Bojangles' (BOJA) 10-Q 6 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 28, 2015	Aug. 03, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 28, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	BOJA
Entity Registrant Name	BOJANGLES', INC.
Entity Central Index Key	1,630,132
Current Fiscal Year End Date	--12-27
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		35,950,959

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Current assets:
Cash and cash equivalents	$ 12,763	$ 13,201
Accounts and vendor receivables, net of allowance for doubtful accounts of $167 and $239	4,600	4,285
Accounts receivable, related parties, net of allowance for doubtful accounts of $38 and $23	437	736
Inventories, net	2,642	2,743
Other current assets	3,089	2,669
Total current assets	23,531	23,634
Property and equipment, net	45,847	42,478
Goodwill	161,140	161,140
Brand	290,500	290,500
Franchise rights, net	25,889	26,438
Favorable leases, net	1,691	1,908
Deferred debt issuance costs, net	2,311	2,726
Other noncurrent assets	3,075	3,819
Total assets	553,984	552,643
Current liabilities:
Accounts payable	14,508	15,639
Accrued expenses	20,620	18,479
Current maturities of long-term debt	0	0
Current maturities of capital lease obligations	4,878	4,365
Other current liabilities	3,129	1,655
Total current liabilities	43,135	40,138
Long-term debt, less current maturities	215,698	228,249
Deferred income taxes	114,193	116,589
Capital lease obligations, less current maturities	20,858	20,144
Other noncurrent liabilities	10,990	9,771
Total liabilities	$ 404,874	$ 414,891
Commitments and contingencies (notes 2, 12 and 13)
Stockholders' equity:
Preferred stock, $0.01 par value; 200 shares authorized and 100 shares issued and outstanding as of December 28, 2014, and 25,000 authorized and no shares issued and outstanding as of June 28, 2015		$ 172,691
Common stock, $0.01 par value; 200 shares authorized and no shares issued and outstanding as of December 28, 2014, and 150,000 authorized and 35,951 shares issued and outstanding as of June 28, 2015	$ 360
Additional paid-in capital	118,030	(56,220)
Retained earnings	30,907	21,135
Accumulated other comprehensive income (loss)	(187)	146
Total stockholders' equity	149,110	137,752
Total liabilities and stockholders' equity	$ 553,984	$ 552,643

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Accounts receivable, allowance for doubtful accounts	$ 239	$ 167
Accounts receivable, related parties, allowance for doubtful accounts	$ 23	$ 38
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	25,000,000	200,000
Preferred stock, shares issued	0	100,000
Preferred stock, shares outstanding	0	100,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	150,000,000	200,000
Common stock, shares issued	35,951,000	0
Common stock, shares outstanding	35,951,000	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Revenues:
Company restaurant revenues	$ 114,043	$ 100,642	$ 222,378	$ 191,397
Franchise royalty revenues	6,368	5,676	12,305	10,874
Other franchise revenues	105	222	480	447
Total revenues	120,516	106,540	235,163	202,718
Company restaurant operating expenses:
Food and supplies costs	36,724	33,376	73,285	63,560
Restaurant labor costs	31,178	27,913	61,647	53,474
Operating costs	24,312	21,872	48,183	42,232
Depreciation and amortization	2,714	2,374	5,388	4,693
Total Company restaurant operating expenses	94,928	85,535	188,503	163,959
Operating income before other operating expenses	25,588	21,005	46,660	38,759
Other operating expenses:
General and administrative	11,717	7,869	22,630	14,851
Depreciation and amortization	691	583	1,350	1,127
Impairment			15
(Gain) loss on disposal of property and equipment	14	(3)	11	(4)
Total other operating expenses	12,422	8,449	24,006	15,974
Operating income	13,166	12,556	22,654	22,785
Amortization of deferred debt issuance costs	(231)	(174)	(415)	(361)
Interest income	5		5	1
Interest expense	(2,171)	(2,396)	(4,392)	(4,414)
Income before income taxes	10,769	9,986	17,852	18,011
Income taxes	4,435	3,748	8,080	6,788
Net income	6,334	6,238	9,772	11,223
Other comprehensive income, net of tax
Change in fair value on interest rate swaps, net of income tax benefit (expense) of $180, $(9), $217 and $207	14	(284)	(333)	(335)
Comprehensive income	$ 6,348	$ 5,954	$ 9,439	$ 10,888
Net income per share :
Basic	$ 0.31		$ 0.95
Diluted	$ 0.17	$ 0.17	$ 0.26	$ 0.30

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Interest rate swaps, net of income tax benefit (expense)	$ (9)	$ 180	$ 207	$ 217

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 28, 2015 - USD ($) $ in Thousands	Total	Preferred stock	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)
Beginning balance at Dec. 28, 2014	$ 137,752	$ 172,691		$ (56,220)	$ 21,135	$ 146
Net income	9,772				9,772
Change in fair value on interest rate swaps, net of income tax benefit of $207	(333)					(333)
Stock option exercise	96		$ 1	95
Excess tax benefits from stock-based payment arrangements	421			421
Conversion of preferred stock to common stock		$ (172,691)	359	172,332
Stock-based compensation	1,402			1,402
Ending balance at Jun. 28, 2015	$ 149,110		$ 360	$ 118,030	$ 30,907	$ (187)

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Change in fair value on interest rate swaps, tax	$ (9)	$ 180	$ 207	$ 217

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014
Cash flows from operating activities:
Net income	$ 9,772	$ 11,223
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax benefit	(2,237)
Depreciation and amortization	6,738	5,820
Amortization of deferred debt issuance costs	415	361
Impairment	15
(Gain) loss on disposal of property and equipment	11	(4)
Provision for doubtful accounts	55	30
(Benefit) provision for inventory spoilage	16	(2)
Provision (benefit) for closed stores	(50)	101
Stock-based compensation	1,402	743
Excess tax benefit from stock-based compensation	(421)	(49)
Changes in operating assets and liabilities	2,930	190
Net cash provided by operating activities	18,646	18,413
Cash flows from investing activities:
Purchases of franchisee's assets	(186)	(3,188)
Purchases of property and equipment	(4,671)	(2,944)
Proceeds from disposition of property and equipment	28	3
Net cash used in investing activities	(4,829)	(6,129)
Cash flows from financing activities:
Proceeds from borrowings on long-term debt		50,000
Principal payments on long-term debt	(12,551)	(5,968)
Debt issuance costs		(720)
Distribution to stockholders		(50,000)
Stock option settlement		(172)
Stock option exercise	96
Excess tax benefit from stock-based compensation	421	49
Principal payments on capital lease obligations	(2,221)	(1,979)
Net cash used in financing activities	(14,255)	(8,790)
Net increase (decrease) in cash and cash equivalents	(438)	3,494
Cash and cash equivalents balance, beginning of period	13,201	8,456
Cash and cash equivalents balance, end of period	12,763	11,950
Supplemental cash flow disclosures:
Non-cash conversion of preferred stock into common stock	172,691
Cash paid for interest	4,374	4,189
Cash paid for income taxes	8,814	8,054
Assets acquired under capital leases	3,551	2,340
Net change in assets under financing obligations	1,493	3,916
Reduction of capital lease obligations upon return of assets	$ 81	$ 40

