Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 03, 2021 | Mar. 17, 2021 | Jun. 28, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 3, 2021 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | J. Alexander’s Holdings, Inc. | ||
Entity Central Index Key | 0001617227 | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --01-03 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 15,090,077 | ||
Entity Public Float | $ 59,629,896 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | JAX | ||
Security Exchange Name | NYSE | ||
Entity File Number | 1-37473 | ||
Entity Incorporation, State or Country Code | TN | ||
Entity Tax Identification Number | 47-1608715 | ||
Entity Address, Address Line One | 3401 West End Avenue | ||
Entity Address, Address Line Two | Suite 260 | ||
Entity Address, Address Line Three | P.O. Box 24300 | ||
Entity Address, City or Town | Nashville | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37202 | ||
City Area Code | 615 | ||
Local Phone Number | 269-1900 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive Proxy Statement for its 2021 Annual Meeting of Shareholders are incorporated by reference into Part III hereof. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 12,363 | $ 8,803 |
Accounts and other receivables | 8,756 | 2,035 |
Inventories | 2,538 | 3,095 |
Prepaid expenses and other current assets | 2,105 | 4,159 |
Total current assets | 25,762 | 18,092 |
Other assets | 6,195 | 5,698 |
Property and equipment, at cost, less accumulated depreciation and amortization of $75,327 and $64,967 as of January 3, 2021 and December 29, 2019, respectively | 102,188 | 109,303 |
Right-of-use lease assets, net | 72,515 | 70,277 |
Goodwill | 15,737 | |
Tradename and other indefinite-lived assets | 25,648 | 25,648 |
Deferred income taxes, net | 4,627 | 2,918 |
Deferred charges, less accumulated amortization of $392 and $343 as of January 3, 2021 and December 29, 2019, respectively | 184 | 239 |
Total assets | 237,119 | 247,912 |
Current liabilities: | ||
Accounts payable | 5,147 | 6,353 |
Accrued expenses and other current liabilities | 9,422 | 9,389 |
Unearned revenue | 3,761 | 4,111 |
Current portion of long-term debt | 1,667 | 7,056 |
Current portion of lease liabilities | 5,428 | 4,317 |
Total current liabilities | 25,425 | 31,226 |
Long-term debt, net of portion classified as current and deferred loan costs | 12,746 | 2,845 |
Long-term lease liabilities, net of portion classified as current | 78,968 | 75,883 |
Deferred compensation obligations | 7,973 | 7,103 |
Other long-term liabilities | 1,902 | 138 |
Total liabilities | 127,014 | 117,195 |
Stockholders' equity: | ||
Common stock, par value $0.001 per share: authorized 30,000,000 shares; issued and outstanding of 15,070,077 and 15,011,676 shares as of January 3, 2021 and December 29, 2019, respectively | 15 | 15 |
Preferred stock, par value $0.001 per share: authorized 10,000,000 shares; no shares issued and outstanding as of January 3, 2021 or December 29, 2019 | ||
Additional paid-in capital | 105,915 | 104,056 |
Retained earnings | 2,617 | 25,088 |
Total stockholders' equity attributable to J. Alexander's Holdings, Inc. | 108,547 | 129,159 |
Non-controlling interests | 1,558 | 1,558 |
Total stockholders' equity | 110,105 | 130,717 |
Commitments and contingencies | ||
Total liabilities and stockholders' equity | $ 237,119 | $ 247,912 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Statement Of Financial Position [Abstract] | ||
Property and equipment, at cost, less accumulated depreciation and amortization | $ 75,327 | $ 64,967 |
Deferred charges, accumulated amortization | $ 392 | $ 343 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 15,070,077 | 15,011,676 |
Common stock, shares outstanding | 15,070,077 | 15,011,676 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 183,373 | $ 247,269 | $ 242,264 |
Costs and expenses: | |||
Food and beverage costs | 59,499 | 79,338 | 77,262 |
Restaurant labor and related costs | 64,160 | 76,905 | 74,850 |
Depreciation and amortization of restaurant property and equipment | 12,094 | 11,874 | 10,870 |
Other operating expenses | 43,048 | 49,451 | 48,245 |
Total restaurant operating expenses | 178,801 | 217,568 | 211,227 |
Transaction, contested proxy and other related expenses | 645 | 1,178 | 5,648 |
General and administrative expenses | 16,958 | 18,750 | 20,485 |
Goodwill impairment | 15,737 | ||
Long-lived asset impairment charges and restaurant closing costs | 1,047 | ||
Pre-opening expenses | 238 | 859 | 1,415 |
Total operating expenses | 213,426 | 238,355 | 238,775 |
Operating (loss) income | (30,053) | 8,914 | 3,489 |
Other (expense) income: | |||
Interest expense | (824) | (580) | (724) |
Other, net | 160 | 151 | 97 |
Total other expense | (664) | (429) | (627) |
(Loss) income from continuing operations before income taxes | (30,717) | 8,485 | 2,862 |
Income tax benefit | 8,449 | 568 | 1,596 |
Loss from discontinued operations, net | (203) | (236) | (459) |
Net (loss) income | $ (22,471) | $ 8,817 | $ 3,999 |
Basic (loss) earnings per share: | |||
(Loss) income from continuing operations, net of tax | $ (1.51) | $ 0.62 | $ 0.30 |
Loss from discontinued operations, net | (0.01) | (0.02) | (0.03) |
Basic (loss) earnings per share | (1.53) | 0.60 | 0.27 |
Diluted (loss) earnings per share: | |||
(Loss) income from continuing operations, net of tax | (1.51) | 0.61 | 0.30 |
Loss from discontinued operations, net | (0.01) | (0.02) | (0.03) |
Diluted (loss) earnings per share | $ (1.53) | $ 0.60 | $ 0.27 |
Weighted-average common shares outstanding: | |||
Basic | 14,720 | 14,695 | 14,695 |
Diluted | 14,720 | 14,741 | 14,863 |
Comprehensive (loss) income | $ (22,471) | $ 8,817 | $ 3,999 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity - USD ($) $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalCommon Class B Units | Retained Earnings | Retained EarningsCumulative Effect Period of Adoption Adjustment | Non-controlling Interests | Non-controlling InterestsCommon Class B Units |
Balances at Dec. 31, 2017 | $ 113,861 | $ 34 | $ 15 | $ 95,151 | $ 13,495 | $ 34 | $ 5,200 | ||
Balance, shares at Dec. 31, 2017 | 14,695,176 | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | ||||||||
Share-based compensation | $ 3,765 | 1,121 | 2,644 | ||||||
Net income (loss) | 3,999 | 3,999 | |||||||
Balances at Dec. 30, 2018 | $ 121,659 | $ (1,257) | $ 15 | 96,272 | 17,528 | $ (1,257) | 7,844 | ||
Balance, shares at Dec. 30, 2018 | 14,695,176 | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||||
Issuance of restricted and performance stock awards, shares | 316,500 | ||||||||
Share-based compensation | $ 1,498 | 1,498 | |||||||
Cancellation of subsidiary Class B Units (Note 2 (v)) | $ 6,286 | $ (6,286) | |||||||
Net income (loss) | 8,817 | 8,817 | |||||||
Balances at Dec. 29, 2019 | 130,717 | $ 15 | 104,056 | 25,088 | 1,558 | ||||
Balance, shares at Dec. 29, 2019 | 15,011,676 | ||||||||
Issuance of restricted stock awards, shares | 63,000 | ||||||||
Share-based compensation | 1,878 | 1,878 | |||||||
Vested shares withheld to pay employee portion of payroll taxes | (19) | (19) | |||||||
Vested shares withheld to pay employee portion of payroll taxes, shares | (4,599) | ||||||||
Net income (loss) | (22,471) | (22,471) | |||||||
Balances at Jan. 03, 2021 | $ 110,105 | $ 15 | $ 105,915 | $ 2,617 | $ 1,558 | ||||
Balance, shares at Jan. 03, 2021 | 15,070,077 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (22,471) | $ 8,817 | $ 3,999 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 12,290 | 12,123 | 11,157 |
Share-based compensation expense | 1,878 | 1,498 | 3,765 |
Asset impairment charges | 16,426 | ||
Deferred income taxes | (1,709) | (1,945) | (2,092) |
Other, net | 528 | 270 | 433 |
Changes in assets and liabilities: | |||
Accounts and other receivables | (6,721) | (286) | (303) |
Inventories | 557 | 39 | (330) |
Prepaid expenses and other current assets | 2,054 | (360) | (30) |
Accounts payable | (969) | (79) | 583 |
Accrued expenses and other current liabilities | 33 | (5,308) | 3,952 |
Unearned revenue | (350) | 165 | 251 |
Deferred compensation obligations | 870 | 852 | (200) |
Lease right-of-use assets and liabilities | 1,958 | 1,392 | |
Other assets and liabilities, net | 1,690 | 77 | 495 |
Net cash provided by operating activities | 6,064 | 17,255 | 21,680 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (7,382) | (11,937) | (18,111) |
Proceeds from sale of property and equipment | 1,070 | ||
Rabbi trust contribution | (75) | (95) | |
Other investing activities | (417) | (180) | (402) |
Net cash used in investing activities | (6,729) | (12,192) | (18,608) |
Cash flows from financing activities: | |||
Proceeds from borrowing under debt agreement | 32,100 | ||
Payments on long-term debt | (27,322) | (5,000) | (5,000) |
Other financing activities | (553) | (43) | |
Net cash provided by (used in) financing activities | 4,225 | (5,043) | (5,000) |
Increase (decrease) in cash and cash equivalents | 3,560 | 20 | (1,928) |
Cash and cash equivalents at beginning of year | 8,803 | 8,783 | 10,711 |
Cash and cash equivalents at end of year | 12,363 | 8,803 | 8,783 |
Supplemental disclosures: | |||
Property and equipment obligations accrued at beginning of year | 1,116 | 819 | 1,854 |
Property and equipment obligations accrued at end of year | 879 | 1,116 | 819 |
Cash paid for interest | 604 | 578 | 795 |
Cash (refunded) paid for income taxes | $ (230) | $ 1,072 | $ 704 |
Organization and Business
Organization and Business | 12 Months Ended |
Jan. 03, 2021 | |
Organization And Business [Abstract] | |
Organization and Business | Note 1 – Organization and Business J. Alexander’s Holdings, Inc. (the “Company”) was incorporated on August 15, 2014 in the state of Tennessee and is a holding company which is the sole managing member of and owns all of the outstanding Class A Units of J. Alexander’s Holdings, LLC, the parent company of all of the Company’s operating subsidiaries. The Company is a publicly-traded company, with its stock listed on the New York Stock Exchange under the symbol “JAX.” The Company, through J. Alexander’s Holdings, LLC and its subsidiaries, owns and operates full service, upscale restaurants including J. Alexander’s, Redlands Grill, Overland Park Grill, Merus Grill and Stoney River Steakhouse and Grill (“Stoney River”). At January 3, 2021 and December 29, 2019, the Company operated 46 and 47 restaurants, respectively, in 16 states. The Company’s restaurants are concentrated primarily in the East, Southeast, and Midwest regions of the United States. The Company does not have any restaurants operating under franchise agreements. Effects of COVID-19 On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency due to the global spread of a new strain of coronavirus (“COVID-19”) and the related risks to the international community. On March 11, 2020, the WHO classified the COVID-19 outbreak as a pandemic, and on March 13, 2020 the United States declared the pandemic a National Public Health Emergency. In response, many states and jurisdictions in which the Company operates restaurants issued stay-at-home orders and other measures, including the closure of all in-restaurant dining, aimed at slowing the spread of the virus beginning in March 2020. These measures resulted in the closure of the Company’s dining rooms beginning in mid-March 2020 and a shift to an off‑premise operations platform only until late April 2020 when certain states began to allow for partial reopening of dining rooms. Dining room capacity restrictions remain in place at varying degrees while a limited number of locations are operating at full capacity in accordance with their state’s or local government’s guidelines through the date of this report. As a result of the government‑mandated restrictions and related public concerns, the Company’s net sales, results of operations and cash flows were negatively impacted during fiscal year 2020 due to significant reductions in guest counts. The Company has taken measures to increase its off-premise sales during the COVID-19 pandemic, including implementing its online ordering platform, introducing curbside service, menu innovation which includes family-style meals and butcher-shop sales of cook-at-home, hand-cut steaks and whole loins, and increasing digital marketing and email campaigns to drive guest awareness. Further, the Company began implementing contactless payment in 2020 as well as utilizing paperless menus to enhance the safety of our guests and employees in the restaurant. Additionally, the Company has invested in pub and booth partitions to increase capacity while maintaining guest safety. In addition to the decline in restaurant sales, the Company also incurred approximately $3,444 of costs directly related to the COVID-19 pandemic in fiscal 2020, which consists primarily of benefits and payments to furloughed restaurant employees for emergency sick leave, vacation and other sick leave benefits and related payroll taxes as well as inventory waste. Additionally, the Company continued to incur expenses related to the ongoing operations of the restaurants as well as monthly rent and occupancy‑related costs during the period that its restaurants were temporarily closed or operating on an off-premise basis only or with limited capacity. The Company has implemented measures to reduce its costs and limit its cash outflows during the COVID-19 pandemic, including temporary reductions in staffing levels and related furloughs of restaurant-level hourly employees, elimination of certain positions at the Company’s corporate office, deferral or cancellation of significant capital expenditure projects, engaging in negotiations with vendors and landlords regarding deferral or abatement of rental and other contractual obligations and the deferral of tax payments where allowed. The Company executed deferral and abatement agreements for certain of its locations with landlords during each of the last three quarters of 2020. The disruption in operations and reduction in restaurant sales also led the Company to consider the impact of the COVID-19 pandemic on the recoverability of its assets, including property and equipment, right-of-use assets for operating leases, goodwill and intangible assets, and others. Such impairment analyses resulted in the Company recording impairment charges totaling $16,426 for the year ended January 3, 2021, which are discussed further in Notes 2(h) and 2(i) below. The ultimate severity and longevity of the COVID-19 pandemic is unknown, and therefore, it is possible that additional impairments could be identified in future periods, and such amounts could be material. To preserve financial flexibility, the Company drew down the remaining $17,000 of available capacity (at the time of the draw) under its revolving credit facility in March 2020. During April 2020, the Company also entered into deferral letter agreements with its lender to postpone principal and interest payments on its outstanding indebtedness for a period of 90 days and, in June 2020, an additional deferral letter was entered into to defer principal payments for an additional 90-day period. Additionally, the Company entered into a modification agreement in April 2020 to defer the maturity of, and interest payments under, one of its term loans to September 2021 (which was subsequently modified again in October 2020 as discussed below). In May 2020, the Company obtained a waiver letter from its lender that waived existing financial covenants and instituted new financial covenants. In June 2020, the Company entered into an amendment with its lender to increase the borrowing capacity under its revolving line of credit by an additional $15,000. In October 2020, the Company entered into an agreement with its lender which extended the maturity dates of certain of its outstanding loans along with other modifications including instituting new financial covenants as well as repaid $10,000 of the $17,000 borrowed in March 2020. See Note 10 – Debt for further discussion. On March 27, 2020, the Coronavirus Aid Relief and Economic Security Act (“CARES Act”) was enacted into law. The CARES Act is a tax and spending package intended to provide economic relief to address the impact of the COVID-19 pandemic. The CARES Act includes several significant income tax provisions that are addressed in Note 14 – Income Taxes below. Additionally, the CARES Act provides for deferred payment of the employer portion of social security taxes through the end of calendar 2020, with 50% of the deferred amount due December 31, 2021 and the remaining 50% due December 31, 2022. As of the fiscal year ended January 3, 2021, the Company has deferred the payment of $3,593 of social security taxes, $1,796 of which is accrued within “Other long-term liabilities” (see Note 11 – Other Long-Term Liabilities) while the current portion of $1,796 is included in “Accrued expenses and other current liabilities” (see Note 9 – Accrued Expenses and Other Current Liabilities) in the Consolidated Balance Sheet. Further, the CARES Act provides an employee retention credit (“ERC”), which is a refundable tax credit against certain employment taxes of up to $5 per employee for eligible employers. The tax credit is equal to 50% of qualified wages paid to employees during a quarter, capped at $10 of qualified wages per employee through the end of 2020. During fiscal year 2020, the Company determined that it was an eligible employer for purposes of the ERC and further determined that during the first three quarters of fiscal 2020 it had paid qualified wages of approximately $2,010 for which it intends to file amended payroll tax returns to claim as refunds. In fiscal 2020, based on the available accounting guidance, the Company recorded a $1,082 receivable which represents the amount determined to be probable of realization related to the ERC as a reduction to “Restaurant labor and related costs” on the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income and in “Accounts and other receivables” on the Company’s Consolidated Balance Sheet (See Note 2(e)) for the year ended January 3, 2021. The full impact of the COVID-19 pandemic continues to evolve as of the date of this report. Given the uncertainty surrounding the global economy and governmental restrictions on the Company’s operations, the Company cannot reasonably predict when its restaurants will be able to return to normal dining room operations. Due to the rapid development and fluidity of this situation, the Company cannot determine the ultimate impact that the COVID-19 pandemic will have on its consolidated financial condition, liquidity and future results of operations, and therefore any prediction as to the ultimate material adverse impact on the Company’s consolidated financial condition, liquidity, and future results of operations is uncertain. The Company does expect that its results of operations, cash flows and liquidity will be negatively affected by the pandemic during fiscal 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 03, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – a) Principles of Consolidation and Basis of Presentation The Consolidated Financial Statements are prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) and include the accounts of the Company as well as the accounts of its majority-owned subsidiaries. All intercompany profits, transactions, and balances between the Company and its subsidiaries have been eliminated. It is the Company’s policy to reclassify prior year amounts to conform to the current year’s presentation for comparative purposes, if such a reclassification is warranted. The Company is a holding company with no direct operations. It holds as its sole asset an equity interest in J. Alexander’s Holdings, LLC, and relies on J. Alexander’s Holdings, LLC to provide it with funds necessary to meet any financial obligations. b) Fiscal Year The Company utilizes a 52- or 53-week accounting period which ends on the Sunday closest to December 31, and each quarter typically consists of 13 weeks. Fiscal year 2020 included 53 weeks of operations with the fiscal fourth quarter including 14 weeks. Fiscal years 2019 and 2018 each included 52 weeks of operations. c) Discontinued Operations and Restaurant Closures The Company remains party to a lease agreement for a location that was closed in 2013 and is accounted for as a discontinued operation. The $203, $236 and $459 losses from discontinued operations in fiscal years 2020, 2019 and 2018, respectively, consist solely of exit and disposal costs for this location. d) Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less when purchased. Cash also consists of payments due from third‑party credit card issuers for purchases made by guests using the issuers’ credit cards. The issuers typically remit payment within three to four days of a credit card transaction. e) Accounts and Other Receivables Accounts receivable are primarily related to amounts due from various taxing jurisdictions, third-party online gift card sellers and expected workers’ compensation rebates and vendor rebates which have been earned but not yet received. Additionally, as discussed in Note 1 – “Organization and Business” above, the Company recorded a receivable in fiscal 2020 related to the ERC provided by the CARES Act. The Company also recorded taxes receivable which are reflected in this balance and discussed in Note 14 – Income Taxes. Due to the nature of the entities involved, the nature of the receivables and its past history with such receivables, the Company believes that an additional allowance against these recorded amounts is not warranted. f) Inventories Inventories are stated at the lower of cost or net realizable value, with cost being determined using an average cost method . At the beginning of fiscal 2020, the Company implemented a new inventory management system. In connection with this implementation, the Company changed its method of accounting for inventory from the lower of cost (first-in, first-out) or net realizable value method utilized by its legacy system to the lower of cost or net realizable value method, with cost being determined using an average cost method, effective December 30, 2019 (the first day of the current fiscal year). The Company believes this change in accounting principle is preferable, as it will result in greater precision in the costing of inventories. In addition, the average cost method better aligns with the functionality of the new inventory management system. The Company determined that the effects of adopting the average cost method were not material to its Consolidated Financial Statements. Prior to the conversion to the new inventory management system, the Company was not able to determine the impact of the change to the average cost method. Therefore, it did not retroactively apply the change to periods prior to fiscal year 2020. g) Property and Equipment, Net The Company states property and equipment at cost less accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight‑line method. The useful lives of assets are typically 30-40 years for buildings and land improvements and two-10 years for furniture, fixtures, and equipment. Leasehold improvements are amortized over the lesser of the useful life or the remaining lease term, generally inclusive of renewal periods. Gains or losses are recognized upon the disposal of property and equipment, and the asset and related accumulated depreciation and amortization are removed from the accounts. Maintenance, repairs and betterments that do not enhance the value of or increase the life of the assets are expensed as incurred. The Company capitalizes all direct external costs associated with obtaining the land, building, and equipment for each new restaurant, as well as construction period interest. All direct external costs associated with obtaining the dining room and kitchen equipment, signage, and other assets and equipment are also capitalized. Certain direct and indirect costs are capitalized as building and leasehold improvement costs in conjunction with capital improvement projects at existing restaurants and acquiring and developing new restaurant sites. Such costs are amortized over the life of the related assets. h) Goodwill and Other Intangible Assets Goodwill recorded as of December 29, 2019 represented the excess of cost over fair value of net assets acquired in a previous acquisition of the Company’s predecessor in 2012. Intangible assets include trade names, deferred loan costs, purchased trademarks and liquor licenses at certain restaurants. Goodwill, trade names, trademarks and liquor licenses are not subject to amortization, but are tested for impairment annually as of the fiscal year ‑end date, or more frequently, if events or changes in circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount of the goodwill or indefinite ‑lived intangible asset exceeds its fair value. In light of the decline in the market price of the Company’s common stock, the impact of mandated dining room closures on financial results, the expected reduction in economic activity in the near term, and the general economic and market volatility, the Company determined that these factors constituted an interim triggering event as of the end of each of the Company’s quarters in fiscal 2020, and performed impairment analyses with regard to its indefinite-lived intangible assets, property and equipment (including its right-of-use assets for operating leases and goodwill. As a result, the Company recorded asset impairment charges totaling $16,426 in fiscal year 2020 The Company early adopted Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The Company also performed a review of impairment for its other intangible assets at the end of each quarter in 2020, and it was determined that no impairment of these intangible assets existed in fiscal 2020. The same conclusion was reached as of December 29, 2019 and December 30, 2018 during the annual review for impairment in each of these years and, accordingly, no impairment losses were recorded. Deferred loan costs are subject to amortization and are classified in the “Long-term debt, net of portion classified as current and deferred loan costs” line item on the Consolidated Balance Sheets. Deferred loan costs are amortized over the life of the related debt. i) Impairment of Long‑Lived Assets In accordance with Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment The Company recorded a long-lived asset impairment charge of $689 to state the assets at its Lyndhurst Grill location in Cleveland, Ohio, at their fair value as of the end of the first quarter, which is presented as “Long-lived asset impairment charges and restaurant closing costs” on the Consolidated Statements of Operations and Comprehensive (Loss) Income. During the second quarter of 2020, the Company made the decision to permanently close this location after a review of its projected and historical financial performance. This location was also required to be temporarily closed in mid‑March 2020 due to COVID‑19-related traffic limitations unique to that specific restaurant which further impacted operating results. The Company assessed its other restaurant locations for indicators of impairment at the end of each quarter in fiscal year 2020 and assessed recoverability of certain fixed assets as warranted. No additional impairment was identified during the year ended January 3, 2021. No impairment charges were recorded for the years ended December 29, 2019 and December 30, 2018. j) Lease Accounting The Company through its subsidiaries has land only, building only, and land and building leases for a number of its restaurants and its corporate office that are recorded as operating leases. The Company determines if an arrangement meets the definition of a lease at inception, at which time it also performs an analysis to determine whether the lease qualifies as operating or financing. