many of the Company's real estate leases contain usage restrictions, but its leases do not contain financial covenants and restrictions. During the year ended January 3, 2021, the Company completed five sale-leaseback transactions with third parties. The sale-leaseback transactions do not provide for any continuing involvement by the Company other than normal leases where the Company intends to use the property during the lease term. The net proceeds of the sales were $13.3 million which resulted in a net gain of $2.7 million which is included within other expense (income), net, on the consolidated statement of operations. The leases have initial terms of 20 years plus renewal options and have been accounted for as operating leases. Lease expense consisted of the following: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Operating lease cost $ 25,946 $ 26,375 $ 26,026 Finance lease costs: Amortization of right-of-use assets $ 80 $ 102 98 Interest on lease liabilities 87 120 136 Total finance lease costs $ 167 $ 222 $ 234 Variable lease costs $ 7,634 $ 7,320 6,999 Sublease income (6,523) (6,092) (4,853) Total lease costs $ 27,224 $ 27,825 $ 28,406 Supplemental balance sheet information related to leases is as follows: January 1, 2023 January 2, 2022 Operating Leases Operating lease right-of-use assets $ 146,681 $ 154,127 Other current liabilities $ 10,496 $ 10,381 Operating lease liabilities 155,355 163,270 Total operating lease liabilities $ 165,851 $ 173,651 Finance Leases Property and equipment, gross $ 850 $ 850 Accumulated amortization (630) (551) Property and equipment, net $ 220 $ 299 Current portion of long-term debt $ 62 $ 63 Long-term debt, net of current portion 367 438 Total finance lease liabilities $ 429 $ 501 Weighted Average Remaining Lease Term (in Years) Operating leases 11.2 12.1 Finance leases 5.8 6.4 Weighted Average Discount Rate Operating leases 7.74 % 7.71 % Finance leases 19.51 % 18.73 % Supplemental cash flow information related to leases is as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 25,195 $ 25,333 $ 26,078 Operating cash flows for finance leases 87 120 136 Financing cash flows for finance leases 68 80 60 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 9,090 4,975 19,150 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 3,480 2,761 1,773 Operating lease liabilities 4,593 3,451 1,971 Maturities of lease liabilities were as follows: Operating Leases Finance Leases 2023 $ 22,845 $ 141 2024 24,185 113 2025 23,525 117 2026 22,640 117 2027 21,530 122 Thereafter 140,391 122 Total lease payments 255,116 732 Less amount representing interest (89,265) (303) Total discounted lease liabilities 165,851 429 Less current portion (10,496) (62) Long-term portion of lease liabilities $ 155,355 $ 367 The Company subleases land and buildings related to closed restaurant locations under various operating sublease agreements. Initial sublease terms are generally for the period of time remaining on the head lease term and, in some cases, subleases provide for renewal options and in most cases rent escalations. As of January 1, 2023, the Company's subleases have remaining sublease terms o f 0.5 years to 14.5 years. Some of the Company's subleases include options to extend the lease for up to 25 years. Variable l ease payments included in sublease income consist of certain occupancy related costs, such as variable common area maintenance expense and property taxes where the Company makes the real estate payment and is reimbursed by the lessee. The sublease agreements do not include residual value guarantees. Consistent with the Company's real estate leases, many of the subleases contain usage restrictions, but its subleases do not contain financial covenants and restrictions. The undiscounted cash flows to be received under operating subleases were as follows: Operating Leases 2023 $ 6,308 2024 6,365 2025 6,536 2026 6,737 2027 6,868 Thereafter 41,805 Total $ 74,619 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Jan. 01, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt Long-term debt at January 1, 2023 and January 2, 2022 consisted of the following: January 1, 2023 January 2, 2022 Finance leases $ 429 $ 501 Less: current portion of long-term debt (62) (63) $ 367 $ 438 Senior Credit Facility. On November 23, 2020, the Company terminated its former senior secured revolving credit facility, referred to as the "former senior credit facility," and entered into a new senior secured credit facility among the Company and the lenders, which is referred to as the "senior credit facility." The senior credit facility is comprised of a term loan facility (the "term loan facility") of $75.0 million and a revolving credit facility (the "revolving credit facility") of up to $10.0 million and matures on November 23, 2025. The senior credit facility also provides for potential incremental term loan borrowing increases of up to $37.5 million in the aggregate, subject to, among other items, compliance with a minimum Total Leverage Ratio and other terms specified in the senior credit facility. As required by the terms of the senior credit facility, the proceeds from the sale of Taco Cabana were used to fully repay the outstanding term loan borrowings on August 16, 2021. The early repayment was subject to a 103% loan prepayment premium. On January 1, 2023, there were no borrowings under the revolving credit facility. The senior credit facility provides that the Company must maintain minimum Liquidity (as defined in the senior credit facility) of $20.0 million (the "Liquidity Threshold") until January 3, 2022. The senior credit facility also provides that the Company is not required to be in compliance with the Total Leverage Ratio under the senior credit facility until January 3, 2022 or the date in which Liquidity is less than the Liquidity Threshold. The Company will be permitted to exercise equity cure rights with respect to compliance with the Total Leverage Ratio subject to certain restrictions as set forth in the senior credit facility. Borrowings under the senior credit facility bear interest at a rate per annum, at the Company's option, equal to either (all terms as defined in the senior credit facility): 1) the Base Rate plus the Applicable Margin of 6.75% with a minimum Base Rate of 2.00%, or 2) the LIBOR (or Benchmark Replacement) Rate plus the Applicable Margin of 7.75%, with a minimum LIBOR (or Benchmark Replacement) Rate of 1.00%. In addition, the senior credit facility requires the Company to pay a commitment fee of 0.50% per annum on the daily amount of the unused portion of the revolving credit facility. The outstanding borrowings under the revolving credit facility are prepayable without penalty or premium (other than customary breakage costs). The outstanding borrowings under the term loan facility were voluntarily prepayable by the Company, and the senior credit facility required that proceeds received when certain prepayment events (as defined in the senior credit facility) occurred must be used to reduce the outstanding revolver and term loan borrowings under the senior credit facility. Voluntary and mandatory prepayments of the term loan facility were subject to payment of an Applicable Premium as defined under the senior credit facility. The Company's senior credit facility contains customary default provisions, including without limitation, a cross default provision pursuant to which it is an event of default under this facility if there is a default under any of the Company's indebtedness having an outstanding principal amount in excess of $5.0 million which results in the acceleration of such indebtedness prior to its stated maturity or is caused by a failure to pay principal when due. The senior credit facility contains certain covenants, including, without limitation, those limiting the Company's ability to, among other things, incur indebtedness, incur liens, sell or acquire assets or businesses, change the character of its business in any material respects, engage in transactions with related parties, make certain investments, make certain restricted payments or pay dividends. The Company's obligations under the senior credit facility are secured by all of the Company's and its subsidiaries' assets (including a pledge of all of the capital stock and equity interests of our subsidiaries). Under the senior credit facility, the lenders may terminate their obligation to advance and may declare the unpaid balance of borrowings, or any part thereof, immediately due and payable upon the occurrence and during the continuance of customary defaults which include, without limitation, payment default, covenant defaults, bankruptcy type defaults, defaults on other indebtedness, certain judgments or upon the occurrence of a change of control (as specified in the senior credit facility). As of January 1, 2023, the Company was in compliance with the financial covenants under its senior credit facility. At January 1, 2023, $10.0 million was available for borrowing under the revolving credit facility. At January 1, 2023, there were no principal payments required on borrowings under the senior credit facility over each of the next five years. Interest expense on the Company's long-term debt was $0.2 million, $4.9 million and $4.7 million for the years ended January 1, 2023, January 2, 2022 and January 3, 2021, respectively. For the years ended January 2, 2022 and January 3, 2021, $4.7 million and $4.5 million, respectively, was included in income (loss) from discontinued operations. For the years ended January 2, 2022 and January 3, 2021 , the Company recognized a loss on extinguishment of debt totaling $5.3 million and $1.2 million, respectively, for unamortized deferred financing costs related to the capacity reduction and termination of the term loan under its senior credit facility and its former senior credit facility, which is included in income (loss) from discontinued operations for the years ended January 2, 2022 and January 3, 2021 . |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's income tax provision (benefit) was comprised of the following: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Current: Federal $ 3,568 $ 1,365 $ (8,092) Foreign 257 362 278 State 273 (42) 137 4,098 1,685 (7,677) Deferred: Federal (5,641) (318) 2,259 State (242) (2,275) (582) Valuation allowance 2,753 1,991 (1,044) (3,130) (602) 633 $ 968 $ 1,083 $ (7,044) Deferred income taxes reflect the effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred income tax assets and liabilities at January 1, 2023 and January 2, 2022 were as follows: January 1, 2023 January 2, 2022 Deferred