Summary of Significant Operatio

Summary of Significant Operations and Accounting Policies	6 Months Ended
	Jun. 28, 2015
Summary of Significant Operations and Accounting Policies	(1) Summary of Significant Operations and Accounting Policies (a) Operations Bojangles’, Inc. (formerly known as BHI Holding Corp.) (together with its subsidiaries, “Bojangles’”, the “Company”, “we” or “our”) was formed on June 28, 2011 as a Delaware corporation. The Company’s principal business is the operations and development and franchising, as franchisor, of limited service restaurants. As of June 28, 2015, there were 267 Company-operated restaurants, 59 related party franchised restaurants, and 320 independent franchised restaurants operating under the Bojangles’ The following is the number of Bojangles’ franchised, Company-operated Thirteen Weeks Ended June 28, 2015 Twenty-Six Weeks Ended June 28, 2015 Franchised Company- System- Franchised Company- System- Restaurants at the beginning of the period 377 258 635 368 254 622 Opened during the period 4 9 13 16 13 29 Closed during the period (2 ) — (2 ) (5 ) — (5 ) Refranchised during the period — — — — — — Restaurants at the end of the period 379 267 646 379 267 646 A relocation results in a closure and an opening. During the thirteen weeks ended June 28, 2015, our franchisees closed 2 restaurants, one of which was a relocation. During the twenty-six weeks ended June 28, 2015, our franchisees closed 5 restaurants, 4 of which were relocations. (b) Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles and practices of the United States of America (“GAAP”) for interim financial information. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Certain information and footnote disclosures normally included in audited consolidated financial statements presented in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the SEC. On May 13, 2015, the Company completed its initial public offering of 8,912,500 shares of common stock at a price to the public of $19.00 per share (the “IPO”), including 1,162,500 shares sold to the underwriters pursuant to their option to purchase additional shares. All of the shares of our common stock offered as part of the IPO were sold by selling stockholders. Accordingly, the Company did not receive any proceeds from the sale of the shares. Prior to the consummation of the IPO (i) a 359.03843-for-1 stock split of the Company’s common stock was effected (subject to rounding to eliminate any fractional shares), (ii) the conversion ratio of the Company’s Series A Preferred Stock was automatically adjusted as a result of the stock split in accordance with certain anti-dilution provisions in the Company’s certificate of incorporation and (iii) each share of the Company’s Series A Preferred Stock converted into 359.03843 shares of the Company’s common stock (subject to rounding to eliminate any fractional shares). All share and per-share data herein have been adjusted to reflect the stock split as though it had occurred prior to the earliest data presented. These condensed consolidated financial statements should be read in conjunction with our results of operations, financial positions and cash flows in the Company’s financial statements as of and for the fiscal year ended December 28, 2014. The results of operations and cash flows reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire fiscal year. The Company consolidates entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. All significant intercompany accounts and transactions are eliminated in consolidation. (c) Fiscal Year The Company operates on a 52- or 53-week fiscal year ending on the last Sunday of December. Fiscal year 2014 ended on December 28, 2014 and consisted of 52 weeks. Fiscal year 2015 will end on December 27, 2015 and will consist of 52 weeks. Fiscal quarters within both fiscal years 2014 and 2015 are comprised of thirteen weeks. (d) Use of Accounting Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, the actual amounts could differ from those estimates. Any adjustments applied to estimated amounts are recognized in the fiscal year in which such adjustments are determined. (e) New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718) In April 2015, FASB issued ASU 2015-03, Interest – Imputation of Interest The FASB has recently issued or discussed a number of proposed standards on such topics as consolidation, financial statement presentation, leases, financial instruments and hedging. Some of the proposed changes are significant and could have a material impact on our reporting. The Company has not yet fully evaluated the potential impact of all these proposals, but will make such an evaluation as the standards are finalized.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 28, 2015
Long-Term Debt	(2) Long-Term Long-term December 28, June 28, Term Loan, due October 9, 2018 $ 228,249 215,698 Revolving line of credit, due October 9, 2018 — — Total long-term debt 228,249 215,698 Less: Current maturities of long term debt — — Long-term debt, less current maturities $ 228,249 215,698 (a) Term Loan and Revolving Line of Credit On October 9, 2012, the Company entered into a credit agreement (“Credit Agreement”) with several financial institutions, collateralized by all of the assets of the Company. The Credit Agreement was subsequently amended on May 15, 2013 and again on April 11, 2014. As of December 28, 2014, there were outstanding balances under the term loan in one-month Eurodollar loans of $228.2 million, all of which were accruing interest at a rate of approximately 2.91%. As of June 28, 2015, there were outstanding balances under the term loan in one-month Eurodollar loans of $215.7 million, all of which were accruing interest at a rate of approximately 2.94%. As of December 28, 2014 and June 28, 2015, there were no outstanding balances under the revolving line of credit. Pursuant to the Credit Agreement, certain covenants restrict the Company from exceeding a maximum consolidated total lease adjusted leverage ratio, require the Company to maintain a minimum consolidated fixed charge coverage ratio, and place certain limitations on cash capital expenditures. The Company was not in violation of any covenants under the Credit Agreement as of December 28, 2014 and June 28, 2015. (b) Interest Rate Swap Agreements The Company enters into interest-rate-related derivative instruments to manage its exposure related to changes in interest rates on its variable-rate debt instruments. The Company does not enter into derivative instruments for any purpose other than cash flow hedging. The Company does not speculate using derivative instruments. By using derivative financial instruments to hedge exposures to changes in interest rates, the Company exposes itself to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is negative, the Company owes the counterparty and, therefore, the Company is not exposed to the counterparty’s credit risk in those circumstances. The Company minimizes counterparty credit risk in derivative instruments by entering into transactions with high-quality counterparties. The derivative instruments entered into by the Company do not contain credit-risk-related contingent features. The Company assesses interest rate risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Company maintains risk management control systems to monitor interest rate risk attributable to both the Company’s outstanding or forecasted debt obligations as well as the Company’s offsetting hedge positions. The Company enters into variable-rate LIBOR debt under the term loan credit agreement. The debt obligations expose the Company to variability in interest payments due to changes in interest rates. Management believes that it is prudent to limit the variability of a portion of its interest payments. To meet this objective, management entered into LIBOR based interest rate swap agreements to manage fluctuations in cash flows resulting from changes in the benchmark interest rate of LIBOR. These swaps change the variable-rate cash flow exposure on part of the debt obligations to fixed cash flows. Under the terms of the interest rate swaps, the Company receives LIBOR based variable interest rate payments and makes fixed interest rate payments, thereby creating the equivalent of fixed-rate debt for the notional amount of its debt hedged. The activity in accumulated other comprehensive income (loss) is as follows (in thousands): Fiscal Year Twenty- Opening balance, accumulated other comprehensive income $ 414 146 Unrealized loss from effective interest rate swap, net of tax (268 ) (333 ) Ending balance, accumulated other comprehensive income (loss) $ 146 (187 )

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 28, 2015
Fair Value Measurements	(3) Fair Value Measurements The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Cash and cash equivalents, trade accounts and vendor receivables, other assets (nonderivatives), notes payable to financial institutions, trade accounts payable, and accrued expenses (nonderivatives): The carrying amounts, at face value or cost plus accrued interest, approximate fair value because of the short maturity of these instruments. • Interest rate swaps: The fair value of interest rate swaps is determined using an income approach using the following significant inputs: the term of the swaps, the notional amount of the swaps, and the rate on the fixed leg of the swaps. There were three interest rate swaps outstanding as of June 28, 2015. The following table presents financial assets and liabilities measured at fair value on a recurring basis, which include derivatives designated as cash flow hedging instruments, and other investments, which consists of money market accounts and mutual funds held in a rabbi trust established by the Company to fund a portion of the Company’s current and future obligations under its deferred compensation plan (in thousands): Carrying Quoted Significant Significant Fair value measurement as of December 28, 2014: Investments for nonqualified deferred compensation plan (included with other noncurrent assets on the consolidated balance sheets) $ 2,202 2,202 — — Interest rate swap (included with other noncurrent assets on the consolidated balance sheets) 338 — 338 — Interest rate swap (included with other noncurrent liabilities on the consolidated balance sheets) (100 ) — (100 ) — Fair value measurement as of June 28, 2015: Investments for nonqualified deferred compensation plan (included with other noncurrent assets on the consolidated balance sheets) $ 2,587 2,587 — — Interest rate swap (included with other noncurrent assets on the consolidated balance sheets) 33 — 33 — Interest rate swap (included with other noncurrent liabilities on the consolidated balance sheets) (336 ) — (336 ) — There were no transfers into or out of Level 1 and Level 2 fair value measurements during the twenty-six weeks ended June 28, 2015. Our investments for the nonqualified deferred compensation plan are comprised of investments held in a rabbi trust. These investments consist of money market funds and mutual funds and the fair value measurements are derived using quoted prices in active markets for the specific funds which are based on Level 1 inputs of the fair value hierarchy. Our interest rate swaps are valued using a discounted cash flow analysis that incorporates observable market parameters, such as interest rate yield curves and currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by us or the counterparty.

