Fiesta Restaurant (FRGI) 10-Q 10 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jul. 02, 2023	Aug. 03, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 02, 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 $0.01 per share
Entity Trading Symbol	FRGI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001534992
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		26,189,111

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Current assets:
Cash	$ 34,747	$ 32,167
Restricted cash	3,631	3,631
Accounts receivable	5,820	5,270
Inventories	1,763	1,962
Prepaid rent	110	109
Income tax receivable	3,805	3,871
Prepaid expenses and other current assets	6,616	5,681
Total current assets	56,492	52,691
Property and equipment, net	87,018	87,106
Operating lease right-of-use assets	143,861	146,681
Goodwill	56,307	56,307
Other assets	5,186	5,906
Total assets	348,864	348,691
Current liabilities:
Current portion of long-term debt	40	62
Accounts payable	11,748	14,219
Accrued payroll, related taxes and benefits	7,001	6,536
Accrued real estate taxes	2,986	1,805
Other current liabilities	19,177	17,680
Total current liabilities	40,952	40,302
Long-term debt, net of current portion	347	367
Operating lease liabilities	152,613	155,355
Deferred tax liabilities	16	202
Other non-current liabilities	7,072	7,208
Total liabilities	201,000	203,434
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, 29,223,834 and 28,890,688 shares issued, respectively, and 25,634,141 and 25,306,302 shares outstanding, respectively	286	282
Additional paid-in capital	189,761	188,528
Retained earnings (accumulated deficit)	(10,566)	(12,516)
Treasury stock, at cost; 3,034,144 and 2,966,639 shares, respectively	(31,617)	(31,037)
Total stockholders' equity	147,864	145,257
Total liabilities and stockholders' equity	$ 348,864	$ 348,691

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 02, 2023	Jan. 01, 2023
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	29,223,834	28,890,688
Common stock, shares outstanding	25,634,141	25,306,302
Treasury Stock, Common, Shares	3,034,144	2,966,639

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Costs and expenses:
Impairment and other lease charges (recoveries)			$ 2,941	$ 1,408
Income (loss) from continuing operations before taxes	$ 4,211	$ (5,354)	2,034	(6,877)
Provision for income taxes	382	1,134	349	912
Income (loss) from continuing operations	3,829	(6,488)	1,685	(7,789)
Income from discontinued operations, net of tax	30	267	265	212
Net income (loss)	$ 3,859	$ (6,221)	$ 1,950	$ (7,577)
Earnings (loss) per common share:
Continuing operations - basic (usd per share)	$ 0.15	$ (0.26)	$ 0.06	$ (0.31)
Discontinued operations - basic (usd per share)	0	0.01	0.01	0.01
Basic (usd per share)	0.15	(0.25)	0.07	(0.30)
Continuing operations - diluted (usd per share)	0.15	(0.26)	0.06	(0.31)
Discontinued operations - diluted (usd per share)	0	0.01	0.01	0.01
Diluted (usd per share)	$ 0.15	$ (0.25)	$ 0.07	$ (0.30)
Weighted average common shares outstanding:
Basic (in shares)	25,566,740	24,946,674	25,493,415	24,889,650
Diluted (in shares)	25,566,740	24,946,674	25,493,415	24,889,650
Continuing Operations
Revenues:
Revenues	$ 106,843	$ 98,487	$ 210,214	$ 194,096
Costs and expenses:
Cost of sales	32,568	32,580	65,180	63,327
Restaurant wages and related expenses (including stock-based compensation expense of $0, $6, $4 and $13, respectively)	25,878	24,583	52,268	48,157
Restaurant rent expense	6,110	5,976	12,191	12,003
Other restaurant operating expenses	18,410	16,755	36,034	33,405
Advertising expense	3,116	3,245	6,312	6,109
General and administrative (including stock-based compensation expense of $638, $1,388, $1,233 and $2,011, respectively)	10,729	12,791	23,912	25,133
Depreciation and amortization	4,822	5,232	9,214	10,346
Impairment and other lease charges (recoveries)	685	2,110	2,941	1,408
Closed restaurant rent expense, net of sublease income	238	401	(46)	781
Other expense (income), net	157	83	172	134
Total operating expenses	102,713	103,756	208,178	200,803
Income (loss) from operations	4,130	(5,269)	2,036	(6,707)
Interest expense (income), net	(81)	85	2	170
Restaurant sales | Continuing Operations
Revenues:
Revenues	106,637	98,023	209,701	193,223
Franchise royalty revenues and fees | Continuing Operations
Revenues:
Revenues	$ 206	$ 464	$ 513	$ 873

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - Continuing Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Stock-based compensation	$ 600	$ 1,400	$ 1,200	$ 2,000
Restaurant Wages And Related Expenses
Stock-based compensation	0	6	4	13
General and Administrative Expense
Stock-based compensation	$ 638	$ 1,388	$ 1,233	$ 2,011

