Wingstop (WING) 10-Q 2 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 24, 2016	Nov. 02, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Wingstop Inc.
Entity Central Index Key	1,636,222
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 24, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		28,747,392
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 24, 2016	Dec. 26, 2015
Current assets
Cash and cash equivalents	$ 3,828	$ 10,690
Accounts receivable, net	2,529	3,404
Prepaid expenses and other current assets	2,899	1,752
Advertising fund assets, restricted	2,114	3,774
Total current assets	11,370	19,620
Property and equipment, net	4,871	4,593
Goodwill	45,128	45,128
Trademarks	32,700	32,700
Other non-current assets	991	313
Total assets	112,339	120,650
Current liabilities
Accounts payable	1,693	1,360
Other current liabilities	8,553	7,436
Long-term Debt, Current Maturities	3,500	0
Advertising fund liabilities, restricted	2,114	3,774
Total current liabilities	15,860	12,570
Long-term debt, net	153,933	95,008
Deferred revenues, net of current	7,272	7,623
Deferred income tax liabilities, net	12,950	13,018
Other non-current liabilities	2,273	2,104
Total liabilities	192,288	130,323
Commitments and contingencies (see note 6)
Stockholders' deficit
Common stock, $0.01 par value; 100,000,000 shares authorized; 28,731,042 and 28,581,182 shares issued and outstanding as of September 24, 2016 and December 26, 2015, respectively	287	286
Additional paid-in-capital	185	36,870
Accumulated deficit	(80,421)	(46,829)
Total stockholders' deficit	(79,949)	(9,673)
Total liabilities and stockholders' deficit	112,339	120,650
Customer Relationships [Member]
Customer relationships, net	$ 17,279	$ 18,296

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 24, 2016	Dec. 26, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	28,731,042	28,581,182
Common stock, shares outstanding	28,731,042	28,581,182

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Revenue:
Royalty revenue and franchise fees		$ 13,660	$ 11,587	$ 41,463	$ 34,144
Company-owned restaurant sales		8,150	7,547	25,144	23,248
Total revenue		21,810	19,134	66,607	57,392
Costs and expenses:
Cost of sales	[1]	6,091	5,328	18,352	16,580
Selling, general and administrative		8,893	7,317	25,120	25,658
Depreciation and amortization		746	636	2,187	1,944
Total costs and expenses		15,730	13,281	45,659	44,182
Operating income		6,080	5,853	20,948	13,210
Interest expense, net		1,390	800	2,858	2,764
Other expense, net		216	96	254	382
Income before income tax expense		4,474	4,957	17,836	10,064
Income tax expense		1,721	1,784	6,714	3,753
Net income		$ 2,753	$ 3,173	$ 11,122	$ 6,311
Earnings per share
Basic (in usd per share)		$ 0.10	$ 0.11	$ 0.39	$ 0.23
Diluted (in usd per share)		$ 0.09	$ 0.11	$ 0.38	$ 0.23
Weighted average shares outstanding
Basic (in shares)		28,725	28,581	28,652	27,135
Diluted (in shares)		29,014	28,891	28,991	27,438
Dividends per share (in usd per share)		$ 2.90	$ 0	$ 2.90	$ 1.83
[1]	exclusive of depreciation and amortization, shown separately

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015
Operating activities
Net income	$ 11,122	$ 6,311
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	2,187	1,944
Excess tax benefit of stock-based compensation	(1,019)	(757)
Deferred income taxes	(68)	(660)
Stock-based compensation expense	392	492
Amortization of debt issuance costs	357	299
Changes in operating assets and liabilities:
Accounts receivable	875	(4)
Prepaid expenses and other assets	(98)	(991)
Accounts payable and other current liabilities	961	834
Deferred revenue	201	203
Other non-current liabilities (attributable to deferred rent and lease incentives)	169	210
Cash provided by operating activities	15,079	7,881
Investing activities
Purchases of property and equipment	(1,471)	(1,329)
Cash used in investing activities	(1,471)	(1,329)
Financing activities
Proceeds from issuance of common stock, net of expenses	0	34,651
Proceeds from exercise of stock options	459	478
Borrowings of long-term debt	165,000	40,000
Principal payments on long-term debt	(102,500)	(38,218)
Payment of deferred financing costs	(1,180)	(227)
Excess tax benefit of stock-based compensation	1,019	757
Dividends paid	(83,268)	(47,999)
Cash used in financing activities	(20,470)	(10,558)
Net change in cash and cash equivalents	(6,862)	(4,006)
Cash and cash equivalents at beginning of period	10,690	9,723
Cash and cash equivalents at end of period	$ 3,828	$ 5,717

