Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 29, 2016 | Jul. 25, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 29, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | LOCO | |
Entity Registrant Name | El Pollo Loco Holdings, Inc. | |
Entity Central Index Key | 1,606,366 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,419,933 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 29, 2016 | Dec. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 9,496 | $ 6,101 |
Restricted cash | 125 | 125 |
Accounts and other receivables, net | 6,682 | 6,186 |
Inventories | 1,751 | 1,899 |
Prepaid expenses and other current assets | 5,357 | 2,656 |
Deferred tax assets | 12,940 | 21,656 |
Total current assets | 36,351 | 38,623 |
Property and equipment owned, net | 110,970 | 102,421 |
Property held under capital leases, net | 76 | 89 |
Goodwill | 248,674 | 248,674 |
Trademarks | 61,888 | 61,888 |
Other intangible assets, net | 535 | 638 |
Deferred tax assets | 6,891 | 6,891 |
Other assets | 1,633 | 1,804 |
Total assets | 467,018 | 461,028 |
Current liabilities: | ||
Current portion of obligations under capital leases | 172 | 177 |
Accounts payable | 9,050 | 11,046 |
Accrued salaries and vacation | 7,048 | 6,693 |
Accrued insurance | 4,973 | 5,021 |
Accrued income taxes payable | 28 | 67 |
Accrued interest | 230 | 245 |
Accrued advertising | 204 | |
Other accrued expenses and current liabilities | 13,098 | 16,126 |
Total current liabilities | 34,599 | 39,579 |
Revolver loan | 116,500 | 123,000 |
Obligations under capital leases, net of current portion | 378 | 461 |
Deferred taxes, net of current portion | 8,740 | 8,740 |
Other intangible liabilities, net | 1,125 | 1,248 |
Other noncurrent liabilities | 47,375 | 43,367 |
Total liabilities | 208,717 | 216,395 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized; none issued or outstanding | ||
Common stock, $0.01 par value—200,000,000 shares authorized; 38,419,933 and 38,284,435 shares issued and outstanding | 384 | 383 |
Additional paid-in-capital | 370,592 | 369,635 |
Accumulated deficit | (112,675) | (125,385) |
Total stockholders' equity | 258,301 | 244,633 |
Total liabilities and stockholder’s equity | $ 467,018 | $ 461,028 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 29, 2016 | Dec. 30, 2015 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 38,419,933 | 38,284,435 |
Common stock, shares outstanding | 38,419,933 | 38,284,435 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2016 | Jul. 01, 2015 | Jun. 29, 2016 | Jul. 01, 2015 | |
Revenue | ||||
Company-operated restaurant revenue | $ 90,877 | $ 83,575 | $ 179,246 | $ 168,308 |
Franchise revenue | 6,597 | 5,879 | 12,582 | 11,572 |
Total revenue | 97,474 | 89,454 | 191,828 | 179,880 |
Cost of operations | ||||
Food and paper cost | 27,032 | 27,055 | 53,800 | 54,178 |
Labor and related expenses | 24,361 | 21,089 | 48,868 | 42,671 |
Occupancy and other operating expenses | 19,496 | 17,388 | 38,330 | 34,524 |
Company restaurant expenses | 70,889 | 65,532 | 140,998 | 131,373 |
General and administrative expenses | 8,287 | 6,405 | 17,524 | 13,890 |
Franchise expenses | 1,239 | 840 | 2,163 | 1,695 |
Depreciation and amortization | 3,964 | 3,200 | 7,722 | 6,346 |
Loss on disposal of assets | 267 | 85 | 466 | 166 |
Expenses related to fire loss | 48 | |||
Gain on recovery of insurance proceeds | (600) | (889) | ||
Asset impairment and closed-store reserves | 60 | (190) | 134 | (139) |
Total expenses | 84,106 | 75,872 | 168,166 | 153,331 |
Gain on disposition of restaurants | 33 | 33 | ||
Income from operations | 13,401 | 13,582 | 23,695 | 26,549 |
Interest expense-net of interest income | 830 | 1,014 | 1,656 | 2,225 |
Expenses related to selling shareholders | 50 | 50 | ||
Income tax receivable agreement (income) expense | (35) | 226 | 229 | 477 |
Income before provision for income taxes | 12,606 | 12,292 | 21,810 | 23,797 |
Provision for income taxes | 5,339 | 5,062 | 9,100 | 9,776 |
Net income | $ 7,267 | $ 7,230 | $ 12,710 | $ 14,021 |
Net income per share | ||||
Basic | $ 0.19 | $ 0.19 | $ 0.33 | $ 0.37 |
Diluted | $ 0.19 | $ 0.18 | $ 0.33 | $ 0.36 |
Weighted-average shares used in computing net income per share | ||||
Basic | 38,294,575 | 37,812,767 | 38,289,505 | 37,618,756 |
Diluted | 38,962,802 | 39,085,206 | 38,981,610 | 39,002,974 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2016 | Jul. 01, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 12,710 | $ 14,021 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||
Depreciation and amortization | 7,722 | 6,346 |
Stock-based compensation expense | 139 | 443 |
Gain on recovery of insurance proceeds | (889) | |
Income tax receivable agreement expense | 229 | 477 |
Gain on sale of restaurant | (33) | |
Loss on disposal of assets | 466 | 166 |
Fire insurance proceeds for expenses paid | 8 | |
Impairment of property and equipment | 56 | 13 |
Closed-store reserve | 78 | (152) |
Amortization of deferred financing costs | 152 | 152 |
Amortization of favorable and unfavorable leases, net | (20) | (93) |
Excess income tax benefit related to share-based compensation plans | (253) | |
Deferred income taxes, net | 8,716 | 9,775 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables, net | (607) | 24 |
Inventories | 140 | 225 |
Prepaid expenses and other current assets | (2,701) | 312 |
Income taxes payable | 214 | (30) |
Other assets | 19 | 84 |
Accounts payable | (5,889) | 257 |
Accrued salaries and vacation | 355 | (1,814) |
Accrued insurance | (48) | 757 |
Other accrued expenses and liabilities | 454 | (1,146) |
Net cash flows provided by operating activities | 21,018 | 29,817 |
Cash flows from investing activities: | ||
Proceeds from sale of restaurant | 1,465 | |
Proceeds from asset disposition | 992 | |
Purchase of property and equipment | (14,311) | (8,869) |
Net cash flows used in investing activities | (11,854) | (8,869) |
Cash flows from financing activities: | ||
Payments on revolver loan | (6,500) | (30,000) |
Proceeds from issuance of common stock, net of expenses | 566 | 4,069 |
Payment of obligations under capital leases | (88) | (102) |
Excess income tax benefit related to share-based compensation plans | 253 | |
Net cash flows used in financing activities | (5,769) | (26,033) |
Increase (Decrease) in cash and cash equivalents | 3,395 | (5,085) |
Cash and cash equivalents, beginning of period | 6,101 | 11,499 |
Cash and cash equivalents, end of period | 9,496 | 6,414 |
Supplemental cash flow information | ||
Cash paid during the period for interest | 1,567 | 1,923 |
Cash paid during the period for income taxes, net | 170 | 30 |
Unpaid purchases of property and equipment | $ 3,881 | 1,371 |
Cashless stock option exercise | $ (34) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 29, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview El Pollo Loco Holdings, Inc. (“Holdings”) is a Delaware corporation headquartered in Costa Mesa, California. Holdings and its direct and indirect subsidiaries are collectively known as “we,” “us” or the “Company.” Our activities are conducted principally through our indirect wholly-owned subsidiary, El Pollo Loco, Inc. (“EPL”), which develops, franchises, licenses, and operates quick-service restaurants under the name El Pollo Loco® and operates under one operating segment. At June 29, 2016, we operated 188 and franchised 251 El Pollo Loco restaurants. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations and cash flows for the periods presented. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP for annual reports. This quarterly report should be read in conjunction with the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 30, 2015. The Company uses a 52- or 53-week fiscal year ending on the last Wednesday of the calendar year. In a 52-week fiscal year, each quarter includes 13 weeks of operations; in a 53-week fiscal year, the first, second and third quarters each include 13 weeks of operations and the fourth quarter includes 14 weeks of operations. Every six or seven years a 53-week fiscal year occurs. Fiscal 2015 and 2016 are both 52-week years, ending on December 30, 2015, and December 28, 2016, respectively. Revenues, expenses, and other financial and operational figures may be elevated in a 53-week year. Holdings has no material assets or operations. Holdings and Holdings’ direct subsidiary, EPL Intermediate, Inc. (“Intermediate”), guarantee EPL’s 2014 Revolver (see Note 4) on a full and unconditional basis and Intermediate has no subsidiaries other than EPL. EPL is a separate and distinct legal entity, and has no obligation to make funds available to Intermediate. EPL and Intermediate may pay dividends to Intermediate and to Holdings, respectively. Under the 2014 Revolver, Holdings may not make certain payments such as cash dividends, except that it may, inter alia, (i) pay up to $1 million per year to repurchase or redeem qualified equity interests of Holdings held by past or present officers, directors, or employees (or their estates) of the Company upon death, disability, or termination of employment, (ii) pay under its income tax receivable agreement (the “TRA”), and, (iii) so long as no default or event of default has occurred and is continuing, (a) make non-cash repurchases of equity interests in connection with the exercise of stock options by directors and officers, provided that those equity interests represent a portion of the consideration of the exercise price of those stock options, (b) pay up to $2.5 million per year pursuant to stock option plans, employment agreements, or incentive plans, (c) make up to $5 million in other restricted payments per year, and (d) make other restricted payments, provided that such payments would not cause, in each case, on a pro forma basis, (x) its lease-adjusted consolidated leverage ratio to equal or exceed 4.25 times and (y) its consolidated fixed charge coverage ratio to be less than 1.75 times. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Holdings and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and revenue and expenses during the period reported. Actual results could materially differ from those estimates. The Company’s significant estimates include estimates for impairment of goodwill, intangible assets and property and equipment, insurance reserves, lease termination liabilities, closed store reserves, stock-based compensation, income tax receivable agreement liability, and income tax valuation allowances. Cash and Cash Equivalents The Company considers all highly-liquid instruments with a maturity of three months or less at the date of purchase to be cash equivalents. Restricted Cash The Company’s restricted cash represents cash collateral to one commercial bank for Company credit cards. Liquidity The Company’s principal liquidity requirements are to service our debt and to meet capital expenditure needs. At June 29, 2016, the Company’s total debt (including capital lease liabilities) was $117.1 million. The Company’s ability to make payments on its indebtedness and to fund planned capital expenditures depends on available cash and on its ability to generate adequate cash flows in the future, which, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond the Company’s control. Based on current operations, the Company believes that its cash flow from operations, available cash of $9.5 million at June 29, 2016, and available borrowings under the 2014 Revolver (which availability was approximately $76.3 million at June 29, 2016) will be adequate to meet the Company’s liquidity needs for the next 12 months. Gain on recovery of insurance proceeds In November 2015, one of the Company’s restaurants incurred damage resulting from a fire. During the twenty-six weeks ended June 29, 2016, we incurred costs directly related to the fire of $48,000, disposed of an additional $87,000 of assets and recognized a gain of $889,000 resulting from the receipt from the insurance company of $1,000,000 in cash. In 2015, the Company disposed of $111,000 of assets related to the fire. The restaurant was reopened for business on March 14, 2016. Recent Accounting Pronouncements In May 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients. This ASU is intended to clarify two aspects of Topic 606: first, assessing the collectability criterion, options for the presentation of sales and similar taxes, noncash consideration, transition contract modifications, transition contract completion and secondly, technical corrections. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and early application is permitted, but no earlier than fiscal years beginning after December 16, 2016. The Company is currently assessing the impact of this ASU on our consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing. This ASU is intended to clarify two aspects of Topic 606: identifying performance obligations and licensing implementation guidance. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and early application is permitted, but no earlier than fiscal years beginning after December 16, 2016. The Company is currently assessing the impact of this ASU on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods therein (our fiscal year 2017). Early application is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases.” The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of the pending adoption of the new standard on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for the Company's fiscal year beginning December 28, 2017 and interim periods within that fiscal year. The impact of this expected adoption of ASU 2016-01 is being evaluated by the Company. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes” which requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. Prior to the issuance of the standard, deferred tax liabilities and assets were required to be separately classified into a current amount and a noncurrent amount in the balance sheet. The new accounting guidance represents a change in accounting principle and the standard is required to be adopted in annual periods beginning after December 15, 2016. After the adoption of this ASU all deferred tax assets and liabilities will be classified as noncurrent on the consolidated balance sheet. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330).” The pronouncement was issued to simplify the measurement of inventory and changes the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for reporting periods beginning after December 15, 2016. The adoption of ASU 2015-11 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (ASU 2014-09)”, which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The revised revenue standard is effective for public entities for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of the Company’s pending adoption of ASU 2014-09 on the Company’s financial statements and has not yet determined the method by which it will adopt the standard in fiscal 2018. In August 2014, the FASB issued ASU No. 2014-15, Going Concern (“ASU 2014-15”). ASU 2014-15 provides GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The standard will be effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. Upon adoption, the Company will use the guidance in ASU 2014-15 to assess going concern. Subsequent Events Subsequent to June 29, 2016, the Company opened one new restaurant and made a $3.0 million pre-payment on the 2014 Revolver. The Company evaluated subsequent events that have occurred after June 29, 2016, and determined that there were no other events or transactions occurring during this reporting period that require recognition or disclosure in the condensed consolidated financial statements. Concentration of Risk Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally-insured limits. The Company has never experienced any losses related to these balances. The Company had no suppliers for which amounts due at June 29, 2016 totaled greater than 10% of the Company’s accounts payable. As of December 30, 2015, the Company had two different suppliers for which amounts totaled 12% and 11% of the Company’s accounts payable. Purchases from the Company’s largest supplier totaled 34% for the thirteen weeks ended June 29, 2016, and 37% for the thirteen weeks ended July 1, 2015, of the Company’s purchases. Purchases from the Company’s largest supplier totaled 34% for the twenty-six weeks ended June 29, 2016, and 37% for the twenty-six weeks ended July 1, 2015, of the Company’s purchases. Company-operated and franchised restaurants in the greater Los Angeles area generated, in