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Treasury Stock
Beginning shares at Jan. 02, 2022		24,829,002
Beginning balance at Jan. 02, 2022	$ 154,871	$ 277	$ 182,686	$ 2,043	$ (30,135)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	549		549
Vesting of restricted shares (in shares)		66,372
Vesting of restricted shares	0	$ 0	0
Purchase of treasury stock (in shares)		(14,746)
Purchase of treasury stock	(164)				(164)
Net income (loss)	(1,356)			(1,356)
Ending shares at Apr. 03, 2022		24,880,628
Ending balance at Apr. 03, 2022	153,900	$ 277	183,235	687	(30,299)
Beginning shares at Jan. 02, 2022		24,829,002
Beginning balance at Jan. 02, 2022	154,871	$ 277	182,686	2,043	(30,135)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(7,577)
Ending shares at Jul. 03, 2022		24,971,073
Ending balance at Jul. 03, 2022	149,073	$ 278	184,628	(5,534)	(30,299)
Beginning shares at Apr. 03, 2022		24,880,628
Beginning balance at Apr. 03, 2022	153,900	$ 277	183,235	687	(30,299)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	1,394		1,394
Vesting of restricted shares (in shares)		90,445
Vesting of restricted shares	0	$ 1	(1)
Net income (loss)	(6,221)			(6,221)
Ending shares at Jul. 03, 2022		24,971,073
Ending balance at Jul. 03, 2022	$ 149,073	$ 278	184,628	(5,534)	(30,299)
Beginning shares at Jan. 01, 2023	25,306,302	25,306,302
Beginning balance at Jan. 01, 2023	$ 145,257	$ 282	188,528	(12,516)	(31,037)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	599		599
Vesting of restricted shares (in shares)		288,152
Vesting of restricted shares	0	$ 3	(3)
Purchase of treasury stock (in shares)		(63,774)
Purchase of treasury stock	(550)				(550)
Net income (loss)	(1,909)			(1,909)
Ending shares at Apr. 02, 2023		25,530,680
Ending balance at Apr. 02, 2023	$ 143,397	$ 285	189,124	(14,425)	(31,587)
Beginning shares at Jan. 01, 2023	25,306,302	25,306,302
Beginning balance at Jan. 01, 2023	$ 145,257	$ 282	188,528	(12,516)	(31,037)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	$ 1,950
Ending shares at Jul. 02, 2023	25,634,141	25,634,141
Ending balance at Jul. 02, 2023	$ 147,864	$ 286	189,761	(10,566)	(31,617)
Beginning shares at Apr. 02, 2023		25,530,680
Beginning balance at Apr. 02, 2023	143,397	$ 285	189,124	(14,425)	(31,587)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation	638		638
Vesting of restricted shares (in shares)		107,192
Vesting of restricted shares	0	$ 1	(1)
Purchase of treasury stock (in shares)		(3,731)
Purchase of treasury stock	(30)				(30)
Net income (loss)	$ 3,859			3,859
Ending shares at Jul. 02, 2023	25,634,141	25,634,141
Ending balance at Jul. 02, 2023	$ 147,864	$ 286	$ 189,761	$ (10,566)	$ (31,617)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022
Operating activities:
Net income (loss)	$ 1,950	$ (7,577)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	1,237	1,943
Impairment and other lease charges (recoveries)	2,941	1,408
Depreciation and amortization	9,214	10,346
Amortization of deferred financing costs	39	40
Deferred income taxes	(186)	(404)
Changes in other operating assets and liabilities	(1,842)	4,940
Net cash provided by operating activities	13,353	10,696
Capital expenditures:
Restaurant remodeling	(1,878)	(3,311)
Other restaurant capital expenditures	(6,263)	(3,895)
Corporate and restaurant information systems	(2,530)	(1,239)
Total capital expenditures	(10,671)	(8,445)
Proceeds from insurance recoveries	519	203
Net cash used in investing activities	(10,152)	(8,242)
Financing activities:
Principal payments on finance leases	(41)	(31)
Payments to purchase treasury stock	(580)	(164)
Net cash used in financing activities	(621)	(195)
Net change in cash and restricted cash	2,580	2,259
Cash and restricted cash, beginning of period	35,798	40,634
Cash and restricted cash, end of period	$ 38,378	$ 42,893

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 02, 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"). Unless the context otherwise requires, Fiesta and its subsidiaries are collectively referred to as the "Company." At July 2, 2023, the Company owned and operated 134 Pollo Tropical ® restaurants located in Florida and franchised a total of 28 Pollo Tropical restaurants. The franchised Pollo Tropical restaurants include 16 in Puerto Rico, two in Panama, one in Guyana, one in the Bahamas, five on college campuses in Florida, and locations at one hospital and two sports and entertainment stadiums in Florida. The Company operates its business as one operating and reportable segment. Discontinued Operations. 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. On August 16, 2021, the Company completed the sale of Taco Cabana. See Note 2—Dispositions. Unless otherwise noted, amounts and disclosures throughout these notes to the condensed consolidated financial statements relate to the Company's continuing operations. Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. Fiscal Year . The Company uses a 52–53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended January 1, 2023 contained 52 weeks. The three and six months ended July 2, 2023 and July 3, 2022 each contained thirteen and twenty-six weeks, respectively. The fiscal year ending December 31, 2023 will contain 52 weeks. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and six months ended July 2, 2023 and July 3, 2022 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and six months ended July 2, 2023 and July 3, 2022 are not necessarily indicative of the results to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended January 1, 2023 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2023. The January 1, 2023 balance sheet data is derived from those audited financial statements. Reclassification. Certain prior period balances have been reclassified to conform to the current period presentation in the accompanying notes to the condensed consolidated financial statements. Revenue Recognition. Revenue is recognized upon transfer of promised products or services to customers in an amount that reflects the consideration the Company received in exchange for those products or services. Revenues from the Company's owned and operated restaurants are recognized when payment is tendered at the time of sale. Revenues from delivery fees collected from the end customer through the Pollo Tropical website and smartphone app by the Company are recognized when payment is tendered at the time of delivery, which is concurrent with the time of sale. Franchise royalty revenues are based on a percentage of gross sales and are recorded as income when earned. Initial franchise fees and area development fees associated with new franchise agreements are not distinct from the continuing rights and services offered by the Company during the term of the related franchise agreements and are recognized as income over the term of the related franchise agreements. A portion of the initial franchise fee is allocated to training services and is recognized as revenue when the Company completes the training services. Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date under current market conditions. In determining fair value, the accounting standards establish a three-level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect management's own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value: • Current Assets and Liabilities. The carrying values reported on the condensed consolidated balance sheets of cash and restricted cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. • Revolving Credit Borrowings. The fair value of outstanding revolving credit borrowings under the Company's senior credit facility, which is considered Level 2, is based on current Benchmark Replacement (formerly LIBOR) rates. There were no outstanding revolving credit borrowings under the Company's senior credit facility as of July 2, 2023 and January 1, 2023. See Note 4—Impairment of Long-Lived Assets and Other Lease Charges (Recoveries) for discussion of the fair value measurement of non-financial assets. Long-Lived Assets . The Company assesses the recoverability of property and equipment and definite-lived intangible assets, including right-of-use ("ROU") lease assets, by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. See Note 4—Impairment of Long-Lived Assets and Other Lease Charges (Recoveries). Leases. The Company assesses whether an agreement contains a lease at inception. All leases are reviewed for finance or operating classification once control is obtained. The majority of the Company's leases are operating leases. Operating leases are included within operating lease right-of-use assets, other current liabilities, and operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included within property and equipment, net, current portion of long-term debt, and long-term debt, net of current portion in the condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset also includes any lease payments made in advance and is reduced by lease incentives received. As most leases do not provide an implicit rate, the Company uses its incremental borrowing rate at commencement date in determining the present value of lease payments. Lease terms include options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company assumes options are reasonably certain to be exercised when such options are required to achieve a minimum 20-year lease term for new restaurant properties and when it incurs significant leasehold improvement costs near the end of a lease term. The Company uses judgment and available data to allocate consideration in a contract when it leases land and a building. The Company also uses judgment in determining its incremental borrowing rate, which includes selecting a yield curve based on a synthetic credit rating determined using a valuation model. Lease expense for lease payments is recognized on a straight-line basis over the lease term unless the related ROU asset has been adjusted for an impairment charge. The Company has real estate lease agreements with lease and non-lease components, which are accounted for as a single lease component.