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 24, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Basis of Presentation Wingstop Inc. (“Wingstop” or the “Company”) is in the business of franchising and operating Wingstop restaurants. As of September 24, 2016 , 862 franchised restaurants were in operation domestically and 67 international franchised restaurants were in operation across five countries. As of September 24, 2016 , the Company owned and operated 20 restaurants. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Consequently, financial information and disclosures normally included in financial statements prepared annually in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted. Balance sheet amounts are as of September 24, 2016 and December 26, 2015 and operating results are for the thirteen and thirty-nine weeks ended September 24, 2016 and September 26, 2015 . In the Company’s opinion, all necessary adjustments have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 26, 2015 . The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2016 and 2015 have 53 weeks and 52 weeks, respectively. Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . The amendments in ASU 2014-08 change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The Company adopted the amendment as of the first day of fiscal year 2016, and the adoption did not have any impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual and interim periods beginning after December 15, 2017, which will require us to adopt these provisions in the first quarter of fiscal 2018. This update permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect this guidance will have on our consolidated financial statements and related disclosures and has not yet selected a transition method. In April 2015, the FASB issued ASU No 2015-03, Simplifying the Presentation of Debt Issuance Costs . This update changes the presentation of debt issuance costs in the balance sheet. ASU 2015-03 requires debt issuance costs related to a recognized debt obligation to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability rather than being presented as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . This ASU clarified guidance in ASC 2015-03 stating that the SEC staff would not object to a company presenting debt issuance costs related to a line-of-credit arrangement on the balance sheet as a deferred asset, regardless of whether there were any outstanding borrowings at period-end. This update is effective for annual and interim periods beginning after December 15, 2015. The Company adopted this pronouncement during the first quarter of 2016 and applied the update on a retrospective basis, wherein the balance sheet of each period presented was adjusted to reflect the effects of applying the new guidance. The Company reclassed deferred financing costs of $492,000 for the period ended December 26, 2015 from other non-current assets to long-term debt on the Consolidated Balance Sheets. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of 2019. Early adoption of ASU 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) . This update requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement, including recognition of excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Currently, GAAP requires excess tax benefits to be recognized in additional paid-in capital; tax deficiencies are recognized either as an offset to accumulated excess tax benefits, if any, or in the income statement, and excess tax benefits are not recognized until the deduction reduces taxes payable. ASU 2016-09 further requires that excess tax benefits be classified along with other income tax cash flows as an operating activity on the Statement of Cash Flows. Currently, they are classified as financing activities. The update also allows entities to make an accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2017. Early application is permitted. The Company is evaluating the effect this guidance will have on our consolidated financial statements and related disclosures and has not yet selected a transition method.

Earnings per Share (Notes)

Earnings per Share (Notes)	9 Months Ended
	Sep. 24, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted net income per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and restricted share awards, determined using the treasury stock method. For the thirteen weeks ended September 24, 2016 we had approximately 5,000 stock options outstanding which were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. For the thirteen weeks ended September 26, 2015 all stock options had a dilutive effect; therefore none were excluded from the calculation of diluted earnings per share. For the thirty-nine weeks ended September 24, 2016 and September 26, 2015 , respectively, we had approximately 5,000 and 8,000 stock options outstanding which were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Weeks Ended Thirty-Nine Weeks Ended September 24, September 26, September 24, September 26, Basic weighted average shares outstanding 28,725 28,581 28,652 27,135 Dilutive stock options 289 310 339 303 Diluted weighted average shares outstanding 29,014 28,891 28,991 27,438