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease current and long-term liabilities on the Company’s Consolidated Balance Sheets. Lease expense for operating leases is generally recognized on a straight-line basis over the lease term and is included in other operating expenses (for restaurant properties) or general and administrative expense (for corporate office space) on the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company presents both the change in ROU assets and lease liabilities as a single line item in the Company’s Consolidated Statement of Cash Flows as the change in “Lease right-of-use assets and liabilities.” The Company does not currently have any arrangements that are classified as financing leases. Most of the Company’s leases have rent escalation clauses and some have rent holiday and contingent rent provisions. Terms for these leases are generally for 15 to 20 years and, in many cases, the leases provide for one or more five‑year Certain of the Company’s leases include both lease (i.e. fixed payments including rent) and non-lease components (e.g., common-area maintenance, marketing, and other miscellaneous fixed costs) which are accounted for as a single lease component as the Company has elected the practical expedient to combine lease and non-lease components for real estate leases. The Company is also a party to leases which have a non-cancelable lease term of less than one year with no option to purchase the underlying asset and, therefore, it has elected to exclude these short-term leases from its ROU assets and lease liabilities. For our existing operating leases that commenced prior to the adoption of ASC Topic 842, Leases In April 2020, the staff of the FASB issued a question-and-answer document that stated that entities may elect to account for lease concessions related to the effects of the COVID-19 pandemic as though the rights and obligations for those concessions existed as of the commencement of the contract rather than as a lease modification. Lessees may make the election for any lessor-provided lease concession related to the impact of the COVID-19 pandemic as long as the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. The Company has made such elections. k) Revenue Recognition Restaurant sales are recognized at a point in time when food and service are provided to guests at one of the Company’s restaurants. Taxes assessed by a governmental authority that are imposed on the Company’s sales of its food and service and collected by the Company from the guest for remittance to such authorities, are excluded from net sales. Further, the Company excludes any discounts, such as management meals and employee meals, associated with each sale. Unearned revenue, as separately stated on the Company’s Consolidated Balance Sheets, represents the contract liability for gift cards, which have been sold but not redeemed. Upon redemption, when the guest presents a gift card as a form of payment for food and service provided at the restaurant, net sales are recorded and the contract liability is redu ced by the amount of card value redeemed. The Company considers its performance obligations associated with gift cards sold to guests to be met when food and service have been provided to its guests, and a gift card is presented as a form of payment. The amount of gift card revenue that was previously deferred is recognized based on the selling price of the menu items at each restaurant. Prior to the adoption of ASC Topic 606, Revenue from Contracts with Customers Breakage of $422, $443 and $378 related to gift cards was recorded in fiscal years 2020, 2019 and 2018, respectively. The Company’s net sales and net income have historically been subject to seasonal fluctuations. Net sales and operating income typically reach their highest levels during the fourth quarter of the fiscal year due to holiday business and the first quarter of the fiscal year due in part to the redemption of gift cards sold during the holiday season. The contract liability relative to gift cards and the recognition of revenue associated with such form of payment is impacted accordingly. The Company’s unearned revenue balance has historically decreased throughout the course of the fiscal year until the fourth quarter when an increase in the balance is typically experienced given the seasonality of gift card sales. l) Vendor Rebates Vendor rebates are received from various nonalcoholic beverage suppliers and suppliers of food products and supplies. Rebates are recognized as a reduction to cost of sales in the period in which they are earned. m) Advertising Costs Costs of advertising are charged to expense at the time the costs are incurred. Advertising expense totaled $160, $156 and $154 during fiscal years 2020, 2019 and 2018, respectively. n) Transaction, Contested Proxy and Other Related Expenses In fiscal year 2018, the Company incurred transaction expenses totaling $5,648, a portion of which related to a terminated merger agreement with Ninety Nine Restaurant and Pub concept disclosed in previous annual reports. Additionally, the Company incurred transaction costs associated with the termination agreement (the “Termination Agreement”) between J. Alexander’s Holdings, LLC and Black Knight Advisory Services, LLC (“Black Knight”) effective November 30, 2018 which resulted in the termination of the management consulting agreement. Pursuant to the Termination Agreement, the termination payment of $4,560, along with other legal and professional fees, is included in transaction expenses for fiscal year 2018. For fiscal year 2019, transaction, contested proxy and other related expenses totaled $1,178 and included legal, proxy solicitor, and other professional and consulting fees along with printing and postage costs and other miscellaneous costs associated with both soliciting shareholder proxies for the Company’s 2019 annual meeting of shareholders and the ongoing evaluation of strategic alternatives. Transaction costs totaled $645 for fiscal year 2020 and included legal, other professional and consulting fees related to the ongoing evaluation of strategic alternatives. During the first quarter of 2020, the Company announced that given the uncertainties in the business community, the restaurant industry and the financial markets as a result of the COVID-19 pandemic, the ongoing review of strategic alternatives by the Company’s Board of Directors (the “Board”) was not expected to be completed until the uncertainties are resolved. o) Income Taxes Income taxes are accounted for using the asset and liability method, whereby deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and for operating loss and tax credit carryforwards. The deferred taxes generated within the J. Alexander’s Holdings, LLC partnership are accounted for using the “outside basis” approach, and the deferred taxes outside of the partnership are accounted for using the “inside basis” approach. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized. The benefits of uncertain tax positions are recognized in the Consolidated Financial Statements only after determining a more likely than not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. When facts and circumstances change, these probabilities are reassessed and any appropriate changes are recorded in the Consolidated Financial Statements. Uncertain tax positions are accounted for by determining the minimum recognition threshold that a tax position is required to meet before being recognized in the Consolidated Financial Statements. This determination requires the use of judgment in assessing the timing and amounts of deductible and taxable items. Tax positions that meet the more likely than not recognition threshold are recognized and measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties accrued related to unrecognized tax benefits or income tax settlements are recognized as components of income tax expense. p) Concentration of Credit Risk Financial instruments that are potentially exposed to a concentration of credit risk are cash and cash equivalents and accounts receivable. Operating cash balances are maintained in noninterest‑bearing transaction accounts, which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250. Further, a certain portion of the assets held in a rabbi trust established under a retirement benefit arrangement with certain of the Company’s current and former officers (the “Trust”) consists of cash and cash equivalents. The Company places cash with high‑credit‑quality financial institutions, and at times, such cash may be in excess of the federally insured limit. However, there have been no losses experienced related to these balances, and the credit risk is believed to be minimal. Also, the Company believes that its risk related to cash equivalents from third‑party credit card issuers for purchases made by guests using the issuers’ credit cards is not significant due to the number of banks involved and the fact that payment is typically received within three to four days of a credit card transaction. Therefore, the Company does not believe it has significant risk related to its cash and cash equivalents accounts. Another portion of the assets held in the Trust and the 409a Trust (each defined below) consist of U.S. Treasury bonds as well as a small number of corporate bonds with ratings no lower than BBB. The Company believes the credit risk associated with such bonds to be minimal given the historical stability of the U.S. government and the investment grade bond ratings relative to the corporate issuers. Concentrations of credit risk with respect to accounts receivable are related principally to receivables from governmental agencies related to refunds of franchise and income taxes and, in 2020, the ERC under the CARES Act. The Company does not believe it has significant risk related to accounts receivable due to the nature of the entities involved. q) Use of Estimates Management has made certain estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of net sales and expenses during the periods presented to prepare these Consolidated Financial Statements in conformity with GAAP. Significant items subject to such estimates and assumptions include those related to the accounting for gift card breakage, determination of uncertain tax positions and the valuation allowance relative to deferred tax assets, if any, estimates of useful lives of property and equipment and leasehold improvements, the carrying amount of intangible assets, fair market valuations, determination of lease terms, and accounting for impairment losses, contingencies, and litigation. Actual results could differ from these estimates. r) Sales Taxes As mentioned in Note 2 (k), revenues are presented net of sales taxes. The obligation for sales taxes is included in accrued expenses and other current liabilities until the taxes are remitted to the appropriate taxing authorities. s) Pre‑opening Expense Pre‑opening expenses are accounted for by expensing such costs as they are incurred. t) Comprehensive (Loss) Income Total comprehensive (loss) income consists solely of net income or net loss for all periods presented. Therefore, a separate statement of comprehensive (loss) income is not included in the accompanying Consolidated Financial Statements. u) Segment Reporting The Company through its subsidiaries owns and operates full‑service, upscale restaurants under various concepts exclusively in the United States that have similar economic characteristics, products and services, class of customer and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reportable segment. v) Non-controlling Interests Non-controlling interests on the Consolidated Balance Sheets represents the portion of the Company’s net assets attributable to the non-controlling J. Alexander’s Holdings, LLC Class B Unit holders. As of January 3, 2021 and December 29, 2019, the non-controlling interest presented on the Consolidated Balance Sheets is $1,558. On February 28, 2019, in conjunction with the Termination Agreement with Black Knight, the 1,500,024 Class B Units held by Black Knight were cancelled and forfeited for no consideration. Therefore, the share-based compensation expense associated with the Black Knight grant was reclassified to additional paid-in capital in fiscal year 2019, and as of January 3, 2021 and December 29, 2019, non-controlling interests consist solely of the non-cash compensation expense relative to the Class B Units held by management. The Hypothetical Liquidation of Book Value method was used as of January 3, 2021, December 29, 2019 and December 30, 2018 to determine allocations of non-controlling interests consistent with the terms of the Second Amended and Restated LLC Agreement of J. Alexander’s Holdings, LLC, and pursuant to that calculation, no allocation of net income was made to non-controlling interests for fiscal years 2020, 2019 or 2018, respectively. w) (Loss) Earnings per Share Basic (loss) earnings per share of common stock is computed by dividing net (loss) income by the weighted average number of shares outstanding for the reporting period. Diluted (loss) earnings per share of common stock is computed similarly to basic (loss) earnings per share except the weighted average shares outstanding are increased to include potential shares outstanding resulting from share-based compensation awards and additional shares from the assumed exercise of any common stock equivalents, if dilutive. In periods of net loss, no potential common shares are included in the diluted shares outstanding as the effect is anti-dilutive. J. Alexander’s Holdings, LLC Class B Units are considered common stock equivalents for this purpose. The number of additional shares of common stock related to these common stock equivalents is calculated using the if-converted method, if dilutive. The number of additional shares of common stock related to stock option awards and unvested restricted share awards subject to only a service condition is calculated using the treasury stock method, if dilutive. Unvested restricted share awards that are subject to a performance condition are regarded as contingently issuable common shares and are included in the denominator of the diluted earnings per share calculation using the treasury stock method as of the beginning of the period in which the performance condition has been satisfied, if dilutive. Refer to Note 3 – (Loss) Earnings per Share for the basic and diluted (loss) earnings per share calculations and additional discussion. x) On November 1, 2018, the Company’s Board authorized a share repurchase program which replaced the previous share repurchase program that expired on October 29, 2018, and allows for the repurchase of shares up to an aggregate purchase price of $15,000 over the three-year The repurchase program does not obligate the Company to acquire any particular amount of stock. There was no common stock repurchase activity under the program during fiscal year 20 20 , 2019, or 2018 . y ) Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (the “FASB”) Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) (“ASU No. 2020-04”). This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU No. 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. An entity may elect to apply the amendments for contract modifications by the impacted ASC topic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued through December 31, 2022. Once elected for an ASC topic, the amendments in ASU No. 2020-04 must be applied prospectively for all eligible contract modifications for that ASC topic. The Company has not adopted and continues to assess the potential impact of ASU No. 2020-04 on its Consolidated Financial Statements and related disclosures. |
(Loss) Earnings per Share
(Loss) Earnings per Share | 12 Months Ended |
Jan. 03, 2021 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings per Share | Note 3 – (Loss) Earnings per Share The following table sets forth the computation of basic and diluted (loss) earnings per share: Year Ended (Dollars and shares in thousands, except per share amounts) January 3, December 29, December 30, 2021 2019 2018 Numerator: (Loss) income from continuing operations, net of tax $ (22,268 ) $ 9,053 $ 4,458 Loss from discontinued operations, net (203 ) (236 ) (459 ) Net (loss) income $ (22,471 ) $ 8,817 $ 3,999 Denominator: Weighted average shares (denominator for basic (loss) earnings per share) 14,720 14,695 14,695 Effect of dilutive securities - 46 168 Adjusted weighted average shares and assumed conversions (denominator for diluted (loss) earnings per share) 14,720 14,741 14,863 Basic (loss) earnings per share: (Loss) income from continuing operations, net of tax $ (1.51 ) $ 0.62 $ 0.30 Loss from discontinued operations, net (0.01 ) (0.02 ) (0.03 ) Basic (loss) earnings per share $ (1.53 ) $ 0.60 $ 0.27 Diluted (loss) earnings per share: (Loss) income from continuing operations, net of tax $ (1.51 ) $ 0.61 $ 0.30 Loss from discontinued operations, net (0.01 ) (0.02 ) (0.03 ) Diluted (loss) earnings per share $ (1.53 ) $ 0.60 $ 0.27 Note: Per share amounts may not sum due to rounding. Basic (loss) earnings per share of common stock is computed by dividing net (loss) income by the weighted average number of shares outstanding for the reporting period. Diluted (loss) earnings per share of common stock gives effect during the reporting period to all dilutive potential shares outstanding resulting from share-based compensation awards and additional shares from the assumed exercise of any common stock equivalents, if dilutive. The Company incurred a net loss for the year ended January 3, 2021, and therefore, diluted shares outstanding equaled basic shares outstanding. The J. Alexander’s Holdings, LLC Class B Units are considered common stock equivalents, and the number of additional shares of common stock related to these Class B Units is calculated using the if-converted method. The 833,346 Class B Units associated with management’s profits interest awards were considered to be dilutive for one quarter within fiscal year 2018, and the impact on the diluted earnings per share calculation was additional shares of 3,719 for the year ended December 30, 2018. Conversely, these Class B Units were considered to be anti-dilutive for the year ended December 29, 2019 and, therefore, are excluded from the diluted earnings per share calculation in that year. The previously outstanding Black Knight profits interest Class B Units were considered to be dilutive for certain quarterly periods within fiscal years 2018, and the impact on the diluted earnings per share calculation was additional shares of 130,113 for the year ended December 30, 2018. See Note 19 – Related Party Transactions for discussion pertaining to the forfeiture and cancellation of these Class B Units during fiscal year 2019. The number of additional shares of common stock related to stock option awards is calculated using the treasury method, if dilutive. There were 1,739,250 stock option awards outstanding as of January 3, 2021. As of both December 29, 2019 and December 30, 2018, 1,495,750 stock option awards were outstanding. A portion of the stock option awards outstanding as of January 3, 2021 include awards to purchase 246,000 shares of common stock at an exercise price of $5.00 issued on August 7, 2020. The dilutive impact of the awards outstanding as of on the number of weighted average shares in the diluted earnings per share calculation was As of January 3, 2021 and December 29, 2019, there were 261,003 and 264,000 restricted share awards outstanding, respectively, which were subject to only a service condition. Restricted share awards subject to only a service condition are not regarded as outstanding for basic earnings per share calculation purposes until they are vested, and any potential dilutive impact of unvested restricted share awards is calculated using the treasury stock method. The restricted share awards outstanding as of January 3, 2021 include 63,000 awards which were granted by the Company to members of the Board on August 7, 2020 at $ 4.43 , the Company’s stock price on the date of grant. During fiscal 2020, 65,997 restricted share awards vested, and such vested shares, net of shares withheld for taxes, are included in weighted average shares outstanding for basic loss per share calculation purposes for the year ended January 3, 2021 . The 264,000 unvested restricted share awards outstanding as of December 29, 2019 were considered dilutive for the 2019 fiscal year and the impact on the number of weighted average shares in the diluted earnings per share calculation was 3,427 . As of January 3, 2021 and December 29, 2019, there were 52,500 performance share awards outstanding. Performance share awards are regarded as contingently issuable common shares and are included in the weighted average shares outstanding for basic earnings per share calculation purposes as of the beginning of the period in which the performance condition has been satisfied and the awards have vested. For diluted earnings per share calculation purposes under the treasury stock method, such performance share awards are included in the number of weighted average shares outstanding as of the beginning of the period in which the performance condition has been satisfied, if dilutive. The performance condition associated with such awards had not been met at either January 3, 2021 and December 29, 2019, and, therefore, the portion of the awards that had satisfied the applicable service condition at each of these reporting dates were excluded from the weighted average shares outstanding for basic (loss) earnings per share calculations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4 – Fair Value Measurements As of January 3, 2021 and December 29, 2019, the fair value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximated their carrying value due to their short-term nature. The carrying amounts of long-term debt approximate fair value as interest rates and negotiated terms and conditions are consistent with current market rates because of the close proximity of recent refinancing transactions to the dates of these Consolidated Financial Statements (Level 2). The Company utilizes the following fair value hierarchy, which prioritizes the inputs into valuation techniques used to measure fair value. Accordingly, the Company uses valuation techniques which maximize the use of observable inputs and minimize the use of unobservable inputs when determining fair value. The three levels of the hierarchy are as follows: Level 1 Defined as observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2 Defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Defined as unobservable inputs for which little or no market data exists, therefore, requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis During the first quarter of fiscal year 2020, primarily due to the impacts of the COVID-19 pandemic, the Company determined that a triggering event had occurred requiring an impairment evaluation of its long-lived assets, indefinite‑lived intangible assets and goodwill. As a result of these analyses, the Company recorded a $689 impairment charge related to the long-lived assets at one restaurant location that management determined would be permanently closed (i.e., Lyndhurst Grill in Cleveland, Ohio) and a $15,737 impairment charge related to the Company’s recorded goodwill. The impairment charges were measured based on the amounts by which the carrying values of the assets exceeded their relative fair values. No impairment was recorded for indefinite‑lived intangible assets as their fair values were determined to substantially exceed their carrying values. Fair values for goodwill and long-lived assets that were impaired during fiscal year 2020 were estimated utilizing a market approach, and fair value estimates for indefinite-lived intangibles were determined based on an income approach. Fair value estimates utilized market participant assumptions reflecting all available information as of the impairment date. The fair value of goodwill was $0 (Level 3), and the Lyndhurst Grill location was sold during the third quarter of 2020 and therefore has no remaining value on the Company’s Consolidated Balance Sheet as of January 3, 2021. There were no non-financial assets measured at fair value on a non‑recurring basis as of January 3, 2021 or December 29, 2019. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated: January 3, 2021 Level 1 Level 2 Level 3 Cash and cash equivalents * $ 81 $ - $ - U.S. government obligations * 276 - - Corporate bonds * 2,241 - - Mutual and money market funds ** 1,222 - - Total $ 3,820 $ - $ - December 29, 2019 Level 1 Level 2 Level 3 Cash and cash equivalents * $ 71 $ - $ - U.S. government obligations * 300 - - Corporate bonds * 2,195 - - Mutual and money market funds ** 833 - - Total $ 3,399 $ - $ - * - As held in the Trust (as defined below). ** - As held in the 409a Trust (as defined below). Cash and cash equivalents are classified as Level 1 of the fair value hierarchy as they represent cash held in the Trust. Cash held in the Trust is invested through an overnight repurchase agreement the investments of which may include U.S. Treasury securities, such as bonds or Treasury bills, and other agencies of the U.S. government. Such investments are valued using quoted market prices in active markets. U.S. government obligations held in the Trust include U.S. Treasury Bonds. These bonds as well as the corporate bonds listed above are considered to be trading securities and are classified as Level 1 of the fair value hierarchy given their readily available quoted prices in active markets. At January 3, 2021 and December 29, 2019, the Company held investments in mutual and money market funds classified as trading securities that were also held in a rabbi trust as of January 3, 2021 (the “409a Trust”) to support its future obligations to participants of its nonqualified deferred compensation plan, which are carried at fair value based on quoted market prices in active markets for identical assets (Level 1). At January 3, 2021 and December 28, 2019, the Company held life insurance policies in the Trust that are recorded at cash surrender value. The value of each policy was determined by MassMutual Financial Group, an A-rated insurance company, which provides the value of these policies to the Company on a regular basis. There were no transfers between the levels listed above during either of the reporting periods. Unrealized gains or losses on investments held in either the Trust or the 409a Trust are presented as a component of “Other, net” on the Consolidated Statements of Operations and Comprehensive (Loss) Income. The assets of both the Trust and the 409a Trust disclosed above are presented as a component of “Other assets” on the Consolidated Balance Sheets. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jan. 03, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | Note 5 – Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: January 3, December 29, 2021 2019 Prepaid insurance $ 1,534 $ 1,422 Prepaid rent 227 1,081 Payroll taxes - 1,183 Other 344 473 Prepaid expenses and other current assets $ 2,105 $ 4,159 |
Other Assets
Other Assets | 12 Months Ended |
Jan. 03, 2021 | |
Other Assets [Abstract] | |
Other Assets | Note 6 – Other Assets Other assets consisted of the following: January 3, December 29, 2021 2019 Cash, cash equivalents and securities held in the Trust $ 2,598 $ 2,566 Cash surrender value of life insurance 2,329 2,253 Investments in trading securities 1,222 833 Other 46 46 Other assets $ 6,195 $ 5,698 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 03, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 7 – Property and Equipment Property and equipment, at cost, less accumulated depreciation and amortization, consisted of the following: January 3, December 29, 2021 2019 Land $ 19,167 $ 20,204 Buildings 31,564 32,785 Leasehold improvements 78,984 78,047 Restaurant and other equipment 42,026 41,504 Construction in progress 5,774 1,730 177,515 174,270 Less accumulated depreciation and amortization (75,327 ) (64,967 ) Property and equipment, net $ 102,188 $ 109,303 For fiscal years 2020, 2019 and 2018, depreciation expense from continuing operations related to restaurant and corporate office property and equipment was $12,290, $12,123 and $11,157, respectively. The loss on disposition of assets from continuing operations included in the “Other operating expenses” line item of the Statements of Operations and Comprehensive (Loss) Income, primarily related to the refreshing of assets through store remodels, was $68, $135 and $202 for fiscal years 2020, 2019 and 2018, respectively. |
Goodwill and Indefinite Lived I
Goodwill and Indefinite Lived Intangible Assets | 12 Months Ended |
Jan. 03, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Indefinite-Lived Intangible Assets | Note 8 – Goodwill and Indefinite‑Lived Intangible Assets Goodwill and indefinite-lived intangible assets consisted of the following: January 3, December 29, 2021 2019 Tradename $ 25,069 $ 25,069 Goodwill - 15,737 Liquor licenses 579 579 Intangible assets $ 25,648 $ 41,385 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jan. 03, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 9 – Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: January 3, December 29, 2021 2019 Taxes, other than income taxes $ 3,338 $ 4,447 Salaries, wages, vacation, and incentive compensation 2,433 3,009 Current portion of deferred employer FICA tax 1,796 - Transaction, contested proxy and other related expenses 67 412 Accrued audit and accounting fees 481 240 Other 1,307 1,281 Accrued expenses and other current liabilities $ 9,422 $ 9,389 |
Debt
Debt | 12 Months Ended |
Jan. 03, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 10 – Debt Current Loan Agreement The Company is party to the Fourth Amended and Restated Loan Agreement (the “Fourth Loan Agreement”) with Pinnacle Bank, dated October 28, 2020. The Fourth Loan Agreement amended and restated the Company’s Third Amended and Restated Loan Agreement (the “Third Loan Agreement”) entered into on June 5, 2020, and the Third Loan Agreement amended and restated in its entirety the Company’s Second Amended and Restated Loan Agreement (the “Second Loan Agreement”), dated May 20, 2015. The borrower under the Fourth Loan Agreement is J. Alexander’s, LLC, and it is guaranteed by J. Alexander’s Holdings, LLC and all of its significant subsidiaries. The indebtedness outstanding under this Fourth Loan Agreement is secured by liens on certain personal property of the Company and its subsidiaries, subsidiary guarantees, and a mortgage lien on certain real property. The Fourth Loan Agreement, among other things, permits payments of tax dividends to members, restricts liens and encumbrances, restricts dividends, and contains certain other provisions customarily included in such agreements. The Fourth Loan Agreement consists of the following: • A $16,000 revolving line of credit (“Revolving Line of Credit”) that matures on January 1, 2023; • A $4,028 term loan (“Mortgage Loan”) that matures on January 1, 2023; • A $20,000 development line of credit (“Development Line of Credit”) that matures on January 1, 2023; and • A $556 term loan (“Term Loan”) which matured on December 10, 2020. The balances of each of these notes as of January 3, 2021 and December 29, 2019 is set forth below: January 3, January 3, December 29, December 29, 2021 2021 2019 2019 Current Long-term Current Long-term Mortgage Loan $ 1,667 $ 2,083 $ 1,667 $ 2,917 Term Loan - - 1,389 - Development Line of Credit - 10,000 4,000 - Revolving Line of Credit - 1,000 - - Less: Net deferred loan costs - (337 ) - (72 ) Total debt $ 1,667 $ 12,746 $ 7,056 $ 2,845 Interest Rates Prior to the amendments discussed above, at December 29, 2019, all of the notes under the Second Loan Agreement bore interest at 30-day LIBOR plus a sliding interest rate scale determined by the maximum adjusted debt to EBITDAR ratio. For the year ended December 29, 2019, the interest rate was set at 3.57% for the Second Loan Agreement, which is 30-day LIBOR plus 1.85%. Additionally, the non-use fee payable quarterly on the Development Line of Credit and Revolving Line of Credit was based on a sliding rate determined by a maximum adjusted debt to EBITDAR ratio which equaled 0.20% as of December 29, 2019. The Third Loan Agreement amended the interest rate with respect to only the Revolving Line of Credit, and under the Third Loan Agreement any borrowings under that note bore interest at a rate of 30-day LIBOR plus 2.5%, with a floor for LIBOR of 1.5%, while the Company’s other notes continued to bear interest based on the same sliding scale methodology as under the Second Loan Agreement. The Fourth Loan Agreement made the same rates apply to each of the Company’s notes and removed the maximum adjusted debt to EBITDAR ratio financial covenant which previously determined interest rates. Under the Fourth Loan Agreement, each of the Company’s notes bear interest at a rate of 30-day LIBOR plus 2.5 % , with a floor for LIBOR of 1.5 %, and was set at 4.0 % as of January 3, 2021. COVID-19 Response and Loan Modifications and Amendments During the first quarter of 2020, the Company announced it drew down the remaining $17,000 of available capacity (at the time of the draw) under the Development Line of Credit and the Revolving Line of Credit (the “Credit Draw”). The Credit Draw was undertaken as a precautionary measure to provide increased liquidity and preserve financial flexibility in light of the disruption and uncertainty resulting from the COVID-19 pandemic. Following the Credit Draw, debt outstanding under the Development Line of Credit and the Revolving Line of Credit totaled $21,000. In October 2020, the Company repaid $10,000 of the $20,000 outstanding Development Line of Credit balance. On April 15, 2020, the Company entered into a modification of the Second Loan Agreement impacting the Term Loan, which deferred the two remaining principal payments totaling $556 until the Term Loan’s new maturity date which was modified to be September 3, 2021. As noted below, the Fourth Loan Agreement further modified the maturity date of the Term Loan to December 10, 2020. With respect to interest payments in the interim, the Term Loan was modified to defer such payments until July 3, 2020 at which point monthly interest payments resumed and continued through its maturity date of December 10, 2020. Similar to the Term Loan, the Company also negotiated for the deferral of principal and interest payments related to the Mortgage Loan and executed deferral letters in both April 2020 and June 2020 related to such deferrals. The principal payments otherwise due in April through September 2020 totaling $834 will now be payable when the loan matures on January 1, 2023 and interest payments resumed on July 3, 2020. The Company also reached an agreement with its lender in April 2020 to defer interest payments on its Development Line of Credit and Revolving Line of Credit for the months of April, May and June 2020, and interest payments resumed on July 3, 2020. On June 5, 2020, the Company entered into the Third Loan Agreement with Pinnacle Bank which amended its Revolving Line of Credit to expand its capacity from $1,000 to a total of $16,000 by adding an accordion feature for the additional $15,000, with the additional capacity available for general corporate purposes, including working capital and letters of credit. This amendment also required the Company to pledge five previously unencumbered fee-owned properties as collateral to the lender. The additional capacity is available for borrowing by the Company in amounts up to and including $5,000 per fiscal month beginning in the eighth fiscal month of 2020, with any amounts not borrowed during any particular period to be available for borrowing in subsequent periods. Any advances on the expanded Revolving Line of Credit are contingent on the Company achieving certain levels of revenue on a trailing three-fiscal-month basis. The Third Loan Agreement also modified the interest rate with respect to the Revolving Line of Credit as discussed above. Additionally, the Third Loan Agreement included certain terms agreed upon in a May 2020 waiver, which waived financial covenant compliance for then existing financial covenants under the Second Loan Agreement beginning May 7, 2020 through the period ending July 4, 2021, and implemented two new financial covenants. These financial covenants are now incorporated in the Fourth Loan Agreement, which also extended the Company’s obligation to maintain these financial covenants through the new maturity date at the end of fiscal 2022. The details of the new financial covenants are detailed below. The Company entered into the Fourth Loan Agreement with Pinnacle Bank on October 28, 2020, which extended the maturity dates of the Revolving Line of Credit, the Development Line of Credit, and the Mortgage Loan to January 1, 2023 and modified the maturity date of the Term Loan to December 10, 2020. The Fourth Loan Agreement also modified interest rates for the Mortgage Loan, the Term Loan and the Development Line of Credit to align such rates with the interest rate for the Revolving Line of Credit as discussed above. Lastly, as discussed below, the Fourth Loan Agreement modified loan covenants as detailed below. Financial Covenants The Fourth Loan Agreement incorporates the financial covenants previously in effect under the Third Loan Agreement and adds a fixed charge coverage ratio covenant (originally in the Second Loan Agreement with our lender). Further, a previously applicable financial covenant referred to as the maximum adjusted debt to EBITDAR ratio in the Company’s previous filings was eliminated in the Fourth Loan Agreement as mentioned above. The financial covenants under the Fourth Loan Agreement require (i) minimum revenue of (a) at least $99,800 for the Company’s fiscal year ended January 3, 2021, (b) at least $118,400 on a four quarter trailing basis by April 4, 2021, and (c) at least $166,800 on a four quarter trailing basis by July 4, 2021 through the maturity date, and (ii) a maximum adjusted debt to tangible net worth ratio of 0.80 or less, measured quarterly beginning September 27, 2020, and (iii) a fixed coverage charge of not less than 1.00 to 1.00 for the period commencing July 5, 2021 through January 2, 2022, and not less than 1.05 to 1.00 beginning on January 3, 2022 through January 1, 2023, or the maturity date. The fixed charge coverage ratio is defined in the Fourth Loan Agreement as the ratio of (a) the sum of net (loss) income for the applicable period (excluding the effect on such period of any extraordinary or nonrecurring gains or losses, including any asset impairment charges, restaurant closing expenses, changes in valuation allowance for deferred tax assets, and non-cash deferred income tax benefits and expenses and up to $ 1,000 (in the aggregate for the remaining term of the loans) in uninsured losses) plus depreciation and amortization plus interest expense plus rent payments plus non-cash share-based compensation expense plus other non-cash expenses or charges plus expenses associated with a public offering, spin-off, strategic evaluation, or acquisition/merger process regardless of whether such events occur or are delayed minus the greater of either actual store maintenance capital expenditures (excluding major remodeling or image enhancements) or the total number of stores in operation for at least 18 months multiplied by $ 40 to (b) the sum of interest expense during such period plus rent payments made during such period plus payments of long-term debt and finance lease obligations made during such period, all determined in accordance with U.S. GAAP. Additionally, the Fourth Loan Agreement specifically states that for purposes of the financial covenant calculations, operating leases are not considered indebtedness. If an event of default shall occur and be continuing under the Fourth Loan Agreement, the commitment under the Fourth Loan Agreement may be terminated and any principal amount outstanding, together with all accrued unpaid interest and other amounts owing in respect thereof, may be declared immediately due and payable. As discussed above, J. Alexander’s, LLC received a waiver of the then existing financial covenants during certain reporting periods in 2020, and it was in compliance with all applicable financial covenants during each of the non-waived reporting periods during fiscal 2020. Paycheck Protection Program On April 10, 2020 and April 15, 2020, respectively, J. Alexander’s, LLC and Stoney River Management Company, LLC each an indirect subsidiary of the Company, were each granted loans from Pinnacle Bank in the aggregate amounts of $10,000 and $5,100 pursuant to the Paycheck Protection Program under the CARES Act. The Company believed its subsidiary operating companies were eligible for the loans in accordance with the special eligibility provisions for larger companies under provisions included in the CARES Act and the applicable implementing guidance issued by the U.S. Small Business Administration under the Paycheck Protection Program that was available at the time loan applications were submitted. The loans had been obtained to support the goal in the legislation of providing financial assistance to restaurant-level employees, including approximately 3,400 furloughed hourly employees that were not assisting with the Company’s carry-out programs at the time, and to restore the Company’s workforce as quickly as possible once dine-in operations could be safely resumed in accordance with applicable state and local government guidelines. However, as a result of additional guidance issued by the United States Treasury Department and the U.S. Small Business Administration on April 23, 2020, the Company repaid both the $10,000 and $5,100 loans in full on April 29, 2020. Other Deferred loan costs are $1,040 and $508, net of accumulated amortization expense of $703 and $436 at January 3, 2021 and December 29, 2019, respectively. Deferred loan costs are being amortized to interest expense over the life of the related debt. For the next five fiscal years, scheduled amortization of deferred loan costs is as follows: 2021 – $169; 2022 - $168; and 2023 and thereafter – $0. At January 3, 2021 , the amounts outstanding under the Development Line of Credit and Revolving Line of Credit were $10,000 and $1,000, respectively, and a total of $25,000 was available to us for borrowing under these lines of credit on this date. At January 3, 2021, the Fourth Loan Agreement was secured by the real estate, equipment and other personal property of 17 restaurant locations with an aggregate net book value of $38,379. The aggregate maturities of long‑term debt for the five fiscal years succeeding January 3, 2021 are as follows: 2021 – $1,667; 2022 – $13,083; 2023 and thereafter – $0. |
Other Long Term Liabilities
Other Long Term Liabilities | 12 Months Ended |
Jan. 03, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Note 11 - Other Long‑Term Liabilities Other long‑term liabilities consisted of the following: January 3, December 29, 2021 2019 Noncurrent portion of deferred employer FICA tax $ 1,796 $ - Uncertain tax positions 14 9 Other 92 129 Other long-term liabilities $ 1,902 $ 138 |
Revenue
Revenue | 12 Months Ended |
Jan. 03, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 12 – Revenue On January 1, 2018, the Company adopted ASC Topic 606 using the cumulative effect method applied to those contracts which were not completed as of January 1, 2018. The Company recorded a net increase to opening retained earnings of $34 as of January 1, 2018 due to the cumulative impact of adopting ASC Topic 606, with the impact wholly related to the Company’s accounting for gift card breakage. The following table presents the Company’s net sales disaggregated by source for the periods presented: Year Ended January 3, December 29, December 30, 2021 2019 2018 Restaurant $ 182,951 $ 246,826 $ 241,886 Gift card breakage 422 443 378 Net sales $ 183,373 $ 247,269 $ 242,264 The Company recognized revenue associated with gift cards redeemed by guests during fiscal years 2020, 2019 and 2018 of $3,242, $4,115 and $4,011, respectively. Further, of the amounts that were redeemed during fiscal years 2020, 2019 and 2018, $2,069, $2,464 and $2,396 were recorded within unearned revenue at the beginning of each respective fiscal year. Unearned revenue increased by $3,314 and $4,723 as a result of gift cards sold during the fiscal years 2020 and 2019, respectively. |
Leases
Leases | 12 Months Ended |
Jan. 03, 2021 | |
Leases [Abstract] | |