Dispositions

Dispositions	6 Months Ended
	Jul. 02, 2023
Discontinued Operations and Disposal Groups [Abstract]
Dispositions	DispositionsOn June 30, 2021, the Company's Board of Directors approved a stock purchase agreement, which was subsequently entered into by the Company on July 1, 2021, for the sale of all of the outstanding capital stock of Taco Cabana, Inc., including nearly all related assets and liabilities, for a cash purchase price of $85.0 million subject to reduction for (i) closing adjustments of approximately $4.6 million and (ii) certain other working capital adjustments as set forth in the stock purchase agreement. The transaction was completed August 16, 2021. The Company filed an insurance claim for winter storm damages in Texas that occurred in the first quarter of 2021 and retained the right to receive the insurance claim proceeds. In the first quarter of 2023, the Company executed a final settlement on the claim and recognized $0.4 million of insurance proceeds within income from discontinued operations, net of tax, in the six months ended July 2, 2023. 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 from discontinued operations, net of tax, in the condensed consolidated statements of operations for all periods presented. The Company retained certain closed Taco Cabana restaurant leases, including the associated operating lease right-of-use assets and operating lease liabilities. The Company also retained liability for Taco Cabana's accrued worker's compensation and general liability claims for periods prior to the sale. These liabilities are recognized in other current liabilities and other non-current liabilities in the condensed consolidated balance sheets. As there are estimates and assumptions inherent in recording these insurance liabilities, including the ability to estimate the future development of incurred claims based on historical trends or the severity of the claims, differences between actual future events and prior estimates and assumptions could result in adjustments to these liabilities. During the six months ended July 2, 2023, the Company recognized $0.4 million of income related to insurance proceeds for winter storm damages in Texas that occurred in the first quarter of 2021, and $0.1 million of expenses primarily related to workers' compensation claims within income from discontinued operations, net of tax, in the condensed consolidated statement of operations. During the three and six months ended July 3, 2022, the Company recognized $0.4 million and $0.2 million of income, respectively, primarily related to insurance proceeds and slightly offset by expenses related to workers' compensation claims within income from discontinued operations, net of tax, in the condensed consolidated statement of operations.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
	Jul. 02, 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: July 2, 2023 January 1, 2023 Prepaid contract expenses $ 3,118 $ 4,471 Prepaid insurance 2,708 442 Other 790 768 $ 6,616 $ 5,681

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets and Other Lease Charges	6 Months Ended
	Jul. 02, 2023
Property, Plant and Equipment [Abstract]
Impairment of Long-Lived Assets and Other Lease Charges	Impairment of Long-Lived Assets and Other Lease Charges (Recoveries)The Company reviews its long-lived assets, principally property and equipment and lease ROU assets, for impairment at the restaurant level. The Company has elected to exclude operating lease payments and liabilities from future cash flows and carrying values, respectively, in its impairment review. In addition to considering management's plans, known regulatory or governmental actions and damage due to acts of God (hurricanes, tornadoes, etc.), the Company considers a triggering event to have occurred related to a specific restaurant if the restaurant's cash flows, exclusive of operating lease payments, for the last twelve months are less than a minimum threshold or if consistent levels of cash flows for the remaining lease period are less than the carrying value of the restaurant's assets. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows, exclusive of operating lease payments, over the life of the primary asset for each restaurant is compared to that long-lived asset group's carrying value, excluding operating lease liabilities. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis. If actual performance does not achieve the projections, the Company may recognize impairment charges in future periods, and such charges could be material. A summary of impairment of long-lived assets and other lease charges (recoveries) is as follows: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Impairment of long-lived assets $ — $ 2,156 $ 1,402 $ 2,156 Other lease charges (recoveries) 685 (46) 1,539 (748) $ 685 $ 2,110 $ 2,941 $ 1,408 Impairment charges for the six months ended July 2, 2023 related primarily to impairment of assets from four underperforming Pollo Tropical restaurants, three of which were closed in the second quarter of 2023, for which continued performance declines resulted in a decrease in the estimated future cash flows. For the three months ended July 2, 2023, other lease charges (recoveries) consist of lease termination charges related to closed restaurants. Additionally, the six months ended July 2, 2023 consist of lease termination charges related to the reduction of the Company's corporate office space. Impairment charges for the three and six months ended July 3, 2022 related primarily to impairment of assets from four underperforming Pollo Tropical restaurants for which continued performance declines resulted in a decrease in the estimated future cash flows. For the three and six months ended July 3, 2022, other lease charges (recoveries) consisted of gains from lease terminations. The Company determines the fair value of restaurant equipment, for those restaurants reviewed for impairment, based on current economic conditions, the Company's history of using these assets in the operation of its business and the Company's expectation of how a market participant would value the assets. The Company also utilizes discounted future cash flows to determine the fair value of assets for certain leased restaurants with positive discounted projected future cash flows. The Company utilizes current market lease rent and discount rates to determine the fair value of right-of-use lease assets. These fair value asset measurements rely on significant unobservable inputs and are considered Level 3 in the fair value hierarchy. The Level 3 assets measured at fair value associated with impairment charges recorded during the six months ended July 2, 2023 totaled $1.1 million.