Other Current Assets

Other Current Assets	6 Months Ended
	Jun. 28, 2015
Other Current Assets	(4) Other Current Assets Other current assets consist of the following (in thousands): December 28, June 28, Income taxes refundable $ 855 — Prepaid expenses 647 1,874 Deferred income taxes 1,167 1,215 Other current assets $ 2,669 3,089

Property and Equipment, Net

Property and Equipment, Net	6 Months Ended
	Jun. 28, 2015
Property and Equipment, Net	(5) Property and Equipment, Net Property and equipment, net consist of the following (in thousands): Useful lives December 28, June 28, Land — $ 1,140 1,140 Buildings Up to 40 years 620 620 Furniture, fixtures and equipment Up to 5 years 14,837 15,876 Computer hardware and software Up to 3 years 5,412 6,584 Leasehold improvements Up to 20 years 20,145 22,394 Capital leases, buildings Lesser of lease term or 40 years 8,553 8,553 Capital leases, equipment Lesser of lease term or 5 years 17,466 18,787 Capital leases, automobiles Lesser of lease term or 5 years 2,689 2,904 Construction-in-progress — 3,015 6,058 Total 73,877 82,916 Less: Accumulated depreciation (20,750 ) (24,279 ) Accumulated amortization (10,649 ) (12,790 ) Property and equipment, net $ 42,478 45,847 Depreciation and amortization expense related to property and equipment was $2.7 million and $3.1 million for the thirteen weeks ended June 29, 2014 and June 28, 2015, respectively, and $5.3 million and $6.2 million for the twenty-six weeks ended June 29, 2014 and June 28, 2015, respectively.

Franchise Rights, Net

Franchise Rights, Net	6 Months Ended
	Jun. 28, 2015
Franchise Rights, Net	(6) Franchise Rights, Net Franchise rights, net are as follows (in thousands): December 28, June 28, Franchise rights, including reacquired franchise rights $ 29,623 29,623 Less accumulated amortization (3,185 ) (3,734 ) Franchise rights, net $ 26,438 25,889 Amortization expense related to franchise rights was $0.3 million during each of the thirteen weeks ended June 29, 2014 and June 28, 2015, and $0.5 million during each of the twenty-six weeks ended June 29, 2014 and June 28, 2015.

Deferred Debt Issuance Costs, N

Deferred Debt Issuance Costs, Net	6 Months Ended
	Jun. 28, 2015
Deferred Debt Issuance Costs, Net	(7) Deferred Debt Issuance Costs, Net Deferred debt issuance costs, net are as follows (in thousands): December 28, June 28, Deferred debt issuance costs $ 4,254 4,254 Less accumulated amortization (1,528 ) (1,943 ) Deferred debt issuance costs, net $ 2,726 2,311 Debt issuance costs are capitalized and amortized using the effective interest method over the initial term of the related loan.

Other Noncurrent Assets

Other Noncurrent Assets	6 Months Ended
	Jun. 28, 2015
Other Noncurrent Assets	(8) Other Noncurrent Assets Other noncurrent assets consist of the following (in thousands): December 28, June 28, Investments for nonqualified deferred compensation plan $ 2,202 2,587 Interest rate swap asset 338 33 Deferred initial public offering costs 846 — Other noncurrent assets 433 455 Other noncurrent assets $ 3,819 3,075 As of December 28, 2014, deferred initial public offering costs, which primarily consisted of direct, incremental legal and accounting fees relating to the Company’s IPO, were capitalized within other noncurrent assets. The deferred initial public offering costs were expected to be offset against IPO proceeds due to the Company for newly issued shares of common stock upon the consummation of the IPO. During the second fiscal quarter of 2015, all of the shares of our common stock offered as part of the IPO were sold by selling stockholders. Accordingly, the Company did not receive any proceeds from the sale of the shares. As a result, approximately $4.5 million of expenses incurred by the Company related to the IPO, including the previously deferred initial public offering costs, were recorded within general and administrative expense on the Condensed Consolidated Statement of Operations during the twenty-six weeks ended June 28, 2015, of which $1.8 million was recorded during the thirteen weeks ended June 28, 2015.

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 28, 2015
Accrued Expenses	(9) Accrued Expenses Accrued expenses consist of the following (in thousands): December 28, June 28, Payroll & related $ 11,938 10,294 Sales and property taxes 2,268 4,625 Gift cards 761 537 Utilities 1,107 1,116 Occupancy 490 571 Interest 796 814 Other 1,119 2,663 Accrued expenses $ 18,479 20,620

Other Current Liabilities

Other Current Liabilities	6 Months Ended
	Jun. 28, 2015
Other Current Liabilities	(10) Other Current Liabilities Other current liabilities consist of the following (in thousands): December 28, June 28, Financing obligations under build-to-suit transactions $ 937 2,431 Income taxes payable — 228 Closed store obligation 155 93 Escrow liability 563 377 Other current liabilities $ 1,655 3,129

Other Noncurrent Liabilities

Other Noncurrent Liabilities	6 Months Ended
	Jun. 28, 2015
Other Noncurrent Liabilities	(11) Other Noncurrent Liabilities Other noncurrent liabilities consist of the following (in thousands): December 28, June 28, Deferred rents $ 4,271 5,071 Unfavorable lease liability, net 2,111 1,964 Deferred compensation 2,202 2,587 Deferred revenue 598 590 Closed store obligation 454 407 Interest rate swap liability 100 336 Other noncurrent liabilities 35 35 Other noncurrent liabilities $ 9,771 10,990 Deferred revenue includes initial franchise license fees that have been received, but for which the Company has not completed its obligations under these franchise agreements; therefore, revenue has not been recognized.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 28, 2015
Commitments and Contingencies	(12) Commitments and Contingencies (a) Litigation The Company is subject to various claims and litigation that arise in the normal course of business. Management is of the opinion that, although the outcome of the litigation cannot be predicted with any certainty, the ultimate liability, if any, will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. (b) Concentration of Credit Risk Certain financial instruments potentially subject the company to a concentration of credit risk. These financial instruments consist primarily of cash and cash equivalents and accounts and vendor receivables. The Company places its cash and cash equivalents with high-credit, quality financial institutions. At times, the balances in the accounts exceed the amounts insured by the Federal Deposit Insurance Corporation. Concentration of credit risk with respect to receivables is primarily limited to franchisees, which are primarily located in the southeastern United States and certain vendors. Royalty revenues from three franchisees, one of which is a related party franchisee, accounted for approximately 45% and 44% of the Company’s total franchise royalty revenues for the thirteen weeks ended June 29, 2014 and June 28, 2015, respectively, and approximately 45% and 44% of the Company’s total franchise royalty revenues for the twenty-six weeks ended June 29, 2014 and June 28, 2015, respectively. Royalty and franchise fee accounts receivable from three franchisees, one of which is a related party franchisee, accounted for approximately 44% and 43% of the Company’s gross royalty and franchise fee accounts receivable as of December 28, 2014 and June 28, 2015, respectively. The Company continually evaluates and monitors the credit history of its franchisees and believes it has an adequate allowance for bad debts. (c) Debt Guarantees Prior to July 25, 2011, a franchisee of the Company assumed a portion of the Company’s then outstanding term debt, which the Company guarantees through 2018. The Company may be required to perform under this guarantee in the event of default or nonperformance by this franchisee. The Company has determined default by the franchisee is unlikely due to their timely and consistent payments; therefore, the Company has not recorded a liability for this note on its consolidated balance sheets. The carrying value of debt covered by this additional guarantee of the Company was $0.2 million and $0.1 million as of December 28, 2014 and June 28, 2015, respectively.

