Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 27, 2018 | May 04, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 27, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TACO | |
Entity Registrant Name | Del Taco Restaurants, Inc. | |
Entity Central Index Key | 1,585,583 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,452,666 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 27, 2018 | Jan. 02, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 10,038 | $ 6,559 |
Accounts and other receivables, net | 3,524 | 3,828 |
Inventories | 2,739 | 2,712 |
Prepaid expenses and other current assets | 3,216 | 6,784 |
Total current assets | 19,517 | 19,883 |
Property and equipment, net | 157,643 | 156,124 |
Goodwill | 320,638 | 320,638 |
Trademarks | 220,300 | 220,300 |
Intangible assets, net | 20,711 | 21,498 |
Other assets, net | 4,325 | 3,881 |
Total assets | 743,134 | 742,324 |
Current liabilities: | ||
Accounts payable | 16,040 | 18,759 |
Other accrued liabilities | 32,947 | 35,257 |
Current portion of capital lease obligations and deemed landlord financing liabilities | 1,309 | 1,415 |
Total current liabilities | 50,296 | 55,431 |
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net | 171,472 | 170,639 |
Deferred income taxes | 68,644 | 68,574 |
Other non-current liabilities | 32,562 | 31,431 |
Total liabilities | 322,974 | 326,075 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value; 400,000,000 shares authorized; 38,448,916 shares issued and outstanding at March 27, 2018; 38,434,274 shares issued and outstanding at January 2, 2018 | 4 | 4 |
Additional paid-in capital | 350,543 | 349,334 |
Accumulated other comprehensive income | 194 | 14 |
Retained earnings | 69,419 | 66,897 |
Total shareholders’ equity | 420,160 | 416,249 |
Total liabilities and shareholders’ equity | $ 743,134 | $ 742,324 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - Successor [Member] - $ / shares | Mar. 27, 2018 | Jan. 02, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 38,448,916 | 38,434,274 |
Common stock, shares outstanding (in shares) | 38,448,916 | 38,434,274 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2018 | Mar. 28, 2017 | |
Revenue: | ||
Company restaurant sales | $ 105,109 | $ 101,222 |
Franchise revenue | 3,792 | 3,613 |
Franchise advertising contributions | 2,936 | 0 |
Franchise sublease income | 717 | 510 |
Total revenue | 112,554 | 105,345 |
Restaurant operating expenses: | ||
Food and paper costs | 28,973 | 27,918 |
Labor and related expenses | 34,818 | 33,221 |
Occupancy and other operating expenses | 21,986 | 20,718 |
General and administrative | 10,429 | 9,305 |
Franchise advertising expenses | 2,936 | 0 |
Depreciation and amortization | 5,914 | 5,103 |
Occupancy and other - franchise subleases | 638 | 481 |
Pre-opening costs | 442 | 26 |
Restaurant closure charges, net | (13) | 9 |
Loss (gain) on disposal of assets, net | 93 | (49) |
Total operating expenses | 106,216 | 96,732 |
Income from operations | 6,338 | 8,613 |
Other expense | ||
Interest expense | 1,910 | 1,543 |
Total other expense | 1,910 | 1,543 |
Income from operations before provision for income taxes | 4,428 | 7,070 |
Provision for income taxes | 1,199 | 2,832 |
Net income | 3,229 | 4,238 |
Other comprehensive income (loss): | ||
Change in fair value of interest rate cap, net of tax | 174 | (88) |
Reclassification of interest rate cap amortization included in net income | 6 | 0 |
Total other comprehensive income (loss) | 180 | (88) |
Comprehensive income | $ 3,409 | $ 4,150 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.08 | $ 0.11 |
Diluted (in dollars per share) | $ 0.08 | $ 0.10 |
Weighted-average shares outstanding | ||
Basic (in shares) | 38,441,707 | 39,003,935 |
Diluted (in shares) | 39,224,070 | 40,375,061 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2018 | Mar. 28, 2017 | |
Operating activities | ||
Net income | $ 3,229 | $ 4,238 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,914 | 5,103 |
Amortization of favorable and unfavorable lease assets and liabilities, net | (118) | (147) |
Amortization of deferred financing costs and debt discount | 95 | 89 |
Stock-based compensation | 1,274 | 1,069 |
Deferred income taxes | 266 | 193 |
Loss (gain) on disposal of assets, net | 93 | (49) |
Restaurant closure charges | 33 | 43 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables, net | 1,017 | 994 |
Inventories | (27) | 88 |
Prepaid expenses and other current assets | 3,568 | 1,914 |
Other assets | (16) | (18) |
Accounts payable | (2,609) | (402) |
Other accrued liabilities | (973) | (280) |
Other non-current liabilities | 654 | (207) |
Net cash provided by operating activities | 12,400 | 12,628 |
Investing activities | ||
Purchases of property and equipment | (9,594) | (5,650) |
Proceeds from disposal of property and equipment, net | 573 | 0 |
Purchases of other assets | (474) | (201) |
Proceeds from sale of company-operated restaurants | 0 | 2,192 |
Net cash used in investing activities | (9,495) | (3,659) |
Financing activities | ||
Repurchase of common stock and warrants | (33) | (8,010) |
Payment of tax withholding related to restricted stock vesting | (79) | (59) |
Payments on capital leases and deemed landlord financing | (362) | (379) |
Proceeds from revolving credit facility | 5,000 | 3,000 |
Payments on revolving credit facility | (4,000) | (3,000) |
Proceeds from exercise of stock options | 48 | 0 |
Net cash provided by (used in) financing activities | 574 | (8,448) |
Increase in cash and cash equivalents | 3,479 | 521 |
Cash and cash equivalents at beginning of period | 6,559 | 8,795 |
Cash and cash equivalents at end of period | 10,038 | 9,316 |
Supplemental cash flow information: | ||
Cash paid during the period for interest | 1,377 | 1,066 |
Cash paid during the period for income taxes | 0 | 0 |
Supplemental schedule of non-cash activities: | ||
Accrued property and equipment purchases | 1,492 | 2,883 |
Write-offs of accounts receivables | 6 | 0 |
Reclassification of interest rate cap amortization included in net income | 6 | 0 |
Change in other asset for fair value of interest rate cap recorded to other comprehensive loss, net of tax | $ 174 | $ (88) |
Description of Business
Description of Business | 3 Months Ended |
Mar. 27, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Del Taco Restaurants, Inc. (f/k/a Levy Acquisition Corp. (“LAC”)) is a Delaware corporation headquartered in Lake Forest, California. The consolidated financial statements include the accounts of Del Taco Restaurants, Inc. and its wholly owned subsidiaries (collectively, the “Company” or “Del Taco”). The Company develops, franchises, owns, and operates Del Taco quick-service Mexican-American restaurants. At March 27, 2018 , there were 315 company-operated and 251 franchise-operated Del Taco restaurants located in 14 states, including one franchise-operated unit in Guam. At March 28, 2017 , there were 305 company-operated and 249 franchise-operated Del Taco restaurants located in 15 states, including one franchise-operated unit in Guam. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 27, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). For additional information, these unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended January 2, 2018 ("2017 Form 10-K"). The Company’s fiscal year ends on the Tuesday closest to December 31. Fiscal year 2018 is a fifty-two week period ending January 1, 2019 . Fiscal year 2017 is the fifty-two week period ended January 2, 2018 . In a fifty-two week fiscal year, the first, second and third quarters each include twelve weeks of operations and the fourth quarter includes sixteen weeks of operations. For fiscal year 2018 , the Company’s accompanying financial statements reflect the twelve weeks ended March 27, 2018 . For fiscal year 2017 , the Company’s accompanying financial statements reflect the twelve weeks ended March 28, 2017 . Effective January 3, 2018 (the first day of fiscal year 2018), the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), as discussed below in Note 2, using the modified retrospective method of transition. Current year results have been prepared in accordance with the new standards. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for a fair presentation of the consolidated financial position, results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full fiscal year. Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that such estimates have been based on reasonable and supportable assumptions and the resulting estimates are reasonable for use in the preparation of the consolidated financial statements. Actual results could differ from these estimates. The Company’s significant estimates include estimates for impairment of goodwill, intangible assets and property and equipment, valuations provided in business combinations, insurance reserves, restaurant closure reserves, stock-based compensation, contingent liabilities, certain leasing activities and income tax valuation allowances. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842) . This guidance will result in key changes to lease accounting and will aim to bring leases onto balance sheets to give investors, lenders, and other financial statement users a more comprehensive view of a company's long-term financial obligations as well as the assets it owns versus leases. The new leasing standard will be effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. The new guidance requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with certain practical expedients available. The Company is in the process of implementing changes to its systems and processes in conjunction with its review of existing lease agreements. The cumulative effect of adoption will be recorded to retained earnings in the period of adoption. Based on a preliminary assessment, the Company expects that substantially all of its operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a material increase in the assets and liabilities on the Company's consolidated balance sheets. The Company is continuing its evaluation, which may identify additional impacts this standard will have on its consolidated financial statements and related disclosures. The Company will adopt ASU No. 2016-02 during the first quarter of fiscal 2019. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products , which is designed to provide guidance and eliminate diversity in the accounting for the derecognition of financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. The Company adopted the requirements of the new standard in the first fiscal quarter of 2018, utilizing the cumulative effect transition method. There was no material impact as a result of adopting this standard. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which provides a comprehensive new revenue recognition model that requires a company to recognize revenue in an amount that reflects the consideration it expects to receive for the transfer of promised goods or services to its customers. The standard also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09, also known as FASB Accounting Standards Codification ("ASC") Topic 606 ("Topic 606") supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition ("Topic 605"). On January 3, 2018 (the first day of fiscal year 2018), the Company adopted the requirements of Topic 606, utilizing the modified retrospective method of transition. Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, as detailed below. Topic 606 does not materially impact the recognition of company restaurant sales or franchise royalty income from franchisees included in franchise revenue. Franchise sublease income is not within the scope of this new guidance. Franchise Fees The adoption of Topic 606 changed the timing of the recognition of initial franchise fees, including franchise and development fees, and renewal fees, both included in franchise revenue in the consolidated statements of comprehensive income. Under Topic 605, initial franchise fees were recognized when all material obligations had been performed and conditions had been satisfied, typically when operations of a new franchise restaurant had commenced, and renewal fees were recognized when a renewal agreement became effective. Topic 606 requires franchise and renewal fees to be deferred and recognized over the term of the related franchise agreement for the respective restaurant. Franchise agreements typically have a term of 20 years. The impact of the deferral of initial franchise and renewal fees received in a given year may be offset by the recognition of revenue from fees retrospectively deferred from prior years. Upon adoption, the Company recorded approximately $0.7 million as a cumulative effect adjustment to opening retained earnings comprised of $1.0 million of deferred franchise fees included in other non-current liabilities on the consolidated balance sheet as of January 3, 2018 (the first day of fiscal year 2018) related to franchise and renewal fees previously recognized since the Business Combination on June 30, 2015, partially offset by an adjustment of $0.3 million to deferred taxes related to the $1.0 million of deferred franchise fees. During the twelve weeks ended March 27, 2018, the Company recognized $13,000 in franchise revenue related to the amortization of the deferred franchise fees recognized at January 2, 2018 as a result of the adoption of Topic 606. Deferred franchise fees are recognized straight-line over the term of the underlying agreement and the amount expected to be recognized in franchise revenue for amounts in deferred franchise fees as of March 27, 2018 is as follows (in thousands): FY 2018 $ 47 FY 2019 60 FY 2020 60 FY 2021 59 FY 2022 59 Thereafter 702 Total Deferred Franchise Fees $ 987 Advertising The adoption of the new guidance changed the reporting of advertising contributions from franchisees and the related advertising expenses, which were not previously included in the consolidated statements of comprehensive income. Topic 606 requires these franchise advertising contributions and expenses to be reported on a gross basis in the consolidated statements of comprehensive income, which impacted our total revenues and expenses. However, the franchise advertising contributions and expenses are expected to be largely offsetting and therefore does not have a significant impact on reported net income. The current year impact to revenue for franchise advertising contributions and to expenses for franchise advertising expenses for the twelve weeks ended March 27, 2018 was an increase of $2.9 million for both as a result of applying Topic 606. Other Revenue Transactions Certain other franchise expenses have previously been recorded net of the related fees received from franchisees. Under Topic 606, the Company is now including these revenues and expenditures on a gross basis within the consolidated statements of comprehensive income. While this change materially impacted the gross amount of reported franchise revenue and related expenses on the consolidated statements of comprehensive income, the impact is an offsetting increase to both revenue and expense such that there is not a significant, if any, impact on operating income and net income. The current year impact to revenues for the twelve weeks ended March 27, 2018 was an increase of $0.2 million as a result of applying Topic 606, with an offsetting increase in expenses. Comparison To Amounts if Previous Standards Had Been in Effect The following tables reflect the impact of the adoption of Topic 606 on the Company's consolidated balance sheet as of March 27, 2018 and on the Company's consolidated statements of comprehensive income and cash flows from operating activities for the twelve weeks ended March 27, 2018 and the amounts as if Topic 605 was in effect ("Amounts Under Previous Standards") (in thousands): 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 16,040 $ — $ 16,040 Other accrued liabilities 32,947 — 32,947 Current portion of capital lease obligations and deemed landlord financing liabilities 1,309 — 1,309 Total current liabilities 50,296 — 50,296 Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net 171,472 — 171,472 Deferred income taxes 68,644 260 68,904 Other non-current liabilities 32,562 (962 ) 31,600 Total liabilities 322,974 (702 ) 322,272 Shareholders’ equity: Preferred stock — — — Common stock 4 — 4 Additional paid-in capital 350,543 — 350,543 Accumulated other comprehensive income 194 — 194 Retained earnings 69,419 702 70,121 Total shareholders’ equity 420,160 702 420,862 Total liabilities and shareholders’ equity $ 743,134 $ — $ 743,134 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Revenue: Company restaurant sales $ 105,109 $ — $ 105,109 Franchise revenue 3,792 (161 ) 3,631 Franchise advertising contributions 2,936 (2,936 ) — Franchise sublease income 717 — 717 Total revenue 112,554 (3,097 ) 109,457 Operating expenses: Restaurant operating expenses: Food and paper costs 28,973 — 28,973 Labor and related expenses 34,818 — 34,818 Occupancy and other operating expenses 21,986 — 21,986 General and administrative 10,429 (153 ) 10,276 Franchise advertising expenses 2,936 (2,936 ) — Depreciation and amortization 5,914 — 5,914 Occupancy and other - franchise subleases 638 — 638 Pre-opening costs 442 — 442 Restaurant closure charges, net (13 ) — (13 ) Loss on disposal of assets, net 93 — 93 Total operating expenses 106,216 (3,089 ) 103,127 Income from operations 6,338 (8 ) 6,330 Other expense Interest expense 1,910 — 1,910 Total other expense 1,910 — 1,910 Income from operations before provision for income taxes 4,428 (8 ) 4,420 Provision for income taxes 1,199 (2 ) 1,197 Net income 3,229 (6 ) 3,223 Other comprehensive income: Change in fair value of interest rate cap, net of tax 174 — 174 Reclassification of interest rate cap amortization included in net income 6 — 6 Total other comprehensive income 180 — 180 Comprehensive income $ 3,409 $ (6 ) $ 3,403 Earnings per share: Basic $ 0.08 $ — $ 0.08 Diluted $ 0.08 $ — $ 0.08 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Operating activities Net income $ 3,229 $ (6 ) $ 3,223 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,914 — 5,914 Amortization of favorable and unfavorable lease assets and liabilities, net (118 ) — (118 ) Amortization of deferred financing costs and debt discount 95 — 95 Stock-based compensation 1,274 — 1,274 Deferred income taxes 266 (2 ) 264 Loss on disposal of assets, net 93 — 93 Restaurant closure charges 33 — 33 Changes in operating assets and liabilities: Accounts and other receivables, net 1,017 — 1,017 Inventories (27 ) — (27 ) Prepaid expenses and other current assets 3,568 — 3,568 Other assets (16 ) — (16 ) Accounts payable (2,609 ) — (2,609 ) Other accrued liabilities (973 ) — (973 ) Other non-current liabilities 654 8 662 Net cash provided by operating activities $ 12,400 $ — $ 12,400 Summary of Significant Accounting Policies Except for the accounting policies for revenue recognition discussed below that were updated as a result of adopting ASU No. 2014-09, there have been no changes to our significant accounting policies described in the Annual Report on Form 10-K for the year ended January 2, 2018, filed with the SEC on March 15, 2018, that have had a material impact on our condensed consolidated financial statements and related notes. Revenue Recognition Company restaurant sales from the operation of company-operated restaurants are recognized when food and service is delivered to customers. Franchise revenue is comprised of (i) development fees, (ii) franchise fees, (iii) on-going royalties, (iv) renewal fees and (v) other franchise revenue. Development and franchise fees, portions of which are collected in advance and are non-refundable, received pursuant to individual development agreements, grant the right to develop franchise-operated restaurants in future periods in specific geographic areas. Both development fees and franchise fees are deferred and recognized as revenue over the term of the franchise agreement and renewal fees are deferred and recognized over the term of the renewal agreement. Development fees and franchise fees are also generally recognized as revenue upon the termination of the development agreement with the franchisee. Royalties from franchise-operated restaurants are based on a percentage of franchise restaurant sales and are recognized in the period the related franchise-operated restaurant sales occur. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities. Franchise sublease income is comprised of rental income associated with properties leased or subleased to franchisees and is recognized as revenue on an accrual basis. Advertising Costs Franchisees pay a monthly fee to the Company typically equal to 4% of their restaurants’ net sales as contributions for advertising and promotional services that the Company provides and are included in revenue in franchise advertising contributions on the consolidated statements of comprehensive income. Company-operated restaurants contribute to the advertising fund on the same basis as franchise-operated restaurants. Production costs for radio and television advertising are expensed when the commercials are initially aired. Costs of distribution of advertising are charged to expense on the date the advertising is aired or distributed. The portion of these costs related to company-operated restaurants, as well as other marketing-related expenses for advertising are included in occupancy and other operating expenses in the consolidated statements of comprehensive income. The portion of these costs related to franchise-operated restaurants for advertising are included in franchise advertising expenses on the consolidated statements of comprehensive income. |
Restaurant Closure Charges, Net
Restaurant Closure Charges, Net | 3 Months Ended |
Mar. 27, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restaurant Closure Charges, Net | Restaurant Closure Charges, Net At March 27, 2018 and January 2, 2018 , the restaurant closure liability is $2.4 million and $2.8 million , respectively. The details of the restaurant closure activities are discussed below. Restaurant Closures and Lease Reserves The following table represents other restaurant closure liability activity related to restaurant closures prior to 2015 and sublease income shortfalls (in thousands): Total Balance at January 2, 2018 $ 1,213 Charges for accretion in current period 17 Cash payments (334 ) Balance at March 27, 2018 $ 896 The current portion of the restaurant closure liability is $0.2 million at March 27, 2018 and $0.5 million at January 2, 2018 , respectively, and is included in other accrued liabilities in the consolidated balance sheets. The non-current portion of the restaurant closure liability is $0.7 million at both March 27, 2018 and January 2, 2018 and is included in other non-current liabilities in the consolidated balance sheets. Restaurant Closure and Other Related Charges for 12 Underperforming Restaurants During the fourth fiscal quarter of 2015, the Company closed 12 company-operated restaurants. During the twelve weeks ended March 27, 2018 , the Company recorded accretion expense related to the closures, offset by $47,000 of sublease income from leases which are treated as deemed landlord financing. A summary of the restaurant closure liability activity, all of which relates to contract termination costs, for these 12 closed restaurants consisted of the following (in thousands): Total Balance at January 2, 2018 $ 1,611 Charges for accretion in current period 16 Cash payments (141 ) Balance at March 27, 2018 $ 1,486 The current portion of the restaurant closure liability is $0.3 million at both March 27, 2018 and January 2, 2018 and is included in other accrued liabilities in the consolidated balance sheets. The non-current portion of the restaurant closure liability is $1.2 million and $1.3 million at March 27, 2018 and January 2, 2018 , respectively, and is included in other non-current liabilities in the consolidated balance sheets. |
Goodwill and other Intangible A
Goodwill and other Intangible Assets | 3 Months Ended |