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 24, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Assets and liabilities are classified using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows: Level 1 — Unadjusted quoted prices for identical instruments traded in active markets. Level 2 — Observable market-based inputs or unobservable inputs corroborated by market data. Level 3 — Unobservable inputs reflecting management’s estimates and assumptions. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature. Fair value of debt is determined on a non-recurring basis, which results are summarized as follows (in thousands): Fair Value Hierarchy September 24, 2016 December 26, 2015 Carrying Value Fair Value Carrying Value Fair Value Senior Secured Credit Facility: Term loan facility (1) Level 2 $ 70,000 $ 70,000 $ 95,500 $ 95,500 Revolving credit facility (1) Level 2 $ 88,000 $ 88,000 $ — $ — (1) The fair value of long-term debt was estimated using available market information. The Company also measures certain non-financial assets at fair value on a non-recurring basis, primarily long-lived assets, intangible assets and goodwill, in connection with our periodic evaluations of such assets for potential impairment.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 24, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense and the effective tax rate were $1.7 million and 38.5% , respectively, for the thirteen weeks ended September 24, 2016 , and $1.8 million and 36.0% , respectively, for the thirteen weeks ended September 26, 2015 . Income tax expense and the effective tax rate were $6.7 million and 37.6% , respectively, for the thirty-nine weeks ended September 24, 2016 , and $3.8 million and 37.3% , respectively, for the thirty-nine weeks ended September 26, 2015 .

Debt Obligations

Debt Obligations	9 Months Ended
	Sep. 24, 2016
Debt Disclosure [Abstract]
Debt Obligations	Debt Obligations On June 30, 2016, the Company entered into a $180.0 million new senior secured credit facility (the “Credit Facility”), which replaced the Company’s second amended and restated credit facility dated March 18, 2015. The Credit Facility includes a term loan facility in an aggregate amount of $70.0 million and a revolving credit facility up to an aggregate amount of $110.0 million . The Company used the proceeds from the Credit Facility and cash on hand to refinance $85.5 million of indebtedness under the Company’s March 2015 debt facility and to pay a dividend of $83.3 million to its shareholders. Borrowings under the term loan facility bear interest, payable quarterly, at our option, at the base rate plus a margin ( 1.00% to 2.00% , dependent on the Company’s reported leverage ratio) or LIBOR plus a margin ( 2.00% to 3.00% , dependent on the Company’s reported leverage ratio). The Credit Facility matures in June 2021 . As of September 24, 2016, the term loan facility had an outstanding balance of $70.0 million that bears interest at 3.38% . The revolving credit facility bears interest, payable quarterly, at our option, at the base rate plus a margin or LIBOR plus a margin, with all unpaid amounts due at maturity in June 2021 . Any unused portion of the revolving credit facility bears a commitment fee ( 0.375% to 0.50% , dependent on the Company’s reported leverage ratio). As of September 24, 2016 , the revolving credit facility had an outstanding balance of $88.0 million , which bears interest at 3.41% . In conjunction with the Credit Facility, the Company evaluated the refinancing of the March 2015 second amended and restated credit facility and determined $90.0 million was accounted for as a debt modification and $90.0 million was new debt issuance. The Company incurred $1.3 million in financing costs of which $0.1 million was expensed and $1.2 million was capitalized and is being amortized using the effective interest rate method. Previously capitalized financing costs of $0.2 million were expensed as a result of the refinancing during the current period. The Credit Facility is secured by substantially all assets of the Company and requires compliance with certain financial and non-financial covenants. As of September 24, 2016 , the Company was in compliance with all financial covenants. As of September 24, 2016 , the scheduled principal payments on debt were as follows (in thousands): Remainder of fiscal year 2016 $ 1,750 Fiscal year 2017 2,625 Fiscal year 2018 3,500 Fiscal year 2019 3,500 Fiscal year 2020 3,500 Fiscal year 2021 143,125 Total $ 158,000

