Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2018 | Feb. 28, 2019 | Jun. 27, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 26, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LOCO | ||
Entity Registrant Name | El Pollo Loco Holdings, Inc. | ||
Entity Central Index Key | 1,606,366 | ||
Entity Central Index Key | --12-26 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Emerging Growth Company | true | ||
Small Business Entity | false | ||
Entity Ex Transition Period | true | ||
Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 38,962,766 | ||
Entity Public Float | $ 245 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 6,969 | $ 8,550 |
Accounts and other receivables, net | 9,599 | 7,212 |
Inventories | 2,479 | 2,289 |
Prepaid expenses and other current assets | 2,998 | 2,679 |
Total current assets | 22,045 | 20,730 |
Property and equipment owned, net | 104,145 | 102,794 |
Property held under capital lease, net | 16 | 40 |
Goodwill | 248,674 | 248,674 |
Trademarks, net | 61,888 | 61,888 |
Other intangible assets, net | 280 | 377 |
Deferred tax assets | 11,709 | 7,167 |
Other assets | 1,469 | 1,041 |
Total assets | 450,226 | 442,711 |
Current liabilities: | ||
Current portion of obligations under capital leases | 68 | 132 |
Accounts payable | 9,564 | 12,307 |
Accrued salaries and vacation | 7,574 | 7,339 |
Accrued insurance | 7,076 | 5,851 |
Accrued income taxes payable | 71 | 35 |
Accrued interest | 149 | 110 |
Current portion of income tax receivable agreement payable | 6,637 | 8,281 |
Other accrued expenses and current liabilities | 51,764 | 13,270 |
Total current liabilities | 82,903 | 47,325 |
Revolver loan | 74,000 | 93,000 |
Obligations under capital leases, net of current portion | 116 | 184 |
Other intangible liabilities, net | 642 | 786 |
Income tax receivable agreement payable, net of current portion | 7,305 | 13,694 |
Other noncurrent liabilities | 20,024 | 12,772 |
Total liabilities | 184,990 | 167,761 |
Commitments and contingencies (Note 13) | ||
Stockholders’ Equity | ||
Preferred stock, $0.01 par value—100,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value—200,000,000 shares authorized; 39,009,451 and 38,661,850 shares issued and outstanding | 390 | 387 |
Additional paid-in capital | 375,734 | 372,990 |
Accumulated deficit | (110,888) | (98,427) |
Total stockholders’ equity | 265,236 | 274,950 |
Total liabilities and stockholders’ equity | $ 450,226 | $ 442,711 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 26, 2018 | Dec. 27, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 39,009,451 | 38,661,850 |
Common stock, shares outstanding (shares) | 39,009,451 | 38,661,850 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Revenue | |||
Total revenue | $ 435,828 | $ 401,701 | $ 380,123 |
Cost of operations | |||
Food and paper costs | 111,142 | 109,898 | 107,218 |
Labor and related expenses | 112,417 | 106,584 | 97,471 |
Occupancy and other operating expenses | 91,385 | 85,631 | 78,263 |
Gain on recovery of insurance proceeds, lost profits | 0 | 0 | (502) |
Company restaurant expenses | 314,944 | 302,113 | 282,450 |
General and administrative expenses | 50,261 | 38,523 | 34,661 |
Legal settlements | 36,258 | 0 | 0 |
Franchise expenses | 24,429 | 3,335 | 3,823 |
Depreciation and amortization | 17,825 | 18,128 | 16,053 |
Loss on disposal of assets | 278 | 799 | 674 |
Expenses related to fire loss | 0 | 0 | 48 |
Gain on recovery of insurance proceeds, property, equipment and expenses | 0 | 0 | (741) |
Recovery of securities lawsuits related legal expenses | (8,356) | (1,666) | 0 |
Asset impairment and closed-store reserves | 9,650 | 33,645 | 8,554 |
Total expenses | 445,289 | 394,877 | 345,522 |
Gain on disposition of restaurants | 0 | 0 | 28 |
(Loss) income from operations | (9,461) | 6,824 | 34,629 |
Interest expense—net of interest income of $12, $25, and $28 for the years ended December 26, 2018, December 27, 2017, and December 28, 2016, respectively | 3,502 | 3,278 | 3,155 |
Income tax receivable agreement (income) expense | (761) | (5,570) | 352 |
(Loss) income before provision for income taxes | (12,202) | 9,116 | 31,122 |
(Benefit) provision for income taxes | (3,208) | 497 | 12,783 |
Net (loss) income | $ (8,994) | $ 8,619 | $ 18,339 |
Net (loss) income per share: | |||
Basic (usd per share) | $ (0.23) | $ 0.22 | $ 0.48 |
Diluted (usd per share) | $ (0.23) | $ 0.22 | $ 0.47 |
Weighted average shares used in computing net (loss) income per share: | |||
Basic (shares) | 38,574,553 | 38,453,347 | 38,357,805 |
Diluted (shares) | 38,574,553 | 39,086,676 | 39,026,950 |
Company-operated restaurant revenue | |||
Revenue | |||
Total revenue | $ 388,835 | $ 376,615 | $ 355,468 |
Franchise revenue | |||
Revenue | |||
Total revenue | 25,771 | 25,086 | 24,655 |
Franchise advertising fee revenue | |||
Revenue | |||
Total revenue | $ 21,222 | $ 0 | $ 0 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Income Statement [Abstract] | |||
Interest income | $ 12 | $ 25 | $ 28 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance (shares) at Dec. 30, 2015 | 38,284,435 | |||
Beginning balance at Dec. 30, 2015 | $ 244,633 | $ 383 | $ 369,635 | $ (125,385) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock based compensation | 1,063 | 1,063 | ||
Issuance of common stock related to restricted shares, net (shares) | 41,611 | |||
Issuance of common stock related to restricted shares, net | 0 | |||
Issuance of common stock upon exercise of stock options (shares) | 147,726 | |||
Issuance of common stock upon exercise of stock options | 978 | $ 2 | 976 | |
Excess income tax benefit related to share-based compensation plans | 169 | 169 | ||
Net income | 18,339 | 18,339 | ||
Ending balance (shares) at Dec. 28, 2016 | 38,473,772 | |||
Ending balance at Dec. 28, 2016 | 265,182 | $ 385 | 371,843 | (107,046) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock based compensation | 1,056 | 1,056 | ||
Issuance of common stock related to restricted shares, net (shares) | 170,417 | |||
Issuance of common stock related to restricted shares, net | $ 0 | $ 2 | (2) | |
Issuance of common stock upon exercise of stock options (shares) | 17,661 | 17,661 | ||
Issuance of common stock upon exercise of stock options | $ 93 | $ 0 | 93 | |
Net income | 8,619 | 8,619 | ||
Ending balance (shares) at Dec. 27, 2017 | 38,661,850 | |||
Ending balance at Dec. 27, 2017 | 274,950 | $ 387 | 372,990 | (98,427) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock based compensation | 2,005 | 2,005 | ||
Issuance of common stock related to restricted shares, net (shares) | 155,229 | |||
Issuance of common stock related to restricted shares, net | $ 0 | $ 1 | (1) | |
Issuance of common stock upon exercise of stock options (shares) | 269,549 | 269,549 | ||
Issuance of common stock upon exercise of stock options | $ 1,837 | $ 3 | 1,834 | |
Shares repurchased for employee tax withholdings | (10,768) | |||
Shares repurchased for employee tax withholdings (shares) | $ (114) | (114) | ||
Repurchase of common stock (shares) | (66,409) | |||
Repurchase of common stock | (981) | $ (1) | (980) | |
Net income | (8,994) | (8,994) | ||
Ending balance (shares) at Dec. 26, 2018 | 39,009,451 | |||
Ending balance at Dec. 26, 2018 | $ 265,236 | $ 390 | $ 375,734 | $ (110,888) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Cash flows from operating activities | |||
Net (loss) income | $ (8,994) | $ 8,619 | $ 18,339 |
Adjustments to reconcile changes in net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 17,825 | 18,128 | 16,053 |
Stock-based compensation expense | 2,005 | 1,056 | 1,063 |
Income tax receivable agreement (income) expense | (761) | (5,570) | 352 |
Loss on disposal of assets | 278 | 799 | 674 |
Impairment of property and equipment | 5,147 | 32,594 | 8,400 |
Closed-store reserves | 4,503 | 1,051 | 154 |
Amortization of deferred financing costs | 280 | 304 | 304 |
Amortization of favorable and unfavorable leases, net | (47) | (119) | (82) |
Excess income tax benefit related to share-based compensation plans | 0 | 0 | (169) |
Deferred income taxes, net | (3,428) | 250 | 12,390 |
Other | 0 | 0 | (660) |
Changes in operating assets and liabilities: | |||
Accounts and other receivables, net | (2,387) | (294) | (844) |
Inventories | (190) | (177) | (221) |
Prepaid expenses and other current assets | (319) | 425 | (448) |
Income taxes receivable/payable | 37 | (85) | 222 |
Other assets | 122 | 47 | 107 |
Accounts payable | 482 | 1,088 | (4,579) |
Accrued salaries and vacation | 235 | 1,585 | (939) |
Accrued insurance | 1,225 | 407 | 423 |
Payment related to tax receivable agreement | (7,272) | (11,109) | (3,236) |
Other accrued expenses and liabilities | 36,701 | 4,547 | 1,996 |
Restricted cash | 0 | 125 | 0 |
Net cash provided by operating activities | 45,442 | 53,671 | 49,299 |
Cash flows from investing activities | |||
Proceeds from disposition of restaurant | 0 | 0 | 1,465 |
Proceeds from fire insurance for property and equipment | 0 | 0 | 743 |
Purchase of property and equipment | (27,802) | (36,238) | (37,410) |
Net cash flows used in investing activities | (27,802) | (36,238) | (35,202) |
Cash flows from financing activities | |||
Proceeds from borrowings on revolver and term loans | 13,307 | 8,000 | 0 |
Payments on revolver loan | (33,000) | (19,000) | (19,000) |
Minimum tax withholdings related to net share settlements | (114) | 0 | 0 |
Proceeds from issuance of common stock upon exercise of stock options, net of expenses | 1,837 | 93 | 978 |
Payment of obligations under capital leases | (132) | (144) | (177) |
Deferred financing costs for revolver loan | (138) | 0 | 0 |
Excess income tax benefit related to share-based compensation plans | 0 | 0 | 169 |
Repurchases of common stock | (981) | 0 | 0 |
Net cash flows used in financing activities | (19,221) | (11,051) | (18,030) |
Increase (decrease) in cash and cash equivalents | (1,581) | 6,382 | (3,933) |
Cash and cash equivalents, beginning of year | 8,550 | 2,168 | 6,101 |
Cash and cash equivalents, end of year | 6,969 | 8,550 | 2,168 |
Supplemental cash flow information | |||
Cash paid for interest, net of capitalized interest | 3,393 | 3,314 | 3,086 |
Cash paid during the year for income taxes, net | 183 | 336 | 171 |
Non-cash investing and financing activity | |||
Unpaid purchases of property and equipment | 1,543 | 4,741 | 5,158 |
Borrowing on revolver for financing fees | $ 693 | $ 0 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 26, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS 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.” The Company’s activities are conducted principally through its indirect wholly-owned subsidiary, El Pollo Loco, Inc. (“EPL”), which develops, franchises, licenses and operates quick-service restaurants under the name El Pollo Loco ®. The restaurants, which are located principally in California but also in Arizona, Nevada, Texas, Utah and Louisiana, specialize in flame-grilled chicken in a wide variety of contemporary Mexican-influenced entrees, including specialty chicken burritos, chicken quesadillas, chicken tortilla soup, variations on our Pollo Bowl® and Pollo Salads. At December 26, 2018 , the Company operated 213 ( 143 in the greater Los Angeles area) and franchised 271 ( 138 in the greater Los Angeles area) El Pollo Loco restaurants. In addition, the Company currently licenses one restaurant in the Philippines. The Company’s largest stockholder is Trimaran Pollo Partners, L.L.C. (“LLC”), which is controlled by affiliates of Trimaran Capital, L.L.C. LLC acquired Chicken Acquisition Corp. (“CAC”), a predecessor of Holdings, on November 17, 2005 (the “Acquisition”) and has a 42.9% ownership interest as of December 26, 2018 . LLC’s only material asset is its investment in Holdings. On April 22, 2014 , CAC, its wholly owned subsidiary, Chicken Subsidiary Corp (“CSC”) and CSC’s wholly owned subsidiary, the former El Pollo Loco Holdings, Inc. (“Old Holdings”) entered into the following reorganization transactions: (i) Old Holdings merged with and into CSC with CSC continuing as the surviving corporation; (ii) CSC merged with and into CAC with CAC continuing as the surviving corporation and (iii) CAC renamed itself El Pollo Loco Holdings, Inc. Holdings has no material assets or operations. Holdings and Holdings’ direct subsidiary, EPL Intermediate, Inc. (“Intermediate”), guarantee EPL’s 2014 Revolver (see Note 6) 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. On July 13, 2018, the Company refinanced its 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, (the "2014 Revolver"), pursuant to a credit agreement (the "2018 Credit Agreement") among EPL, as borrower, the Company and EPL Intermediate, Inc. (“Intermediate"), as guarantors, 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 $150.0 million five -year senior secured revolving facility (the “2018 Revolver”). Under the 2018 Revolver, Holdings may not make certain payments such as cash dividends, except that it may, inter alia, (i) pay up to $1.0 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, officers and management, provided that those equity interests represent a portion of the consideration of the exercise price of those stock options, (b) pay up to $0.5 million in any 12 month consecutive period to redeem, repurchase or otherwise acquire equity interests of any subsidiary that is not a wholly-owned subsidiary from any holder of equity interest in such subsidiary, (c) pay up to $2.5 million per year pursuant to stock option plans, employment agreements, or incentive plans, (d) make up to $5.0 million in other restricted payments per year, and (e) make other restricted payments, subject to its compliance, on a pro forma basis, with (x) a lease-adjusted consolidated leverage ratio not to exceed 4.25 times and (y) the financial covenants applicable to the 2018 Revolver. The Company operates in one operating segment. All significant revenues relate to retail sales of food and beverages to the general public through either company or franchised restaurants. On August 2, 2018, the Company announced the Board of Directors had authorized a stock repurchase program (the "Stock Repurchase Program"). The Company entered into a stock repurchase plan pursuant to Rule 10b5-1 of the Securities and Exchange Act of 1934, as amended on August 28, 2018 (the "Stock Repurchase Plan"), which allows the repurchase of up to $20.0 million of the Company's common stock. The Stock Repurchase Plan commenced purchases on November 6, 2018, and, if not terminated sooner by other provisions of the Stock Repurchase Plan, will terminate on June 26, 2019. The Stock Repurchase Plan may also be suspended or terminated at any time upon prior notice. Under the Stock Repurchase Program, the Company may repurchase its common stock from time to time, in amounts and at prices that the Company deems appropriate, subject to market conditions and other considerations. The Company's repurchases may be executed using open market purchases and/or through privately negotiated transactions. Under the Stock Repurchase Plan for the quarterly period ended December 26, 2018 , the Company repurchased 66,409 shares of common stock, executed using open market purchases, for total consideration of approximately $1.0 million . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Liquidity The Company’s principal liquidity requirements are to service its debt and meet capital expenditure needs. At December 26, 2018 , the Company’s total debt (including capital lease liabilities) was $74.2 million . The Company’s ability to make payments on its indebtedness and to fund planned capital expenditures depends on available cash and 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 flows from operations, available cash of $7.0 million at December 26, 2018 , and available borrowings under the 2018 Revolver (which availability was $67.5 million at December 26, 2018 ) will be adequate to meet the Company’s liquidity needs for the next twelve months from the issuance of the consolidated financial statements. Basis of Presentation The Company uses a 52- or 53-week fiscal year ending on the last Wednesday of each calendar year. Fiscal 2018 , 2017 , and 2016 ended on December 26, 2018 , December 27, 2017 and December 28, 2016 , respectively. 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. Approximately every six or seven years a 53-week fiscal year occurs. Fiscal 2018 , 2017 and 2016 were 52-week fiscal years. 53-week years may cause revenues, expenses, and other results of operations to be higher due to the additional week of operations. Principles of Consolidation The accompanying 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 consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“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 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 represented cash collateral to one commercial bank for Company credit cards. During the fiscal year ended 2017, the cash collateral was returned by the bank, and the Company reclassified such amounts to cash and cash equivalents. Subsequent Events On January 24, 2019, the parties reached an agreement in principle to settle all claims and allegations brought on behalf of putative class members in Superior Court of the State of California, County of Orange under the caption Elliott Olvera, et al. v. El Pollo Loco, Inc., et al. (Case No. 30-2014-00707367-CU-OE-CXC), as well as all wage and hour claims brought in the class actions captioned Martha Perez v. El Pollo Loco, Inc. (Los Angeles Superior Court Case No. BC624001), Maria Vega, et al. v. El Pollo Loco, Inc. (Los Angeles Superior Court Case No. BC649719), and Gonzalez v. El Pollo Loco, Inc. (Los Angeles Superior Court Case No. BC712867). See "Note 13. Commitments and Contingencies—Legal Matters." On January 23, 2019, the parties filed a Notice of Settlement and Joint Request for Order to Stay Proceedings, stating the parties have reached an agreement in principle to settle all claims and allegations brought on behalf of putative class members in United States District Court, Central District of California under the caption Turocy v. El Pollo Loco Holdings, Inc. et al. , (Case No. 8:15-cv-01343-DOC-KES). See "Note 13. Commitments and Contingencies—Legal Matters." Subsequent to December 26, 2018 , the Company decided to close one restaurant in Texas, which was previously impaired during the fourth quarter of 2017. The restaurant closed in January 2019. Subsequent to December 26, 2018 , the Company made a $3.0 million pre-payment on the 2018 Revolver. The Company evaluated subsequent events that have occurred after December 26, 2018 , and determined that there were no other events or transactions occurring during this reporting period that require recognition or disclosure in the 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 one vendor for which amounts due at December 26, 2018 totaled 36% of the Company’s accounts payable. As of December 27, 2017 , the Company had one supplier for which amounts due totaled 14% of the Company’s accounts payable. Purchases from the Company’s largest supplier totaled 29% of the Company’s purchases for fiscal 2018 , 29% for fiscal 2017 and 33% for fiscal 2016 with no amounts payable at December 26, 2018 or December 27, 2017. In fiscal 2018 , 2017 and 2016 , Company-operated and franchised restaurants in the greater Los Angeles area generated, in the aggregate, approximately 69% , 73% , and 75% , respectively, of total revenue. Two franchisees accounted for 40% of total accounts receivable as of December 26, 2018 and December 27, 2017. Management believes the loss of the significant supplier or franchisee could have a material adverse effect on the Company's consolidated results of operations and financial condition. Accounts and Other Receivables, Net Accounts and other receivables consist primarily of royalties, advertising and sublease rent and related amounts receivable from franchisees. Such receivables are due on a monthly basis, which may differ from the Company’s fiscal month-end dates. Accounts and other receivables also include credit/debit card receivables. The need for an allowance for doubtful accounts is reviewed on a specific identification basis and takes into consideration past due balances and the financial strength of the obligor. Bad debt expense was immaterial for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 . Inventories Inventories consist principally of food, beverages and paper supplies and are valued at the lower of average cost or net realizable value. Property and Equipment Owned, Net Property and equipment is stated at cost and is depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements and property held under capital leases are amortized over the shorter of their estimated useful lives or the remaining lease terms. For leases with renewal periods at the Company’s option, the Company generally uses the original lease term, excluding the option periods, to determine estimated useful lives; if failure to exercise a renewal option imposes an economic penalty on the Company, such that management determines at the inception of the lease that renewal is reasonably assured, the Company may include the renewal option period in the determination of appropriate estimated useful lives. The estimated useful service lives are as follows: Buildings 20 years Land improvements 3—30 years Building improvements 3—10 years Restaurant equipment 3—10 years Other equipment 2—10 years Leasehold improvements Shorter of useful life or lease term The Company capitalizes certain directly attributable costs in conjunction with site selection that relate to specific sites for planned future restaurants. The Company also capitalizes certain directly attributable costs, including interest, in conjunction with constructing new restaurants. These costs are included in property and amortized over the shorter of the life of the related buildings and leasehold improvements or the lease term. Costs related to abandoned sites and other site selection costs that cannot be identified with specific restaurants are charged to general and administrative expenses in the accompanying consolidated statements of operations, and were $0.3 million , $0.5 million and $0.5 million for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively. The Company capitalized internal costs related to site selection and construction activities of $1.3 million , $1.9 million and $1.6 million for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively. Capitalized internal interest costs related to site selection and construction activities were $0.2 million , $0.2 million and $0.2 million for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment on a restaurant-by-restaurant basis whenever events or changes in circumstances indicate that the carrying value of certain assets may not be recoverable. The Company considers a triggering event to have occurred related to a specific restaurant if the restaurant’s cash flows for the last twelve months are less than a minimum threshold or if consistent levels of undiscounted cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. If the Company concludes that the carrying value of certain assets will not be recovered based on expected undiscounted future cash flows, an impairment write-down is recorded to reduce the assets to their estimated fair value. The fair value is measured on a nonrecurring basis using unobservable (Level 3) inputs. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods, and such charges could be material. Based on the results of this analysis, the Company recorded non-cash impairment charges of $5.1 million for the year ended December 26, 2018 , primarily related to the carrying value of the assets of four restaurants in Arizona, California and Texas, including a restaurant in Texas that opened in early 2018. In fiscal 2017 the company recorded a non-cash impairment charge of $32.6 million , primarily related to the carrying value of 23 restaurants in Arizona, California and Texas. The impairment expense for fiscal 2017 includes an impairment expense of $27.7 million , representing the entire value of capitalized assets of all of the company-operated restaurants in Texas, net of previously recorded depreciation. Factors which led to the impairment of the Texas restaurants included operating results, which indicated that the restaurants did not achieve the sales volumes required to generate positive cash flows or improve profitability in the Texas market, along with the related future cash flow assumptions, including comparable sales rate growth and restaurant operating costs, over the remaining lease terms and the age of the restaurants in Texas. The restaurants in Texas began opening in late 2014, causing a higher net book value at the time of impairment testing, and increased difficulty projecting results for newer restaurants in newer markets. Given the difficulty in projecting results for newer restaurants in newer markets, we are also monitoring the recoverability of the carrying value of the assets of several other restaurants on an ongoing basis, including those in the Arizona and Northern California market. For these restaurants, if expected performance improvements are not realized, an impairment charge may be recognized in future periods, and such charge could be material. In fiscal 2016 the Company recorded a non-cash impairment charge of $8.4 million , primarily related to the carrying value of the assets of nine restaurants in Arizona, California and Texas. 