the aggregate, approximately 75% and 79% of total revenue for both the thirteen and twenty-six weeks ended June 29, 2016 and July 1, 2015, respectively. Goodwill and Indefinite Lived Intangible Assets The Company’s indefinite lived intangible assets consist of trademarks. Goodwill represents the excess of cost over fair value of net identified assets acquired in business combinations accounted for under the purchase method. The Company does not amortize its goodwill and indefinite lived intangible assets. Goodwill resulted from historical acquisitions. Upon the sale of a restaurant, the Company evaluates whether there is a decrement of goodwill. The amount of goodwill included in the cost basis of the asset sold is determined based on the relative fair value of the portion of the reporting unit disposed of compared to the fair value of the reporting unit retained. The Company performs annual impairment tests for goodwill during the fourth fiscal quarter of each year, or more frequently if impairment indicators arise. The Company reviews goodwill for impairment utilizing either a qualitative assessment or a two-step process. If the Company decides that it is appropriate to perform a qualitative assessment and concludes that the fair value of a reporting unit more likely than not exceeds its carrying value, no further evaluation is necessary. If the Company performs the two-step process, the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step is performed to measure the amount of impairment by comparing the carrying amount of the goodwill to a determination of the implied value of the goodwill. If the carrying amount of goodwill is greater than the implied value, an impairment charge is recognized for the difference. The Company performs annual impairment tests for indefinite lived intangible assets during the fourth fiscal quarter of each year, or more frequently if impairment indicators arise. An impairment test consists of either a qualitative assessment or a comparison of the fair value of an intangible asset with its carrying amount. The excess of the carrying amount of an intangible asset over its fair value is its impairment loss. The assumptions used in the estimate of fair value are generally consistent with the past performance of the Company’s reporting segment and are also consistent with the projections and assumptions that are used in current operating plans. These assumptions are subject to change as a result of changing economic and competitive conditions. The Company did not identify any indicators of potential impairment during the thirteen and twenty-six weeks ended June 29, 2016, and therefore did not perform any impairment review, nor did the Company record any impairment. Income Taxes The provision for income taxes, income taxes payable and deferred income taxes is determined using the asset and liability method. Deferred tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. On a periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered. If, after evaluating all of the positive and negative evidence, a conclusion is made that it is more likely than not that some portion or all of the net deferred tax assets will not be recovered, a valuation allowance is provided by charging to tax expense to reserve the portion of deferred tax assets which are not expect to be realized. The Company reviews its filing positions for all open tax years in all U.S. federal and state jurisdictions where the Company is required to file. When there are uncertainties related to potential income tax benefits, in order to qualify for recognition, the position the Company takes has to have at least a “more likely than not” chance of being sustained (based on the position’s technical merits) upon challenge by the respective authorities. The term “more likely than not” means a likelihood of more than 50 percent. Otherwise, the Company may not recognize any of the potential tax benefit associated with the position. The Company recognizes a benefit for a tax position that meets the “more likely than not” criterion at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon its effective resolution. Unrecognized tax benefits involve management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments to recorded amounts and may affect our results of operations, financial position, and cash flows. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties at June 29, 2016, or at December 30, 2015, and did not recognize interest or penalties during the thirteen or twenty-six weeks ended June 29, 2016, or July 1, 2015, since there were no material unrecognized tax benefits. Management believes no material changes to the amount of unrecognized tax benefits will occur within the next twelve months. On July 30, 2014, the Company entered into the TRA. The TRA calls for the Company to pay to its pre-IPO stockholders 85% of the savings in cash that the Company realizes in its taxes as a result of utilizing its net operating losses and other tax attributes attributable to preceding periods. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 29, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 2. PROPERTY AND EQUIPMENT The costs and related accumulated depreciation and amortization of major classes of property are as follows (in thousands): June 29, 2016 December 30, 2015 Land $ 12,323 $ 12,323 Buildings and improvements 116,172 111,349 Other property and equipment 62,152 58,525 Construction in progress 10,627 4,717 201,274 186,914 Less: accumulated depreciation and amortization (90,304 ) (84,493 ) $ 110,970 $ 102,421 Depreciation expense was $4.0 million and $3.2 million for the thirteen weeks ended June 29, 2016, and July 1, 2015, respectively, and $7.7 million and $6.3 million for the twenty-six weeks ended June 29, 2016 and July 1, 2015, respectively. The gross value of assets under capital leases for buildings and improvements was $1.6 million at June 29, 2016 and December 30, 2015. Accumulated depreciation for assets under capital leases was $1.5 million as of June 29, 2016 and December 30, 2015. For the thirteen weeks ended June 29, 2016, capital expenditures totaled $8.4 million, including $0.1million for restaurant remodeling and $6.3 million for new restaurant expenditures. For the twenty-six weeks ended June 29, 2016, capital expenditures totaled $14.3 million, including $1.6 million for restaurant remodeling and $9.2 million for new restaurant expenditures. Capital expenditures for the quarter and year-to-date periods exclude unpaid purchases of property and equipment. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 29, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 3. STOCK-BASED COMPENSATION At June 29, 2016, options to purchase 2,196,859 shares of common stock were outstanding, including 1,626,399 vested and 570,460 unvested. Unvested options vest over time, or upon our achieving annual financial goals. However, upon a change in control, the board may accelerate vesting. At June 29, 2016, 1,611,718 premium options remained outstanding. For the thirteen and twenty-six weeks ended June 29, 2016, there were exercises of stock options for 115,340 shares. For the thirteen and twenty-six weeks ended July 1, 2015, there were exercises of stock options for 825,187 and 844,907 shares, respectively. For the thirteen and twenty-six weeks ended June 29, 2016, 319,798 options were granted at the fair market value on the date of grant. No options were granted in the thirteen and twenty-six weeks ended July 1, 2015. At June 29, 2016, there were 20,158 unvested restricted shares outstanding. Restricted shares vest over time. At June 29, 2016, we had total unrecognized compensation expense of $1.7 million, related to unvested stock options and restricted shares, which we expect to recognize over a weighted-average period of 3.2 years. Total stock-based compensation expense was $128,000 and $139,000 for the thirteen and twenty-six weeks ended June 29, 2016 and $146,000 and $443,000 for the thirteen and twenty-six weeks ended July 1, 2015, respectively. |
Credit Agreements
Credit Agreements | 6 Months Ended |
Jun. 29, 2016 | |
Debt Disclosure [Abstract] | |