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 24, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Wingstop Restaurants, Inc. (“WRI”) leases certain office and retail space and equipment under non-cancelable operating leases with terms expiring at various dates through July 2031 . A schedule of future minimum rental payments required under our operating leases, excluding contingent rent, that have initial or remaining non-cancelable lease terms in excess of one year, as of September 24, 2016 , is as follows (in thousands): Remainder of fiscal year 2016 $ 417 Fiscal year 2017 1,697 Fiscal year 2018 1,510 Fiscal year 2019 1,276 Fiscal year 2020 1,150 Fiscal year 2021 994 Thereafter 4,379 Total $ 11,423 Rent expense under cancelable and non-cancelable leases was $479,000 and $531,000 for the thirteen weeks ended September 24, 2016 and September 26, 2015 , respectively, and $1.4 million and $1.5 million for the thirty-nine weeks ended September 24, 2016 and September 26, 2015 , respectively. The Company is subject to legal proceedings, claims and liabilities, such as employment-related claims and premises-liability cases, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to those actions should not have a material adverse impact on financial position, results of operations or cash flows. Many of the food products the Company purchases are subject to changes in the price and availability of food commodities, including chicken. The Company works with its suppliers and uses a mix of forward pricing protocols for certain items under which we agree with our supplier on fixed prices for deliveries at some time in the future, fixed pricing protocols under which we agree on a fixed price with our supplier for the duration of that protocol, and formula pricing protocols under which the prices we pay are based on a specified formula related to the prices of the goods, such as spot prices. The Company’s use of any forward pricing arrangements varies substantially from time to time and these arrangements tend to cover relatively short periods (i.e., typically twelve months or less). Such contracts are used in the normal purchases of our food products and not for speculative purposes, and as such are not required to be evaluated as derivative instruments. The Company does not enter into futures contracts or other derivative instruments.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 24, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The following table summarizes stock option activity (in thousands, except per share data): Stock Options Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding - December 26, 2015 1,177 $ 4.66 $ 21,059 7.7 Granted 36 $ 24.34 Exercised (150 ) $ 3.06 Canceled (190 ) $ 5.87 Outstanding - September 24, 2016 873 $ 5.10 $ 21,432 7.0 The total grant-date fair value of stock options vested during the thirty-nine weeks ended September 24, 2016 was $774,000 . The total intrinsic value of stock options exercised during the thirty-nine weeks ended September 24, 2016 was $3.3 million . The Company granted 11,724 shares of restricted stock awards during the thirty-nine weeks ended September 24, 2016 with a weighted average grant date fair value of $25.59 . The fair value of the non-vested restricted stock awards is based on the closing price on the date of grant. All of the outstanding restricted stock awards are non-vested and will be recognized over a weighted average period of approximately 3.2 years . Stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant). The Company recognized $392,000 in stock compensation expense for the thirty-nine weeks ended September 24, 2016 , with a corresponding increase to additional paid-in-capital. As of September 24, 2016 , there was $2.9 million of total unrecognized stock compensation expense related to non-vested stock options and restricted stock awards, which will be recognized over a weighted average period of approximately 2.2 years . Stock compensation expense is included in SG&A in the Consolidated Statement of Operations.