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 the Acquisition and from the acquisition of certain franchise locations. 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 by comparing the fair value of a reporting unit with its carrying amount. An impairment test consists of either a qualitative assessment or a comparison of the fair value of a reporting unit with its carrying amount. 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 an impairment test is performed which determines the carrying amount of a reporting unit is greater than its fair value, an impairment charge will be recognized for the amount by which the carrying amount of a reporting unit is greater than its fair value, up to the amount of its allocated goodwill. 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. Although the Company recognized expense related to the impairment of the assets of 4 restaurants during the year ended December 26, 2018 , upon completion of the qualitative assessment, the Company did not identify any indicators of potential impairment for its goodwill or indefinite-lived intangible assets. Furthermore, the Company did not identify any indicators of potential impairment during the years ended December 27, 2017 or December 28, 2016 , and thus no impairment was recorded. Other Intangibles, Net—Definite Lived Definite lived intangible assets and liabilities consist of the value allocated to the Company’s favorable and unfavorable leasehold interests that resulted from the Acquisition. Favorable leasehold interest represents the asset in excess of the approximate fair market value of the leases assumed as of November 17, 2005, the date of the Acquisition. The amount is being reduced over the remaining life of the leases. This amount is shown as other intangible assets, net, on the accompanying consolidated balance sheets. Unfavorable leasehold interest liability represents the liability in excess of the approximate fair market value of the leases assumed as of November 17, 2005, the date of the Acquisition. The amount is being reduced over the remaining life of the leases. This amount is shown as other intangible liabilities, net, on the accompanying consolidated balance sheets. Intangible assets and liabilities with a definite life are amortized using the straight-line method over the remaining useful lives at the date of acquisition as follows: Favorable leasehold interests 1 to 18 years (remaining lease term) Unfavorable leasehold interest liability 1 to 20 years (remaining lease term) Deferred Financing Costs Deferred financing costs are capitalized and amortized over the period of the loan on a straight-line basis, which approximates the effective interest method. Transaction costs of $0.8 million were incurred in connection with the July 13, 2018 refinancing and were capitalized during fiscal 2018. Included in other assets are deferred financing costs (net of accumulated amortization), related to the revolver, of $1.1 million and $0.6 million as of December 26, 2018 and December 27, 2017 , respectively. Amortization expense for deferred financing costs was $0.3 million , $0.3 million and $0.3 million for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively, and is reflected as a component of interest expense in the accompanying consolidated statements of operations. Insurance Reserves The Company is responsible for workers’ compensation, general and health insurance claims up to a specified aggregate stop loss amount. The Company maintains a reserve for estimated claims both reported and incurred but not reported, based on historical claims experience and other assumptions. At December 26, 2018 and December 27, 2017 , the Company had accrued $7.1 million and $5.9 million , respectively, and such amounts are reflected as accrued insurance in the accompanying consolidated balance sheets. The expense for such reserves for the years ended December 26, 2018 , December 27, 2017 and December 28, 2016 , totaled $8.0 million , $6.8 million , and $7.2 million , respectively. These amounts are included in labor and related expenses and general and administrative expenses on the accompanying consolidated statements of operations. Restaurant Revenue Revenues from the operation of company-operated restaurants are recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale. The Company presents sales net of sales-related taxes and promotional allowances. Promotional allowances amounted to approximately $8.8 million , $8.9 million and $7.4 million during the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively. The Company offers a loyalty rewards program, which awards a customer one point for every $1 spent. When 100 points are accumulated a $10 reward to be used on future purchases is earned. When a customer is part of the rewards program, the obligation to provide future discounts related to points earned is considered a separate performance obligation, to which a portion of the transaction price is allocated. The performance obligation related to loyalty points is deemed to have been satisfied, and the amount deferred in the balance sheet is recognized as revenue, when the points are transferred to a $10 reward and redeemed, or the likelihood of redemption is remote. A portion of the transaction price is allocated to loyalty points, if necessary, on a pro-rata basis, based on stand-alone selling price, as determined by menu pricing and loyalty point terms. As of December 26, 2018 and December 27, 2017 , the revenue allocated to loyalty points that have not been redeemed are $1.0 million and $0.4 million , respectively, which are reflected in the Company's accompanying consolidated balance sheets within other accrued expenses and current liabilities. The Company expects the loyalty points to be redeemed and recognized over a one year period. The Company sells gift cards to its customers in the restaurants and through selected third parties. The gift cards sold to customers have no stated expiration dates and are subject to actual and/or potential escheatment rights in several of the jurisdictions in which the Company operates. Furthermore, due to these escheatment rights, the Company does not recognize breakage related to the sale of gift cards due to the immateriality of the amount remaining after escheatment. The Company recognizes income from gift cards when redeemed by the customer. Advertising Costs Advertising expense is recorded as the obligation to contribute to the advertising fund is accrued, generally when the associated revenue is recognized. Advertising expense, which is a component of occupancy and other operating expenses, was $16.1 million , $15.5 million and $14.7 million for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively, and is in addition to $21.2 million , $20.5 million and $19.3 million , respectively, funded by the franchisees’ advertising fees. Franchisees pay a monthly fee to the Company that ranges from 4% to 5% of their restaurants’ net sales as reimbursement for advertising, public relations and promotional services the Company provides. Fees received in advance of provided services are included in other accrued expenses and current liabilities and were $0.3 million and $1.0 million at December 26, 2018 and December 27, 2017 , respectively. Fees received subsequent to provided service are included in accounts receivable and current assets and were nil at December 26, 2018 and December 27, 2017 . Pursuant to the Company’s Franchise Disclosure Document, company-operated restaurants contribute to the advertising fund on the same basis as franchised restaurants. At December 26, 2018 , the Company was obligated to spend $0.3 million more in future periods to comply with this requirement. Production costs of commercials, programming and other marketing activities are charged to the advertising funds when the advertising is first used for its intended purpose. Total contributions and other marketing expenses are included in general and administrative expenses in the accompanying consolidated statements of operations. Preopening Costs Preopening costs incurred in connection with the opening of new restaurants are expensed as incurred. Preopening costs, which are included in general and administrative expenses on the accompanying consolidated statements of operations, were $0.8 million , $2.0 million and $2.6 million for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively. Gift Cards The Company sells gift cards to its customers in the restaurants and through selected third parties. The gift cards sold to customers have no stated expiration dates and are subject to actual and/or potential escheatment rights in several of the jurisdictions in which the Company operates. The Company recognizes income from gift cards when redeemed by the customer. Operating Leases Rent expense for the Company’s operating leases, which generally have escalating rents over the term of the lease, is recorded on a straight-line basis over the expected lease term. The lease term begins when the Company has the right to control the use of the leased property, which is typically before rent payments are due under the terms of the lease. Rent expense is included in occupancy and other operating expenses on the consolidated statements of operations. The difference between rent expense and rent paid is recorded as deferred rent, which is included in current liabilities and other noncurrent liabilities in the accompanying consolidated balance sheets. Percentage rent expenses are recorded based on estimated sales or gross margin for respective restaurants over the contingency period. Any leasehold improvements that are funded by lessor incentives under operating leases are recorded as leasehold improvements and amortized over the expected lease term. Such incentives are also recorded as deferred rent and amortized as reductions to rent expense over the expected lease term. Gain on Recovery of Insurance Proceeds In November 2015, one of the Company’s restaurants incurred damage resulting from a fire. In fiscal 2016, we incurred costs directly related to the fire of less than $0.1 million , disposed of assets of an additional $0.1 million and recognized gains of $0.7 million , related to the reimbursement of property and equipment and expenses incurred and $0.5 million related to the reimbursement of lost profits. The reimbursement of lost profits is included in the accompanying consolidated statements of operations, for fiscal 2016, as a reduction of company restaurant expenses. The Company received from the insurance company cash of $1.4 million , net of the insurance deductible, during fiscal 2016. The restaurant was reopened for business on March 14, 2016. Recovery of Securities Class Action Legal Expense During fiscal 2018 and 2017 , the Company received insurance proceeds of $8.4 million and $1.7 million , respectively, related to the reimbursement of certain legal expenses paid in prior years for the defense of securities lawsuits. See "Note 13. Commitments and Contingencies—Legal Matters." 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 basis 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 a charge to tax expense to reserve the portion of the deferred tax assets which are not expected to be realized. The Company reviews its filing positions for all open tax years in all U.S. federal and state jurisdictions where it 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%. 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 as the largest amount of tax benefit that is greater than 50% 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 or penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties at December 26, 2018 or December 27, 2017 , and did not recognize interest or penalties during the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , since there were no material unrecognized tax benefits. Management believes no material change to the amount of unrecognized tax benefits will occur within the next twelve months. On July 30, 2014, the Company entered into the TRA with the stockholders of the Company immediately prior to the initial public offering ("IPO") which 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. As of December 26, 2018 and December 27, 2017 , the Company had accrued $13.9 million and $22.0 million , respectively relating to expected TRA payments. In fiscal 2018 , 2017 and 2016 , we paid $7.3 million , $11.1 million and $3.2 million , respectively, to our pre-IPO stockholders under the TRA. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: • Level 1: Quoted prices for identical instruments in active markets. • Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs or significant value drivers are observable. • Level 3: Unobservable inputs used when little or no market data is available. As of December 26, 2018 and December 27, 2017 , the Company had no assets and liabilities measured at fair value on a recurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis. In other words, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). The following non-financial instruments were measured at fair value, on a nonrecurring basis, as of and for the year ended December 26, 2018 (in thousands): Fair Value Measurements Using Total Level 1 Level 2 Level 3 Impairment Losses Property and equipment owned, net $ 449 $ — $ — $ 449 $ 5,147 The following non-financial instruments were measured at fair value, on a nonrecurring basis, as of and for the year ended December 27, 2017 (in thousands): Fair Value Measurements Using Total Level 1 Level 2 Level 3 Impairment Losses Property and equipment owned, net $ — $ — $ — $ — $ 32,594 The following non-financial instruments were measured at fair value, on a nonrecurring basis, as of and for the year ended December 28, 2016 (in thousands): Fair Value Measurements Using Total Level 1 Level 2 Level 3 Impairment Losses Property and equipment owned, net $ 1,614 $ — $ — $ 1,614 $ 8,400 During fiscal 2018 , 2017 and 2016 , the Company recorded $5.1 million , $32.6 million and $8.4 million , respectively, of expenses related to the impairment of assets. This was primarily related to the carrying value of the assets of four restaurants, in Arizona, California and Texas during fiscal 2018 , the carrying value of the assets of 21 restaurants in Arizona, California and Texas, as well as the strategic decision to close two restaurants in Texas, in fiscal 2017 and nine restaurants in Arizona, California and Texas in fiscal 2016 . These impairment charges resulted primarily from our annual impairment testing of long-lived assets, except for the two restaurant closings in Texas in fiscal 2017 noted above. The fair value measurements used in these impairment evaluations were based on discounted cash flow estimates using unobservable Level 3 inputs, based on market assumptions. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and certain accrued expenses approximate fair value due to their short-term maturities. The recorded value of the TRA approximates fair value, based on borrowing rates currently available to the Company for debts with similar terms and remaining maturities (Level 3 measurement). Stock Based Compensation Accounting literature requires the recognition of compensation expense using a fair-value based method for costs related to all share-based payments including stock options and restricted stock issued under the Company’s employee stock plans. The guidance also requires companies to estimate the fair value of stock option awards on the date of grant using an option pricing model, which require the input of subjective assumptions. The Company is required to use judgment in estimating the amount of stock-based awards that are expected to be forfeited. If actual forfeitures diffe |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 26, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT The costs and related accumulated depreciation and amortization of major classes of property are as follows (in thousands): December 26, 2018 December 27, 2017 Land $ 12,323 $ 12,323 Buildings and improvements 156,806 124,056 Other property and equipment 76,061 64,712 Construction in progress 2,989 8,225 248,179 209,316 Less: accumulated depreciation and amortization (144,034 ) (106,522 ) $ 104,145 $ 102,794 Depreciation expense was $17.8 million , $18.1 million and $16.1 million for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively. Based on the Company’s review of its long-lived assets for impairment, the Company recorded non-cash impairment charges of $5.1 million , $32.6 million and $8.4 million for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively. |
Trademarks, Other Intangible As
Trademarks, Other Intangible Assets and Liabilities | 12 Months Ended |
Dec. 26, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Trademarks, Other Intangible Assets and Liabilities | TRADEMARKS, OTHER INTANGIBLE ASSETS AND LIABILITIES Domestic trademarks consist of the following (in thousands): December 26, 2018 December 27, 2017 Cost $ 120,700 $ 120,700 Accumulated impairment charges (58,812 ) (58,812 ) Trademarks, net $ 61,888 $ 61,888 Other intangible assets subject to amortization consist of the following (in thousands): December 26, 2018 December 27, 2017 Favorable leasehold interest $ 6,038 $ 6,038 Less: accumulated amortization (5,758 ) (5,661 ) Total favorable leasehold interest, net $ 280 $ 377 Unfavorable leasehold interest liability $ (9,156 ) $ (9,156 ) Less: accumulated amortization 8,514 8,370 Unfavorable leasehold interest liability, net $ (642 ) $ (786 ) The estimated net amortization credits (net liability) for the Company’s favorable and unfavorable leasehold interests for each of the five succeeding fiscal years and thereafter is as follows (in thousands): For the Years Ending Favorable Leasehold Interest Unfavorable Leasehold Interest December 25, 2019 $ 94 $ (136 ) December 30, 2020 85 (123 ) December 29, 2021 64 (120 ) December 28, 2022 37 (107 ) December 28, 2023 — (100 ) Thereafter — (56 ) Total $ 280 $ (642 ) The aggregate amortization expense for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 was less than $0.1 million for fiscal 2018 and $0.1 million , in each of fiscal 2017 and fiscal 2016. The remaining weighted average amortization periods of the favorable leasehold interest and the unfavorable leasehold liability are two years and three years respectively. |
Leases
Leases | 12 Months Ended |
Dec. 26, 2018 | |
Leases [Abstract] | |
Leases | LEASES The Company’s operations utilize property, facilities, equipment and vehicles owned by the Company or leased from others. Buildings and facilities leased from others are primarily for restaurants and support facilities. Restaurants are operated under lease arrangements that generally provide for a fixed base rent and, in some instances, contingent rent based on a percentage of gross operating profit or net revenues in excess of a defined amount. Initial terms of land and restaurant building leases generally have terms of 20 years , exclusive of options to renew. Leases of equipment primarily consist of restaurant equipment, computer systems and vehicles. The Company subleases facilities to certain franchisees and other non-related parties which are recorded on a straight-line basis. Information regarding the Company’s future lease obligations at December 26, 2018 is as follows (in thousands): Capital Leases Operating Leases For the Years Ending Minimum Lease Payments Minimum Lease Payments Minimum Sublease Income December 25, 2019 $ 95 $ 25,388 $ 1,443 December 30, 2020 54 24,437 1,108 December 29, 2021 54 23,342 1,078 December 28, 2022 45 22,338 1,001 December 28, 2023 — 20,634 989 Thereafter — 150,342 2,612 Total $ 248 $ 266,481 $ 8,231 Less: imputed interest (11.0% to 11.1%) (64 ) Present value of capital lease obligations 184 Less: current maturities (68 ) Noncurrent portion $ 116 Net rent expense is as follows (in thousands): For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Base rent $ 25,591 $ 24,384 $ 22,089 Contingent rent 282 259 209 Less: sublease income (2,218 ) (2,334 ) (2,540 ) Net rent expense $ 23,655 $ 22,309 $ 19,758 Base rent and contingent rent are included in occupancy and other operating expenses, while sublease income is included in franchise revenue in the accompanying consolidated statements of operations. Sublease income includes contingent rental income of $0.7 million , $0.8 million , and $1.0 million for fiscal 2018 , 2017 , and 2016 , respectively. The Company is a lessor for certain property, facilities and equipment owned by the Company and leased to others, principally franchisees, under noncancelable leases with initial terms ranging from 3 to 20 years. The lease agreements generally provide for a fixed base rent and, in some instances, contingent rent based on a percentage of gross operating profit or net revenues. Total rental income included in franchise revenue in the accompanying consolidated statements of operations for leased property was $0.5 million , $0.5 million and $0.5 million for fiscal 2018 , 2017 , and 2016 , respectively. Minimum future rental income for company-owned properties under noncancelable operating leases, which is recorded on a straight-line basis, in effect as of December 26, 2018 , is as follows (in thousands): For the Years Ending December 25, 2019 $ 334 December 30, 2020 349 December 29, 2021 301 December 28, 2022 276 December 28, 2023 276 Thereafter 2,673 Total future minimum rental income $ 4,209 |
Current Credit Agreements
Current Credit Agreements | 12 Months Ended |
Dec. 26, 2018 | |
Debt Disclosure [Abstract] | |
Current Credit Agreements | CURRENT 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 provided for the $200.0 million five -year 2014 Revolver. The 2014 Revolver included a sub limit of $15.0 million for letters of credit and a sub limit of $15.0 million for swingline loans. On July 13, 2018 , the Company refinanced the 2014 Revolver, pursuant to the 2018 Credit Agreement among EPL, as borrower, and the Company and Intermediate, as guarantors, 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 the $150.0 million five -year 2018 Revolver. The 2018 Revolver includes a sub limit of $15.0 million for letters of credit and a sub limit of $15.0 million for swingline loans. The obligations under the 2018 Credit Agreement and related loan documents are guaranteed by the Company and Intermediate. The obligations of the Company, EPL and Intermediate under the 2018 Credit Agreement and related loan documents are secured by a first priority lien on substantially all of their respective assets. Borrowings under the 2018 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 published Bank of America prime rate, or (c) LIBOR plus 1.00% . For LIBOR loans, the margin is in the range of 1.25% to 2.25% , and for base rate loans the margin is in the range of 0.25% to 1.25% . For borrowings under both the 2014 Revolver and the 2018 Revolver during fiscal 2018 , the interest rate range was 3.3% to 4.0% . For borrowings under the 2014 Revolver during fiscal 2017 , the interest rate range was 2.4% to 3.3% . The interest rate under the 2018 Revolver was 4.0% at December 26, 2018 and 3.3% under the 2014 Revolver at December 27, 2017 . The 2018 Credit Agreement contains certain financial covenants. The Company was in compliance with all such covenants at December 26, 2018 . See Note 1 for restrictions on the payment of dividends under the 2018 Credit Agreement. At December 26, 2018 , $8.5 million of letters of credit and $74.0 million of the revolving line of credit were outstanding. The amount available under the revolving line of credit was $67.5 million at December 26, 2018 . Maturities On July 13, 2018, the Company refinanced the 2014 Revolver pursuant to the 2018 Credit Agreement. The 2018 Revolver and 2018 Credit Agreement will mature on July 13, 2023 . There are no required principal payments prior to maturity for the 2018 Revolver. |
Other Accrued Expenses and Curr
Other Accrued Expenses and Current Liabilities | 12 Months Ended |