income tax assets: Accrued vacation benefits $ 473 $ 544 Incentive compensation 1,124 1,206 Other accruals 2,228 2,115 Capital loss carryfoward 7,830 9,023 Operating lease liabilities 41,877 43,825 Property and equipment depreciation 3,405 — Occupancy costs 21 31 Tax credit carryforwards 1,661 1,204 Federal net operating loss 2,376 872 Other 1,984 1,430 Gross deferred income tax assets 62,979 60,250 Deferred income tax liabilities: Right-of-use operating lease assets (36,562) (38,418) Property and equipment depreciation — (167) Amortization of other intangibles, net (52) (52) Cloud-based software deferred costs (448) (1,127) Other (322) (287) Gross deferred income tax liabilities (37,384) (40,051) Less: Valuation allowance (25,797) (20,428) Net deferred income tax liabilities $ (202) $ (229) The Company establishes a valuation allowance to reduce the carrying amount of deferred income tax assets when it is more likely than not that it will not realize some portion or all of the tax benefit of its deferred tax assets. The Company evaluates whether its deferred income tax assets are probable of realization on a quarterly basis. In performing this analysis, the Company considers all available positive and negative evidence including historical operating results, the estimated timing of future reversals of existing taxable temporary differences and, when appropriate, estimated future taxable income exclusive of reversing temporary differences and carryforwa rds. In 2019, the Company determined that it was more likely than not that its deferred tax assets would not be fully realized in future periods and established a valuation allowance against federal and state deferred tax assets. At January 1, 2023 and January 2, 2022, the Company had a valuation allowance of $25.8 million and $20.4 million, respectively, against deferred income tax assets where it was determined to be more likely than not that the deferred income tax assets will not be realized through the reversal of existing deferred tax liabilities. The valuation allowance increased $5.4 million in 2022, of which $6.6 million is recorded in continuing operations related to changes in the Company's deferred tax assets and liabilities and a decrease of $1.2 million is recorded in discontinued operations primarily related to adjustments to the capital loss carryforward resulting from the sale of Taco Cabana that the Company does not expect to realize. The valuation allowance increased $10.3 million in 2021 of which $1.2 million is recorded in continuing operations related to changes in the Company's deferred tax assets and liabilities and $9.0 million is recorded in discontinued operations primarily related to the capital loss carryforward resulting from the sale of Taco Cabana that the Company does not expect to realize. The Company's 2021 income tax provision also includes $0.7 million from changes in tax laws and rates and changes in judgement about the realization of deferred tax assets. The Company's ability to utilize deferred income tax assets and estimate future t axable income for federal and state purposes can significantly change based on future events and operating results. The Company has deferred tax benefits of $1.2 million related to federal employment tax credits which, if unutilized after various times beginning in 2038, will have a reduced value of $0.3 million. The Company also has a deferred tax benefit of $1.3 million (for which a valuation allowance has been established) related to a Florida net operating loss carryforward that has no expiration date. The Company has a federal net operating loss carryforward of $11.3 million that does not expire. In addition, the Company has federal capital loss carryforwards of $37.3 million, which will expire in 2026 (for which a valuation allowance has been established). The Company's effective tax rate was (6.6)%, (15.5)%, and 67.5% for the years ended January 1, 2023, January 2, 2022 and January 3, 2021, respectively. A reconciliation of the statutory federal income tax provision (benefit) to the effective tax provision (benefit) was as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Statutory federal income tax provision (benefit) $ (3,086) $ (1,471) $ (2,190) State income taxes, net of federal benefit (216) (617) (351) Change in valuation allowance 2,753 1,991 (1,044) Change in federal income tax rate and tax methods — — (3,846) Change in state income tax rate — (1,092) — Net share-based compensation-tax benefit deficiencies 487 70 276 Unrecognized tax benefits — 731 — Loss on transfer of assets — 1,012 — Non-deductible expenses 371 113 122 Foreign taxes 257 362 278 Employment tax credits (253) 63 (158) Foreign tax credits/deductions (54) (338) (241) Other 709 259 110 $ 968 $ 1,083 $ (7,044) Tax Law Changes. On March 27, 2020, the CARES Act was signed into law. The CARES Act includes provisions that allow net operating losses in 2018, 2019 and 2020 to be carried back for up to five years and eliminates the 80% taxable income limitation on net operating loss deductions for 2018 through 2020. The CARES Act also includes technical amendments that are retroactive to 2018 which permit certain assets to be classified as qualified improvement property and expensed immediately. These changes allowed the Company to record an incremental benefit of $3.8 million, which represents the impact of carrying net operating losses from 2018 and 2019 back to years with a higher federal corporate income tax rate as well as reclassifying certain assets as qualified improvement property and other changes to depreciation methods for certain assets made in conjunction with a cost segregation study conducted prior to filing the Company's 2019 federal income tax return in 2020. Unrecognized Tax Benefits. The Company is currently under examination by the Internal Revenue Service for the tax years 2013–2019. It is not currently under examination by any other taxing jurisdictions. The tax years 2013–2021 remain open to examination by the taxing jurisdictions to which the Company is subject. Although it is not reasonably possible to estimate the amount by which unrecognized tax benefits may increase within the next twelve months due to uncertainties regarding the timing of any examinations, the Company does not expect unrecognized tax benefits to significantly change in the next twelve months. A reconciliation of the changes in the gross balance of unrecognized tax benefits was as follows: Year Ended January 1, 2023 January 2, 2022 Balance, beginning of period $ 1,958 $ — Increases related to tax positions taken during the current year — — Increases (Decrease) related to tax positions taken during the prior year (36) 1,958 Decreases related to settlements with taxing authorities — — Decreases related to lapse of applicable statute of limitations — — Balance, end of period $ 1,922 $ 1,958 As of January 1, 2023, the total amount of unrecognized tax benefits that, if recognized, would reduce the effective tax rate, is $1.7 million after considering the federal impact of state income taxes. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 01, 2023 | |
Share-Based Payment Arrangement [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. Under the share repurchase program, the Company repurchased 14,746 shares of common stock valued at approximately $0.2 million and 854,297 shares of common stock valued at approximately $9.4 million during the years ended January 1, 2023 and January 2, 2022, respectively. Additionally, as a result of net share settlement to satisfy the minimum statutory tax withholding requirements for certain employees, the Company repurchased 104,101 shares of common stock valued at approximately $0.7 million during the year ended January 1, 2023. 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") in order to be able to compensate its employees and directors by issuing stock options, stock appreciation rights, or stock awards to them under this plan. The aggregate number of shares of stock authorized for grants or awards under the 2021 Plan is 1,744,039 shares, which is comprised of an original authorization of 2,000,000 shares reduced for shares granted under the 2012 Plan subsequent to March 1, 2021. Additionally, any shares of stock granted under the 2012 Plan that are cancelled, forfeited, terminated or settled in cash become available for grants or awards under the 2021 Plan unless the awards are tendered, cancelled, forfeited, withheld or terminated in order to pay the exercise price, purchase price or any taxes or tax withholdings. As of January 1, 2023, there w ere 1,248,717 shar es available for future grants or awards under the 2021 Plan. During the year ended January 1, 2023, 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 four During the year ended January 1, 2023, the Company granted non-employee directors 80,268 non-vested restricted shares under the 2021 Plan. During the years ended January 2, 2022 and January 3, 2021, the Company granted non-employee directors 37,874 and 79,260 non-vested restricted shares, respectively, under the 2012 Plan. The weighted average fair value at the grant date for restricted non-vested shares issued to directors during the years ended January 1, 2023, January 2, 2022 and January 3, 2021 was $6.79 per share, $14.39 per share and $8.16 per share, respectively. These shares vest and become non-forfeitable over a one five During the year ended January 1, 2023, 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 During the year ended January 2, 2022, the Company granted certain employees a total of 64,089 restricted stock units under the 2012 Plan subject to performance conditions, of which 4,619 restricted stock units related to discontinued operations. The restricted stock units vest and become non-forfeitable at the end of a three Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the applicable requisite service period of the award (the vesting period) using the straight-line method, or for restricted stock units subject to market performance conditions using the accelerated method. Forfeitures are recognized as they occur. Stock-based compensation expense from continuing operations for the years ended January 1, 2023, January 2, 2022 and January 3, 2021 was $6.1 million, $4.2 million and $2.8 million, respectively. Stock-based compensation expense from discontinued operations for the years ended January 1, 2023, January 2, 2022 and January 3, 2021 was $(0.1) million, $1.9 million and $0.7 million, respectively. As of January 1, 2023, the total unrecognized stock-based compensation expense related to non-vested shares and restricted