Leases

Leases	6 Months Ended
	Jun. 28, 2015
Leases	(13) Leases The Company’s agreement with a financial institution providing up to $5.0 million for leasing of equipment with a remaining capacity of approximately $2.1 million available as of December 28, 2014 was scheduled to expire on March 1, 2015. In March 2015, the financial institution agreed to provide up to $5.0 million for leasing of equipment through March 1, 2016. Under this leasing arrangement, each of the scheduled leases has a 60 month term, a fixed interest rate equal to the interest rate swap for a 2.61 year weighted average life as published by the Bloomberg Swap report on the lease commencement date for the specific equipment project plus 300 basis points, and a bargain purchase option at the end of the lease of $1. The Company’s agreement with another financial institution providing up to $2.5 million for leasing of equipment with a remaining capacity of approximately $1.1 million available as of December 28, 2014 was scheduled to expire on December 31, 2014. In March 2015, the financial institution agreed to provide up to $1.8 million for leasing of equipment through January 31, 2016. Under this leasing arrangement, each of the scheduled leases has a 60 month term, a fixed interest rate equal to the 32 month interpolated interest rate swap on the lease commencement date for the specific equipment project plus 391 basis points, and a bargain purchase option at the end of the lease of $1.

Net Income per Share

Net Income per Share	6 Months Ended
	Jun. 28, 2015
Net Income per Share	(14) Net Income per Share Basic net income per share is calculated using the weighted-average number of shares of common stock outstanding during the thirteen and twenty-six weeks ended June 28, 2015. The Company has not presented historical basic net income per share because our historical capital structure makes the presentation of net income per share not meaningful as the Company did not have any shares of common stock outstanding prior to its IPO. The computation of diluted net income per share assumes the conversion of the outstanding preferred stock into common stock. Diluted net income per share is calculated using the weighted-average number of shares of common stock outstanding and potentially dilutive during the period, using the treasury stock method. The computation of basic and diluted net income per share for the thirteen and twenty-six weeks ended June 29, 2014 and June 28, 2015 are as follows (in thousands, except per share amounts): Thirteen Weeks Twenty-Six Weeks June 29, June 28, June 29, June 28, Net income $ 6,238 6,334 11,223 9,772 Weighted average number of common shares outstanding-basic — 20,540 — 10,270 Weighted average number of common shares assumed from the conversion of Series A Preferred Stock 35,904 15,388 35,904 25,646 Weighted average dilutive effect of stock options 1,052 1,559 1,060 1,530 Weighted average dilutive effect of restricted stock units — 4 — 6 Weighted average number of common shares outstanding-diluted 36,956 37,491 36,964 37,452 Net income per share-basic $ — 0.31 — 0.95 Net income per share-diluted $ 0.17 0.17 0.30 0.26

Income Taxes

Income Taxes	6 Months Ended
	Jun. 28, 2015
Income Taxes	(15) Income Taxes The Company’s effective income tax rates were 37.5% and 41.2% for the thirteen weeks ended June 29, 2014 and June 28, 2015, respectively, and 37.7% and 45.3% for the twenty-six weeks ended June 29, 2014 and June 28, 2015, respectively. The effective income tax rates for the thirteen and twenty-six weeks ended June 28, 2015 were impacted by costs related to the IPO that are not deductible for income tax purposes, which was partially offset by the recognition of certain tax credits.

Stock Compensation Plan

Stock Compensation Plan	6 Months Ended
	Jun. 28, 2015
Stock Compensation Plan	(16) Stock Compensation Plan Effective immediately prior to the IPO, the Company’s board of directors and stockholders approved the amendment and restatement of the 2011 Equity Incentive Plan. Under the Amended and Restated 2011 Equity Incentive Plan (the “Amended 2011 Plan”), the Company’s board of directors may grant stock options, restricted stock units and performance awards to officers, directors, employees, and consultants of the Company and its subsidiaries. There are up to 8.5 million shares available for issuance under the Amended 2011 Plan of authorized but unissued common stock. At June 28, 2015, there were 4.0 million additional shares available for grant under the Amended 2011 Plan. Stock Options Stock options are granted at a price determined by the board of directors or committee designated by the board at not less than the fair market value of a share on the date of grant. The term of each option shall be determined by the board of directors or committee designated by the board at the time of grant and shall be no greater than ten years. Stock option activity during the period indicated is as follows: Number of Weighted Weighted Aggregate Balance as of December 28, 2014 4,459,419 $ 3.76 7.8 $ 28,344 Granted — — Exercised (47,123 ) 2.03 Repurchased — — Forfeited (6,732 ) 2.03 Expired — — Balance as of June 28, 2015 4,405,564 $ 3.79 7.3 $ 86,899 Exercisable as of June 28, 2015 2,162,923 $ 2.95 7.1 $ 44,465 As of June 28, 2015, there was $2.7 million of total unrecognized compensation cost related to time based stock options, which is expected to be recognized over a weighted average period of approximately 1.6 years. Restricted Stock Units On May 13, 2015, the Company granted 2,631 restricted stock units to each of its non-employee directors who are not affiliated with Advent. The restricted stock units will vest on the date of the Company’ next annual meeting, subject to continued service to the Company. Vested shares will be delivered within ten days of the vesting date of such restricted stock unit. Restricted stock unit activity during the period indicated is as follows: Number Weighted Nonvested as of December 28, 2014 — $ — Granted 7,893 19.00 Forfeited — — Vested — — Nonvested as of June 28, 2015 7,893 $ 19.00 As of June 28, 2015, there was $0.1 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized ratably over a period of approximately 0.8 years.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 28, 2015
Related Party Transactions	(17) Related Party Transactions Advent International Corporation (“Advent”) is related to the Company through members of the Board of Directors and ownership of the Company. The Company reimburses Advent for certain expenses. Total amounts incurred for expenses reimbursed to Advent were $7 thousand and $0 for the thirteen weeks ended June 29, 2014 and June 28, 2015, respectively, and $29 thousand and $13 thousand for the twenty-six weeks ended June 29, 2014 and June 28, 2015, respectively. There were no amounts included in accounts payable due to Advent as of both December 28, 2014 and June 28, 2015. Panthers Football, LLC (“The Panthers”) is owned by family members of certain indirect stockholders of the Company. The Company has marketing and sponsorship agreements with The Panthers. Total expenses incurred under these agreements were $0 for each of the thirteen weeks ended June 29, 2014 and June 28, 2015, and $0.1 million for each of the twenty-six weeks ended June 29, 2014 and June 28, 2015, respectively. Cajun Jack’s, LLC (“Cajun”) is owned by family members of certain indirect stockholders and a member of the board of directors of the Company. Cajun is a franchisee of the Company. Cajun remits payments to the Company for royalties, marketing, and franchise license fees. As of December 28, 2014 and June 28, 2015, gross accounts receivable due from Cajun was $9 thousand and $10 thousand, respectively. For the thirteen weeks ended June 29, 2014 and June 28, 2015, the Company recognized royalty revenue of $25 thousand and $26 thousand, respectively, from Cajun. For the twenty-six weeks ended June 29, 2014 and June 28, 2015, the Company recognized royalty revenue of $46 thousand and $49 thousand, respectively, from Cajun. New Generation Foods, LLC (“New Generation”) is owned by family members of certain indirect stockholders and a member of the board of directors of the Company. New Generation is a franchisee of the Company. New Generation remits payments to the Company for royalties, marketing, and franchise license fees. As of December 28, 2014 and June 28, 2015, gross accounts receivable due from New Generation was $45 thousand and $49 thousand, respectively. For each of the thirteen weeks ended June 29, 2014 and June 28, 2015, the Company recognized royalty revenue of $0.1 million from New Generation. The Company recognized royalty revenue of $0.2 million and $0.3 million from New Generation during the twenty-six weeks ended June 29, 2014 and June 28, 2015, respectively. For the thirteen weeks ended June 29, 2014 and June 28, 2015, the Company recognized franchise fee revenue of $0 and $0, respectively, from New Generation. For the twenty-six weeks ended June 29, 2014 and June 28, 2015, the Company recognized franchise fee revenue of $0 and $35 thousand, respectively, from New Generation. The Company has agreed to match New Generation’s advertising expenditures in an amount up to 1% of New Generation’s sales from January 29, 2014 through July 31, 2015. The Company incurred $30 thousand and $33 thousand under the terms of this agreement during the thirteen weeks ended June 29, 2014 and June 28, 2015, respectively, and $0.1 million during both of the twenty-six weeks ended June 29, 2014 and June 28, 2015. Tri-Arc (“Tri-Arc”) Tri-Arc Tri-Arc Tri-Arc Tri-Arc Tri-Arc. Tri-Arc. Tri-Arc Tri-Arc JZF Properties, LLC (“JZF”) is owned by family members of certain indirect stockholders and a member of the board of directors of the Company. JZF leases a building and land to the Company for use as a restaurant operated by the Company. For the thirteen weeks ended June 29, 2014 and June 28, 2015, the Company made total rent payments of $46 thousand and $55 thousand, respectively, to JZF. For each of the twenty-six weeks ended June 29, 2014 and June 28, 2015, the Company made total rent payments of $0.1 million to JZF. MAR Real Estate, LLC (“MRE”) is owned by a certain indirect stockholder of the Company. MRE leases land and buildings to the Company for use as restaurants operated by the Company. For the thirteen weeks ended June 29, 2014 and June 28, 2015, the Company made total rent payments of $12 thousand and $43 thousand, respectively, to MRE. For each of the twenty-six weeks ended June 29, 2014 and June 28, 2015, the Company made total rent payments of $0.1 million to MRE.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 28, 2015
Subsequent Events	(18) Subsequent Events Subsequent to June 28, 2015, the Company completed a merger of BHI Intermediate Holding Corp. (“BHIH”), a Delaware corporation and a wholly-owned subsidiary of the Company, with and into the Company (the “Merger”). Also, in order to permit the Merger, the Company entered into Amendment No. 3 (the “Amendment”) to the Credit Agreement. The Amendment, among other things, deemed the Company (as successor-in-interest to BHIH), as of the Merger effective date, to be a party to the Credit Agreement as a “Guarantor” and “Loan Party” thereunder.