Credit Agreements | 4. CREDIT AGREEMENTS On December 11, 2014, the Company refinanced its debt, with EPL, Intermediate, and Holdings entering into a credit agreement with Bank of America, N.A., as administrative agent, swingline lender, and letter of credit issuer, the lenders party thereto, and the other parties thereto, which provides for a $200 million five-year senior secured revolving facility (the “2014 Revolver”). The 2014 Revolver includes a sub limit of $15 million for letters of credit and a sub limit of $15 million for swingline loans. At June 29, 2016, $7.2 million of letters of credit were outstanding and $76.3 million was available to borrow under the revolving line of credit. The 2014 Revolver will mature on or about December 11, 2019. Borrowings under the 2014 Revolver (other than any swingline loans) bear interest, at the borrower’s option, at rates based upon either LIBOR or a base rate, plus, for each rate, a margin determined in accordance with a lease-adjusted consolidated leverage ratio-based pricing grid. The base rate is calculated as the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate of Bank of America, or (c) LIBOR plus 1.00%. For LIBOR loans, the margin is in the range of 1.75% to 2.50%, and for base rate loans the margin is in the range of 0.75% to 1.50%. The margin was initially set at 2.00% for LIBOR loans and at 1.00% for base rate loans until the delivery of financial statements and a compliance certificate for the first quarter of 2015. The 2014 Revolver includes a number of negative and financial covenants, including, among others, the following (all subject to certain exceptions): a maximum lease-adjusted consolidated leverage ratio covenant, a minimum consolidated fixed charge coverage ratio, and limitations on indebtedness, liens, investments, asset sales, mergers, consolidations, liquidations, dissolutions, restricted payments, and negative pledges. The 2014 Revolver also includes certain customary affirmative covenants and events of default. The Company was in compliance with all such covenants at June 29, 2016. See Note 1 for restrictions on the payment of dividends under the 2014 Revolver. Maturities There are no required principal payments prior to maturity for the 2014 Revolver. During the twenty-six weeks ended June 29, 2016, the Company elected to pay down $6.5 million of outstanding borrowing on our 2014 Revolver, primarily from our cash flow from operations. |
Other Accrued Expenses and Curr
Other Accrued Expenses and Current Liabilities | 6 Months Ended |
Jun. 29, 2016 | |
Payables And Accruals [Abstract] | |
Other Accrued Expenses and Current Liabilities | 5. OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES Other accrued expenses and current liabilities consist of the following (in thousands): June 29, 2016 December 30, 2015 Accrued sales and property taxes $ 3,364 $ 3,480 Income tax receivable agreement payable 4,197 7,609 Gift card liability 1,525 1,810 Other 4,012 3,227 Total other accrued expenses and current liabilities $ 13,098 $ 16,126 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 6 Months Ended |
Jun. 29, 2016 | |
Payables And Accruals [Abstract] | |
Other Noncurrent Liabilities | 6. OTHER NONCURRENT LIABILITIES Other noncurrent liabilities consist of the following (in thousands): June 29, 2016 December 30, 2015 Deferred rent $ 7,186 $ 6,611 Income tax receivable agreement payable 37,571 33,930 Other 2,618 2,826 Total other noncurrent liabilities $ 47,375 $ 43,367 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Legal Matters On or about February 24, 2014, a former employee filed a class action in the Superior Court of the State of California, County of Orange, against EPL on behalf of all putative class members (all hourly employees from 2010 to the present) alleging certain violations of California labor laws, including failure to pay overtime compensation, failure to provide meal periods and rest breaks, and failure to provide itemized wage statements. The putative lead plaintiff’s requested remedies include compensatory and punitive damages, injunctive relief, disgorgement of profits, and reasonable attorneys’ fees and costs. No specific amount of damages sought was specified in the complaint. The parties have executed a Stipulation of Class Settlement and Release which will be submitted for court approval. Purported class actions alleging wage and hour violations are commonly filed against California employers, and we fully expect to have to defend against similar lawsuits in the future. Daniel Turocy, et al. v. El Pollo Loco Holdings, Inc., et al. Ron Huston, et al. v. El Pollo Loco Holdings, Inc., et al. In addition, on September 16, 2015, Holdings and certain of its officers and directors received an informal, non-public inquiry from the SEC requesting voluntary production of documents and information. All parties cooperated fully with the SEC's request. On July 15, 2016, Holdings was informed that the SEC was closing its inquiry as to all parties. On or about November 5, 2015, a purported Holdings shareholder filed a derivative complaint on behalf of Holdings in the Court of Chancery of the State of Delaware against certain Holdings officers, directors and Trimaran Pollo Partners, L.L.C. The derivative complaint alleges that these defendants breached their fiduciary duties to Holdings and were unjustly enriched when they sold shares of Holdings at artificially inflated prices due to alleged misrepresentations and omissions regarding EPL’s comparable store sales in the second quarter of 2015. The Holdings shareholder’s requested remedies include an award of compensatory damages to Holdings, as well as a court order to improve corporate governance by putting forward for stockholder vote certain resolutions for amendments to Holdings’ Bylaws or Certificate of Incorporation. The parties have stipulated to, which the court has ordered, a stay of these proceedings pending the outcome of Turocy v. El Pollo Loco Holdings, Inc., discussed above. We are also involved in various other claims and legal actions that arise in the ordinary course of business. We do not believe that the ultimate resolution of these other actions will have a material adverse effect on our financial position, results of operations, liquidity, or capital resources. A significant increase in the number of claims, or an increase in amounts owing under successful claims, could materially and adversely affect our business, financial condition, results of operations, and cash flows. Purchasing Commitments The Company has long-term beverage supply agreements with certain major beverage vendors. Pursuant to the terms of these arrangements, marketing rebates are provided to the Company and its franchisees from the beverage vendors based upon the dollar volume of purchases for system-wide restaurants which will vary according to their demand for beverage syrup and fluctuations in the market rates for beverage syrup. These contracts have terms extending into 2017 with an estimated Company obligation totaling $11.5 million as of June 29, 2016. At June 29, 2016, the Company’s total estimated commitment to purchase chicken was $21.6 million. Contingent Lease Obligations As a result of assigning the Company’s interest in obligations under real estate leases in connection with the sale of Company-operated restaurants to some of the Company’s franchisees, the Company is contingently liable on five lease agreements. These leases have various terms, the latest of which expires in 2036. As of June 29, 2016, the potential amount of undiscounted payments the Company could be required to make in the event of non-payment by the primary lessee was $3.4 million. The present value of these potential payments discounted at the Company’s estimated pre-tax cost of debt at June 29, 2016 was $2.9 million. The Company’s franchisees are primarily liable on the leases. The Company has cross-default provisions with these franchisees that would put them in default of their franchise agreements in the event of non-payment under the leases. The Company believes that these cross-default provisions reduce the risk that payments will be required to be made under these leases. Accordingly, no liability has been recorded in the Company’s condensed consolidated financial statements related to these contingent liabilities. Employment Agreements The Company has employment agreements with four of the officers of the Company on an at will basis. These agreements provide for minimum salary levels, possible annual adjustments for cost-of-living changes, and incentive bonuses that are payable under certain business conditions. Indemnification Agreements The Company has entered into indemnification agreements with each of its current directors and executive officers. These agreements require the Company to indemnify these individuals to the fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to the Company and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified. The Company also intends to enter into indemnification agreements with future directors and executive officers. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 29, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 8. NET INCOME PER SHARE Basic net income per share is calculated using the weighted-average number of shares of common stock outstanding during the thirteen and twenty-six weeks ended June 29, 2016, and July 1, 2015. Diluted net income per share is calculated using the weighted-average number of shares of common stock outstanding and potentially dilutive during the period, using the treasury stock method. Below are basic and diluted net income per share data for the periods indicated, which are in thousands except for per share data. Thirteen Weeks Ended Twenty-Six Weeks Ended June 29, 2016 July 1, 2015 June 29, 2016 July 1, 2015 Numerator: Net income $ 7,267 $ 7,230 $ 12,710 $ 14,021 Denominator: Weighted-average shares outstanding—basic 38,294,575 37,812,767 38,289,505 37,618,756 Weighted-average shares outstanding—diluted 38,962,802 39,085,206 38,981,610 39,002,974 Net income per share—basic $ 0.19 $ 0.19 $ 0.33 $ 0.37 Net income per share—diluted $ 0.19 $ 0.18 $ 0.33 $ 0.36 Anti-dilutive securities not considered in diluted EPS calculation 473,836 — 473,836 — Below is a reconciliation of basic and diluted share counts. Thirteen Weeks Ended Twenty-Six Weeks Ended June 29, 2016 July 1, 2015 June 29, 2016 July 1, 2015 Weighted-average shares outstanding—basic 38,294,575 37,812,767 38,289,505 37,618,756 Dilutive effect of stock options and restricted shares 668,227 1,272,439 692,105 1,384,218 Weighted-average shares outstanding—diluted 38,962,802 39,085,206 38,981,610 39,002,974 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 29, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Trimaran Pollo Partners, L.L.C. (“LLC”), owns approximately 43.6% of the Company’s outstanding common stock. This large position means that LLC and its majority owners—predecessors and affiliates of, and certain funds managed by, Trimaran Capital Partners and Freeman Spogli & Co. (collectively, “Trimaran” and “Freeman Spogli,” respectively)—possess significant influence when stockholders vote on matters such as election of directors, mergers, consolidations and acquisitions, the sale of all or substantially all of the Company’s assets, decisions affecting the Company’s capital structure, amendments to the Company’s certificate of incorporation or by-laws, and the Company’s winding up and dissolution. So long as LLC maintains at least 40% ownership, (i) any member of the board of directors may be removed at any time without cause by affirmative vote of a majority of the Company’s common stock, and (ii) stockholders representing 40% or greater ownership may cause special stockholder meetings to be called. |
Basis of Presentation and Sum15
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 29, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations and cash flows for the periods presented. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP for annual reports. This quarterly report should be read in conjunction with the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 30, 2015. The Company uses a 52- or 53-week fiscal year ending on the last Wednesday of the calendar year. In a 52-week fiscal year, each quarter includes 13 weeks of operations; in a 53-week fiscal year, the first, second and third quarters each include 13 weeks of operations and the fourth quarter includes 14 weeks of operations. Every six or seven years a 53-week fiscal year occurs. Fiscal 2015 and 2016 are both 52-week years, ending on December 30, 2015, and December 28, 2016, respectively. Revenues, expenses, and other financial and operational figures may be elevated in a 53-week year. Holdings has no material assets or operations. Holdings and Holdings’ direct subsidiary, EPL Intermediate, Inc. (“Intermediate”), guarantee EPL’s 2014 Revolver (see Note 4) on a full and unconditional basis and Intermediate has no subsidiaries other than EPL. EPL is a separate and distinct legal entity, and has no obligation to make funds available to Intermediate. EPL and Intermediate may pay dividends to Intermediate and to Holdings, respectively. Under the 2014 Revolver, Holdings may not make certain payments such as cash dividends, except that it may, inter alia, (i) pay up to $1 million per year to repurchase or redeem qualified equity interests of Holdings held by past or present officers, directors, or employees (or their estates) of the Company upon death, disability, or termination of employment, (ii) pay under its income tax receivable agreement (the “TRA”), and, (iii) so long as no default or event of default has occurred and is continuing, (a) make non-cash repurchases of equity interests in connection with the exercise of stock options by directors and officers, provided that those equity interests represent a portion of the consideration of the exercise price of those stock options, (b) pay up to $2.5 million per year pursuant to stock option plans, employment agreements, or incentive plans, (c) make up to $5 million in other restricted payments per year, and (d) make other restricted payments, provided that such payments would not cause, in each case, on a pro forma basis, (x) its lease-adjusted consolidated leverage ratio to equal or exceed 4.25 times and (y) its consolidated fixed charge coverage ratio to be less than 1.75 times. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Holdings and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and revenue and expenses during the period reported. Actual results could materially differ from those estimates. The Company’s significant estimates include estimates for impairment of goodwill, intangible assets and property and equipment, insurance reserves, lease termination liabilities, closed store reserves, stock-based compensation, income tax receivable agreement liability, and income tax valuation allowances. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly-liquid instruments with a maturity of three months or less at the date of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash The Company’s restricted cash represents cash collateral to one commercial bank for Company credit cards. |
Liquidity | Liquidity The Company’s principal liquidity requirements are to service our debt and to meet capital expenditure needs. At June 29, 2016, the Company’s total debt (including capital lease liabilities) was $117.1 million. The Company’s ability to make payments on its indebtedness and to fund planned capital expenditures depends on available cash and on its ability to generate adequate cash flows in the future, which, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond the Company’s control. Based on current operations, the Company believes that its cash flow from operations, available cash of $9.5 million at June 29, 2016, and available borrowings under the 2014 Revolver (which availability was approximately $76.3 million at June 29, 2016) will be adequate to meet the Company’s liquidity needs for the next 12 months. |