Mar. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other Intangible Assets | Goodwill and other Intangible Assets Goodwill was $320.6 million at both March 27, 2018 and January 2, 2018 . There have been no changes in the carrying amount of trademarks since January 2, 2018 . The Company’s other intangible assets at March 27, 2018 and January 2, 2018 consisted of the following (in thousands): March 27, 2018 January 2, 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Favorable lease assets $ 13,707 $ (4,814 ) $ 8,893 $ 13,744 $ (4,442 ) $ 9,302 Franchise rights 15,203 (3,569 ) 11,634 15,284 (3,282 ) 12,002 Reacquired franchise rights 243 (59 ) 184 243 (49 ) 194 Total amortized other intangible assets $ 29,153 $ (8,442 ) $ 20,711 $ 29,271 $ (7,773 ) $ 21,498 During the twelve weeks ended March 27, 2018 , the Company wrote-off $37,000 of favorable lease assets related to the termination of a lease and $0.1 million of franchise rights associated with the closure of one franchise-operated restaurant. |
Debt, Obligations Under Capital
Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities | 3 Months Ended |
Mar. 27, 2018 | |
Debt Disclosure [Abstract] | |
Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities | Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities The Company’s long-term debt, capital lease obligations and deemed landlord financing liabilities at March 27, 2018 and January 2, 2018 consisted of the following (in thousands): March 27, 2018 January 2, 2018 2015 Senior Credit Facility, net of debt discount of $680 and $747 and deferred financing costs of $230 and $252 at March 27, 2018 and January 2, 2018, respectively $ 153,090 $ 152,001 Total outstanding indebtedness 153,090 152,001 Obligations under capital leases and deemed landlord financing liabilities 19,691 20,053 Total debt 172,781 172,054 Less: amounts due within one year 1,309 1,415 Total amounts due after one year, net $ 171,472 $ 170,639 At March 27, 2018 and January 2, 2018 , the Company assessed the amounts recorded under the 2015 Senior Credit Facility and determined that such amounts approximated fair value. 2015 Revolving Credit Facility On August 4, 2015 , the Company refinanced its existing senior credit facility and entered into a new credit agreement (the “Credit Agreement”). The Credit Agreement, which matures on August 4, 2020 , provides for a $250 million revolving credit facility (the “2015 Senior Credit Facility”). The Credit Agreement contains certain financial covenants, including the maintenance of a consolidated total lease adjusted leverage ratio and a consolidated fixed charge coverage ratio. The Company was in compliance with the financial covenants as of March 27, 2018 . Substantially all of the assets of the Company are pledged as collateral under the 2015 Senior Credit Facility. At March 27, 2018 , the weighted-average interest rate on the outstanding balance of the 2015 Senior Credit Facility was 3.4% . At March 27, 2018 , the Company had a total of $77.8 million of availability for additional borrowings under the 2015 Senior Credit Facility as the Company had $154.0 million of outstanding borrowings and letters of credit outstanding of $18.2 million which reduce availability under the 2015 Senior Credit Facility. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 27, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments In June 2016, the Company entered into an interest rate cap agreement that became effective July 1, 2016, to hedge cash flows associated with interest rate fluctuations on variable rate debt, with a termination date of March 31, 2020 ("2016 Interest Rate Cap Agreement"). The 2016 Interest Rate Cap Agreement had an initial notional amount of $70.0 million of the 2015 Senior Credit Facility that effectively converted that portion of the outstanding balance of the 2015 Senior Credit Facility from variable rate debt to capped variable rate debt, resulting in a change in the applicable interest rate from an interest rate of one-month LIBOR plus the applicable margin (as provided by the 2015 Senior Credit Facility) to a capped interest rate of 2.00% plus the applicable margin. During the period from July 1, 2016 through March 27, 2018 , the 2016 Interest Rate Cap Agreement had no hedge ineffectiveness. 2016 Interest Rate Cap Agreement To ensure the effectiveness of the 2016 Interest Rate Cap Agreement, the Company elected the one-month LIBOR rate option for its variable rate interest payments on term balances equal to or in excess of the applicable notional amount of the interest rate cap agreement as of each reset date. The reset dates and other critical terms on the term loans perfectly match with the interest rate cap reset dates and other critical terms during the twelve weeks ended March 27, 2018 . During the twelve weeks ended March 27, 2018, the Company reclassified $6,000 of interest expense related to the hedges of these transactions into earnings. As of March 27, 2018 , the Company was hedging forecasted transactions expected to occur through March 31, 2020. Assuming interest rates at March 27, 2018 remain constant, $0.3 million of interest expense related to hedges of these transactions is expected to be reclassified into earnings over the next 24 months. The Company intends to ensure that this hedge remains effective, therefore, approximately $0.1 million is expected to be reclassified into interest expense over the next 12 months. The effective portion of the 2016 Interest Rate Cap Agreement through March 27, 2018 was included in accumulated other comprehensive income. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 27, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate their carrying amounts due to their short maturities. The carrying value of the 2015 Senior Credit Facility approximated fair value. The 2016 Interest Rate Cap Agreement is recorded at fair value in the Company’s consolidated balance sheets. As of March 27, 2018 and January 2, 2018 , the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis. For both periods, this included a derivative instrument related to interest rates. The Company determined the fair value of the interest rate cap contract based on counterparty quotes, with appropriate adjustments for any significant impact of nonperformance risk of the parties to the interest rate cap contract. Therefore, the Company categorized this interest rate cap contract as Level 2 fair value measurements. The fair value of the 2016 Interest Rate Cap Agreement was $0.6 million and $0.3 million at March 27, 2018 and January 2, 2018 , respectively, and is included in other assets in the consolidated balance sheets. The Company's assets and liabilities measured at fair value on a recurring basis as of March 27, 2018 and January 2, 2018 were as follows (in thousands): March 27, 2018 (Unaudited) Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) 2016 Interest Rate Cap Agreement $ 572 $ — $ 572 $ — Total assets measured at fair value $ 572 $ — $ 572 $ — January 2, 2018 Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) 2016 Interest Rate Cap Agreement $ 332 $ — $ 332 $ — Total assets measured at fair value $ 332 $ — $ 332 $ — |
Other Accrued Liabilities and O
Other Accrued Liabilities and Other Non-current Liabilities | 3 Months Ended |
Mar. 27, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities and Other Non-current Liabilities | Other Accrued Liabilities and Other Non-current Liabilities A summary of other accrued liabilities follows (in thousands): March 27, 2018 January 2, 2018 Employee compensation and related items $ 10,544 $ 12,945 Accrued insurance 6,713 7,232 Accrued sales tax 3,749 3,987 Accrued advertising 2,402 728 Accrued real property tax 1,905 1,331 Restaurant closure liability 493 794 Other 7,141 8,240 $ 32,947 $ 35,257 A summary of other non-current liabilities follows (in thousands): March 27, 2018 January 2, 2018 Unfavorable lease liabilities $ 13,941 $ 14,469 Insurance reserves 6,866 5,965 Deferred rent liability 3,146 2,972 Deferred development and initial franchise fees 2,549 1,335 Restaurant closure liability 1,890 2,030 Unearned trade discount, non-current 1,057 1,149 Deferred gift card income 836 1,234 Other 2,277 2,277 $ 32,562 $ 31,431 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 27, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In connection with the approval of the Business Combination, the Del Taco Restaurants, Inc. 2015 Omnibus Incentive Plan (the “2015 Plan”) was approved by shareholders to offer eligible employees, directors and consultants cash and stock-based incentive awards. Awards under the 2015 Plan are generally not restricted to any specific form or structure and could include, without limitation, stock options, stock appreciation rights, restricted stock, other stock-based awards, other cash-based compensation and performance awards. Under the plan, there were 3,300,000 shares of common stock reserved and authorized. At March 27, 2018 , there were 1,374,844 shares of common stock available for grant under the 2015 Plan. Stock-Based Compensation Expense The total compensation expense related to the 2015 Plan was $1.3 million and $1.1 million for the twelve weeks ended March 27, 2018 and March 28, 2017 , respectively. Restricted Stock Awards A summary of outstanding and unvested restricted stock activity as of March 27, 2018 and changes during the period from January 2, 2018 through March 27, 2018 are as follows: Shares Weighted-Average Grant Date Fair Value Nonvested at January 2, 2018 1,088,910 $ 11.92 Granted 20,000 12.29 Vested (16,250 ) 12.26 Forfeited — — Nonvested at March 27, 2018 1,092,660 $ 11.93 For both the twelve weeks ended March 27, 2018 and March 28, 2017, the Company made payments of $0.1 million related to tax withholding obligations for the vesting of restricted stock awards in exchange for 9,892 and 4,686 shares withheld, respectively. As of March 27, 2018 , there was $7.8 million of unrecognized expense, net of estimated forfeitures, related to restricted stock awards which is expected to be recognized over a weighted-average remaining period of 2.3 years . The fair value of these awards was determined based on the Company’s stock price on the grant date. Stock Options A summary of stock option activity as of March 27, 2018 and changes during the period from January 2, 2018 through March 27, 2018 are as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Options outstanding at January 2, 2018 417,000 $ 11.04 5.5 $ 641 Granted — — Exercised (4,750 ) 10.06 Forfeited/Expired (26,500 ) 11.25 Options outstanding at March 27, 2018 385,750 $ 11.04 5.2 $ 135 Options exercisable at March 27, 2018 115,498 $ 10.12 4.5 $ 37 Options exercisable and expected to vest at March 27, 2018 359,553 $ 10.98 5.2 $ 126 The aggregate intrinsic value in the table above is the amount by which the current market price of the Company's stock exceeds the exercise price on January 2, 2018 and March 27, 2018 , respectively. As of March 27, 2018 , there was $0.7 million of unrecognized stock compensation expense, net of estimated forfeitures, related to stock option grants which is expected to be recognized over a weighted-average remaining period of 2.4 years . |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 27, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity On February 26, 2016, the Company's Board of Directors authorized a share repurchase program covering up to $25.0 million in the aggregate of the Company's common stock and warrants which was effective immediately and expires upon completion of the repurchase program, unless terminated earlier by the Board of Directors. On August 23, 2016, the Company announced that the Board of Directors increased the repurchase program by $25.0 million , to $50.0 million . Purchases under the program may be made in open market or privately negotiated transactions. During the twelve weeks ended March 27, 2018 , the Company repurchased 9,811 warrants for an average price per warrant of $3.37 for an aggregate cost of approximately $33,000 , including incremental direct costs to acquire the warrants. The Company expects to retire the repurchased shares and therefore has accounted for them as constructively retired as of March 27, 2018 . As of March 27, 2018 , there was approximately $20.9 million remaining under the share repurchase program. The Company has no obligations to repurchase shares or warrants under this authorization, and the timing and value of shares and warrants purchased will depend on the Company's stock price, warrant price, market conditions and other factors. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 27, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic income per share is calculated by dividing net income attributable to Del Taco’s common shareholders for the period by the weighted average number of common shares outstanding for the period. In computing dilutive income per share, basic income per share is adjusted for the assumed issuance of all applicable potentially dilutive share-based awards, including warrants, restricted stock, common stock options and restricted stock units. Below are basic and diluted net income per share for the periods indicated (amounts in thousands except share and per share data): 12 Weeks Ended March 27, 2018 March 28, 2017 Numerator: Net income $ 3,229 $ 4,238 Denominator: Weighted-average shares outstanding - basic 38,441,707 39,003,935 Dilutive effect of unvested restricted stock 306,583 454,810 Dilutive effect of stock options 21,454 23,190 Dilutive effect of warrants 454,326 893,126 Weighted-average shares outstanding - diluted 39,224,070 40,375,061 Net income per share - basic 0.08 $ 0.11 Net income per share - diluted 0.08 $ 0.10 Antidilutive stock options, unvested restricted stock awards and warrants excluded from the computations 128,048 36,500 Antidilutive stock options, unvested restricted stock and warrants were excluded from the computation of diluted net income per share due to the assumed proceeds from the award’s exercise or vesting being greater than the average market price of the common shares. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 27, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rates were 27.1% and 40.1% for the twelve weeks ended March 27, 2018 and March 28, 2017 , respectively. The provision for income taxes consisted of income tax expense of $1.2 million and $2.8 million for the twelve weeks ended March 27, 2018 and March 28, 2017 , respectively. The income tax expense for the twelve weeks ended March 27, 2018 is driven by the estimated effective income tax rate of 27.1% which primarily consists of statutory federal and state tax rates based on apportioned income and the impact of non-tax deductible compensation to executives partially offset by federal targeted job credits. The income tax expense for the twelve weeks ended March 28, 2017 is driven by the estimated effective income tax rate of 40.1% which primarily consists of statutory federal and state tax rates based on apportioned income, partially offset by federal targeted job credits. On December 22, 2017, the Tax Cuts and Jobs Act, (the “Act”) was enacted, reducing the U.S. federal corporate income tax rate from 35% to 21%, among other changes, for tax years beginning after December 31, 2017. The SEC staff issued Staff Accounting Bulletin 118, ("SAB 118") which provides guidance on accounting for the tax effects of the Act for which the accounting under ASC 740, Income Taxes (“ASC 740”) is incomplete. To the extent that a company's accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before enactment of the Act. The Company re-measured the applicable deferred tax assets and liabilities based on the rates at which they are expected to reverse. However, the Company is still analyzing certain aspects of the Act and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The Company will continue to analyze additional information and guidance related to the Act as supplemental legislation, regulatory guidance, or evolving technical interpretations become available. The final impacts may differ from the recorded amounts as of March 27, 2018, and the Company will continue to refine such amounts within the measurement period provided by SAB 118. The Company expects to complete its analysis no later than the fourth quarter of 2018. Management believes it is more likely than not that all deferred tax assets will be realized and therefore no valuation allowance as of March 27, 2018 and January 2, 2018 is required. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 27, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The primary claims in the Company’s business are workers’ compensation and general liabilities. These insurance programs are self-insured or high deductible programs with excess coverage that management believes is sufficient to adequately protect the Company. In the opinion of management, adequate provision has been made for all incurred claims up to the self-insured or high deductible limits, including provision for estimated claims incurred but not reported. Because of the uncertainty of the ultimate resolution of outstanding claims, as well as the uncertainty regarding claims incurred but not reported, it is possible that management’s provision for these losses could change materially. However, no estimate can currently be made of the range of additional losses. Purchasing Commitments The Company enters into various purchase obligations in the ordinary course of business, generally of short term nature. Those that are binding primarily relate to commitments for food purchases and supplies, amounts owed under contractor and subcontractor agreements, orders submitted for equipment for restaurants under construction, information technology service agreements and marketing initiatives, some of which are related to both company-operated and franchise-operated locations. The Company also has a long-term beverage supply agreement with a major beverage vendor whereby marketing rebates are provided to the Company and its franchisees based upon the volumes of purchases for system-wide restaurants which vary according to demand for beverage syrup. This contract has terms extending into 2021 . The Company’s future estimated cash payments under existing contractual purchase obligations for goods and services as of March 27, 2018 , are approximately $67.5 million . The Company has excluded agreements that are cancelable without penalty. Litigation In March 2014, a former Del Taco employee filed a purported class action complaint alleging that Del Taco has not appropriately provided meal breaks and failed to pay wages to its California hourly employees. Discovery is in process and Del Taco intends to assert all of its defenses to this threatened class action and the individual claims. Del Taco has several defenses to the action that it believes could prevent the certification of the class, as well as the potential assessment of any damages on a class basis. Legal proceedings are inherently unpredictable, and the Company is not able to predict the ultimate outcome or cost of the unresolved matter. However, based on management’s current understanding of the relevant facts and circumstances, the Company does not believe that these proceedings give rise to a probable or estimable loss and should not have a material adverse effect on the Company’s financial position, operations or cash flows. Therefore, Del Taco has not recorded any amount for the claim as of March 27, 2018 . The Company and its subsidiaries are parties to other legal proceedings incidental to their businesses, including claims alleging the Company’s restaurants do not comply with the Americans with Disabilities Act of 1990. In the opinion of management, based upon information currently available, the ultimate liability with respect to those other actions will not have a material effect on the operating results, cash flows or the financial position of the Company. However, due to the risks and uncertainties inherent in legal proceedings and litigation, actual results could differ from expectations. |
Basis of Presentation and Sum19
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 27, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Except for the accounting policies for revenue recognition discussed below that were updated as a result of adopting ASU No. 2014-09, there have been no changes to our significant accounting policies described in the Annual Report on Form 10-K for the year ended January 2, 2018, filed with the SEC on March 15, 2018, that have had a material impact on our condensed consolidated financial statements and related notes. Revenue Recognition Company restaurant sales from the operation of company-operated restaurants are recognized when food and service is delivered to customers. Franchise revenue is comprised of (i) development fees, (ii) franchise fees, (iii) on-going royalties, (iv) renewal fees and (v) other franchise revenue. Development and franchise fees, portions of which are collected in advance and are non-refundable, received pursuant to individual development agreements, grant the right to develop franchise-operated restaurants in future periods in specific geographic areas. Both development fees and franchise fees are deferred and recognized as revenue over the term of the franchise agreement and renewal fees are deferred and recognized over the term of the renewal agreement. Development fees and franchise fees are also generally recognized as revenue upon the termination of the development agreement with the franchisee. Royalties from franchise-operated restaurants are based on a percentage of franchise restaurant sales and are recognized in the period the related franchise-operated restaurant sales occur. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities. Franchise sublease income is comprised of rental income associated with properties leased or subleased to franchisees and is recognized as revenue on an accrual basis. Advertising Costs Franchisees pay a monthly fee to the Company typically equal to 4% of their restaurants’ net sales as contributions for advertising and promotional services that the Company provides and are included in revenue in franchise advertising contributions on the consolidated statements of comprehensive income. Company-operated restaurants contribute to the advertising fund on the same basis as franchise-operated restaurants. Production costs for radio and television advertising are expensed when the commercials are initially aired. Costs of distribution of advertising are charged to expense on the date the advertising is aired or distributed. The portion of these costs related to company-operated restaurants, as well as other marketing-related expenses for advertising are included in occupancy and other operating expenses in the consolidated statements of comprehensive income. The portion of these costs related to franchise-operated restaurants for advertising are included in franchise advertising expenses on the consolidated statements of comprehensive income. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Revenue Recognition Company restaurant sales from the operation of company-operated restaurants are recognized when food and service is delivered to customers. Franchise revenue is comprised of (i) development fees, (ii) franchise fees, (iii) on-going royalties, (iv) renewal fees and (v) other franchise revenue. Development and franchise fees, portions of which are collected in advance and are non-refundable, received pursuant to individual development agreements, grant the right to develop franchise-operated restaurants in future periods in specific geographic areas. Both development fees and franchise fees are deferred and recognized as revenue over the term of the franchise agreement and renewal fees are deferred and recognized over the term of the renewal agreement. Development fees and franchise fees are also generally recognized as revenue upon the termination of the development agreement with the franchisee. Royalties from franchise-operated restaurants are based on a percentage of franchise restaurant sales and are recognized in the period the related franchise-operated restaurant sales occur. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities. Franchise sublease income is comprised of rental income associated with properties leased or subleased to franchisees and is recognized as revenue on an accrual basis. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). For additional information, these unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended January 2, 2018 ("2017 Form 10-K"). The Company’s fiscal year ends on the Tuesday closest to December 31. Fiscal year 2018 is a fifty-two week period ending January 1, 2019 . Fiscal year 2017 is the fifty-two week period ended January 2, 2018 . In a fifty-two week fiscal year, the first, second and third quarters each include twelve weeks of operations and the fourth quarter includes sixteen weeks of operations. For fiscal year 2018 , the Company’s accompanying financial statements reflect the twelve weeks ended March 27, 2018 . For fiscal year 2017 , the Company’s accompanying financial statements reflect the twelve weeks ended March 28, 2017 . Effective January 3, 2018 (the first day of fiscal year 2018), the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), as discussed below in Note 2, using the modified retrospective method of transition. Current year results have been prepared in accordance with the new standards. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for a fair presentation of the consolidated financial position, results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full fiscal year. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that such estimates have been based on reasonable and supportable assumptions and the resulting estimates are reasonable for use in the preparation of the consolidated financial statements. Actual results could differ from these estimates. The Company’s significant estimates include estimates for impairment of goodwill, intangible assets and property and equipment, valuations provided in business combinations, insurance reserves, restaurant closure reserves, stock-based compensation, contingent liabilities, certain leasing activities and income tax valuation allowances |