Summary of Significant Operat27

Summary of Significant Operations and Accounting Policies (Policies)	6 Months Ended
	Jun. 28, 2015
Operations	(a) Operations Bojangles’, Inc. (formerly known as BHI Holding Corp.) (together with its subsidiaries, “Bojangles’”, the “Company”, “we” or “our”) was formed on June 28, 2011 as a Delaware corporation. The Company’s principal business is the operations and development and franchising, as franchisor, of limited service restaurants. As of June 28, 2015, there were 267 Company-operated restaurants, 59 related party franchised restaurants, and 320 independent franchised restaurants operating under the Bojangles’ The following is the number of Bojangles’ franchised, Company-operated Thirteen Weeks Ended June 28, 2015 Twenty-Six Weeks Ended June 28, 2015 Franchised Company- System- Franchised Company- System- Restaurants at the beginning of the period 377 258 635 368 254 622 Opened during the period 4 9 13 16 13 29 Closed during the period (2 ) — (2 ) (5 ) — (5 ) Refranchised during the period — — — — — — Restaurants at the end of the period 379 267 646 379 267 646 A relocation results in a closure and an opening. During the thirteen weeks ended June 28, 2015, our franchisees closed 2 restaurants, one of which was a relocation. During the twenty-six weeks ended June 28, 2015, our franchisees closed 5 restaurants, 4 of which were relocations.
Basis of Presentation and Consolidation	(b) Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles and practices of the United States of America (“GAAP”) for interim financial information. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Certain information and footnote disclosures normally included in audited consolidated financial statements presented in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the SEC. On May 13, 2015, the Company completed its initial public offering of 8,912,500 shares of common stock at a price to the public of $19.00 per share (the “IPO”), including 1,162,500 shares sold to the underwriters pursuant to their option to purchase additional shares. All of the shares of our common stock offered as part of the IPO were sold by selling stockholders. Accordingly, the Company did not receive any proceeds from the sale of the shares. Prior to the consummation of the IPO (i) a 359.03843-for-1 stock split of the Company’s common stock was effected (subject to rounding to eliminate any fractional shares), (ii) the conversion ratio of the Company’s Series A Preferred Stock was automatically adjusted as a result of the stock split in accordance with certain anti-dilution provisions in the Company’s certificate of incorporation and (iii) each share of the Company’s Series A Preferred Stock converted into 359.03843 shares of the Company’s common stock (subject to rounding to eliminate any fractional shares). All share and per-share data herein have been adjusted to reflect the stock split as though it had occurred prior to the earliest data presented. These condensed consolidated financial statements should be read in conjunction with our results of operations, financial positions and cash flows in the Company’s financial statements as of and for the fiscal year ended December 28, 2014. The results of operations and cash flows reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire fiscal year. The Company consolidates entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. All significant intercompany accounts and transactions are eliminated in consolidation.
Fiscal Year	(c) Fiscal Year The Company operates on a 52- or 53-week fiscal year ending on the last Sunday of December. Fiscal year 2014 ended on December 28, 2014 and consisted of 52 weeks. Fiscal year 2015 will end on December 27, 2015 and will consist of 52 weeks. Fiscal quarters within both fiscal years 2014 and 2015 are comprised of thirteen weeks.
Use of Accounting Estimates	(d) Use of Accounting Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, the actual amounts could differ from those estimates. Any adjustments applied to estimated amounts are recognized in the fiscal year in which such adjustments are determined.
New Accounting Pronouncements	(e) New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation (Topic 718) In April 2015, FASB issued ASU 2015-03, Interest - Imputation of Interest The FASB has recently issued or discussed a number of proposed standards on such topics as consolidation, financial statement presentation, leases, financial instruments and hedging. Some of the proposed changes are significant and could have a material impact on our reporting. The Company has not yet fully evaluated the potential impact of all these proposals, but will make such an evaluation as the standards are finalized.