Other Liabilities

Other Liabilities	6 Months Ended
	Jul. 02, 2023
Other Liabilities Disclosure [Abstract]
Other Liabilities	Other Liabilities Other current liabilities consist of the following: July 2, 2023 January 1, 2023 Operating lease liabilities $ 10,366 $ 10,496 Accrued workers' compensation and general liability claims 2,802 2,623 Unrecognized tax benefits 2,465 2,053 Sales and property taxes 1,736 981 Other 1,808 1,527 $ 19,177 $ 17,680 Other non-current liabilities consist of the following: July 2, 2023 January 1, 2023 Accrued workers' compensation and general liability claims $ 6,000 $ 6,000 Deferred compensation 221 273 Other 851 935 $ 7,072 $ 7,208

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jul. 02, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Purchase of Treasury Stock In 2018, the Company's board of directors approved a share repurchase program for up to 1,500,000 shares of the Company's common stock. In 2019, the Company's board of directors approved increases to the share repurchase program of an additional 1,500,000 shares of the Company's common stock for an aggregate approval of 3,000,000 shares of the Company's common stock. Under the share repurchase program, shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The share repurchase program has no time limit and may be modified, suspended, superseded or terminated at any time by the Company's board of directors. The Company repurchased 14,746 shares of common stock valued at approximately $0.2 million during the six months ended July 3, 2022. As of July 2, 2023, 137,462 shares of common stock remain available for purchase under the share repurchase program. Additionally, as a result of net share settlement to satisfy the minimum statutory tax withholding requirements in connection with the vesting of restricted stock grants for certain employees, the Company repurchased 67,505 shares of common stock valued at approximately $0.6 million during the six months ended July 2, 2023. The repurchased shares are held as treasury stock at cost. Stock-Based Compensation During the six months ended July 2, 2023, the Company granted certain employees and non-employee directors a total of 353,438 non-vested restricted shares under the Fiesta Restaurant Group, Inc. 2021 Stock Incentive Plan (the "Fiesta Plan"). The shares granted to employees vest and become non-forfeitable over a four one five During the six months ended July 2, 2023, the Company granted certain employees a total of 134,258 restricted stock units under the 2021 Plan subject to performance conditions. The restricted stock units vest and become non-forfeitable at the end of a three Stock-based compensation expense from continuing operations for the three and six months ended July 2, 2023 was $0.6 million and $1.2 million, respectively, and for the three and six months ended July 3, 2022 was $1.4 million and $2.0 million, respectively. Stock-based compensation expense from discontinued operations for the six months ended July 3, 2022 was $(0.1) million. At July 2, 2023, the total unrecognized stock-based compensation expense related to non-vested restricted shares and restricted stock units was approximately $5.2 million. At July 2, 2023, the remaining weighted average vesting period for non-vested restricted shares was 2.7 years and restricted stock units was 2.1 years. A summary of all non-vested restricted shares and restricted stock units activity for the six months ended July 2, 2023 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at January 1, 2023 617,747 $ 9.61 103,814 $ 12.09 Granted 353,438 7.93 134,258 8.05 Vested and released (395,344) 9.23 — — Forfeited (20,292) 10.10 — — Outstanding at July 2, 2023 555,549 $ 8.80 238,072 $ 9.81 The fair value of non-vested restricted shares and restricted stock units granted during the six months ended July 2, 2023 is based on the closing stock price on the date of grant. During the six months ended July 2, 2023, 395,344 non-vested restricted shares 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 67,505 shares related to previously non-vested restricted shares to settle the employees' minimum statutory obligation for the applicable income and other employment taxes upon vesting of such restricted shares. Subsequently, the Company remitted the required funds to the appropriate taxing authorities.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	6 Months Ended
	Jul. 02, 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. All outstanding restricted stock units in the three and six months ended July 2, 2023 and July 3, 2022 were performance-based awards which had not yet met their performance conditions as of July 2, 2023 and July 3, 2022, respectively. The computation of basic and diluted EPS is as follows: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Basic and diluted EPS: Income (loss) from continuing operations $ 3,829 $ (6,488) $ 1,685 $ (7,789) Income from discontinued operations, net of tax 30 267 265 212 Net income (loss) $ 3,859 $ (6,221) $ 1,950 $ (7,577) Less: income allocated to participating securities 81 — 39 — Net income (loss) available to common shareholders $ 3,778 $ (6,221) $ 1,911 $ (7,577) Weighted average common shares—basic 25,566,740 24,946,674 25,493,415 24,889,650 Restricted stock units — — — — Weighted average common shares—diluted 25,566,740 24,946,674 25,493,415 24,889,650 Earnings (loss) from continuing operations per common share—basic $ 0.15 $ (0.26) $ 0.06 $ (0.31) Earnings (loss) from discontinued operations per common share—basic — 0.01 0.01 0.01 Earnings (loss) per common share—basic $ 0.15 $ (0.25) $ 0.07 $ (0.30) Earnings (loss) from continuing operations per common share—diluted $ 0.15 $ (0.26) $ 0.06 $ (0.31) Earnings (loss) from discontinued operations per common share—diluted — 0.01 0.01 0.01 Earnings (loss) per common share—diluted $ 0.15 $ (0.25) $ 0.07 $ (0.30)