Business Segments

Business Segments	9 Months Ended
	Sep. 24, 2016
Segment Reporting [Abstract]
Business Segments	Business Segments The Franchise segment consists of domestic and international franchise restaurants, which represent the majority of our system-wide restaurants. As of September 24, 2016 , the franchise operations segment consisted of 929 restaurants operated by Wingstop franchisees in the United States and five countries outside of the United States as compared to 788 franchised restaurants in operation as of September 26, 2015 . Franchise operations revenue consists primarily of franchise royalty revenue, sales of franchise and development fees and international territory fees. As of September 24, 2016 , the Company segment consisted of 20 company-owned restaurants, located in the United States, as compared to 19 company-owned restaurants as of September 26, 2015 . Company restaurant sales are for food and beverage sales at company-owned restaurants. Company restaurant expenses are operating expenses at company-owned restaurants and include food, beverage, labor, benefits, utilities, rent and other operating costs. Information on segments and a reconciliation to income before taxes are as follows (in thousands): Thirteen Weeks Ended Thirty-Nine Weeks Ended September 24, September 26, September 24, September 26, Revenue: Franchise segment $ 13,660 $ 11,587 $ 41,463 $ 34,144 Company segment 8,150 7,547 25,144 23,248 Total segment revenue $ 21,810 $ 19,134 $ 66,607 $ 57,392 Segment Profit: Franchise segment $ 6,199 $ 4,446 $ 18,794 $ 14,522 Company segment 1,236 1,407 4,211 4,236 Total segment profit 7,435 5,853 23,005 18,758 Corporate and other (1) 1,355 — 2,057 5,548 Interest expense, net 1,390 800 2,858 2,764 Other (income) expense, net 216 96 254 382 Income before taxes $ 4,474 $ 4,957 $ 17,836 $ 10,064 (1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of management fees, and expenses associated with the refinancings of our credit agreement and our public offerings.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 24, 2016
Accounting Policies [Abstract]
Fiscal Year End	The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2016 and 2015 have 53 weeks and 52 weeks, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . The amendments in ASU 2014-08 change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The Company adopted the amendment as of the first day of fiscal year 2016, and the adoption did not have any impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual and interim periods beginning after December 15, 2017, which will require us to adopt these provisions in the first quarter of fiscal 2018. This update permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect this guidance will have on our consolidated financial statements and related disclosures and has not yet selected a transition method. In April 2015, the FASB issued ASU No 2015-03, Simplifying the Presentation of Debt Issuance Costs . This update changes the presentation of debt issuance costs in the balance sheet. ASU 2015-03 requires debt issuance costs related to a recognized debt obligation to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability rather than being presented as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . This ASU clarified guidance in ASC 2015-03 stating that the SEC staff would not object to a company presenting debt issuance costs related to a line-of-credit arrangement on the balance sheet as a deferred asset, regardless of whether there were any outstanding borrowings at period-end. This update is effective for annual and interim periods beginning after December 15, 2015. The Company adopted this pronouncement during the first quarter of 2016 and applied the update on a retrospective basis, wherein the balance sheet of each period presented was adjusted to reflect the effects of applying the new guidance. The Company reclassed deferred financing costs of $492,000 for the period ended December 26, 2015 from other non-current assets to long-term debt on the Consolidated Balance Sheets. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of 2019. Early adoption of ASU 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) . This update requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement, including recognition of excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Currently, GAAP requires excess tax benefits to be recognized in additional paid-in capital; tax deficiencies are recognized either as an offset to accumulated excess tax benefits, if any, or in the income statement, and excess tax benefits are not recognized until the deduction reduces taxes payable. ASU 2016-09 further requires that excess tax benefits be classified along with other income tax cash flows as an operating activity on the Statement of Cash Flows. Currently, they are classified as financing activities. The update also allows entities to make an accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2017. Early application is permitted. The Company is evaluating the effect this guidance will have on our consolidated financial statements and related disclosures and has not yet selected a transition method.

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 24, 2016
Earnings Per Share [Abstract]
Schedule of Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding	Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Weeks Ended Thirty-Nine Weeks Ended September 24, September 26, September 24, September 26, Basic weighted average shares outstanding 28,725 28,581 28,652 27,135 Dilutive stock options 289 310 339 303 Diluted weighted average shares outstanding 29,014 28,891 28,991 27,438

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 24, 2016
Fair Value Disclosures [Abstract]
Schedule of Fair Value Measurements, Nonrecurring	Fair value of debt is determined on a non-recurring basis, which results are summarized as follows (in thousands): Fair Value Hierarchy September 24, 2016 December 26, 2015 Carrying Value Fair Value Carrying Value Fair Value Senior Secured Credit Facility: Term loan facility (1) Level 2 $ 70,000 $ 70,000 $ 95,500 $ 95,500 Revolving credit facility (1) Level 2 $ 88,000 $ 88,000 $ — $ — (1) The fair value of long-term debt was estimated using