Summary of Significant Operat28

Summary of Significant Operations and Accounting Policies (Tables)	6 Months Ended
	Jun. 28, 2015
Number of Franchised, Company-Operated and System-Wide Restaurants	The following is the number of Bojangles’ franchised, Company-operated Thirteen Weeks Ended June 28, 2015 Twenty-Six Weeks Ended June 28, 2015 Franchised Company- System- Franchised Company- System- Restaurants at the beginning of the period 377 258 635 368 254 622 Opened during the period 4 9 13 16 13 29 Closed during the period (2 ) — (2 ) (5 ) — (5 ) Refranchised during the period — — — — — — Restaurants at the end of the period 379 267 646 379 267 646

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 28, 2015
Long-Term Debt	Long-term December 28, June 28, Term Loan, due October 9, 2018 $ 228,249 215,698 Revolving line of credit, due October 9, 2018 — — Total long-term debt 228,249 215,698 Less: Current maturities of long term debt — — Long-term debt, less current maturities $ 228,249 215,698
Activity in Accumulated Other Comprehensive Income (Loss)	The activity in accumulated other comprehensive income (loss) is as follows (in thousands): Fiscal Year Twenty- Opening balance, accumulated other comprehensive income $ 414 146 Unrealized loss from effective interest rate swap, net of tax (268 ) (333 ) Ending balance, accumulated other comprehensive income (loss) $ 146 (187 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 28, 2015
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents financial assets and liabilities measured at fair value on a recurring basis, which include derivatives designated as cash flow hedging instruments, and other investments, which consists of money market accounts and mutual funds held in a rabbi trust established by the Company to fund a portion of the Company’s current and future obligations under its deferred compensation plan (in thousands): Carrying Quoted Significant Significant Fair value measurement as of December 28, 2014: Investments for nonqualified deferred compensation plan (included with other noncurrent assets on the consolidated balance sheets) $ 2,202 2,202 — — Interest rate swap (included with other noncurrent assets on the consolidated balance sheets) 338 — 338 — Interest rate swap (included with other noncurrent liabilities on the consolidated balance sheets) (100 ) — (100 ) — Fair value measurement as of June 28, 2015: Investments for nonqualified deferred compensation plan (included with other noncurrent assets on the consolidated balance sheets) $ 2,587 2,587 — — Interest rate swap (included with other noncurrent assets on the consolidated balance sheets) 33 — 33 — Interest rate swap (included with other noncurrent liabilities on the consolidated balance sheets) (336 ) — (336 ) —

Other Current Assets (Tables)

Other Current Assets (Tables)	6 Months Ended
	Jun. 28, 2015
Other Current Assets	Other current assets consist of the following (in thousands): December 28, June 28, Income taxes refundable $ 855 — Prepaid expenses 647 1,874 Deferred income taxes 1,167 1,215 Other current assets $ 2,669 3,089

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	6 Months Ended
	Jun. 28, 2015
Property and Equipment, Net	Property and equipment, net consist of the following (in thousands): Useful lives December 28, June 28, Land — $ 1,140 1,140 Buildings Up to 40 years 620 620 Furniture, fixtures and equipment Up to 5 years 14,837 15,876 Computer hardware and software Up to 3 years 5,412 6,584 Leasehold improvements Up to 20 years 20,145 22,394 Capital leases, buildings Lesser of lease term or 40 years 8,553 8,553 Capital leases, equipment Lesser of lease term or 5 years 17,466 18,787 Capital leases, automobiles Lesser of lease term or 5 years 2,689 2,904 Construction-in-progress — 3,015 6,058 Total 73,877 82,916 Less: Accumulated depreciation (20,750 ) (24,279 ) Accumulated amortization (10,649 ) (12,790 ) Property and equipment, net $ 42,478 45,847

Franchise Rights, Net (Tables)

Franchise Rights, Net (Tables)	6 Months Ended
	Jun. 28, 2015
Franchise Rights, Net	Franchise rights, net are as follows (in thousands): December 28, June 28, Franchise rights, including reacquired franchise rights $ 29,623 29,623 Less accumulated amortization (3,185 ) (3,734 ) Franchise rights, net $ 26,438 25,889

Deferred Debt Issuance Costs,34

Deferred Debt Issuance Costs, Net (Tables)	6 Months Ended
	Jun. 28, 2015
Deferred Debt Issuance Costs, Net	Deferred debt issuance costs, net are as follows (in thousands): December 28, June 28, Deferred debt issuance costs $ 4,254 4,254 Less accumulated amortization (1,528 ) (1,943 ) Deferred debt issuance costs, net $ 2,726 2,311

Other Noncurrent Assets (Tables

Other Noncurrent Assets (Tables)	6 Months Ended
	Jun. 28, 2015
Components of Other Noncurrent Assets	Other noncurrent assets consist of the following (in thousands): December 28, June 28, Investments for nonqualified deferred compensation plan $ 2,202 2,587 Interest rate swap asset 338 33 Deferred initial public offering costs 846 — Other noncurrent assets 433 455 Other noncurrent assets $ 3,819 3,075

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 28, 2015
Accrued Expenses	Accrued expenses consist of the following (in thousands): December 28, June 28, Payroll & related $ 11,938 10,294 Sales and property taxes 2,268 4,625 Gift cards 761 537 Utilities 1,107 1,116 Occupancy 490 571 Interest 796 814 Other 1,119 2,663 Accrued expenses $ 18,479 20,620

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	6 Months Ended
	Jun. 28, 2015
Other Current Liabilities	Other current liabilities consist of the following (in thousands): December 28, June 28, Financing obligations under build-to-suit transactions $ 937 2,431 Income taxes payable — 228 Closed store obligation 155 93 Escrow liability 563 377 Other current liabilities $ 1,655 3,129

Other Noncurrent Liabilities (T

Other Noncurrent Liabilities (Tables)	6 Months Ended
	Jun. 28, 2015
Other Noncurrent Liabilities	Other noncurrent liabilities consist of the following (in thousands): December 28, June 28, Deferred rents $ 4,271 5,071 Unfavorable lease liability, net 2,111 1,964 Deferred compensation 2,202 2,587 Deferred revenue 598 590 Closed store obligation 454 407 Interest rate swap liability 100 336 Other noncurrent liabilities 35 35 Other noncurrent liabilities $ 9,771 10,990

Net Income per Share (Tables)

Net Income per Share (Tables)	6 Months Ended
	Jun. 28, 2015
Computation of Basic and Diluted Net Income Per Share	The computation of basic and diluted net income per share for the thirteen and twenty-six weeks ended June 29, 2014 and June 28, 2015 are as follows (in thousands, except per share amounts): Thirteen Weeks Twenty-Six Weeks June 29, June 28, June 29, June 28, Net income $ 6,238 6,334 11,223 9,772 Weighted average number of common shares outstanding-basic — 20,540 — 10,270 Weighted average number of common shares assumed from the conversion of Series A Preferred Stock 35,904 15,388 35,904 25,646 Weighted average dilutive effect of stock options 1,052 1,559 1,060 1,530 Weighted average dilutive effect of restricted stock units — 4 — 6 Weighted average number of common shares outstanding-diluted 36,956 37,491 36,964 37,452 Net income per share-basic $ — 0.31 — 0.95 Net income per share-diluted $ 0.17 0.17 0.30 0.26

Stock Compensation Plan (Tables

Stock Compensation Plan (Tables)	6 Months Ended
	Jun. 28, 2015
Stock Option Activity	Stock option activity during the period indicated is as follows: Number of Weighted Weighted Aggregate Balance as of December 28, 2014 4,459,419 $ 3.76 7.8 $ 28,344 Granted — — Exercised (47,123 ) 2.03 Repurchased — — Forfeited (6,732 ) 2.03 Expired — — Balance as of June 28, 2015 4,405,564 $ 3.79 7.3 $ 86,899 Exercisable as of June 28, 2015 2,162,923 $ 2.95 7.1 $ 44,465
Summary of Restricted Stock Unit Activity	Restricted stock unit activity during the period indicated is as follows: Number Weighted Nonvested as of December 28, 2014 — $ — Granted 7,893 19.00 Forfeited — — Vested — — Nonvested as of June 28, 2015 7,893 $ 19.00

