Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 03, 2017 | Jun. 25, 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 | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 28,864,620 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 424.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Current assets | ||
Cash and cash equivalents | $ 3,750 | $ 10,690 |
Accounts receivable, net | 3,199 | 3,404 |
Prepaid expenses and other current assets | 1,634 | 1,752 |
Advertising fund assets, restricted | 2,533 | 3,774 |
Total current assets | 11,116 | 19,620 |
Property and equipment, net | 4,999 | 4,593 |
Goodwill | 45,128 | 45,128 |
Trademarks | 32,700 | 32,700 |
Customer relationships, net | 16,914 | 18,296 |
Other non-current assets | 943 | 313 |
Total assets | 111,800 | 120,650 |
Current liabilities | ||
Accounts payable | 1,458 | 1,252 |
Other current liabilities | 9,241 | 7,544 |
Current portion of debt | 3,500 | 0 |
Advertising fund liabilities, restricted | 2,533 | 3,774 |
Total current liabilities | 16,732 | 12,570 |
Long-term debt, net | 147,217 | 95,008 |
Deferred revenues, net of current | 7,868 | 7,623 |
Deferred income tax liabilities, net | 12,304 | 13,018 |
Other non-current liabilities | 2,307 | 2,104 |
Total liabilities | 186,428 | 130,323 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Common stock, $0.01 par value; 100,000,000 shares authorized; 28,747,392 and 28,581,182 shares issued and outstanding as of December 31, 2016 and December 26, 2015, respectively | 287 | 286 |
Additional paid-in-capital | 1,194 | 36,870 |
Accumulated deficit | (76,109) | (46,829) |
Total stockholders' deficit | (74,628) | (9,673) |
Total liabilities and stockholders' deficit | 111,800 | 120,650 |
Customer relationships | ||
Current assets | ||
Customer relationships, net | $ 16,914 | $ 18,296 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 28,747,392 | 28,581,182 |
Common Stock, Shares, Outstanding | 28,747,392 | 28,581,182 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | ||
Revenue: | ||||
Royalty revenue and franchise fees | $ 57,071 | $ 46,688 | $ 38,032 | |
Company-owned restaurant sales | 34,288 | 31,281 | 29,417 | |
Total revenue | 91,359 | 77,969 | 67,449 | |
Costs and expenses: | ||||
Cost of sales | 25,308 | 22,219 | 20,473 | [1] |
Selling, general and administrative | 33,840 | 33,350 | 26,006 | |
Depreciation and amortization | 3,008 | 2,682 | 2,904 | |
Total costs and expenses | 62,156 | 58,251 | 49,383 | |
Operating income | 29,203 | 19,718 | 18,066 | |
Interest expense, net | 4,396 | 3,477 | 3,684 | |
Other expense, net | 254 | 396 | 84 | |
Income before income tax expense | 24,553 | 15,845 | 14,298 | |
Income tax expense | 9,119 | 5,739 | 5,312 | |
Net income | $ 15,434 | $ 10,106 | $ 8,986 | |
Earnings per share | ||||
Basic (in usd per share) | $ 0.54 | $ 0.37 | $ 0.35 | |
Diluted (in usd per share) | $ 0.53 | $ 0.36 | $ 0.34 | |
Weighted average shares outstanding | ||||
Basic (in shares) | 28,637 | 27,497 | 25,846 | |
Diluted (in shares) | 28,983 | 27,816 | 26,204 | |
Dividends per share (in usd per share) | $ 2.90 | $ 1.83 | $ 0 | |
[1] | exclusive of depreciation and amortization, shown separately |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance (in shares) at Dec. 28, 2013 | 25,607,302 | |||
Balance at Dec. 28, 2013 | $ (20,262) | $ 256 | $ 36 | $ (20,554) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 8,986 | 8,986 | ||
Exercise of stock options (in shares) | 494,453 | |||
Exercise of stock options | 573 | $ 5 | 568 | |
Stock-based compensation expense | 960 | 960 | ||
Excess tax benefit of stock-based compensation | 749 | 749 | ||
Balance (in shares) at Dec. 27, 2014 | 26,101,755 | |||
Balance at Dec. 27, 2014 | (8,994) | $ 261 | 2,313 | (11,568) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 10,106 | 10,106 | ||
Exercise of stock options (in shares) | 329,427 | |||
Exercise of stock options | 478 | $ 4 | 474 | |
Stock-based compensation expense | 1,155 | 1,155 | ||
Excess tax benefit of stock-based compensation | 593 | 593 | ||
Dividends paid | (47,999) | (2,632) | (45,367) | |
Issuance of common stock in connection with the IPO, net of transaction expenses (in shares) | 2,150,000 | |||
Issuance of common stock in connection with the IPO, net of transaction expenses | $ 34,988 | $ 21 | 34,967 | |
Balance (in shares) at Dec. 26, 2015 | 28,581,182 | 28,581,182 | ||
Balance at Dec. 26, 2015 | $ (9,673) | $ 286 | 36,870 | (46,829) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 15,434 | 15,434 | ||
Exercise of stock options (in shares) | 166,000 | 166,210 | ||
Exercise of stock options | $ 485 | $ 1 | 484 | |
Stock-based compensation expense | 1,231 | 1,231 | ||
Excess tax benefit of stock-based compensation | 1,163 | 1,163 | ||
Dividends paid | $ (83,268) | (38,554) | (44,714) | |
Balance (in shares) at Dec. 31, 2016 | 28,747,392 | 28,747,392 | ||
Balance at Dec. 31, 2016 | $ (74,628) | $ 287 | $ 1,194 | $ (76,109) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Operating activities | |||
Net income | $ 15,434 | $ 10,106 | $ 8,986 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 3,008 | 2,682 | 2,904 |
Excess tax benefit of stock-based compensation | (1,163) | (813) | (749) |
Deferred income taxes | (714) | (1,046) | (1,530) |
Stock-based compensation expense | 1,231 | 1,155 | 960 |
Amortization of Debt Issuance Costs and Discounts | 437 | 330 | 185 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 205 | (1,004) | (616) |
Prepaid expenses and other assets | (171) | (196) | (901) |
Accounts payable and other current liabilities | 3,648 | 1,169 | 2,681 |
Deferred revenue | 48 | 450 | 2,128 |
Other non-current liabilities (attributable to deferred rent and lease incentives) | 203 | 214 | 322 |
Cash provided by operating activities | 22,166 | 13,047 | 14,370 |
Investing activities | |||
Purchases of property and equipment | (2,056) | (1,915) | (1,510) |
Proceeds from sales of assets | 0 | 0 | 1,147 |
Cash used in investing activities | (2,056) | (1,915) | (363) |
Financing activities | |||
Proceeds from issuance of common stock, net of expenses | 0 | 34,988 | 0 |
Proceeds from exercise of stock options | 485 | 478 | 573 |
Borrowings of long-term debt | 165,000 | 40,000 | 0 |
Repayments of long-term debt | (109,250) | (38,218) | (8,779) |
Payment of deferred financing costs | (1,180) | (227) | 0 |
Excess tax benefit of stock-based compensation | 1,163 | 813 | 749 |
Dividends paid | (83,268) | (47,999) | 0 |
Cash used in financing activities | (27,050) | (10,165) | (7,457) |
Net change in cash and cash equivalents | (6,940) | 967 | 6,550 |
Cash and cash equivalents at beginning of period | 10,690 | 9,723 | 3,173 |
Cash and cash equivalents at end of period | 3,750 | 10,690 | 9,723 |
Supplemental information: | |||
Cash paid for interest | 4,775 | 3,409 | 3,406 |
Cash paid for taxes | $ 7,230 | $ 5,362 | $ 6,158 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Overview Wingstop Inc. was incorporated in Delaware on March 18, 2015 (“Wingstop” or the “Company”). Wing Stop Holding Corporation was merged with and into Wingstop Inc. pursuant to the reorganization that occurred on May 18, 2015 as described below. Wing Stop Holding Corporation was originally formed on March 16, 2010 to purchase 100% of the equity interests of Wingstop Holdings, Inc. (“WHI”). WHI owns 100% of the common stock of Wingstop Restaurants Inc. (“WRI”). Wingstop, through its primary operating subsidiary, WRI, collectively referred to as the “Company”, is in the business of franchising and operating Wingstop restaurants. As of December 31, 2016 , 901 franchised restaurants were in operation domestically and 76 international franchised restaurants were in operation across five countries. As of December 31, 2016 , WRI owned and operated 21 restaurants. On May 28, 2015, Wing Stop Holding Corporation merged with and into Wingstop Inc., with Wingstop Inc. as the surviving corporation in the merger. Pursuant to the merger, each holder of Wing Stop Holding Corporation common stock received 0.545 shares of common stock of Wingstop Inc. for each one share of Wing Stop Holding Corporation. Additionally, each option to purchase common stock of Wing Stop Holding Corporation was assumed by Wingstop Inc. and converted into an option to purchase 0.545 shares of common stock of Wingstop Inc. for each one share of Wing Stop Holding Corporation with the remaining terms of each such option remaining unchanged, except as was necessary to reflect the reorganization. All references to shares in the financial statements and the notes to the financial statements, including but not limited to the number of shares and per share amounts, unless otherwise noted, have been adjusted to reflect the reorganization retrospectively. Summary of Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of Wingstop Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (b) Fiscal Year End The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal year 2016 consisted of 53 weeks, and fiscal years 2015 and 2014 each consisted of 52 weeks. (c) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions, primarily related to long-lived asset (valuation), indefinite and finite lived intangible asset valuation, income taxes, leases, stock-based compensation, contingencies and common stock equity valuations. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the period. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates. (d) Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income is the same as net income for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying consolidated financial statements. (e) Cash and Cash Equivalents Cash and cash equivalents are comprised of credit card receivables and all highly liquid investments with an initial maturity of three months or less when purchased. Cash and cash equivalents are carried at cost which approximates fair value. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits; however, the Company has not experienced any losses in these accounts. The Company believes it is not exposed to any significant credit risk. (f) Accounts Receivable Accounts receivable, net of allowance for doubtful accounts, consists primarily of accrued royalty fee receivables, collected weekly in arrears, and vendor rebates. Management determines the allowance for doubtful accounts based on historical losses and current economic conditions. On a continuing basis, management analyzes delinquent receivables, which are charged off against the existing allowance account when determined to be uncollectible. (g) Inventories Inventories, which consist of food and beverage products, paper goods and supplies, are valued at the lower of cost (first-in, first-out) or market. (h) Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Property and equipment is depreciated based on the straight-line method over the following estimated useful lives: Property and Equipment Estimated Useful Lives Leasehold improvements Lesser of the expected lease term or useful life Equipment, furniture and fixtures 3 to 7 years At the time property and equipment are retired, the asset and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in earnings. The Company expenses repair and maintenance costs that maintain the appearance and functionality of the restaurant but do not extend the useful life of any restaurant asset. Improvements to leased properties are depreciated over the shorter of their useful life or the lease term, which includes a fixed, non-cancelable lease term plus any reasonably assured renewal periods. (i) Impairment or Disposal of Long-Lived Assets Property and equipment and finite-life intangible assets are reviewed for impairment periodically and whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual restaurant and requires judgment and an estimate of future restaurant generated cash flows. The Company’s estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. The actual results may vary significantly from the estimates. (j) Goodwill and Indefinite-Lived Intangible Assets The Company’s indefinite-lived intangible assets consist of goodwill and trademarks, which are not subject to amortization. On an annual basis (October 1 st of the fiscal year) and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, the Company reviews the recoverability of goodwill and indefinite-lived intangible assets. The impairment test for goodwill involves comparing the fair value of the reporting units to their carrying amounts. We estimate fair value based on a combination of a guideline public companies market approach and discounted cash flow techniques using a risk adjusted discount rate that is commensurate with the risk inherent in our current business model. If the carrying amount of a reporting unit exceeds its fair value, a second step is required to measure a goodwill impairment loss, if any. This step requires an estimation of fair value of all assets and liabilities of the reporting unit and then compares the implied fair value of the reporting unit’s goodwill to the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. No indications of impairment were identified during fiscal years 2016 , 2015 or 2014 . The impairment test for trademarks involves comparing fair value of the trade name, as determined through a discounted cash flow approach, to its carrying value. Impairment indicators that may necessitate goodwill impairment testing in between the Company’s annual impairment tests include, but are not limited to the following: • A significant adverse change in legal factors or in the business climate; • An adverse action or assessment by a regulator; • Unanticipated competition; • A loss of key personnel; • A more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of; and • The testing for recoverability of a significant asset group within a reporting unit. Impairment indicators that may necessitate indefinite-lived intangible asset impairment testing in between the Company’s annual impairment tests are consistent with those of its long-lived assets. Sales declines at Wingstop restaurants, commodity or labor costs, deterioration in overall economic conditions and challenges in the restaurant industry may result in future impairment charges. It is possible that changes in circumstances or changes in management’s judgments, assumptions and estimates could result in an impairment charge of a portion or all of its goodwill or other intangible assets. (k) Revenue Recognition Revenues consist of sales from franchise and development fees, international territory fees, franchise royalties and company-owned stores. Franchise fees are recognized as revenue when all material services or conditions relating to the store have been substantially performed or satisfied by WRI, which is typically when a franchised store begins operations. Development fees for the right to develop a store are recognized as revenue when all material services or conditions relating to the sale have been substantially performed, which is typically when the franchised store begins operations. International territory fees and development fees determined based on the number of stores to open in an area are deferred and recognized as revenue on a pro rata basis at the same time the individual franchise fee is recognized, typically when individual stores are opened. Franchise fee, development fee and international territory fee payments received by WRI before the restaurant opens are recorded as deferred revenue in the Consolidated Balance Sheets. Continuing royalties, which are a percentage of net sales of the franchisee, are recognized as revenue when earned. The Company records food and beverage revenues from company-owned stores upon sale to the customer. The Company collects and remits sales, food and beverage, alcoholic beverage and hospitality taxes on transactions with customers and reports such amounts under the net method in its Consolidated Statements of Operations. Accordingly, these taxes are not included in gross revenue. The Company records a liability in the period in which a gift card is sold and recognizes costs associated with our administration of the gift card program as prepaid assets when the costs are incurred. As gift cards are redeemed, the liability and prepaid asset are reduced. When gift cards are redeemed at a franchisee-operated restaurant, the revenue and related administrative costs are recognized by the franchisee. The Company recognizes revenue and related administrative costs when gift cards are redeemed at company-operated restaurants. (l) Consideration from Vendors The Company has entered into food and beverage supply agreements with certain major vendors. Pursuant to the terms of these arrangements, rebates are provided to the Company from the vendors based upon the dollar volume of purchases for company-operated restaurants and franchised restaurants. Additionally, the Company receives certain incentives from vendors to sponsor its annual franchisee convention. These incentives are recognized as earned throughout the year and are classified as a reduction in Cost of sales with any consideration received in excess of the total expense of the vendor’s products included within Royalty revenue and franchise fees within the Consolidated Statements of Operations. The incentives recognized were approximately $6.5 million , $4.8 million and $4.7 million , during fiscal years 2016 , 2015 and 2014 , respectively, of which $1.0 million , $0.7 million and $1.2 million was classified as a reduction in Cost of sales during fiscal years 2016 , 2015 and 2014 , respectively. (m) Advertising Expenses WRI administers the Wingstop Restaurants Advertising Fund (“Ad Fund”), for which WRI collects a percentage, generally 2% , of gross sales from Wingstop restaurant franchisees and WRI-owned restaurants, to be used for various forms of advertising for the Wingstop brand. WRI administers