Dec. 26, 2018 | |
Payables and Accruals [Abstract] | |
Other Accrued Expenses and Current Liabilities | OTHER ACCRUED EXPENSES AND CURRENT LIABILITIES Other accrued expenses and current liabilities consist of the following (in thousands): December 26, 2018 December 27, 2017 Accrued sales and property taxes $ 5,016 $ 4,792 Accrued legal settlements and professional fees 38,639 1,544 Gift card liability 2,512 2,319 Other 5,597 4,615 Total other accrued expenses and current liabilities $ 51,764 $ 13,270 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 12 Months Ended |
Dec. 26, 2018 | |
Payables and Accruals [Abstract] | |
Other Noncurrent Liabilities | OTHER NONCURRENT LIABILITIES Other noncurrent liabilities consist of the following (in thousands): December 26, 2018 December 27, 2017 Deferred rent $ 10,660 $ 9,403 Deferred franchise and development fees 5,224 — Other 4,140 3,369 Total noncurrent liabilities $ 20,024 $ 12,772 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes is based on the following components (in thousands): For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Current income taxes: Federal $ — $ — $ — State 220 250 224 Total current 220 250 224 Deferred income taxes: Federal (3,526 ) 1,495 9,660 State 98 192 2,730 Total deferred (3,428 ) 1,687 12,390 Charge in lieu of tax (attributable to stock options) — — 169 Adjustment to deferred taxes for tax rate change — (1,440 ) — Tax provision for income taxes $ (3,208 ) $ 497 $ 12,783 On December 22, 2017 the U.S government enacted the Tax Act. The Tax Act reduces the corporate tax rate to from 35% to 21% , effective for tax years beginning January 1, 2018. The Company is subject to the provisions of ASC 740, Income Taxes, which requires that the effect on deferred tax assets and liabilities of a change in tax rates be recognized in the period the tax rate change was enacted. The enacted reduction in the corporate federal income tax rate resulted in a re-measurement of the Company’s net deferred tax assets and liabilities with a one-time, non-cash increase to income tax benefit. Consequently, we recorded a decrease related to deferred tax assets and deferred tax liabilities of $12.1 million and $13.5 million , respectively, with a net benefit to deferred income tax expense of $1.4 million for the year ended December 27, 2017 . In addition, under the new tax law, the corporate alternative minimum tax (“AMT”) is repealed effective for tax years beginning January 1, 2018. For tax years beginning in 2018, 2019 and 2020, to the extent AMT credit carryovers exceed regular tax liability, 50% of the excess of AMT credit carryovers would be refundable. Any remaining AMT credits would be fully refundable in 2021. The provision for income taxes differs from the amount computed by applying the federal income tax rate of 21.0% for fiscal 2018 and 35.0% for both fiscal 2017 and fiscal 2016 as follows: For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Statutory federal income tax rate applied to 21.0 % 35.0 % 35.0 % TRA expense 1.3 (21.4 ) 0.4 Revaluation of deferred taxes — (15.8 ) — Change in valuation allowance (6.9 ) 10.9 1.3 WOTC Credit 3.3 (2.5 ) (0.8 ) State tax benefit (net of federal benefit) 5.0 0.6 5.0 Stock option exercises 2.1 — — Other 0.5 (1.3 ) 0.2 Total 26.3 % 5.5 % 41.1 % Deferred income tax assets and liabilities are recorded for differences between the financial statement and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company has evaluated the available evidence supporting the realization of its gross deferred tax assets. After evaluating all of the positive and negative evidence, including the Company’s continued income from operations, the Company concluded that it is more likely than not that its deferred tax assets will be realized. Beginning in fiscal 2015 and 2016, the Company recorded a valuation allowance against its deferred tax assets resulting from certain tax credits that may not be realizable prior to the time the credits expire. As of December 28, 2016 , the Company's total valuation allowance was $3.3 million . In fiscal 2017 and 2018 , the Company recorded an additional $1.0 million and $0.8 million , respectively to the valuation allowance. As of December 26, 2018 the total valuation allowance was $5.1 million . On July 30, 2014, the Company entered into the TRA. The TRA calls for the Company to pay its pre-IPO stockholders 85% of the cash savings that the Company realizes in its taxes as a result of utilizing its NOLs and other tax attributes attributable to preceding periods. The TRA charge (benefit) expense is a permanent add-back to the Company’s taxable income. TRA resulted in approximately $0.8 million of benefit in fiscal 2018 as a result of changes to future forecasted results and timing of deductibility of certain temporary differences including the current year settlement accrual, $5.6 million of benefit in fiscal 2017 as a result of a reduction in the federal corporate income tax rate related to tax reforms discussed further below, and $0.4 million of tax expense in fiscal 2016 . In fiscal 2018 , we paid $7.3 million to our pre-IPO stockholders under the TRA. As of December 26, 2018 and December 27, 2017 , the deferred tax assets related to California Enterprise Zone credits, net of valuation allowances are $4.4 million and $5.4 million , respectively. The Company’s deferred tax assets and liabilities as of December 26, 2018 and December 27, 2017 are summarized below. The balances reflect the revaluation for the reduction in the Federal corporate rate to 21.0% . December 26, 2018 December 27, 2017 Deferred assets: Capital leases $ 53 $ 90 Accrued vacation 456 428 Accrued legal 10,343 — Deferred rent 3,788 3,516 Accrued workers’ compensation 1,660 1,450 Enterprise zone and other credits 13,001 12,722 Net operating losses 6,260 13,488 Fixed assets 3,374 4,176 Other 5,239 2,261 Total deferred tax assets 44,174 38,131 Valuation allowance (5,149 ) (4,306 ) Net deferred tax assets 39,025 33,825 Deferred liabilities: Goodwill (6,229 ) (6,037 ) Trademark (17,654 ) (17,613 ) Prepaid expense (528 ) (380 ) Fixed asset — — Other (2,905 ) (2,628 ) Deferred tax liabilities (27,316 ) (26,658 ) Net deferred tax asset $ 11,709 $ 7,167 The net deferred tax asset amounts above as of December 26, 2018 and December 27, 2017 have been classified in the accompanying consolidated balance sheets as noncurrent assets. As of December 26, 2018 , the Company has federal and state NOL carryforwards of approximately $29.8 million and less than $0.1 million , respectively, which expire beginning in 2032 and 2027, respectively. The Company also has state enterprise zone credits of approximately $10.9 million , which expire in 2023 , federal Work Opportunity Credits of approximately $1.4 million , which will expire in 2038 and federal and state AMT credits of approximately $0.5 million , which carry forward indefinitely. The utilization of NOL carryforwards may be subject to limitation under section 382 of the Internal Revenue Code of 1986 (the “Code”) and similar state law provisions. As of December 26, 2018 , December 27, 2017 , and December 28, 2016 , the Company had no accrual for unrecognized tax benefits. Consequently, no interest or penalties have been accrued by the Company. The Company believes that no significant changes to the amount of unrecognized tax benefits will occur within the next twelve months. The Company is subject to taxation in the United States and in various state jurisdictions. The Company is no longer subject to U.S. examination for years before 2014 by the federal taxing authority, and for years before 2013 by state taxing authorities. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 26, 2018 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company sponsors a defined contribution employee benefit plan that permits its employees, subject to certain eligibility requirements, to contribute up to 25% of their qualified compensation to the plan. The Company matches 100% of the employees’ contributions of the first 3% of the employees’ annual qualified compensation, and 50% of the employees’ contributions of the next 2% of the employees’ annual qualified compensation. The Company’s matching contribution immediately fully vests. The Company’s contributions to the plan for the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 were $0.8 million , $0.7 million and $0.6 million , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 26, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Stock Options At December 26, 2018 , options to purchase 2,102,404 shares of common stock of the Company were outstanding, including 1,722,455 vested and 379,949 unvested. Unvested options vest over time, or upon our achieving annual financial goals. However, the compensation committee of the board of directors, as administrator of the Company’s 2018 Omnibus Equity Incentive Plan, has the power to accelerate the vesting schedule of stock-based compensation, and, generally, in the event of an employee termination in connection with a change in control of the Company, any unvested portion of an award under the plan shall become fully vested. At December 26, 2018 , 1,381,010 premium options, options granted above the stock price at date of grant, remained outstanding. In fiscal 2018 and 2017 , the Company granted 311,272 and 135,036 options, respectively, with an exercise price equal to the fair market value of the common stock on the date of grant. The options granted in fiscal 2018 and 2017 had a four -year vesting period. On November 15, 2016, the board of directors approved the modification of the remaining performance based stock options granted in 2014 and 2013 to vest based solely on service conditions. As a result, a) 17,380 performance based stock options that did not vest in fiscal 2015 based on performance targets not being met, vested as of November 15, 2016; b) 80,799 performance based stock options that would not have vested based on 2016 performance targets vested as of December 28, 2016; and c) 17,378 performance based stock options that would not have vested based on the 2017 performance target vested at the end of fiscal 2017, subject to continued employment of the option holder and the other terms and conditions of the 2014 Stock Option Plan. The Company recorded $0.6 million as compensation expense in fiscal 2016 as a result of this stock option modification. As of December 26, 2018 , there were no remaining performance based stock options and 2,102,404 time based stock options outstanding. Stock options generally expire 10 years from the date of grant. Changes in stock options for the years ended December 26, 2018 and December 27, 2017 , are as follows: Shares Weighted-Average Exercise Price Outstanding - December 28, 2016 2,191,728 $ 7.26 Grants 135,036 13.73 Exercised (17,661 ) 5.26 Forfeited, cancelled or expired — — Outstanding - December 27, 2017 2,309,103 7.65 Grants 311,272 10.98 Exercised (269,549 ) 6.81 Forfeited, cancelled or expired (248,422 ) 12.46 Outstanding - December 26, 2018 2,102,404 $ 7.68 Vested and expected to vest at December 26, 2018 2,091,138 $ 7.66 Exercisable at December 26, 2018 1,722,455 $ 6.86 Stock options at December 26, 2018 are summarized as follows: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in Years) Weighted- Average Exercise Price Number Exercisable Weighted-Average Exercise Price $4.09 99,531 4.50 $ 4.09 99,531 $ 4.09 $5.84 1,381,010 3.52 5.84 1,381,010 $ 5.84 $9.65 - $13.95 482,831 8.89 11.59 102,882 $ 12.24 $15.00 139,032 5.58 15.00 139,032 $ 15.00 $4.09 - $15.00 2,102,404 4.93 $ 7.68 1,722,455 $ 6.86 The intrinsic value of options outstanding and options exercisable, calculated as the difference between the market value as of December 26, 2018 and the exercise price, is $15.5 million and $14.2 million , respectively. The intrinsic value of options exercised, calculated as the difference between the market value on the date of exercise and the exercise price, was $1.5 million , $0.2 million and $0.9 million for fiscal years 2018 , 2017 and 2016 , respectively. The Company measures and recognizes compensation expense for the estimated fair value of stock options for employees and non-employee directors and similar awards based on the grant-date fair value of the award. For options that are based on a service requirement, the cost is recognized on a straight-line basis over the requisite service period, usually the vesting period. For options that were based on performance requirements, costs were recognized over periods to which the performance criteria related. The Company has authorized 5,652,240 shares of common stock for issuance in connection with stock awards. As of December 26, 2018 , 1,495,767 shares were available for grant. In order to calculate our stock options’ fair values and the associated compensation costs for share-based awards, the Company utilizes the Black–Scholes option pricing model, and has developed estimates of various inputs including forfeiture rate, expected term, expected volatility, and risk-free interest rate. The forfeiture rate is based on historical rates and reduces the compensation expense recognized. The expected term for options granted is derived using the “simplified” method, in accordance with SEC guidance. The Company calculates the risk-free interest rate using the implied yield for a U.S. Treasury security with constant maturity and a remaining term equal to the expected term of the Company’s employee stock options. The Company does not anticipate paying any cash dividends for the foreseeable future and therefore uses an expected dividend yield of zero for option valuation purposes. Expected volatility is estimated using four publicly-traded companies in our market category. These are selected based on similarities of market capitalization, size, and other financial and operational characteristics. Volatility is calculated by taking the historical daily closing equity prices of our peer companies, prior to the grant date, over a period equal to the expected term. The weighted-average estimated fair value of employee stock options granted in fiscal 2018 was $3.78 per share using the Black–Scholes model with the following weighted-average assumptions used to value the option grants: expected volatility of 28.4% , expected term of 6.25 years , risk-free interest rate of 2.86% to 2.88% , and expected dividend yield of 0% . The weighted-average estimated fair value of employee stock options granted in fiscal 2017 was $4.29 per share using the Black–Scholes model with the following weighted-average assumptions used to value the option grants: expected volatility of 28.6% , expected term of 5.75 years , risk-free interest rates of 1.88% to 2.01% , and expected dividend yield of 0% . During the years ended December 26, 2018 , December 27, 2017 and December 28, 2016 , the Company recognized stock option compensation expense of $1.1 million , $0.6 million and $0.9 million , respectively. These expenses were included in general and administrative expenses consistent with the salary expense for the related optionees in the accompanying consolidated statements of operations. In connection with the retirement of our former President and Chief Executive Officer ("CEO") during fiscal 2018 , the Company modified previously granted equity awards to accelerate the vesting of 33,545 awards, which would have otherwise vested in May 2018, and extended the exercisability of all vested and outstanding options until the expiration of the original term of such awards. As a result, the Company incurred incremental stock-based compensation expense of $0.8 million for the year ended December 26, 2018 . As of December 26, 2018 , we had total unrecognized compensation expense of $1.3 million related to unvested stock options, which the Company expects to recognize over a weighted average period of 3.27 years . The above assumptions generally require significant judgment. If in the future we determine that another method is more reasonable, or if another method for calculating these input assumptions is prescribed by authoritative guidance, and, therefore, should be used to estimate volatility or expected term, the fair value calculated for our stock options could change significantly. Higher volatility and longer expected lives result in an increase to stock-based compensation expense determined at the date of grant. Stock-based compensation expense affects our general and administrative expense. We estimate our forfeiture rate based on an analysis of our actual forfeitures and will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior, and other factors. Changes in the estimated forfeiture rate can have a significant effect on reported stock-based compensation expense, as the cumulative effect of adjusting the rate for all expense amortization is recognized in the period the forfeiture estimate is changed. If a revised forfeiture rate is higher than the previously-estimated forfeiture rate, an adjustment is made that will result in a decrease to the stock-based compensation expense recognized in the financial statements. If a revised forfeiture rate is lower than the previously-estimated forfeiture rate, an adjustment is made that will result in an increase to the stock-based compensation expense recognized in the financial statements. The effect of forfeiture adjustments was insignificant in fiscal 2018 , 2017 and 2016 . We will continue to use significant judgment in evaluating the expected term, volatility, and forfeiture rate related to our stock-based compensation. Restricted Shares In fiscal 2018 and 2017 , 323,764 and 181,292 restricted share and restricted stock unit awards were granted, respectively, at the fair market value on the date of grant. These grants vest based on continued service over three years for directors and four years for employees. Included in the fiscal 2018 restricted stock award grants were 72,116 performance share units which vest over a minimum of one year and a maximum of five years . Performance share units are granted at fair market value on the date of grant and are subject to service-based and market-based vesting conditions. A portion of the performance share units satisfied their market-based vesting conditions during the fourth quarter of fiscal 2018 and will vest upon the satisfaction of their service condition in the second quarter of fiscal 2019. We base the amount of unearned compensation recorded on the fair market value of the awards on the date of issuance. In fiscal 2018 , 2017 , and 2016 the Company recognized share-based compensation expense of $1.0 million , $0.5 million , and $0.2 million , respectively. This expense was included in general and administrative expenses in the accompanying consolidated statements of operations. As of December 26, 2018 , there was total unrecognized compensation expense of $4.6 million related to unvested restricted share awards, which the Company expects to recognize over a weighted-average period of 3.06 years . Changes in restricted shares for the years ended December 26, 2018 and December 27, 2017 , are as follows: Shares Weighted-Average Fair Value Unvested shares at December 28, 2016 36,752 $ 15.42 Granted 181,292 $ 13.69 Released (10,527 ) $ 16.48 Forfeited, cancelled, or expired (10,875 ) $ 16.72 Unvested shares at December 27, 2017 196,642 $ 13.70 Granted 395,880 $ 10.22 Released (45,991 ) $ 13.86 Forfeited, cancelled, or expired (55,831 ) $ 13.42 Unvested shares at December 26, 2018 490,700 $ 10.91 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 26, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic EPS is calculated using the weighted-average number of shares of common stock outstanding during the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 . Diluted EPS 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 EPS data for the periods indicated, which are in thousands except for per share data. For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Numerator: Net (loss) income $ (8,994 ) $ 8,619 $ 18,339 Denominator: Weighted-average shares outstanding—Basic 38,574,553 38,453,347 38,357,805 Weighted-average shares outstanding—Diluted 38,574,553 39,086,676 39,026,950 Net (loss) income per share—Basic $ (0.23 ) $ 0.22 $ 0.48 Net (loss) income per share—Diluted $ (0.23 ) $ 0.22 $ 0.47 Anti-dilutive securities not considered in diluted EPS calculation 2,593,104 747,985 468,705 Below is a reconciliation of basic and diluted share counts. For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Weighted-average shares outstanding—Basic 38,574,553 38,453,347 38,357,805 Dilutive effect of stock options and restricted shares — 633,329 669,145 Weighted-average shares outstanding—Diluted 38,574,553 39,086,676 39,026,950 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 26, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES 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, under the caption Elliott Olvera, et al v. El Pollo Loco, Inc., et al (Case No. 30-2014-00707367-CU-OE-CXC) (the "Olvera Action") 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 court recently certified two classes of plaintiffs - one class encompasses restaurant employees who were not provided proper rest breaks because they were not allowed to leave the premises during their breaks and the other class encompasses restaurant employees who were required to wait at the restaurant after they finished working for the night until the manager set the alarm for safety purposes. The parties reached a settlement in principle on January 24, 2019 of all claims brought on behalf of the 32,000+ putative class members in the Olvera Action, as well as all claims for failure to pay overtime compensation, failure to provide meal periods and rest breaks, and failure to provide itemized wage statements brought in the class actions captioned Martha Perez v. El Pollo Loco, Inc. (Los Angeles Superior Court Case No. BC624001), Maria Vega, et al. v. El Pollo Loco, Inc. (Los Angeles Superior Court Case No. BC649719), and Gonzalez v. El Pollo Loco, Inc. (Los Angeles Superior Court Case No. BC712867). The settlement reached in principle in the Olvera , Perez , Vega , and Gonzalez actions resolves all potential claims from April 12, 2010 through April 1, 2019 El Pollo Loco restaurant employees may have against El Pollo Loco for failure to pay for all compensation owed, failure to pay overtime compensation, failure to provide meal periods and rest breaks, and failure to provide itemized wage statements, among other wage and hour related claims. A $16.3 million accrual of an expected settlement amount related to this matter was recorded as of December 26, 2018. Purported class actions alleging wage and hour violations are commonly filed against California employers. The Company fully expects to have to defend against similar lawsuits in the future. Daniel Turocy, et al. v. El Pollo Loco Holdings, Inc., et al. (Case No. 8:15-cv-01343) was filed in the United States District Court for the Central District of California on August 24, 2015, and Ron Huston, et al. v. El Pollo Loco Holdings, Inc., et al. (Case No. 8:15-cv-01710) was filed in the United States District Court for the Central District of California on October 22, 2015. The two lawsuits have been consolidated, with co-lead plaintiffs and class counsel. A consolidated complaint was filed on January 29, 2016, on behalf of co-lead plaintiffs and others similarly situated, alleging violations of federal securities laws in connection with Holdings common stock purchased or otherwise acquired and the purchase of call options or the sale of put options, between May 1, 2015 and August 13, 2015 (the “Class Period”). The named defendants are Holdings; Stephen J. Sather, Laurance Roberts, and Edward J. Valle (collectively, the “Individual Defendants”); and Trimaran Pollo Partners, LLC, Trimaran Capital Partners, and Freeman Spogli & Co. (collectively, the “Controlling Shareholder Defendants”). Among other things, Plaintiffs allege that, in 2014 and early 2015, Holdings suffered losses due to rising labor costs in California and, in an attempt to mitigate the effects of such rising costs, removed a $5 value option from the Company's menu, which resulted in a decrease in traffic from value-conscious consumers. Plaintiffs further allege that during the Class Period, Holdings and the Individual Defendants made a series of materially false and misleading statements that concealed the effect that these factors were having on store sales growth, resulting in Holdings stock continuing to be traded at artificially inflated prices. As a result, Plaintiffs and other members of the putative class allegedly suffered damages in connection with their purchase of Holdings’ stock during the Class Period. In addition, Plaintiffs allege that the Individual Defendants and Controlling Shareholder Defendants had direct involvement in, and responsibility over, the operations of Holdings, and are presumed to have had, among other things, the power to control or influence the transactions giving rise to the alleged securities law violations. In both cases, Plaintiffs seek an unspecified amount of damages, as well as costs and expenses (including attorneys’ fees). On July 25, 2016, the Court issued an order granting, without prejudice, Defendants’ Motion to Dismiss plaintiff’s complaint for failure to state a claim. Plaintiffs were granted leave to amend their complaint, and filed an amended complaint on August 22, 2016. Defendants moved to dismiss the amended complaint, and on March 20, 2017, the Court dismissed the amended complaint and granted Plaintiffs leave to file another amended complaint. Plaintiffs filed another amended complaint on April 17, 2017. Defendants filed a motion to dismiss the amended complaint on or about May 17, 2017. The Court denied Defendants' motion to dismiss the third amended complaint on August 4, 2017. On December 8, 2017, Plaintiffs filed a motion for class certification, and on July 3, 2018, the Court granted Plaintiffs’ motion and certified a class as to all of Plaintiffs’ claims. Defendants filed a petition for appellate review of a portion of the Court's July 3, 2018 class certification order. On October 19, 2018 the Ninth Circuit Court of Appeals denied the petition. On January 23, 2019, the parties filed a Notice of Settlement and Joint Request for Order to Stay Proceedings, stating the parties have reached an agreement in principle to settle the claims and allegations in the action and are negotiating the terms of a Stipulation of Settlement. On January 24, 2019, the Court ordered that all proceedings in the action be stayed until April 3, 2019, on or before which the parties are to file a Stipulation of Settlement and a motion for preliminary approval of the settlement. Defendants maintain that the Plaintiffs' claims are without merit, and have entered into the settlement to eliminate the uncertainties, burden and expense of further protracted litigation. A $20.0 million accrual of an expected settlement amount related to this matter was recorded as of December 26, 2018. 