stock units was approximately $3.4 million. At January 1, 2023, the remaining weighted average vesting period for non-vested restricted shares was 1.4 years and restricted stock units was 1.8 years. A summary of all non-vested restricted shares and restricted stock units activity for the year ended January 1, 2023 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Average Grant Date Units Weighted Average Grant Date Outstanding at January 2, 2022 769,018 $ 11.19 64,175 $ 17.45 Granted 493,049 8.83 107,539 9.02 Vested/Released (558,012) 10.89 (62,879) 11.89 Forfeited (86,308) 10.97 (5,021) 17.43 Outstanding at January 1, 2023 617,747 $ 9.61 103,814 $ 12.09 The fair value of the non-vested restricted shares and all other restricted stock units is based on the closing price on the date of grant. The fair value of the shares vested and released during the years ended January 1, 2023, January 2, 2022 and January 3, 2021 was $4.5 million, $5.4 million and $1.2 million, respectively. During the year ended January 1, 2023, 558,012 non-vested restricted shares and 62,879 shares subject to previously granted restricted stock units vested. A portion of these vested stock awards were net share settled. Based upon the Company's closing stock price on the vesting date, the Company withheld 104,101 shares related to previously non-vested restricted shares and 24,744 shares related to restricted stock units to settle the employees' minimum statutory obligation for the applicable income and other employment taxes. Subsequently, the Company remitted the required funds to the appropriate taxing authorities. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Jan. 01, 2023 | |
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. For the years ended January 1, 2023, January 2, 2022 and January 3, 2021, all restricted stock units outstanding were excluded from the computation of diluted earnings per share because including restricted stock units would have been antidilutive as a result of the loss from continuing operations in the period. The computation of basic and diluted EPS is as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Basic and diluted EPS: Loss from continuing operations $ (15,661) $ (8,085) $ (3,386) Income (loss) from discontinued operations 1,102 18,455 (6,825) Net (loss) income $ (14,559) $ 10,370 $ (10,211) Less: income allocated to participating securities — 345 — Net (loss) income available to common stockholders $ (14,559) $ 10,025 $ (10,211) Weighted average common shares—basic 24,965,505 25,356,339 25,341,415 Restricted stock units — — — Weighted average common shares—diluted 24,965,505 25,356,339 25,341,415 Earnings (loss) from continuing operations per common share—basic $ (0.62) $ (0.31) $ (0.13) Earnings (loss) from discontinued operations per common share—basic 0.04 0.71 (0.27) Earnings (loss) per common share—basic $ (0.58) $ 0.40 $ (0.40) Earnings (loss) from continuing operations per common share—diluted $ (0.62) $ (0.31) $ (0.13) Earnings (loss) from discontinued operations per common share—diluted 0.04 0.71 (0.27) Earnings (loss) per common share—diluted $ (0.58) $ 0.40 $ (0.40) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 01, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | 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 services 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 2020. The Company paid Jefferies a transaction fee of $2.0 million upon the sale of Taco Cabana in the third quarter of 2021. As of January 1, 2023 and January 2, 2022 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jan. 01, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information The following table details supplemental cash flow information and disclosures of non-cash investing and financing activities: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Supplemental cash flow disclosures: Interest paid on long-term debt $ 192 $ 220 $ 309 Income tax payments (refunds), net 411 (6,180) (2,073) Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 2,892 $ 2,860 $ 325 Cash and restricted cash reconciliation: Cash $ 32,167 $ 36,797 $ 49,778 Restricted cash 3,631 3,837 3,584 Cash and restricted cash, end of year $ 35,798 40,634 $ 53,362 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 01, 2023 | |
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 leases, 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 January 1, 2023, was $4.4 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 through a stock purchase agreement. The Company's previous owners, 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 January 1, 2023. 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 January 1, 2023 was $7.0 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 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 reasonably estimable. If a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. During the year ended January 1, 2023, the Company recognized legal settlement proceeds of approximately $1.3 million before legal fees within other expense (income), net, in the consolidated statement of operations. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jan. 01, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans Fiesta offers certain of the Company's salaried employees the option to participate in the Fiesta Corporation Retirement Savings Plan (the "Retirement Plan"). The Retirement Plan includes a savings option pursuant to section 401(k) of the Internal Revenue Code in addition to a post-tax savings option. Fiesta may elect to contribute to the Retirement Plan on an annual basis. Contributions made by Fiesta to the Retirement Plan for the Company's employees are made after the end of each plan year. For 2022 and 2021, Fiesta's discretionary annual contribution is equal to 50% of the employee's contribution up to the first 6% of eligible compensation for a maximum Fiesta contribution of 3% of eligible compensation per participating employee. Under the Retirement Plan, Fiesta contributions prior to and after 2020 begin to vest after one year and fully vest after five years of service. A year of service is defined as a plan year during which an employee completes at least 1,000 hours of service. For 2020, Fiesta's discretionary contribution is equal to 100% of the first 3% of eligible compensation plus 50% of the next 2% of eligible compensation through the second quarter of 2020. On July 1, 2020, the Company suspended its employer matching contribution through the end of the year as a result of the COVID-19 Pandemic. Fiesta contributions for 2020 vested immediately. Participating employees may contribute up to 50% of their salary annually to either of the savings options, subject to other limitations. The employees have various investment options available under a trust established by the Retirement Plan. Retirement Plan employer matching expense for each of the years ended January 1, 2023, January 2, 2022 and January 3, 2021 was $0.2 million. Fiesta also has a Deferred Compensation Plan which permits employees not eligible to participate in the Retirement Plan because they have been excluded as "highly compensated" employees (as so defined in the Retirement Plan) to voluntarily defer portions of their base salary and annual bonus. All amounts deferred by the participants earn interest at 8% per annum. There is no Company matching on any portion of the funds. At January 1, 2023, and January 2, 2022, a total of $0.3 million for each period was deferred by the Company's employees under the Deferred Compensation Plan, including accrued interest. |
SCHEDULE II_VALUATION AND QUALI
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jan. 01, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (In thousands of dollars) Amounts and disclosures within this schedule relate to the Company's continuing operations. Column B Column C Column D Column E Description Balance at Charged to Charged to Deduction Balance Year ended January 1, 2023: Deferred income tax valuation allowance $ 20,428 $ 5,369 $ — $ — $ 25,797 Year ended January 2, 2022: Deferred income tax valuation allowance 10,161 10,267 — — 20,428 Year ended January 3, 2021: Deferred income tax valuation allowance 9,902 259 — — 10,161 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Jan. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | Basis of Consolidation. The 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 years ended January 1, 2023 and January 2, 2022 each contained 52 weeks. The fiscal year ended January 3, 2021 contained 53 weeks. |
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. |
Use of Estimates | Use of Estimates . The preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the 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. |
Concentrations of Risk | Concentrations of Risk. Food and supplies are ordered from approved suppliers and are shipped to the restaurants via distributors. Performance Food Group, Inc. is the primary distributor of food and beverage products and supplies for Pollo Tropical. In the years ended January 1, 2023 and January 2, 2022, Performance Food Group, Inc. accounted for approximately 97% and 96%, respectively, of the food and supplies delivered to restaurants. The Company's limited distributor relationships could have an adverse effect on the Company's operations. |
Cash and Cash Equivalents | Cash and Cash Equ ivalents. |
Restricted Cash | Restricted Cash. The Company's restricted cash is comprised of certain cash balances that are reserved as cash collateral for the Company's existing letters of credit. |
Inventories | Inventories. Inventories, primarily consisting |
Property and Equipment | Property and Equipment. The Company capitalizes all direct costs incurred to construct and substantially improve its restaurants. These costs are depreciated and charged to expense based upon their property classification when placed in service. Property and equipment is recorded at cost. Application development stage costs for significant internally developed software projects are capitalized and amortized. Repairs and maintenance activities are expensed as incurred. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Buildings and improvements 5 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to finance lease Shorter of useful life or lease term |
Cloud-Based Computing Arrangements | Cloud-Based Computing Arrangements. The Company defers and amortizes application development stage costs for cloud-based computing arrangements over the life of the related service (subscription) agreement. |