and directs the development of all advertising and promotion programs in the advertising fund for which it collects advertising contributions, in accordance with the provisions of its franchise agreements. WRI has a contractual obligation with regard to these advertising contributions. The Company consolidates and reports all assets and liabilities of the advertising fund as restricted assets of the advertising fund and restricted liabilities of the advertising fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. The assets and liabilities of the advertising fund consist primarily of cash, receivables, accrued expenses, other liabilities, and any cumulative surplus related specifically to the advertising fund. The revenues, expenses and cash flows of the advertising fund are not included in the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows because the Company does not have complete discretion over the usage of the funds. Rather, under the franchise agreements, contributions to the advertising fund are restricted to advertising, public relations, merchandising, similar activities, and administrative expenses to increase sales and further enhance the public reputation of the Wingstop brand. The aforementioned administrative expenses may also include personnel expenses and allocated costs incurred by the Company which are directly associated with administering the advertising fund, as outlined in the provisions of the franchise agreements. Effective in June 2015, WRI changed its calculation of the marketing administrative costs incurred by WRI on behalf of the Ad Fund, which has lowered the marketing administrative costs to replace its discretionary contributions to the Ad Fund. The net result of these changes in the cash flows between WRI and the Ad Fund have minimal impact on the Company’s operating costs and no impact to the funds available to the Ad Fund. This change will also not impact historical trends of the Company’s net marketing costs. Prior to the change, WRI made discretionary contributions to the advertising fund for the purpose of supplementing national and regional advertising in certain markets of $0.9 million and $1.5 million for the fiscal years ended December 26, 2015 and December 27, 2014 , respectively, which are included in Selling, general and administrative expenses in the Consolidated Statements of Operations. Company operated restaurants incurred advertising expense in fiscal years 2016 , 2015 and 2014 of $1.5 million , $1.4 million , and $1.2 million respectively, which are included in cost of sales in the Consolidated Statements of Operations and include the company-operated restaurants’ advertising fund contributions that are equal to 2% of gross sales for each respective year. In addition to the above, the Company incurred advertising expenses related to franchise sales for fiscal years 2016 , 2015 and 2014 of $0.1 million , $0.2 million and $0.3 million respectively, which are included in Selling, general and administrative costs in the Consolidated Statements of Operations. (n) Leases WRI leases restaurants and office space under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, rent escalation clauses, and/or contingent rent provisions. For purposes of recognizing incentives and minimum rental payments on the straight-line basis over the terms of the leases, WRI uses the date it takes possession of the leased space for construction purposes as the beginning of the term, which is generally two to three months prior to a restaurant’s opening date. For leases with renewal periods at WRI’s option, WRI determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease. In addition to rental expense, certain leases require WRI to pay a portion of real estate taxes, utilities, building operating expenses, insurance and other charges in addition to rent. For tenant improvement allowances, rent escalations, and rent holidays, WRI records a deferred rent liability in its Consolidated Balance Sheets and amortizes the deferred rent in the Consolidated Statements of Operations over the terms of the leases as charges to cost of sales and SG&A for company-owned stores and the corporate office, respectively. (o) Stock-Based Compensation The Company measures stock-based compensation cost at fair value on the date of grant for all share-based awards and recognizes compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award. For performance awards, the Company recognizes expense in the period in which vesting becomes probable. (p) Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities as well as tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. The Company files a consolidated federal income tax return including all of its subsidiaries. Significant judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s income tax expense. The Company assesses the income tax position and records the liabilities for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. (q) Business Segments The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. These reporting segments are as follows: franchise operations and company restaurant operations. Franchise segment The Franchise segment consists of our domestic and international franchise restaurants, which represent the majority of our system-wide restaurants. As of December 31, 2016 , the franchise operations segment consisted of 977 restaurants operated by Wingstop franchisees in the United States and five countries outside of the United States as compared to 826 franchised restaurants in operation as of December 26, 2015 . Franchise operations revenue consists primarily of franchise royalty revenue, sales of franchise and development fees and international territory fees. Additionally, vendor rebates received for system-wide volume purchases in excess of the total expense of the vendor’s products are recognized as revenue of franchise operations. Company Segment As of December 31, 2016 , the Company segment consisted of 21 company-owned restaurants, located in the United States, as compared to 19 company-owned restaurants as of December 26, 2015 . Company restaurant sales are for food and beverage sales at company-operated restaurants. Company restaurant expenses are operating expenses at company-operated restaurants and include food, beverage, labor, benefits, utilities, rent and other operating costs. Certain corporate related items are not allocated to the reportable segments and consist primarily of expenses associated with the Company’s initial public offering and management fees. The Company allocates selling, general and administrative expenses based on the relative support provided to each reportable segment. (r) 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 U.S. 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 with early adoption permitted in fiscal year 2017. The Company expects to adopt this new guidance in fiscal year 2018, and has not yet selected a transition method. Based on a preliminary assessment, the Company expects the adoption of the new guidance to change the timing of recognition of initial franchise fees, including development and territory fees for our international business, and renewal fees. Currently, these fees are generally recognized upfront upon either opening of the respective restaurant or when a renewal agreement becomes effective. The new guidance will generally require these fees to be recognized over the term of the related franchise license for the respective restaurant. The Company is continuing to evaluate the impact the adoption of this new guidance will have on these and other revenue transactions, as well as the presentation of advertising fund revenues and expenses, in addition to the impact on accounting policies and related disclosures. In August 2014, the FASB issued ASU No 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) . The amendments in ASU 2014-15 are intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. Currently, GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The pronouncement is effective for annual periods ending after December 15, 2016. The Company adopted this pronouncement during the current fiscal year, and the adoption did not have a material impact on the Company’s financial statements. In April 2015, the FASB issued ASU No 2015-3, 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. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Per Share 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. We had approximately 4,000 , 11,000 and 83,000 stock options outstanding at December 31, 2016 , December 26, 2015 , and December 27, 2014 , respectively, that were not included in 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): Fiscal Year December 31, December 26, December 27, Basic weighted average shares outstanding 28,637 27,497 25,846 Dilutive stock options 346 319 358 Diluted weighted average shares outstanding 28,983 27,816 26,204 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2016 December 26, 2015 Carrying Value Fair Value Carrying Value Fair Value Senior Secured Credit Facility: Term loan facility (1) Level 2 $ 68,250 $ 68,250 $ 95,500 $ 95,500 Revolving credit facility (1) Level 2 $ 83,000 $ 83,000 $ — $ — (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. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestures In February 2014 , WRI sold five restaurants to an existing franchisee, which had a carrying value of $1.0 million , comprised of $610,000 in net assets and $442,000 in allocated goodwill, for proceeds of $1.1 million , resulting in a gain on disposal of approximately $100,000 . Upon disposal of the assets, any gain or loss is recorded on the Consolidated Statements of Operations in Selling, general and administrative. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivables, net, consist of the following (in thousands): December 31, December 26, Vendor rebates receivable $ 1,459 $ 2,484 Royalties receivable 883 710 Gift card receivable 672 — Other receivables, net 185 210 Accounts receivable, net $ 3,199 $ 3,404 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following (in thousands): December 31, December 26, Equipment, furniture and fixtures $ 7,682 $ 7,245 Leasehold improvements 6,081 5,457 Construction in progress 201 12 Property and equipment, gross 13,964 12,714 Less: accumulated deprecation (8,965 ) (8,121 ) Property and equipment, net $ 4,999 $ 4,593 Depreciation expense was $1.6 million , $1.3 million and $1.5 million for the fiscal years ended December 31, 2016 , December 26, 2015 and December 27, 2014 , respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The Company’s goodwill and other intangible assets arose from Wingstop’s acquisition of the equity interests of WHI in April 2010. Goodwill has been allocated to two reporting units, company-owned restaurants and franchised restaurants and represents the excess of purchase consideration transferred for the respective reporting unit over the fair value of the business at the time of the acquisition. As of December 31, 2016 and December 26, 2015 , the goodwill balance was $45.1 million . See Note 15 for the allocation of goodwill among the two reporting units. Intangible assets, excluding goodwill, consisted of the following (in thousands): December 31, December 26, Weighted Average Amortization Period (in years) Intangible assets: Trademarks $ 32,700 $ 32,700 Indefinite-lived assets 32,700 32,700 Customer relationships 26,300 26,300 20.0 Proprietary software (1) 115 115 5.0 Noncompete agreements (1) 250 250 2.8 Less: accumulated amortization (9,751 ) (8,369 ) Definite-lived assets 16,914 18,296 19.8 Intangible assets, net $ 49,614 $ 50,996 (1) Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets. Amortization expense for definite-lived intangibles was $1.4 million for fiscal years 2016 , 2015 and 2014 . Estimated amortization expense, principally related to customer relationships, for the five succeeding years and the aggregate thereafter is (in thousands): Fiscal year 2017 $ 1,347 Fiscal year 2018 1,334 Fiscal year 2019 1,322 Fiscal year 2020 1,310 Fiscal year 2021 1,298 Thereafter 10,303 Total $ 16,914 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Prepaid Expenses and Other Current Assets and Other Current Liabilities | Prepaid Expenses and Other Current Assets and Other Current Liabilities Prepaid expenses and other current assets consisted of the following (in thousands): December 31, December 26, Prepaid expenses $ 1,021 $ 1,185 Prepaid gift card expenses 387 — Inventories 226 182 Other current assets — 385 Total $ 1,634 $ 1,752 Other current liabilities consisted of the following (in thousands): December 31, December 26, Accrued payroll and bonuses $ 3,880 $ 2,812 Current portion of deferred revenues 1,547 1,744 Gift card liability 936 108 Taxes payable 895 161 Accrued interest 29 660 Other accrued liabilities 1,954 2,059 Total $ 9,241 $ 7,544 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) for the fiscal years 2016 , 2015 and 2014 consists of the following (in thousands): Fiscal Year December 31, December 26, December 27, Current expense Federal $ 8,854 $ 5,813 $ 6,068 State 847 736 606 Foreign 132 236 168 Deferred expense (benefit) Federal (662 ) (802 ) (1,430 ) State (52 ) (244 ) (100 ) Income tax expense $ 9,119 $ 5,739 $ 5,312 A reconciliation of income tax at the United States federal statutory tax rate (using a statutory tax rate of 34% and 35% as appropriate) to income tax expense for fiscal years 2016 , 2015 and 2014 in dollars is as follows (in thousands): Fiscal Year December 31, December 26, December 27, Expected income tax expense at statutory rate $ 8,594 $ 5,546 $ 4,943 Permanent differences 92 64 53 State tax expense, net of federal benefit 395 544 15 Foreign tax expense 132 236 168 Foreign tax credits (132 ) (236 ) (168 ) Increase in unrecognized tax benefit 185 104 28 Valuation allowance — (317 ) 306 Other (147 ) (202 ) (33 ) Income tax expense $ 9,119 $ 5,739 $ 5,312 The components of deferred tax assets (liabilities) are as follows (in thousands): December 31, 2016 December 26, 2015 Deferred tax assets: Deferred revenue $ 3,394 $ 3,383 Accrued bonus 706 424 Property and equipment 136 66 Equity compensation 818 569 Deferred rent 453 397 Intangible assets 593 788 Other 248 458 NOL/credits 443 443 Valuation allowance (482 ) (482 ) 6,309 6,046 Deferred tax liabilities: Intangible assets (18,613 ) (19,064 ) (18,613 ) (19,064 ) Net deferred tax liability $ (12,304 ) $ (13,018 ) The Company had a state net operating loss carry-forward of $23.3 million at December 31, 2016 and December 26, 2015 . The state net operating loss carry forwards begin to expire in 2030. As of December 31, 2016 , the Company had a valuation allowance of $482,000 against its deferred tax assets. In assessing whether a deferred tax asset will be realized, the Company considers whether it is more likely than not that some portion, or all of the deferred tax assets will not be realized. The Company considers the reversal of existing taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not we will realize a portion of the benefits of the federal and state deductible differences with the exception of $39,000 and $443,000 , respectively. We have not recognized a deferred tax asset for excess tax benefits of $4.3 million that arose directly from tax deductions related to equity compensation greater than amounts recognized for financial reporting. These excess stock compensation benefits will be credited to additional paid-in capital if realized. We use the “with-and-without” method for purposes of determining when excess tax benefits have been realized. In fiscal years 2016 , 2015 and 2014 , we recognized excess stock compensation benefits of $1,163,000 , $593,000 , and $749,000 , respectively, which was recorded as additional paid-in capital and offset a portion of our current tax liability. The Company files income tax returns, which are periodically audited by various federal and state jurisdictions. The Company was not subject to federal or state tax examinations prior to 2009. In fiscal 2013 the Internal Revenue Service (“IRS”) commenced an examination of the Company’s U.S. income tax returns for fiscal 2010 and 2011, which was subsequently settled and closed. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance as of December 28, 2013 $ 94 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 35 Subtractions for tax positions of current year — Balance as of December 27, 2014 129 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 336 Subtractions for tax positions of current year — Balance as of December 26, 2015 465 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 137 Subtractions for tax positions of current year — Balance as of December 31, 2016 $ 602 The Company currently anticipates that $23,000 of the $602,000 of unrecognized tax benefits will be recognized as of December 31, 2016 . As of December 31, 2016 and December 26, 2015 , the accrued interest and penalties on the unrecognized tax benefits were $116,000 and $68,000 , respectively, excluding any related income tax benefits. The Company recorded accrued interest related to the unrecognized tax benefits and penalties as a component of the provision for income taxes recognized in the Consolidated Statement of Operations. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Long-term debt consists of the following components (in thousands): December 31, 2016 December 26, 2015 Term loan $ 68,250 $ 95,500 Revolving credit facility 83,000 — Debt issuance costs (533 ) (492 ) Less: current portion of debt (3,500 ) — Long-term debt, net $ 147,217 $ 95,008 On June 30, 2016, the Company entered into a $180.0 million new senior secured credit facility (the “New Credit Facility”), which replaced the Company’s Second Amended and Restated Credit Facility dated March 18, 2015. The New 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 New 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 New Credit Facility matures in June 2021 . As of December 31, 2016 , the term loan facility had an outstanding balance of $68.3 million that bears interest at 3.27% . 