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 02, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Lease Assignments . In previous years, Pollo Tropical assigned two leases to third parties on properties where it no longer operates with lease terms expiring in 2033 and 2036. Although the assignees are responsible for making the payments required by the lease, the Company is a guarantor under the leases. The maximum potential liability for future rental payments that the Company could be required to make under these leases at July 2, 2023 was $4.2 million. The Company could also be obligated to pay property taxes and other lease-related costs. The obligations under these leases will generally continue to decrease over time as the operating leases expire. The Company does not believe it is probable that it will be ultimately responsible for the obligations under these leases. Indemnity of Lease Guarantees. As discussed in Note 2—Dispositions, Taco Cabana, Inc., a former wholly-owned subsidiary of the Company, was sold in the third quarter of 2021 to YTC Enterprises LLC ("YTC Enterprises") through a stock purchase agreement. The Company's previous owners, Carrols Restaurant Group, Inc. ("Carrols") remains a guarantor under 12 Taco Cabana restaurant property leases with lease terms expiring on various dates through 2030, all of which are still operating, as of July 2, 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 July 2, 2023 was $5.9 million. The obligations under these leases will generally continue to decrease over time as these operating leases expire, except for any execution of renewal options that exist under the original leases. No payments related to these guarantees have been made by the Company to date and none are expected to be required to be made in the future. YTC Enterprises has indemnified the Company for all such obligations and the Company does not believe it is probable it will be required to perform under any of the guarantees or direct obligations.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jul. 02, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company engaged Jefferies LLC ("Jefferies"), an affiliate of one of the current members of Fiesta's board of directors, and a subsidiary of Jefferies Financial Group, Inc, a holder of more than 20 percent of the total outstanding shares of Fiesta, in connection with the Merger (See Note 11—Subsequent Events). The engagement of Jefferies and the corresponding engagement letter was approved by the Audit Committee in accordance with the Company's Related Party Transaction Policy as disclosed in the Company's definitive proxy statement for its 2023 Annual Meeting of Stockholders. The Company will pay Jefferies a transaction advisory fee of $5.0 million upon the closing of the Merger. As of July 2, 2023 and January 1, 2023, there were no amounts due to the related party recognized on the condensed consolidated balance sheets.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jul. 02, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information The following table details supplemental cash flow disclosures of non-cash investing and financing activities from continuing operations: Six Months Ended July 2, 2023 July 3, 2022 Supplemental cash flow disclosures: Interest paid on long-term debt $ 93 $ 97 Income tax payments, net 14 323 Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 2,643 $ 2,437 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 4,962 5,281 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 1,401 2,370 Operating lease liabilities 1,848 3,321 Cash and restricted cash reconciliation: Beginning of period Cash $ 32,167 $ 36,797 Restricted cash 3,631 3,837 Cash and restricted cash, beginning of period $ 35,798 $ 40,634 End of period Cash $ 34,747 $ 39,262 Restricted cash 3,631 3,631 Cash and restricted cash, end of period $ 38,378 $ 42,893

Subsequent Events

Subsequent Events	6 Months Ended
	Jul. 02, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On August 6, 2023, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Fiesta Holdings, LLC, a Delaware limited liability company ("Parent"), and Fiesta Merger Sub, LLC, a Delaware limited liability company and wholly-owned subsidiary of Parent ("Merger Sub"). The Merger Agreement and the consummation of the transactions contemplated by the Merger Agreement have been unanimously approved by a Special Committee of the Company's Board of Directors (the "Special Committee") and the Company's Board of Directors (the "Board"). The Merger Agreement provides for the merger of Merger Sub with and into the Company (the "Merger"), with the Company surviving the Merger as a wholly-owned subsidiary of Parent. Pursuant to the Merger Agreement, at the effective time of the Merger (the "Effective Time"), each share of common stock of the Company, par value 0.01 per share (collectively, the "Shares"), issued and outstanding immediately prior to the Effective Time (other than Shares held by stockholders who have not voted in favor of the Merger and who have properly and validly perfected their statutory rights of appraisal in respect of such Shares in accordance with Section 262 of the Delaware General Corporation Law) will be canceled and converted into the right to receive $8.50 in cash (the "Per Share Merger Consideration"), subject to applicable tax withholding. Parent has agreed to guarantee the payment and performance obligations of Merger Sub under the Merger Agreement. In accordance with the Merger Agreement, all unvested stock-based compensation awards that are outstanding as of immediately prior to the Effective Time shall accelerate and become fully vested and exercisable effective immediately prior to, and contingent upon, the Effective Time. The Merger Agreement includes a 30-day "go-shop" period that will allow the Company to affirmatively solicit alternative proposals from interested parties. The consummation of the Merger is subject to the satisfaction or waiver of specified closing conditions, including (i) the affirmative vote in favor of the adoption of the Merger Agreement by the holders of a majority of the voting power of the issued and outstanding Shares entitled to vote thereon, (ii) any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 having expired or been terminated, (iii) the absence of a Material Adverse Effect (as defined in the Merger Agreement) of the Company after the date of the Merger Agreement and (iv) other customary closing conditions. The consummation of the Merger is not subject to a financing condition. The Merger Agreement contains certain termination rights, including the right of either Fiesta or Parent to terminate the Merger Agreement if the transaction is not consummated by December 31, 2023. The Merger Agreement provides that the Merger Agreement may be terminated by the Company or Parent under certain circumstances. Parent would be required to pay a termination fee of $14.0 million to the Company, and under other specified circumstances, the Company would be required to pay to Parent a termination fee of $8.5 million. The Company expects the Merger to close during the fourth quarter of 2023. Upon closing the transaction, Fiesta will operate as a privately held company. The Company also expects to incur significant costs, expenses, and fees for professional services and other transaction costs in connection with the Merger. Additional information about the Merger Agreement is set forth in the Company's Current Report on Form 8-K filed with the SEC on August 7, 2023.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jul. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Consolidation	Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation.
Fiscal Year	Fiscal Year . The Company uses a 52–53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended January 1, 2023 contained 52 weeks. The three and six months ended July 2, 2023 and July 3, 2022 each contained thirteen and twenty-six weeks, respectively. The fiscal year ending December 31, 2023 will contain 52 weeks.
Basis of Presentation	Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and six months ended July 2, 2023 and July 3, 2022 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and six months ended July 2, 2023 and July 3, 2022 are not necessarily indicative of the results to be expected for the full year.
Reclassification	Reclassification. Certain prior period balances have been reclassified to conform to the current period presentation in the accompanying notes to the condensed consolidated financial statements.
Revenue Recognition	Revenue Recognition. Revenue is recognized upon transfer of promised products or services to customers in an amount that reflects the consideration the Company received in exchange for those products or services. Revenues from the Company's owned and operated restaurants are recognized when payment is tendered at the time of sale. Revenues from delivery fees collected from the end customer through the Pollo Tropical website and smartphone app by the Company are recognized when payment is tendered at the time of delivery, which is concurrent with the time of sale. Franchise royalty revenues are based on a percentage of gross sales and are recorded as income when earned. Initial franchise fees and area development fees associated with new franchise agreements are not distinct from the continuing rights and services offered by the Company during the term of the related franchise agreements and are recognized as income over the term of the related franchise agreements. A portion of the initial franchise fee is allocated to training services and is recognized as revenue when the Company completes the training services.
Fair Value of Financial Instruments	Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date under current market conditions. In determining fair value, the accounting standards establish a three-level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect management's own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value: • Current Assets and Liabilities. The carrying values reported on the condensed consolidated balance sheets of cash and restricted cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments. • Revolving Credit Borrowings.
Long-Lived Assets	Long-Lived Assets. The Company assesses the recoverability of property and equipment and definite-lived intangible assets, including right-of-use ("ROU") lease assets, by determining whether the carrying value of these assets can be recovered over their respective remaining lives through undiscounted future operating cash flows. Impairment is reviewed whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable.
Leases	Leases. The Company assesses whether an agreement contains a lease at inception. All leases are reviewed for finance or operating classification once control is obtained. The majority of the Company's leases are operating leases. Operating leases are included within operating lease right-of-use assets, other current liabilities, and operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included within property and equipment, net, current portion of long-term debt, and long-term debt, net of current portion in the condensed consolidated balance sheets.
Use of Estimates	Use of Estimates. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: insurance liabilities, evaluation for impairment of goodwill and long-lived assets, lease accounting matters, and deferred income tax assets. Actual results could differ from those estimates.
Impairment of Long-Lived Assets	The Company reviews its long-lived assets, principally property and equipment and lease ROU assets, for impairment at the restaurant level. The Company has elected to exclude operating lease payments and liabilities from future cash flows and carrying values, respectively, in its impairment review. In addition to considering management's plans, known regulatory or governmental actions and damage due to acts of God (hurricanes, tornadoes, etc.), the Company considers a triggering event to have occurred related to a specific restaurant if the restaurant's cash flows, exclusive of operating lease payments, for the last twelve months are less than a minimum threshold or if consistent levels of cash flows for the remaining lease period are less than the carrying value of the restaurant's assets. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows, exclusive of operating lease payments, over the life of the primary asset for each restaurant is compared to that long-lived asset group's carrying value, excluding operating lease liabilities. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis. If actual performance does not achieve the projections, the Company may recognize impairment charges in future periods, and such charges could be material.
Purchase of Treasury Stock	Purchase of Treasury 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
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.