Goodwill | Goodwill. Goodwill represents the excess purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets acquired by Carrols Restaurant Group, Inc. ("Carrols"), Fiesta's former parent company, from the acquisition of Pollo Tropical in 1998. Goodwill is not amortized but is assessed for impairment at least annually as of the last day of the fiscal year or more frequently if impairment indicators exist. |
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. |
Deferred Financing Costs | Deferred Financing Costs. Financing costs incurred and the original issue discount recognized in obtaining revolving credit facilities are capitalized and included within other assets on the consolidated balance sheets and are amortized over the life of the related credit facility as interest expense on a straight-line basis. Financing costs incurred and original issue discount recognized in obtaining long-term debt are capitalized and amortized over the term of the associated debt agreement as interest expense using the effective interest method. These financing costs and the original issue discount are presented as a reduction from the carrying amount of the related long-term debt balance on the consolidated balance sheets. |
Leases | Leases. The Company assesses whether an agreement contains a lease at inception. All leases are reviewed for finance or o perating classification once control is obtained. The majority of the Company's leases are operating leases. Operating leases are included within operating lease ROU assets, other current liabilities, and operating lease liabilities on the 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, on the 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 |
Income Taxes | Income Taxes. Deferred income tax assets and liabilities are based on the difference between the financial statement and tax bases of assets and liabilities as measured by the tax rates that are anticipated to be in effect when those differences reverse. The deferred tax provision generally represents the net change in deferred tax assets and liabilities during the period. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is established when it is necessary to reduce deferred tax assets to amounts for which realization is more likely than not. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. |
Advertising Costs | Advertising Costs. All advertising costs are expensed as incurred. |
Cost of Sales | Cost of Sales. The Company includes the cost of food, beverage and paper, net of any discounts, in cost of sales. Cost of sales excludes depreciation and amortization expense, which are presented separately on the consolidated statement of operations. |
Insurance | Insurance. The Company is insured for workers' compensation, general liability and medical insurance claims under policies where it pays all claims, subject to stop-loss limitations both for individual claims and for general liability, medical insurance and certain workers' compensation claims in the aggregate. Losses are accrued based upon estimates of the aggregate liability for claims based on the Company's experience and certain actuarial methods used to measure such estimates. The Company does not discount any of its self-insurance obligations. |
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 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. • Term Loan Borrowings. |
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 percent 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. Gift Cards . The Company sells gift cards to its customers in its restaurants and through select third parties. The Company recognizes revenue from gift cards upon redemption by the customer. For unredeemed gift cards that the Company expects to be entitled to breakage, the Company recognizes expected breakage as revenue in proportion to the pattern of redemption by the customers. The gift cards have no stated expiration dates. Revenues from unredeemed gift cards and gift card liabilities, which are recorded in other current liabilities, are not material to the Company's financial statements. Loyalty Program. The Company's loyalty program for Pollo Tropical (My Pollo™) allows eligible customers who enroll in the program to earn points for every dollar spent. After accumulating a certain number of points, the customer earns a reward that can be used for future purchases at Pollo Tropical. Earned rewards expire 90 days after they are issued. Earned points that have not been converted to rewards do not currently expire. The Company defers revenue associated with the estimated standalone selling price of points earned by customers as each point is earned, net of points the Company does not expect to be redeemed. The estimated standalone selling price of each point earned is based on the estimated value of the reward which is expected to be redeemed. Loyalty revenue is recognized when a customer redeems an earned reward. For unredeemed rewards that the Company expects to be entitled to breakage, the Company recognizes expected breakage as revenue in proportion to the pattern of redemption of the rewards by the customers. The costs associated with rewards are recorded when they are redeemed and are included within cost of sales on the consolidated statements of operations. Deferred revenue associated with the rewards is included within other current liabilities on the consolidated balance sheets. |
Guidance Adopted in 2021 and Recent Accounting Pronouncements | Guidance Adopted in 2021. In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740) ("ASU No. 2019-12"), which is a part of the Simplification Initiative being undertaken by the FASB to reduce complexity of accounting standards. The amendments in this update simplify the accounting for income taxes by removing certain exceptions, the most notable for the Company being the exception to the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss for the full year. The Company adopted this new accounting standard on January 4, 2021, and will apply it prospectively in each period after the date of adoption. The impact of the standard is largely dependent on interim and anticipated profit or loss in a given period, however the Company does not expect ASU No. 2019-12 to have a significant impact on its financial statements. Recent Accounting Pronouncements . In March 2020, the FASB issued 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 January 1, 2023, 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. |
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 |
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. Under the share repurchase program, the Company repurchased 14,746 shares of common stock valued at approximately $0.2 million and 854,297 shares of common stock valued at approximately $9.4 million during the years ended January 1, 2023 and January 2, 2022, respectively. Additionally, as a result of net share settlement to satisfy the minimum statutory tax withholding requirements for certain employees, the Company repurchased 104,101 shares of common stock valued at approximately $0.7 million during the year ended January 1, 2023. 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment Useful Lives | Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Buildings and improvements 5 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to finance lease Shorter of useful life or lease term Property and equipment consisted of the following: January 1, 2023 January 2, 2022 Leasehold improvements (1) $ 135,805 $ 132,641 Equipment 119,029 117,652 Assets subject to finance leases 850 850 255,684 251,143 Less accumulated depreciation and amortization (168,578) (161,259) $ 87,106 $ 89,884 (1) Leasehold improvements include the cost of new buildings constructed on leased land. |
Dispositions (Tables)
Dispositions (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | A summary of the results of the discontinued operations for the years ended January 2, 2022 and January 3, 2021 is as follows: Year Ended January 2, 2022 January 3, 2021 Major classes of line items constituting pretax loss of discontinued operations: Revenues: Total revenues $ 152,339 $ 239,445 Costs and expenses: Cost of sales 43,480 70,433 Restaurant wages and related expenses (including stock-based compensation expense of $172 and $127, respectively) 48,399 74,817 Restaurant rent expense 12,995 22,588 Other restaurant operating expenses 24,814 34,357 General and administrative (including stock-based compensation expense of $1,688 and $603, respectively) 11,442 13,229 Depreciation and amortization 7,799 16,197 Pre-opening costs — 69 Other income and expense items that are not major 3,935 10,133 Total operating expenses 152,864 241,823 Loss from operations (525) (2,378) Interest expense 4,678 4,464 Gain on sale of Taco Cabana (24,979) — Loss on extinguishment of debt 5,307 1,241 Income (loss) from discontinued operations before income taxes 14,469 (8,083) Benefit from income taxes (3,986) (1,258) Income (loss) from discontinued operations, net of tax $ 18,455 $ (6,825) A summary of significant investing activity and non-cash operating, investing, and financing activity of the discontinued operations from the consolidated statements of cash flows is as follows: Year Ended January 2, 2022 January 3, 2021 Non-cash operating activities: Loss (gain) on disposals of property and equipment, net $ (217) $ (551) Stock-based compensation 1,860 730 Impairment and other lease charges 132 1,116 Loss on extinguishment of debt 5,307 1,241 Gain on sale of Taco Cabana (24,979) — Depreciation and amortization 7,799 16,197 Investing activities: Capital expenditures: New restaurant development $ — $ (854) Restaurant remodeling (1,283) (745) Other restaurant capital expenditures (5,050) (4,728) Corporate and restaurant information systems (169) (1,559) Total capital expenditures (6,502) (7,886) Proceeds received from sale of Taco Cabana 74,910 — Proceeds from disposals of properties 1,307 4,305 Proceeds from sale-leaseback transactions 3,083 3,966 Net cash provided by investing activities – discontinued operations $ 72,798 $ 385 Supplemental cash flow disclosures: Interest paid on long-term debt (including capitalized interest of $0 and $57, respectively) $ 4,338 $ 4,001 Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ — $ 1,027 Accruals for financing costs associated with debt amendment — 277 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 5,156 18,466 Finance lease ROU assets — 33 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 2,695 953 Operating lease liabilities 3,443 1,217 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