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 December 31, 2016 , the revolving credit facility had an outstanding balance of $83.0 million , which bears interest at 3.27% . During the fiscal year ended December 31, 2016 , the Company made payments on the revolving credit facility totaling $12.0 million . In conjunction with the New 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. In March 2015 , the Company amended and restated the senior secured credit facility (the “Second Amended and Restated Credit Facility”). In connection with the Second Amended and Restated Credit Facility, the facility size was increased from $107.5 million to $137.5 million and was comprised of a $132.5 million term loan and a $5.0 million revolving credit facility. The Company used a portion of the proceeds from the Second Amended and Restated Credit Facility and cash on hand to pay a dividend of $48.0 million to its shareholders. Borrowings under the facility bore interest, payable quarterly, at our option, at the base rate plus a margin ( 1.50% to 2.25% , dependent on the Company’s reported leverage ratio) or LIBOR plus a margin ( 2.50% to 3.25% , dependent on our reported leverage ratio). The Second Amended and Restated Credit Facility had a maturity date of March 2020 . In conjunction with the Second Amended and Restated Credit Facility, the Company evaluated the refinancing of the amended facility and determined substantially all of the $132.5 million was accounted for as a debt modification. The Company incurred $728,000 in financing costs of which $528,000 was expensed and $200,000 was capitalized and is being amortized using the effective interest rate method. In June 2015, in connection with the IPO, the Company used a portion of the IPO proceeds to make a $32.0 million prepayment of the outstanding principle balance of the Second Amended and Restated Credit Facility. As a result of the prepayment, the Company expensed $172,000 of previously capitalized financing costs, which are included in Other (income) expense in the Consolidated Statements of Operations. As of December 26, 2015 , the amended and restated credit facility had an outstanding balance of $95.5 million that bore interest at 2.83% . The Second Amended and Restated Credit Facility included a $5.0 million revolver. At December 26, 2015 , there were no amounts outstanding on the line of credit. The Second Amended and Restated Credit Facility also included a $3.0 million line of credit which the Company may utilize to issue letters of credit. The letter of credit facility matures in March 2020. At December 26, 2015 , there were no letters of credit outstanding. The credit facility is secured by substantially all assets of the Company and requires compliance with certain financial and non-financial covenants. As of December 31, 2016 , the Company was in compliance with all financial covenants. As of December 31, 2016 , the scheduled principle payments on debt were as follows (in thousands): Fiscal year 2017 $ 3,500 Fiscal year 2018 3,500 Fiscal year 2019 2,625 Fiscal year 2020 3,500 Fiscal year 2021 138,125 Total $ 151,250 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 December 31, 2016 , is as follows (in thousands): Fiscal year 2017 $ 1,725 Fiscal year 2018 1,544 Fiscal year 2019 1,310 Fiscal year 2020 1,185 Fiscal year 2021 1,028 Thereafter 4,385 Total $ 11,177 Rent expense under cancelable and non-cancelable leases was $1.9 million , $2.0 million , and $1.9 million for the fiscal years ended December 31, 2016 , December 26, 2015 , and December 27, 2014 , respectively. The Company is subject to legal proceedings, claims and liabilities, such as employment-related claims and slip and fall 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. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company sponsors a 401(k) profit sharing plan for all employees who are eligible based upon age and length of service. The Company made matching contributions of approximately $425,000 , $332,000 and $84,000 for fiscal years 2016 , 2015 and 2014 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In connection with the IPO, the Wingstop Inc. 2015 Omnibus Equity Incentive Plan, or the 2015 Plan, was adopted and became effective upon completion of the offering. The 2015 Plan provides for the grant or award of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance unit awards, performance share awards, cash-based awards and other stock-based awards to employees, directors, and other eligible persons. Under the 2015 Plan, Wingstop had 2,143,589 shares authorized for issuance, 96,435 shares of common stock issuable upon exercise of currently outstanding options, and 2,047,154 shares available for future grants as of December 31, 2016 . The options granted under the 2015 Plan are subject to either service-based or performance-based vesting. Service-based options contain a service-based, or time-based, vesting provision. Performance-based options contain performance-based vesting provisions based on the Company meeting certain Adjusted EBITDA profitability targets for each fiscal year during the vesting period. In the event of a change in control of the Company (as defined in the 2015 Plan), each outstanding award will be treated as the compensation committee determines, either by the terms of the award agreement or by resolution adopted by the compensation committee, including without limitation, that the awards may be vested, assumed replaced with substitute awards, cashed-out or terminated. Additionally, Wingstop had previously adopted the 2010 Stock Option Plan, or the 2010 Plan, which permits the granting of awards to employees, directors and other eligible persons of the Company in the form of stock options. The Plan is administered by Wingstop’s Board of Directors. The options granted under the 2010 Plan are generally exercisable within a 10 -year period from the date of grant. Under the 2010 Plan, options are subject to either service-based or performance-based vesting. Service-based options contain a service-based, or time-based, vesting provision. Performance-based options contain performance-based vesting provisions based on the Company meeting certain Adjusted EBITDA profitability targets for each fiscal year during the vesting period. Any options that have not vested prior to a change of control or do not vest in connection with a change of control or do vest but are not exercised will be forfeited by the grantee upon a change of control for no consideration. The IPO in June 2015 was not considered a change of control event as defined in the 2010 Plan. Options issued and outstanding expire on various dates up to fiscal year 2025 . Under the 2010 Plan, Wingstop had 3,304,115 shares authorized for issuance. There are 758,612 shares of common stock issuable upon exercise of currently outstanding options, and 358,306 shares available for future grants at December 31, 2016 . 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 (166 ) $ 2.92 Canceled (192 ) $ 5.99 Outstanding - December 31, 2016 855 $ 5.14 $ 20,905 6.8 The total grant-date fair value of stock options vested during each of the fiscal years 2016 , 2015 and 2014 was $1.0 million , $0.7 million and $0.9 million , respectively. The total intrinsic value of stock options exercised was $3.8 million , $3.0 million and $2.7 million for fiscal years 2016 , 2015 and 2014 , respectively. 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 approximately $1.2 million , $1.2 million and $1.0 million in stock compensation expense for fiscal years 2016 , 2015 and 2014 , respectively, with a corresponding increase to additional paid-in-capital. Stock compensation expense is included in Selling, general and administrative expenses in the Consolidated Statement of Operations. A summary of the status of non-vested shares as of December 31, 2016 and the changes during the period then ended is presented below: December 31, 2016 Shares Weighted average grant-date fair value Non-vested shares at beginning of year 955 $ 4.88 Granted 36 $ 24.34 Vested (299 ) $ 2.64 Forfeited (192 ) $ 5.99 Non-vested shares at end of year 500 $ 7.19 The Company granted 11,724 shares of restricted stock awards during 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 as of December 31, 2016 and will be recognized over a weighted average remaining term of approximately 2.9 years . As of December 31, 2016 , there was $2.0 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 2.1 years . The estimated fair value of each option granted is calculated using the Black-Scholes option-pricing model. Expected volatilities are based on volatilities from publicly traded companies operating in the Company’s industry. The Company uses historical data to estimate expected employee forfeiture of stock options. The expected life of options granted is management’s best estimate using recent and expected transactions. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The weighted-average assumptions used in the model were as follows: 2016 2015 2014 Risk-free interest 1.44 % 1.96 % 1.96 % Expected life (years) 6.2 6.5 6.5 Expected dividend yield 0 % 0 % 0 % Volatility 52.0 % 52.0 % 50.8 % Weighted-average Black-Scholes fair value per share at date of grant $ 13.74 $ 8.87 $ 3.87 The Company used the simplified method for determining the expected life of the options. In addition, assumptions made regarding forfeitures in determining the remaining unamortized share-based compensation are re-evaluated periodically. During 2016 , the Board of Directors authorized a dividend in the amount of $2.90 per share, or $83.3 million . In connection with the declaration and payment of the dividend, the exercise price of some of the outstanding options on July 12, 2016 was reduced by an amount of $2.90 per share. During 2015 , the Board of Directors authorized a dividend in the amount of $1.83 per share or $48.0 million . In connection with the declaration and payment of the dividend, the exercise price of some of the outstanding options on March 27, 2015 was reduced by an amount of $1.83 per share. At each dividend date, management evaluated the option modification for incremental compensation expense and calculated $94,000 and $537,000 of total incremental compensation for the modifications during fiscal years 2016 and 2015 , respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company was party to a management agreement with Roark Capital Management, LLC, or Roark Capital Management, an affiliate of Wingstop’s former majority shareholder (prior to the secondary offering completed in March, 2016). Pursuant to this management agreement, Roark Capital Management agreed to provide the Company with advice concerning finance, strategic planning and other services. In June 2015 , the Company paid a one-time fee to Roark Capital Management in consideration for the termination of our management agreement of $3.3 million . The Company paid Roark Capital Management fees and expense reimbursement totaling $3.5 million and $0.4 million for the fiscal years ended December 26, 2015 and December 27, 2014 , respectively, inclusive of the termination fee. As of December 31, 2016 , three of the Company’s board members were employed by Roark Capital Management. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Information on segments and a reconciliation to income (loss) before taxes are as follows (in thousands): Fiscal Year December 31, December 26, December 27, Revenue: Franchise segment $ 57,071 $ 46,688 $ 38,032 Company segment 34,288 31,281 29,417 Total segment revenue $ 91,359 $ 77,969 $ 67,449 Segment Profit: Franchise segment $ 25,850 $ 19,701 $ 15,213 Company segment 5,526 5,737 5,471 Total segment profit 31,376 25,438 20,684 Corporate and other (1) 2,173 5,720 2,618 Interest expense, net 4,396 3,477 3,684 Other (income) expense, net 254 396 84 Income before taxes $ 24,553 $ 15,845 $ 14,298 Depreciation and amortization: Franchise segment $ 2,092 $ 1,812 $ 1,868 Company segment 916 870 1,036 Total depreciation and amortization 3,008 2,682 2,904 Capital expenditures: Franchise segment $ 387 $ 1,308 $ 1,159 Company segment 1,669 607 351 Total capital expenditures $ 2,056 $ 1,915 $ 1,510 (1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of transaction costs associated with the refinancings of our credit agreement and our public offerings, and management fees (discussed in Note 14). Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands): As of December 31, 2016 December 26, 2015 Segment assets: Franchise segment $ 94,889 $ 97,412 Company segment 9,864 8,715 Total segment assets 104,753 106,127 Corporate and other (2) 7,047 14,523 Total assets $ 111,800 $ 120,650 (2) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of cash and cash equivalents, advertising fund restricted assets and capitalized costs associated with the issuance of indebtedness. Segment goodwill: Franchise segment $ 39,930 $ 39,930 Company segment 5,198 5,198 Total goodwill $ 45,128 $ 45,128 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) The following tables set forth certain unaudited consolidated financial information for each of the four quarters in 2016 and 2015 (in thousands, except per share data): Quarter Ended December 31, 2016 (1) September 24, 2016 June 25, 2016 March 26, 2016 December 26, 2015 September 26, 2015 June 27, 2015 March 28, 2015 Total revenue $ 24,752 $ 21,810 $ 22,723 $ 22,074 $ 20,577 $ 19,134 $ 19,232 $ 19,026 Operating income 8,255 6,080 7,240 7,628 6,508 5,853 2,406 4,951 Net income 4,312 2,753 4,079 4,290 3,795 3,173 584 2,554 Earnings per share Basic $ 0.15 $ 0.10 $ 0.14 $ 0.15 $ 0.13 $ 0.11 $ 0.02 $ 0.10 Diluted $ 0.15 $ 0.09 $ 0.14 $ 0.15 $ 0.13 $ 0.11 $ 0.02 $ 0.10 Weighted average shares outstanding Basic 28,745 28,725 28,646 28,586 28,581 28,581 26,689 26,290 Diluted 29,114 29,014 28,989 28,967 28,951 28,891 26,970 26,607 (1) Fiscal 2016 consisted of 53 calendar weeks, with the fourth quarter containing 14 calendar weeks. |
Basis of Presentation and Sum23
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Wingstop Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Year End | Fiscal Year End The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal year 2016 consisted of 53 weeks, and fiscal years 2015 and 2014 each consisted of 52 weeks. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions, primarily related to long-lived asset (valuation), indefinite and finite lived intangible asset valuation, income taxes, leases, stock-based compensation, contingencies and common stock equity valuations. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the period. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could differ from those estimates. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income is the same as net income for all periods presented. Therefore, a separate statement of comprehensive income (loss) is not included in the accompanying consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are comprised of credit card receivables and all highly liquid investments with an initial maturity of three months or less when purchased. Cash and cash equivalents are carried at cost which approximates fair value. The Company maintains its cash in bank deposit accounts that, at times, may exceed federally insured limits; however, the Company has not experienced any losses in these accounts. The Company believes it is not exposed to any significant credit risk. |
Accounts Receivable | Accounts Receivable Accounts receivable, net of allowance for doubtful accounts, consists primarily of accrued royalty fee receivables, collected weekly in arrears, and vendor rebates. Management determines the allowance for doubtful accounts based on historical losses and current economic conditions. On a continuing basis, management analyzes delinquent receivables, which are charged off against the existing allowance account when determined to be uncollectible. |
Inventories | Inventories Inventories, which consist of food and beverage products, paper goods and supplies, are valued at the lower of cost (first-in, first-out) or market. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Property and equipment is depreciated based on the straight-line method over the following estimated useful lives: Property and Equipment Estimated Useful Lives Leasehold improvements Lesser of the expected lease term or useful life Equipment, furniture and fixtures 3 to 7 years At the time property and equipment are retired, the asset and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in earnings. The Company expenses repair and maintenance costs that maintain the appearance and functionality of the restaurant but do not extend the useful life of any restaurant asset. Improvements to leased properties are depreciated over the shorter of their useful life or the lease term, which includes a fixed, non-cancelable lease term plus any reasonably assured renewal periods. |