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., under the caption Armen Galustyan v. Sather, et al. (Case No. 11676-VCL). 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. A second purported Holdings shareholder filed a derivative complaint on or about September 23, 2016, under the caption Diep v. Sather , CA 12760-VCL in the Delaware Court of Chancery. The Diep action is also purportedly brought on behalf of Holdings, names the same defendants and asserts substantially the same claims on substantially the same alleged facts as does Galustyan . Defendants moved to stay or dismiss the Diep action. On March 17, 2017, the Delaware court granted in part, and denied in part, the motion to stay the Diep action. The court denied defendants' motion to dismiss the complaint for failure to state a claim. On January 17, 2018, the court entered an order granting the parties’ stipulation staying all proceedings in the Diep action for five months or until the completion of an investigation of the allegations in the action by a special litigation committee of the Holdings board of directors (the "SLC"). On February 13, 2019, after concluding its investigation, the SLC filed a motion to dismiss the Diep action. The SLC filed its investigative report under seal as an exhibit to the motion to dismiss. Janice P. Handlers-Bryman and Michael D. Bryman v. El Pollo Loco, Inc. , Los Angeles Superior Court (Case No. MC026045) (the “Lancaster Lawsuit”) was filed on February 9, 2016. Existing El Pollo Loco franchisees, Janice P. Handlers-Bryman and Michael D. Bryman, as individuals and in their capacities as trustees of the Handlers Bryman Trust (collectively, “Plaintiffs”), filed suit against us alleging, among other things, that we “imposed unreasonable time limitations” on their development of additional restaurant locations in Lancaster, California, and that we thereafter developed company-operated El Pollo Loco restaurants in the “market area” of Plaintiffs’ existing El Pollo Loco restaurant in Lancaster. Plaintiffs asserted claims against us for, among other things, (i) breach of the implied covenant of good faith and fair dealing, (ii) intentional interference with prospective business, and (iii) unfair business practices. In addition to an unspecified amount of damages and costs of the lawsuit, Plaintiffs sought reformation of the contract, declaratory relief, disgorgement of alleged revenues and profits, injunctive relief, and a judicial mandate requiring us to either transfer the company-operated locations to Plaintiffs or to continuously disgorge to Plaintiffs the unjust enrichment allegedly obtained by us through the operation of the company-operated restaurants in Lancaster. We denied Plaintiffs’ allegations as the franchise agreement did not grant Plaintiffs any exclusive territorial rights and, instead, expressly reserved for us the right to open and operate - and the right to grant others the right to open and operate - El Pollo Loco restaurants “in the immediate vicinity of or adjacent to” Plaintiffs’ restaurant in Lancaster. On June 7, 2016, we filed a cross-complaint against Plaintiffs for breach of the franchise agreement due to Plaintiffs’ failure to pay to us liquidated damages provided for in the franchise agreement in connection with their solicitation and/or hiring of our general manager. This counterclaim was voluntarily dismissed by us, without prejudice, on February 27, 2017 and a related action before the San Bernardino Superior Court, titled El Pollo Loco, Inc. v. EPL 3766, Inc., was dismissed on April 6, 2017. On April 24, 2017, four days before the commencement of trial, Plaintiffs filed a voluntary dismissal, without prejudice, of the Lancaster Lawsuit without any payment or other concession by us. The corresponding dismissal was entered by the court on April 25, 2017. On May 22, 2017, Plaintiffs filed a motion for relief from the dismissal which was granted by the court on June 29, 2017. The trial in the case was bifurcated between the liability and damages phases. The liability phase commenced on November 16, 2017. The only cause of action that the court allowed to go to the jury was the cause of action for breach of the covenant of good faith and fair dealing. The court elected not to present the cause of action for intentional interference with prospective business to the jury. (The causes of action for reformation due to mistake and unconscionability, unfair business practices under California Business & Professions Code §17200 et seq., and declaratory relief were not presented to the jury as these types of equitable claims are to be decided by the court as a matter of law.) On December 11, 2017, the jury returned a verdict in favor of Plaintiffs finding that the Company breached the implied covenant of good faith and fair dealing by (1) constructing the two new company-operated El Pollo Loco restaurants in Lancaster, and (2) not offering the two new company-operated El Pollo Loco restaurants in Lancaster to Plaintiffs. Because the trial was bifurcated, the December 11, 2017 verdict did not include a determination of damages. The damages phase of the trial commenced on April 20, 2018. On May 1, 2018, the jury returned a verdict on damages in favor of Plaintiffs in the following amounts: (1) $4,356,600 in “impact damages” arising out of our construction of the two new company-operated El Pollo Loco restaurants in Lancaster, and (2) $4,481,206 in “lost opportunity damages” arising out of our failure to offer the two new company-operated El Pollo Loco restaurants in Lancaster to Plaintiffs. On August 1, 2018, the court issued a final judgment and decision on the unfair business practices claim under California Business & Professions Code § 17200 et seq. As part of the final judgment, the court found El Pollo Loco liable and issued injunctive relief requiring El Pollo Loco to revise its franchise disclosure document and franchise agreement. The court also awarded Plaintiffs restitution of $4,356,600 for “impact damages” arising out of our construction of the two new company-operated El Pollo Loco restaurants in Lancaster. The court, reversing its previous position, held that these damages could be awarded in addition to the "lost opportunity damages" awarded by the jury. Thus, the court entered a total monetary judgment of $8,837,806 . There has been no ruling on the causes of action for reformation due to mistake and unconscionability, and declaratory relief. On August 16, 2018, the Company filed a motion challenging the verdicts and a motion for new trial (both the liability phase and damages phase) and on September 2, 2018, the court denied those motions. On August 27, 2018, the Company filed a notice of appeal as to the entire judgment, and on October 5, 2018, the Company filed a second notice of appeal challenging the court’s denial of the post-trial motions. On September 5, 2018, we filed a motion to strike several of the costs of suit requested by the Plaintiffs, and on September 28, 2018, the Plaintiffs filed a motion for an award of attorneys’ fees. The court ruled on these motions on October 30, 2018, reducing many of the costs requested by the Plaintiffs and awarding $1,391,702.50 to the Plaintiffs for attorneys’ fees. We filed a notice of appeal relating to the trial court’s order relating to our motion to strike the costs and the Plaintiff’s motion for attorneys’ fees on November 6, 2018. The Company also filed motions to stay the injunctive part of the judgment pending the appeal but both the trial court and the California Court of Appeal denied those motions. We filed a petition for review of these denials with the California Supreme Court, but the California Supreme Court denied our petition for review on November 14, 2018. The appeal on the merits is currently pending. Briefing on the merits has not yet occurred in the appellate court. Once the record is delivered by the trial court clerk to the court of appeal, a schedule for the briefing on appeal will be set by the appellate court. Based on the assessment by Management, together with our legal trial counsel, the Company believes that the loss is currently not probable under ASC 450 and as of December 26, 2018 no accrual has been made with regard to the verdict. The Company is also involved in various other claims and legal actions that arise in the ordinary course of business. The Company does not believe that the ultimate resolution of these other actions will have a material adverse effect on its 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 its business, consolidated financial condition, results of operations, and cash flows. Purchase 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 through the end of 2024. At December 26, 2018 , the Company’s total estimated commitment to purchase chicken was $29.8 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 December 26, 2018 , the potential amount of undiscounted payments the Company could be required to make in the event of non-payment by the primary lessee was $2.4 million . The present value of these potential payments discounted at the Company’s estimated pre-tax cost of debt at December 26, 2018 was $2.0 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 consolidated financial statements related to these contingent liabilities. Employment Agreements As of December 26, 2018 , the Company had employment agreements with four of the officers of the Company. 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 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 officers. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 26, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS LLC owns approximately 42.9% 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 26, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Adoption of Topic 606, "Revenue from Contracts with Customers" On December 28, 2017, the Company adopted Topic 606 using the modified retrospective method applied to those contracts, which were not fully satisfied as of December 28, 2017. Results for reporting periods beginning after December 28, 2017, are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. The cumulative catch-up adjustment recorded to accumulated deficit was approximately $3.5 million , net of taxes, related to franchise and development fees. Revenue Recognition Nature of products and services The Company has two revenue streams, company-operated restaurant revenue and franchise related revenue. Company-operated restaurant revenue Revenues from the operation of company-operated restaurants are recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale. The Company presents sales, net of sales-related taxes and promotional allowances. The Company offers a loyalty rewards program, which awards a customer one point for every $1 spent. When 100 points are accumulated a $10 reward to be used on future purchases is earned. When a customer is part of the rewards program, the obligation to provide future discounts related to points earned is considered a separate performance obligation, to which a portion of the transaction price is allocated. The performance obligation related to loyalty points is deemed to have been satisfied, and the amount deferred in the balance sheet is recognized as revenue, when the points are transferred to a $10 reward and redeemed, or the likelihood of redemption is remote. A portion of the transaction price is allocated to loyalty points, if necessary, on a pro-rata basis, based on stand-alone selling price, as determined by menu pricing and loyalty point terms. As of December 26, 2018 and December 27, 2017 , the revenue allocated to loyalty points that have not been redeemed are $1.0 million and $0.4 million , respectively, which are reflected in the Company's accompanying consolidated balance sheets within other accrued expenses and current liabilities. The Company expects the loyalty points to be redeemed and recognized over a one year period. The Company sells gift cards to its customers in the restaurants and through selected third parties. The gift cards sold to customers have no stated expiration dates and are subject to actual and/or potential escheatment rights in several of the jurisdictions in which the Company operates. Furthermore, due to these escheatment rights, the Company does not recognize breakage related to the sale of gift cards due to the immateriality of the amount remaining after escheatment. The Company recognizes income from gift cards when redeemed by the customer. Franchise and franchise advertising revenue Franchise revenue consists of franchise royalties, initial franchise fees, license fees due from franchisees, IT support services, and rental income for subleases to franchisees. Franchise advertising revenue consists of advertising contributions received from franchisees. These revenue streams are made up of the following performance obligations: • Franchise License - inclusive of advertising services, development agreements, training, access to plans and help desk services; • Discounted renewal option; and • Hardware services. The Company satisfies the performance obligation related to the franchise license over the term of the franchise agreement, which is typically 20 years. Payment for the franchise license consists of three components, a fixed-fee related to the franchise/development agreement, a sales-based royalty fee and a sales-based advertising fee. The fixed fee, as determined by the signed development and/or franchise agreement, is due at the time the development agreement is entered into, and/or when the franchise agreement is signed, and does not include a finance component. The sales-based royalty fee and sales-based advertising fee are considered variable consideration and will continue to be recognized as revenue as such sales are earned by the franchisees. Both sales-based fees qualify under the royalty constraint exception, and do not require an estimate of future transaction price. Additionally, the Company is utilizing the practical expedient regarding disclosure of the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied for sales-based royalties. In certain franchise agreements, the Company offers a discounted renewal to incentivize future renewals after the end of the initial franchise term. As this is considered a separate performance obligation, the Company allocated a portion of the initial franchise fee to this discounted renewal, on a pro-rata basis, assuming a 20 year renewal. This performance obligation is satisfied over the renewal term, which is typically 10 or 20 years, while payment is fixed and due at the time the renewal is signed. The Company purchases hardware, such as scanners, printers, cash registers and tablets, from third party vendors, which it then sells to franchisees. As the Company is considered the principal in this relationship, payment for the hardware is considered revenue, and is received upon transfer of the goods from the Company to the Franchisee. As of December 26, 2018 , there were no performance obligations, related to hardware services that were unsatisfied or partially satisfied. Disaggregated revenue The following table presents our revenues for the year ended December 26, 2018 disaggregated by revenue source and market (in thousands): Core Market (1) : Company-operated restaurant revenue $ 340,421 Franchise revenue 14,144 Franchise advertising fee revenue 10,831 Total core market $ 365,396 Non-Core Market (2) : Company-operated restaurant revenue 48,414 Franchise revenue 11,627 Franchise advertising fee revenue 10,391 Total non-core market $ 70,432 Total revenue $ 435,828 (1) Core Market includes markets with existing company-operated restaurants at the IPO date. (2) Non-Core Market includes markets entered into subsequent to the IPO date. The following table presents our revenues disaggregated by geographic market for the year ended December 26, 2018 : Greater Los Angeles area market 69.2 % Other markets 30.8 % Total 100 % Contract balances The following table provides information about the change in the franchise contract liability balances during the year ended December 26, 2018 (in thousands): December 28, 2017 $ 5,759 Revenue recognized - beginning balance (396 ) Additional contract liability 365 Revenue recognized - additional contract liability (135 ) December 26, 2018 $ 5,593 The Company’s franchise contract liability includes development fees, initial franchise and license fees, and franchise renewal fees and is included within other accrued expenses and current liabilities and other noncurrent liabilities within the accompanying consolidated balance sheets. The Company receives area development fees from franchisees when they execute multi-unit area development agreements. Initial franchise and license fees, or franchise renewal fees, are received from franchisees upon the execution of, or renewal of, a franchise agreement. Revenue is recognized from these agreements as the underlying performance obligation is satisfied, which is over the term of the agreement. The following table illustrates the estimated revenue to be recognized in the future related to performance obligations that are unsatisfied as of December 26, 2018 : Franchise revenues (in thousands): 2019 $ 369 2020 400 2021 392 2022 389 2023 379 Thereafter 3,664 Total $ 5,593 Contract Costs The Company does not currently incur costs to obtain or fulfill a contract that would be considered contract assets under Topic 606. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 26, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following table sets forth a summary of our unaudited quarterly operating results for each of the last eight quarters in the period ended December 26, 2018 . We have derived this data from our unaudited consolidated interim financial statements that, in our opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with our financial statements and notes thereto included elsewhere in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) 2018 2017 (Dollar amounts in thousands, except share data) Dec. Sept. June Mar Dec. Sept. June Mar Selected Financial Data Total revenue ($) (5) 106,261 112,178 111,633 105,756 95,202 101,155 105,573 99,771 (Loss) income from operations ($) (30,990 ) (6) 9,492 7,589 4,448 (9,665 ) (5,612 ) 12,740 9,361 Provision (benefit) for income taxes ($) (8,410 ) (6) 2,388 865 1,949 (4,757 ) (3 ) (2,457 ) 4,244 3,467 Net (loss) income ($) (23,410 ) 6,835 5,052 2,529 (38 ) (4,039 ) 7,819 4,877 Per Share Data (2) : Net (loss) income per share: Basic (0.60 ) 0.18 0.13 0.07 0.00 (0.11 ) 0.20 0.13 Diluted (0.60 ) 0.17 0.13 0.06 0.00 (0.11 ) 0.20 0.12 Weighted average shares used in computing net income per share: Basic 38,751,522 38,602,658 38,482,074 38,465,208 38,465,208 38,462,100 38,449,240 38,437,020 Diluted 38,751,522 (4) 39,205,090 39,043,434 38,987,351 38,465,208 (4) 38,462,100 (4) 39,123,961 39,079,007 Selected Operating Data Number of restaurants (at period end) Company-operated 213 212 211 212 212 208 208 204 Franchised 271 271 269 268 265 265 264 263 System-wide 484 483 480 480 477 473 472 467 Average unit volume (AUV) (company-operated) (1) 1,785 1,891 1,890 1,791 1,787 1,922 1,995 1,913 Comparable restaurant sales growth (%) Company-operated 3.7 2.0 (1.6 ) (2.0 ) 0.9 0.9 2.4 (0.4 ) Franchised 5.1 3.0 (0.3 ) (0.4 ) 1.9 2.4 3.2 (0.2 ) System-wide 4.4 2.6 (0.9 ) (1.1 ) 1.4 1.7 2.9 (0.3 ) (1) AUVs consist of average annualized sales of all company-operated restaurants over the fiscal quarter. (2) Due to the use of weighted average shares outstanding for each quarter of computing earnings per share, the sum of the quarterly per share amounts may not equal the per share amount for the year. (3) The Company recorded a benefit for income taxes of $4.8 million in the fourth quarter of 2017 related to the enacted tax reform. The Tax Act had the following effects on our income tax expense for the year ended December 27, 2017, all of which impacted the fourth quarter: • Under ASC Topic 740 we are required to revalue any deferred tax assets or liabilities in the period of enactment of change in tax rates. The Tax Act lowers the corporate income tax rate from 35% to 21%. We have estimated the impact of the revaluation of our deferred tax assets and liabilities, which resulted in a decrease to our net deferred income tax liability by $1.4 million and is reflected as a decrease in our income tax expense in our results for fiscal 2017. • The reduced corporate tax rate, also resulted in a TRA benefit to the provision for income tax expense for fiscal 2017 in the amount of $2.0 million . • The Tax Act is generally effective for tax years beginning after December 31, 2017. As such, the reduction in the corporate income tax rate from 35% to 21% is effective for the fiscal year ended December 26, 2018. (4) Due to a loss for the period, zero incremental shares are included because the effect would be antidilutive. (5) For fiscal 2017, revenue is recognized under Topic 605. Beginning in fiscal 2018, the Company adopted Topic 606, with a date of initial application of December 28, 2017. As a result, the Company recognized revenue under Topic 606 in fiscal 2018. (6) Loss from operations and net loss includes a $36.3 million legal settlement in the period. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2018 | |
Accounting Policies [Abstract] | |
Liquidity | Liquidity The Company’s principal liquidity requirements are to service its debt and meet capital expenditure needs. |
Basis of Presentation | Basis of Presentation The Company uses a 52- or 53-week fiscal year ending on the last Wednesday of each calendar year. Fiscal 2018 , 2017 , and 2016 ended on December 26, 2018 , December 27, 2017 and December 28, 2016 , respectively. 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. Approximately every six or seven years a 53-week fiscal year occurs. Fiscal 2018 , 2017 and 2016 were 52-week fiscal years. 53-week years may cause revenues, expenses, and other results of operations to be higher due to the additional week of operations. |
Principles of Consolidation | Principles of Consolidation The accompanying 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 consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“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 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 represented cash collateral to one commercial bank for Company credit cards. |
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. |