Summary of Significant Operat41

Summary of Significant Operations and Accounting Policies - Additional Information (Detail)	May. 13, 2015$ / sharesshares	Jun. 28, 2015Restaurant	Jun. 28, 2015Restaurant	Mar. 31, 2015Restaurant	Dec. 28, 2014Restaurant
Organization And Summary Of Significant Accounting Policies [Line Items]
Stock issued during period, shares | shares	8,912,500
Shares issued, price per share | $ / shares	$ 19
Stock split of common stock	359.03843
Underwriter
Organization And Summary Of Significant Accounting Policies [Line Items]
Stock issued during period, shares | shares	1,162,500
Company-Operated
Organization And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants		267	267	258	254
Related party franchised
Organization And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants		59	59
Independent franchised
Organization And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants		320	320
Franchised
Organization And Summary Of Significant Accounting Policies [Line Items]
Number of restaurants		379	379	377	368
Closed during the period		2	5

Number of Franchised, Company-O

Number of Franchised, Company-Operated and System- Wide Restaurants (Detail) - Jun. 28, 2015 - Restaurant	Total	Total
Franchised
Franchisor Disclosure [Line Items]
Restaurants at the beginning of the period	377	368
Opened during the period	4	16
Closed during the period	(2)	(5)
Refranchised during the period	0	0
Restaurants at the end of the period	379	379
Company-Operated
Franchisor Disclosure [Line Items]
Restaurants at the beginning of the period	258	254
Opened during the period	9	13
Refranchised during the period	0	0
Restaurants at the end of the period	267	267
System-Wide
Franchisor Disclosure [Line Items]
Restaurants at the beginning of the period	635	622
Opened during the period	13	29
Closed during the period	(2)	(5)
Refranchised during the period	0	0
Restaurants at the end of the period	646	646

Long-Term Debt (Detail)

Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Debt Instrument [Line Items]
Long Term Debt	$ 215,698	$ 228,249
Less: Current maturities of long term debt	0	0
Long-term debt, less current maturities	215,698	228,249
Term Loan
Debt Instrument [Line Items]
Long Term Debt	$ 215,698	$ 228,249

Long-Term Debt (Parenthetical)

Long-Term Debt (Parenthetical) (Detail)	6 Months Ended	12 Months Ended
	Jun. 28, 2015	Dec. 28, 2014
Term Loan
Debt Instrument [Line Items]
Maturity date	Oct. 9, 2018	Oct. 9, 2018
Revolving line of credit
Debt Instrument [Line Items]
Maturity date	Oct. 9, 2018	Oct. 9, 2018

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Debt Instrument [Line Items]
Long Term Debt	$ 215,698	$ 228,249
Term Loan
Debt Instrument [Line Items]
Long Term Debt	215,698	228,249
Revolving line of credit
Debt Instrument [Line Items]
Long Term Debt	$ 0	$ 0
Line of Credit | One-month Eurodollar loans
Debt Instrument [Line Items]
Interest rate	2.94%	2.91%

Activity in Accumulated Other C

Activity in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014	Dec. 28, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Opening balance, accumulated other comprehensive income			$ 146	$ 414	$ 414
Unrealized loss from effective interest rate swap, net of tax	$ 14	$ (284)	(333)	$ (335)	(268)
Ending balance, accumulated other comprehensive income (loss)	$ (187)		$ (187)		$ 146

Financial Assets and Liabilitie

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments for nonqualified deferred compensation plan (included with other noncurrent assets on the consolidated balance sheets)	$ 2,587	$ 2,202
Interest rate swap (included with other noncurrent assets on the consolidated balance sheets)	33	338
Interest rate swap (included with other noncurrent liabilities on the consolidated balance sheets)	(336)	(100)
Quoted Prices in active market for identical instruments (Level 1) | Other Noncurrent Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments for nonqualified deferred compensation plan	2,587	2,202
Significant other observable inputs (Level 2) | Other Noncurrent Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	33	338
Significant other observable inputs (Level 2) | Other Noncurrent Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap	(336)	(100)
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments for nonqualified deferred compensation plan (included with other noncurrent assets on the consolidated balance sheets)	2,587	2,202
Interest rate swap (included with other noncurrent assets on the consolidated balance sheets)	33	338
Interest rate swap (included with other noncurrent liabilities on the consolidated balance sheets)	$ (336)	$ (100)

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail)	Jun. 28, 2015USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, assets, Level 1 to Level 2 transfers, amount	$ 0
Fair value, assets, Level 2 to Level 1 transfers, amount	0
Fair value, liabilities, Level 2 to Level 1 transfers, amount	$ 0

Other Current Assets (Detail)

Other Current Assets (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Other Current Assets [Line Items]
Income taxes refundable		$ 855
Prepaid expenses	$ 1,874	647
Deferred income taxes	1,215	1,167
Other current assets	$ 3,089	$ 2,669

Property and Equipment, Net (De

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2015	Dec. 28, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 82,916	$ 73,877
Accumulated depreciation	(24,279)	(20,750)
Accumulated amortization	(12,790)	(10,649)
Property and equipment, net	45,847	42,478
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 620	620
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	40 years
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 15,876	14,837
Furniture, fixtures and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 6,584	5,412
Computer hardware and software | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 22,394	20,145
Leasehold Improvements | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	20 years
Capital leases | Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8,553	8,553
Capital leases | Buildings | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	40 years
Capital leases | Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 18,787	17,466
Capital leases | Equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Capital leases | Automobiles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,904	2,689
Capital leases | Automobiles | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,140	1,140
Construction in Progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 6,058	$ 3,015

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 691	$ 583	$ 1,350	$ 1,127
Property and Equipment
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 3,100	$ 2,700	$ 6,200	$ 5,300

Franchise Rights, Net (Detail)

Franchise Rights, Net (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Finite-Lived Intangible Assets [Line Items]
Franchise rights, net	$ 25,889	$ 26,438
Franchise Rights
Finite-Lived Intangible Assets [Line Items]
Franchise rights, including reacquired franchise rights	29,623	29,623
Less accumulated amortization	(3,734)	(3,185)
Franchise rights, net	$ 25,889	$ 26,438

Franchise Rights, Net - Additio

Franchise Rights, Net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Franchise Rights
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 0.3	$ 0.3	$ 0.5	$ 0.5

Deferred Debt Issuance Costs,54

Deferred Debt Issuance Costs, Net (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Deferred Financing Cost[Line Items]
Deferred debt issuance costs	$ 4,254	$ 4,254
Less accumulated amortization	(1,943)	(1,528)
Deferred debt issuance costs, net	$ 2,311	$ 2,726

Components of Other Noncurrent

Components of Other Noncurrent Assets (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Other Noncurrent Assets [Line Items]
Investments for nonqualified deferred compensation plan	$ 2,587	$ 2,202
Interest rate swap asset	33	338
Deferred initial public offering costs		846
Other noncurrent assets	455	433
Other noncurrent assets	$ 3,075	$ 3,819

Other Noncurrent Assets - Addit

Other Noncurrent Assets - Additional Information (Detail) - Jun. 28, 2015 - USD ($) $ in Millions	Total	Total
Other Noncurrent Assets [Line Items]
Expenses related to IPO including the previously deferred initial public offering costs	$ 1.8	$ 4.5

Accrued Expenses (Detail)

Accrued Expenses (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Accrued Liabilities [Line Items]
Payroll & related	$ 10,294	$ 11,938
Sales and property taxes	4,625	2,268
Gift cards	537	761
Utilities	1,116	1,107
Occupancy	571	490
Interest	814	796
Other	2,663	1,119
Accrued expenses	$ 20,620	$ 18,479

Other Current Liabilities (Deta

Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Other Current Liabilities [Line Items]
Financing obligations under build-to-suit transactions	$ 2,431	$ 937
Income taxes payable	228
Closed store obligation	93	155
Escrow liability	377	563
Other current liabilities	$ 3,129	$ 1,655