Debt Obligations Debt Obligatio

Debt Obligations Debt Obligations - Schedule of Maturities (Tables)	9 Months Ended
	Sep. 24, 2016
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt [Table Text Block]	As of September 24, 2016 , the scheduled principal payments on debt were as follows (in thousands): Remainder of fiscal year 2016 $ 1,750 Fiscal year 2017 2,625 Fiscal year 2018 3,500 Fiscal year 2019 3,500 Fiscal year 2020 3,500 Fiscal year 2021 143,125 Total $ 158,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 24, 2016
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]	A schedule of future minimum rental payments required under our operating leases, excluding contingent rent, that have initial or remaining non-cancelable lease terms in excess of one year, as of September 24, 2016 , is as follows (in thousands): Remainder of fiscal year 2016 $ 417 Fiscal year 2017 1,697 Fiscal year 2018 1,510 Fiscal year 2019 1,276 Fiscal year 2020 1,150 Fiscal year 2021 994 Thereafter 4,379 Total $ 11,423

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 24, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Activity	The following table summarizes stock option activity (in thousands, except per share data): Stock Options Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Term Outstanding - December 26, 2015 1,177 $ 4.66 $ 21,059 7.7 Granted 36 $ 24.34 Exercised (150 ) $ 3.06 Canceled (190 ) $ 5.87 Outstanding - September 24, 2016 873 $ 5.10 $ 21,432 7.0

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 24, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Information on segments and a reconciliation to income before taxes are as follows (in thousands): Thirteen Weeks Ended Thirty-Nine Weeks Ended September 24, September 26, September 24, September 26, Revenue: Franchise segment $ 13,660 $ 11,587 $ 41,463 $ 34,144 Company segment 8,150 7,547 25,144 23,248 Total segment revenue $ 21,810 $ 19,134 $ 66,607 $ 57,392 Segment Profit: Franchise segment $ 6,199 $ 4,446 $ 18,794 $ 14,522 Company segment 1,236 1,407 4,211 4,236 Total segment profit 7,435 5,853 23,005 18,758 Corporate and other (1) 1,355 — 2,057 5,548 Interest expense, net 1,390 800 2,858 2,764 Other (income) expense, net 216 96 254 382 Income before taxes $ 4,474 $ 4,957 $ 17,836 $ 10,064 (1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of management fees, and expenses associated with the refinancings of our credit agreement and our public offerings.

Basis of Presentation - Overvie

Basis of Presentation - Overview (Details) $ in Thousands	3 Months Ended
	Dec. 26, 2015USD ($)	Sep. 24, 2016restaurantcountry	Sep. 26, 2015restaurant
Franchised Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants		929	788
Franchised Units [Member] | UNITED STATES [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants		862
Franchised Units [Member] | Non-US [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants		67
Number of Countries in which Entity Operates | country		5
Entity Operated Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants		20	19
Accounting Standards Update 2015-03 [Member]
Franchisor Disclosure [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $	$ (492)

Earnings per Share (Details)

Earnings per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic weighted average shares outstanding	28,725,000	28,581,000	28,652,000	27,135,000
Dilutive stock options	289,000	310,000	339,000	303,000
Diluted weighted average shares outstanding	29,014,000	28,891,000	28,991,000	27,438,000
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	5,000	0	5,000	8,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Nonrecurring - Level 2 - USD ($) $ in Thousands	Sep. 24, 2016	Dec. 26, 2015
Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Secured Term Loan Facility	$ 70,000	$ 95,500
Senior Secured Revolving Credit Facility	88,000	0
Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Secured Term Loan Facility	70,000	95,500
Senior Secured Revolving Credit Facility	$ 88,000	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,721	$ 1,784	$ 6,714	$ 3,753
Effective income tax rate	38.50%	36.00%	37.60%	37.30%

Debt Obligations - Senior Secur

Debt Obligations - Senior Secured Credit Facility (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 24, 2016	Mar. 28, 2015
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 180
Dividends, Cash	83.3
Debt Issuance, Accounted for as a Modification	90
Debt Issuance, Accounted for as New Debt	90
Debt Issuance Costs, Gross	1.3
Debt Related Commitment Fees and Debt Issuance Costs	0.1
Debt Issuance Costs, Gross	1.2
Write off of Deferred Debt Issuance Cost	0.2
Secured Debt [Member]
Debt Instrument [Line Items]
Long-term Line of Credit	$ 70	$ 85.5
Debt instrument, interest rate, end of period	3.38%
Secured Debt [Member] | Base Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Secured Debt [Member] | Base Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.00%
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.00%
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.00%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 110
Long-term Line of Credit	$ 88
Debt instrument, interest rate, end of period	3.41%
Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.375%
Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.50%