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jul. 02, 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: July 2, 2023 January 1, 2023 Prepaid contract expenses $ 3,118 $ 4,471 Prepaid insurance 2,708 442 Other 790 768 $ 6,616 $ 5,681

Impairment of Long-Lived Asse_2

Impairment of Long-Lived Assets and Other Lease Charges (Tables)	6 Months Ended
	Jul. 02, 2023
Property, Plant and Equipment [Abstract]
Summary of Impairment on Long-Lived Assets	A summary of impairment of long-lived assets and other lease charges (recoveries) is as follows: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Impairment of long-lived assets $ — $ 2,156 $ 1,402 $ 2,156 Other lease charges (recoveries) 685 (46) 1,539 (748) $ 685 $ 2,110 $ 2,941 $ 1,408
Other Lease Charges (Recoveries)	A summary of impairment of long-lived assets and other lease charges (recoveries) is as follows: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Impairment of long-lived assets $ — $ 2,156 $ 1,402 $ 2,156 Other lease charges (recoveries) 685 (46) 1,539 (748) $ 685 $ 2,110 $ 2,941 $ 1,408

Other Liabilities (Tables)

Other Liabilities (Tables)	6 Months Ended
	Jul. 02, 2023
Other Liabilities Disclosure [Abstract]
Other Liabilities, Current	Other current liabilities consist of the following: July 2, 2023 January 1, 2023 Operating lease liabilities $ 10,366 $ 10,496 Accrued workers' compensation and general liability claims 2,802 2,623 Unrecognized tax benefits 2,465 2,053 Sales and property taxes 1,736 981 Other 1,808 1,527 $ 19,177 $ 17,680
Other Liabilities, Non-current	Other non-current liabilities consist of the following: July 2, 2023 January 1, 2023 Accrued workers' compensation and general liability claims $ 6,000 $ 6,000 Deferred compensation 221 273 Other 851 935 $ 7,072 $ 7,208

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jul. 02, 2023
Equity [Abstract]
Schedule of Non-vested Restricted Shares and Restricted Stock Units Activity	A summary of all non-vested restricted shares and restricted stock units activity for the six months ended July 2, 2023 is as follows: Non-Vested Shares Restricted Stock Units Shares Weighted Units Weighted Outstanding at January 1, 2023 617,747 $ 9.61 103,814 $ 12.09 Granted 353,438 7.93 134,258 8.05 Vested and released (395,344) 9.23 — — Forfeited (20,292) 10.10 — — Outstanding at July 2, 2023 555,549 $ 8.80 238,072 $ 9.81

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jul. 02, 2023
Earnings Per Share [Abstract]
Computation of Basic and Diluted EPS	The computation of basic and diluted EPS is as follows: Three Months Ended Six Months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Basic and diluted EPS: Income (loss) from continuing operations $ 3,829 $ (6,488) $ 1,685 $ (7,789) Income from discontinued operations, net of tax 30 267 265 212 Net income (loss) $ 3,859 $ (6,221) $ 1,950 $ (7,577) Less: income allocated to participating securities 81 — 39 — Net income (loss) available to common shareholders $ 3,778 $ (6,221) $ 1,911 $ (7,577) Weighted average common shares—basic 25,566,740 24,946,674 25,493,415 24,889,650 Restricted stock units — — — — Weighted average common shares—diluted 25,566,740 24,946,674 25,493,415 24,889,650 Earnings (loss) from continuing operations per common share—basic $ 0.15 $ (0.26) $ 0.06 $ (0.31) Earnings (loss) from discontinued operations per common share—basic — 0.01 0.01 0.01 Earnings (loss) per common share—basic $ 0.15 $ (0.25) $ 0.07 $ (0.30) Earnings (loss) from continuing operations per common share—diluted $ 0.15 $ (0.26) $ 0.06 $ (0.31) Earnings (loss) from discontinued operations per common share—diluted — 0.01 0.01 0.01 Earnings (loss) per common share—diluted $ 0.15 $ (0.25) $ 0.07 $ (0.30)