Gain on recovery of insurance proceeds | Gain on recovery of insurance proceeds In November 2015, one of the Company’s restaurants incurred damage resulting from a fire. During the twenty-six weeks ended June 29, 2016, we incurred costs directly related to the fire of $48,000, disposed of an additional $87,000 of assets and recognized a gain of $889,000 resulting from the receipt from the insurance company of $1,000,000 in cash. In 2015, the Company disposed of $111,000 of assets related to the fire. The restaurant was reopened for business on March 14, 2016. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients. This ASU is intended to clarify two aspects of Topic 606: first, assessing the collectability criterion, options for the presentation of sales and similar taxes, noncash consideration, transition contract modifications, transition contract completion and secondly, technical corrections. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and early application is permitted, but no earlier than fiscal years beginning after December 16, 2016. The Company is currently assessing the impact of this ASU on our consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing. This ASU is intended to clarify two aspects of Topic 606: identifying performance obligations and licensing implementation guidance. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and early application is permitted, but no earlier than fiscal years beginning after December 16, 2016. The Company is currently assessing the impact of this ASU on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods therein (our fiscal year 2017). Early application is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases.” The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of the pending adoption of the new standard on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for the Company's fiscal year beginning December 28, 2017 and interim periods within that fiscal year. The impact of this expected adoption of ASU 2016-01 is being evaluated by the Company. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes” which requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. Prior to the issuance of the standard, deferred tax liabilities and assets were required to be separately classified into a current amount and a noncurrent amount in the balance sheet. The new accounting guidance represents a change in accounting principle and the standard is required to be adopted in annual periods beginning after December 15, 2016. After the adoption of this ASU all deferred tax assets and liabilities will be classified as noncurrent on the consolidated balance sheet. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330).” The pronouncement was issued to simplify the measurement of inventory and changes the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for reporting periods beginning after December 15, 2016. The adoption of ASU 2015-11 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (ASU 2014-09)”, which supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The revised revenue standard is effective for public entities for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of the Company’s pending adoption of ASU 2014-09 on the Company’s financial statements and has not yet determined the method by which it will adopt the standard in fiscal 2018. In August 2014, the FASB issued ASU No. 2014-15, Going Concern (“ASU 2014-15”). ASU 2014-15 provides GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The standard will be effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. Upon adoption, the Company will use the guidance in ASU 2014-15 to assess going concern. |
Subsequent Events | Subsequent Events Subsequent to June 29, 2016, the Company opened one new restaurant and made a $3.0 million pre-payment on the 2014 Revolver. The Company evaluated subsequent events that have occurred after June 29, 2016, and determined that there were no other events or transactions occurring during this reporting period that require recognition or disclosure in the condensed consolidated financial statements. |
Concentration of Risk | Concentration of Risk Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally-insured limits. The Company has never experienced any losses related to these balances. The Company had no suppliers for which amounts due at June 29, 2016 totaled greater than 10% of the Company’s accounts payable. As of December 30, 2015, the Company had two different suppliers for which amounts totaled 12% and 11% of the Company’s accounts payable. Purchases from the Company’s largest supplier totaled 34% for the thirteen weeks ended June 29, 2016, and 37% for the thirteen weeks ended July 1, 2015, of the Company’s purchases. Purchases from the Company’s largest supplier totaled 34% for the twenty-six weeks ended June 29, 2016, and 37% for the twenty-six weeks ended July 1, 2015, of the Company’s purchases. Company-operated and franchised restaurants in the greater Los Angeles area generated, in the aggregate, approximately 75% and 79% of total revenue for both the thirteen and twenty-six weeks ended June 29, 2016 and July 1, 2015, respectively. |
Goodwill and Indefinite Lived Intangible Assets | Goodwill and Indefinite Lived Intangible Assets The Company’s indefinite lived intangible assets consist of trademarks. Goodwill represents the excess of cost over fair value of net identified assets acquired in business combinations accounted for under the purchase method. The Company does not amortize its goodwill and indefinite lived intangible assets. Goodwill resulted from historical acquisitions. Upon the sale of a restaurant, the Company evaluates whether there is a decrement of goodwill. The amount of goodwill included in the cost basis of the asset sold is determined based on the relative fair value of the portion of the reporting unit disposed of compared to the fair value of the reporting unit retained. The Company performs annual impairment tests for goodwill during the fourth fiscal quarter of each year, or more frequently if impairment indicators arise. The Company reviews goodwill for impairment utilizing either a qualitative assessment or a two-step process. If the Company decides that it is appropriate to perform a qualitative assessment and concludes that the fair value of a reporting unit more likely than not exceeds its carrying value, no further evaluation is necessary. If the Company performs the two-step process, the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step is performed to measure the amount of impairment by comparing the carrying amount of the goodwill to a determination of the implied value of the goodwill. If the carrying amount of goodwill is greater than the implied value, an impairment charge is recognized for the difference. The Company performs annual impairment tests for indefinite lived intangible assets during the fourth fiscal quarter of each year, or more frequently if impairment indicators arise. An impairment test consists of either a qualitative assessment or a comparison of the fair value of an intangible asset with its carrying amount. The excess of the carrying amount of an intangible asset over its fair value is its impairment loss. The assumptions used in the estimate of fair value are generally consistent with the past performance of the Company’s reporting segment and are also consistent with the projections and assumptions that are used in current operating plans. These assumptions are subject to change as a result of changing economic and competitive conditions. The Company did not identify any indicators of potential impairment during the thirteen and twenty-six weeks ended June 29, 2016, and therefore did not perform any impairment review, nor did the Company record any impairment. |