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long-Lived Assets Property and equipment and finite-life intangible assets are reviewed for impairment periodically and whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company’s assessment of recoverability of property and equipment and finite-lived intangible assets is performed at the component level, which is generally an individual restaurant and requires judgment and an estimate of future restaurant generated cash flows. The Company’s estimates of fair values are based on the best information available and require the use of estimates, judgments, and projections. The actual results may vary significantly from the estimates. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets The Company’s indefinite-lived intangible assets consist of goodwill and trademarks, which are not subject to amortization. On an annual basis (October 1 st of the fiscal year) and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, the Company reviews the recoverability of goodwill and indefinite-lived intangible assets. The impairment test for goodwill involves comparing the fair value of the reporting units to their carrying amounts. We estimate fair value based on a combination of a guideline public companies market approach and discounted cash flow techniques using a risk adjusted discount rate that is commensurate with the risk inherent in our current business model. If the carrying amount of a reporting unit exceeds its fair value, a second step is required to measure a goodwill impairment loss, if any. This step requires an estimation of fair value of all assets and liabilities of the reporting unit and then compares the implied fair value of the reporting unit’s goodwill to the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. No indications of impairment were identified during fiscal years 2016 , 2015 or 2014 . The impairment test for trademarks involves comparing fair value of the trade name, as determined through a discounted cash flow approach, to its carrying value. Impairment indicators that may necessitate goodwill impairment testing in between the Company’s annual impairment tests include, but are not limited to the following: • A significant adverse change in legal factors or in the business climate; • An adverse action or assessment by a regulator; • Unanticipated competition; • A loss of key personnel; • A more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of; and • The testing for recoverability of a significant asset group within a reporting unit. Impairment indicators that may necessitate indefinite-lived intangible asset impairment testing in between the Company’s annual impairment tests are consistent with those of its long-lived assets. Sales declines at Wingstop restaurants, commodity or labor costs, deterioration in overall economic conditions and challenges in the restaurant industry may result in future impairment charges. It is possible that changes in circumstances or changes in management’s judgments, assumptions and estimates could result in an impairment charge of a portion or all of its goodwill or other intangible assets. |
Revenue Recognition | Revenue Recognition Revenues consist of sales from franchise and development fees, international territory fees, franchise royalties and company-owned stores. Franchise fees are recognized as revenue when all material services or conditions relating to the store have been substantially performed or satisfied by WRI, which is typically when a franchised store begins operations. Development fees for the right to develop a store are recognized as revenue when all material services or conditions relating to the sale have been substantially performed, which is typically when the franchised store begins operations. International territory fees and development fees determined based on the number of stores to open in an area are deferred and recognized as revenue on a pro rata basis at the same time the individual franchise fee is recognized, typically when individual stores are opened. Franchise fee, development fee and international territory fee payments received by WRI before the restaurant opens are recorded as deferred revenue in the Consolidated Balance Sheets. Continuing royalties, which are a percentage of net sales of the franchisee, are recognized as revenue when earned. The Company records food and beverage revenues from company-owned stores upon sale to the customer. The Company collects and remits sales, food and beverage, alcoholic beverage and hospitality taxes on transactions with customers and reports such amounts under the net method in its Consolidated Statements of Operations. Accordingly, these taxes are not included in gross revenue. The Company records a liability in the period in which a gift card is sold and recognizes costs associated with our administration of the gift card program as prepaid assets when the costs are incurred. As gift cards are redeemed, the liability and prepaid asset are reduced. When gift cards are redeemed at a franchisee-operated restaurant, the revenue and related administrative costs are recognized by the franchisee. The Company recognizes revenue and related administrative costs when gift cards are redeemed at company-operated restaurants. |
Consideration from Vendors | Consideration from Vendors The Company has entered into food and beverage supply agreements with certain major vendors. Pursuant to the terms of these arrangements, rebates are provided to the Company from the vendors based upon the dollar volume of purchases for company-operated restaurants and franchised restaurants. Additionally, the Company receives certain incentives from vendors to sponsor its annual franchisee convention. These incentives are recognized as earned throughout the year and are classified as a reduction in Cost of sales with any consideration received in excess of the total expense of the vendor’s products included within Royalty revenue and franchise fees within the Consolidated Statements of Operations. The incentives recognized were approximately $6.5 million , $4.8 million and $4.7 million , during fiscal years 2016 , 2015 and 2014 , respectively, of which $1.0 million , $0.7 million and $1.2 million was classified as a reduction in Cost of sales during fiscal years 2016 , 2015 and 2014 , respectively. |
Advertising Expenses | Advertising Expenses WRI administers the Wingstop Restaurants Advertising Fund (“Ad Fund”), for which WRI collects a percentage, generally 2% , of gross sales from Wingstop restaurant franchisees and WRI-owned restaurants, to be used for various forms of advertising for the Wingstop brand. WRI administers and directs the development of all advertising and promotion programs in the advertising fund for which it collects advertising contributions, in accordance with the provisions of its franchise agreements. WRI has a contractual obligation with regard to these advertising contributions. The Company consolidates and reports all assets and liabilities of the advertising fund as restricted assets of the advertising fund and restricted liabilities of the advertising fund within current assets and current liabilities, respectively, in the Consolidated Balance Sheets. The assets and liabilities of the advertising fund consist primarily of cash, receivables, accrued expenses, other liabilities, and any cumulative surplus related specifically to the advertising fund. The revenues, expenses and cash flows of the advertising fund are not included in the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows because the Company does not have complete discretion over the usage of the funds. Rather, under the franchise agreements, contributions to the advertising fund are restricted to advertising, public relations, merchandising, similar activities, and administrative expenses to increase sales and further enhance the public reputation of the Wingstop brand. The aforementioned administrative expenses may also include personnel expenses and allocated costs incurred by the Company which are directly associated with administering the advertising fund, as outlined in the provisions of the franchise agreements. Effective in June 2015, WRI changed its calculation of the marketing administrative costs incurred by WRI on behalf of the Ad Fund, which has lowered the marketing administrative costs to replace its discretionary contributions to the Ad Fund. The net result of these changes in the cash flows between WRI and the Ad Fund have minimal impact on the Company’s operating costs and no impact to the funds available to the Ad Fund. This change will also not impact historical trends of the Company’s net marketing costs. Prior to the change, WRI made discretionary contributions to the advertising fund for the purpose of supplementing national and regional advertising in certain markets of $0.9 million and $1.5 million for the fiscal years ended December 26, 2015 and December 27, 2014 , respectively, which are included in Selling, general and administrative expenses in the Consolidated Statements of Operations. Company operated restaurants incurred advertising expense in fiscal years 2016 , 2015 and 2014 of $1.5 million , $1.4 million , and $1.2 million respectively, which are included in cost of sales in the Consolidated Statements of Operations and include the company-operated restaurants’ advertising fund contributions that are equal to 2% of gross sales for each respective year. In addition to the above, the Company incurred advertising expenses related to franchise sales for fiscal years 2016 , 2015 and 2014 of $0.1 million , $0.2 million and $0.3 million respectively, which are included in Selling, general and administrative costs in the Consolidated Statements of Operations. |