Leases | Note 13 - Leases The Company adopted ASC Topic 842, Leases, as of the first day of fiscal year 2019, December 31, 2018, electing the optional transition method to apply the standard as of the effective date. Accordingly, the Company recorded a cumulative-effect adjustment to opening retained earnings for the impairment of an abandoned ROU asset at the effective date for a restaurant that was previously impaired and the remaining lease payments were accounted for under ASC Topic 420, Exit or Disposal Obligations, as shown in the Consolidated Statement of Shareholders’ Equity. Additionally, the adoption of Topic 842 had a material impact on the Company’s assets and liabilities as a result of the recognition of operating lease ROU assets and lease liabilities on its Consolidated Balance Sheets. The adoption of Topic 842 did not have a material effect on the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income and Consolidated Statements of Cash Flows. As of January 3, 2021, the Company is party to 30 separate operating leases for real estate on which it currently operates its restaurants and has its corporate office space and remains a party to one operating lease for a closed location. Additionally, d uring fiscal year 2020, the Company took possession of the new restaurant location in San Antonio, Texas, and the Redlands Grill location is slated to open in March 2021. Further, the Company entered into a lease for a new restaurant location in Madison, Alabama, which it anticipates will open during the fourth quarter of 2021 but for which it has not yet taken possession. The commencement date of the Madison, Alabama, location has been delayed from the previously anticipated date due to the Company’s decision to limit capital expenditures in response to the COVID-19 pandemic. Each of the leases for the two new locations include a lease term, including option periods, of 30 years. The Company is also party to one equipment operating lease. The Company modified certain of its leases during fiscal year 2020 for matters unrelated to the COVID-19 pandemic and updated the ROU assets, lease liabilities and related incremental borrowing rates as required. During fiscal year 2020, the Company was granted COVID-19 related rent concessions for 16 of its restaurant locations and for its corporate office. Under these landlord agreements, certain rent payments will be deferred for various periods, generally providing for 50% rent deferral ranging between three to six months. Certain other locations received rent abatements ranging from 50% to the full amount of the original lease amount for a period of three to seven months. The Company has elected to account for lease concessions resulting directly from COVID-19 as though the enforceable rights and obligations to the concessions existed in the respective agreements at lease inception and will not account for the concessions as lease modifications, unless the concession results in a substantial increase in the Company’s obligations, taking into consideration the guidance issued by the FASB in its Staff question-and-answer document regarding rent concessions related to the effects of the COVID-19 pandemic. Of the 17 rent concessions, 15 agreements qualified for this accounting election, and the remaining two agreements were treated as lease modifications due to a significant extension to the lease term resulting in a substantial increase in total lease payments associated with each lease. The Company’s ROU assets and lease liabilities have been remeasured for lease concessions received to take into consideration the impact of the two lease modifications including adjustment for their respective incremental borrowing rates as well as the timing of the aforementioned abatements and deferrals, the impact of which is presented in the information below. Components of lease cost are as follows: Year Ended Year Ended January 3, December 29, 2021 2019 Operating lease cost $ 9,311 $ 8,930 Variable lease cost 2,558 2,438 Short-term lease cost 162 167 Total lease cost $ 12,031 $ 11,535 Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: Year Ended Year Ended January 3, December 29, 2021 2019 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 7,885 $ 8,330 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations 4,468 3,752 Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows as of the period indicated: January 3, December 29, 2021 2019 Weighted-average remaining lease term 15.9 years 15.7 years Weighted-average discount rate 5.84 % 6.01 % Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows: January 3, 2021 2021 $ 10,097 2022 9,731 2023 9,745 2024 9,402 2025 8,718 2026 and thereafter 87,675 Total minimum lease payments 135,368 Less: Imputed interest (1) 50,972 Present value of lease liabilities $ 84,396 (1) |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14 – Income Taxes Significant components of the Company’s income tax benefit for the periods indicated below are as follows : Year Ended January 3, December 29, December 30, 2021 2019 2018 Current income taxes: Federal $ (6,936 ) $ 697 $ (152 ) State and local 192 678 565 Total current income taxes (6,744 ) 1,375 413 Deferred income taxes: Federal (1,257 ) (1,838 ) (2,041 ) State and local (448 ) (105 ) 32 Total deferred income taxes (1,705 ) (1,943 ) (2,009 ) Income tax benefit $ (8,449 ) $ (568 ) $ (1,596 ) The Company’s effective tax rate differs from the federal statutory rate as set forth in the following table for the periods indicated: Year Ended January 3, December 29, December 30, 2021 2019 2018 Federal income tax 21.0 % 21.0 % 21.0 % Federal tax reform - - 3.3 Goodwill impairment impact (10.7 ) - - State income tax 1.4 6.0 14.3 Wage credits 6.1 (32.3 ) (107.5 ) Uncertain tax positions - - (0.3 ) Return to provision 0.1 (0.6 ) (3.1 ) Rate differential between current and deferred taxes 10.1 - (1.3 ) Incentive Stock Options (0.2 ) 1.3 4.4 Other (0.5 ) (2.3 ) 2.8 Effective tax rate 27.3 % (6.9 )% (66.4 )% Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of January 3, 2021, and December 29, 2019, are as follows: January 3, December 29, 2021 2019 Deferred tax assets: Net operating loss carryforwards $ 742 $ 207 Accrued bonuses 3 47 Share-based compensation awards 739 546 State bonus depreciation 282 115 General business credit carryforward 7,108 3,304 Other 120 77 Total deferred tax assets 8,994 4,296 Less: deferred tax assets valuation allowance (317 ) (168 ) Total net deferred tax assets 8,677 4,128 Deferred tax liabilities: Partnership differences (4,050 ) (1,210 ) Total deferred tax liabilities (4,050 ) (1,210 ) Net deferred tax asset $ 4,627 $ 2,918 ASC Topic 740, Income Taxes As of January 3, 2021, the Company has state gross operating loss carryforwards gross of the valuation allowance and uncertain tax positions discussed above of approximately $15,185 expiring in years 2021 through 2040 as well as an additional $3,029 that will never expire. The Company also has federal general business credit carryforwards of $7,108 expiring in 2031 through 2040. The CARES Act includes several significant income and other business tax provisions that, among other things, eliminates the taxable income limit for certain net operating losses (“NOLs”) and allows businesses to carry back NOLs arising in 2018, 2019 and 2020 to the five prior tax years, loosens the business interest limitation under Internal Revenue Code Section 163(j) and fixes the qualified improvement property (“QIP”) regulations in the 2017 Tax Cuts and Jobs Act. As a result of the CARES Act, the Company estimates that it will be able to obtain a $6,856 tax refund from the carryback of $23,761 fiscal 2020 gross federal NOLs, which otherwise would have an indefinite carryforward period. Additionally, the Company has recorded a liability (including interest) in connection with uncertain tax positions related to state tax issues totaling $72 and $66 as of January 3, 2021 and December 29, 2019, respectively. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The Company has accrued interest related to unrecognized tax benefits of approximately $6 and $1 as of January 3, 2021 and December 29, 2019, respectively. A reconciliation of the beginning and ending unrecognized tax benefit associated with these positions (excluding federal benefit and the aforementioned accrued interest) is as follows: January 3, December 29, 2021 2019 Balance at the beginning of the year $ 83 $ 88 Changes based on tax positions taken during the current year - - Changes based on tax positions taken during prior years - - Reductions related to settlements with taxing authorities and lapses of statutes of limitations - (5 ) Balance at the end of the year $ 83 $ 83 As of January 3, 2021, the total amount of gross unrecognized tax benefit that, if recognized, would impact the effective tax rate was $23. The Company expects that gross unrecognized benefits will decrease by $18 due to statute expirations within the next twelve months. The Company and its subsidiaries file a partnership federal income tax return, consolidated corporate federal income tax return, and a separate corporate federal income tax return as well as various state and local income tax returns. The earliest year open to examination in the Company’s major jurisdictions is 2017 for federal and 2016 for state income tax returns. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jan. 03, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | Note 15 – Share-based Compensation For the years ended January 3, 2021, December 29, 2019 and December 30, 2018, the Company recorded total share-based compensation expense of $1,878, $1,498 and $3,765, respectively, the components of which are discussed in further detail below. J. Alexander’s Holdings, Inc. Amended and Restated 2015 Equity Incentive Plan Under the J. Alexander’s Holdings, Inc. Amended and Restated 2015 Equity Incentive Plan (the “Plan”), directors, officers and key employees of the Company may be granted equity incentive awards, such as stock options, restricted stock and stock appreciation rights in an effort to retain qualified management and personnel. The Company’s Board approved the amended and restated plan in May 2019, and it was subsequently approved by shareholders of the Company in June 2019 at the annual meeting of shareholders. The amended and restated plan authorizes a maximum of 2,850,000 shares of the Company’s common stock to be issued to holders of these equity awards. At January 3, 2021, December 29, 2019 and December 30, 2018, total shares available to be granted pursuant to the Plan (or the predecessor plan) were 351,750; 721,250; and 4,250, respectively. Stock Option Awards Under the Plan and the predecessor plan, the Compensation Committee and the Board of the Company have awarded stock option grants totaling 1,776,750 options, with 246,000 awarded in fiscal 2020, to certain members of management, and the contractual term for each grant is seven years. The requisite service period for each grant is four years with each vesting in four equal installments on the first four anniversaries of their respective grant dates . A total of 37,500 options have been forfeited since the inception of the plan, 2,500 of which occurred in fiscal year 2020. No stock options were granted in fiscal 2019. The Company uses the Black-Scholes-Merton option pricing model to estimate the fair value of stock option awards and used the following assumptions for the indicated periods during which grants were made as noted above: Year Ended Year Ended January 3, 2021 December 30, 2018 Dividend yield 0.00 % 0.00 % Volatility factor 50.00 % 37.00 % Risk-free interest rate 0.22 % 2.69 % Expected life of options (in years) 4.75 4.75 Weighted-average grant date fair value $ 1.69 $ 3.42 The expected life of stock options granted during the period presented was calculated in accordance with the simplified method described in SEC Staff Accounting Bulletin (“SAB”) Topic 14.D.2 in accordance with SAB 110. This approach was utilized due to the lack of exercise history and the anticipated behavior of the overall group of grantees. The risk-free rate for periods within the contractual life of the options is based on the five-year A summary of stock options under the Company’s equity incentive plan is as follows: Number of Shares Weighted Average Exercise Price Outstanding at December 29, 2019 1,495,750 $ 9.57 Issued 246,000 5.00 Exercised - - Forfeited (2,500 ) 8.90 Outstanding at January 3, 2021 1,739,250 $ 8.92 At January 3, 2021, December 29, 2019 and December 30, 2018, stock options exercisable were 1,238,250; 976,063; and 602,125, respectively. As these awards contain only service conditions for vesting purposes and have a graded vesting schedule, the Company has elected to recognize the expense over the requisite service period for the entire award. Stock option expense totaling $803, $1,105 and $1,121 was recognized for fiscal years 2020, 2019 and 2018, respectively, which is included in the “General and administrative expenses” line item on the Consolidated Statements of Operations and Comprehensive (Loss) Income. At January 3, 2021, the Company had $867 of unrecognized compensation cost related to these stock options which is expected to be recognized over a period of approximately 3.59 years. The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options. This amount changes based on the fair market value of the Company’s common stock and totaled $563, $379 and $0 at January 3, 2021, December 29, 2019 and December 30, 2018, respectively, for options outstanding. The intrinsic value of options exercisable at January 3, 2021, December 29, 2019 and December 30, 2018 totaled $0, $277 and $0, respectively. No options were exercised in fiscal years 2020, 2019 or 2018. The following table summarizes the Company’s non-vested stock option activity for the year ended January 3, 2021: Weighted Average Number of Grant Date Shares Fair Value Non-vested stock options at December 29, 2019 519,687 $ 3.26 Granted 246,000 1.69 Vested (264,063 ) 3.11 Forfeited (625 ) 2.81 Non-vested stock options at January 3, 2021 500,999 $ 2.57 The total fair value of stock options vested during fiscal years 2020, 2019 and 2018 was $820, $1,187 and $751, respectively. The following table summarizes information about the Company’s stock options outstanding at January 3, 2021: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at January 3, 2021 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at January 3, 2021 Weighted Average Remaining Contractual Life Weighted Average Exercise Price $5.00 246,000 6.59 years $ 5.00 - - $ - $8.90 532,500 2.84 years 8.90 532,500 2.84 years 8.90 $9.55 510,000 4.13 years 9.55 255,000 4.13 years 9.55 $10.24 13,750 2.32 years 10.24 13,750 2.32 years 10.24 $10.39 437,000 1.77 years 10.39 437,000 1.77 years 10.39 $5.00 - $10.39 1,739,250 3.48 years $ 8.92 1,238,250 2.72 years $ 9.57 Restricted and Performance Shares In fiscal 2020 and 2019, the Company granted 63,000 and 264,000 restricted share awards, respectively, under the Plan to members of its Board in 2020, and, in 2019, to members of the Board and certain employees of the Company. Also, in fiscal 2019, 52,500 performance share awards were granted to certain employees of the Company under the Plan. Restricted share awards are subject to only a service condition while performance share awards are regarded as contingently issuable common shares which are dependent upon achievement of certain performance targets by the Company. With respect to the restricted share awards, the restricted period for the 2019 grant is four years with the restriction expiring in four equal installments on the first four anniversaries of their respective grant dates. For the 2020 restricted share award grant, the vesting period is one year from the date of the grant. For the performance share awards, the performance period shall be any four consecutive fiscal quarters during the sixteen-quarter period beginning with the fiscal quarter in which the awards were granted. The performance target must be met for the performance period in order for the restriction to lapse. The following table summarizes the Company’s non-vested restricted and performance share activity for the year ended January 3, 2021: Restricted Shares Performance Shares Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Non-vested restricted shares at December 29, 2019 264,000 $ 10.75 52,500 $ 10.75 Granted 63,000 4.43 - - Vested (65,997 ) 10.75 - - Forfeited - - - - Non-vested restricted shares at January 3, 2021 261,003 $ 9.22 52,500 $ 10.75 Expense associated with the restricted shares is recognized using the straight-line method over the requisite service period, accounting for forfeitures as they occur. Expense associated with the performance share awards is recognized using the tranche method wherein the Company treats each vesting tranche as a separate award with compensation cost for each award recognized over its vesting period. The Company anticipates that the performance condition will be met during the performance period. The grant date fair value for the fiscal year and 2019 awards was $4.43 and $10.75, respectively, based on the Company’s quoted stock price on the date of grant. 2.7 years Management Profits Interest Plan On January 1, 2015, J. Alexander’s Holdings, LLC adopted its 2015 Management Incentive Plan and granted equity incentive awards to certain members of its management in the form of Class B Units. The Class B Units are profits interests in J. Alexander’s Holdings, LLC. Class B Units in the amount of 1,770,000 were reserved for issuance under the plan and a total of 885,000 Class B Units were granted on January 1, 2015. Each Class B Unit represents a non-voting equity interest in J. Alexander’s Holdings, LLC that entitles the holder to a percentage of the profits and appreciation in the equity value of J. Alexander’s Holdings, LLC arising after the date of grant and after such time as an applicable hurdle amount is met. The hurdle amount for the Class B Units issued to our management in January 2015 was set at $180,000, which at such time was a reasonable premium to the estimated liquidation value of the equity of J. Alexander’s Holdings, LLC. The Class B Units issued to management vested with respect to 50% of the grant units on the second anniversary of the date of grant and with respect to the remaining 50% on the third anniversary of the date of grant and required a six-month Vested Class B Units may be exchanged for, at the Company’s option, either (i) cash in an amount equal to the amount that would be distributed to the holder of those Class B Units by J. Alexander’s Holdings, LLC upon a liquidation of J. Alexander’s Holdings, LLC assuming the aggregate amount to be distributed to all members of J. Alexander’s Holdings, LLC were equal to the Company’s market capitalization on the date of exchange (net of any assets and liabilities of the Company that are not assets or liabilities of J. Alexander’s Holdings, LLC) or (ii) shares of the Company’s common stock with a fair market value equal to the cash payment under (i) above. The Class B Units issued to the Company’s management have been classified as equity awards and share-based compensation expense is based on the grant date fair value of the awards. At January 3, 2021, the applicable hurdle rate for these Class B Units was not met. The Company used the Black-Scholes-Merton pricing model to estimate the fair value of management profits interest awards and used the following assumptions: Grant Date Fair Value Member equity price per unit $ 10.00 Class B hurdle price $ 11.30 Dividend yield 0 % Volatility factor 35 % Risk-free interest rate 1.24 % Time to liquidity (in years) 3.5 Lack of marketability discount 23 % Grant date fair value $ 1.76 The member equity price per unit was based on an enterprise valuation of J. Alexander’s Holdings, LLC divided by the number of Class A Units outstanding at the date of grant. The Class B hurdle price is based on the hurdle rate divided by the number of Class A Units outstanding at the time of grant. The expected life of management profits interest awards granted during the period presented was determined based on the vesting term of the award which also includes a six-month holding period subsequent to meeting the requisite vesting period. The risk-free rate for periods within the contractual life of the profit interest award is based on an extrapolated four-year U.S. Treasury bond rate in effect at the time of grant given the expected time to liquidity. The Company utilized a weighted rate for expected volatility based on a representative peer group of comparable public companies. The dividend yield was set at zero as the underlying security does not pay a dividend. The protective put method was used to estimate the discount for lack of marketability inherent to the awards due to the lack of liquidity associated with the post-vesting requirement and other restrictions on the Class B Units. As a result of the reorganization transactions on September 28, 2015 and as evidenced in the executed Second Amended and Restated LLC Agreement of J. Alexander’s Holdings, LLC, entered into in connection with the reorganization transactions, the members’ equity of J. Alexander’s Holdings, LLC was recapitalized such that the total outstanding Class B Units granted to management as discussed above was reduced on a pro rata basis from 885,000 to 833,346 which is also the number of Class B Units outstanding as of January 3, 2021, and resulted in an adjusted grant date fair value relative to these units of $1.87. As these awards contain only service conditions for vesting purposes and have a graded vesting schedule, the Company elected to recognize the expense over the requisite service period for the entire award and, as of January 3, 2021, the Company had $0 of unrecognized compensation cost related to these awards as the units fully vested on January 1, 2018. The total grant date fair value of units vested during fiscal years 2020, 2019 and 2018 was $0, $0 and $779, respectively. There was no redemption value of the outstanding management profits interest awards as of January 3, 2021 as the fair value was less than the hurdle rate. Black Knight Advisory Services Profits Interest Plan On October 6, 2015, J. Alexander’s Holdings, LLC granted 1,500,024 Class B Units representing profits interests to Black Knight with a hurdle rate stated in the agreement of $151,052. The awards vested at a rate of one-third of the Class B Units on each of the first, second and third anniversaries of the grant date and required a six-month These awards constituted nonemployee awards. Therefore, the Company remeasured the fair value of the awards at each reporting date through October 6, 2018 using the valuation model applied in previous periods. The portion of services rendered to each reporting date was applied to the current measure of fair value to determine the expense for the relevant period. Because these awards had a graded vesting schedule, the Company elected to recognize the compensation cost on a straight-line basis over the three-year On November 30, 2018, the Company entered into the Termination Agreement which terminated the consulting agreement with Black Knight (the “Management Consulting Agreement”). Under the terms of the Management Consulting Agreement, Black Knight had 90 days from November 30, 2018 to exercise its right to convert the value of the fully-vested Class B Units above the applicable hurdle rate to the Company’s common stock. As Black Knight did not exercise its conversion rights within the 90-day period, the Class B Units were cancelled and forfeited for no consideration in fiscal year 2019. |
Other Employee Benefits
Other Employee Benefits | 12 Months Ended |
Jan. 03, 2021 | |
Other Employee Benefits Disclosure [Abstract] | |
Other Employee Benefits | Note 16 – A subsidiary of the Company maintains a Savings Incentive and Salary Deferral Plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for the benefit of its employees and their beneficiaries. Under the 401(k) Plan, qualifying employees can defer a portion of their income on a pretax basis through contributions to the 401(k) Plan, subject to an annual statutory limit. All employees with at least six months of service and who are at least 21 years of age are eligible to participate. For each dollar of participant contributions, up to 3% of each participant’s salary and bonus, the Company makes a minimum 25% matching contribution to the 401(k) Plan with a discretionary match allowable in addition and subject to the approval of the compensation committee of the Board on an annual basis. Such discretionary match was set at an additional 25% of the first 3% of each participant’s salary and bonus contributions for fiscal year 2020. Matching contributions vest according to a vesting schedule defined in the plan document. A subsidiary of the Company also has a nonqualified deferred compensation plan under which executive officers and certain senior managers may defer receipt of their compensation, including up to 50% of applicable salaries and bonuses, and may be credited with matching contributions subject to the annual approval by the compensation committee of the Board. Such discretionary match was set at 25% of the first 3% of each participant’s salary and bonus contributions for fiscal year 2020. Amounts that are deferred under this plan, and any matching contributions, are increased by earnings and decreased by losses based on the performance of one or more investment measurement funds elected by the participants from a group of funds, which the plan administrator has determined to make available for this purpose. Participant account balances totaled $1,405 and $1,050 at January 3, 2021 and December 29, 2019, respectively. Although this plan is not required to be funded, the Company makes investments in trading securities which are equivalent funds to those selected by participants, and the balance of those investments at January 3, 2021 and December 29, 2019 was $1,222 and $833, respectively. Expense for matching contributions associated with the 401(k) Plan and the nonqualified deferred compensation plan totaled $253, $119 and $122 for fiscal years 2020, 2019 and 2018, respectively. A subsidiary of the Company has Salary Continuation Agreements, which provide retirement and death benefits to certain executive officers and certain other members of management. The recorded liability associated with these agreements totaled $6,568 and $6,053 at January 3, 2021 and December 29, 2019, respectively. The expense (income) recognized under these agreements was $627, $702 and $(206) for fiscal years 2020, 2019 and 2018, respectively. J. Alexander’s, LLC is obligated to establish and fund the Trust (as defined in Note 2 above) under the Amended and Restated Salary Continuation Agreements with each of the agreement holders, which includes three of the Company’s executive officers and one former executive officer. These assets are classified as noncurrent within the Company’s Consolidated Financial Statements. J. Alexander’s, LLC made additional contributions of $75 and $95 to the Trust in fiscal years 2019 and 2018, respectively, and will continue to make additional contributions to the Trust in the future in order to maintain the level of funding required by the agreements. The Trust is subject to creditor claims in the event of insolvency, but the assets held in the Trust are not available for general corporate purposes. The Trust investments consisted of cash and cash equivalents, U.S. government agency obligations and corporate bonds. The securities are designated as trading securities and carried at fair value. Refer to Note 4 – Fair Value Measurements for additional discussion regarding fair value considerations. As of January 3, 2021, the Trust balance was $4,927 consisting of $2,329 in aggregate cash surrender value of whole life insurance policies and $2,598 in Trust investments. The Company records changes in the fair value of assets held in the Trust in the “Other, net” line item on the Consolidated Statements of Operations and Comprehensive (Loss) Income. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 03, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 17 – Stockholders’ Equity The Company is an independent public company, and its common stock is listed under the symbol “JAX” on The NYSE. The Company also owns, directly or indirectly, all of the outstanding Class A Units and is the sole managing member of J. Alexander’s Holdings, LLC. The Company is authorized to issue 40,000,000 shares of capital stock, consisting of 30,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share. As of January 3, 2021 and December 29, 2019 , a total of 15,070,077 and 15,011,676 shares , respectively, of the Company’s common stock were outstanding. No shares of preferred stock were outstanding during either of the periods presented. The pertinent rights and privileges of the Company’s outstanding common stock or restricted and performance share awards are as follows: Voting rights. The holders of common stock as well as restricted and performance share awards are entitled to one vote per share on all matters to be voted upon by the shareholders. Dividend rights. Subject to preferences that may be applicable to any outstanding preferred stock, the holders of shares of common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the Board out of funds legally available therefor. Holders of restricted and performance share awards are entitled to dividend rights once such shares have vested. Prior to vesting, dividends may be accumulated for eventual payment once relevant restrictions have expired or performance targets are met by the Company, as applicable. Rights upon liquidation. In the event of any voluntary or involuntary liquidation, dissolution or winding up of affairs, the holders of common stock are entitled to share ratably in all assets remaining after payment of debts and other liabilities, subject to prior distribution rights of preferred stock then outstanding, if any. Such rights are conferred upon holders of restricted or performance share awards upon vesting. Other rights. The holders of common stock as well as restricted and performance share awards have no preemptive or conversion rights or other subscription rights. Further, there are no redemption or sinking fund provisions applicable to the common stock or the aforementioned awards. The rights, preferences and privileges of holders of common stock and vested restricted and performance share awards will be subject to those of the holders of any shares of preferred stock the Company may issue in the future. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 03, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18 - Commitments and Contingencies (a) Contingent Leases As a result of the disposition of the Company’s predecessor’s Wendy’s operations in 1996, subsidiaries of the Company may remain secondarily liable for certain real property leases with remaining terms of one to five years. The total estimated amount of lease payments remaining on these four leases at January 3, 2021 was approximately $987. In connection with the sale of the Company’s predecessor’s Mrs. Winner’s Chicken & Biscuit restaurant operations in 1989 and certain previous dispositions, subsidiaries of the Company also may remain secondarily liable for a (b) Tax Contingencies The Company is subject to real property, personal property, business, franchise and income, payroll and sales and use taxes in various jurisdictions within the United States and is regularly under audit by tax authorities. This is believed to be common for the restaurant industry. Management believes the ultimate disposition of these matters will not have a material adverse effect on the consolidated financial position or results of operations for the Company. (c) Litigation Contingencies The Company and its subsidiaries are defendants from time to time in various claims or legal proceedings arising in the ordinary course of business, including claims relating to workers’ compensation matters, labor-related claims, discrimination and similar matters, claims resulting from guest accidents while visiting a restaurant, claims relating to lease and contractual obligations, federal and state tax matters, and claims from guests or employees alleging illness, injury or other food quality, health or operational concerns, and injury or wrongful death under “dram shop” laws that allow a person to sue the Company based on any injury caused by an intoxicated person who was wrongfully served alcoholic beverages at one of its restaurants. Management does not believe that any of the legal proceedings pending against it as of the date of this report will have a material adverse effect on its liquidity, results of operations or financial condition. The Company may incur liabilities, receive benefits, settle disputes, sustain judgments, or accrue expenses relating to legal proceedings in a particular fiscal year, which may adversely affect its results of operations, or on occasion, receive settlements that favorably affect its results of operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 03, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 19 – Related-Party Transactions On September 28, 2015, J. Alexander’s Holdings, LLC entered into the Management Consulting Agreement with Black Knight, pursuant to which Black Knight provided corporate and strategic advisory services to J. Alexander’s Holdings, LLC. On November 30, 2018, the Company terminated the Management Consulting Agreement by entering into the Termination Agreement. The details pertaining to the termination of this agreement are discussed below. Under the Management Consulting Agreement, J. Alexander’s Holdings, LLC issued Black Knight non-voting Class B Units and was required to pay Black Knight an annual fee equal to 3% of the Company’s Adjusted EBITDA for each fiscal year during the term of the Management Consulting Agreement. J. Alexander’s Holdings, LLC also reimbursed Black Knight for its direct out-of-pocket costs incurred for management services provided to J. Alexander’s Holdings, LLC. Under the Management Consulting Agreement, “Adjusted EBITDA” meant the Company’s net income (loss) before interest expense, income tax (expense) benefit, depreciation and amortization, and adding asset impairment charges and restaurant closing costs, loss on disposals of fixed assets, transaction and integration costs, non-cash compensation, loss from discontinued operations, gain on debt extinguishment, pre-opening costs and certain unusual items. As a result of the Termination Agreement, in the first quarter of 2019, the Company paid approximately $705 to Black Knight which represented the pro-rata portion of its consulting fees earned during 2018 through the Termination Date. Additionally, the early termination of the Management Consulting Agreement required the cash payment of $4,560 to Black Knight as a termination fee which the Company paid on January 31, 2019 using cash on hand. During fiscal years 2018, management fees and reimbursable out-of-pocket costs of $703 were incurred relative to the Black Knight Management Consulting Agreement. Such costs are presented as a component of “General and administrative expenses” on the Consolidated Statements of Operations and Comprehensive (Loss) Income. The Class B Units granted to Black Knight vested in equal installments on the first, second, and third anniversaries of the October 6, 2015 grant date and were measured at fair value at each reporting date through the date of vesting. Under the terms of the Termination Agreement, Black Knight had 90 days from November 30, 2018 to exchange its Class B Units to exercise its right to convert the value of such units above the applicable hurdle rate to the Company’s common stock. Since Black Knight did not exercise its conversion rights within the 90-day period, the Class B Units were cancelled and forfeited for no consideration on February 28, 2019. |
Non-controlling Interest
Non-controlling Interest | 12 Months Ended |
Jan. 03, 2021 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interest | Note 20 – Non-controlling Interest As discussed in Note 1 5 , on January 1, 2015, J. Alexand er’s Holdings, LLC adopted the 2015 Management Incentive Plan and granted equity incentive awards to certain members of management in the form of Class B Units. The Class B Units are profits interests in J. Alexander’s Holdings, LLC. Additionally, on October 6, 2015, J. Alexander’s Holdings, LLC granted Class B Units representing profits interests to Black Knight. However, on February 28, 2019, in conjunction with the Termination Agreement with Black Knight, the 1,500,024 Class B Units held by Black Knight were cancelled and forfeited for no consideration. The Class B Units allow for the distribution of earnings in J. Alexander’s Holdings, LLC in the event that the hurdle amounts and vesting requirements are met and, as such, represent non-controlling interests in J. Alexander’s Holdings, LLC during the periods that they remain outstanding . The Hypothetical Liquidation of Book Value method was used as of January 3, 2021 , December 29, 2019 and December 30, 2018 to determine allocations of non-controlling interests consistent with the terms of the Second Amended a nd Restated LLC Agreement of J. Alexander’s Holdings, LLC, and pursuant to that calculation, no allocation of net (loss) income was made to non-controlling interests for fiscal years 2020 , 2019 or 2018 , respectively. A non-controlling interest balance has been presented on the Consolidated Balance Sheets and Statements of Stockholders’ Equity in the amount of $ 1,558 as of each January 3, 2021 and December 29, 2019 , respectively, which represents profits interest compensation expense recorded by the Company. The share-based compensation expense associated with the Class B units granted to Black Knight w ere reclassified to additional paid-in capital in fiscal year 2019 as a result of their forfeiture and cancellation . As such, non-controlling interests consist solely of the non-cash compensation expense relative to the Class B Units held by management as of January 3, 2021 and December 29, 2019 . Such compensation costs have been reflected in the “General and administrative expenses” line item of the Consolidated Statements of Operations and Comprehensive (Loss) Income for fiscal year 201 8 . No such compensation expense was recognized in 2020 or 2019 as the Class B Units held by management vested in fiscal year 2018. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Jan. 03, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note 21 – Quarterly Results of Operations (Unaudited) The following is a summary of the quarterly results of operations for the years ended January 3, 2021 and December 29, 2019 (in thousands, except per share amounts): 2020 Quarter ended March 29, June 28, September 27, January 3, Net sales $ 56,972 $ 27,602 $ 46,230 $ 52,569 Operating (loss) income (18,855 ) (11,298 ) (1,384 ) 1,484 (Loss) income from continuing operations before income taxes (18,979 ) (11,352 ) (1,643 ) 1,257 Net (loss) income (17,644 ) (6,988 ) (1,760 ) 3,921 Basic (loss) earnings per share (Loss) i net of tax $ (1.20 ) $ (0.47 ) $ (0.12 ) $ 0.27 Loss from discontinued operations, net (0.00 ) (0.00 ) (0.00 ) (0.00 ) Basic (loss) earnings per share $ (1.20 ) $ (0.48 ) $ (0.12 ) $ 0.27 Diluted (loss) earnings per share (Loss) income from continuing operations, net of tax $ (1.20 ) $ (0.47 ) $ (0.12 ) $ 0.27 Loss from discontinued operations, net (0.00 ) (0.00 ) (0.00 ) (0.00 ) Diluted (loss) earnings per share $ (1.20 ) $ (0.48 ) $ (0.12 ) $ 0.27 2019 Quarter ended March 31, June 30, September 29, December 29, Net sales $ 64,734 $ 62,229 $ 56,867 $ 63,439 Operating income 4,266 2,343 422 1,883 Income from continuing operations before income taxes 4,146 2,244 342 1,753 Net income 3,848 2,168 771 2,030 Basic earnings per share Income from continuing operations, net of tax $ 0.27 $ 0.15 $ 0.06 $ 0.14 Loss from discontinued operations, net (0.00 ) (0.00 ) (0.00 ) (0.00 ) Basic earnings per share $ 0.26 $ 0.15 $ 0.05 $ 0.14 Diluted earnings per share Income from continuing operations, net of tax $ 0.27 $ 0.15 $ 0.06 $ 0.14 Loss from discontinued operations, net (0.00 ) (0.00 ) (0.00 ) (0.00 ) Diluted earnings per share $ 0.26 $ 0.15 $ 0.05 $ 0.14 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 03, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | a) Principles of Consolidation and Basis of Presentation The Consolidated Financial Statements are prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) and include the accounts of the Company as well as the accounts of its majority-owned subsidiaries. All intercompany profits, transactions, and balances between the Company and its subsidiaries have been eliminated. It is the Company’s policy to reclassify prior year amounts to conform to the current year’s presentation for comparative purposes, if such a reclassification is warranted. The Company is a holding company with no direct operations. It holds as its sole asset an equity interest in J. Alexander’s Holdings, LLC, and relies on J. Alexander’s Holdings, LLC to provide it with funds necessary to meet any financial obligations. |
Fiscal Year | b) Fiscal Year The Company utilizes a 52- or 53-week accounting period which ends on the Sunday closest to December 31, and each quarter typically consists of 13 weeks. Fiscal year 2020 included 53 weeks of operations with the fiscal fourth quarter including 14 weeks. Fiscal years 2019 and 2018 each included 52 weeks of operations. |
Discontinued Operations and Restaurant Closures | c) Discontinued Operations and Restaurant Closures The Company remains party to a lease agreement for a location that was closed in 2013 and is accounted for as a discontinued operation. The $203, $236 and $459 losses from discontinued operations in fiscal years 2020, 2019 and 2018, respectively, consist solely of exit and disposal costs for this location. |
Cash and Cash Equivalents | d) Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less when purchased. Cash also consists of payments due from third‑party credit card issuers for purchases made by guests using the issuers’ credit cards. The issuers typically remit payment within three to four days of a credit card transaction. |
Accounts and Other Receivables | e) Accounts and Other Receivables Accounts receivable are primarily related to amounts due from various taxing jurisdictions, third-party online gift card sellers and expected workers’ compensation rebates and vendor rebates which have been earned but not yet received. Additionally, as discussed in Note 1 – “Organization and Business” above, the Company recorded a receivable in fiscal 2020 related to the ERC provided by the CARES Act. The Company also recorded taxes receivable which are reflected in this balance and discussed in Note 14 – Income Taxes. Due to the nature of the entities involved, the nature of the receivables and its past history with such receivables, the Company believes that an additional allowance against these recorded amounts is not warranted. |
Inventories | f) Inventories Inventories are stated at the lower of cost or net realizable value, with cost being determined using an average cost method . At the beginning of fiscal 2020, the Company implemented a new inventory management system. In connection with this implementation, the Company changed its method of accounting for inventory from the lower of cost (first-in, first-out) or net realizable value method utilized by its legacy system to the lower of cost or net realizable value method, with cost being determined using an average cost method, effective December 30, 2019 (the first day of the current fiscal year). The Company believes this change in accounting principle is preferable, as it will result in greater precision in the costing of inventories. In addition, the average cost method better aligns with the functionality of the new inventory management system. The Company determined that the effects of adopting the average cost method were not material to its Consolidated Financial Statements. Prior to the conversion to the new inventory management system, the Company was not able to determine the impact of the change to the average cost method. Therefore, it did not retroactively apply the change to periods prior to fiscal year 2020. |
Property and Equipment, Net | g) Property and Equipment, Net The Company states property and equipment at cost less accumulated depreciation and amortization. Depreciation and amortization expense is calculated using the straight‑line method. The useful lives of assets are typically 30-40 years for buildings and land improvements and two-10 years for furniture, fixtures, and equipment. Leasehold improvements are amortized over the lesser of the useful life or the remaining lease term, generally inclusive of renewal periods. Gains or losses are recognized upon the disposal of property and equipment, and the asset and related accumulated depreciation and amortization are removed from the accounts. Maintenance, repairs and betterments that do not enhance the value of or increase the life of the assets are expensed as incurred. The Company capitalizes all direct external costs associated with obtaining the land, building, and equipment for each new restaurant, as well as construction period interest. All direct external costs associated with obtaining the dining room and kitchen equipment, signage, and other assets and equipment are also capitalized. Certain direct and indirect costs are capitalized as building and leasehold improvement costs in conjunction with capital improvement projects at existing restaurants and acquiring and developing new restaurant sites. Such costs are amortized over the life of the related assets. |
Goodwill and Other Intangible Assets | h) Goodwill and Other Intangible Assets Goodwill recorded as of December 29, 2019 represented the excess of cost over fair value of net assets acquired in a previous acquisition of the Company’s predecessor in 2012. Intangible assets include trade names, deferred loan costs, purchased trademarks and liquor licenses at certain restaurants. Goodwill, trade names, trademarks and liquor licenses are not subject to amortization, but are tested for impairment annually as of the fiscal year ‑end date, or more frequently, if events or changes in circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount of the goodwill or indefinite ‑lived intangible asset exceeds its fair value. In light of the decline in the market price of the Company’s common stock, the impact of mandated dining room closures on financial results, the expected reduction in economic activity in the near term, and the general economic and market volatility, the Company determined that these factors constituted an interim triggering event as of the end of each of the Company’s quarters in fiscal 2020, and performed impairment analyses with regard to its indefinite-lived intangible assets, property and equipment (including its right-of-use assets for operating leases and goodwill. As a result, the Company recorded asset impairment charges totaling $16,426 in fiscal year 2020 The Company early adopted Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The Company also performed a review of impairment for its other intangible assets at the end of each quarter in 2020, and it was determined that no impairment of these intangible assets existed in fiscal 2020. The same conclusion was reached as of December 29, 2019 and December 30, 2018 during the annual review for impairment in each of these years and, accordingly, no impairment losses were recorded. Deferred loan costs are subject to amortization and are classified in the “Long-term debt, net of portion classified as current and deferred loan costs” line item on the Consolidated Balance Sheets. Deferred loan costs are amortized over the life of the related debt. |
Impairment of Long-Lived Assets | i) Impairment of Long‑Lived Assets In accordance with Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment The Company recorded a long-lived asset impairment charge of $689 to state the assets at its Lyndhurst Grill location in Cleveland, Ohio, at their fair value as of the end of the first quarter, which is presented as “Long-lived asset impairment charges and restaurant closing costs” on the Consolidated Statements of Operations and Comprehensive (Loss) Income. During the second quarter of 2020, the Company made the decision to permanently close this location after a review of its projected and historical financial performance. This location was also required to be temporarily closed in mid‑March 2020 due to COVID‑19-related traffic limitations unique to that specific restaurant which further impacted operating results. The Company assessed its other restaurant locations for indicators of impairment at the end of each quarter in fiscal year 2020 and assessed recoverability of certain fixed assets as warranted. No additional impairment was identified during the year ended January 3, 2021. No impairment charges were recorded for the years ended December 29, 2019 and December 30, 2018. |
Lease Accounting | j) Lease Accounting The Company through its subsidiaries has land only, building only, and land and building leases for a number of its restaurants and its corporate office that are recorded as operating leases. The Company determines if an arrangement meets the definition of a lease at inception, at which time it also performs an analysis to determine whether the lease qualifies as operating or financing. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease current and long-term liabilities on the Company’s Consolidated Balance Sheets. Lease expense for operating leases is generally recognized on a straight-line basis over the lease term and is included in other operating expenses (for restaurant properties) or general and administrative expense (for corporate office space) on the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company presents both the change in ROU assets and lease liabilities as a single line item in the Company’s Consolidated Statement of Cash Flows as the change in “Lease right-of-use assets and liabilities.” The Company does not currently have any arrangements that are classified as financing leases. Most of the Company’s leases have rent escalation clauses and some have rent holiday and contingent rent provisions. Terms for these leases are generally for 15 to 20 years and, in many cases, the leases provide for one or more five‑year Certain of the Company’s leases include both lease (i.e. fixed payments including rent) and non-lease components (e.g., common-area maintenance, marketing, and other miscellaneous fixed costs) which are accounted for as a single lease component as the Company has elected the practical expedient to combine lease and non-lease components for real estate leases. The Company is also a party to leases which have a non-cancelable lease term of less than one year with no option to purchase the underlying asset and, therefore, it has elected to exclude these short-term leases from its ROU assets and lease liabilities. For our existing operating leases that commenced prior to the adoption of ASC Topic 842, Leases In April 2020, the staff of the FASB issued a question-and-answer document that stated that entities may elect to account for lease concessions related to the effects of the COVID-19 pandemic as though the rights and obligations for those concessions existed as of the commencement of the contract rather than as a lease modification. Lessees may make the election for any lessor-provided lease concession related to the impact of the COVID-19 pandemic as long as the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. The Company has made such elections. |
Revenue Recognition | k) Revenue Recognition Restaurant sales are recognized at a point in time when food and service are provided to guests at one of the Company’s restaurants. Taxes assessed by a governmental authority that are imposed on the Company’s sales of its food and service and collected by the Company from the guest for remittance to such authorities, are excluded from net sales. Further, the Company excludes any discounts, such as management meals and employee meals, associated with each sale. Unearned revenue, as separately stated on the Company’s Consolidated Balance Sheets, represents the contract liability for gift cards, which have been sold but not redeemed. Upon redemption, when the guest presents a gift card as a form of payment for food and service provided at the restaurant, net sales are recorded and the contract liability is redu ced by the amount of card value redeemed. The Company considers its performance obligations associated with gift cards sold to guests to be met when food and service have been provided to its guests, and a gift card is presented as a form of payment. The amount of gift card revenue that was previously deferred is recognized based on the selling price of the menu items at each restaurant. Prior to the adoption of ASC Topic 606, Revenue from Contracts with Customers Breakage of $422, $443 and $378 related to gift cards was recorded in fiscal years 2020, 2019 and 2018, respectively. The Company’s net sales and net income have historically been subject to seasonal fluctuations. Net sales and operating income typically reach their highest levels during the fourth quarter of the fiscal year due to holiday business and the first quarter of the fiscal year due in part to the redemption of gift cards sold during the holiday season. The contract liability relative to gift cards and the recognition of revenue associated with such form of payment is impacted accordingly. The Company’s unearned revenue balance has historically decreased throughout the course of the fiscal year until the fourth quarter when an increase in the balance is typically experienced given the seasonality of gift card sales. |
Vendor Rebates | l) Vendor Rebates Vendor rebates are received from various nonalcoholic beverage suppliers and suppliers of food products and supplies. Rebates are recognized as a reduction to cost of sales in the period in which they are earned. |
Advertising Costs | m) Advertising Costs Costs of advertising are charged to expense at the time the costs are incurred. Advertising expense totaled $160, $156 and $154 during fiscal years 2020, 2019 and 2018, respectively. |