Income Taxes | Income Taxes The provision for income taxes, income taxes payable and deferred income taxes is determined using the asset and liability method. Deferred tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. On a periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered. If, after evaluating all of the positive and negative evidence, a conclusion is made that it is more likely than not that some portion or all of the net deferred tax assets will not be recovered, a valuation allowance is provided by charging to tax expense to reserve the portion of deferred tax assets which are not expect to be realized. The Company reviews its filing positions for all open tax years in all U.S. federal and state jurisdictions where the Company is required to file. When there are uncertainties related to potential income tax benefits, in order to qualify for recognition, the position the Company takes has to have at least a “more likely than not” chance of being sustained (based on the position’s technical merits) upon challenge by the respective authorities. The term “more likely than not” means a likelihood of more than 50 percent. Otherwise, the Company may not recognize any of the potential tax benefit associated with the position. The Company recognizes a benefit for a tax position that meets the “more likely than not” criterion at the largest amount of tax benefit that is greater than 50 percent likely of being realized upon its effective resolution. Unrecognized tax benefits involve management’s judgment regarding the likelihood of the benefit being sustained. The final resolution of uncertain tax positions could result in adjustments to recorded amounts and may affect our results of operations, financial position, and cash flows. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties at June 29, 2016, or at December 30, 2015, and did not recognize interest or penalties during the thirteen or twenty-six weeks ended June 29, 2016, or July 1, 2015, since there were no material unrecognized tax benefits. Management believes no material changes to the amount of unrecognized tax benefits will occur within the next twelve months. On July 30, 2014, the Company entered into the TRA. The TRA calls for the Company to pay to its pre-IPO stockholders 85% of the savings in cash that the Company realizes in its taxes as a result of utilizing its net operating losses and other tax attributes attributable to preceding periods. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 29, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Costs and Related Accumulated Depreciation and Amortization of Major Classes of Property | The costs and related accumulated depreciation and amortization of major classes of property are as follows (in thousands): June 29, 2016 December 30, 2015 Land $ 12,323 $ 12,323 Buildings and improvements 116,172 111,349 Other property and equipment 62,152 58,525 Construction in progress 10,627 4,717 201,274 186,914 Less: accumulated depreciation and amortization (90,304 ) (84,493 ) $ 110,970 $ 102,421 |
Other Accrued Expenses and Cu17
Other Accrued Expenses and Current Liabilities (Tables) | 6 Months Ended |
Jun. 29, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Other Accrued Expenses and Current Liabilities | Other accrued expenses and current liabilities consist of the following (in thousands): June 29, 2016 December 30, 2015 Accrued sales and property taxes $ 3,364 $ 3,480 Income tax receivable agreement payable 4,197 7,609 Gift card liability 1,525 1,810 Other 4,012 3,227 Total other accrued expenses and current liabilities $ 13,098 $ 16,126 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 6 Months Ended |
Jun. 29, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other noncurrent liabilities consist of the following (in thousands): June 29, 2016 December 30, 2015 Deferred rent $ 7,186 $ 6,611 Income tax receivable agreement payable 37,571 33,930 Other 2,618 2,826 Total other noncurrent liabilities $ 47,375 $ 43,367 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 29, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income per Share | Below are basic and diluted net income per share data for the periods indicated, which are in thousands except for per share data. Thirteen Weeks Ended Twenty-Six Weeks Ended June 29, 2016 July 1, 2015 June 29, 2016 July 1, 2015 Numerator: Net income $ 7,267 $ 7,230 $ 12,710 $ 14,021 Denominator: Weighted-average shares outstanding—basic 38,294,575 37,812,767 38,289,505 37,618,756 Weighted-average shares outstanding—diluted 38,962,802 39,085,206 38,981,610 39,002,974 Net income per share—basic $ 0.19 $ 0.19 $ 0.33 $ 0.37 Net income per share—diluted $ 0.19 $ 0.18 $ 0.33 $ 0.36 Anti-dilutive securities not considered in diluted EPS calculation 473,836 — 473,836 — |
Schedule of Reconciliation of Basic and Diluted Share Counts | Below is a reconciliation of basic and diluted share counts. Thirteen Weeks Ended Twenty-Six Weeks Ended June 29, 2016 July 1, 2015 June 29, 2016 July 1, 2015 Weighted-average shares outstanding—basic 38,294,575 37,812,767 38,289,505 37,618,756 Dilutive effect of stock options and restricted shares 668,227 1,272,439 692,105 1,384,218 Weighted-average shares outstanding—diluted 38,962,802 39,085,206 38,981,610 39,002,974 |
Basis of Presentation and Sum20
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | Jul. 30, 2014 | Nov. 30, 2015Restaurants | Jun. 29, 2016USD ($)Restaurants | Jul. 01, 2015USD ($) | Jun. 29, 2016USD ($)SegmentRestaurantsSupplier | Jul. 01, 2015USD ($) | Dec. 30, 2015USD ($)Supplier | Jun. 30, 2016USD ($)Restaurants | Dec. 31, 2014USD ($) |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of operating segments | Segment | 1 | ||||||||
Restricted dividend payments, description | Under the 2014 Revolver, Holdings may not make certain payments such as cash dividends, except that it may, inter alia, (i) pay up to $1 million per year to repurchase or redeem qualified equity interests of Holdings held by past or present officers, directors, or employees (or their estates) of the Company upon death, disability, or termination of employment, (ii) pay under its income tax receivable agreement (the “TRA”), and, (iii) so long as no default or event of default has occurred and is continuing, (a) make non-cash repurchases of equity interests in connection with the exercise of stock options by directors and officers, provided that those equity interests represent a portion of the consideration of the exercise price of those stock options, (b) pay up to $2.5 million per year pursuant to stock option plans, employment agreements, or incentive plans, (c) make up to $5 million in other restricted payments per year, and (d) make other restricted payments, provided that such payments would not cause, in each case, on a pro forma basis, (x) its lease-adjusted consolidated leverage ratio to equal or exceed 4.25 times and (y) its consolidated fixed charge coverage ratio to be less than 1.75 times. | ||||||||
Total amount of outstanding debt | $ 117,100,000 | $ 117,100,000 | |||||||
Cash available | 9,496,000 | $ 6,414,000 | 9,496,000 | $ 6,414,000 | $ 6,101,000 | $ 11,499,000 | |||
Number of restaurants damaged | Restaurants | 1 | ||||||||
Costs incurred directly related to fire | 48,000 | ||||||||
Disposition of assets related to fire | 87,000 | 87,000 | 111,000 | ||||||
Gain on recovery of insurance proceeds | 600,000 | 889,000 | |||||||
Amount received from insurance company in cash | 1,000,000 | ||||||||
Unrecognized tax benefits, accrual of interest or penalties | 0 | 0 | $ 0 | ||||||
Unrecognized tax benefits, interest or penalties expenses | 0 | $ 0 | 0 | $ 0 | |||||
Percentage of cash savings in taxes realized as a result of utilizing net operating losses payable to pre-IPO stockholders | 85.00% | ||||||||
Indefinite-lived Intangible Assets [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Asset impairment charges | $ 0 | $ 0 | |||||||
Supplier Concentration Risk [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of suppliers | Supplier | 0 | 2 | |||||||
Supplier Two [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of concentration | 12.00% | ||||||||
Supplier Three [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of concentration | 11.00% | ||||||||
Largest Supplier One [Member] | Purchased [Member] | Supplier Concentration Risk [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of concentration | 34.00% | 37.00% | 34.00% | 37.00% | |||||
The Greater Los Angeles Area [Member] | Revenue [Member] | Geographic Concentration Risk [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Percentage of concentration | 75.00% | 79.00% | 75.00% | 79.00% | |||||
Subsequent Event [Member] | Parent [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of restaurants | Restaurants | 1 | ||||||||
Senior Secured Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Pre-payment for new restaurant | $ 3,000,000 | ||||||||
2013 First Lien Credit Agreement [Member] | Senior Secured Revolving Credit Facility [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Amount of borrowings available | $ 76,300,000 | $ 76,300,000 | |||||||
Entity Operated Units [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of restaurants | Restaurants | 188 | 188 | |||||||