Recently Issued and Recently Adopted Accounting Standards | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842) . This guidance will result in key changes to lease accounting and will aim to bring leases onto balance sheets to give investors, lenders, and other financial statement users a more comprehensive view of a company's long-term financial obligations as well as the assets it owns versus leases. The new leasing standard will be effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years. The new guidance requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with certain practical expedients available. The Company is in the process of implementing changes to its systems and processes in conjunction with its review of existing lease agreements. The cumulative effect of adoption will be recorded to retained earnings in the period of adoption. Based on a preliminary assessment, the Company expects that substantially all of its operating lease commitments will be subject to the new guidance and recognized as operating lease liabilities and right-of-use assets upon adoption, resulting in a material increase in the assets and liabilities on the Company's consolidated balance sheets. The Company is continuing its evaluation, which may identify additional impacts this standard will have on its consolidated financial statements and related disclosures. The Company will adopt ASU No. 2016-02 during the first quarter of fiscal 2019. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU No. 2016-04, Liabilities-Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products , which is designed to provide guidance and eliminate diversity in the accounting for the derecognition of financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. The Company adopted the requirements of the new standard in the first fiscal quarter of 2018, utilizing the cumulative effect transition method. There was no material impact as a result of adopting this standard. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which provides a comprehensive new revenue recognition model that requires a company to recognize revenue in an amount that reflects the consideration it expects to receive for the transfer of promised goods or services to its customers. The standard also requires additional disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU No. 2014-09, also known as FASB Accounting Standards Codification ("ASC") Topic 606 ("Topic 606") supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition ("Topic 605"). On January 3, 2018 (the first day of fiscal year 2018), the Company adopted the requirements of Topic 606, utilizing the modified retrospective method of transition. Adoption of the new standard resulted in changes to our accounting policies for revenue recognition, as detailed below. Topic 606 does not materially impact the recognition of company restaurant sales or franchise royalty income from franchisees included in franchise revenue. Franchise sublease income is not within the scope of this new guidance. Franchise Fees The adoption of Topic 606 changed the timing of the recognition of initial franchise fees, including franchise and development fees, and renewal fees, both included in franchise revenue in the consolidated statements of comprehensive income. Under Topic 605, initial franchise fees were recognized when all material obligations had been performed and conditions had been satisfied, typically when operations of a new franchise restaurant had commenced, and renewal fees were recognized when a renewal agreement became effective. Topic 606 requires franchise and renewal fees to be deferred and recognized over the term of the related franchise agreement for the respective restaurant. Franchise agreements typically have a term of 20 years. The impact of the deferral of initial franchise and renewal fees received in a given year may be offset by the recognition of revenue from fees retrospectively deferred from prior years. Upon adoption, the Company recorded approximately $0.7 million as a cumulative effect adjustment to opening retained earnings comprised of $1.0 million of deferred franchise fees included in other non-current liabilities on the consolidated balance sheet as of January 3, 2018 (the first day of fiscal year 2018) related to franchise and renewal fees previously recognized since the Business Combination on June 30, 2015, partially offset by an adjustment of $0.3 million to deferred taxes related to the $1.0 million of deferred franchise fees. During the twelve weeks ended March 27, 2018, the Company recognized $13,000 in franchise revenue related to the amortization of the deferred franchise fees recognized at January 2, 2018 as a result of the adoption of Topic 606. Deferred franchise fees are recognized straight-line over the term of the underlying agreement and the amount expected to be recognized in franchise revenue for amounts in deferred franchise fees as of March 27, 2018 is as follows (in thousands): FY 2018 $ 47 FY 2019 60 FY 2020 60 FY 2021 59 FY 2022 59 Thereafter 702 Total Deferred Franchise Fees $ 987 Advertising The adoption of the new guidance changed the reporting of advertising contributions from franchisees and the related advertising expenses, which were not previously included in the consolidated statements of comprehensive income. Topic 606 requires these franchise advertising contributions and expenses to be reported on a gross basis in the consolidated statements of comprehensive income, which impacted our total revenues and expenses. However, the franchise advertising contributions and expenses are expected to be largely offsetting and therefore does not have a significant impact on reported net income. The current year impact to revenue for franchise advertising contributions and to expenses for franchise advertising expenses for the twelve weeks ended March 27, 2018 was an increase of $2.9 million for both as a result of applying Topic 606. Other Revenue Transactions Certain other franchise expenses have previously been recorded net of the related fees received from franchisees. Under Topic 606, the Company is now including these revenues and expenditures on a gross basis within the consolidated statements of comprehensive income. While this change materially impacted the gross amount of reported franchise revenue and related expenses on the consolidated statements of comprehensive income, the impact is an offsetting increase to both revenue and expense such that there is not a significant, if any, impact on operating income and net income. The current year impact to revenues for the twelve weeks ended March 27, 2018 was an increase of $0.2 million as a result of applying Topic 606, with an offsetting increase in expenses. Comparison To Amounts if Previous Standards Had Been in Effect The following tables reflect the impact of the adoption of Topic 606 on the Company's consolidated balance sheet as of March 27, 2018 and on the Company's consolidated statements of comprehensive income and cash flows from operating activities for the twelve weeks ended March 27, 2018 and the amounts as if Topic 605 was in effect ("Amounts Under Previous Standards") (in thousands): 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 16,040 $ — $ 16,040 Other accrued liabilities 32,947 — 32,947 Current portion of capital lease obligations and deemed landlord financing liabilities 1,309 — 1,309 Total current liabilities 50,296 — 50,296 Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net 171,472 — 171,472 Deferred income taxes 68,644 260 68,904 Other non-current liabilities 32,562 (962 ) 31,600 Total liabilities 322,974 (702 ) 322,272 Shareholders’ equity: Preferred stock — — — Common stock 4 — 4 Additional paid-in capital 350,543 — 350,543 Accumulated other comprehensive income 194 — 194 Retained earnings 69,419 702 70,121 Total shareholders’ equity 420,160 702 420,862 Total liabilities and shareholders’ equity $ 743,134 $ — $ 743,134 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Revenue: Company restaurant sales $ 105,109 $ — $ 105,109 Franchise revenue 3,792 (161 ) 3,631 Franchise advertising contributions 2,936 (2,936 ) — Franchise sublease income 717 — 717 Total revenue 112,554 (3,097 ) 109,457 Operating expenses: Restaurant operating expenses: Food and paper costs 28,973 — 28,973 Labor and related expenses 34,818 — 34,818 Occupancy and other operating expenses 21,986 — 21,986 General and administrative 10,429 (153 ) 10,276 Franchise advertising expenses 2,936 (2,936 ) — Depreciation and amortization 5,914 — 5,914 Occupancy and other - franchise subleases 638 — 638 Pre-opening costs 442 — 442 Restaurant closure charges, net (13 ) — (13 ) Loss on disposal of assets, net 93 — 93 Total operating expenses 106,216 (3,089 ) 103,127 Income from operations 6,338 (8 ) 6,330 Other expense Interest expense 1,910 — 1,910 Total other expense 1,910 — 1,910 Income from operations before provision for income taxes 4,428 (8 ) 4,420 Provision for income taxes 1,199 (2 ) 1,197 Net income 3,229 (6 ) 3,223 Other comprehensive income: Change in fair value of interest rate cap, net of tax 174 — 174 Reclassification of interest rate cap amortization included in net income 6 — 6 Total other comprehensive income 180 — 180 Comprehensive income $ 3,409 $ (6 ) $ 3,403 Earnings per share: Basic $ 0.08 $ — $ 0.08 Diluted $ 0.08 $ — $ 0.08 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Operating activities Net income $ 3,229 $ (6 ) $ 3,223 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,914 — 5,914 Amortization of favorable and unfavorable lease assets and liabilities, net (118 ) — (118 ) Amortization of deferred financing costs and debt discount 95 — 95 Stock-based compensation 1,274 — 1,274 Deferred income taxes 266 (2 ) 264 Loss on disposal of assets, net 93 — 93 Restaurant closure charges 33 — 33 Changes in operating assets and liabilities: Accounts and other receivables, net 1,017 — 1,017 Inventories (27 ) — (27 ) Prepaid expenses and other current assets 3,568 — 3,568 Other assets (16 ) — (16 ) Accounts payable (2,609 ) — (2,609 ) Other accrued liabilities (973 ) — (973 ) Other non-current liabilities 654 8 662 Net cash provided by operating activities $ 12,400 $ — $ 12,400 |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Franchisees pay a monthly fee to the Company typically equal to 4% of their restaurants’ net sales as contributions for advertising and promotional services that the Company provides and are included in revenue in franchise advertising contributions on the consolidated statements of comprehensive income. Company-operated restaurants contribute to the advertising fund on the same basis as franchise-operated restaurants. Production costs for radio and television advertising are expensed when the commercials are initially aired. Costs of distribution of advertising are charged to expense on the date the advertising is aired or distributed. The portion of these costs related to company-operated restaurants, as well as other marketing-related expenses for advertising are included in occupancy and other operating expenses in the consolidated statements of comprehensive income. The portion of these costs related to franchise-operated restaurants for advertising are included in franchise advertising expenses on the consolidated statements of comprehensive income. |