Transaction, Contested Proxy and Other Related Expenses | n) Transaction, Contested Proxy and Other Related Expenses In fiscal year 2018, the Company incurred transaction expenses totaling $5,648, a portion of which related to a terminated merger agreement with Ninety Nine Restaurant and Pub concept disclosed in previous annual reports. Additionally, the Company incurred transaction costs associated with the termination agreement (the “Termination Agreement”) between J. Alexander’s Holdings, LLC and Black Knight Advisory Services, LLC (“Black Knight”) effective November 30, 2018 which resulted in the termination of the management consulting agreement. Pursuant to the Termination Agreement, the termination payment of $4,560, along with other legal and professional fees, is included in transaction expenses for fiscal year 2018. For fiscal year 2019, transaction, contested proxy and other related expenses totaled $1,178 and included legal, proxy solicitor, and other professional and consulting fees along with printing and postage costs and other miscellaneous costs associated with both soliciting shareholder proxies for the Company’s 2019 annual meeting of shareholders and the ongoing evaluation of strategic alternatives. Transaction costs totaled $645 for fiscal year 2020 and included legal, other professional and consulting fees related to the ongoing evaluation of strategic alternatives. During the first quarter of 2020, the Company announced that given the uncertainties in the business community, the restaurant industry and the financial markets as a result of the COVID-19 pandemic, the ongoing review of strategic alternatives by the Company’s Board of Directors (the “Board”) was not expected to be completed until the uncertainties are resolved. |
Income Taxes | o) Income Taxes Income taxes are accounted for using the asset and liability method, whereby deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and for operating loss and tax credit carryforwards. The deferred taxes generated within the J. Alexander’s Holdings, LLC partnership are accounted for using the “outside basis” approach, and the deferred taxes outside of the partnership are accounted for using the “inside basis” approach. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized. The benefits of uncertain tax positions are recognized in the Consolidated Financial Statements only after determining a more likely than not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. When facts and circumstances change, these probabilities are reassessed and any appropriate changes are recorded in the Consolidated Financial Statements. Uncertain tax positions are accounted for by determining the minimum recognition threshold that a tax position is required to meet before being recognized in the Consolidated Financial Statements. This determination requires the use of judgment in assessing the timing and amounts of deductible and taxable items. Tax positions that meet the more likely than not recognition threshold are recognized and measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. Interest and penalties accrued related to unrecognized tax benefits or income tax settlements are recognized as components of income tax expense. |
Concentration of Credit Risk | p) Concentration of Credit Risk Financial instruments that are potentially exposed to a concentration of credit risk are cash and cash equivalents and accounts receivable. Operating cash balances are maintained in noninterest‑bearing transaction accounts, which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250. Further, a certain portion of the assets held in a rabbi trust established under a retirement benefit arrangement with certain of the Company’s current and former officers (the “Trust”) consists of cash and cash equivalents. The Company places cash with high‑credit‑quality financial institutions, and at times, such cash may be in excess of the federally insured limit. However, there have been no losses experienced related to these balances, and the credit risk is believed to be minimal. Also, the Company believes that its risk related to cash equivalents from third‑party credit card issuers for purchases made by guests using the issuers’ credit cards is not significant due to the number of banks involved and the fact that payment is typically received within three to four days of a credit card transaction. Therefore, the Company does not believe it has significant risk related to its cash and cash equivalents accounts. Another portion of the assets held in the Trust and the 409a Trust (each defined below) consist of U.S. Treasury bonds as well as a small number of corporate bonds with ratings no lower than BBB. The Company believes the credit risk associated with such bonds to be minimal given the historical stability of the U.S. government and the investment grade bond ratings relative to the corporate issuers. Concentrations of credit risk with respect to accounts receivable are related principally to receivables from governmental agencies related to refunds of franchise and income taxes and, in 2020, the ERC under the CARES Act. The Company does not believe it has significant risk related to accounts receivable due to the nature of the entities involved. |
Use of Estimates | q) Use of Estimates Management has made certain estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of net sales and expenses during the periods presented to prepare these Consolidated Financial Statements in conformity with GAAP. Significant items subject to such estimates and assumptions include those related to the accounting for gift card breakage, determination of uncertain tax positions and the valuation allowance relative to deferred tax assets, if any, estimates of useful lives of property and equipment and leasehold improvements, the carrying amount of intangible assets, fair market valuations, determination of lease terms, and accounting for impairment losses, contingencies, and litigation. Actual results could differ from these estimates. |
Sales Taxes | r) Sales Taxes As mentioned in Note 2 (k), revenues are presented net of sales taxes. The obligation for sales taxes is included in accrued expenses and other current liabilities until the taxes are remitted to the appropriate taxing authorities. |
Pre-opening Expense | s) Pre‑opening Expense Pre‑opening expenses are accounted for by expensing such costs as they are incurred. |
Comprehensive (Loss) Income | t) Comprehensive (Loss) Income Total comprehensive (loss) income consists solely of net income or net loss for all periods presented. Therefore, a separate statement of comprehensive (loss) income is not included in the accompanying Consolidated Financial Statements. |
Segment Reporting | u) Segment Reporting The Company through its subsidiaries owns and operates full‑service, upscale restaurants under various concepts exclusively in the United States that have similar economic characteristics, products and services, class of customer and distribution methods. The Company believes it meets the criteria for aggregating its operating segments into a single reportable segment. |
Non-controlling Interests | v) Non-controlling Interests Non-controlling interests on the Consolidated Balance Sheets represents the portion of the Company’s net assets attributable to the non-controlling J. Alexander’s Holdings, LLC Class B Unit holders. As of January 3, 2021 and December 29, 2019, the non-controlling interest presented on the Consolidated Balance Sheets is $1,558. On February 28, 2019, in conjunction with the Termination Agreement with Black Knight, the 1,500,024 Class B Units held by Black Knight were cancelled and forfeited for no consideration. Therefore, the share-based compensation expense associated with the Black Knight grant was reclassified to additional paid-in capital in fiscal year 2019, and as of January 3, 2021 and December 29, 2019, non-controlling interests consist solely of the non-cash compensation expense relative to the Class B Units held by management. The Hypothetical Liquidation of Book Value method was used as of January 3, 2021, December 29, 2019 and December 30, 2018 to determine allocations of non-controlling interests consistent with the terms of the Second Amended and Restated LLC Agreement of J. Alexander’s Holdings, LLC, and pursuant to that calculation, no allocation of net income was made to non-controlling interests for fiscal years 2020, 2019 or 2018, respectively. |
(Loss) Earnings per Share | w) (Loss) Earnings per Share Basic (loss) earnings per share of common stock is computed by dividing net (loss) income by the weighted average number of shares outstanding for the reporting period. Diluted (loss) earnings per share of common stock is computed similarly to basic (loss) earnings per share except the weighted average shares outstanding are increased to include potential shares outstanding resulting from share-based compensation awards and additional shares from the assumed exercise of any common stock equivalents, if dilutive. In periods of net loss, no potential common shares are included in the diluted shares outstanding as the effect is anti-dilutive. J. Alexander’s Holdings, LLC Class B Units are considered common stock equivalents for this purpose. The number of additional shares of common stock related to these common stock equivalents is calculated using the if-converted method, if dilutive. The number of additional shares of common stock related to stock option awards and unvested restricted share awards subject to only a service condition is calculated using the treasury stock method, if dilutive. Unvested restricted share awards that are subject to a performance condition are regarded as contingently issuable common shares and are included in the denominator of the diluted earnings per share calculation using the treasury stock method as of the beginning of the period in which the performance condition has been satisfied, if dilutive. Refer to Note 3 – (Loss) Earnings per Share for the basic and diluted (loss) earnings per share calculations and additional discussion. |
Share Repurchase Program | x) On November 1, 2018, the Company’s Board authorized a share repurchase program which replaced the previous share repurchase program that expired on October 29, 2018, and allows for the repurchase of shares up to an aggregate purchase price of $15,000 over the three-year The repurchase program does not obligate the Company to acquire any particular amount of stock. There was no common stock repurchase activity under the program during fiscal year 20 20 , 2019, or 2018 . |
Recently Issued Accounting Standards | y ) Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (the “FASB”) Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) (“ASU No. 2020-04”). This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU No. 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. An entity may elect to apply the amendments for contract modifications by the impacted ASC topic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued through December 31, 2022. Once elected for an ASC topic, the amendments in ASU No. 2020-04 must be applied prospectively for all eligible contract modifications for that ASC topic. The Company has not adopted and continues to assess the potential impact of ASU No. 2020-04 on its Consolidated Financial Statements and related disclosures. |
(Loss) Earnings per Share (Tabl
(Loss) Earnings per Share (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted (Loss) Earnings per Share | The following table sets forth the computation of basic and diluted (loss) earnings per share: Year Ended (Dollars and shares in thousands, except per share amounts) January 3, December 29, December 30, 2021 2019 2018 Numerator: (Loss) income from continuing operations, net of tax $ (22,268 ) $ 9,053 $ 4,458 Loss from discontinued operations, net (203 ) (236 ) (459 ) Net (loss) income $ (22,471 ) $ 8,817 $ 3,999 Denominator: Weighted average shares (denominator for basic (loss) earnings per share) 14,720 14,695 14,695 Effect of dilutive securities - 46 168 Adjusted weighted average shares and assumed conversions (denominator for diluted (loss) earnings per share) 14,720 14,741 14,863 Basic (loss) earnings per share: (Loss) income from continuing operations, net of tax $ (1.51 ) $ 0.62 $ 0.30 Loss from discontinued operations, net (0.01 ) (0.02 ) (0.03 ) Basic (loss) earnings per share $ (1.53 ) $ 0.60 $ 0.27 Diluted (loss) earnings per share: (Loss) income from continuing operations, net of tax $ (1.51 ) $ 0.61 $ 0.30 Loss from discontinued operations, net (0.01 ) (0.02 ) (0.03 ) Diluted (loss) earnings per share $ (1.53 ) $ 0.60 $ 0.27 Note: Per share amounts may not sum due to rounding. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated: January 3, 2021 Level 1 Level 2 Level 3 Cash and cash equivalents * $ 81 $ - $ - U.S. government obligations * 276 - - Corporate bonds * 2,241 - - Mutual and money market funds ** 1,222 - - Total $ 3,820 $ - $ - December 29, 2019 Level 1 Level 2 Level 3 Cash and cash equivalents * $ 71 $ - $ - U.S. government obligations * 300 - - Corporate bonds * 2,195 - - Mutual and money market funds ** 833 - - Total $ 3,399 $ - $ - * - As held in the Trust (as defined below). ** - As held in the 409a Trust (as defined below). |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: January 3, December 29, 2021 2019 Prepaid insurance $ 1,534 $ 1,422 Prepaid rent 227 1,081 Payroll taxes - 1,183 Other 344 473 Prepaid expenses and other current assets $ 2,105 $ 4,159 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following: January 3, December 29, 2021 2019 Cash, cash equivalents and securities held in the Trust $ 2,598 $ 2,566 Cash surrender value of life insurance 2,329 2,253 Investments in trading securities 1,222 833 Other 46 46 Other assets $ 6,195 $ 5,698 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, at cost, less accumulated depreciation and amortization, consisted of the following: January 3, December 29, 2021 2019 Land $ 19,167 $ 20,204 Buildings 31,564 32,785 Leasehold improvements 78,984 78,047 Restaurant and other equipment 42,026 41,504 Construction in progress 5,774 1,730 177,515 174,270 Less accumulated depreciation and amortization (75,327 ) (64,967 ) Property and equipment, net $ 102,188 $ 109,303 |
Goodwill and Indefinite Lived_2
Goodwill and Indefinite Lived Intangible Assets (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Indefinite Lived Intangible Assets | Goodwill and indefinite-lived intangible assets consisted of the following: January 3, December 29, 2021 2019 Tradename $ 25,069 $ 25,069 Goodwill - 15,737 Liquor licenses 579 579 Intangible assets $ 25,648 $ 41,385 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: January 3, December 29, 2021 2019 Taxes, other than income taxes $ 3,338 $ 4,447 Salaries, wages, vacation, and incentive compensation 2,433 3,009 Current portion of deferred employer FICA tax 1,796 - Transaction, contested proxy and other related expenses 67 412 Accrued audit and accounting fees 481 240 Other 1,307 1,281 Accrued expenses and other current liabilities $ 9,422 $ 9,389 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The balances of each of these notes as of January 3, 2021 and December 29, 2019 is set forth below: January 3, January 3, December 29, December 29, 2021 2021 2019 2019 Current Long-term Current Long-term Mortgage Loan $ 1,667 $ 2,083 $ 1,667 $ 2,917 Term Loan - - 1,389 - Development Line of Credit - 10,000 4,000 - Revolving Line of Credit - 1,000 - - Less: Net deferred loan costs - (337 ) - (72 ) Total debt $ 1,667 $ 12,746 $ 7,056 $ 2,845 |
Other Long Term Liabilities (Ta
Other Long Term Liabilities (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long‑term liabilities consisted of the following: January 3, December 29, 2021 2019 Noncurrent portion of deferred employer FICA tax $ 1,796 $ - Uncertain tax positions 14 9 Other 92 129 Other long-term liabilities $ 1,902 $ 138 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Disaggregation Of Revenue [Abstract] | |
Net Sales Disaggregation by Source | The following table presents the Company’s net sales disaggregated by source for the periods presented: Year Ended January 3, December 29, December 30, 2021 2019 2018 Restaurant $ 182,951 $ 246,826 $ 241,886 Gift card breakage 422 443 378 Net sales $ 183,373 $ 247,269 $ 242,264 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | Components of lease cost are as follows: Year Ended Year Ended January 3, December 29, 2021 2019 Operating lease cost $ 9,311 $ 8,930 Variable lease cost 2,558 2,438 Short-term lease cost 162 167 Total lease cost $ 12,031 $ 11,535 |
Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases | Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows: Year Ended Year Ended January 3, December 29, 2021 2019 Operating cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 7,885 $ 8,330 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations 4,468 3,752 |
Schedule of Weighted Average Remaining Lease Term and Discount Rate Operating Leases | Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows as of the period indicated: January 3, December 29, 2021 2019 Weighted-average remaining lease term 15.9 years 15.7 years Weighted-average discount rate 5.84 % 6.01 % |
Schedule of Maturities of Lease Liabilities for Operating Leases | Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows: January 3, 2021 2021 $ 10,097 2022 9,731 2023 9,745 2024 9,402 2025 8,718 2026 and thereafter 87,675 Total minimum lease payments 135,368 Less: Imputed interest (1) 50,972 Present value of lease liabilities $ 84,396 (1) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Significant Components of Income Tax Benefit | Significant components of the Company’s income tax benefit for the periods indicated below are as follows : Year Ended January 3, December 29, December 30, 2021 2019 2018 Current income taxes: Federal $ (6,936 ) $ 697 $ (152 ) State and local 192 678 565 Total current income taxes (6,744 ) 1,375 413 Deferred income taxes: Federal (1,257 ) (1,838 ) (2,041 ) State and local (448 ) (105 ) 32 Total deferred income taxes (1,705 ) (1,943 ) (2,009 ) Income tax benefit $ (8,449 ) $ (568 ) $ (1,596 ) |
Summary of Effective Tax Rate Differs from the Federal Statutory Rate | The Company’s effective tax rate differs from the federal statutory rate as set forth in the following table for the periods indicated: Year Ended January 3, December 29, December 30, 2021 2019 2018 Federal income tax 21.0 % 21.0 % 21.0 % Federal tax reform - - 3.3 Goodwill impairment impact (10.7 ) - - State income tax 1.4 6.0 14.3 Wage credits 6.1 (32.3 ) (107.5 ) Uncertain tax positions - - (0.3 ) Return to provision 0.1 (0.6 ) (3.1 ) Rate differential between current and deferred taxes 10.1 - (1.3 ) Incentive Stock Options (0.2 ) 1.3 4.4 Other (0.5 ) (2.3 ) 2.8 Effective tax rate 27.3 % (6.9 )% (66.4 )% |
Schedule of Significant Components of Deferred Income Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of January 3, 2021, and December 29, 2019, are as follows: January 3, December 29, 2021 2019 Deferred tax assets: Net operating loss carryforwards $ 742 $ 207 Accrued bonuses 3 47 Share-based compensation awards 739 546 State bonus depreciation 282 115 General business credit carryforward 7,108 3,304 Other 120 77 Total deferred tax assets 8,994 4,296 Less: deferred tax assets valuation allowance (317 ) (168 ) Total net deferred tax assets 8,677 4,128 Deferred tax liabilities: Partnership differences (4,050 ) (1,210 ) Total deferred tax liabilities (4,050 ) (1,210 ) Net deferred tax asset $ 4,627 $ 2,918 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending unrecognized tax benefit associated with these positions (excluding federal benefit and the aforementioned accrued interest) is as follows: January 3, December 29, 2021 2019 Balance at the beginning of the year $ 83 $ 88 Changes based on tax positions taken during the current year - - Changes based on tax positions taken during prior years - - Reductions related to settlements with taxing authorities and lapses of statutes of limitations - (5 ) Balance at the end of the year $ 83 $ 83 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Management Profits Interest Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Assumptions used to Estimate Fair Value of Awards under Black-Scholes-Merton Pricing Model | The Company used the Black-Scholes-Merton pricing model to estimate the fair value of management profits interest awards and used the following assumptions: Grant Date Fair Value Member equity price per unit $ 10.00 Class B hurdle price $ 11.30 Dividend yield 0 % Volatility factor 35 % Risk-free interest rate 1.24 % Time to liquidity (in years) 3.5 Lack of marketability discount 23 % Grant date fair value $ 1.76 |
Stock Option Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Assumptions used to Estimate Fair Value of Awards under Black-Scholes-Merton Option Pricing Model | The Company uses the Black-Scholes-Merton option pricing model to estimate the fair value of stock option awards and used the following assumptions for the indicated periods during which grants were made as noted above: Year Ended Year Ended January 3, 2021 December 30, 2018 Dividend yield 0.00 % 0.00 % Volatility factor 50.00 % 37.00 % Risk-free interest rate 0.22 % 2.69 % Expected life of options (in years) 4.75 4.75 Weighted-average grant date fair value $ 1.69 $ 3.42 |
Summary of Stock Options under Equity Incentive Plan | A summary of stock options under the Company’s equity incentive plan is as follows: Number of Shares Weighted Average Exercise Price Outstanding at December 29, 2019 1,495,750 $ 9.57 Issued 246,000 5.00 Exercised - - Forfeited (2,500 ) 8.90 Outstanding at January 3, 2021 1,739,250 $ 8.92 |
Schedule of Company's Non - Vested Activity | The following table summarizes the Company’s non-vested stock option activity for the year ended January 3, 2021: Weighted Average Number of Grant Date Shares Fair Value Non-vested stock options at December 29, 2019 519,687 $ 3.26 Granted 246,000 1.69 Vested (264,063 ) 3.11 Forfeited (625 ) 2.81 Non-vested stock options at January 3, 2021 500,999 $ 2.57 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about the Company’s stock options outstanding at January 3, 2021: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding at January 3, 2021 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable at January 3, 2021 Weighted Average Remaining Contractual Life Weighted Average Exercise Price $5.00 246,000 6.59 years $ 5.00 - - $ - $8.90 532,500 2.84 years 8.90 532,500 2.84 years 8.90 $9.55 510,000 4.13 years 9.55 255,000 4.13 years 9.55 $10.24 13,750 2.32 years 10.24 13,750 2.32 years 10.24 $10.39 437,000 1.77 years 10.39 437,000 1.77 years 10.39 $5.00 - $10.39 1,739,250 3.48 years $ 8.92 1,238,250 2.72 years $ 9.57 |
Restricted and Performance Shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Company's Non - Vested Activity | The following table summarizes the Company’s non-vested restricted and performance share activity for the year ended January 3, 2021: Restricted Shares Performance Shares Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Non-vested restricted shares at December 29, 2019 264,000 $ 10.75 52,500 $ 10.75 Granted 63,000 4.43 - - Vested (65,997 ) 10.75 - - Forfeited - - - - Non-vested restricted shares at January 3, 2021 261,003 $ 9.22 52,500 $ 10.75 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Jan. 03, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The following is a summary of the quarterly results of operations for the years ended January 3, 2021 and December 29, 2019 (in thousands, except per share amounts): 2020 Quarter ended March 29, June 28, September 27, January 3, Net sales $ 56,972 $ 27,602 $ 46,230 $ 52,569 Operating (loss) income (18,855 ) (11,298 ) (1,384 ) 1,484 (Loss) income from continuing operations before income taxes (18,979 ) (11,352 ) (1,643 ) 1,257 Net (loss) income (17,644 ) (6,988 ) (1,760 ) 3,921 Basic (loss) earnings per share (Loss) i net of tax $ (1.20 ) $ (0.47 ) $ (0.12 ) $ 0.27 Loss from discontinued operations, net (0.00 ) (0.00 ) (0.00 ) (0.00 ) Basic (loss) earnings per share $ (1.20 ) $ (0.48 ) $ (0.12 ) $ 0.27 Diluted (loss) earnings per share (Loss) income from continuing operations, net of tax $ (1.20 ) $ (0.47 ) $ (0.12 ) $ 0.27 Loss from discontinued operations, net (0.00 ) (0.00 ) (0.00 ) (0.00 ) Diluted (loss) earnings per share $ (1.20 ) $ (0.48 ) $ (0.12 ) $ 0.27 2019 Quarter ended March 31, June 30, September 29, December 29, Net sales $ 64,734 $ 62,229 $ 56,867 $ 63,439 Operating income 4,266 2,343 422 1,883 Income from continuing operations before income taxes 4,146 2,244 342 1,753 Net income 3,848 2,168 771 2,030 Basic earnings per share Income from continuing operations, net of tax $ 0.27 $ 0.15 $ 0.06 $ 0.14 Loss from discontinued operations, net (0.00 ) (0.00 ) (0.00 ) (0.00 ) Basic earnings per share $ 0.26 $ 0.15 $ 0.05 $ 0.14 Diluted earnings per share Income from continuing operations, net of tax $ 0.27 $ 0.15 $ 0.06 $ 0.14 Loss from discontinued operations, net (0.00 ) (0.00 ) (0.00 ) (0.00 ) Diluted earnings per share $ 0.26 $ 0.15 $ 0.05 $ 0.14 |
Organization and Business - Add
Organization and Business - Additional Information (Details) $ in Thousands | Oct. 28, 2020USD ($) | Mar. 29, 2020USD ($) | Sep. 27, 2020USD ($) | Jan. 03, 2021USD ($)RestaurantOperatingplace | Jun. 28, 2020USD ($) | Dec. 29, 2019RestaurantOperatingplace |
Organization And Business [Line Items] | ||||||
Date of incorporation | Aug. 15, 2014 | |||||
Number of restaurants | Restaurant | 46 | 47 | ||||