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: January 1, 2023 January 2, 2022 Prepaid contract expenses $ 4,471 $ 4,462 Other 1,210 1,244 $ 5,681 $ 5,706 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Buildings and improvements 5 to 30 years Equipment 3 to 7 years Computer hardware and software 3 to 7 years Assets subject to finance lease Shorter of useful life or lease term Property and equipment consisted of the following: January 1, 2023 January 2, 2022 Leasehold improvements (1) $ 135,805 $ 132,641 Equipment 119,029 117,652 Assets subject to finance leases 850 850 255,684 251,143 Less accumulated depreciation and amortization (168,578) (161,259) $ 87,106 $ 89,884 (1) Leasehold improvements include the cost of new buildings constructed on leased land. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A summary of changes in goodwill during the years ended January 1, 2023, January 2, 2022 and January 3, 2021 is as follows: January 1, 2023 January 2, 2022 January 3, 2021 Goodwill, gross $ 56,307 $ 56,307 $ 56,307 Accumulated impairment losses — — — Goodwill $ 56,307 $ 56,307 $ 56,307 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets and Other Lease Charges (Recoveries) (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Restructuring and Related Activities [Abstract] | |
Impairment of Long-Lived Assets by Segment | A summary of impairment of long-lived assets, which also includes right-of-use asset impairment, and other lease charges (recoveries) is as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Impairment of long-lived assets $ 2,288 $ 2,095 $ 7,318 Other lease charges (recoveries) (874) (557) 705 $ 1,414 $ 1,538 $ 8,023 |
Other Lease Charges (Recoveries) by Segment | A summary of impairment of long-lived assets, which also includes right-of-use asset impairment, and other lease charges (recoveries) is as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Impairment of long-lived assets $ 2,288 $ 2,095 $ 7,318 Other lease charges (recoveries) (874) (557) 705 $ 1,414 $ 1,538 $ 8,023 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities consist of the following: January 1, 2023 January 2, 2022 Operating lease liabilities $ 10,496 $ 10,381 Accrued workers' compensation and general liability claims 2,623 3,083 Sales and property taxes 981 921 Other 3,580 3,647 $ 17,680 $ 18,032 |
Other Non-current Liabilities | Other non-current liabilities consist of the following: January 1, 2023 January 2, 2022 Accrued workers' compensation and general liability claims 6,000 6,432 Deferred compensation 273 320 Other 935 1,011 $ 7,208 $ 7,763 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Leases [Abstract] | |
Lease Expense | Lease expense consisted of the following: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Operating lease cost $ 25,946 $ 26,375 $ 26,026 Finance lease costs: Amortization of right-of-use assets $ 80 $ 102 98 Interest on lease liabilities 87 120 136 Total finance lease costs $ 167 $ 222 $ 234 Variable lease costs $ 7,634 $ 7,320 6,999 Sublease income (6,523) (6,092) (4,853) Total lease costs $ 27,224 $ 27,825 $ 28,406 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows: January 1, 2023 January 2, 2022 Operating Leases Operating lease right-of-use assets $ 146,681 $ 154,127 Other current liabilities $ 10,496 $ 10,381 Operating lease liabilities 155,355 163,270 Total operating lease liabilities $ 165,851 $ 173,651 Finance Leases Property and equipment, gross $ 850 $ 850 Accumulated amortization (630) (551) Property and equipment, net $ 220 $ 299 Current portion of long-term debt $ 62 $ 63 Long-term debt, net of current portion 367 438 Total finance lease liabilities $ 429 $ 501 Weighted Average Remaining Lease Term (in Years) Operating leases 11.2 12.1 Finance leases 5.8 6.4 Weighted Average Discount Rate Operating leases 7.74 % 7.71 % Finance leases 19.51 % 18.73 % |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases is as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 25,195 $ 25,333 $ 26,078 Operating cash flows for finance leases 87 120 136 Financing cash flows for finance leases 68 80 60 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 9,090 4,975 19,150 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 3,480 2,761 1,773 Operating lease liabilities 4,593 3,451 1,971 |
Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases Finance Leases 2023 $ 22,845 $ 141 2024 24,185 113 2025 23,525 117 2026 22,640 117 2027 21,530 122 Thereafter 140,391 122 Total lease payments 255,116 732 Less amount representing interest (89,265) (303) Total discounted lease liabilities 165,851 429 Less current portion (10,496) (62) Long-term portion of lease liabilities $ 155,355 $ 367 |
Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases Finance Leases 2023 $ 22,845 $ 141 2024 24,185 113 2025 23,525 117 2026 22,640 117 2027 21,530 122 Thereafter 140,391 122 Total lease payments 255,116 732 Less amount representing interest (89,265) (303) Total discounted lease liabilities 165,851 429 Less current portion (10,496) (62) Long-term portion of lease liabilities $ 155,355 $ 367 |
Undiscounted Cash Flows to be Received Under Operating Subleases | The undiscounted cash flows to be received under operating subleases were as follows: Operating Leases 2023 $ 6,308 2024 6,365 2025 6,536 2026 6,737 2027 6,868 Thereafter 41,805 Total $ 74,619 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt at January 1, 2023 and January 2, 2022 consisted of the following: January 1, 2023 January 2, 2022 Finance leases $ 429 $ 501 Less: current portion of long-term debt (62) (63) $ 367 $ 438 |
Schedule of Maturities of Long-term Debt [Table Text Block] | At January 1, 2023, there were no principal payments required on borrowings under the senior credit facility over each of the next five years. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of the Company’s Income Tax Provision (Benefit) | The Company's income tax provision (benefit) was comprised of the following: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Current: Federal $ 3,568 $ 1,365 $ (8,092) Foreign 257 362 278 State 273 (42) 137 4,098 1,685 (7,677) Deferred: Federal (5,641) (318) 2,259 State (242) (2,275) (582) Valuation allowance 2,753 1,991 (1,044) (3,130) (602) 633 $ 968 $ 1,083 $ (7,044) |
Components of Deferred Income Tax Assets and Liabilities | The components of deferred income tax assets and liabilities at January 1, 2023 and January 2, 2022 were as follows: January 1, 2023 January 2, 2022 Deferred income tax assets: Accrued vacation benefits $ 473 $ 544 Incentive compensation 1,124 1,206 Other accruals 2,228 2,115 Capital loss carryfoward 7,830 9,023 Operating lease liabilities 41,877 43,825 Property and equipment depreciation 3,405 — Occupancy costs 21 31 Tax credit carryforwards 1,661 1,204 Federal net operating loss 2,376 872 Other 1,984 1,430 Gross deferred income tax assets 62,979 60,250 Deferred income tax liabilities: Right-of-use operating lease assets (36,562) (38,418) Property and equipment depreciation — (167) Amortization of other intangibles, net (52) (52) Cloud-based software deferred costs (448) (1,127) Other (322) (287) Gross deferred income tax liabilities (37,384) (40,051) Less: Valuation allowance (25,797) (20,428) Net deferred income tax liabilities $ (202) $ (229) |
Reconciliation of the Statutory Federal Income Tax Provision (Benefit) to the Effective Tax Provision (Benefit) | A reconciliation of the statutory federal income tax provision (benefit) to the effective tax provision (benefit) was as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Statutory federal income tax provision (benefit) $ (3,086) $ (1,471) $ (2,190) State income taxes, net of federal benefit (216) (617) (351) Change in valuation allowance 2,753 1,991 (1,044) Change in federal income tax rate and tax methods — — (3,846) Change in state income tax rate — (1,092) — Net share-based compensation-tax benefit deficiencies 487 70 276 Unrecognized tax benefits — 731 — Loss on transfer of assets — 1,012 — Non-deductible expenses 371 113 122 Foreign taxes 257 362 278 Employment tax credits (253) 63 (158) Foreign tax credits/deductions (54) (338) (241) Other 709 259 110 $ 968 $ 1,083 $ (7,044) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the changes in the gross balance of unrecognized tax benefits was as follows: Year Ended January 1, 2023 January 2, 2022 Balance, beginning of period $ 1,958 $ — Increases related to tax positions taken during the current year — — Increases (Decrease) related to tax positions taken during the prior year (36) 1,958 Decreases related to settlements with taxing authorities — — Decreases related to lapse of applicable statute of limitations — — Balance, end of period $ 1,922 $ 1,958 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Share-Based Payment Arrangement [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 year ended January 1, 2023 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Average Grant Date Units Weighted Average Grant Date Outstanding at January 2, 2022 769,018 $ 11.19 64,175 $ 17.45 Granted 493,049 8.83 107,539 9.02 Vested/Released (558,012) 10.89 (62,879) 11.89 Forfeited (86,308) 10.97 (5,021) 17.43 Outstanding at January 1, 2023 617,747 $ 9.61 103,814 $ 12.09 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income per Share | The computation of basic and diluted EPS is as follows: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Basic and diluted EPS: Loss from continuing operations $ (15,661) $ (8,085) $ (3,386) Income (loss) from discontinued operations 1,102 18,455 (6,825) Net (loss) income $ (14,559) $ 10,370 $ (10,211) Less: income allocated to participating securities — 345 — Net (loss) income available to common stockholders $ (14,559) $ 10,025 $ (10,211) Weighted average common shares—basic 24,965,505 25,356,339 25,341,415 Restricted stock units — — — Weighted average common shares—diluted 24,965,505 25,356,339 25,341,415 Earnings (loss) from continuing operations per common share—basic $ (0.62) $ (0.31) $ (0.13) Earnings (loss) from discontinued operations per common share—basic 0.04 0.71 (0.27) Earnings (loss) per common share—basic $ (0.58) $ 0.40 $ (0.40) Earnings (loss) from continuing operations per common share—diluted $ (0.62) $ (0.31) $ (0.13) Earnings (loss) from discontinued operations per common share—diluted 0.04 0.71 (0.27) Earnings (loss) per common share—diluted $ (0.58) $ 0.40 $ (0.40) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jan. 01, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table details supplemental cash flow information and disclosures of non-cash investing and financing activities: Year Ended January 1, 2023 January 2, 2022 January 3, 2021 Supplemental cash flow disclosures: Interest paid on long-term debt $ 192 $ 220 $ 309 Income tax payments (refunds), net 411 (6,180) (2,073) Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 2,892 $ 2,860 $ 325 Cash and restricted cash reconciliation: Cash $ 32,167 $ 36,797 $ 49,778 Restricted cash 3,631 3,837 3,584 Cash and restricted cash, end of year $ 35,798 40,634 $ 53,362 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - restaurant | 12 Months Ended | |