Debt Obligations Debt Obligat26

Debt Obligations Debt Obligations - Schedule of Maturities (Details) $ in Thousands	Sep. 24, 2016USD ($)
Debt Disclosure [Abstract]
Remainder of fiscal year 2016	$ 1,750
Fiscal year 2017	2,625
Fiscal year 2018	3,500
Fiscal year 2019	3,500
Fiscal year 2020	3,500
Fiscal year 2021	143,125
Total	$ 158,000

Commitments and Contingencies27

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Commitments and Contingencies Disclosure [Abstract]
Remainder of fiscal year 2016	$ 417		$ 417
Fiscal year 2017	1,697		1,697
Fiscal year 2018	1,510		1,510
Fiscal year 2019	1,276		1,276
Fiscal year 2020	1,150		1,150
Fiscal year 2021	994		994
Thereafter	4,379		4,379
Total	11,423		11,423
Rent expense	$ 479	$ 531	$ 1,400	$ 1,500

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Plan (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 24, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value of stock options, vested	$ 774
Intrinsic value of stock options	3,300
Stock-based compensation expense, unrecognized	$ 2,900
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares	11,724
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 25.59
Stock-based compensation expense, recognition period	3 years 2 months 12 days
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense, recognition period	2 years 2 months 12 days
Additional Paid-in Capital [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 392

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Sep. 24, 2016	Dec. 26, 2015	Sep. 24, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Stock options outstanding (in shares)			1,177
Stock options granted (in shares)			36
Stock options exercised			(150)
Stock options forfeited (in shares)			(190)
Stock options outstanding (in shares)	873	1,177	873
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Stock options outstanding, weighted average exercise price (in usd per share)			$ 4.66
Stock options grated, weighted average exercise price (in usd per share)			24.34
Stock options exercised, weighted average exercise price (in usd per share)			3.06
Stock options forfeited, weighted average exercise price (in usd per share)			5.87
Stock options outstanding, weighted average exercise price (in usd per share)	$ 5.10	$ 4.66	$ 5.10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Stock options outstanding, aggregate intrinsic value			$ 21,059
Stock options outstanding, aggregate intrinsic value	$ 21,432	$ 21,059	$ 21,432
Stock options outstanding, weighted average remaining term	7 years	7 years 8 months 12 days

Business Segments Business Segm

Business Segments Business Segments - Restaurant Counts (Details)	Sep. 24, 2016restaurantcountry	Sep. 26, 2015restaurant
Franchised Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	929	788
Entity Operated Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	20	19
Non-US [Member] | Franchised Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	67
Number of Countries in which Entity Operates | country	5

Business Segments (Details)

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2016	Sep. 26, 2015	Sep. 24, 2016	Sep. 26, 2015
Segment Reporting Information [Line Items]
Franchise segment	$ 13,660	$ 11,587	$ 41,463	$ 34,144
Company segment	8,150	7,547	25,144	23,248
Total revenue	21,810	19,134	66,607	57,392
Operating income	(6,080)	(5,853)	(20,948)	(13,210)
Interest expense, net	1,390	800	2,858	2,764
Other (income) expense, net	216	96	254	382
Income before taxes	4,474	4,957	17,836	10,064
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	21,810	19,134	66,607	57,392
Operating income	(7,435)	(5,853)	(23,005)	(18,758)
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating income	1,355	0	2,057	5,548
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Interest expense, net	1,390	800	2,858	2,764
Other (income) expense, net	216	96	254	382
Franchise Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Franchise segment	13,660	11,587	41,463	34,144
Operating income	(6,199)	(4,446)	(18,794)	(14,522)
Company Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Company segment	8,150	7,547	25,144	23,248
Operating income	$ (1,236)	$ (1,407)	$ (4,211)	$ (4,236)