Number of states in entity operates | Operatingplace | 16 | 16 | ||||
Asset impairment charges | $ 16,426 | |||||
Percentage of deferred payment of employer portion of social security taxes, year one, CARES Act | 50.00% | |||||
Percentage of deferred payment of employer portion of social security taxes, year two, CARES Act | 50.00% | |||||
Employer portion of accrued social security taxes under the CARES Act | $ 3,593 | |||||
Percentage of refundable tax credit on qualified wages paid to employees | 50.00% | |||||
Refundable tax credit, capped of qualified wages per employee under CARES act | $ 10 | |||||
Refundable tax credit, qualified wages paid under CARES act | $ 2,010 | |||||
Recognition of refundable tax credit under CARES act | 1,082 | |||||
Maximum | ||||||
Organization And Business [Line Items] | ||||||
Refundable tax credit for employment taxes under CARES Act | 5 | |||||
Other Long-term Liabilities | ||||||
Organization And Business [Line Items] | ||||||
Employer portion of accrued social security taxes under the CARES Act | 1,796 | |||||
Accrued Expenses and Other Current Liabilities | ||||||
Organization And Business [Line Items] | ||||||
Employer portion of accrued social security taxes current under the CARES Act | 1,796 | |||||
Revolving Line of Credit | ||||||
Organization And Business [Line Items] | ||||||
Line of credit, amount drew down during period | $ 17,000 | |||||
Revolving Line of Credit | Development Line of Credit | ||||||
Organization And Business [Line Items] | ||||||
Line of credit, amount drew down during period | $ 17,000 | |||||
Line of credit, remaining borrowing capacity | 25,000 | |||||
Repayments of debt | $ 10,000 | |||||
Revolving Line of Credit | Modification Agreement | ||||||
Organization And Business [Line Items] | ||||||
Line of credit, remaining borrowing capacity | $ 15,000 | |||||
COVID-19 | ||||||
Organization And Business [Line Items] | ||||||
Cost incurred during period | $ 3,444 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 01, 2018 | Oct. 29, 2015 | Mar. 29, 2020 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Loss from discontinued operations, net | $ 203 | $ 236 | $ 459 | ||||
Asset impairment charges | 16,426 | ||||||
Impairment of goodwill | $ 15,737 | 15,737 | |||||
Impairment of indefinite-lived intangible assets | 0 | $ 0 | 0 | 0 | |||
Long-lived asset impairment charge | $ 689 | ||||||
Term of leases | 30 years | ||||||
Non-cancelable lease term | less than one year | ||||||
Breakage of gift cards | $ 422 | 443 | 378 | ||||
Advertising expense | 160 | 156 | 154 | ||||
Transaction, contested proxy and other related expenses | 645 | 1,178 | $ 5,648 | ||||
Non-controlling interests | $ 1,558 | $ 1,558 | |||||
Aggregate purchase price for repurchase of company stock outstanding | $ 15,000 | ||||||
Period to repurchase common stock | 3 years | ||||||
Stock repurchase program expiration date | Nov. 1, 2021 | Oct. 29, 2018 | |||||
Common stock repurchase activity | 0 | 0 | 0 | ||||
Allocation of Net Income | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Non-controlling interests | $ 0 | $ 0 | $ 0 | ||||
Black Knight Advisory Services, LLC | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Management consulting agreement accrued termination payment | 4,560 | ||||||
Black Knight Advisory Services, LLC | Common Class B Units | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of share forfeited and cancelled | 1,500,024 | ||||||
Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Term of leases | 15 years | ||||||
Rent renewal options | 1 year | ||||||
Payment receipt period on credit card transaction | 3 days | ||||||
Minimum [Member] | Buildings and Land Improvements | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment useful life | 30 years | ||||||
Minimum [Member] | Furniture, Fixtures, and Equipment | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment useful life | 2 years | ||||||
Maximum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Term of leases | 20 years | ||||||
Rent renewal options | 5 years | ||||||
Payment receipt period on credit card transaction | 4 days | ||||||
Maximum | Noninterest-bearing Transaction Accounts | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash balance insured by Federal Deposit Insurance Corporation | $ 250 | ||||||
Maximum | Buildings and Land Improvements | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment useful life | 40 years | ||||||
Maximum | Furniture, Fixtures, and Equipment | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Property plant and equipment useful life | 10 years | ||||||
Discontinued Operations | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Loss from discontinued operations, net | $ 203 | $ 236 | $ 459 |
(Loss) Earnings per Share - Com
(Loss) Earnings per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Numerator: | |||||||||||
(Loss) income from continuing operations, net of tax | $ (22,268) | $ 9,053 | $ 4,458 | ||||||||
Loss from discontinued operations, net | (203) | (236) | (459) | ||||||||
Net (loss) income | $ 3,921 | $ (1,760) | $ (6,988) | $ (17,644) | $ 2,030 | $ 771 | $ 2,168 | $ 3,848 | $ (22,471) | $ 8,817 | $ 3,999 |
Denominator: | |||||||||||
Weighted average shares (denominator for basic (loss) earnings per share) | 14,720 | 14,695 | 14,695 | ||||||||
Effect of dilutive securities | 46 | 168 | |||||||||
Adjusted weighted average shares and assumed conversions (denominator for diluted (loss) earnings per share) | 14,720 | 14,741 | 14,863 | ||||||||
Basic (loss) earnings per share: | |||||||||||
(Loss) income from continuing operations, net of tax | $ 0.27 | $ (0.12) | $ (0.47) | $ (1.20) | $ 0.14 | $ 0.06 | $ 0.15 | $ 0.27 | $ (1.51) | $ 0.62 | $ 0.30 |
Loss from discontinued operations, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.02) | (0.03) |
Basic (loss) earnings per share | 0.27 | (0.12) | (0.48) | (1.20) | 0.14 | 0.05 | 0.15 | 0.26 | (1.53) | 0.60 | 0.27 |
Diluted (loss) earnings per share: | |||||||||||
(Loss) income from continuing operations, net of tax | 0.27 | (0.12) | (0.47) | (1.20) | 0.14 | 0.06 | 0.15 | 0.27 | (1.51) | 0.61 | 0.30 |
Loss from discontinued operations, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.02) | (0.03) |
Diluted (loss) earnings per share | $ 0.27 | $ (0.12) | $ (0.48) | $ (1.20) | $ 0.14 | $ 0.05 | $ 0.15 | $ 0.26 | $ (1.53) | $ 0.60 | $ 0.27 |
(Loss) Earnings per Share - Add
(Loss) Earnings per Share - Additional Information (Details) - $ / shares | Aug. 07, 2020 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Antidilutive Securities Excluded From And Dilutive Securities Included In Computation Of Earnings Per Share [Line Items] | ||||
Number of stock option awards outstanding | 1,739,250 | 1,495,750 | ||
Number of stock options granted during the period | 246,000 | |||
Restricted Share Awards | ||||
Antidilutive Securities Excluded From And Dilutive Securities Included In Computation Of Earnings Per Share [Line Items] | ||||
Dilutive shares included in computation of earnings per share | 3,427 | |||
Number of share awards outstanding | 261,003 | 264,000 | ||
Granted share awards | 63,000 | |||
Restricted share awards vested | 65,997 | |||
Shares issued, grant price | $ 4.43 | |||
Number of share-based compensation unvested awards included in computation of earnings per share | 264,000 | |||
Performance Share Awards | ||||
Antidilutive Securities Excluded From And Dilutive Securities Included In Computation Of Earnings Per Share [Line Items] | ||||
Number of share awards outstanding | 52,500 | 52,500 | ||
Stock Option Awards | ||||
Antidilutive Securities Excluded From And Dilutive Securities Included In Computation Of Earnings Per Share [Line Items] | ||||
Dilutive shares included in computation of earnings per share | 42,948 | 33,811 | ||
Number of stock option awards outstanding | 1,739,250 | 1,495,750 | 1,495,750 | |
Number of stock options granted during the period | 246,000 | |||
Shares issued, exercise price | $ 5 | |||
Common Class B Units | Black Knight Advisory Services, LLC | ||||
Antidilutive Securities Excluded From And Dilutive Securities Included In Computation Of Earnings Per Share [Line Items] | ||||
Dilutive shares included in computation of earnings per share | 130,113 | |||
Management | Common Class B Units | ||||
Antidilutive Securities Excluded From And Dilutive Securities Included In Computation Of Earnings Per Share [Line Items] | ||||
Dilutive shares included in computation of earnings per share | 833,346 | |||
Shares attributable to dilutive effect of additional shares | 3,719 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 29, 2020USD ($)Restaurant | Jan. 03, 2021USD ($) | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | |
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Impairment charge related to long-lived assets | $ 689 | |||
Number of restaurants closed | Restaurant | 1 | |||
Impairment of goodwill | $ 15,737 | $ 15,737 | ||
Impairment of indefinite-lived intangible assets | 0 | 0 | $ 0 | $ 0 |
Level 3 | ||||
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Remaining carrying value of goodwill after impairment | $ 0 | |||
Lyndhurst Grill Location, Cleveland, Ohio | ||||
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Remaining book value of long-lived assets after sale of location | 0 | |||
Fair Value Non-Recurring Basis | ||||
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Non-financial assets measured at fair value | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Schedule of Assets Measured at Fair Value on a Recurring Basis | ||
Nonqualified deferred compensation plan assets | $ 1,222 | $ 833 |
Fair Value Measurements Recurring | Level 1 | ||
Schedule of Assets Measured at Fair Value on a Recurring Basis | ||
Assets held in trust | 3,820 | 3,399 |
Fair Value Measurements Recurring | Level 1 | Cash and Cash Equivalents (as Held in the Trust) | ||
Schedule of Assets Measured at Fair Value on a Recurring Basis | ||
Assets held in trust | 81 | 71 |
Fair Value Measurements Recurring | Level 1 | Corporate Bonds (as Held in the Trust) | ||
Schedule of Assets Measured at Fair Value on a Recurring Basis | ||
Assets held in trust | 2,241 | 2,195 |
Fair Value Measurements Recurring | Level 1 | Mutual and Money Market Funds | ||
Schedule of Assets Measured at Fair Value on a Recurring Basis | ||
Nonqualified deferred compensation plan assets | 1,222 | 833 |
Fair Value Measurements Recurring | Level 1 | U.S. Government Obligations (as Held in the Trust) | ||
Schedule of Assets Measured at Fair Value on a Recurring Basis | ||
Assets held in trust | $ 276 | $ 300 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid insurance | $ 1,534 | $ 1,422 |
Prepaid rent | 227 | 1,081 |
Payroll taxes | 1,183 | |
Other | 344 | 473 |
Prepaid expenses and other current assets | $ 2,105 | $ 4,159 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Other Assets [Abstract] | ||
Cash, cash equivalents and securities held in the Trust | $ 2,598 | $ 2,566 |
Cash surrender value of life insurance | 2,329 | 2,253 |
Investments in trading securities | 1,222 | 833 |
Other | 46 | 46 |
Other assets | $ 6,195 | $ 5,698 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 177,515 | $ 174,270 |
Less accumulated depreciation and amortization | (75,327) | (64,967) |
Property and equipment, net | 102,188 | 109,303 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 19,167 | 20,204 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 31,564 | 32,785 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 78,984 | 78,047 |
Restaurant and Other Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 42,026 | 41,504 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 5,774 | $ 1,730 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Other Operating Expenses | |||
Property Plant And Equipment [Line Items] | |||
Loss on disposition of assets | $ 68 | $ 135 | $ 202 |
Restaurant and Corporate Office | |||
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 12,290 | $ 12,123 | $ 11,157 |
Goodwill and Indefinite Lived_3
Goodwill and Indefinite Lived Intangible Assets - Schedule of Goodwill and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Tradename | $ 25,069 | $ 25,069 |
Goodwill | 15,737 | |
Liquor licenses | 579 | 579 |
Intangible assets | $ 25,648 | $ 41,385 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Payables And Accruals [Abstract] | ||
Taxes, other than income taxes | $ 3,338 | $ 4,447 |
Salaries, wages, vacation, and incentive compensation | 2,433 | 3,009 |
Current portion of deferred employer FICA tax | 1,796 | |
Transaction, contested proxy and other related expenses | 67 | 412 |
Accrued audit and accounting fees | 481 | 240 |
Other | 1,307 | 1,281 |
Accrued expenses and other current liabilities | $ 9,422 | $ 9,389 |
Debt - Additional Information (
Debt - Additional Information (Details) $ in Thousands | Oct. 28, 2020 | Apr. 15, 2020USD ($) | Oct. 31, 2020USD ($) | Jul. 04, 2021USD ($) | Apr. 04, 2021USD ($) | Jan. 03, 2021USD ($)EmployeeLocation | Sep. 27, 2020USD ($) | Jun. 28, 2020USD ($) | Mar. 29, 2020USD ($) | Dec. 29, 2019USD ($) | Sep. 29, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 27, 2020USD ($) | Jan. 03, 2021USD ($)EmployeeLocation | Dec. 29, 2019USD ($) | Dec. 30, 2018USD ($) | Aug. 01, 2020USD ($) | Jun. 05, 2020USD ($) | Apr. 29, 2020USD ($) | Apr. 10, 2020USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||
Non-use fee on lines of credit | Additionally, the non-use fee payable quarterly on the Development Line of Credit and Revolving Line of Credit was based on a sliding rate determined by a maximum adjusted debt to EBITDAR ratio which equaled 0.20% as of December 29, 2019. | ||||||||||||||||||||
Repayments of debt | $ 27,322 | $ 5,000 | $ 5,000 | ||||||||||||||||||
Net sales | $ 52,569 | $ 46,230 | $ 27,602 | $ 56,972 | $ 63,439 | $ 56,867 | $ 62,229 | $ 64,734 | $ 183,373 | 247,269 | $ 242,264 | ||||||||||
Number of furloughed hourly employees | Employee | 3,400 | 3,400 | |||||||||||||||||||
Deferred loan costs | $ 1,040 | 508 | $ 1,040 | 508 | |||||||||||||||||
Accumulated amortization expense, net | 703 | $ 436 | 703 | $ 436 | |||||||||||||||||
Deferred loan cost amortization - 2021 | 169 | 169 | |||||||||||||||||||
Deferred loan cost amortization - 2022 | 168 | 168 | |||||||||||||||||||
Deferred loan cost amortization - 2023 | 0 | 0 | |||||||||||||||||||
Deferred loan cost amortization - thereafter | $ 0 | 0 | |||||||||||||||||||
Maximum | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Extraordinary or nonrecurring gains or losses including other expenses | $ 1,000 | ||||||||||||||||||||
Debt To EBITDAR | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, non use fee percentage under previous agreement | 0.20% | ||||||||||||||||||||
Fourth Amended and Restated Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument interest rate | 4.00% | 4.00% | |||||||||||||||||||
Number of locations in collateral package | Location | 17 | 17 | |||||||||||||||||||
Aggregate net book value of properties securing mortgage loan | $ 38,379 | $ 38,379 | |||||||||||||||||||
LIBOR | Fourth Amended and Restated Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, description of variable rate basis | 30-day LIBOR plus 2.5% | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||||||||||||||||
LIBOR | Fourth Amended and Restated Loan Agreement | Interest Rate Floor | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, floor rate | 1.50% | ||||||||||||||||||||
Mortgage Loan | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument interest rate | 3.57% | 3.57% | |||||||||||||||||||
Principal payments deferral amount | $ 834 | ||||||||||||||||||||
Principal payments deferred date | Sep. 3, 2021 | ||||||||||||||||||||
Mortgage Loan | LIBOR | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, description of variable rate basis | 30-day LIBOR plus 1.85% | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.85% | ||||||||||||||||||||
Development Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument interest rate | 3.57% | 3.57% | |||||||||||||||||||
Line of credit, outstanding | 10,000 | $ 10,000 | |||||||||||||||||||
Repayments of debt | $ 10,000 | ||||||||||||||||||||
Line of credit facility, outstanding | $ 20,000 | ||||||||||||||||||||
Development Line of Credit | LIBOR | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, description of variable rate basis | 30-day LIBOR plus 1.85% | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.85% | ||||||||||||||||||||
Revolving Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument interest rate | 3.57% | 3.57% | |||||||||||||||||||
Line of credit, amount drew down during period | 17,000 | ||||||||||||||||||||
Line of credit, outstanding | 1,000 | $ 1,000 | |||||||||||||||||||
Revolving Line of Credit | Third Amended and Restated Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit facility | $ 16,000 | ||||||||||||||||||||
Original line of credit facility amount | 1,000 | ||||||||||||||||||||
Line of credit facility expansion amount | $ 15,000 | ||||||||||||||||||||
Monthly incremental line of credit facility | $ 5,000 | ||||||||||||||||||||
Revolving Line of Credit | LIBOR | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, description of variable rate basis | 30-day LIBOR plus 1.85% | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.85% | ||||||||||||||||||||
Revolving Line of Credit | LIBOR | Third Amended and Restated Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, description of variable rate basis | 30-day LIBOR plus 2.5% | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||||||||||||||||
Revolving Line of Credit | LIBOR | Third Amended and Restated Loan Agreement | Interest Rate Floor | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, floor rate | 1.50% | ||||||||||||||||||||
Revolving Line of Credit | Development Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit, amount drew down during period | 17,000 | ||||||||||||||||||||
Line of credit, outstanding | $ 21,000 | ||||||||||||||||||||
Line of credit, remaining borrowing capacity | 25,000 | $ 25,000 | |||||||||||||||||||
Term Loan | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument interest rate | 3.57% | 3.57% | |||||||||||||||||||
Principal payments deferral amount | $ 556 | ||||||||||||||||||||
Term Loan | Fourth Amended and Restated Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, expiration date | Dec. 10, 2020 | ||||||||||||||||||||
Term Loan | LIBOR | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, description of variable rate basis | 30-day LIBOR plus 1.85% | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.85% | ||||||||||||||||||||
Financial Institution | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, covenant compliance | Additionally, the Third Loan Agreement included certain terms agreed upon in a May 2020 waiver, which waived financial covenant compliance for then existing financial covenants under the Second Loan Agreement beginning May 7, 2020 through the period ending July 4, 2021 | ||||||||||||||||||||
Adjusted debt to tangible net worth ratio | 0.80 | 0.80 | |||||||||||||||||||
Net income in operation for at least 18 months | $ 40 | ||||||||||||||||||||
Financial Institution | J. Alexander's, LLC | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Aggregate loan granted under CARES Act | $ 10,000 | ||||||||||||||||||||
Aggregate loan repaid under CARES Act | $ 10,000 | ||||||||||||||||||||
Financial Institution | Stoney River Management Company, LLC | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Aggregate loan granted under CARES Act | $ 5,100 | ||||||||||||||||||||
Aggregate loan repaid under CARES Act | $ 5,100 | ||||||||||||||||||||
Financial Institution | Fourth Amended and Restated Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, expiration date | Jan. 1, 2023 | ||||||||||||||||||||
Debt instrument, covenant description | The financial covenants under the Fourth Loan Agreement require (i) minimum revenue of (a) at least $99,800 for the Company’s fiscal year ended January 3, 2021, (b) at least $118,400 on a four quarter trailing basis by April 4, 2021, and (c) at least $166,800 on a four quarter trailing basis by July 4, 2021 through the maturity date, and (ii) a maximum adjusted debt to tangible net worth ratio of 0.80 or less, measured quarterly beginning September 27, 2020, and (iii) a fixed coverage charge of not less than 1.00 to 1.00 for the period commencing July 5, 2021 through January 2, 2022, and not less than 1.05 to 1.00 beginning on January 3, 2022 through January 1, 2023, or the maturity date. | ||||||||||||||||||||
Financial Institution | Fourth Amended and Restated Loan Agreement | Covenant Extended Period Commencing July 5, 2021 Through January 2, 2022 | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument Covenant Minimum Required Fixed Charge Coverage Ratio | 100.00% | ||||||||||||||||||||
Financial Institution | Fourth Amended and Restated Loan Agreement | Covenant Extended Period Commencing January 3, 2022 Through End of Fiscal 2023 | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument Covenant Minimum Required Fixed Charge Coverage Ratio | 105.00% | ||||||||||||||||||||
Financial Institution | Financial Debt Covenants | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Net sales | $ 99,800 | ||||||||||||||||||||
Financial Institution | Financial Debt Covenants | Scenario Forecast | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Net sales | $ 166,800 | $ 118,400 | |||||||||||||||||||
Financial Institution | Mortgage Loan | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Long term loan | 4,028 | $ 4,028 | |||||||||||||||||||
Debt instrument, expiration date | Jan. 1, 2023 | ||||||||||||||||||||
Financial Institution | Development Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit facility | 20,000 | $ 20,000 | |||||||||||||||||||
Line of credit facility, expiration date | Jan. 1, 2023 | ||||||||||||||||||||
Financial Institution | Revolving Line of Credit | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Line of credit facility | 16,000 | $ 16,000 | |||||||||||||||||||
Line of credit facility, expiration date | Jan. 1, 2023 | ||||||||||||||||||||
Financial Institution | Term Loan | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Long term loan | $ 556 | $ 556 | |||||||||||||||||||
Debt instrument, expiration date | Dec. 10, 2020 | ||||||||||||||||||||
Pinnacle Bank | Mortgage Loan | Fourth Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, expiration date | Jan. 1, 2023 | ||||||||||||||||||||
Pinnacle Bank | Development Line of Credit | Fourth Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, expiration date | Jan. 1, 2023 | ||||||||||||||||||||
Pinnacle Bank | Revolving Line of Credit | Fourth Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, expiration date | Jan. 1, 2023 | ||||||||||||||||||||
Pinnacle Bank | Term Loan | Fourth Loan Agreement | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, expiration date | Dec. 10, 2020 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Debt Instrument [Line Items] | ||
Total debt, Current | $ 1,667 | $ 7,056 |
Total debt, Long-term | 12,746 | 2,845 |
Less: Net deferred loan costs | (337) | (72) |
Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Total debt, Current | 1,667 | 1,667 |
Total debt, Long-term | 2,083 | 2,917 |
Development Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt, Current | 4,000 | |
Total debt, Long-term | 10,000 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt, Current | $ 1,389 | |
Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt, Long-term | $ 1,000 |
Debt - Aggregate Maturities of
Debt - Aggregate Maturities of Long Term Debt - Additional Information (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 1,667 |
2022 | 13,083 |
2023 | 0 |
Thereafter | $ 0 |
Other Long Term Liabilities - S
Other Long Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of deferred employer FICA tax | $ 1,796 | |
Uncertain tax positions | 14 | $ 9 |
Other | 92 | 129 |
Other long-term liabilities | $ 1,902 | $ 138 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Stockholder's equity | $ 110,105 | $ 130,717 | $ 121,659 | $ 113,861 | |
Gift card redemptions during the period | 3,242 | 4,115 | 4,011 | ||
Current period gift card redemptions from the unearned revenue balance at the beginning of the period | 2,069 | 2,464 | $ 2,396 | ||
Gift cards sold during the period | $ 3,314 | $ 4,723 | |||
Accounting Standards Update 2014-09 [Member] | Adjustment due to Accounting Standards Update Adoption [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Stockholder's equity | $ 34 |
Revenue - Net Sales Disaggregat
Revenue - Net Sales Disaggregation by Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 52,569 | $ 46,230 | $ 27,602 | $ 56,972 | $ 63,439 | $ 56,867 | $ 62,229 | $ 64,734 | $ 183,373 | $ 247,269 | $ 242,264 |
Restaurant [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 182,951 | 246,826 | 241,886 | ||||||||
Gift Card Breakage [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 422 | $ 443 | $ 378 |
Leases - Additional information
Leases - Additional information (Details) | 12 Months Ended | |
Jan. 03, 2021LeaseAgreement | Dec. 30, 2018Lease | |
Leases [Abstract] | ||
Number of real estate leases at the point of adoption of the standard | Lease | 30 | |
Number of operating leases entered | Lease | 2 | |
Number of equipment lease entered | Lease | 1 | |
Lease term, including option periods | 30 years | |