Accounts and Other Receivables, Net | Accounts and Other Receivables, Net Accounts and other receivables consist primarily of royalties, advertising and sublease rent and related amounts receivable from franchisees. Such receivables are due on a monthly basis, which may differ from the Company’s fiscal month-end dates. Accounts and other receivables also include credit/debit card receivables. The need for an allowance for doubtful accounts is reviewed on a specific identification basis and takes into consideration past due balances and the financial strength of the obligor. |
Inventories | Inventories Inventories consist principally of food, beverages and paper supplies and are valued at the lower of average cost or net realizable value. |
Property and Equipment Owned, Net | Property and Equipment Owned, Net Property and equipment is stated at cost and is depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements and property held under capital leases are amortized over the shorter of their estimated useful lives or the remaining lease terms. For leases with renewal periods at the Company’s option, the Company generally uses the original lease term, excluding the option periods, to determine estimated useful lives; if failure to exercise a renewal option imposes an economic penalty on the Company, such that management determines at the inception of the lease that renewal is reasonably assured, the Company may include the renewal option period in the determination of appropriate estimated useful lives. The estimated useful service lives are as follows: Buildings 20 years Land improvements 3—30 years Building improvements 3—10 years Restaurant equipment 3—10 years Other equipment 2—10 years Leasehold improvements Shorter of useful life or lease term The Company capitalizes certain directly attributable costs in conjunction with site selection that relate to specific sites for planned future restaurants. The Company also capitalizes certain directly attributable costs, including interest, in conjunction with constructing new restaurants. These costs are included in property and amortized over the shorter of the life of the related buildings and leasehold improvements or the lease term. Costs related to abandoned sites and other site selection costs that cannot be identified with specific restaurants are charged to general and administrative expenses in the accompanying consolidated statements of operations |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment on a restaurant-by-restaurant basis whenever events or changes in circumstances indicate that the carrying value of certain assets may not be recoverable. The Company considers a triggering event to have occurred related to a specific restaurant if the restaurant’s cash flows for the last twelve months are less than a minimum threshold or if consistent levels of undiscounted cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. If the Company concludes that the carrying value of certain assets will not be recovered based on expected undiscounted future cash flows, an impairment write-down is recorded to reduce the assets to their estimated fair value. The fair value is measured on a nonrecurring basis using unobservable (Level 3) inputs. There is uncertainty in the projected undiscounted future cash flows used in the Company's impairment review analysis, which requires the use of estimates and assumptions. If actual performance does not achieve the projections, or if the assumptions used change in the future, the Company may be required to recognize impairment charges in future periods, and such charges could be material. Based on the results of this analysis, the Company recorded non-cash impairment charges of $5.1 million for the year ended December 26, 2018 , primarily related to the carrying value of the assets of four restaurants in Arizona, California and Texas, including a restaurant in Texas that opened in early 2018. In fiscal 2017 the company recorded a non-cash impairment charge of $32.6 million , primarily related to the carrying value of 23 restaurants in Arizona, California and Texas. The impairment expense for fiscal 2017 includes an impairment expense of $27.7 million , representing the entire value of capitalized assets of all of the company-operated restaurants in Texas, net of previously recorded depreciation. Factors which led to the impairment of the Texas restaurants included operating results, which indicated that the restaurants did not achieve the sales volumes required to generate positive cash flows or improve profitability in the Texas market, along with the related future cash flow assumptions, including comparable sales rate growth and restaurant operating costs, over the remaining lease terms and the age of the restaurants in Texas. The restaurants in Texas began opening in late 2014, causing a higher net book value at the time of impairment testing, and increased difficulty projecting results for newer restaurants in newer markets. Given the difficulty in projecting results for newer restaurants in newer markets, we are also monitoring the recoverability of the carrying value of the assets of several other restaurants on an ongoing basis, including those in the Arizona and Northern California market. For these restaurants, if expected performance improvements are not realized, an impairment charge may be recognized in future periods, and such charge could be material. In fiscal 2016 the Company recorded a non-cash impairment charge of $8.4 million , primarily related to the carrying value of the assets of nine restaurants in Arizona, California and Texas. |
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 the Acquisition and from the acquisition of certain franchise locations. 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 by comparing the fair value of a reporting unit with its carrying amount. An impairment test consists of either a qualitative assessment or a comparison of the fair value of a reporting unit with its carrying amount. 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 an impairment test is performed which determines the carrying amount of a reporting unit is greater than its fair value, an impairment charge will be recognized for the amount by which the carrying amount of a reporting unit is greater than its fair value, up to the amount of its allocated goodwill. 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. |
Other Intangibles, Net-Definite Lived | Other Intangibles, Net—Definite Lived Definite lived intangible assets and liabilities consist of the value allocated to the Company’s favorable and unfavorable leasehold interests that resulted from the Acquisition. Favorable leasehold interest represents the asset in excess of the approximate fair market value of the leases assumed as of November 17, 2005, the date of the Acquisition. The amount is being reduced over the remaining life of the leases. This amount is shown as other intangible assets, net, on the accompanying consolidated balance sheets. Unfavorable leasehold interest liability represents the liability in excess of the approximate fair market value of the leases assumed as of November 17, 2005, the date of the Acquisition. The amount is being reduced over the remaining life of the leases. This amount is shown as other intangible liabilities, net, on the accompanying consolidated balance sheets. Intangible assets and liabilities with a definite life are amortized using the straight-line method over the remaining useful lives at the date of acquisition as follows: Favorable leasehold interests 1 to 18 years (remaining lease term) Unfavorable leasehold interest liability 1 to 20 years (remaining lease term) |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are capitalized and amortized over the period of the loan on a straight-line basis, which approximates the effective interest method. |
Insurance Reserves | Insurance Reserves The Company is responsible for workers’ compensation, general and health insurance claims up to a specified aggregate stop loss amount. The Company maintains a reserve for estimated claims both reported and incurred but not reported, based on historical claims experience and other assumptions. |
Restaurant and Franchise Revenue | Restaurant Revenue Revenues from the operation of company-operated restaurants are recognized as food and beverage products are delivered to customers and payment is tendered at the time of sale. The Company presents sales net of sales-related taxes and promotional allowances. Promotional allowances amounted to approximately $8.8 million , $8.9 million and $7.4 million during the years ended December 26, 2018 , December 27, 2017 , and December 28, 2016 , respectively. The Company offers a loyalty rewards program, which awards a customer one point for every $1 spent. When 100 points are accumulated a $10 reward to be used on future purchases is earned. When a customer is part of the rewards program, the obligation to provide future discounts related to points earned is considered a separate performance obligation, to which a portion of the transaction price is allocated. The performance obligation related to loyalty points is deemed to have been satisfied, and the amount deferred in the balance sheet is recognized as revenue, when the points are transferred to a $10 reward and redeemed, or the likelihood of redemption is remote. A portion of the transaction price is allocated to loyalty points, if necessary, on a pro-rata basis, based on stand-alone selling price, as determined by menu pricing and loyalty point terms. As of December 26, 2018 and December 27, 2017 , the revenue allocated to loyalty points that have not been redeemed are $1.0 million and $0.4 million , respectively, which are reflected in the Company's accompanying consolidated balance sheets within other accrued expenses and current liabilities. The Company expects the loyalty points to be redeemed and recognized over a one year period. The Company sells gift cards to its customers in the restaurants and through selected third parties. The gift cards sold to customers have no stated expiration dates and are subject to actual and/or potential escheatment rights in several of the jurisdictions in which the Company operates. Furthermore, due to these escheatment rights, the Company does not recognize breakage related to the sale of gift cards due to the immateriality of the amount remaining after escheatment. The Company recognizes income from gift cards when redeemed by the customer. Gift Cards The Company sells gift cards to its customers in the restaurants and through selected third parties. The gift cards sold to customers have no stated expiration dates and are subject to actual and/or potential escheatment rights in several of the jurisdictions in which the Company operates. The Company recognizes income from gift cards when redeemed by the customer. |
Advertising Costs | Advertising Costs Advertising expense is recorded as the obligation to contribute to the advertising fund is accrued, generally when the associated revenue is recognized. |
Preopening Costs | Preopening Costs Preopening costs incurred in connection with the opening of new restaurants are expensed as incurred. |
Operating Leases | Operating Leases Rent expense for the Company’s operating leases, which generally have escalating rents over the term of the lease, is recorded on a straight-line basis over the expected lease term. The lease term begins when the Company has the right to control the use of the leased property, which is typically before rent payments are due under the terms of the lease. Rent expense is included in occupancy and other operating expenses on the consolidated statements of operations. The difference between rent expense and rent paid is recorded as deferred rent, which is included in current liabilities and other noncurrent liabilities in the accompanying consolidated balance sheets. Percentage rent expenses are recorded based on estimated sales or gross margin for respective restaurants over the contingency period. Any leasehold improvements that are funded by lessor incentives under operating leases are recorded as leasehold improvements and amortized over the expected lease term. Such incentives are also recorded as deferred rent and amortized as reductions to rent expense over the expected lease term. |
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 basis 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 a charge to tax expense to reserve the portion of the deferred tax assets which are not expected to be realized. The Company reviews its filing positions for all open tax years in all U.S. federal and state jurisdictions where it 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%. 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 as the largest amount of tax benefit that is greater than 50% 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 or penalties related to income tax matters in income tax expense. |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: • Level 1: Quoted prices for identical instruments in active markets. • Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs or significant value drivers are observable. • Level 3: Unobservable inputs used when little or no market data is available. As of December 26, 2018 and December 27, 2017 , the Company had no assets and liabilities measured at fair value on a recurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis. In other words, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and certain accrued expenses approximate fair value due to their short-term maturities. The recorded value of the TRA approximates fair value, based on borrowing rates currently available to the Company for debts with similar terms and remaining maturities (Level 3 measurement). |
Stock Based Compensation | Stock Based Compensation Accounting literature requires the recognition of compensation expense using a fair-value based method for costs related to all share-based payments including stock options and restricted stock issued under the Company’s employee stock plans. The guidance also requires companies to estimate the fair value of stock option awards on the date of grant using an option pricing model, which require the input of subjective assumptions. The Company is required to use judgment in estimating the amount of stock-based awards that are expected to be forfeited. If actual forfeitures differ significantly from the original estimate, stock-based compensation expense and the results of operations could be affected. The cost is recognized on a straight-line basis over the period during which an employee is required to provide service, usually the vesting period. For options or restricted shares that are based on a performance requirement, the cost is recognized on an accelerated basis over the period to which the performance criteria relate. |
Earnings per Share | Earnings per Share Earnings per share (“EPS”) is calculated using the weighted average number of common shares outstanding during each period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents unless the effect is to reduce a loss or increase the income per share. For purposes of this calculation, options and restricted stock awards are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. The shares used to compute basic and diluted net income per share represent the weighted-average common shares outstanding. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)," ("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, requires more judgment and estimates within the revenue recognition process. On December 28, 2017, the Company adopted ASU 2014-09 using the modified retrospective method applied to those contracts, which were not fully satisfied as of December 28, 2017. Results for reporting periods beginning after December 28, 2017, are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. The Company has recognized an adjustment to retained earnings, related to the cumulative effect of adopting ASU 2014-09 at the date of adoption. The adoption of ASU 2014-09 did not have a material impact to its consolidated statement of operations, and the cumulative catch-up adjustment recorded to accumulated deficit was $3.5 million , or 1% of total assets. In addition, the FASB issued the following Technical Corrections, Practical Expedients and Targeted Improvements to Topic 606, Revenue from Contracts with Customers: ASU No. 2017-14 in November 2017, ASU No. 2017-13 in September 2017, ASU No. 2016-20, in December 2016, ASU No. 2016-12, in May 2016 and ASU No. 2016-10, in April 2016 (together with ASU 2014-09 referred to as "Topic 606"). All amendments are effective for financial statements issued for annual periods beginning after December 15, 2017, including interim periods within those annual periods. For additional information and discussion of the impact of the adoption of Topic 606 on revenue recognition, see "Changes in Accounting Policies" below and "Note 15. Revenue from Contracts with Customers". In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting," ("ASU 2017-09"), which provides clarity, reduces diversity in practice, and reduces cost and complexity when applying the guidance in Topic 718 Compensation—Stock Compensation, regarding a change to the terms or conditions of a share-based payment award. Specifically, an entity is to account for the effects of a modification, unless all of the following are satisfied: (1) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or as a liability instrument is the same as the classification of the original award immediately before the original award is modified. The Company adopted ASU 2017-09 in the first quarter of 2018. The adoption of ASU 2017-09 did not have a significant impact on the Company’s consolidated financial position or results of operations. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01"). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted ASU 2017-01 in the first quarter of 2018. The adoption of ASU 2017-01 did not have a significant impact on the Company’s consolidated financial position or results of operations. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," ("ASU 2017-04"), simplifying the manner in which an entity is required to test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. The Company adopted ASU 2017-04 in the fourth quarter of 2018. The adoption of ASU 2017-04 did not have a significant impact on the Company’s consolidated financial position or results of operations. In November 2016, the FASB issued ASU No. 2016-18, "Restricted Cash" ("ASU 2016-18"). ASU 2016-18 addresses the diversity in practice that exists regarding the classification and the presentation of changes in restricted cash on the statements of cash flows under Topic 230, Statements of Cash Flow, and other Topics. The amendments in ASU 2016-18 require that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and the end-of-period total amounts set forth on the statements of cash flows. The Company adopted ASU 2016-18 in the first quarter of 2018. The adoption of ASU 2016-18 did not have a significant impact on the Company’s consolidated financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"). ASU 2016-15 addresses how certain cash receipts and cash payments are presented and classified in the statements of cash flows under Topic 230, Statements of Cash Flow, and other Topics. The Company adopted ASU 2016-15 in the first quarter of 2018. The adoption of ASU 2016-15 did not have a significant impact on the Company’s consolidated financial position or results of operations. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 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. The Company adopted ASU 2016-01 in the first quarter of 2018. The adoption of ASU 2016-01 did not have a significant impact on the Company’s consolidated financial position or results of operations. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act, (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code. On December 22, 2017, the Securities and Exchange Commission (“SEC") issued guidance in Staff Accounting Bulletin No. 118, ("SAB 118"), to address certain fact patterns where the accounting for changes in tax laws or tax rates under FASB ASC Topic 740, Income Taxes (“ASC 740”) is incomplete upon issuance of an entity's financial statements for the reporting period in which the Tax Act is enacted. As permitted in SAB 118, in 2017, the Company took a measurement period approach and reported certain provisional amounts, based on reasonable estimates, for certain tax effects in which the accounting under ASC 740 is incomplete. Such provisional amounts are subject to adjustment during a limited measurement period, not to extend one year beyond the tax law enactment date, until the accounting under ASC 740 is complete. The Company completed the accounting required under ASC 740 in 2018; however as new guidance and interpretations of the tax law become available, any further adjustments related to the enacted tax laws could result in a material adverse impact on the Company's net income and our financial position in 2019. In March 2018, the FASB issued ASU No. 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118" ("ASU 2018-05"). The amendments in ASU 2018-05 amend the SEC paragraphs included in Topic 740 to be consistent with the guidance in SAB 118, which the Company adopted in the year ended December 27, 2017, as described above. Recent Accounting Pronouncements Not Yet Adopted In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, “Disclosure Update and Simplification”, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Company anticipates its first presentation of changes in shareholders' equity will be included in its Form 10-Q for the first quarter of fiscal year 2019. In June 2018, the FASB issued ASU No. 2018-07, "Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," ("ASU 2018-07"), which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU 2018-07 is effective for financial statements issued for annual periods beginning after December 15, 2018, and for the interim periods therein. The adoption of ASU 2018-07 is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases" ("ASU 2016-02"). ASU 2016-02 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 statement of operations. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will adopt these provisions in the first quarter of 2019, electing the transition method that allows us to apply the standard as of the adoption date and record a cumulative adjustment in retained earnings, if applicable. We have elected the package of practical expedients permitted under the transition guidance within the new guidance, which among other things, allows us to carryforward the historical lease classification. The Company has $266.5 million of operating lease obligations as of December 26, 2018 , and upon adoption of this standard will record a ROU asset and lease liability equal to the present value of these leases, which will have a material impact on the consolidated balance sheet. However, the recognition of lease expense in the consolidated statement of operations is not expected to change from the current methodology and no significant changes are expected to the consolidated statement of cash flows upon the adoption of ASU 2016-02. In July 2018, the FASB issued ASU No. 2018-10, "Codification Improvements to Topic 842, Leases," ("ASU 2018-10"), to clarify how to apply certain aspects of the new lease accounting standard. The amendments in this update, among other things, better articulates the requirement for a lessee's reassessment of lease classification as of the effective date of a modification, clarifies that a change to an index or rate for variable lease payments does not constitute a resolution of a contingency that would result in the remeasurement of lease payments, and requires entities that apply Topic 842 retrospectively to each reporting period and do not adopt the practical expedients to write off any prior unamortized initial direct costs that do not meet the definition under Topic 842 to equity. The amendments in this update have the same effective date and transition requirements as the new lease standard summarized above. The Company has disclosed the impact of adoption of Topic 842 on the Company’s consolidated financial position and results of operations as stated above. Also, in July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements," ("ASU 2018-11"), to provide an additional transition method. An entity can now elect not to present comparative financial information under Topic 842 if it recognizes a cumulative-effect adjustment to retained earnings upon adoption. The Company intends to make this election. The amendments in these update are effective for the Company for fiscal years beginning after December 15, 2018, including interim periods within those years, with early adoption permitted. The Company has performed an assessment of the impact of the adoption of the amendments in these updates on the Company's consolidated financial position and results of operations for the Company's leases, which primarily consist of restaurant operating leases and corporate office leases. Based on that assessment, the Company has established that the adoption of Topic 842 will result in the recognition of a significant increase to the balance sheet for right-of-use assets and lease liabilities as of December 27, 2018 based on the present value of future minimum lease payments. Also, the impacts from the adoption of Topic 842 to the Company's accumulated deficit as of December 27, 2018 and to consolidated results of operations for the year ending December 25, 2019 are not expected to be material. Changes in Accounting Policies Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in these consolidated financial statements. The Company adopted Topic 606, with a date of initial application of December 28, 2017. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The Company generates a substantial amount of its revenues from company-operated restaurants. This revenue stream was not impacted by the adoption of Topic 606. The Company applied Topic 606 using the modified retrospective method by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of equity at December 28, 2017. Therefore, the comparative information has not been adjusted and continues to be reported under Topic 605. The details of the significant changes and quantitative impact of the changes are set out below and in "Note 15. Revenue from Contracts with Customers." Franchise Revenue Franchise revenue consists of franchise royalties, initial franchise fees, license fees due from franchisees and IT support services. Rental income for subleases to franchisees are outside of the scope of the revenue standard and are within the scope of lease guidance. Franchise royalties are based upon a percentage of net sales of the franchisee and were previously recorded as income as such sales are earned by the franchisees, which does not change with the adoption of Topic 606. For franchise and development agreement fees, the Company's previous accounting policy was to recognize initial franchise fees, development fees, and franchise agreement renewals when all material obligations had been performed and conditions had been satisfied, typically when operations of the franchised restaurant had commenced. In accordance with the new guidance, the initial franchise services, or exclusivity of the development agreements, are not distinct from the continuing rights or services offered during the term of the franchise agreement, and are therefore treated as a single performance obligation. As such, initial franchise and development fees received, and subsequent renewal fees, are recognized over the franchise or renewal term, which is typically twenty years. As of December 26, 2018 , the Company had executed development agreements that represent commitments to open 44 franchised restaurants at various dates through 2022. Franchise Advertising Fee Revenue The Company's previous accounting policy was to recognize advertising funded by franchisees on a net basis in the consolidated statements of operations, and as a liability within the consolidated balance sheets. Under the new guidance, the Company presents advertising contributions received from franchisees as franchise advertising fee revenue and records all expenses of the advertising fund within franchise expenses, resulting in an increase in revenues and expenses on the consolidated statements of operations, with no change to the consolidated balance sheets. The adoption of this guidance did not have a material change on revenue from Company-operated restaurant revenue, gift cards or the Company's loyalty program. The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements as of and for the twelve months ended December 26, 2018 : Impact of changes in accounting policies December 26, 2018 (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Assets Current assets: Deferred tax assets $ 11,709 $ 1,272 $ 10,437 Total assets $ 450,226 $ 1,272 $ 448,954 Liabilities and Stockholders' Equity Current liabilities: Other accrued expenses and current liabilities $ 51,764 $ 369 $ 51,395 Total current liabilities 82,903 369 82,534 Other noncurrent liabilities 20,024 4,370 15,654 Total liabilities 184,990 4,739 180,251 Stockholders' Equity Accumulated deficit (110,888 ) (3,467 ) (107,421 ) Total stockholders' equity 265,236 (3,467 ) 268,703 Total liabilities and stockholder’s equity $ 450,226 $ 1,272 $ 448,954 Impact of changes in accounting policies Year Ended December 26, 2018 (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Revenue Franchise revenue $ 25,771 $ 166 $ 25,605 Franchise advertising fee revenue 21,222 21,222 — Total revenue 435,828 21,388 414,440 Cost of operations Franchise expenses 24,429 21,222 3,207 Total expenses 445,289 21,222 424,067 Loss from operations (9,461 ) 166 (9,627 ) Loss before provision for income taxes (12,202 ) 166 (12,368 ) Net loss $ (8,994 ) $ 166 $ (9,160 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Service Lives | The estimated useful service lives are as follows: Buildings 20 years Land improvements 3—30 years Building improvements 3—10 years Restaurant equipment 3—10 years Other equipment 2—10 years Leasehold improvements Shorter of useful life or lease term The costs and related accumulated depreciation and amortization of major classes of property are as follows (in thousands): December 26, 2018 December 27, 2017 Land $ 12,323 $ 12,323 Buildings and improvements 156,806 124,056 Other property and equipment 76,061 64,712 Construction in progress 2,989 8,225 248,179 209,316 Less: accumulated depreciation and amortization (144,034 ) (106,522 ) $ 104,145 $ 102,794 |
Intangible Assets and Liabilities Remaining Useful Lives | Intangible assets and liabilities with a definite life are amortized using the straight-line method over the remaining useful lives at the date of acquisition as follows: Favorable leasehold interests 1 to 18 years (remaining lease term) Unfavorable leasehold interest liability 1 to 20 years (remaining lease term) |
Summary of Non-Financial Instruments Measured at Fair Value on Nonrecurring Basis | The following non-financial instruments were measured at fair value, on a nonrecurring basis, as of and for the year ended December 26, 2018 (in thousands): Fair Value Measurements Using Total Level 1 Level 2 Level 3 Impairment Losses Property and equipment owned, net $ 449 $ — $ — $ 449 $ 5,147 The following non-financial instruments were measured at fair value, on a nonrecurring basis, as of and for the year ended December 27, 2017 (in thousands): Fair Value Measurements Using Total Level 1 Level 2 Level 3 Impairment Losses Property and equipment owned, net $ — $ — $ — $ — $ 32,594 The following non-financial instruments were measured at fair value, on a nonrecurring basis, as of and for the year ended December 28, 2016 (in thousands): Fair Value Measurements Using Total Level 1 Level 2 Level 3 Impairment Losses Property and equipment owned, net $ 1,614 $ — $ — $ 1,614 $ 8,400 |
Impact of New Accounting Pronouncements | The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements as of and for the twelve months ended December 26, 2018 : Impact of changes in accounting policies December 26, 2018 (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Assets Current assets: Deferred tax assets $ 11,709 $ 1,272 $ 10,437 Total assets $ 450,226 $ 1,272 $ 448,954 Liabilities and Stockholders' Equity Current liabilities: Other accrued expenses and current liabilities $ 51,764 $ 369 $ 51,395 Total current liabilities 82,903 369 82,534 Other noncurrent liabilities 20,024 4,370 15,654 Total liabilities 184,990 4,739 180,251 Stockholders' Equity Accumulated deficit (110,888 ) (3,467 ) (107,421 ) Total stockholders' equity 265,236 (3,467 ) 268,703 Total liabilities and stockholder’s equity $ 450,226 $ 1,272 $ 448,954 Impact of changes in accounting policies Year Ended December 26, 2018 (in thousands) As Reported Adjustments Balances without adoption of Topic 606 Revenue Franchise revenue $ 25,771 $ 166 $ 25,605 Franchise advertising fee revenue 21,222 21,222 — Total revenue 435,828 21,388 414,440 Cost of operations Franchise expenses 24,429 21,222 3,207 Total expenses 445,289 21,222 424,067 Loss from operations (9,461 ) 166 (9,627 ) Loss before provision for income taxes (12,202 ) 166 (12,368 ) Net loss $ (8,994 ) $ 166 $ (9,160 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Costs and Related Accumulated Depreciation and Amortization of Major Classes of Property | The estimated useful service lives are as follows: Buildings 20 years Land improvements 3—30 years Building improvements 3—10 years Restaurant equipment 3—10 years Other equipment 2—10 years Leasehold improvements Shorter of useful life or lease term The costs and related accumulated depreciation and amortization of major classes of property are as follows (in thousands): December 26, 2018 December 27, 2017 Land $ 12,323 $ 12,323 Buildings and improvements 156,806 124,056 Other property and equipment 76,061 64,712 Construction in progress 2,989 8,225 248,179 209,316 Less: accumulated depreciation and amortization (144,034 ) (106,522 ) $ 104,145 $ 102,794 |
Trademarks, Other Intangible _2
Trademarks, Other Intangible Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Domestic Trademarks | Domestic trademarks consist of the following (in thousands): December 26, 2018 December 27, 2017 Cost $ 120,700 $ 120,700 Accumulated impairment charges (58,812 ) (58,812 ) Trademarks, net $ 61,888 $ 61,888 |
Schedule of Intangible Assets Subject to Amortization | Other intangible assets subject to amortization consist of the following (in thousands): December 26, 2018 December 27, 2017 Favorable leasehold interest $ 6,038 $ 6,038 Less: accumulated amortization (5,758 ) (5,661 ) Total favorable leasehold interest, net $ 280 $ 377 Unfavorable leasehold interest liability $ (9,156 ) $ (9,156 ) Less: accumulated amortization 8,514 8,370 Unfavorable leasehold interest liability, net $ (642 ) $ (786 ) |
Schedule of Estimated Net Amortization | The estimated net amortization credits (net liability) for the Company’s favorable and unfavorable leasehold interests for each of the five succeeding fiscal years and thereafter is as follows (in thousands): For the Years Ending Favorable Leasehold Interest Unfavorable Leasehold Interest December 25, 2019 $ 94 $ (136 ) December 30, 2020 85 (123 ) December 29, 2021 64 (120 ) December 28, 2022 37 (107 ) December 28, 2023 — (100 ) Thereafter — (56 ) Total $ 280 $ (642 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Leases [Abstract] | |
Schedule of Capital Leases | Information regarding the Company’s future lease obligations at December 26, 2018 is as follows (in thousands): Capital Leases Operating Leases For the Years Ending Minimum Lease Payments Minimum Lease Payments Minimum Sublease Income December 25, 2019 $ 95 $ 25,388 $ 1,443 December 30, 2020 54 24,437 1,108 December 29, 2021 54 23,342 1,078 December 28, 2022 45 22,338 1,001 December 28, 2023 — 20,634 989 Thereafter — 150,342 2,612 Total $ 248 $ 266,481 $ 8,231 Less: imputed interest (11.0% to 11.1%) (64 ) Present value of capital lease obligations 184 Less: current maturities (68 ) Noncurrent portion $ 116 |
Schedule of Operating Leases | Information regarding the Company’s future lease obligations at December 26, 2018 is as follows (in thousands): Capital Leases Operating Leases For the Years Ending Minimum Lease Payments Minimum Lease Payments Minimum Sublease Income December 25, 2019 $ 95 $ 25,388 $ 1,443 December 30, 2020 54 24,437 1,108 December 29, 2021 54 23,342 1,078 December 28, 2022 45 22,338 1,001 December 28, 2023 — 20,634 989 Thereafter — 150,342 2,612 Total $ 248 $ 266,481 $ 8,231 Less: imputed interest (11.0% to 11.1%) (64 ) Present value of capital lease obligations 184 Less: current maturities (68 ) Noncurrent portion $ 116 |
Schedule of Net Rent Expense | Net rent expense is as follows (in thousands): For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Base rent $ 25,591 $ 24,384 $ 22,089 Contingent rent 282 259 209 Less: sublease income (2,218 ) (2,334 ) (2,540 ) Net rent expense $ 23,655 $ 22,309 $ 19,758 |
Schedule of Minimum Future Rental Income | Minimum future rental income for company-owned properties under noncancelable operating leases, which is recorded on a straight-line basis, in effect as of December 26, 2018 , is as follows (in thousands): For the Years Ending December 25, 2019 $ 334 December 30, 2020 349 December 29, 2021 301 December 28, 2022 276 December 28, 2023 276 Thereafter 2,673 Total future minimum rental income $ 4,209 |
Other Accrued Expenses and Cu_2
Other Accrued Expenses and Current Liabilities (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Expenses and Current Liabilities | Other accrued expenses and current liabilities consist of the following (in thousands): December 26, 2018 December 27, 2017 Accrued sales and property taxes $ 5,016 $ 4,792 Accrued legal settlements and professional fees 38,639 1,544 Gift card liability 2,512 2,319 Other 5,597 4,615 Total other accrued expenses and current liabilities $ 51,764 $ 13,270 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other noncurrent liabilities consist of the following (in thousands): December 26, 2018 December 27, 2017 Deferred rent $ 10,660 $ 9,403 Deferred franchise and development fees 5,224 — Other 4,140 3,369 Total noncurrent liabilities $ 20,024 $ 12,772 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes is based on the following components (in thousands): For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Current income taxes: Federal $ — $ — $ — State 220 250 224 Total current 220 250 224 Deferred income taxes: Federal (3,526 ) 1,495 9,660 State 98 192 2,730 Total deferred (3,428 ) 1,687 12,390 Charge in lieu of tax (attributable to stock options) — — 169 Adjustment to deferred taxes for tax rate change — (1,440 ) — Tax provision for income taxes $ (3,208 ) $ 497 $ 12,783 |
Schedule of Effective Income Tax rate | The provision for income taxes differs from the amount computed by applying the federal income tax rate of 21.0% for fiscal 2018 and 35.0% for both fiscal 2017 and fiscal 2016 as follows: For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Statutory federal income tax rate applied to 21.0 % 35.0 % 35.0 % TRA expense 1.3 (21.4 ) 0.4 Revaluation of deferred taxes — (15.8 ) — Change in valuation allowance (6.9 ) 10.9 1.3 WOTC Credit 3.3 (2.5 ) (0.8 ) State tax benefit (net of federal benefit) 5.0 0.6 5.0 Stock option exercises 2.1 — — Other 0.5 (1.3 ) 0.2 Total 26.3 % 5.5 % 41.1 % |
Schedule of Deferred Tax Assets and Liabilities | The Company’s deferred tax assets and liabilities as of December 26, 2018 and December 27, 2017 are summarized below. The balances reflect the revaluation for the reduction in the Federal corporate rate to 21.0% . December 26, 2018 December 27, 2017 Deferred assets: Capital leases $ 53 $ 90 Accrued vacation 456 428 Accrued legal 10,343 — Deferred rent 3,788 3,516 Accrued workers’ compensation 1,660 1,450 Enterprise zone and other credits 13,001 12,722 Net operating losses 6,260 13,488 Fixed assets 3,374 4,176 Other 5,239 2,261 Total deferred tax assets 44,174 38,131 Valuation allowance (5,149 ) (4,306 ) Net deferred tax assets 39,025 33,825 Deferred liabilities: Goodwill (6,229 ) (6,037 ) Trademark (17,654 ) (17,613 ) Prepaid expense (528 ) (380 ) Fixed asset — — Other (2,905 ) (2,628 ) Deferred tax liabilities (27,316 ) (26,658 ) Net deferred tax asset $ 11,709 $ 7,167 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Changes in Stock Options | Changes in stock options for the years ended December 26, 2018 and December 27, 2017 , are as follows: Shares Weighted-Average Exercise Price Outstanding - December 28, 2016 2,191,728 $ 7.26 Grants 135,036 13.73 Exercised (17,661 ) 5.26 Forfeited, cancelled or expired — — Outstanding - December 27, 2017 2,309,103 7.65 Grants 311,272 10.98 Exercised (269,549 ) 6.81 Forfeited, cancelled or expired (248,422 ) 12.46 Outstanding - December 26, 2018 2,102,404 $ 7.68 Vested and expected to vest at December 26, 2018 2,091,138 $ 7.66 Exercisable at December 26, 2018 1,722,455 $ 6.86 |
Stock Options By Range of Exercise Prices | Stock options at December 26, 2018 are summarized as follows: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in Years) Weighted- Average Exercise Price Number Exercisable Weighted-Average Exercise Price $4.09 99,531 4.50 $ 4.09 99,531 $ 4.09 $5.84 1,381,010 3.52 5.84 1,381,010 $ 5.84 $9.65 - $13.95 482,831 8.89 11.59 102,882 $ 12.24 $15.00 139,032 5.58 15.00 139,032 $ 15.00 $4.09 - $15.00 2,102,404 4.93 $ 7.68 1,722,455 $ 6.86 |
Schedule of Changes in Restricted Shares | Changes in restricted shares for the years ended December 26, 2018 and December 27, 2017 , are as follows: Shares Weighted-Average Fair Value Unvested shares at December 28, 2016 36,752 $ 15.42 Granted 181,292 $ 13.69 Released (10,527 ) $ 16.48 Forfeited, cancelled, or expired (10,875 ) $ 16.72 Unvested shares at December 27, 2017 196,642 $ 13.70 Granted 395,880 $ 10.22 Released (45,991 ) $ 13.86 Forfeited, cancelled, or expired (55,831 ) $ 13.42 Unvested shares at December 26, 2018 490,700 $ 10.91 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income per Share | Below are basic and diluted EPS data for the periods indicated, which are in thousands except for per share data. For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Numerator: Net (loss) income $ (8,994 ) $ 8,619 $ 18,339 Denominator: Weighted-average shares outstanding—Basic 38,574,553 38,453,347 38,357,805 Weighted-average shares outstanding—Diluted 38,574,553 39,086,676 39,026,950 Net (loss) income per share—Basic $ (0.23 ) $ 0.22 $ 0.48 Net (loss) income per share—Diluted $ (0.23 ) $ 0.22 $ 0.47 Anti-dilutive securities not considered in diluted EPS calculation 2,593,104 747,985 468,705 |
Schedule of Reconciliation of Basic and Diluted Share Counts | Below is a reconciliation of basic and diluted share counts. For the Years Ended December 26, 2018 December 27, 2017 December 28, 2016 Weighted-average shares outstanding—Basic 38,574,553 38,453,347 38,357,805 Dilutive effect of stock options and restricted shares — 633,329 669,145 Weighted-average shares outstanding—Diluted 38,574,553 39,086,676 39,026,950 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenues for the year ended December 26, 2018 disaggregated by revenue source and market (in thousands): Core Market (1) : Company-operated restaurant revenue $ 340,421 Franchise revenue 14,144 Franchise advertising fee revenue 10,831 Total core market $ 365,396 Non-Core Market (2) : Company-operated restaurant revenue 48,414 Franchise revenue 11,627 Franchise advertising fee revenue 10,391 Total non-core market $ 70,432 Total revenue $ 435,828 (1) Core Market includes markets with existing company-operated restaurants at the IPO date. (2) Non-Core Market includes markets entered into subsequent to the IPO date. The following table presents our revenues disaggregated by geographic market for the year ended December 26, 2018 : Greater Los Angeles area market 69.2 % Other markets 30.8 % Total 100 % |
Schedule of Change in Franchise Contract Liability Balances | The following table provides information about the change in the franchise contract liability balances during the year ended December 26, 2018 (in thousands): December 28, 2017 $ 5,759 Revenue recognized - beginning balance (396 ) Additional contract liability 365 Revenue recognized - additional contract liability (135 ) December 26, 2018 $ 5,593 |
Schedule of Estimated Revenue to be Recognized Related to Performance Obligations | The following table illustrates the estimated revenue to be recognized in the future related to performance obligations that are unsatisfied as of December 26, 2018 : Franchise revenues (in thousands): 2019 $ 369 2020 400 2021 392 2022 389 2023 379 Thereafter 3,664 Total $ 5,593 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 26, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following table sets forth a summary of our unaudited quarterly operating results for each of the last eight quarters in the period ended December 26, 2018 . We have derived this data from our unaudited consolidated interim financial statements that, in our opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with our financial statements and notes thereto included elsewhere in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) 2018 2017 (Dollar amounts in thousands, except share data) Dec. Sept. June Mar Dec. Sept. June Mar Selected Financial Data Total revenue ($) (5) 106,261 112,178 111,633 105,756 95,202 101,155 105,573 99,771 (Loss) income from operations ($) (30,990 ) (6) 9,492 7,589 4,448 (9,665 ) (5,612 ) 12,740 9,361 Provision (benefit) for income taxes ($) (8,410 ) (6) 2,388 865 1,949 (4,757 ) (3 ) (2,457 ) 4,244 3,467 Net (loss) income ($) (23,410 ) 6,835 5,052 2,529 (38 ) (4,039 ) 7,819 4,877 Per Share Data (2) : Net (loss) income per share: Basic (0.60 ) 0.18 0.13 0.07 0.00 (0.11 ) 0.20 0.13 Diluted (0.60 ) 0.17 0.13 0.06 0.00 (0.11 ) 0.20 0.12 Weighted average shares used in computing net income per share: Basic 38,751,522 38,602,658 38,482,074 38,465,208 38,465,208 38,462,100 38,449,240 38,437,020 Diluted 38,751,522 (4) 39,205,090 39,043,434 38,987,351 38,465,208 (4) 38,462,100 (4) 39,123,961 39,079,007 Selected Operating Data Number of restaurants (at period end) Company-operated 213 212 211 212 212 208 208 204 Franchised 271 271 269 268 265 265 264 263 System-wide 484 483 480 480 477 473 472 467 Average unit volume (AUV) (company-operated) (1) 1,785 1,891 1,890 1,791 1,787 1,922 1,995 1,913 Comparable restaurant sales growth (%) Company-operated 3.7 2.0 (1.6 ) (2.0 ) 0.9 0.9 2.4 (0.4 ) Franchised 5.1 3.0 (0.3 ) (0.4 ) 1.9 2.4 3.2 (0.2 ) System-wide 4.4 2.6 (0.9 ) (1.1 ) 1.4 1.7 2.9 (0.3 ) (1) AUVs consist of average annualized sales of all company-operated restaurants over the fiscal quarter. (2) Due to the use of weighted average shares outstanding for each quarter of computing earnings per share, the sum of the quarterly per share amounts may not equal the per share amount for the year. (3) The Company recorded a benefit for income taxes of $4.8 million in the fourth quarter of 2017 related to the enacted tax reform. The Tax Act had the following effects on our income tax expense for the year ended December 27, 2017, all of which impacted the fourth quarter: • Under ASC Topic 740 we are required to revalue any deferred tax assets or liabilities in the period of enactment of change in tax rates. The Tax Act lowers the corporate income tax rate from 35% to 21%. We have estimated the impact of the revaluation of our deferred tax assets and liabilities, which resulted in a decrease to our net deferred income tax liability by $1.4 million and is reflected as a decrease in our income tax expense in our results for fiscal 2017. • The reduced corporate tax rate, also resulted in a TRA benefit to the provision for income tax expense for fiscal 2017 in the amount of $2.0 million . • The Tax Act is generally effective for tax years beginning after December 31, 2017. As such, the reduction in the corporate income tax rate from 35% to 21% is effective for the fiscal year ended December 26, 2018. (4) Due to a loss for the period, zero incremental shares are included because the effect would be antidilutive. (5) For fiscal 2017, revenue is recognized under Topic 605. Beginning in fiscal 2018, the Company adopted Topic 606, with a date of initial application of December 28, 2017. As a result, the Company recognized revenue under Topic 606 in fiscal 2018. (6) Loss from operations and net loss includes a $36.3 million legal settlement in the period. |
Description of Business - Addi
Description of Business - Additional Information (Details) | Dec. 11, 2014USD ($) | Dec. 26, 2018USD ($)restaurantshares | Dec. 26, 2018USD ($)restaurantsegment | Sep. 26, 2018restaurant | Aug. 28, 2018USD ($) | Jun. 27, 2018restaurant | Mar. 28, 2018restaurant | Dec. 27, 2017restaurant | Sep. 27, 2017restaurant | Jun. 28, 2017restaurant | Mar. 29, 2017restaurant | Dec. 28, 2016restaurant |
Debt Instrument [Line Items] | ||||||||||||
Number of restaurants | restaurant | 4 | 4 | 23 | 9 | ||||||||
Number of operating segments | segment | 1 | |||||||||||
Authorized amount under share repurchase agreement | $ 20,000,000 | |||||||||||
Number of shares repurchased (shares) | shares | 66,409 | |||||||||||