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jul. 02, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Disclosures of Non-Cash Investing and Financing Activities	The following table details supplemental cash flow disclosures of non-cash investing and financing activities from continuing operations: Six Months Ended July 2, 2023 July 3, 2022 Supplemental cash flow disclosures: Interest paid on long-term debt $ 93 $ 97 Income tax payments, net 14 323 Supplemental cash flow disclosures of non-cash investing and financing activities: Accruals for capital expenditures $ 2,643 $ 2,437 Right-of-use assets obtained in exchange for lease liabilities: Operating lease ROU assets 4,962 5,281 Right-of-use assets and lease liabilities reduced for terminated leases: Operating lease ROU assets 1,401 2,370 Operating lease liabilities 1,848 3,321 Cash and restricted cash reconciliation: Beginning of period Cash $ 32,167 $ 36,797 Restricted cash 3,631 3,837 Cash and restricted cash, beginning of period $ 35,798 $ 40,634 End of period Cash $ 34,747 $ 39,262 Restricted cash 3,631 3,631 Cash and restricted cash, end of period $ 38,378 $ 42,893

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details)	6 Months Ended
	Jul. 02, 2023 restaurant segment
Entity Information [Line Items]
Number of operating segments | segment	1
Number of Reportable Segments | segment	1
Minimum
Entity Information [Line Items]
Lease term	20 years
Pollo Tropical
Entity Information [Line Items]
Number of restaurants	4
Entity Operated Units | Pollo Tropical
Entity Information [Line Items]
Number of restaurants	134
Franchised Units | Pollo Tropical
Entity Information [Line Items]
Number of restaurants	28
Franchised Units | Pollo Tropical | Puerto Rico
Entity Information [Line Items]
Number of restaurants	16
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 | Bahamas
Entity Information [Line Items]
Number of restaurants	1
Franchised Units | Pollo Tropical | Florida | College Campus
Entity Information [Line Items]
Number of restaurants	5
Franchised Units | Pollo Tropical | Florida | Hospital
Entity Information [Line Items]
Number of restaurants	1
Franchised Units | Pollo Tropical | Florida | Stadium
Entity Information [Line Items]
Number of restaurants	2

Dispositions - Narrative (Detai

Dispositions - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Aug. 16, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Description and timing of disposal		On June 30, 2021, the Company's Board of Directors approved a stock purchase agreement, which was subsequently entered into by the Company on July 1, 2021, for the sale of all of the outstanding capital stock of Taco Cabana, Inc., including nearly all related assets and liabilities, for a cash purchase price of $85.0 million subject to reduction for (i) closing adjustments of approximately $4.6 million and (ii) certain other working capital adjustments as set forth in the stock purchase agreement. The transaction was completed August 16, 2021.
Cash purchase price of disposition				$ 85
Closing adjustments				$ 4.6
Insurance proceeds recognized		$ 0.4
Other income	$ 0.4	0.4	$ 0.2
Restaurant wages and related expenses		$ 0.1
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Stock-based compensation expense			$ (0.1)

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid contract expenses	$ 3,118	$ 4,471
Prepaid insurance	2,708	442
Other	790	768
Prepaid expenses and other current assets	$ 6,616	$ 5,681

Impairment of Long-Lived Asse_3

Impairment of Long-Lived Assets and Other Lease Charges - Summary (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Impairment and Other Lease Charges [Line Items]
Impairment and other lease charges (recoveries)			$ 2,941	$ 1,408
Continuing Operations
Impairment and Other Lease Charges [Line Items]
Impairment of long-lived assets	$ 0	$ 2,156	1,402	2,156
Other lease charges (recoveries)	685	(46)	1,539	(748)
Impairment and other lease charges (recoveries)	$ 685	$ 2,110	$ 2,941	$ 1,408

Impairment of Long-Lived Asse_4

Impairment of Long-Lived Assets and Other Lease Charges - Narrative (Details) $ in Millions	Jul. 02, 2023 USD ($) restaurant
Impairment and Other Lease Charges [Line Items]
Assets measured at fair value associated with impairment charges | $	$ 1.1
Pollo Tropical
Impairment and Other Lease Charges [Line Items]
Number of restaurants	4
Number of closed restaurants	3

Other Liabilities - Current (De

Other Liabilities - Current (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Other Liabilities Disclosure [Abstract]
Operating lease liabilities	$ 10,366	$ 10,496
Accrued workers' compensation and general liability claims	2,802	2,623
Unrecognized tax benefits	2,465	2,053
Sales and property taxes	1,736	981
Other	1,808	1,527
Other current liabilities	$ 19,177	$ 17,680

Other Liabilities - Non-current

Other Liabilities - Non-current (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Other Liabilities Disclosure [Abstract]
Accrued workers' compensation and general liability claims	$ 6,000	$ 6,000
Deferred compensation	221	273
Other	851	935
Other non-current liabilities	$ 7,072	$ 7,208

Stockholders' Equity - Purchase

Stockholders' Equity - Purchase of Treasury Stock (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 02, 2023	Apr. 02, 2023	Apr. 03, 2022	Jul. 03, 2022	Dec. 29, 2019	Feb. 26, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be repurchased	3,000,000
Treasury stock purchases	$ 30	$ 550	$ 164
Remaining number of shares authorized to be repurchased	137,462
Share Repurchase Program 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be repurchased						1,500,000
Share Repurchase Program 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be repurchased					1,500,000
Share Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury stock purchases (in shares)				14,746
Treasury stock purchases				$ 200
Net Share Settlement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Treasury stock purchases (in shares)	67,505
Treasury stock purchases	$ 600