Basis of Presentation and Sum20
Basis of Presentation and Summary of Significant Accounting Policies Revenue Recognition (Tables) | 3 Months Ended |
Mar. 27, 2018 | |
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfaction [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following tables reflect the impact of the adoption of Topic 606 on the Company's consolidated balance sheet as of March 27, 2018 and on the Company's consolidated statements of comprehensive income and cash flows from operating activities for the twelve weeks ended March 27, 2018 and the amounts as if Topic 605 was in effect ("Amounts Under Previous Standards") (in thousands): 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 16,040 $ — $ 16,040 Other accrued liabilities 32,947 — 32,947 Current portion of capital lease obligations and deemed landlord financing liabilities 1,309 — 1,309 Total current liabilities 50,296 — 50,296 Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net 171,472 — 171,472 Deferred income taxes 68,644 260 68,904 Other non-current liabilities 32,562 (962 ) 31,600 Total liabilities 322,974 (702 ) 322,272 Shareholders’ equity: Preferred stock — — — Common stock 4 — 4 Additional paid-in capital 350,543 — 350,543 Accumulated other comprehensive income 194 — 194 Retained earnings 69,419 702 70,121 Total shareholders’ equity 420,160 702 420,862 Total liabilities and shareholders’ equity $ 743,134 $ — $ 743,134 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Tables [Table Text Block] | Deferred franchise fees are recognized straight-line over the term of the underlying agreement and the amount expected to be recognized in franchise revenue for amounts in deferred franchise fees as of March 27, 2018 is as follows (in thousands): FY 2018 $ 47 FY 2019 60 FY 2020 60 FY 2021 59 FY 2022 59 Thereafter 702 Total Deferred Franchise Fees $ 987 |
Condensed Balance Sheet [Table Text Block] | The following tables reflect the impact of the adoption of Topic 606 on the Company's consolidated balance sheet as of March 27, 2018 and on the Company's consolidated statements of comprehensive income and cash flows from operating activities for the twelve weeks ended March 27, 2018 and the amounts as if Topic 605 was in effect ("Amounts Under Previous Standards") (in thousands): 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 16,040 $ — $ 16,040 Other accrued liabilities 32,947 — 32,947 Current portion of capital lease obligations and deemed landlord financing liabilities 1,309 — 1,309 Total current liabilities 50,296 — 50,296 Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net 171,472 — 171,472 Deferred income taxes 68,644 260 68,904 Other non-current liabilities 32,562 (962 ) 31,600 Total liabilities 322,974 (702 ) 322,272 Shareholders’ equity: Preferred stock — — — Common stock 4 — 4 Additional paid-in capital 350,543 — 350,543 Accumulated other comprehensive income 194 — 194 Retained earnings 69,419 702 70,121 Total shareholders’ equity 420,160 702 420,862 Total liabilities and shareholders’ equity $ 743,134 $ — $ 743,134 |
Condensed Income Statement [Table Text Block] | 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Revenue: Company restaurant sales $ 105,109 $ — $ 105,109 Franchise revenue 3,792 (161 ) 3,631 Franchise advertising contributions 2,936 (2,936 ) — Franchise sublease income 717 — 717 Total revenue 112,554 (3,097 ) 109,457 Operating expenses: Restaurant operating expenses: Food and paper costs 28,973 — 28,973 Labor and related expenses 34,818 — 34,818 Occupancy and other operating expenses 21,986 — 21,986 General and administrative 10,429 (153 ) 10,276 Franchise advertising expenses 2,936 (2,936 ) — Depreciation and amortization 5,914 — 5,914 Occupancy and other - franchise subleases 638 — 638 Pre-opening costs 442 — 442 Restaurant closure charges, net (13 ) — (13 ) Loss on disposal of assets, net 93 — 93 Total operating expenses 106,216 (3,089 ) 103,127 Income from operations 6,338 (8 ) 6,330 Other expense Interest expense 1,910 — 1,910 Total other expense 1,910 — 1,910 Income from operations before provision for income taxes 4,428 (8 ) 4,420 Provision for income taxes 1,199 (2 ) 1,197 Net income 3,229 (6 ) 3,223 Other comprehensive income: Change in fair value of interest rate cap, net of tax 174 — 174 Reclassification of interest rate cap amortization included in net income 6 — 6 Total other comprehensive income 180 — 180 Comprehensive income $ 3,409 $ (6 ) $ 3,403 Earnings per share: Basic $ 0.08 $ — $ 0.08 Diluted $ 0.08 $ — $ 0.08 |
Condensed Cash Flow Statement [Table Text Block] | 12 Weeks Ended March 27, 2018 As Reported Adjustments for Prior Revenue Recognition Standards Amounts Under Previous Standards Operating activities Net income $ 3,229 $ (6 ) $ 3,223 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,914 — 5,914 Amortization of favorable and unfavorable lease assets and liabilities, net (118 ) — (118 ) Amortization of deferred financing costs and debt discount 95 — 95 Stock-based compensation 1,274 — 1,274 Deferred income taxes 266 (2 ) 264 Loss on disposal of assets, net 93 — 93 Restaurant closure charges 33 — 33 Changes in operating assets and liabilities: Accounts and other receivables, net 1,017 — 1,017 Inventories (27 ) — (27 ) Prepaid expenses and other current assets 3,568 — 3,568 Other assets (16 ) — (16 ) Accounts payable (2,609 ) — (2,609 ) Other accrued liabilities (973 ) — (973 ) Other non-current liabilities 654 8 662 Net cash provided by operating activities $ 12,400 $ — $ 12,400 |
Restaurant Closure Charges, N21
Restaurant Closure Charges, Net (Tables) | 3 Months Ended |
Mar. 27, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restaurant Closure Liability Activity | The following table represents other restaurant closure liability activity related to restaurant closures prior to 2015 and sublease income shortfalls (in thousands): Total Balance at January 2, 2018 $ 1,213 Charges for accretion in current period 17 Cash payments (334 ) Balance at March 27, 2018 $ 896 |
Closure Liability Activity for 12 Closed Restaurants | A summary of the restaurant closure liability activity, all of which relates to contract termination costs, for these 12 closed restaurants consisted of the following (in thousands): Total Balance at January 2, 2018 $ 1,611 Charges for accretion in current period 16 Cash payments (141 ) Balance at March 27, 2018 $ 1,486 |
Goodwill and other Intangible22
Goodwill and other Intangible Assets (Tables) | 3 Months Ended |
Mar. 27, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | The Company’s other intangible assets at March 27, 2018 and January 2, 2018 consisted of the following (in thousands): March 27, 2018 January 2, 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Favorable lease assets $ 13,707 $ (4,814 ) $ 8,893 $ 13,744 $ (4,442 ) $ 9,302 Franchise rights 15,203 (3,569 ) 11,634 15,284 (3,282 ) 12,002 Reacquired franchise rights 243 (59 ) 184 243 (49 ) 194 Total amortized other intangible assets $ 29,153 $ (8,442 ) $ 20,711 $ 29,271 $ (7,773 ) $ 21,498 |
Debt, Obligations Under Capit23
Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities (Tables) | 3 Months Ended |
Mar. 27, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s long-term debt, capital lease obligations and deemed landlord financing liabilities at March 27, 2018 and January 2, 2018 consisted of the following (in thousands): March 27, 2018 January 2, 2018 2015 Senior Credit Facility, net of debt discount of $680 and $747 and deferred financing costs of $230 and $252 at March 27, 2018 and January 2, 2018, respectively $ 153,090 $ 152,001 Total outstanding indebtedness 153,090 152,001 Obligations under capital leases and deemed landlord financing liabilities 19,691 20,053 Total debt 172,781 172,054 Less: amounts due within one year 1,309 1,415 Total amounts due after one year, net $ 171,472 $ 170,639 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 27, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The Company's assets and liabilities measured at fair value on a recurring basis as of March 27, 2018 and January 2, 2018 were as follows (in thousands): March 27, 2018 (Unaudited) Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) 2016 Interest Rate Cap Agreement $ 572 $ — $ 572 $ — Total assets measured at fair value $ 572 $ — $ 572 $ — January 2, 2018 Markets for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) 2016 Interest Rate Cap Agreement $ 332 $ — $ 332 $ — Total assets measured at fair value $ 332 $ — $ 332 $ — |
Other Accrued Liabilities and25
Other Accrued Liabilities and Other Non-current Liabilities (Tables) | 3 Months Ended |
Mar. 27, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Accrued Liabilities | A summary of other accrued liabilities follows (in thousands): March 27, 2018 January 2, 2018 Employee compensation and related items $ 10,544 $ 12,945 Accrued insurance 6,713 7,232 Accrued sales tax 3,749 3,987 Accrued advertising 2,402 728 Accrued real property tax 1,905 1,331 Restaurant closure liability 493 794 Other 7,141 8,240 $ 32,947 $ 35,257 |
Summary of Other Non-current Liabilities | A summary of other non-current liabilities follows (in thousands): March 27, 2018 January 2, 2018 Unfavorable lease liabilities $ 13,941 $ 14,469 Insurance reserves 6,866 5,965 Deferred rent liability 3,146 2,972 Deferred development and initial franchise fees 2,549 1,335 Restaurant closure liability 1,890 2,030 Unearned trade discount, non-current 1,057 1,149 Deferred gift card income 836 1,234 Other 2,277 2,277 $ 32,562 $ 31,431 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 27, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Outstanding and Unvested Restricted Stock Activity | A summary of outstanding and unvested restricted stock activity as of March 27, 2018 and changes during the period from January 2, 2018 through March 27, 2018 are as follows: Shares Weighted-Average Grant Date Fair Value Nonvested at January 2, 2018 1,088,910 $ 11.92 Granted 20,000 12.29 Vested (16,250 ) 12.26 Forfeited — — Nonvested at March 27, 2018 1,092,660 $ 11.93 |
Summary of Stock Options Activity | A summary of stock option activity as of March 27, 2018 and changes during the period from January 2, 2018 through March 27, 2018 are as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Options outstanding at January 2, 2018 417,000 $ 11.04 5.5 $ 641 Granted — — Exercised (4,750 ) 10.06 Forfeited/Expired (26,500 ) 11.25 Options outstanding at March 27, 2018 385,750 $ 11.04 5.2 $ 135 Options exercisable at March 27, 2018 115,498 $ 10.12 4.5 $ 37 Options exercisable and expected to vest at March 27, 2018 359,553 $ 10.98 5.2 $ 126 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 27, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income (Loss) Per Share Data | Below are basic and diluted net income per share for the periods indicated (amounts in thousands except share and per share data): 12 Weeks Ended March 27, 2018 March 28, 2017 Numerator: Net income $ 3,229 $ 4,238 Denominator: Weighted-average shares outstanding - basic 38,441,707 39,003,935 Dilutive effect of unvested restricted stock 306,583 454,810 Dilutive effect of stock options 21,454 23,190 Dilutive effect of warrants 454,326 893,126 Weighted-average shares outstanding - diluted 39,224,070 40,375,061 Net income per share - basic 0.08 $ 0.11 Net income per share - diluted 0.08 $ 0.10 Antidilutive stock options, unvested restricted stock awards and warrants excluded from the computations 128,048 36,500 |