Percentage of rent payment deferrals associated with COVID-19 landlord granted rent concessions | 50.00% | |
Number of COVID-19 related rent concession agreements | Agreement | 17 | |
Number of rent concession agreements qualified for special accounting treatment | Agreement | 15 | |
Number of agreements as COVID-19 related lease modifications | Agreement | 2 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 9,311 | $ 8,930 |
Variable lease cost | 2,558 | 2,438 |
Short-term lease cost | 162 | 167 |
Total lease cost | $ 12,031 | $ 11,535 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Operating cash flow information: | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 7,885 | $ 8,330 |
Non-cash activity: | ||
Right-of-use assets obtained in exchange for lease obligations | $ 4,468 | $ 3,752 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate Operating Leases (Details) | Jan. 03, 2021 | Dec. 29, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 15 years 10 months 24 days | 15 years 8 months 12 days |
Weighted-average discount rate | 5.84% | 6.01% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities for Operating Leases (Details) $ in Thousands | Jan. 03, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 10,097 |
2022 | 9,731 |
2023 | 9,745 |
2024 | 9,402 |
2025 | 8,718 |
2026 and thereafter | 87,675 |
Total minimum lease payments | 135,368 |
Less: Imputed interest | 50,972 |
Present value of lease liabilities | $ 84,396 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Current income taxes: | |||
Federal | $ (6,936) | $ 697 | $ (152) |
State and local | 192 | 678 | 565 |
Total current income taxes | (6,744) | 1,375 | 413 |
Deferred income taxes: | |||
Federal | (1,257) | (1,838) | (2,041) |
State and local | (448) | (105) | 32 |
Total deferred income taxes | (1,705) | (1,943) | (2,009) |
Income tax benefit | $ (8,449) | $ (568) | $ (1,596) |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Tax Rate Differs from the Federal Statutory Rate (Details) | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax | 21.00% | 21.00% | 21.00% |
Federal tax reform | 3.30% | ||
Goodwill impairment impact | (10.70%) | ||
State income tax | 1.40% | 6.00% | 14.30% |
Wage credits | 6.10% | (32.30%) | (107.50%) |
Uncertain tax positions | (0.30%) | ||
Return to provision | 0.10% | (0.60%) | (3.10%) |
Rate differential between current and deferred taxes | 10.10% | (1.30%) | |
Incentive Stock Options | (0.20%) | 1.30% | 4.40% |
Other | (0.50%) | (2.30%) | 2.80% |
Effective tax rate | 27.30% | (6.90%) | (66.40%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 03, 2021 | Dec. 29, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 742 | $ 207 |
Accrued bonuses | 3 | 47 |
Share-based compensation awards | 739 | 546 |
State bonus depreciation | 282 | 115 |
General business credit carryforward | 7,108 | 3,304 |
Other | 120 | 77 |
Total deferred tax assets | 8,994 | 4,296 |
Less: deferred tax assets valuation allowance | (317) | (168) |
Total net deferred tax assets | 8,677 | 4,128 |
Deferred tax liabilities: | ||
Partnership differences | (4,050) | (1,210) |
Total deferred tax liabilities | (4,050) | (1,210) |
Net deferred tax asset | $ 4,627 | $ 2,918 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Income Taxes [Line Items] | ||
Deferred tax assets valuation allowance | $ 317 | $ 168 |
State gross operating loss carryforwards, expiration dates | expiring in years 2021 through 2040 | |
Federal general business credit carryforwards | $ 7,108 | 3,304 |
Federal general business credit carryforwards, expiration dates | expiring in 2031 through 2040 | |
Additional operating loss carryforwards never expire | $ 3,029 | |
Liability (including interest) in connection with uncertain tax positions | 72 | 66 |
Accrued interest and penalties related to unrecognized tax benefits | 6 | $ 1 |
Unrecognized tax benefits that would impact effective tax rate | 23 | |
Unrecognized benefit within the next twelve months | 18 | |
CARES Act | ||
Income Taxes [Line Items] | ||
Tax refund from carryback of NOLs | 6,856 | |
State and Local Jurisdiction | ||
Income Taxes [Line Items] | ||
State gross operating loss carryforwards | 15,185 | |
Federal | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | $ 23,761 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 83 | $ 88 |
Reductions related to settlements with taxing authorities and lapses of statutes of limitations | 0 | (5) |
Balance at the end of the year | $ 83 | $ 83 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Equity-based compensation expense | $ 1,878 | $ 1,498 | $ 3,765 |
Amended and Restated 2015 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Authorized common stock to be issued for equity awards | 2,850,000 | ||
Shares available for grant | 351,750 | 721,250 | 4,250 |
Share-based Compensation - Stoc
Share-based Compensation - Stock Option Awards - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | 20 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | Jan. 03, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of stock options granted during the period | 246,000 | |||
Options forfeited | 2,500 | |||
Amended and Restated 2015 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total number of stock options awards granted under the plan | 1,776,750 | 0 | 1,776,750 | |
Contractual term of stock options granted | 7 years | |||
Requisite service period | 4 years | |||
Vesting period, grants | 4 years | |||
Options forfeited | 2,500 | 37,500 | ||
Period of U.S. Treasury bond rate | 5 years | |||
Stock option exercisable | 1,238,250 | 976,063 | 602,125 | 1,238,250 |
Unrecognized compensation cost | $ 867 | $ 867 | ||
Period of unrecognized compensation cost | 3 years 7 months 2 days | |||
Aggregate intrinsic value of stock options | $ 563 | $ 379 | $ 0 | 563 |
Options exercised | 0 | 0 | 0 | |
Intrinsic value of options exercisable | $ 0 | $ 277 | $ 0 | $ 0 |
Fair value of stock options vested | 820 | 1,187 | 751 | |
Amended and Restated 2015 Equity Incentive Plan | General and Administrative Expenses | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense recognized for stock options | $ 803 | $ 1,105 | $ 1,121 | |
Amended and Restated 2015 Equity Incentive Plan | Members of Management | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of stock options granted during the period | 246,000 |
Share-based Compensation - Assu
Share-based Compensation - Assumptions used to Estimate Fair Value of Awards under Black-Scholes-Merton Pricing Model (Details) - $ / shares | Jan. 01, 2015 | Jan. 03, 2021 | Dec. 30, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 1.69 | ||
Management Profits Interest Plan | Common Class B Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Volatility factor | 35.00% | ||
Risk-free interest rate | 1.24% | ||
Expected life of options (in years) | 3 years 6 months | ||
Weighted-average grant date fair value | $ 1.76 | ||
Member equity price per unit | 10 | ||
Class B hurdle price | $ 11.30 | ||
Lack of marketability discount | 23.00% | ||
Stock Option Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | |
Volatility factor | 50.00% | 37.00% | |
Risk-free interest rate | 0.22% | 2.69% | |
Expected life of options (in years) | 4 years 9 months | 4 years 9 months | |
Weighted-average grant date fair value | $ 1.69 | $ 3.42 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Stock Options under Equity Incentive Plan (Details) | 12 Months Ended |
Jan. 03, 2021$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of shares outstanding, beginning balance | shares | 1,495,750 |
Number of shares, issued | shares | 246,000 |
Number of shares, forfeited | shares | (2,500) |
Number of shares outstanding, ending balance | shares | 1,739,250 |
Weighted average exercise price, beginning balance | $ / shares | $ 9.57 |
Weighted average exercise price, issued | $ / shares | 5 |
Weighted average exercise price, forfeited | $ / shares | 8.90 |
Weighted average exercise price, ending balance | $ / shares | $ 8.92 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Company's Non - Vested Stock Option Activity (Details) | 12 Months Ended |
Jan. 03, 2021$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Non-vested stock options, Number of shares, Beginning balance | shares | 519,687 |
Number of shares, Granted | shares | 246,000 |
Number of shares, Vested | shares | (264,063) |
Number of shares, Forfeited | shares | (625) |
Non-vested stock options, Number of shares, Ending balance | shares | 500,999 |
Non-vested stock options, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 3.26 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 1.69 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 3.11 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 2.81 |
Non-vested stock options, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 2.57 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Details) | 12 Months Ended |
Jan. 03, 2021$ / sharesshares | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Upper range limit | $ 10.39 |
Range of exercise prices, Lower range limit | $ 5 |
Number of options outstanding | shares | 1,739,250 |
Options outstanding, Weighted average, Remaining Contractual life in years | 3 years 5 months 23 days |
Options outstanding, Weighted average, Exercise price | $ 8.92 |
Number of options exercisable | shares | 1,238,250 |
Options exercisable, Weighted average, Remaining life in years | 2 years 8 months 19 days |
Options exercisable, Weighted average, Exercise price | $ 9.57 |
$5.00 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Upper range limit | $ 5 |
Number of options outstanding | shares | 246,000 |
Options outstanding, Weighted average, Remaining Contractual life in years | 6 years 7 months 2 days |
Options outstanding, Weighted average, Exercise price | $ 5 |
$8.90 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Upper range limit | $ 8.90 |
Number of options outstanding | shares | 532,500 |
Options outstanding, Weighted average, Remaining Contractual life in years | 2 years 10 months 2 days |
Options outstanding, Weighted average, Exercise price | $ 8.90 |
Number of options exercisable | shares | 532,500 |
Options exercisable, Weighted average, Remaining life in years | 2 years 10 months 2 days |
Options exercisable, Weighted average, Exercise price | $ 8.90 |
$9.55 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Upper range limit | $ 9.55 |
Number of options outstanding | shares | 510,000 |
Options outstanding, Weighted average, Remaining Contractual life in years | 4 years 1 month 17 days |
Options outstanding, Weighted average, Exercise price | $ 9.55 |
Number of options exercisable | shares | 255,000 |
Options exercisable, Weighted average, Remaining life in years | 4 years 1 month 17 days |
Options exercisable, Weighted average, Exercise price | $ 9.55 |
$10.24 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Upper range limit | $ 10.24 |
Number of options outstanding | shares | 13,750 |
Options outstanding, Weighted average, Remaining Contractual life in years | 2 years 3 months 25 days |
Options outstanding, Weighted average, Exercise price | $ 10.24 |
Number of options exercisable | shares | 13,750 |
Options exercisable, Weighted average, Remaining life in years | 2 years 3 months 25 days |
Options exercisable, Weighted average, Exercise price | $ 10.24 |
$10.39 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of exercise prices, Upper range limit | $ 10.39 |
Number of options outstanding | shares | 437,000 |
Options outstanding, Weighted average, Remaining Contractual life in years | 1 year 9 months 7 days |
Options outstanding, Weighted average, Exercise price | $ 10.39 |
Number of options exercisable | shares | 437,000 |
Options exercisable, Weighted average, Remaining life in years | 1 year 9 months 7 days |
Options exercisable, Weighted average, Exercise price | $ 10.39 |
Share-based Compensation - Rest
Share-based Compensation - Restricted and Performance Shares - Additional Information (Details) $ / shares in Units, $ in Thousands | Mar. 18, 2021Installmentshares | Jan. 03, 2021USD ($)$ / sharesshares | Dec. 29, 2019USD ($)Installment$ / sharesshares | Dec. 30, 2018USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,878 | $ 1,498 | $ 3,765 | |
Restricted Share Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | shares | 63,000 | 264,000 | ||
Restricted period of shares granted | 4 years | |||
Number of installments | Installment | 4 | |||
Vesting period, grants | 1 year | |||
Weighted average grant date fair value | $ / shares | $ 4.43 | $ 10.75 | ||
Share-based compensation expense | $ 834 | $ 277 | ||
Unrecognized compensation expense | $ 2,005 | |||
Period of unrecognized compensation cost | 2 years 8 months 12 days | |||
Shares earned vesting date fair value | $ 292 | |||
Restricted Share Awards | Subsequent Event | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | shares | 20,000 | |||
Restricted period of shares granted | 4 years | |||
Number of installments | Installment | 4 | |||
Performance Share Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | shares | 52,500 | |||
Weighted average grant date fair value | $ / shares | $ 10.75 | |||
Share-based compensation expense | $ 241 | $ 115 | ||
Period of unrecognized compensation cost | 2 years 8 months 12 days | |||
Restricted and Performance Shares | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 208 |
Share-based Compensation - Sc_3
Share-based Compensation - Schedule of Company's Non - Vested Restricted and Performance Share Activity (Details) - $ / shares | 12 Months Ended | |
Jan. 03, 2021 | Dec. 29, 2019 | |
Restricted Shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Non-vested restricted shares, Number of shares, Beginning balance | 264,000 | |
Number of shares, Granted | 63,000 | 264,000 |
Number of shares, Vested | (65,997) | |
Non-vested restricted shares, Number of shares, Ending balance | 261,003 | 264,000 |
Non-vested restricted shares, Weighted Average Grant Date Fair Value, Beginning Balance | $ 10.75 | |
Weighted Average Grant Date Fair Value, Granted | 4.43 | $ 10.75 |
Weighted Average Grant Date Fair Value, Vested | 10.75 | |
Non-vested restricted shares, Weighted Average Grant Date Fair Value, Ending Balance | $ 9.22 | $ 10.75 |
Performance Shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Non-vested restricted shares, Number of shares, Beginning balance | 52,500 | |
Number of shares, Granted | 52,500 | |
Non-vested restricted shares, Number of shares, Ending balance | 52,500 | 52,500 |
Non-vested restricted shares, Weighted Average Grant Date Fair Value, Beginning Balance | $ 10.75 | |
Weighted Average Grant Date Fair Value, Granted | $ 10.75 | |
Non-vested restricted shares, Weighted Average Grant Date Fair Value, Ending Balance | $ 10.75 | $ 10.75 |
Share-based Compensation - Mana
Share-based Compensation - Management Profits Interest Plan - Additional Information (Details) - Management Profits Interest Plan - Common Class B Units - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2015 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | Sep. 28, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares reserved for issuance | 1,770,000 | ||||
Common unit, issued | 885,000 | ||||
Hurdle rate management profits interest grant | $ 180,000 | ||||
Post vesting holding period | 6 months | ||||
Award vesting rights | Vested Class B Units may be exchanged for, at the Company’s option, either (i) cash in an amount equal to the amount that would be distributed to the holder of those Class B Units by J. Alexander’s Holdings, LLC upon a liquidation of J. Alexander’s Holdings, LLC assuming the aggregate amount to be distributed to all members of J. Alexander’s Holdings, LLC were equal to the Company’s market capitalization on the date of exchange (net of any assets and liabilities of the Company that are not assets or liabilities of J. Alexander’s Holdings, LLC) or (ii) shares of the Company’s common stock with a fair market value equal to the cash payment under (i) above. | ||||
Dividend yield | 0.00% | ||||
Common unit, outstanding | 833,346 | 885,000 | |||
Adjusted grant date fair value | $ 1.87 | ||||
Unrecognized compensation cost | $ 0 | ||||
Vesting date | Jan. 1, 2018 | ||||
Grant date fair value of management profits interest awards vested during the year | 0 | $ 0 | $ 779 | ||
Redemption value of outstanding management profits interest awards | $ 0 | ||||
Becoming Vested After Two Years | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage, grants | 50.00% | ||||
Vesting at the End of Third Year | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage, grants | 50.00% |
Share-based Compensation - Blac
Share-based Compensation - Black Knight Advisory Services Profits Interest Plan - Additional Information (Details) - Common Class B Units - USD ($) $ in Thousands | Nov. 30, 2018 | Oct. 06, 2015 | Sep. 28, 2015 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Black Knight Advisory Services, LLC | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exchange period upon termination of management consulting agreement | 90 days | |||||
Black Knight Advisory Services Profits Interest Plan | Black Knight Advisory Services, LLC | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common unit, granted | 1,500,024 | |||||
Profits interest grant hurdle rate | $ 151,052 | |||||
Award vesting rights | The awards vested at a rate of one-third of the Class B Units on each of the first, second and third anniversaries of the grant date and required a six-month holding period post vesting. | |||||
Post vesting holding period | 6 months | |||||
Requisite service period | 3 years | |||||
Black Knight Advisory Services Profits Interest Plan | Black Knight Advisory Services, LLC | General and Administrative Expenses | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Profit interest expense | $ 0 | $ 0 | $ 2,644 | |||
Black Knight Advisory Services, LLC | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exchange period upon termination of management consulting agreement | 90 days |
Other Employee Benefits - Addit
Other Employee Benefits - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Other Employee Benefits Disclosure [Line Items] | |||
Employer matching contribution percentage | 25.00% | ||
Maximum percentage of employee compensation eligible for matching contribution by employer | 3.00% | ||
Investment in trading securities equivalent funds and balance of investment | $ 1,222 | $ 833 | |
Employer expense for matching contribution | 253 | 119 | $ 122 |
Nonqualified Deferred Compensation Plan | Executive Officers and Certain Senior Managers | |||
Other Employee Benefits Disclosure [Line Items] | |||
Participant account balances | 1,405 | 1,050 | |
Deferred Compensation Plan | Executive Officers and Certain Other Members of Management | |||
Other Employee Benefits Disclosure [Line Items] | |||
Liability recorded under deferred compensation plan | 6,568 | 6,053 | |
Expense (income) recognized under deferred compensation plan | $ 627 | $ 702 | $ (206) |
Maximum | Nonqualified Deferred Compensation Plan | Executive Officers and Certain Senior Managers | |||
Other Employee Benefits Disclosure [Line Items] | |||
Maximum percentage of employee compensation contributable to the benefit plan | 50.00% | 50.00% | 50.00% |
401(k) Plan | |||
Other Employee Benefits Disclosure [Line Items] | |||
Description of Savings Incentive and Salary Deferral Plan under Section 401(k) | Under the 401(k) Plan, qualifying employees can defer a portion of their income on a pretax basis through contributions to the 401(k) Plan, subject to an annual statutory limit. All employees with at least six months of service and who are at least 21 years of age are eligible to participate. For each dollar of participant contributions, up to 3% of each participant’s salary and bonus, the Company makes a minimum 25% matching contribution to the 401(k) Plan with a discretionary match allowable in addition and subject to the approval of the compensation committee of the Board on an annual basis. Such discretionary match was set at an additional 25% of the first 3% of each participant’s salary and bonus contributions for fiscal year 2020. | ||
Minimum number of service months required in plan during year to be eligible under plan | 6 months | ||
Employer additional matching contribution percentage | 25.00% | ||
Additional maximum percentage of employee compensation eligible for matching contribution by employer | 3.00% | ||
401(k) Plan | Minimum [Member] | |||
Other Employee Benefits Disclosure [Line Items] | |||
Employer matching contribution percentage | 25.00% | ||
401(k) Plan | Maximum | |||
Other Employee Benefits Disclosure [Line Items] | |||
Maximum percentage of employee compensation eligible for matching contribution by employer | 3.00% |
Other Employee Benefits - Rabbi
Other Employee Benefits - Rabbi Trust - Additional Information (Details) - Rabbi Trust - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Jan. 03, 2021 | |
Schedule Of Rabbi Trust [Line Items] | |||
Assets held in trust | $ 4,927 | ||
Additional contribution by employer | $ 75 | $ 95 | |
Cash Surrender Value - Life Insurance | |||
Schedule Of Rabbi Trust [Line Items] | |||
Assets held in trust | 2,329 | ||
Investments | |||
Schedule Of Rabbi Trust [Line Items] | |||
Assets held in trust | $ 2,598 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | Jan. 03, 2021 | Dec. 29, 2019 |
Equity [Abstract] | ||
Capital shares, authorized | 40,000,000 | |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares outstanding | 15,070,077 | 15,011,676 |
Preferred stock, shares outstanding | 0 | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 12 Months Ended |
Jan. 03, 2021USD ($)Lease | |
Commitments And Contingencies [Line Items] | |
Payments made to date relative to contingent leases | $ 0 |
Wendy's Operations | |
Commitments And Contingencies [Line Items] | |
Number of secondarily liable leases | Lease | 4 |
Estimated amount of secondarily liable lease payments due | $ 987 |
Wendy's Operations | Minimum | |
Commitments And Contingencies [Line Items] | |
Remaining lease term | 1 year |
Wendy's Operations | Maximum | |
Commitments And Contingencies [Line Items] | |
Remaining lease term | 5 years |
Mrs. Winner's Chicken and Biscuit Restaurant Operations | |
Commitments And Contingencies [Line Items] | |
Number of secondarily liable leases | Lease | 1 |
Estimated amount of secondarily liable lease payments due | $ 259 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Black Knight Advisory Services, LLC - USD ($) $ in Thousands | Jan. 31, 2019 | Nov. 30, 2018 | Sep. 28, 2015 | Mar. 31, 2019 | Dec. 30, 2018 |
Related Party Transaction [Line Items] | |||||
Management consulting agreement, termination date | Nov. 30, 2018 | ||||
Annual fee as percentage of EBITDA | 3.00% | ||||
Management fee paid | $ 705 | ||||
Management consulting agreement termination payment | $ 4,560 | ||||
Common Class B Units | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Exchange period upon termination of management consulting agreement | 90 days | ||||
General and Administrative Expenses | |||||
Related Party Transaction [Line Items] | |||||
Management fees and reimbursable out-of-pocket costs | $ 703 |
Non-controlling Interest - Addi
Non-controlling Interest - Additional Information (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 |
Minority Interest [Line Items] | ||||
Non-controlling interests | $ 1,558 | $ 1,558 | ||
Black Knight Advisory Services, LLC | Common Class B Units | ||||
Minority Interest [Line Items] | ||||
Number of share forfeited and cancelled | 1,500,024 | |||
Black Knight Advisory Services, LLC | Common Class B Units | General and Administrative Expenses | ||||
Minority Interest [Line Items] | ||||
Non-cash compensation expense | 0 | 0 | ||
Allocation of Net Income | ||||
Minority Interest [Line Items] | ||||
Net income (loss) attributable to non controlling interest | $ 0 | $ 0 | $ 0 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 03, 2021 | Dec. 29, 2019 | Dec. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 52,569 | $ 46,230 | $ 27,602 | $ 56,972 | $ 63,439 | $ 56,867 | $ 62,229 | $ 64,734 | $ 183,373 | $ 247,269 | $ 242,264 |
Operating (loss) income | 1,484 | (1,384) | (11,298) | (18,855) | 1,883 | 422 | 2,343 | 4,266 | (30,053) | 8,914 | 3,489 |
(Loss) income from continuing operations before income taxes | 1,257 | (1,643) | (11,352) | (18,979) | 1,753 | 342 | 2,244 | 4,146 | (30,717) | 8,485 | 2,862 |
Net (loss) income | $ 3,921 | $ (1,760) | $ (6,988) | $ (17,644) | $ 2,030 | $ 771 | $ 2,168 | $ 3,848 | $ (22,471) | $ 8,817 | $ 3,999 |
Basic (loss) earnings per share: | |||||||||||
(Loss) income from continuing operations, net of tax | $ 0.27 | $ (0.12) | $ (0.47) | $ (1.20) | $ 0.14 | $ 0.06 | $ 0.15 | $ 0.27 | $ (1.51) | $ 0.62 | $ 0.30 |
Loss from discontinued operations, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.02) | (0.03) |
Basic (loss) earnings per share | 0.27 | (0.12) | (0.48) | (1.20) | 0.14 | 0.05 | 0.15 | 0.26 | (1.53) | 0.60 | 0.27 |
Diluted (loss) earnings per share: | |||||||||||
(Loss) income from continuing operations, net of tax | 0.27 | (0.12) | (0.47) | (1.20) | 0.14 | 0.06 | 0.15 | 0.27 | (1.51) | 0.61 | 0.30 |
Loss from discontinued operations, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | (0.02) | (0.03) |
Diluted (loss) earnings per share | $ 0.27 | $ (0.12) | $ (0.48) | $ (1.20) | $ 0.14 | $ 0.05 | $ 0.15 | $ 0.26 | $ (1.53) | $ 0.60 | $ 0.27 |