Value of shares repurchased | $ 1,000,000 | $ 981,000 | ||||||||||
Philippines | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of restaurants | restaurant | 1 | 1 | ||||||||||
Company-operated | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of restaurants | restaurant | 213 | 213 | 212 | 211 | 212 | 212 | 208 | 208 | 204 | |||
Company-operated | The Greater Los Angeles Area | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of restaurants | restaurant | 143 | 143 | ||||||||||
Franchised | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of restaurants | restaurant | 271 | 271 | 271 | 269 | 268 | 265 | 265 | 264 | 263 | |||
Franchised | The Greater Los Angeles Area | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of restaurants | restaurant | 138 | 138 | ||||||||||
2018 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior secured revolving facility | $ 150,000,000 | |||||||||||
Senior secured revolving facility term | 5 years | |||||||||||
Revolving Credit Facility | 2018 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum annual repurchase or redemption of qualified entity interests | $ 1,000,000 | |||||||||||
Restrictive covenants, maximum annual repurchase, redemption or acquired equity interests, up to | 500,000 | |||||||||||
Maximum annual payment for stock option plans, employment agreements and incentive plans | 2,500,000 | |||||||||||
Maximum annual payment for other restricted payments | $ 5,000,000 | |||||||||||
Maximum leverage ratio | 4.25 | |||||||||||
Chicken Acquisition Corp | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Ownership interest | 42.90% | 42.90% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Jul. 13, 2018USD ($) | Jul. 30, 2014 | Jul. 11, 2014restaurant | Nov. 30, 2015restaurant | Mar. 08, 2019USD ($) | Sep. 27, 2017restaurant | Dec. 26, 2018USD ($)restaurantfranchise | Dec. 27, 2017USD ($)restaurant | Dec. 28, 2016USD ($)restaurant | Jan. 31, 2019restaurant | Sep. 26, 2018restaurant | Jun. 27, 2018restaurant | Mar. 28, 2018restaurant | Dec. 28, 2017USD ($) | Jun. 28, 2017restaurant | Mar. 29, 2017restaurant | Dec. 30, 2015USD ($) |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Total amount of outstanding debt | $ 74,200,000 | ||||||||||||||||
Cash available | 6,969,000 | $ 8,550,000 | $ 2,168,000 | $ 6,101,000 | |||||||||||||
Capitalized internal cost | 1,300,000 | 1,900,000 | 1,600,000 | ||||||||||||||
Capitalized internal interest cost | 200,000 | 200,000 | 200,000 | ||||||||||||||
Asset impairment charges | $ 5,147,000 | $ 32,594,000 | $ 8,400,000 | ||||||||||||||
Number of restaurants | restaurant | 4 | 23 | 9 | ||||||||||||||
Transaction costs | $ 800,000 | ||||||||||||||||
Amortization expense for deferred financing costs | $ 280,000 | $ 304,000 | $ 304,000 | ||||||||||||||
Accrued insurance | 7,076,000 | 5,851,000 | |||||||||||||||
Expense for payroll and benefits reserves | 8,000,000 | 6,800,000 | 7,200,000 | ||||||||||||||
Promotional allowances amount | 8,800,000 | 8,900,000 | 7,400,000 | ||||||||||||||
Revenue allocated to loyalty points not redeemed | $ 1,000,000 | 400,000 | |||||||||||||||
Loyalty rewards program, expected loyalty points redemption period | 1 year | ||||||||||||||||
Advertising expense | $ 16,100,000 | 15,500,000 | 14,700,000 | ||||||||||||||
Accrued advertising | 300,000 | 1,000,000 | |||||||||||||||
Advertising cost included in accounts receivable and current assets | 0 | 0 | |||||||||||||||
Number of restaurants damaged by fire | restaurant | 1 | ||||||||||||||||
Expenses related to fire loss | 100,000 | ||||||||||||||||
Disposition of assets related to fire | 100,000 | ||||||||||||||||
Gain on recovery of insurance proceeds, related to the reimbursement of property and equipment and expenses incurred | 700,000 | ||||||||||||||||
Gain on recovery of insurance proceeds, related to the reimbursement of lost profits | 0 | 0 | 502,000 | ||||||||||||||
Amount received from insurance company in cash | 1,400,000 | ||||||||||||||||
Recovery of securities lawsuits related legal expenses | 8,356,000 | 1,666,000 | 0 | ||||||||||||||
Unrecognized tax benefits, accrual of interest or penalties | 0 | 0 | |||||||||||||||
Unrecognized tax benefits, interest or penalties expenses | 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% | ||||||||||||||||
Charge relating to present value of total expected TRA payments | 13,900,000 | 22,000,000 | |||||||||||||||
Payments to pre-IPO stockholders under TRA | $ 7,272,000 | $ 11,109,000 | 3,236,000 | ||||||||||||||
Number of restaurants that failed impairment testing | restaurant | 4 | 21 | |||||||||||||||
Number of commitments to open franchised restaurants | franchise | 44 | ||||||||||||||||
Operating lease obligations | $ 266,481,000 | ||||||||||||||||
Minimum | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of monthly franchise fee | 4.00% | ||||||||||||||||
Maximum | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of monthly franchise fee | 5.00% | ||||||||||||||||
Franchised | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Number of restaurants | restaurant | 265 | 271 | 265 | 271 | 269 | 268 | 264 | 263 | |||||||||
Advertising fees | $ 21,200,000 | $ 20,500,000 | 19,300,000 | ||||||||||||||
Interest Expense | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Amortization expense for deferred financing costs | 300,000 | 300,000 | 300,000 | ||||||||||||||
General and Administrative Expense | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Abandoned site and other site selection costs | 300,000 | 500,000 | 500,000 | ||||||||||||||
Preopening costs | 800,000 | 2,000,000 | $ 2,600,000 | ||||||||||||||
Other Assets | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Deferred financing fees net of accumulated amortization | $ 1,100,000 | $ 600,000 | |||||||||||||||
Revenue | Geographic Concentration Risk | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of concentration | 100.00% | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of concentration | 40.00% | 40.00% | |||||||||||||||
Supplier One | Accounts Payable | Supplier Concentration Risk | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of concentration | 36.00% | ||||||||||||||||
Supplier Two | Accounts Payable | Supplier Concentration Risk | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of concentration | 14.00% | ||||||||||||||||
Largest Supplier One | Purchased | Supplier Concentration Risk | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of concentration | 29.00% | 29.00% | 33.00% | ||||||||||||||
Texas | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Number of restaurants closed | restaurant | 2 | ||||||||||||||||
Asset impairment charges | $ 27,700,000 | ||||||||||||||||
Greater Los Angeles area market | Franchised | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Number of restaurants | restaurant | 138 | ||||||||||||||||
Greater Los Angeles area market | Revenue | Geographic Concentration Risk | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Percentage of concentration | 69.20% | 73.00% | 75.00% | ||||||||||||||
Franchise Development Initial Option Agreement | Limited Liability Company | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Number of restaurants | restaurant | 15 | ||||||||||||||||
Number of years available under plan | 5 years | ||||||||||||||||
Franchise Development Additional Option Agreement | Limited Liability Company | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Number of restaurants | restaurant | 100 | ||||||||||||||||
Number of years available under plan | 10 years | ||||||||||||||||
Franchise Development Agreement | Limited Liability Company | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Related party agreement, termination period | 10 years | ||||||||||||||||
First Lien Credit Agreement | Senior Secured Revolving Credit Facility | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Amount of borrowings available | $ 67,500,000 | ||||||||||||||||
2018 Credit Agreement | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Amount of borrowings available | 67,500,000 | ||||||||||||||||
Accounting Standards Update 2014-09 | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Cumulative effect of adjustment resulted in an increase in accumulated deficit | $ (3,467,000) | ||||||||||||||||
Retained Earnings | Accounting Standards Update 2014-09 | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Cumulative effect of adjustment resulted in an increase in accumulated deficit | $ (3,467,000) | ||||||||||||||||
Cumulative effect adjustment as percentage of total assets | (0.77006%) | ||||||||||||||||
Subsequent Event | Texas | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Number of restaurants closed | restaurant | 1 | ||||||||||||||||
Subsequent Event | 2018 Credit Agreement | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Prepayment for long-term line of credit | $ 3,000,000 | ||||||||||||||||
Fair Value, Measurements, Nonrecurring | |||||||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
Impairment of assets | $ 5,147,000 | $ 32,594,000 | $ 8,400,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment Owned, Net (Details) | 12 Months Ended |
Dec. 26, 2018 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful service lives | 20 years |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful service lives | 3 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful service lives | 30 years |
Building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful service lives | 3 years |
Building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful service lives | 10 years |
Restaurant equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful service lives | 3 years |
Restaurant equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful service lives | 10 years |
Other equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful service lives | 2 years |
Other equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful service lives | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Other Intangibles, Net-Definite Lived (Details) | 12 Months Ended |
Dec. 26, 2018 | |
Minimum | Favorable Leasehold Interest | |
Finite-Lived Intangible Assets [Line Items] | |
Franchise agreement term | 1 year |
Minimum | Unfavorable Leasehold Interest Liability | |
Finite-Lived Intangible Assets [Line Items] | |
Franchise agreement term | 1 year |
Maximum | Favorable Leasehold Interest | |
Finite-Lived Intangible Assets [Line Items] | |
Franchise agreement term | 18 years |
Maximum | Unfavorable Leasehold Interest Liability | |
Finite-Lived Intangible Assets [Line Items] | |
Franchise agreement term | 20 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and equipment owned, net | $ 104,145 | $ 102,794 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and equipment owned, net | 449 | 0 | $ 1,614 |
Impairment Losses | 5,147 | 32,594 | 8,400 |
Fair Value, Measurements, Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and equipment owned, net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and equipment owned, net | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property and equipment owned, net | $ 449 | $ 0 | $ 1,614 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Impact on Balance Sheet of New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | Dec. 30, 2015 |
Assets | ||||
Total assets | $ 450,226 | $ 442,711 | ||
Current assets: | ||||
Deferred tax assets | 11,709 | 7,167 | ||
Current liabilities: | ||||
Other accrued expenses and current liabilities | 51,764 | 13,270 | ||
Total current liabilities | 82,903 | 47,325 | ||
Other noncurrent liabilities | 20,024 | 12,772 | ||
Total liabilities | 184,990 | 167,761 | ||
Accumulated deficit | (110,888) | (98,427) | ||
Total stockholders' equity | 265,236 | 274,950 | $ 265,182 | $ 244,633 |
Total liabilities and stockholder’s equity | 450,226 | $ 442,711 | ||
Balances without adoption of Topic 606 | ||||
Assets | ||||
Total assets | 448,954 | |||
Current assets: | ||||
Deferred tax assets | 10,437 | |||
Current liabilities: | ||||
Other accrued expenses and current liabilities | 51,395 | |||
Total current liabilities | 82,534 | |||
Other noncurrent liabilities | 15,654 | |||
Total liabilities | 180,251 | |||
Accumulated deficit | (107,421) | |||
Total stockholders' equity | 268,703 | |||
Total liabilities and stockholder’s equity | 448,954 | |||
Accounting Standards Update 2014-09 | Adjustments | ||||
Assets | ||||
Total assets | 1,272 | |||
Current assets: | ||||
Deferred tax assets | 1,272 | |||
Current liabilities: | ||||
Other accrued expenses and current liabilities | 369 | |||
Total current liabilities | 369 | |||
Other noncurrent liabilities | 4,370 | |||
Total liabilities | 4,739 | |||
Accumulated deficit | (3,467) | |||
Total stockholders' equity | (3,467) | |||
Total liabilities and stockholder’s equity | $ 1,272 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Impact on Statement of Operations from Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2018 | Sep. 26, 2018 | Jun. 27, 2018 | Mar. 28, 2018 | Dec. 27, 2017 | Sep. 27, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Revenue | |||||||||||
Company-operated restaurant revenue | $ 106,261 | $ 112,178 | $ 111,633 | $ 105,756 | $ 95,202 | $ 101,155 | $ 105,573 | $ 99,771 | $ 435,828 | $ 401,701 | $ 380,123 |
Cost of operations | |||||||||||
Franchise expenses | 24,429 | 3,335 | 3,823 | ||||||||
Total expenses | 445,289 | 394,877 | 345,522 | ||||||||
Loss from operations | (30,990) | 9,492 | 7,589 | 4,448 | (9,665) | (5,612) | 12,740 | 9,361 | (9,461) | 6,824 | 34,629 |
Loss before provision for income taxes | (12,202) | 9,116 | 31,122 | ||||||||
Net (loss) income | $ (23,410) | $ 6,835 | $ 5,052 | $ 2,529 | $ (38) | $ (4,039) | $ 7,819 | $ 4,877 | (8,994) | 8,619 | 18,339 |
Franchise revenue | |||||||||||
Revenue | |||||||||||
Company-operated restaurant revenue | 25,771 | 25,086 | 24,655 | ||||||||
Franchise advertising fee revenue | |||||||||||
Revenue | |||||||||||
Company-operated restaurant revenue | 21,222 | $ 0 | $ 0 | ||||||||
Adjustments | Accounting Standards Update 2014-09 | |||||||||||
Revenue | |||||||||||
Company-operated restaurant revenue | 21,388 | ||||||||||
Cost of operations | |||||||||||
Franchise expenses | 21,222 | ||||||||||
Total expenses | 21,222 | ||||||||||
Loss from operations | 166 | ||||||||||
Loss before provision for income taxes | 166 | ||||||||||
Net (loss) income | 166 | ||||||||||
Adjustments | Franchise revenue | Accounting Standards Update 2014-09 | |||||||||||
Revenue | |||||||||||
Company-operated restaurant revenue | 166 | ||||||||||
Adjustments | Franchise advertising fee revenue | Accounting Standards Update 2014-09 | |||||||||||
Revenue | |||||||||||
Company-operated restaurant revenue | 21,222 | ||||||||||
Balances without adoption of Topic 606 | |||||||||||
Revenue | |||||||||||
Company-operated restaurant revenue | 414,440 | ||||||||||
Cost of operations | |||||||||||
Franchise expenses | 3,207 | ||||||||||
Total expenses | 424,067 | ||||||||||
Loss from operations | (9,627) | ||||||||||
Loss before provision for income taxes | (12,368) | ||||||||||
Net (loss) income | (9,160) | ||||||||||
Balances without adoption of Topic 606 | Franchise revenue | |||||||||||
Revenue | |||||||||||
Company-operated restaurant revenue | 25,605 | ||||||||||
Balances without adoption of Topic 606 | Franchise advertising fee revenue | |||||||||||
Revenue | |||||||||||
Company-operated restaurant revenue | $ 0 |
Property and Equipment - Sched
Property and Equipment - Schedule of Costs and Related Accumulated Depreciation and Amortization of Major Classes of Property (Details) - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 248,179 | $ 209,316 |
Less: accumulated depreciation and amortization | (144,034) | (106,522) |
Property and equipment, net | 104,145 | 102,794 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,323 | 12,323 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 156,806 | 124,056 |
Other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 76,061 | 64,712 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,989 | $ 8,225 |
Property and Equipment - Addit
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 17,800 | $ 18,100 | $ 16,100 |
Long-lived assets, non-cash impairment charges | $ 5,147 | $ 32,594 | $ 8,400 |
Trademarks, Other Intangible _3
Trademarks, Other Intangible Assets and Liabilities - Schedule of Domestic Trademarks (Details) - Trademarks - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 |
Indefinite-lived Intangible Assets [Line Items] | ||
Cost | $ 120,700 | $ 120,700 |
Accumulated impairment charges | (58,812) | (58,812) |
Trademarks, net | $ 61,888 | $ 61,888 |
Trademarks, Other Intangible _4
Trademarks, Other Intangible Assets and Liabilities - Schedule of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 |
Favorable Leasehold Interest | ||
Finite-Lived Intangible Assets [Line Items] | ||
Favorable leasehold interest | $ 6,038 | $ 6,038 |
Less: accumulated amortization | (5,758) | (5,661) |
Total favorable leasehold interest, net | 280 | 377 |
Unfavorable leasehold interest liability | ||
Finite-Lived Intangible Assets [Line Items] | ||
Unfavorable leasehold interest liability | (9,156) | (9,156) |
Less: accumulated amortization | 8,514 | 8,370 |
Unfavorable leasehold interest liability, net | $ (642) | $ (786) |
Trademarks, Other Intangible _5
Trademarks, Other Intangible Assets and Liabilities - Schedule of Estimated Net Amortization (Details) - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 |
Favorable Leasehold Interest | ||
Favorable Leasehold Interest | ||
December 25, 2019 | $ 94 | |
December 30, 2020 | 85 | |
December 29, 2021 | 64 | |
December 28, 2022 | 37 | |
December 28, 2023 | 0 | |
Thereafter | 0 | |
Total favorable leasehold interest, net | 280 | $ 377 |
Unfavorable Leasehold Interest | ||
Unfavorable Leasehold Interest | ||
December 25, 2019 | (136) | |
December 30, 2020 | (123) | |
December 29, 2021 | (120) | |
December 28, 2022 | (107) | |
December 28, 2023 | (100) | |
Thereafter | (56) | |
Unfavorable leasehold interest liability, net | $ (642) | $ (786) |
Trademarks, Other Intangible _6
Trademarks, Other Intangible Assets and Liabilities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 0.1 | $ 0.1 | $ 0.1 |
Favorable Leasehold Interest | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset subject to amortization, weighted average amortization period | 2 years | ||
Unfavorable Leasehold Interest Liability | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset subject to amortization, weighted average amortization period | 3 years |
Leases - Additional Informatio
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2018 | Sep. 26, 2018 | Jun. 27, 2018 | Mar. 28, 2018 | Dec. 27, 2017 | Sep. 27, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | |||||||||||
Initial term of lease | 20 years | 20 years | |||||||||
Sublease income, contingent rental income | $ 700 | $ 800 | $ 1,000 | ||||||||
Company-operated restaurant revenue | $ 106,261 | $ 112,178 | $ 111,633 | $ 105,756 | $ 95,202 | $ 101,155 | $ 105,573 | $ 99,771 | $ 435,828 | 401,701 | 380,123 |
Minimum | |||||||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||||||
Lessor, term of contract | 3 years | 3 years | |||||||||
Maximum | |||||||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||||||
Lessor, term of contract | 20 years | 20 years | |||||||||
Franchise, Rental Income | |||||||||||
Property Subject to or Available for Operating Lease [Line Items] | |||||||||||
Company-operated restaurant revenue | $ 500 | $ 500 | $ 500 |
Leases - Schedule of Future Le
Leases - Schedule of Future Leases Obligations (Details) - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 |
Capital Leases, Minimum Lease Payments | ||
December 25, 2019 | $ 95 | |
December 30, 2020 | 54 | |
December 29, 2021 | 54 | |
December 28, 2022 | 45 | |
December 28, 2023 | 0 | |
Thereafter | 0 | |
Total | 248 | |
Less: imputed interest (11.0% to 11.1%) | (64) | |
Present value of capital lease obligations | 184 | |
Less: current maturities | (68) | $ (132) |
Noncurrent portion | 116 | $ 184 |
Operating Leases, Minimum Lease Payments | ||
December 25, 2019 | 25,388 | |
December 30, 2020 | 24,437 | |
December 29, 2021 | 23,342 | |
December 28, 2022 | 22,338 | |
December 28, 2023 | 20,634 | |
Thereafter | 150,342 | |
Total | 266,481 | |
Operating Leases, Minimum Sublease Income | ||
December 25, 2019 | 1,443 | |
December 30, 2020 | 1,108 | |
December 29, 2021 | 1,078 | |
December 28, 2022 | 1,001 | |
December 28, 2023 | 989 | |
Thereafter | 2,612 | |
Total | $ 8,231 | |
Minimum | ||
Capital Leases, Minimum Lease Payments | ||
Imputed interest rate | 11.00% | |
Maximum | ||
Capital Leases, Minimum Lease Payments | ||
Imputed interest rate | 11.10% |
Leases - Schedule of Rent Expe
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Leases [Abstract] | |||
Base rent | $ 25,591 | $ 24,384 | $ 22,089 |
Contingent rent | 282 | 259 | 209 |
Less: sublease income | (2,218) | (2,334) | (2,540) |
Net rent expense | $ 23,655 | $ 22,309 | $ 19,758 |
Leases - Schedule of Minimum F
Leases - Schedule of Minimum Future Rental Income Under Non-Cancelable Operating Lease (Details) $ in Thousands | Dec. 26, 2018USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
December 25, 2019 | $ 334 |
December 30, 2020 | 349 |
December 29, 2021 | 301 |
December 28, 2022 | 276 |
December 28, 2023 | 276 |
Thereafter | 2,673 |
Total future minimum rental income | $ 4,209 |
Current Credit Agreements - Ad
Current Credit Agreements - Additional Information (Details) - USD ($) | Dec. 11, 2014 | Dec. 26, 2018 | Dec. 27, 2017 |
Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 3.30% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.00% | ||
Federal Funds Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 0.50% | ||
LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 1.00% | ||
LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 1.25% | ||
LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 2.25% | ||
Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 0.25% | ||
Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument basis percentage | 1.25% | ||
2014 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 3.30% | ||
2014 Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.40% | ||
2014 Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 3.30% | ||
2018 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Senior secured revolving facility | $ 150,000,000 | ||
Senior secured revolving facility term | 5 years | ||
Debt instrument, interest rate | 4.00% | ||
Letters of credit outstanding | $ 8,500,000 | ||
Revolving line of credit | 74,000,000 | ||
Amount of borrowings available | 67,500,000 | ||
Letter of Credit | 2018 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Sub limit of revolving facility | $ 15,000,000 | ||
Swing Line Loans | 2018 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Sub limit of revolving facility | 15,000,000 | ||
Senior Secured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Principal payments prior to maturity | $ 0 | ||
Senior Secured Revolving Credit Facility | 2014 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Senior secured revolving facility | $ 200,000,000 | ||
Senior secured revolving facility term | 5 years | ||
Senior Secured Revolving Credit Facility | Letter of Credit | 2014 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Sub limit of revolving facility | $ 15,000,000 | ||
Senior Secured Revolving Credit Facility | Swing Line Loans | 2014 Credit Agreement | |||
Debt Instrument [Line Items] | |||
Sub limit of revolving facility | $ 15,000,000 |
Other Accrued Expenses and Cu_3
Other Accrued Expenses and Current Liabilities - Schedule of Other Accrued Expenses and Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 |
Payables and Accruals [Abstract] | ||
Accrued sales and property taxes | $ 5,016 | $ 4,792 |
Accrued legal settlements and professional fees | 38,639 | 1,544 |
Gift card liability | 2,512 | 2,319 |
Other | 5,597 | 4,615 |
Total other accrued expenses and current liabilities | $ 51,764 | $ 13,270 |
Other Noncurrent Liabilities -
Other Noncurrent Liabilities - Schedule of Other Noncurrent Liabilities (Detail) - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 |
Payables and Accruals [Abstract] | ||
Deferred rent | $ 10,660 | $ 9,403 |
Deferred franchise and development fees | 5,224 | 0 |
Other | 4,140 | 3,369 |
Total noncurrent liabilities | $ 20,024 | $ 12,772 |
Income Taxes - Schedule of Pro
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2018 | Sep. 26, 2018 | Jun. 27, 2018 | Mar. 28, 2018 | Dec. 27, 2017 | Sep. 27, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Current income taxes: | |||||||||||
Federal | $ 0 | $ 0 | $ 0 | ||||||||
State | 220 | 250 | 224 | ||||||||