Description of Business - Addit
Description of Business - Additional Information (Details) | Mar. 27, 2018staterestaurant | Mar. 28, 2017staterestaurant |
Franchisor Disclosure [Line Items] | ||
Number of states in which entity operates | state | 14 | 15 |
Entity Operated Units [Member] | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | 315 | 305 |
Franchised Units [Member] | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | 251 | 249 |
Franchised Units [Member] | GUAM | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | 1 | 1 |
Basis of Presentation and Sum29
Basis of Presentation and Summary of Significant Accounting Policies Revenue Recognition - Estimated Revenue Recognition (Details) $ in Thousands | 3 Months Ended |
Mar. 27, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-03-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 47 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 60 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 60 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 59 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 59 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 987 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Basis of Presentation and Sum30
Basis of Presentation and Summary of Significant Accounting Policies Revenue Recognition - Change in Contract Liabilities (Details) | 3 Months Ended |
Mar. 27, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability, Revenue Recognized | $ 13,000 |
Basis of Presentation and Sum31
Basis of Presentation and Summary of Significant Accounting Policies Revenue Recognition - Additional (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 27, 2018 | Mar. 28, 2017 | Jan. 03, 2018 | Jan. 02, 2018 | |
Document Fiscal Year Focus | 2,018 | |||
Document Period End Date | Mar. 27, 2018 | |||
Retained earnings | $ 69,419 | $ 66,897 | ||
Deferred income taxes | 68,644 | 68,574 | ||
Franchise advertising contributions | 2,936 | $ 0 | ||
Franchise advertising expenses | 2,936 | $ 0 | ||
Other non-current liabilities | 32,562 | $ 31,431 | ||
Accounting Standards Update 2014-09 | ||||
Retained earnings | $ 700 | |||
Deferred income taxes | 300 | |||
Other non-current liabilities | $ 1,000 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Retained earnings | 702 | |||
Deferred income taxes | 260 | |||
Franchise advertising contributions | 2,936 | |||
Franchise advertising expenses | 2,936 | |||
Other Franchise Revenue | 200 | |||
Other Franchise Expense | 200 | |||
Other non-current liabilities | $ (962) |
Basis of Presentation and Sum32
Basis of Presentation and Summary of Significant Accounting Policies Revenue Recognition - Effect Of Adoption (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 27, 2018 | Mar. 28, 2017 | Jan. 03, 2018 | Jan. 02, 2018 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Accounts payable | $ 16,040 | $ 18,759 | ||
Other accrued liabilities | 32,947 | 35,257 | ||
Current portion of capital lease obligations and deemed landlord financing liabilities | 1,309 | 1,415 | ||
Total current liabilities | 50,296 | 55,431 | ||
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net | 171,472 | 170,639 | ||
Deferred income taxes | 68,644 | 68,574 | ||
Other non-current liabilities | 32,562 | 31,431 | ||
Total liabilities | 322,974 | 326,075 | ||
Preferred stock | 0 | 0 | ||
Common stock | 4 | 4 | ||
Additional paid-in capital | 350,543 | 349,334 | ||
Accumulated other comprehensive income | 194 | 14 | ||
Retained earnings | 69,419 | 66,897 | ||
Total shareholders’ equity | 420,160 | 416,249 | ||
Total liabilities and shareholders’ equity | 743,134 | $ 742,324 | ||
Income Statement [Abstract] | ||||
Company restaurant sales | 105,109 | $ 101,222 | ||
Franchise revenue | 3,792 | 3,613 | ||
Franchise advertising contributions | (2,936) | 0 | ||
Franchise sublease income | 717 | 510 | ||
Total revenue | 112,554 | 105,345 | ||
Food and paper costs | 28,973 | 27,918 | ||
Labor and related expenses | 34,818 | 33,221 | ||
Occupancy and other operating expenses | 21,986 | 20,718 | ||
General and administrative | 10,429 | 9,305 | ||
Franchise advertising expenses | (2,936) | 0 | ||
Depreciation and amortization | 5,914 | 5,103 | ||
Occupancy and other - franchise subleases | 638 | 481 | ||
Pre-opening costs | 442 | 26 | ||
Restaurant closure charges, net | (13) | 9 | ||
Loss on disposal of assets, net | (93) | 49 | ||
Total operating expenses | 106,216 | 96,732 | ||
Income from operations | 6,338 | 8,613 | ||
Interest expense | 1,910 | 1,543 | ||
Total other expense | (1,910) | (1,543) | ||
Income from operations before provision for income taxes | 4,428 | 7,070 | ||
Provision for income taxes | 1,199 | 2,832 | ||
Net income | 3,229 | 4,238 | ||
Change in fair value of interest rate cap, net of tax | 174 | (88) | ||
Reclassification of interest rate cap amortization included in net income | 6 | 0 | ||
Total other comprehensive income | 180 | (88) | ||
Comprehensive income | $ 3,409 | $ 4,150 | ||
Basic (in dollars per share) | $ 0.08 | $ 0.11 | ||
Diluted (in dollars per share) | $ 0.08 | $ 0.10 | ||
Statement of Cash Flows [Abstract] | ||||
Net income | $ 3,229 | $ 4,238 | ||
Depreciation and amortization | 5,914 | 5,103 | ||
Amortization of favorable and unfavorable lease assets and liabilities, net | (118) | (147) | ||
Amortization of deferred financing costs and debt discount | 95 | 89 | ||
Stock-based compensation | 1,274 | 1,069 | ||
Deferred income taxes | 266 | 193 | ||
Loss on disposal of assets, net | (93) | 49 | ||
Restaurant closure charges | 33 | 43 | ||
Accounts and other receivables, net | (1,017) | (994) | ||
Inventories | 27 | (88) | ||
Prepaid expenses and other current assets | (3,568) | (1,914) | ||
Other assets | 16 | 18 | ||
Accounts payable | (2,609) | (402) | ||
Other accrued liabilities | (973) | (280) | ||
Other non-current liabilities | 654 | (207) | ||
Net cash provided by operating activities | 12,400 | $ 12,628 | ||
Accounting Standards Update 2014-09 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Deferred income taxes | $ 300 | |||
Other non-current liabilities | 1,000 | |||
Retained earnings | $ 700 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accounts payable | 0 | |||
Other accrued liabilities | 0 | |||
Current portion of capital lease obligations and deemed landlord financing liabilities | 0 | |||
Total current liabilities | 0 | |||
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net | 0 | |||
Deferred income taxes | 260 | |||
Other non-current liabilities | (962) | |||
Total liabilities | (702) | |||
Preferred stock | 0 | |||
Common stock | 0 | |||
Additional paid-in capital | 0 | |||
Accumulated other comprehensive income | 0 | |||
Retained earnings | 702 | |||
Total shareholders’ equity | 702 | |||
Total liabilities and shareholders’ equity | 0 | |||
Income Statement [Abstract] | ||||
Company restaurant sales | 0 | |||
Franchise revenue | (161) | |||
Franchise advertising contributions | (2,936) | |||
Franchise sublease income | 0 | |||
Total revenue | (3,097) | |||
Food and paper costs | 0 | |||
Labor and related expenses | 0 | |||
Occupancy and other operating expenses | 0 | |||
General and administrative | (153) | |||
Franchise advertising expenses | (2,936) | |||
Depreciation and amortization | 0 | |||
Occupancy and other - franchise subleases | 0 | |||
Pre-opening costs | 0 | |||
Restaurant closure charges, net | 0 | |||
Loss on disposal of assets, net | 0 | |||
Total operating expenses | (3,089) | |||
Income from operations | (8) | |||
Interest expense | 0 | |||
Total other expense | 0 | |||
Income from operations before provision for income taxes | (8) | |||
Provision for income taxes | (2) | |||
Net income | (6) | |||
Change in fair value of interest rate cap, net of tax | 0 | |||
Reclassification of interest rate cap amortization included in net income | 0 | |||
Total other comprehensive income | 0 | |||
Comprehensive income | $ (6) | |||
Basic (in dollars per share) | $ 0 | |||
Diluted (in dollars per share) | $ 0 | |||
Statement of Cash Flows [Abstract] | ||||
Net income | $ (6) | |||
Depreciation and amortization | 0 | |||
Amortization of favorable and unfavorable lease assets and liabilities, net | 0 | |||
Amortization of deferred financing costs and debt discount | 0 | |||
Stock-based compensation | 0 | |||
Deferred income taxes | (2) | |||
Loss on disposal of assets, net | 0 | |||
Restaurant closure charges | 0 | |||
Accounts and other receivables, net | 0 | |||
Inventories | 0 | |||
Prepaid expenses and other current assets | 0 | |||
Other assets | 0 | |||
Accounts payable | 0 | |||
Other accrued liabilities | 0 | |||
Other non-current liabilities | 8 | |||
Net cash provided by operating activities | 0 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Accounts payable | 16,040 | |||
Other accrued liabilities | 32,947 | |||
Current portion of capital lease obligations and deemed landlord financing liabilities | 1,309 | |||
Total current liabilities | 50,296 | |||
Long-term debt, capital lease obligations and deemed landlord financing liabilities, excluding current portion, net | 171,472 | |||
Deferred income taxes | 68,904 | |||
Other non-current liabilities | 31,600 | |||
Total liabilities | 322,272 | |||
Preferred stock | 0 | |||
Common stock | 4 | |||
Additional paid-in capital | 350,543 | |||
Accumulated other comprehensive income | 194 | |||
Retained earnings | 70,121 | |||
Total shareholders’ equity | 420,862 | |||
Total liabilities and shareholders’ equity | 743,134 | |||
Income Statement [Abstract] | ||||
Company restaurant sales | 105,109 | |||
Franchise revenue | 3,631 | |||
Franchise advertising contributions | 0 | |||
Franchise sublease income | 717 | |||
Total revenue | 109,457 | |||
Food and paper costs | 28,973 | |||
Labor and related expenses | 34,818 | |||
Occupancy and other operating expenses | 21,986 | |||
General and administrative | 10,276 | |||
Franchise advertising expenses | 0 | |||
Depreciation and amortization | 5,914 | |||
Occupancy and other - franchise subleases | 638 | |||
Pre-opening costs | 442 | |||
Restaurant closure charges, net | (13) | |||
Loss on disposal of assets, net | 93 | |||
Total operating expenses | 103,127 | |||
Income from operations | 6,330 | |||
Interest expense | 1,910 | |||
Total other expense | 1,910 | |||
Income from operations before provision for income taxes | 4,420 | |||
Provision for income taxes | 1,197 | |||
Net income | 3,223 | |||
Change in fair value of interest rate cap, net of tax | 174 | |||
Reclassification of interest rate cap amortization included in net income | 6 | |||
Total other comprehensive income | 180 | |||
Comprehensive income | $ 3,403 | |||
Basic (in dollars per share) | $ 0.08 | |||
Diluted (in dollars per share) | $ 0.08 | |||
Statement of Cash Flows [Abstract] | ||||
Net income | $ 3,223 | |||
Depreciation and amortization | 5,914 | |||
Amortization of favorable and unfavorable lease assets and liabilities, net | (118) | |||
Amortization of deferred financing costs and debt discount | 95 | |||
Stock-based compensation | 1,274 | |||
Deferred income taxes | 264 | |||
Loss on disposal of assets, net | 93 | |||
Restaurant closure charges | 33 | |||
Accounts and other receivables, net | 1,017 | |||
Inventories | (27) | |||
Prepaid expenses and other current assets | 3,568 | |||
Other assets | (16) | |||
Accounts payable | (2,609) | |||
Other accrued liabilities | (973) | |||
Other non-current liabilities | 662 | |||
Net cash provided by operating activities | $ 12,400 |
Restaurant Closure Charges, N33
Restaurant Closure Charges, Net - Additional Information (Details) $ in Thousands | 3 Months Ended | 4 Months Ended | ||
Mar. 27, 2018USD ($) | Mar. 28, 2017USD ($) | Dec. 29, 2015location | Jan. 02, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring closure liability | $ 2,400 | $ 2,800 | ||
Current portion of restaurant closure liability | 493 | 794 | ||