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 5.2		$ 5.2
Continuing Operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 0.6	$ 1.4	$ 1.2	$ 2
Discontinued Operations
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation				$ (0.1)
Nonvested Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period			353,438
Weighted average grant date fair value, grants in period (usd per share)			$ 7.93	$ 8.83
Share-based compensation cost not yet recognized, period for recognition			2 years 8 months 12 days
Nonvested Restricted Shares | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Nonvested Restricted Shares | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Nonvested Restricted Shares | Out Of Cycle Grant | Director
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]
Shares granted in period			134,258
Vesting period			3 years
Weighted average grant date fair value, grants in period (usd per share)			$ 8.05	$ 9.02
Share-based compensation cost not yet recognized, period for recognition			2 years 1 month 6 days

Stockholders' Equity - Non-vest

Stockholders' Equity - Non-vested Restricted Shares and Restricted Stock Units Activity (Details) - $ / shares	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022
Non-Vested Shares
Non-vested Restricted Shares and Restricted Stock Units
Outstanding at beginning of period (in shares)	617,747
Granted (in shares)	353,438
Vested and released (in shares)	(395,344)
Forfeited (in shares)	(20,292)
Outstanding at end of period (in shares)	555,549
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (usd per share)	$ 9.61
Granted (usd per share)	7.93	$ 8.83
Vested and released (usd per share)	9.23
Forfeited (usd per share)	10.10
Outstanding at end of period (usd per share)	$ 8.80
Restricted Stock Units
Non-vested Restricted Shares and Restricted Stock Units
Outstanding at beginning of period (in shares)	103,814
Granted (in shares)	134,258
Vested and released (in shares)	0
Forfeited (in shares)	0
Outstanding at end of period (in shares)	238,072
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (usd per share)	$ 12.09
Granted (usd per share)	8.05	$ 9.02
Vested and released (usd per share)	0
Forfeited (usd per share)	0
Outstanding at end of period (usd per share)	$ 9.81

Earnings (Loss) Per Share - Nar

Earnings (Loss) Per Share - Narrative (Details)	Jul. 02, 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 EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 02, 2023	Apr. 02, 2023	Jul. 03, 2022	Apr. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Basic and diluted EPS:
Income (loss) from continuing operations	$ 3,829		$ (6,488)		$ 1,685	$ (7,789)
Income from discontinued operations, net of tax	30		267		265	212
Net income (loss)	3,859	$ (1,909)	(6,221)	$ (1,356)	1,950	(7,577)
Less: income allocated to participating securities	81		0		39	0
Net income (loss) available to common shareholders	$ 3,778		$ (6,221)		$ 1,911	$ (7,577)
Weighted average common shares—basic	25,566,740		24,946,674		25,493,415	24,889,650
Restricted stock units (in shares)	0		0		0	0
Weighted average common shares—diluted	25,566,740		24,946,674		25,493,415	24,889,650
Earnings (loss) from continuing operations per common share—basic (usd per share)	$ 0.15		$ (0.26)		$ 0.06	$ (0.31)
Earnings (loss) from discontinued operations per common share—basic (usd per share)	0		0.01		0.01	0.01
Earnings (loss) per common share—basic (usd per share)	0.15		(0.25)		0.07	(0.30)
Earnings (loss) from continuing operations per common share—diluted (usd per share)	0.15		(0.26)		0.06	(0.31)
Earnings (loss) from discontinued operations per common share—diluted (usd per share)	0		0.01		0.01	0.01
Earnings (loss) per common share—diluted (usd per share)	$ 0.15		$ (0.25)		$ 0.07	$ (0.30)

Commitments and Contingencies -

Commitments and Contingencies - Lease Assignments (Details) $ in Millions	Jul. 02, 2023 USD ($) restaurant
Pollo Tropical
Loss Contingencies [Line Items]
Number of leases assigned	2
Number of restaurants	4
Pollo Tropical | Payment Guarantee
Loss Contingencies [Line Items]
Maximum potential liability for future rental payments | $	$ 4.2
Corporate Segment | Payment Guarantee
Loss Contingencies [Line Items]
Number of restaurants	12
Maximum potential liability for future rental payments | $	$ 5.9

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Jul. 02, 2023	Jan. 01, 2023
Related Party
Related Party Transaction [Line Items]
Amount due to related party		$ 0	$ 0
Subsequent Event | Related Party
Related Party Transaction [Line Items]
Transaction advisory fee	$ 5
Minimum | Jefferies Financial Group, Inc
Related Party Transaction [Line Items]
Ownership percentage		20%

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jan. 01, 2023	Jan. 02, 2022
Cash and restricted cash reconciliation:
Cash	$ 34,747	$ 39,262	$ 32,167	$ 36,797
Restricted cash	3,631	3,631	3,631	3,837
Cash and restricted cash	38,378	42,893	$ 35,798	$ 40,634
Continuing Operations
Supplemental cash flow disclosures:
Interest paid on long-term debt	93	97
Income tax payments, net	14	323
Supplemental cash flow disclosures of non-cash investing and financing activities:
Accruals for capital expenditures	2,643	2,437
Right-of-use assets obtained in exchange for lease liabilities:
Operating lease ROU assets	4,962	5,281
Right-of-use assets and lease liabilities reduced for terminated leases:
Operating lease ROU assets	1,401	2,370
Operating lease liabilities	$ 1,848	$ 3,321

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Jul. 02, 2023	Jan. 01, 2023
Subsequent Event [Line Items]
Common stock, par value (usd per share)		$ 0.01	$ 0.01
Subsequent Event
Subsequent Event [Line Items]
Share price	$ 8.50
Subsequent Event | Fiesta Holdings, LLC
Subsequent Event [Line Items]
Termination fee	$ (14,000)
Subsequent Event | Fiesta Restaurant Group, Inc.
Subsequent Event [Line Items]
Termination fee	$ 8,500