Jan. 01, 2023 | Jan. 02, 2022 | |
Entity Information [Line Items] | ||
Lease term, new restaurants | 20 years | |
Minimum | ||
Entity Information [Line Items] | ||
Lease term, new restaurants | 20 years | |
Maximum | ||
Entity Information [Line Items] | ||
Lease term, new restaurants | 30 years | |
Supplier Concentration Risk | Cost of Goods and Service Benchmark | Supplies | ||
Entity Information [Line Items] | ||
Percentage of supplies delivered to restaurants provided by one vendor | 97% | 96% |
Entity Operated Units | Pollo Tropical | ||
Entity Information [Line Items] | ||
Number of restaurants | 137 | |
Franchised Units | Pollo Tropical | ||
Entity Information [Line Items] | ||
Number of restaurants | 32 | |
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 | 2 | |
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 | 6 | |
Franchised Units | Pollo Tropical | Florida | Hospital | ||
Entity Information [Line Items] | ||
Number of restaurants | 1 | |
Franchised Units | Pollo Tropical | Florida | Sports and Entertainment Stadium | ||
Entity Information [Line Items] | ||
Number of restaurants | 2 |
Basis of Presentation - Propert
Basis of Presentation - Property Disclosures (Details) | 12 Months Ended |
Jan. 01, 2023 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Basis of Presentation - Fair Va
Basis of Presentation - Fair Value Disclosures (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Level 2 | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan facility | $ 0 | $ 0 |
Dispositions - Narrative (Detai
Dispositions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | 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 and the Company recognized a gain on the sale of Taco Cabana of $25.0 million during the year ended January 2, 2022, which is included within income from discontinued operations, net of tax, in the consolidated statements of operations. | |||
Cash purchase price of disposition | $ 85,000 | |||
Closing adjustments | $ 4,600 | |||
Gain on sale of Taco Cabana | $ 0 | $ 24,979 | $ 0 | |
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of Taco Cabana | 24,979 | $ 0 | ||
Recorded expected insurance proceeds | $ 1,000 | 900 | ||
Discontinued Operations | Transition Services | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Other Income | $ 500 |
Dispositions - Tabular (Details
Dispositions - Tabular (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Major classes of line items constituting pretax loss of discontinued operations: | |||
Disposal Group, Including Discontinued Operation, Other Income | $ 1,100 | ||
Revenues: | |||
Total revenues | $ 152,339 | $ 239,445 | |
Costs and expenses: | |||
Cost of sales | 43,480 | 70,433 | |
Restaurant wages and related expenses (including stock-based compensation expense of $172 and $127, respectively) | 48,399 | 74,817 | |
Restaurant rent expense | 12,995 | 22,588 | |
Other restaurant operating expenses | 24,814 | 34,357 | |
General and administrative (including stock-based compensation expense of $1,688 and $603, respectively) | 11,442 | 13,229 | |
Depreciation and amortization | 7,799 | 16,197 | |
Pre-opening costs | 0 | 69 | |
Other income and expense items that are not major | 3,935 | 10,133 | |
Total operating expenses | 152,864 | 241,823 | |
Income (loss) from operations | (525) | (2,378) | |
Interest expense | 4,678 | 4,464 | |
Gain on sale of Taco Cabana | (24,979) | 0 | |
Loss on extinguishment of debt | 0 | 5,307 | 1,241 |
Income (loss) from discontinued operations before income taxes | 14,469 | (8,083) | |
Provision for (benefit from) income taxes | (3,986) | (1,258) | |
Income (loss) from discontinued operations, net of tax | 1,102 | 18,455 | (6,825) |
Non-cash Operating Activities [Abstract] | |||
Gain on disposals of property and equipment, net | 0 | (124) | (3,267) |
Stock-based compensation | 6,029 | 6,076 | 3,484 |
Impairment and other lease charges (recoveries) | 1,414 | 1,670 | 9,139 |
Loss on extinguishment of debt | 0 | 5,307 | 1,241 |
Gain on sale of Taco Cabana | 0 | (24,979) | 0 |
Depreciation and amortization | 20,053 | 28,373 | 38,206 |
Investing activities: | |||
New restaurant development | 0 | 0 | (1,863) |
Restaurant remodeling | (8,760) | (2,380) | (1,103) |
Other restaurant capital expenditures | (7,820) | (14,732) | (11,270) |
Corporate and restaurant information systems | (2,849) | (2,416) | (4,133) |
Total capital expenditures | (19,429) | (19,528) | (18,369) |
Proceeds received from sale of Taco Cabana | 0 | 74,910 | 0 |
Proceeds from disposals of properties | 0 | 1,307 | 9,559 |
Proceeds from sale-leaseback transactions | 0 | 3,083 | 17,222 |
Net cash provided by investing activities – discontinued operations | 72,798 | 385 | |
Discontinued Operations | |||
Costs and expenses: | |||
Stock-based compensation expense | (100) | 1,900 | 700 |
Loss on extinguishment of debt | 5,307 | 1,241 | |
Non-cash Operating Activities [Abstract] | |||
Gain on disposals of property and equipment, net | (217) | (551) | |
Stock-based compensation | 1,860 | 730 | |
Impairment and other lease charges (recoveries) | 132 | 1,116 | |
Loss on extinguishment of debt | 5,307 | 1,241 | |
Gain on sale of Taco Cabana | (24,979) | 0 | |
Depreciation and amortization | 7,799 | 16,197 | |
Investing activities: | |||
New restaurant development | 0 | (854) | |
Restaurant remodeling | (1,283) | (745) | |
Other restaurant capital expenditures | (5,050) | (4,728) | |
Corporate and restaurant information systems | (169) | (1,559) | |
Total capital expenditures | (6,502) | (7,886) | |
Proceeds received from sale of Taco Cabana | 74,910 | 0 | |
Proceeds from disposals of properties | 1,307 | 4,305 | |
Proceeds from sale-leaseback transactions | 3,083 | 3,966 | |
Supplemental cash flow disclosures: | |||
Capitalized interest included in interest paid | 0 | 57 | |
Interest paid on long-term debt | 4,338 | 4,001 | |
Supplemental cash flow disclosures of non-cash investing and financing activities: | |||
Accruals for capital expenditures | 0 | 1,027 | |
Accruals for financing costs associated with debt | 0 | 277 | |
Operating lease ROU assets | 5,156 | 18,466 | |
Finance lease ROU assets | 0 | 33 | |
Operating lease ROU assets | 2,695 | 953 | |
Operating lease liabilities | 3,443 | 1,217 | |
Discontinued Operations | Restaurant Wages And Related Expenses | |||
Costs and expenses: | |||
Stock-based compensation expense | 172 | 127 | |
Discontinued Operations | General and Administrative Expense | |||
Costs and expenses: | |||
Stock-based compensation expense | $ (100) | $ 1,688 | $ 603 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid contract expenses | $ 4,471 | $ 4,462 |
Other | 1,210 | 1,244 |
Prepaid expenses and other current assets | $ 5,681 | $ 5,706 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Property, Plant and Equipment [Line Items] | ||
Assets subject to finance leases | $ 850 | $ 850 |
Property and equipment, gross | 255,684 | 251,143 |
Less accumulated depreciation and amortization | (168,578) | (161,259) |
Property and equipment, net | 87,106 | 89,884 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 135,805 | 132,641 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 119,029 | $ 117,652 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Assets subject to finance leases, accumulated amortization | $ 630 | $ 551 | |
Depreciation and amortization | $ 20,100 | $ 20,600 | $ 22,000 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - Pollo Tropical - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Goodwill [Line Items] | |||
Changes in goodwill | $ 0 | $ 0 | $ 0 |
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Goodwill | |||
Goodwill | $ 56,307 | $ 56,307 | |
Pollo Tropical | |||
Goodwill | |||
Goodwill, Gross | 56,307 | 56,307 | $ 56,307 |
Accumulated impairment loss | 0 | 0 | 0 |
Goodwill | 56,307 | 56,307 | 56,307 |
Impairment charges | 0 | 0 | 0 |
Impairment charges | $ 0 | $ 0 | $ 0 |
Impairment of Long-Lived Asse_3
Impairment of Long-Lived Assets and Other Lease Charges (Recoveries) - Schedule of Impairment and Other Lease Charges (Recoveries) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Impairment and other lease charges (recoveries) | $ 1,414 | $ 1,670 | $ 9,139 |
Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of long-lived assets | 2,288 | 2,095 | 7,318 |
Other lease charges (recoveries) | (874) | (557) | 705 |
Impairment and other lease charges (recoveries) | $ 1,414 | $ 1,538 | $ 8,023 |
Impairment of Long-Lived Asse_4
Impairment of Long-Lived Assets and Other Lease Charges (Recoveries) - Narrative (Details) $ in Millions | Jan. 01, 2023 USD ($) restaurant | Jan. 02, 2022 USD ($) restaurant | Jan. 03, 2021 restaurant | Sep. 27, 2020 restaurant |
Level 3 | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Level 3 assets measured at fair value | $ | $ 1.7 | $ 0.4 | ||
Pollo Tropical | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Number of closed restaurants | 1 | 1 | 2 | |
Number of impaired restaurants the company continues to operate | 8 | 5 | ||
Pollo Tropical | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||
Impairment and Other Lease Charges [Line Items] | ||||
Number of closed restaurants | 1 |
Other Liabilities - Current (De
Other Liabilities - Current (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Operating lease liabilities | $ 10,496 | $ 10,381 |
Accrued workers' compensation and general liability claims | 2,623 | 3,083 |
Sales and property taxes | 981 | 921 |
Other | 3,580 | 3,647 |
Other liabilities, current | $ 17,680 | $ 18,032 |
Other Liabilities - Noncurrent
Other Liabilities - Noncurrent (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Accrued workers' compensation and general liability claims | $ 6,000 | $ 6,432 |
Deferred compensation | 273 | 320 |
Other | 935 | 1,011 |
Other liabilities, long-term | $ 7,208 | $ 7,763 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | Jan. 03, 2021 USD ($) restaurant | |
Lessee, Lease, Description [Line Items] | |||
Lease term | 20 years | ||
Proceeds from sale-leaseback transactions | $ 0 | $ 3,083 | $ 17,222 |
Gain on disposals of property and equipment, net | $ 0 | $ (124) | $ (3,267) |