Non-current portion of restaurant closure liability | 1,890 | 2,030 | ||
Charges for accretion in current period | 33 | $ 43 | ||
Closure of 12 Underperforming Restaurants [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Current portion of restaurant closure liability | 300 | 300 | ||
Non-current portion of restaurant closure liability | 1,200 | 1,300 | ||
Number of underperforming locations | location | 12 | |||
Operating Leases, Rent Expense, Sublease Rentals | 0 | |||
Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring closure liability | 896 | 1,213 | ||
Current portion of restaurant closure liability | 200 | |||
Non-current portion of restaurant closure liability | 700 | $ 700 | ||
Charges for accretion in current period | $ 17 |
Restaurant Closure Charges, N34
Restaurant Closure Charges, Net - Restaurant Closure Liability Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2018 | Mar. 28, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Closure liability, Beginning balance | $ 2,800 | |
Charges for accretion in current period | 33 | $ 43 |
Closure liability, Ending balance | 2,400 | |
Facility Closing [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Closure liability, Beginning balance | 1,213 | |
Charges for accretion in current period | 17 | |
Cash payments | (334) | |
Closure liability, Ending balance | 896 | |
Closure of 12 Underperforming Restaurants [Member] | Total | ||
Restructuring Reserve [Roll Forward] | ||
Closure liability, Beginning balance | 1,611 | |
Charges for accretion in current period | 16 | |
Cash payments | (141) | |
Closure liability, Ending balance | $ 1,486 |
Goodwill and other Intangible35
Goodwill and other Intangible Assets - Schedule of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 27, 2018 | Jan. 02, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 29,153 | $ 29,271 |
Accumulated Amortization | (8,442) | (7,773) |
Net | 20,711 | 21,498 |
Favorable Lease Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,707 | 13,744 |
Accumulated Amortization | (4,814) | (4,442) |
Net | 8,893 | 9,302 |
Franchise rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,203 | 15,284 |
Accumulated Amortization | (3,569) | (3,282) |
Net | 11,634 | 12,002 |
Other Finite Lived Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 243 | 243 |
Accumulated Amortization | (59) | (49) |
Net | $ 184 | $ 194 |
Goodwill and other Intangible36
Goodwill and other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 27, 2018 | Jan. 02, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 320,638,000 | $ 320,638,000 |
Favorable lease assets write-off | 37,000 | |
Franchise rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Favorable lease assets write-off | $ 100,000 |
Debt, Obligations Under Capit37
Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities - Schedule of Debt (Detail) - USD ($) $ in Thousands | Mar. 27, 2018 | Jan. 02, 2018 |
Debt Instrument [Line Items] | ||
Total outstanding indebtedness | $ 153,090 | $ 152,001 |
Obligations under capital leases and deemed landlord financing liabilities | 19,691 | 20,053 |
Total debt | 172,781 | 172,054 |
Less: amounts due within one year | 1,309 | 1,415 |
Total amounts due after one year, net | 171,472 | 170,639 |
2015 Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit Facility | 153,090 | 152,001 |
Debt discount | 680 | 747 |
Deferred finance costs | $ 230 | $ 252 |
Debt, Obligations Under Capit38
Debt, Obligations Under Capital Leases and Deemed Landlord Financing Liabilities - Additional Information (Detail) - 2015 Revolving Credit Facility [Member] - USD ($) | Aug. 04, 2015 | Mar. 27, 2018 |
Debt Instrument [Line Items] | ||
Credit agreement issuance date | Aug. 4, 2015 | |
Credit agreement maturity date | Aug. 4, 2020 | |
Credit facility amount | $ 250,000,000 | |
Letters of credit | $ 18,200,000 | |
Interest rate on outstanding balance of credit facility (percent) | 3.40% | |
Availability for additional borrowings under credit facility | $ 77,800,000 | |
Credit facility outstanding borrowings | $ 154,000,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) | 3 Months Ended |
Mar. 27, 2018USD ($) | |
Derivative [Line Items] | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 6,000 |
Interest Rate Cap [Member] | Cash Flow Hedging [Member] | |
Derivative [Line Items] | |
Notional amount | $ 70,000,000 |
Cap interest rate | 2.00% |
Amount expected to be reclassified into earnings over the remaining term of the agreement | $ 300,000 |
Amount expected to be reclassified into interest expense over the next 12 months | $ 100,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 27, 2018 | Jan. 02, 2018 |
Interest Rate Cap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of interest rate cap | $ 600,000 | $ 300,000 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurement Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 27, 2018 | Jan. 02, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | $ 572 | $ 332 |
Total assets measured at fair value | 572 | 332 |
Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 572 | 332 |
Total assets measured at fair value | 572 | 332 |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap | 0 | 0 |
Total assets measured at fair value | $ 0 | $ 0 |
Other Accrued Liabilities and42
Other Accrued Liabilities and Other Non-current Liabilities - Summary of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 27, 2018 | Jan. 02, 2018 |
Accrued Liabilities Current [Line Items] | ||
Employee compensation and related items | $ 10,544 | $ 12,945 |
Accrued insurance | 6,713 | 7,232 |
Accrued sales tax | 3,749 | 3,987 |
Accrued advertising | 2,402 | 728 |
Accrued real property tax | 1,905 | 1,331 |
Restaurant closure liability | 493 | 794 |
Other | 7,141 | 8,240 |
Other accrued liabilities | $ 32,947 | $ 35,257 |
Other Accrued Liabilities and43
Other Accrued Liabilities and Other Non-current Liabilities - Summary of Other Non-current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 27, 2018 | Jan. 02, 2018 |
Other Non Current Liabilities [Line Items] | ||
Unfavorable lease liabilities | $ 13,941 | $ 14,469 |
Insurance reserves | 6,866 | 5,965 |
Deferred rent liability | 3,146 | 2,972 |
Restaurant closure liability | 1,890 | 2,030 |
Deferred development and initial franchise fees | 2,549 | 1,335 |
Unearned trade discount, non-current | 1,057 | 1,149 |
Deferred gift card income | 836 | 1,234 |
Other | 2,277 | 2,277 |
Other non-current liabilities | $ 32,562 | $ 31,431 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2018 | Mar. 28, 2017 | Jan. 02, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Document Period End Date | Mar. 27, 2018 | ||
Payments related to employee tax withholding obligations | $ 79 | $ 59 | |
Number of awards outstanding (in shares) | 1,092,660 | 1,088,910 | |
Number of stock options outstanding (in shares) | 385,750 | 417,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 20,000 | ||
2015 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved and authorized for issuance (in shares) | 3,300,000 | ||
Common stock authorized and available for grant (in shares) | 1,374,844 | ||
Stock-based compensation expense recorded | $ 1,300 | 1,100 | |
Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, net | $ 7,800 | ||
Weighted average period of recognition (in years) | 2 years 3 months 15 days | ||
Payments related to employee tax withholding obligations | $ 100 | $ 100 | |
Shares paid for tax withholding for share based compensation | 9,892 | 4,686 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock compensation expense | $ 700 | ||
Vesting period (in years) | 2 years 4 months 10 days |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Outstanding and Unvested Restricted Stock Activity (Details) | 3 Months Ended |
Mar. 27, 2018$ / sharesshares | |
Shares | |
Nonvested Shares, Beginning balance (in shares) | shares | 1,088,910 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 20,000 |
Vested (in shares) | shares | (16,250) |
Forfeited (in shares) | shares | 0 |
Nonvested Shares, Ending balance (in shares) | shares | 1,092,660 |
Weighted-Average Grant Date Fair Value | |
Weighted-Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 11.92 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 12.29 |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 12.26 |
Weighted-Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | $ 11.93 |
Document Period End Date | Mar. 27, 2018 |
Stock-Based Compensation - Su46
Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 27, 2018 | Jan. 02, 2018 | |
Shares | ||
Options outstanding, Beginning balance (in shares) | 417,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (4,750) | |
Forfeited (in shares) | (26,500) | |
Options outstanding, Ending balance (in shares) | 385,750 | 417,000 |
Options exercisable (in shares) | 115,498 | |
Options exercisable and expected to vest (in shares) | 359,553 | |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Options outstanding, Beginning balance (in dollars per share) | $ 11.04 | |
Weighted Average Exercise Price, Granted (in dollars per share) | 0 | |
Weighted Average Exercise Price, Exercised (in dollars per share) | 10.06 | |
Weighted Average Exercise Price, Forfeited (in dollars per share) | 11.25 | |
Weighted Average Exercise Price, Options outstanding, Ending balance (in dollars per share) | 11.04 | $ 11.04 |
Weighted Average Exercise Price, Options exercisable (in dollars per share) | 10.12 | |
Weighted Average Exercise Price, Options exercisable and expected (in dollars per share) | $ 10.98 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Contractual Term, Options outstanding (in years) | 5 years 2 months 9 days | 5 years 6 months |
Weighted Average Remaining Contractual Term, Options exercisable (in years) | 4 years 6 months | |
Weighted Average Remaining Contractual Term, Options exercisable and expected to vest (in years) | 5 years 2 months 12 days | |
Aggregate Intrinsic Value, Options outstanding, Beginning balance | $ 641 | |
Aggregate Intrinsic Value, Options outstanding, Ending balance | 135 | $ 641 |
Aggregate Intrinsic Value, Options exercisable | 37 | |
Aggregate Intrinsic Value, Options excersiable and expected to vest | $ 126 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 27, 2018 | Aug. 23, 2016 | Feb. 26, 2016 | |
Common Stock and Warrants [Member] | |||
Class of Stock [Line Items] | |||
Maximum authorized stock repurchase amount (up to) | $ 50,000,000 | $ 25,000,000 | $ 25,000,000 |
Remaining authorized stock repurchase amount | $ 20,900,000 | ||
Warrants [Member] | |||
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 9,811 | ||
Average price per share | $ 3.37 | ||
Shares repurchased, value | $ 33,000 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Basic and Diluted Net Income per Share Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 27, 2018 | Mar. 28, 2017 | |
Numerator: | ||
Net income | $ 3,229 | $ 4,238 |
Denominator: | ||
Weighted-average shares outstanding - basic (in shares) | 38,441,707 | 39,003,935 |
Weighted-average shares outstanding - diluted | 39,224,070 | 40,375,061 |
Net (loss) income per share - basic (in dollars per share) | $ 0.08 | $ 0.11 |
Net (loss) income per share - diluted (in dollars per share) | $ 0.08 | $ 0.10 |
Antidilutive stock options, unvested restricted stock awards, unvested RSUs and warrants excluded from the computations (in dollars per share) | 128,048 | 36,500 |
Restricted Stock and RSUs [Member] | ||
Denominator: | ||
Dilutive effect (in shares) | 306,583 | 454,810 |
Stock Options [Member] | ||
Denominator: | ||
Dilutive effect (in shares) | 21,454 | 23,190 |
Warrants [Member] | ||
Denominator: | ||
Dilutive effect (in shares) | 454,326 | 893,126 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2018 | Mar. 28, 2017 | Jan. 02, 2018 | |
Income Tax Disclosure [Line Items] | |||
Effective income tax rates (percent) | 27.10% | (40.10%) | |
Provision for income taxes | $ 1,199 | $ 2,832 | |
Valuation allowance | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 27, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Purchasing commitments contract extended terms | 2,021 |
Contractual purchase obligations for goods and services | $ 67.5 |