Other Noncurrent Liabilities (D

Other Noncurrent Liabilities (Detail) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
Other Non Current Liabilities [Line Items]
Deferred rents	$ 5,071	$ 4,271
Unfavorable lease liability, net	1,964	2,111
Deferred compensation	2,587	2,202
Deferred revenue	590	598
Closed store obligation	407	454
Interest rate swap liability	336	100
Other noncurrent liabilities	35	35
Other noncurrent liabilities	$ 10,990	$ 9,771

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 28, 2015USD ($)	Jun. 29, 2014	Jun. 28, 2015USD ($)	Jun. 29, 2014	Dec. 28, 2014USD ($)
Commitment And Contingencies [Line Items]
Number of franchisees	3		3
Guarantees expiration year			2,018
Carrying value of debt covered by additional guarantee	$ 0.1		$ 0.1		$ 0.2
Related Party Franchisees
Commitment And Contingencies [Line Items]
Number of franchisees	1		1
Royalty Revenue | Franchisee
Commitment And Contingencies [Line Items]
Concentration percentage	44.00%	45.00%	44.00%	45.00%
Accounts Receivable | Franchisee
Commitment And Contingencies [Line Items]
Concentration percentage			43.00%		44.00%

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($)	1 Months Ended	6 Months Ended
	Mar. 31, 2015	Jun. 28, 2015	Dec. 28, 2014
Financing Agreement One | Equipment Lease Arrangement
Operating Leased Assets [Line Items]
Maximum borrowing	$ 5,000,000
Expiration date	Mar. 1, 2016
Lease term	60 months
Percentage added to interest rate	3.00%
Bargain purchase option at the end of the lease	$ 1
Financing Agreement One | Equipment Lease Arrangement | Interest Rate Swap
Operating Leased Assets [Line Items]
Interest rate swap, weighted average life	2 years 7 months 10 days
Financing Agreement One | Equipment Lease Arrangement | Credit facility scheduled to expire on March 1,2015
Operating Leased Assets [Line Items]
Maximum borrowing		$ 5,000,000
Remaining borrowing capacity			$ 2,100,000
Expiration date		Mar. 1, 2015
Financing Agreement Two
Operating Leased Assets [Line Items]
Maximum borrowing	$ 1,800,000
Expiration date	Jan. 31, 2016
Lease term	60 months
Percentage added to interest rate	3.91%
Bargain purchase option at the end of the lease	$ 1
Financing Agreement Two | Interest Rate Swap
Operating Leased Assets [Line Items]
Interest rate swap, weighted average life	32 months
Financing Agreement Two | Credit facility scheduled to expire on December 31, 2014
Operating Leased Assets [Line Items]
Maximum borrowing		$ 2,500,000
Remaining borrowing capacity			$ 1,100,000
Expiration date		Dec. 31, 2014

Computation of Basic and Dilute

Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Earnings Per Share Note [Line Items]
Net income	$ 6,334	$ 6,238	$ 9,772	$ 11,223
Weighted average number of common shares outstanding-basic	20,540		10,270
Weighted average number of common shares assumed from the conversion of Series A Preferred Stock	15,388	35,904	25,646	35,904
Weighted average number of common shares outstanding-diluted	37,491	36,956	37,452	36,964
Net income per share-basic	$ 0.31		$ 0.95
Net income per share-diluted	$ 0.17	$ 0.17	$ 0.26	$ 0.30
Equity Option
Earnings Per Share Note [Line Items]
Weighted average dilutive effect of stock	1,559	1,052	1,530	1,060
Restricted Stock Units
Earnings Per Share Note [Line Items]
Weighted average dilutive effect of stock	4		6

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Income Taxes [Line Items]
Effective income tax rates	41.20%	37.50%	45.30%	37.70%

Stock Compensation Plan - Addit

Stock Compensation Plan - Additional Information (Detail) - USD ($) $ in Millions	May. 13, 2015	Jun. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock units granted		0
Time Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs		$ 2.7
Period of recognition		1 year 7 months 6 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs		$ 0.1
Period of recognition		9 months 18 days
Number of stock units granted	2,631
2011 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for issuance		8,500,000
Number of additional shares available for grant		4,000,000
2011 Equity Incentive Plan | Maximum | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of option		10 years

Stock Option Activity (Detail)

Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 28, 2015	Dec. 28, 2014
Number of shares
Balance as of December 28, 2014	4,459,419
Granted	0
Exercised	(47,123)
Repurchased	0
Forfeited	(6,732)
Expired	0
Balance as of June 28, 2015	4,405,564	4,459,419
Exercisable as of June 28, 2015	2,162,923
Weighted average exercise price
Balance as of December 28, 2014	$ 3.76
Granted	0
Exercised	2.03
Repurchased	0
Forfeited	2.03
Expired	0
Balance as of June 28, 2015	3.79	$ 3.76
Exercisable as of June 28, 2015	$ 2.95
Weighted average remaining contractual term
Option Outstanding Weighted Average Remaining Term	7 years 3 months 18 days	7 years 9 months 18 days
Options Exercisable Weighted Average Remaining Term	7 years 1 month 6 days
Aggregate intrinsic value
Balance as of December 28, 2014	$ 28,344
Balance as of June 28, 2015	86,899	$ 28,344
Exercisable as of June 28, 2015	$ 44,465

Summary of Restricted Stock Uni

Summary of Restricted Stock Unit Activity (Detail) - 6 months ended Jun. 28, 2015 - Restricted Stock and Restricted Stock Units - $ / shares shares in Thousands	Total
Number of Restricted shares
Granted	7,893
Forfeited	0
Vested	0
Ending Balance	7,893
Restricted shares weighted average fair value at grant date
Granted	$ 19
Forfeited	0
Vested	0
Ending Balance	$ 19

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014	Dec. 28, 2014
JZF Properties LLC
Related Party Transaction [Line Items]
Total rent payments to related party	$ 55,000	$ 46,000	$ 100,000	$ 100,000
MAR Real Estate LLC
Related Party Transaction [Line Items]
Total rent payments to related party	43,000	12,000	100,000	100,000
Advent International Corporation
Related Party Transaction [Line Items]
Total expenses incurred to related party	0	7,000	13,000	29,000
Accounts payable due to related party	0		0		$ 0
Panthers Football LLC
Related Party Transaction [Line Items]
Total expenses incurred to related party	0	0	100,000	100,000
Cajun Jacks LLC
Related Party Transaction [Line Items]
Gross accounts receivable due from related party	10,000		10,000		9,000
Royalty revenue from related party	26,000	25,000	49,000	46,000
New Generation Foods LLC
Related Party Transaction [Line Items]
Gross accounts receivable due from related party	49,000		49,000		45,000
Royalty revenue from related party	100,000	100,000	300,000	200,000
Franchise fee revenue from related party	0	0	$ 35,000	0
New Generation Foods LLC | Maximum | From January 29, 2014 through July 31, 2015
Related Party Transaction [Line Items]
Advertising expenditures percentage on sales			1.00%
New Generation Foods LLC | Advertising Expenditures
Related Party Transaction [Line Items]
Total payment made to related party	33,000	30,000	$ 100,000	100,000
Tri Arc Food Systems Inc
Related Party Transaction [Line Items]
Gross accounts receivable due from related party	400,000		400,000		$ 400,000
Royalty revenue from related party	1,300,000	1,200,000	2,500,000	2,200,000
Franchise fee revenue from related party	0	13,000	13,000	25,000
Tri Arc Food Systems Inc | Marketing Costs
Related Party Transaction [Line Items]
Total payment made to related party	$ 18,000	$ 18,000	$ 36,000	$ 36,000

Uncategorized Items - boja-2015

Label	Element	Value
Gain (Loss) on Disposition of Property Plant Equipment	us-gaap_GainLossOnSaleOfPropertyPlantEquipment	$ (14)
Gain (Loss) on Disposition of Property Plant Equipment	us-gaap_GainLossOnSaleOfPropertyPlantEquipment	$ 3