Sublease includes options to extend sublease term, up to | 25 years | ||
Continuing Operations | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Sale-leaseback transaction | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 20 years | ||
Number of restaurants | restaurant | 5 | ||
Proceeds from sale-leaseback transactions | $ 13,300 | ||
Gain on disposals of property and equipment, net | $ 2,700 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 20 years | ||
Remaining lease term | 6 months | ||
Sublease, remaining lease term | 6 months | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 30 years | ||
Remaining lease term | 18 years | ||
Sublease, remaining lease term | 14 years 6 months |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 25,946 | $ 26,375 | $ 26,026 |
Finance lease costs: | |||
Amortization of right-of-use assets | 80 | 102 | 98 |
Interest on lease liabilities | 87 | 120 | 136 |
Total finance lease costs | 167 | 222 | 234 |
Variable lease costs | 7,634 | 7,320 | 6,999 |
Sublease income | (6,523) | (6,092) | (4,853) |
Total lease costs | $ 27,224 | $ 27,825 | $ 28,406 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Operating Leases | ||
Operating lease right-of-use assets | $ 146,681 | $ 154,127 |
Other current liabilities | 10,496 | 10,381 |
Operating lease liabilities | 155,355 | 163,270 |
Total operating lease liabilities | 165,851 | 173,651 |
Finance Leases | ||
Assets subject to finance leases | 850 | 850 |
Accumulated amortization | (630) | (551) |
Property and equipment, net | 220 | 299 |
Current portion of long-term debt | 62 | 63 |
Long-term debt, net of current portion | 367 | 438 |
Total finance lease liabilities | $ 429 | $ 501 |
Weighted Average Remaining Lease Term (in Years) | ||
Operating leases | 11 years 2 months 12 days | 12 years 1 month 6 days |
Finance leases | 5 years 9 months 18 days | 6 years 4 months 24 days |
Weighted Average Discount Rate | ||
Operating leases | 7.74% | 7.71% |
Finance leases | 19.51% | 18.73% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - Continuing Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 25,195 | $ 25,333 | $ 26,078 |
Operating cash flows for finance leases | 87 | 120 | 136 |
Financing cash flows for finance leases | 68 | 80 | 60 |
Right-of-use assets obtained in exchange for lease liabilities: | |||
Operating lease ROU assets | 9,090 | 4,975 | 19,150 |
Right-of-use assets and lease liabilities reduced for terminated leases: | |||
Operating lease ROU assets | 3,480 | 2,761 | 1,773 |
Operating lease liabilities | $ 4,593 | $ 3,451 | $ 1,971 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Operating Leases | ||
2023 | $ 22,845 | |
2024 | 24,185 | |
2025 | 23,525 | |
2026 | 22,640 | |
2027 | 21,530 | |
Thereafter | 140,391 | |
Total lease payments | 255,116 | |
Less amount representing interest | (89,265) | |
Total operating lease liabilities | 165,851 | $ 173,651 |
Less current portion | (10,496) | (10,381) |
Long-term portion of lease liabilities | 155,355 | 163,270 |
Finance Leases | ||
2023 | 141 | |
2024 | 113 | |
2025 | 117 | |
2026 | 117 | |
2027 | 122 | |
Thereafter | 122 | |
Total lease payments | 732 | |
Less amount representing interest | (303) | |
Total finance lease liabilities | 429 | 501 |
Less current portion | (62) | (63) |
Long-term portion of lease liabilities | $ 367 | $ 438 |
Leases - Operating Subleases (D
Leases - Operating Subleases (Details) $ in Thousands | Jan. 01, 2023 USD ($) |
Operating Leases | |
2023 | $ 6,308 |
2024 | 6,365 |
2025 | 6,536 |
2026 | 6,737 |
2027 | 6,868 |
Thereafter | 41,805 |
Total | $ 74,619 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Debt Instrument [Line Items] | ||
Finance leases | $ 429 | $ 501 |
Less: current portion of long-term debt | (62) | (63) |
Long-term debt and finance lease obligations, net of current portion | $ 367 | $ 438 |
New Senior Credit Facility (Det
New Senior Credit Facility (Details) - November 2020 Senior Credit Facility - USD ($) $ in Thousands | Nov. 23, 2020 | Jan. 01, 2023 |
Revolving Credit | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 0 | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Senior credit facility, issuance date | Nov. 23, 2020 | |
Debt Instrument, Face Amount | $ 75,000 | |
Senior credit facility, maturity date | Nov. 23, 2025 | |
Senior credit facility, potential incremental increase | $ 37,500 | |
Debt Instrument Covenant Compliance Liquidity Threshold | $ 20,000 | |
LIBOR | Minimum | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1% | |
Alternative Base Rate | Minimum | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2% |
Long-term Debt - Senior Credit
Long-term Debt - Senior Credit Facility (Details) - USD ($) | Nov. 23, 2020 | Jan. 01, 2023 |
Revolving Credit | ||
Line of Credit Facility [Line Items] | ||
Remaining borrowing capacity | $ 10,000,000 | |
Revolving Credit | November 2020 Senior Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Commitment fee margin | 0.50% | |
Cross default provision, minimum debt principal amount | $ 5,000,000 | |
Revolving Credit | November 2020 Senior Credit Facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Senior credit facility, maximum borrowing capacity | $ 10,000,000 | |
Secured Debt | November 2020 Senior Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Senior credit facility, issuance date | Nov. 23, 2020 | |
Senior credit facility, maturity date | Nov. 23, 2025 | |
Senior credit facility, potential incremental increase | $ 37,500,000 | |
Secured Debt | November 2020 Senior Credit Facility | Alternative Base Rate | ||
Line of Credit Facility [Line Items] | ||
Applicable margin | 6.75% | |
Secured Debt | November 2020 Senior Credit Facility | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Applicable margin | 7.75% | |
Secured Debt | November 2020 Senior Credit Facility | Minimum | Alternative Base Rate | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2% | |
Secured Debt | November 2020 Senior Credit Facility | Minimum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1% |
Long-term Debt - Other Disclosu
Long-term Debt - Other Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 0 | $ 5,307 | $ 1,241 |
Interest expense included in discontinued operations | 4,678 | 4,464 | |
Disposal Group Including Discontinued Operation Loss On Extinguishment Of Debt | 5,300 | 1,200 | |
Revolving Credit | |||
Debt Instrument [Line Items] | |||
Interest expense | $ 4,700 | ||
Secured Debt | |||
Debt Instrument [Line Items] | |||
Interest expense | $ 200 | $ 4,900 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Current: | |||
Federal | $ 3,568 | $ 1,365 | $ (8,092) |
Foreign | 257 | 362 | 278 |
State | 273 | (42) | 137 |
Current | 4,098 | 1,685 | (7,677) |
Deferred: | |||
Federal | (5,641) | (318) | 2,259 |
State | (242) | (2,275) | (582) |
Valuation allowance | 2,753 | 1,991 | (1,044) |
Deferred | (3,130) | (602) | 633 |
Provision for income taxes | $ 968 | $ 1,083 | $ (7,044) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Jan. 02, 2022 |
Deferred income tax assets: | ||
Accrued vacation benefits | $ 473 | $ 544 |
Incentive compensation | 1,124 | 1,206 |
Other accruals | 2,228 | 2,115 |
Capital loss carryfoward | 7,830 | 9,023 |
Operating lease liabilities | 41,877 | 43,825 |
Property and equipment depreciation | 3,405 | 0 |
Occupancy costs | 21 | 31 |
Tax credit carryforwards | 1,661 | 1,204 |
Federal net operating loss | 2,376 | 872 |
Other | 1,984 | 1,430 |
Gross deferred income tax assets | 62,979 | 60,250 |
Deferred income tax liabilities: | ||
Right-of-use operating lease assets | (36,562) | (38,418) |
Property and equipment depreciation | 0 | (167) |
Amortization of other intangibles, net | (52) | (52) |
Cloud-based software deferred costs | (448) | (1,127) |
Other | (322) | (287) |
Gross deferred income tax liabilities | (37,384) | (40,051) |
Less: Valuation allowance | (25,797) | (20,428) |
Net deferred tax liabilities | $ (202) | $ (229) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 25,797 | $ 20,428 | |
Valuation allowance on deferred income tax assets | 5,400 | 10,300 | |
Change in valuation allowance | 2,753 | $ 1,991 | $ (1,044) |
Net operating loss carryforwards, employment tax credits | 1,200 | ||
Reduced value of employment tax credits if unutilized after various times beginning 2038 | 300 | ||
Deferred tax benefit related to state net operating loss carryforwards | 1,300 | ||
Deferred tax benefits related to federal net operating loss carryforwards with no expiration date | $ 11,300 | ||
Effective income tax rate | (6.60%) | (15.50%) | 67.50% |
Incremental benefit from change in enacted tax rate | $ (3,800) | ||
Deferred income tax valuation allowance | |||
Operating Loss Carryforwards [Line Items] | |||
Change in valuation allowance | $ 700 | ||
Continuing Operations | |||
Operating Loss Carryforwards [Line Items] | |||
Change in valuation allowance | $ 6,600 | 1,200 | |
Discontinued Operations | |||
Operating Loss Carryforwards [Line Items] | |||
Change in valuation allowance | 1,200 | 9,000 | |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 37,300 | ||
Incremental benefit from change in enacted tax rate | 0 | 0 | (3,846) |
State | |||
Operating Loss Carryforwards [Line Items] | |||
Incremental benefit from change in enacted tax rate | $ 0 | $ (1,092) | $ 0 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Valuation Allowance [Line Items] | |||
Statutory federal income tax provision (benefit) | $ (3,086) | $ (1,471) | $ (2,190) |
State income taxes, net of federal benefit | (216) | (617) | (351) |
Change in valuation allowance | 2,753 | 1,991 | (1,044) |
Change in income tax rate and tax methods | (3,800) | ||
Net share-based compensation-tax benefit deficiencies | 487 | 70 | 276 |
Unrecognized tax benefits | 0 | 731 | 0 |
Loss on transfer of assets | 0 | 1,012 | 0 |
Non-deductible expenses | 371 | 113 | 122 |
Foreign taxes | 257 | 362 | 278 |
Employment tax credits | (253) | 63 | (158) |
Foreign tax credits/deductions | (54) | (338) | (241) |
Other | 709 | 259 | 110 |
Provision for income taxes | 968 | 1,083 | (7,044) |
Federal | |||
Valuation Allowance [Line Items] | |||
Change in income tax rate and tax methods | 0 | 0 | (3,846) |
State | |||
Valuation Allowance [Line Items] | |||
Change in income tax rate and tax methods | $ 0 | $ (1,092) | $ 0 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Balance, beginning of period | $ 1,958 | $ 0 | |
Increases related to tax positions taken during the current year | 0 | 0 | |
Increases (Decrease) related to tax positions taken during the prior year | (36) | ||
Increases (Decrease) related to tax positions taken during the prior year | 1,958 | ||