Franchised Units [Member] | |||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of restaurants | Restaurants | 251 | 251 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Costs and Related Accumulated Depreciation and Amortization of Major Classes of Property (Detail) - USD ($) $ in Thousands | Jun. 29, 2016 | Dec. 30, 2015 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 201,274 | $ 186,914 |
Less: accumulated depreciation and amortization | (90,304) | (84,493) |
Property and equipment, net | 110,970 | 102,421 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 12,323 | 12,323 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 116,172 | 111,349 |
Other Property and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 62,152 | 58,525 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 10,627 | $ 4,717 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2016 | Jul. 01, 2015 | Jun. 29, 2016 | Jul. 01, 2015 | Dec. 30, 2015 | |
Property Plant And Equipment [Abstract] | |||||
Depreciation expense | $ 4 | $ 3.2 | $ 7.7 | $ 6.3 | |
Gross value of assets under capital leases for buildings and improvements | 1.6 | 1.6 | $ 1.6 | ||
Accumulated depreciation of assets under capital leases | 1.5 | 1.5 | $ 1.5 | ||
Capital expenditures | 8.4 | 14.3 | |||
Capital expenditures for restaurant remodeling | 0.1 | 1.6 | |||
Capital expenditures for new restaurants | $ 6.3 | $ 9.2 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2016 | Jul. 01, 2015 | Jun. 29, 2016 | Jul. 01, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock, options outstanding | 2,196,859 | 2,196,859 | ||
Common stock, options vested | 1,626,399 | |||
Common stock, options unvested | 570,460 | 570,460 | ||
Stock options exercised | 115,340 | 825,187 | 115,340 | 844,907 |
Number of options granted at fair market value | 319,798 | 0 | 319,798 | 0 |
Unrecognized compensation expense | $ 1,700 | $ 1,700 | ||
Unrecognized compensation expense, recognition period | 3 years 2 months 12 days | |||
Stock-based compensation expense | $ 128 | $ 146 | $ 139 | $ 443 |
Premium Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock, options outstanding | 1,611,718 | 1,611,718 | ||
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unvested restricted shares outstanding | 20,158 | 20,158 |
Credit Agreements - Additional
Credit Agreements - Additional Information (Detail) - USD ($) | Dec. 11, 2014 | Jun. 29, 2016 | Jun. 29, 2016 |
Debt Instrument [Line Items] | |||
Revolving credit facility maturity period | Dec. 11, 2019 | ||
Debt instrument basis percentage | 1.00% | ||
Interest rate description | (a) the federal funds rate plus 0.50%, (b) the prime rate of Bank of America, or (c) LIBOR plus 1.00%. For LIBOR loans, the margin is in the range of 1.75% to 2.50%, and for base rate loans the margin is in the range of 0.75% to 1.50%. The margin was initially set at 2.00% for LIBOR loans and at 1.00% for base rate loans until the delivery of financial statements and a compliance certificate for the first quarter of 2015. The interest rate range was 2.19% to 2.20% and 2.02% to 2.20% for the thirteen and twenty-six weeks ended June 29, 2016, respectively. | ||
Senior Secured Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal payments prior to maturity | $ 0 | ||
Debt instrument, periodic payment | $ 6,500,000 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.19% | 2.02% | |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.20% | 2.20% | |
Federal Funds Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 0.50% | ||
Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 0.75% | ||
Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 1.50% | ||
Initial Margin Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 2.00% | ||
LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 1.00% | ||
LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 1.75% | ||
LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 2.50% | ||
2014 Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Senior secured revolving facility | $ 200,000,000 | ||
Senior secured revolving facility term | 5 years | ||
Letters of credit outstanding | $ 7,200,000 | $ 7,200,000 | |
Amount of borrowings available | $ 76,300,000 | $ 76,300,000 | |
Swing Line Loans [Member] | 2014 Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Sub limit of revolving facility | $ 15,000,000 | ||
Letter of Credit [Member] | 2014 Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Sub limit of revolving facility | $ 15,000,000 |
Other Accrued Expenses and Cu25
Other Accrued Expenses and Current Liabilities - Schedule of Other Accrued Expenses and Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 29, 2016 | Dec. 30, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Accrued sales and property taxes | $ 3,364 | $ 3,480 |
Income tax receivable agreement payable | 4,197 | 7,609 |
Gift card liability | 1,525 | 1,810 |
Other | 4,012 | 3,227 |
Total other accrued expenses and current liabilities | $ 13,098 | $ 16,126 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Schedule of Other Noncurrent Liabilities (Detail) - USD ($) $ in Thousands | Jun. 29, 2016 | Dec. 30, 2015 |
Other Liabilities Noncurrent [Abstract] | ||
Deferred rent | $ 7,186 | $ 6,611 |
Income tax receivable agreement payable | 37,571 | 33,930 |
Other | 2,618 | 2,826 |
Total other noncurrent liabilities | $ 47,375 | $ 43,367 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended |
Jun. 29, 2016USD ($)LawsuitLeaseAgreement | |
Other Commitments [Line Items] | |
Date of class action filed in court | On or about February 24, 2014 |
Number of lawsuits consolidated | Lawsuit | 2 |
Call option value reduced from menu | $ 5 |
Officers [Member] | |
Other Commitments [Line Items] | |
Number of at-will employment agreements | Agreement | 4 |
Property Lease Guarantee [Member] | |
Other Commitments [Line Items] | |
Number of leases assigned to franchisees | Lease | 5 |
Latest lease expiration year | 2,036 |
Contingent lease obligations, maximum exposure | $ 3,400,000 |
Contingent lease obligations, maximum exposure, if discounted at estimated pre-tax cost of debt | 2,900,000 |
Beverage [Member] | |
Other Commitments [Line Items] | |
Purchase commitments, estimated obligations | 11,500,000 |
Chicken Acquisition Corp [Member] | |
Other Commitments [Line Items] | |
Purchase commitments, estimated obligations | $ 21,600,000 |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2016 | Jul. 01, 2015 | Jun. 29, 2016 | Jul. 01, 2015 | |
Numerator: | ||||
Net income | $ 7,267 | $ 7,230 | $ 12,710 | $ 14,021 |
Denominator: | ||||
Weighted-average shares outstanding—basic | 38,294,575 | 37,812,767 | 38,289,505 | 37,618,756 |
Weighted-average shares outstanding—diluted | 38,962,802 | 39,085,206 | 38,981,610 | 39,002,974 |
Net income per share—basic | $ 0.19 | $ 0.19 | $ 0.33 | $ 0.37 |
Net income per share—diluted | $ 0.19 | $ 0.18 | $ 0.33 | $ 0.36 |
Anti-dilutive securities not considered in diluted EPS calculation | 473,836 | 473,836 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Reconciliation of Basic and Diluted Share Counts (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2016 | Jul. 01, 2015 | Jun. 29, 2016 | Jul. 01, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares outstanding—basic | 38,294,575 | 37,812,767 | 38,289,505 | 37,618,756 |
Dilutive effect of stock options and restricted shares | 668,227 | 1,272,439 | 692,105 | 1,384,218 |
Weighted-average shares outstanding—diluted | 38,962,802 | 39,085,206 | 38,981,610 | 39,002,974 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Trimaran Pollo Partners, LLC [Member] | 6 Months Ended |
Jun. 29, 2016 | |
Related Party Transaction [Line Items] | |
Company's outstanding common stock owned by Trimaran Pollo Partners, L.L.C. | 43.60% |
Ownership description | So long as LLC maintains at least 40% ownership, (i) any member of the board of directors may be removed at any time without cause by affirmative vote of a majority of the Company’s common stock, and (ii) stockholders representing 40% or greater ownership may cause special stockholder meetings to be called. |
Minimum [Member] | |
Related Party Transaction [Line Items] | |
Outstanding membership interest, percentage | 40.00% |
Ownership percentage by stockholders | 40.00% |