Total current | 220 | 250 | 224 | ||||||||
Deferred income taxes: | |||||||||||
Federal | (3,526) | 1,495 | 9,660 | ||||||||
State | 98 | 192 | 2,730 | ||||||||
Total deferred | (3,428) | 1,687 | 12,390 | ||||||||
Charge in lieu of tax (attributable to stock options) | 0 | 0 | 169 | ||||||||
Adjustment to deferred taxes for tax rate change | 0 | (1,440) | 0 | ||||||||
Tax provision for income taxes | $ (8,410) | $ 2,388 | $ 865 | $ 1,949 | $ (4,757) | $ (2,457) | $ 4,244 | $ 3,467 | $ (3,208) | $ 497 | $ 12,783 |
Income Taxes - Schedule of Eff
Income Taxes - Schedule of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate applied to earnings before income taxes and extraordinary items | 21.00% | 35.00% | 35.00% |
TRA expense | 1.30% | (21.40%) | 0.40% |
Revaluation of deferred taxes | 0.00% | (15.80%) | 0.00% |
Change in valuation allowance | (6.90%) | 10.90% | 1.30% |
WOTC Credit | 3.30% | (2.50%) | (0.80%) |
State tax benefit (net of federal benefit) | 5.00% | 0.60% | 5.00% |
Stock option exercises | 2.10% | 0.00% | 0.00% |
Other | 0.50% | (1.30%) | 0.20% |
Total | 26.30% | 5.50% | 41.10% |
Income Taxes - Additional Info
Income Taxes - Additional Information (Details) - USD ($) | Jul. 30, 2014 | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 |
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Change in tax rate, decrease in deferred tax asset | $ 12,100,000 | |||
Change in tax rate, decrease in deferred tax liability | 13,500,000 | |||
Net benefit to deferred income tax expense | $ 0 | 1,440,000 | $ 0 | |
Valuation allowance | 5,149,000 | 4,306,000 | 3,300,000 | |
Increase in valuation allowance | 800,000 | 1,000,000 | ||
Percentage of cash savings in taxes realized as a result of utilizing net operating losses payable to pre-IPO stockholders | 85.00% | |||
TRA tax expense (benefit) | (800,000) | 5,600,000 | 400,000 | |
Payments to pre-IPO stockholders under TRA | 7,272,000 | 11,109,000 | 3,236,000 | |
Deferred tax asset credit | 13,001,000 | 12,722,000 | ||
Alternative minimum tax credits | 500,000 | |||
Unrecognized tax benefits | 0 | 0 | 0 | |
Unrecognized tax benefits interest accrued | 0 | 0 | 0 | |
Unrecognized tax benefits penalties accrued | 0 | 0 | $ 0 | |
Federal | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Net operating loss carryforwards | 29,800,000 | |||
State and Local Jurisdiction | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Net operating loss carryforwards | 100,000 | |||
Enterprise Zone | State and Local Jurisdiction | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax credits carry forward | 10,900,000 | |||
WOTC | Federal | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Tax credits carry forward | 1,400,000 | |||
California | Enterprise Zone | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Deferred tax asset credit | $ 4,400,000 | $ 5,400,000 |
Income Taxes - Schedule of Def
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 |
Deferred assets: | |||
Capital leases | $ 53 | $ 90 | |
Accrued vacation | 456 | 428 | |
Accrued legal | 10,343 | 0 | |
Deferred rent | 3,788 | 3,516 | |
Accrued workers’ compensation | 1,660 | 1,450 | |
Enterprise zone and other credits | 13,001 | 12,722 | |
Net operating losses | 6,260 | 13,488 | |
Fixed assets | 3,374 | 4,176 | |
Other | 5,239 | 2,261 | |
Total deferred tax assets | 44,174 | 38,131 | |
Valuation allowance | (5,149) | (4,306) | $ (3,300) |
Net deferred tax assets | 39,025 | 33,825 | |
Deferred liabilities: | |||
Goodwill | (6,229) | (6,037) | |
Trademark | (17,654) | (17,613) | |
Prepaid expense | (528) | (380) | |
Fixed asset | 0 | 0 | |
Other | (2,905) | (2,628) | |
Deferred tax liabilities | (27,316) | (26,658) | |
Net deferred tax asset | $ 11,709 | $ 7,167 |
Employee Benefit Plans - Addit
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Qualified compensation of employees that may be contributed, maximum | 25.00% | ||
Benefit contribution | $ 0.8 | $ 0.7 | $ 0.6 |
First 3% of Annual Qualified Compensation | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer's matching contribution | 100.00% | ||
Percentage of employees' annual qualified compensation matched | 3.00% | ||
Next 2 % of Annual Qualified Compensation | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer's matching contribution | 50.00% | ||
Percentage of employees' annual qualified compensation matched | 2.00% |
Stock-Based Compensation - Add
Stock-Based Compensation - Additional Information (Details) - USD ($) | Dec. 27, 2017 | Dec. 28, 2016 | Nov. 15, 2016 | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, options outstanding (shares) | 2,309,103 | 2,191,728 | 2,102,404 | 2,309,103 | 2,191,728 | |
Common stock, options vested (shares) | 1,722,455 | |||||
Common stock, options unvested (shares) | 379,949 | |||||
Options to purchase common stock granted (shares) | 311,272 | 135,036 | ||||
Stock-based compensation expense | $ 2,005,000 | $ 1,056,000 | $ 1,063,000 | |||
Aggregate intrinsic value of options outstanding | 15,500,000 | |||||
Aggregate intrinsic value of options exercisable | $ 14,200,000 | 14,200,000 | ||||
Intrinsic value of options exercised | 1,500,000 | 200,000 | 900,000 | |||
Stock-based compensation expense | 1,100,000 | $ 600,000 | 900,000 | |||
Incremental expense from plan modification | 800,000 | |||||
Unrecognized compensation expense | $ 1,300,000 | |||||
Unrecognized compensation expense, recognition period | 3 years 3 months 7 days | |||||
Granted (shares) | 395,880 | 181,292 | ||||
Exercise price equal to the fair market value of the common stock on the date of grant | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options to purchase common stock granted (shares) | 311,272 | 135,036 | ||||
Option vesting period | 4 years | |||||
Premium Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, options outstanding (shares) | 1,381,010 | |||||
Performance Based Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, options outstanding (shares) | 0 | |||||
Common stock, options vested (shares) | 17,378 | 80,799 | 17,380 | |||
Stock-based compensation expense | 600,000 | |||||
Time Based Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, options outstanding (shares) | 2,102,404 | |||||
Options expiration period | 10 years | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized number of common stock for issuance (shares) | 5,652,240 | |||||
Number of share available for grant (shares) | 1,495,767 | |||||
Expected dividend yield | 0.00% | 0.00% | ||||
Weighted average grant date fair value (usd per share) | $ 3.78 | $ 4.29 | ||||
Expected volatility | 28.40% | |||||
Expected life | 6 years 3 months | 5 years 9 months | ||||
Risk-free interest rates, minimum | 2.86% | 1.88% | ||||
Risk-free interest rates, maximum | 2.88% | 2.01% | ||||
Expected volatility, minimum | 28.60% | |||||
Accelerated vesting of awards (shares) | 33,545 | |||||
Restricted Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 1,000,000 | $ 500,000 | $ 200,000 | |||
Unrecognized compensation expense, recognition period | 3 years 21 days | |||||
Granted (shares) | 323,764 | |||||
Unrecognized compensation expense | $ 4,600,000 | |||||
Restricted Shares | Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Option vesting period | 3 years | |||||
Restricted Shares | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Option vesting period | 4 years | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 72,116 | |||||
Performance Shares | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Option vesting period | 1 year | |||||
Performance Shares | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Option vesting period | 5 years |
Stock-Based Compensation - Cha
Stock-Based Compensation - Changes in Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 26, 2018 | Dec. 27, 2017 | |
Shares | ||
Outstanding-beginning balance (shares) | 2,309,103 | 2,191,728 |
Grants (shares) | 311,272 | 135,036 |
Exercised (shares) | (269,549) | (17,661) |
Forfeited, cancelled or expired (shares) | (248,422) | 0 |
Outstanding-ending balance (shares) | 2,102,404 | 2,309,103 |
Vested and expected to vest at end of period (shares) | 2,091,138 | |
Exercisable at end of period (shares) | 1,722,455 | |
Weighted-Average Exercise Price | ||
Outstanding-beginning balance (usd per share) | $ 7.65 | $ 7.26 |
Grants (usd per share) | 10.98 | 13.73 |
Exercised (usd per share) | 6.81 | 5.26 |
Forfeited, cancelled or expired (usd per share) | 12.46 | 0 |
Outstanding-ending balance (usd per share) | 7.68 | $ 7.65 |
Vested and expected to vest at end of period (usd per share) | 7.66 | |
Exercisable at end of period (usd per share) | $ 6.86 |
Stock-Based Compensation - Sto
Stock-Based Compensation - Stock Options By Range of Exercise Prices (Details) | 12 Months Ended |
Dec. 26, 2018$ / sharesshares | |
$ 4.09 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices (usd per share) | $ 4.09 |
Number Outstanding (shares) | shares | 99,531 |
Weighted-Average Remaining Contractual Life (in Years) | 4 years 5 months 30 days |
Weighted-Average Exercise Price (usd per share) | $ 4.09 |
Number Exercisable (shares) | shares | 99,531 |
Weighted-Average Exercise Price (usd per share) | $ 4.09 |
$ 5.84 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices (usd per share) | $ 5.84 |
Number Outstanding (shares) | shares | 1,381,010 |
Weighted-Average Remaining Contractual Life (in Years) | 3 years 5 months 37 days |
Weighted-Average Exercise Price (usd per share) | $ 5.84 |
Number Exercisable (shares) | shares | 1,381,010 |
Weighted-Average Exercise Price (usd per share) | $ 5.84 |
$9.65 - $13.95 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (usd per share) | 9.65 |
Range of exercise prices, maximum (usd per share) | $ 13.95 |
Number Outstanding (shares) | shares | 482,831 |
Weighted-Average Remaining Contractual Life (in Years) | 8 years 10 months 20 days |
Weighted-Average Exercise Price (usd per share) | $ 11.59 |
Number Exercisable (shares) | shares | 102,882 |
Weighted-Average Exercise Price (usd per share) | $ 12.24 |
$ 15 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices (usd per share) | $ 15 |
Number Outstanding (shares) | shares | 139,032 |
Weighted-Average Remaining Contractual Life (in Years) | 5 years 6 months 29 days |
Weighted-Average Exercise Price (usd per share) | $ 15 |
Number Exercisable (shares) | shares | 139,032 |
Weighted-Average Exercise Price (usd per share) | $ 15 |
$4.09 - $15.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, minimum (usd per share) | 4.09 |
Range of exercise prices, maximum (usd per share) | $ 15 |
Number Outstanding (shares) | shares | 2,102,404 |
Weighted-Average Remaining Contractual Life (in Years) | 4 years 11 months 6 days |
Weighted-Average Exercise Price (usd per share) | $ 7.68 |
Number Exercisable (shares) | shares | 1,722,455 |
Weighted-Average Exercise Price (usd per share) | $ 6.86 |
Stock-Based Compensation - Sch
Stock-Based Compensation - Schedule of Changes in Restricted Shares (Details) - $ / shares | 12 Months Ended | |
Dec. 26, 2018 | Dec. 27, 2017 | |
Shares | ||
Unvested shares, beginning balance (shares) | 196,642 | 36,752 |
Granted (shares) | 395,880 | 181,292 |
Released (shares) | (45,991) | (10,527) |
Forfeited, cancelled, or expired (shares) | (55,831) | (10,875) |
Unvested shares, ending balance (shares) | 490,700 | 196,642 |
Weighted-Average Fair Value | ||
Unvested shares Weighted-Average Fair Value, beginning balance (usd per share) | $ 13.70 | $ 15.42 |
Granted, Weighted-Average Fair Value (usd per share) | 10.22 | 13.69 |
Released, Weighted-Average Fair Value (usd per share) | 13.86 | 16.48 |
Forfeited, cancelled, or expired, Weighted-Average Fair Value (usd per share) | 13.42 | 16.72 |
Unvested shares Weighted-Average Fair Value, ending balance (usd per share) | $ 10.91 | $ 13.70 |
Earnings Per Share - Computati
Earnings Per Share - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2018 | Sep. 26, 2018 | Jun. 27, 2018 | Mar. 28, 2018 | Dec. 27, 2017 | Sep. 27, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Numerator: | |||||||||||
Net (loss) income | $ (23,410) | $ 6,835 | $ 5,052 | $ 2,529 | $ (38) | $ (4,039) | $ 7,819 | $ 4,877 | $ (8,994) | $ 8,619 | $ 18,339 |
Denominator: | |||||||||||
Weighted-average shares outstanding—Basic (shares) | 38,751,522 | 38,602,658 | 38,482,074 | 38,465,208 | 38,465,208 | 38,462,100 | 38,449,240 | 38,437,020 | 38,574,553 | 38,453,347 | 38,357,805 |
Weighted-average shares outstanding—Diluted (shares) | 38,751,522 | 39,205,090 | 39,043,434 | 38,987,351 | 38,465,208 | 38,462,100 | 39,123,961 | 39,079,007 | 38,574,553 | 39,086,676 | 39,026,950 |
Net (loss) income per share—Basic (usd per share) | $ (0.60) | $ 0.18 | $ 0.13 | $ 0.07 | $ 0 | $ (0.11) | $ 0.20 | $ 0.13 | $ (0.23) | $ 0.22 | $ 0.48 |
Net (loss) income per share—Diluted (usd per share) | $ (0.60) | $ 0.17 | $ 0.13 | $ 0.06 | $ 0 | $ (0.11) | $ 0.20 | $ 0.12 | $ (0.23) | $ 0.22 | $ 0.47 |
Anti-dilutive securities not considered in diluted EPS calculation (shares) | 0 | 0 | 2,593,104 | 747,985 | 468,705 |
Earnings Per Share - Schedule
Earnings Per Share - Schedule of Reconciliation of Basic and Diluted Share Counts (Details) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2018 | Sep. 26, 2018 | Jun. 27, 2018 | Mar. 28, 2018 | Dec. 27, 2017 | Sep. 27, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Weighted-average shares outstanding—Basic (shares) | 38,751,522 | 38,602,658 | 38,482,074 | 38,465,208 | 38,465,208 | 38,462,100 | 38,449,240 | 38,437,020 | 38,574,553 | 38,453,347 | 38,357,805 |
Dilutive effect of stock options and restricted shares (shares) | 0 | 633,329 | 669,145 | ||||||||
Weighted-average shares outstanding—Diluted (shares) | 38,751,522 | 39,205,090 | 39,043,434 | 38,987,351 | 38,465,208 | 38,462,100 | 39,123,961 | 39,079,007 | 38,574,553 | 39,086,676 | 39,026,950 |
Commitments and Contingencies
Commitments and Contingencies - Additional Information (Details) | Nov. 06, 2018USD ($) | Dec. 26, 2018USD ($)agreementlawsuitlease |
Other Commitments [Line Items] | ||
Number of lawsuits consolidated | lawsuit | 2 | |
Payments made to plaintiff's attorneys | $ 1,391,702.50 | |
Officers | ||
Other Commitments [Line Items] | ||
Number of at-will employment agreements | agreement | 4 | |
Property Lease Guarantee | ||
Other Commitments [Line Items] | ||
Number of leases assigned to franchisees | lease | 5 | |
Contingent lease obligations, maximum exposure | $ 2,400,000 | |
Contingent lease obligations, maximum exposure, if discounted at estimated pre-tax cost of debt | 2,000,000 | |
Chicken Acquisition Corp | ||
Other Commitments [Line Items] | ||
Purchase commitments, estimated obligations | 29,800,000 | |
Impact Damages | ||
Other Commitments [Line Items] | ||
Value of damages awarded | 4,356,600 | |
Lost Opportunity Damages | ||
Other Commitments [Line Items] | ||
Value of damages awarded | 4,481,206 | |
Total Damages | ||
Other Commitments [Line Items] | ||
Value of damages awarded | 8,837,806 | |
Elliott Olvera, et al v. El Pollo Loco, Inc., et al | ||
Other Commitments [Line Items] | ||
Accrual associated with loss contingencies | 16,300,000 | |
Daniel Turocy, et al. and Ron Huston et al v. El Pollo Loco Holdings, Inc., et al | ||
Other Commitments [Line Items] | ||
Accrual associated with loss contingencies | 20,000,000 | |
Janice P. Handlers-Bryman and Michael D. Bryman v. El Pollo Loco, Inc | ||
Other Commitments [Line Items] | ||
Accrual associated with loss contingencies | $ 0 |
Related Party Transactions - A
Related Party Transactions - Additional Information (Details) - Trimaran Pollo Partners, LLC | 12 Months Ended |
Dec. 26, 2018 | |
Related Party Transaction [Line Items] | |
Company's outstanding common stock owned by Trimaran Pollo Partners, L.L.C. | 42.90% |
Minimum | |
Related Party Transaction [Line Items] | |
Outstanding membership interest, percentage | 40.00% |
Ownership percentage by stockholders | 40.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Details) | 12 Months Ended | ||
Dec. 26, 2018USD ($)revenue_stream | Dec. 28, 2017USD ($) | Dec. 27, 2017USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Number of revenue streams | revenue_stream | 2 | ||
Revenue allocated to loyalty points not redeemed | $ 1,000,000 | $ 400,000 | |
Loyalty rewards program, expected loyalty points redemption period | 1 year | ||
Franchise license | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Franchise agreement term | 20 years | ||
Franchise agreement renewal term | 20 years | ||
Hardware Services | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Unsatisfied performance obligations | $ 0 | ||
Minimum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Performance obligations expected to be satisfied, renewal term | 10 years | ||
Maximum | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Performance obligations expected to be satisfied, renewal term | 20 years | ||
Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of adjustment resulted in an increase in accumulated deficit | $ 3,467,000 | ||
Accounting Standards Update 2014-09 | Accumulated Deficit | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of adjustment resulted in an increase in accumulated deficit | $ 3,467,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenues Disaggregated by Revenue Source and Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2018 | Sep. 26, 2018 | Jun. 27, 2018 | Mar. 28, 2018 | Dec. 27, 2017 | Sep. 27, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 106,261 | $ 112,178 | $ 111,633 | $ 105,756 | $ 95,202 | $ 101,155 | $ 105,573 | $ 99,771 | $ 435,828 | $ 401,701 | $ 380,123 |
Core Market | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 365,396 | ||||||||||
Non-Core Market | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 70,432 | ||||||||||
Company-operated restaurant revenue | Core Market | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 340,421 | ||||||||||
Company-operated restaurant revenue | Non-Core Market | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 48,414 | ||||||||||
Franchise revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 25,771 | 25,086 | 24,655 | ||||||||
Franchise revenue | Core Market | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 14,144 | ||||||||||
Franchise revenue | Non-Core Market | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 11,627 | ||||||||||
Franchise advertising fee revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 21,222 | $ 0 | $ 0 | ||||||||
Franchise advertising fee revenue | Core Market | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 10,831 | ||||||||||
Franchise advertising fee revenue | Non-Core Market | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 10,391 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Revenues Disaggregated by Geographic Market (Details) - Revenue - Geographic Concentration Risk | 12 Months Ended | ||
Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Percentage of concentration | 100.00% | ||
Greater Los Angeles area market | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of concentration | 69.20% | 73.00% | 75.00% |
Other markets | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of concentration | 30.80% |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Change in Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 26, 2018USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
December 28, 2017 | $ 5,759 |
Revenue recognized - beginning balance | (396) |
Additional contract liability | 365 |
Revenue recognized - additional contract liability | (135) |
September 26, 2018 | $ 5,593 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Unsatisfied Performance Obligation (Details) $ in Thousands | Dec. 26, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, renewal term | 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] | |
Performance obligations expected to be satisfied, renewal term | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, renewal term | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, renewal term | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, renewal term | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied, renewal term | |
Franchise Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-27 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | $ 369 |
Franchise Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | 400 |
Franchise Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | 392 |
Franchise Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | 389 |
Franchise Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | 379 |
Franchise Contract | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligations | $ 5,593 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Financial Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2018USD ($)restaurant$ / shares$ / restaurantshares | Sep. 26, 2018USD ($)restaurant$ / shares$ / restaurantshares | Jun. 27, 2018USD ($)restaurant$ / shares$ / restaurantshares | Mar. 28, 2018USD ($)restaurant$ / shares$ / restaurantshares | Dec. 27, 2017USD ($)restaurant$ / shares$ / restaurantshares | Sep. 27, 2017USD ($)restaurant$ / shares$ / restaurantshares | Jun. 28, 2017USD ($)restaurant$ / shares$ / restaurantshares | Mar. 29, 2017USD ($)restaurant$ / shares$ / restaurantshares | Dec. 26, 2018USD ($)restaurant$ / sharesshares | Dec. 27, 2017USD ($)restaurant$ / sharesshares | Dec. 28, 2016USD ($)restaurant$ / sharesshares | |
Selected Financial Data | |||||||||||
Total revenue | $ | $ 106,261 | $ 112,178 | $ 111,633 | $ 105,756 | $ 95,202 | $ 101,155 | $ 105,573 | $ 99,771 | $ 435,828 | $ 401,701 | $ 380,123 |
(Loss) income from operations | $ | (30,990) | 9,492 | 7,589 | 4,448 | (9,665) | (5,612) | 12,740 | 9,361 | (9,461) | 6,824 | 34,629 |
Provision (benefit) for income taxes ($) | $ | (8,410) | 2,388 | 865 | 1,949 | (4,757) | (2,457) | 4,244 | 3,467 | (3,208) | 497 | 12,783 |
Net (loss) income | $ | $ (23,410) | $ 6,835 | $ 5,052 | $ 2,529 | $ (38) | $ (4,039) | $ 7,819 | $ 4,877 | $ (8,994) | $ 8,619 | $ 18,339 |
Net (loss) income per share: | |||||||||||
Basic (usd per share) | $ / shares | $ (0.60) | $ 0.18 | $ 0.13 | $ 0.07 | $ 0 | $ (0.11) | $ 0.20 | $ 0.13 | $ (0.23) | $ 0.22 | $ 0.48 |
Diluted (usd per share) | $ / shares | $ (0.60) | $ 0.17 | $ 0.13 | $ 0.06 | $ 0 | $ (0.11) | $ 0.20 | $ 0.12 | $ (0.23) | $ 0.22 | $ 0.47 |
Weighted average shares used in computing net (loss) income per share: | |||||||||||
Basic (shares) | shares | 38,751,522 | 38,602,658 | 38,482,074 | 38,465,208 | 38,465,208 | 38,462,100 | 38,449,240 | 38,437,020 | 38,574,553 | 38,453,347 | 38,357,805 |
Diluted (shares) | shares | 38,751,522 | 39,205,090 | 39,043,434 | 38,987,351 | 38,465,208 | 38,462,100 | 39,123,961 | 39,079,007 | 38,574,553 | 39,086,676 | 39,026,950 |
Selected Operating Data | |||||||||||
Number of restaurants (at period end) | restaurant | 4 | 23 | 4 | 23 | 9 | ||||||
Average unit volume (AUV) (usd per restaurant) | $ / restaurant | 1,785 | 1,891 | 1,890 | 1,791 | 1,787 | 1,922 | 1,995 | 1,913 | |||
Company-operated | |||||||||||
Selected Operating Data | |||||||||||
Number of restaurants (at period end) | restaurant | 213 | 212 | 211 | 212 | 212 | 208 | 208 | 204 | 213 | 212 | |
Comparable restaurant sales growth (%) | |||||||||||
Comparable restaurant sales growth (%) | 3.70% | 2.00% | (1.60%) | (2.00%) | 0.90% | 0.90% | 2.40% | (0.40%) | |||
Franchised | |||||||||||
Selected Operating Data | |||||||||||
Number of restaurants (at period end) | restaurant | 271 | 271 | 269 | 268 | 265 | 265 | 264 | 263 | 271 | 265 | |
Comparable restaurant sales growth (%) | |||||||||||
Comparable restaurant sales growth (%) | 5.10% | 3.00% | (0.30%) | (0.40%) | 1.90% | 2.40% | 3.20% | (0.20%) | |||
System-wide | |||||||||||
Selected Operating Data | |||||||||||
Number of restaurants (at period end) | restaurant | 484 | 483 | 480 | 480 | 477 | 473 | 472 | 467 | 484 | 477 | |
Comparable restaurant sales growth (%) | |||||||||||
Comparable restaurant sales growth (%) | 4.40% | 2.60% | (0.90%) | (1.10%) | 1.40% | 1.70% | 2.90% | (0.30%) |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Unaudited) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2018 | Sep. 26, 2018 | Jun. 27, 2018 | Mar. 28, 2018 | Dec. 27, 2017 | Sep. 27, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 26, 2018 | Dec. 27, 2017 | Dec. 28, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Provision (benefit) for income taxes ($) | $ (8,410) | $ 2,388 | $ 865 | $ 1,949 | $ (4,757) | $ (2,457) | $ 4,244 | $ 3,467 | $ (3,208) | $ 497 | $ 12,783 |
Tax Cuts and Jobs Act of 2017, decrease in deferred tax liability | $ 1,400 | ||||||||||
TRA tax benefit | $ 2,000 | ||||||||||
Anti-dilutive securities not considered in diluted EPS calculation (shares) | 0 | 0 | 2,593,104 | 747,985 | 468,705 | ||||||
Legal settlements | $ 36,300 | $ 36,258 | $ 0 | $ 0 |