Decreases related to settlements with taxing authorities | 0 | 0 | |
Decreases related to lapse of applicable statute of limitations | 0 | 0 | |
Unrecognized Tax Benefits | 1,922 | 1,958 | $ 0 |
Unrecognized tax benefits that would reduce effective tax rate | 1,700 | ||
Interest and penalties related to uncertain tax positions | 100 | $ 0 | |
Accrued interest related to uncertain tax positions | $ 100 | $ 100 |
Stockholders' Equity - Purchase
Stockholders' Equity - Purchase of Treasury Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | Feb. 26, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares authorized to be repurchased | 3,000,000 | ||||
Treasury stock purchases | $ 902 | $ 9,356 | $ 3,728 | ||
Share Repurchase Program 2018 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares authorized to be repurchased | 1,500,000 | ||||
Share Repurchase Program 2019 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares authorized to be repurchased | 1,500,000 | ||||
Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury stock purchases (in shares) | 14,746 | 854,297 | |||
Treasury stock purchases | $ 200 | $ 9,400 | |||
Net Share Settlement | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury stock purchases (in shares) | 104,101 | ||||
Treasury stock purchases | $ 700 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | Apr. 28, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares of stock authorized for distribution | 1,744,039 | |||
Number of shares available for future grants | 1,248,717 | |||
Unrecognized stock-based compensation expense | $ 3.4 | |||
Fair value of the shares vested and released | 4.5 | $ 5.4 | $ 1.2 | |
Payment for employee's tax obligation | 0.9 | |||
Discontinued Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | (0.1) | 1.9 | 0.7 | |
Continuing Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 6.1 | $ 4.2 | $ 2.8 | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares of stock authorized for distribution | 2,000,000 | |||
Nonvested Restricted Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares granted in period | 493,049 | |||
Weighted average grant date fair value, grants in period (usd per share) | $ 8.83 | |||
Vested/Released (in shares) | 558,012 | |||
Remaining weighted average vesting period | 1 year 4 months 24 days | |||
Shares withheld for tax withholding obligation | 104,101 | |||
Nonvested Restricted Shares | Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value, grants in period (usd per share) | $ 9.23 | $ 17.43 | $ 9.33 | |
Nonvested Restricted Shares | Employee | Annual Grant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares granted in period | 227,781 | 153,998 | 422,446 | |
Vesting period | 4 years | 4 years | 4 years | |
Nonvested Restricted Shares | Employee | Out-of-Cycle Grant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares granted in period | 185,000 | 366,445 | ||
Vesting period | 1 year | 2 years | ||
Nonvested Restricted Shares | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares granted in period | 80,268 | 37,874 | 79,260 | |
Weighted average grant date fair value, grants in period (usd per share) | $ 6.79 | $ 14.39 | $ 8.16 | |
Nonvested Restricted Shares | Director | Annual Grant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | 1 year | 1 year | |
Nonvested Restricted Shares | Director | Out-of-Cycle Grant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares granted in period | 107,539 | |||
Weighted average grant date fair value, grants in period (usd per share) | $ 9.02 | |||
Vested/Released (in shares) | 62,879 | |||
Remaining weighted average vesting period | 1 year 9 months 18 days | |||
Shares withheld for tax withholding obligation | 24,744 | |||
Restricted Stock Units | Discontinued Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares granted in period | 4,619 | |||
Restricted Stock Units | Annual Grant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares granted in period | 107,539 | 64,089 | ||
Vesting period | 3 years | 3 years | ||
Weighted average grant date fair value, grants in period (usd per share) | $ 9.02 | $ 17.43 | ||
Restricted Stock Units | Annual Grant [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares to be issued at end of performance period | 0 | 0 | ||
Restricted Stock Units | Annual Grant [Member] | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares to be issued at end of performance period | 215,078 | 128,178 | ||
Restricted Stock Units | Chief Executive Officer | Vesting 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested/Released (in shares) | 41,436 | |||
Restricted Stock Units | Chief Executive Officer | Vesting 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested/Released (in shares) | 21,443 |
Stockholders' Equity - Nonveste
Stockholders' Equity - Nonvested Shares and Restricted Stock Units Activity Table (Details) | 12 Months Ended |
Jan. 01, 2023 $ / shares shares | |
Non-Vested Shares | |
Non-Vested Shares and Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 769,018 |
Granted (in shares) | shares | 493,049 |
Vested/Released (in shares) | shares | 558,012 |
Forfeited (in shares) | shares | (86,308) |
Outstanding at end of period (in shares) | shares | 617,747 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period (usd per share) | $ / shares | $ 11.19 |
Granted (usd per share) | $ / shares | 8.83 |
Vested/Released (usd per share) | $ / shares | 10.89 |
Forfeited (usd per share) | $ / shares | 10.97 |
Outstanding at end of period (usd per share) | $ / shares | $ 9.61 |
Restricted Stock Units | |
Non-Vested Shares and Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 64,175 |
Granted (in shares) | shares | 107,539 |
Vested/Released (in shares) | shares | 62,879 |
Forfeited (in shares) | shares | (5,021) |
Outstanding at end of period (in shares) | shares | 103,814 |
Weighted Average Grant Date Fair Value | |
Outstanding at beginning of period (usd per share) | $ / shares | $ 17.45 |
Granted (usd per share) | $ / shares | 9.02 |
Vested/Released (usd per share) | $ / shares | 11.89 |
Forfeited (usd per share) | $ / shares | 17.43 |
Outstanding at end of period (usd per share) | $ / shares | $ 12.09 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) | Jan. 01, 2023 |
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 Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Basic and diluted EPS: | |||
Loss from continuing operations | $ (15,661) | $ (8,085) | $ (3,386) |
Income (loss) from discontinued operations, net of tax | 1,102 | 18,455 | (6,825) |
Net (loss) income | (14,559) | 10,370 | (10,211) |
Less: income allocated to participating securities | 0 | 345 | 0 |
Net (loss) income available to common stockholders | $ (14,559) | $ 10,025 | $ (10,211) |
Weighted average common shares—basic | 24,965,505 | 25,356,339 | 25,341,415 |
Restricted stock units (in shares) | 0 | 0 | 0 |
Weighted average common shares—diluted | 24,965,505 | 25,356,339 | 25,341,415 |
Continuing operations – basic | $ (0.62) | $ (0.31) | $ (0.13) |
Discontinued operations – basic | 0.04 | 0.71 | (0.27) |
Earnings (loss) per common share—basic (usd per share) | (0.58) | 0.40 | (0.40) |
Continuing operations – diluted | (0.62) | (0.31) | (0.13) |
Discontinued operations – diluted | 0.04 | 0.71 | (0.27) |
Earnings (loss) per common share—diluted (usd per share) | $ (0.58) | $ 0.40 | $ (0.40) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Jan. 02, 2022 | Jan. 03, 2021 | Jan. 01, 2023 | |
Related Party Transaction [Line Items] | |||
Fees paid to related party | $ 2,000,000 | $ 1,700,000 | |
Amounts due to related party | $ 0 | $ 0 | |
Jefferies Financial Group, Inc | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 20% | ||
Maximum | |||
Related Party Transaction [Line Items] | |||
Reimbursement to related party of ancillary costs | $ 100,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | Dec. 29, 2019 | |
Cash and Cash Equivalents [Line Items] | ||||
Cash | $ 32,167 | $ 36,797 | $ 49,778 | |
Restricted cash | 3,631 | 3,837 | 3,584 | |
Cash and restricted cash, end of year | 35,798 | 40,634 | 53,362 | $ 13,089 |
Continuing Operations | ||||
Cash and Cash Equivalents [Line Items] | ||||
Interest paid on long-term debt | 192 | 220 | 309 | |
Income tax payments (refunds), net | 411 | (6,180) | (2,073) | |
Accruals for capital expenditures | $ 2,892 | $ 2,860 | $ 325 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Assignments (Details) $ in Millions | Jan. 01, 2023 USD ($) lease restaurant |
Pollo Tropical | |
Loss Contingencies [Line Items] | |
Number of subleases | lease | 2 |
Pollo Tropical | Payment Guarantee | |
Loss Contingencies [Line Items] | |
Lease assignment maximum exposure | $ 4.4 |
Corporate Segment | Payment Guarantee | |
Loss Contingencies [Line Items] | |
Number of restaurants | restaurant | 12 |
Lease assignment maximum exposure | $ 7 |
Retirement Plans (Details)
Retirement Plans (Details) $ in Millions | 12 Months Ended | ||
Jan. 01, 2023 USD ($) hour | Jan. 02, 2022 USD ($) | Jan. 03, 2021 USD ($) | |
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Vesting period for employer match | 5 years | 5 years | |
Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Vesting period for employer match | 1 year | 1 year | |
Required hours of service | hour | 1,000 | ||
401K | Retirement Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum employer contribution, percentage of eligible employee compensation | 3% | 3% | |
Maximum annual contribution per employee, percent | 50% | ||
Retirement Plan employer matching expense | $ 0.2 | $ 0.2 | $ 0.2 |
Interest rate that can be earned by deferred amounts | 8% | ||
Deferred compensation, current and non-current | $ 0.3 | $ 0.3 | |
401K | Retirement Plan | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 50% | 50% | |
Employer matching contribution, percentage of employee compensation | 6% | 6% | |
401K | Retirement Plan | First Tranche [Member] | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 100% | ||
Employer matching contribution, percentage of employee compensation | 3% | ||
401K | Retirement Plan | Second Tranche [Member] | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 50% | ||
Employer matching contribution, percentage of employee compensation | 2% |
SCHEDULE II_VALUATION AND QUA_2
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (Details) - Deferred income tax valuation allowance - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 20,428 | $ 10,161 | $ 9,902 |
Charged to costs and expenses | 5,369 | 10,267 | 259 |
Charged to other accounts | 0 | 0 | 0 |
Deduction | 0 | 0 | 0 |
Balance at end of period | $ 25,797 | $ 20,428 | $ 10,161 |