Leases | Leases WRI leases restaurants and office space under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, rent escalation clauses, and/or contingent rent provisions. For purposes of recognizing incentives and minimum rental payments on the straight-line basis over the terms of the leases, WRI uses the date it takes possession of the leased space for construction purposes as the beginning of the term, which is generally two to three months prior to a restaurant’s opening date. For leases with renewal periods at WRI’s option, WRI determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease. In addition to rental expense, certain leases require WRI to pay a portion of real estate taxes, utilities, building operating expenses, insurance and other charges in addition to rent. For tenant improvement allowances, rent escalations, and rent holidays, WRI records a deferred rent liability in its Consolidated Balance Sheets and amortizes the deferred rent in the Consolidated Statements of Operations over the terms of the leases as charges to cost of sales and SG&A for company-owned stores and the corporate office, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock-based compensation cost at fair value on the date of grant for all share-based awards and recognizes compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award. For performance awards, the Company recognizes expense in the period in which vesting becomes probable. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities as well as tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. The Company files a consolidated federal income tax return including all of its subsidiaries. Significant judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s income tax expense. The Company assesses the income tax position and records the liabilities for all years subject to examination based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. |
Business Segments | Business Segments The Company identifies its reporting segments based on the organizational units used by management to monitor performance and make operating decisions. These reporting segments are as follows: franchise operations and company restaurant operations. Franchise segment The Franchise segment consists of our domestic and international franchise restaurants, which represent the majority of our system-wide restaurants. As of December 31, 2016 , the franchise operations segment consisted of 977 restaurants operated by Wingstop franchisees in the United States and five countries outside of the United States as compared to 826 franchised restaurants in operation as of December 26, 2015 . Franchise operations revenue consists primarily of franchise royalty revenue, sales of franchise and development fees and international territory fees. Additionally, vendor rebates received for system-wide volume purchases in excess of the total expense of the vendor’s products are recognized as revenue of franchise operations. Company Segment As of December 31, 2016 , the Company segment consisted of 21 company-owned restaurants, located in the United States, as compared to 19 company-owned restaurants as of December 26, 2015 . Company restaurant sales are for food and beverage sales at company-operated restaurants. Company restaurant expenses are operating expenses at company-operated restaurants and include food, beverage, labor, benefits, utilities, rent and other operating costs. Certain corporate related items are not allocated to the reportable segments and consist primarily of expenses associated with the Company’s initial public offering and management fees. The Company allocates selling, general and administrative expenses based on the relative support provided to each reportable segment. |
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 U.S. 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 with early adoption permitted in fiscal year 2017. The Company expects to adopt this new guidance in fiscal year 2018, and has not yet selected a transition method. Based on a preliminary assessment, the Company expects the adoption of the new guidance to change the timing of recognition of initial franchise fees, including development and territory fees for our international business, and renewal fees. Currently, these fees are generally recognized upfront upon either opening of the respective restaurant or when a renewal agreement becomes effective. The new guidance will generally require these fees to be recognized over the term of the related franchise license for the respective restaurant. The Company is continuing to evaluate the impact the adoption of this new guidance will have on these and other revenue transactions, as well as the presentation of advertising fund revenues and expenses, in addition to the impact on accounting policies and related disclosures. In August 2014, the FASB issued ASU No 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) . The amendments in ASU 2014-15 are intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under GAAP, financial statements are prepared under the presumption that the reporting organization will continue to operate as a going concern, except in limited circumstances. The going concern basis of accounting is critical to financial reporting because it establishes the fundamental basis for measuring and classifying assets and liabilities. Currently, GAAP lacks guidance about management’s responsibility to evaluate whether there is substantial doubt about the organization’s ability to continue as a going concern or to provide related footnote disclosures. This ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The pronouncement is effective for annual periods ending after December 15, 2016. The Company adopted this pronouncement during the current fiscal year, and the adoption did not have a material impact on the Company’s financial statements. In April 2015, the FASB issued ASU No 2015-3, 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. |
Basis of Presentation and Sum24
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment | Property and equipment is depreciated based on the straight-line method over the following estimated useful lives: Property and Equipment Estimated Useful Lives Leasehold improvements Lesser of the expected lease term or useful life Equipment, furniture and fixtures 3 to 7 years Property and equipment, net consisted of the following (in thousands): December 31, December 26, Equipment, furniture and fixtures $ 7,682 $ 7,245 Leasehold improvements 6,081 5,457 Construction in progress 201 12 Property and equipment, gross 13,964 12,714 Less: accumulated deprecation (8,965 ) (8,121 ) Property and equipment, net $ 4,999 $ 4,593 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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): Fiscal Year December 31, December 26, December 27, Basic weighted average shares outstanding 28,637 27,497 25,846 Dilutive stock options 346 319 358 Diluted weighted average shares outstanding 28,983 27,816 26,204 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2016 December 26, 2015 Carrying Value Fair Value Carrying Value Fair Value Senior Secured Credit Facility: Term loan facility (1) Level 2 $ 68,250 $ 68,250 $ 95,500 $ 95,500 Revolving credit facility (1) Level 2 $ 83,000 $ 83,000 $ — $ — (1) The fair value of long-term debt was estimated using available market information. |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, net | Accounts receivables, net, consist of the following (in thousands): December 31, December 26, Vendor rebates receivable $ 1,459 $ 2,484 Royalties receivable 883 710 Gift card receivable 672 — Other receivables, net 185 210 Accounts receivable, net $ 3,199 $ 3,404 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment is depreciated based on the straight-line method over the following estimated useful lives: Property and Equipment Estimated Useful Lives Leasehold improvements Lesser of the expected lease term or useful life Equipment, furniture and fixtures 3 to 7 years Property and equipment, net consisted of the following (in thousands): December 31, December 26, Equipment, furniture and fixtures $ 7,682 $ 7,245 Leasehold improvements 6,081 5,457 Construction in progress 201 12 Property and equipment, gross 13,964 12,714 Less: accumulated deprecation (8,965 ) (8,121 ) Property and equipment, net $ 4,999 $ 4,593 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets, excluding goodwill, consisted of the following (in thousands): December 31, December 26, Weighted Average Amortization Period (in years) Intangible assets: Trademarks $ 32,700 $ 32,700 Indefinite-lived assets 32,700 32,700 Customer relationships 26,300 26,300 20.0 Proprietary software (1) 115 115 5.0 Noncompete agreements (1) 250 250 2.8 Less: accumulated amortization (9,751 ) (8,369 ) Definite-lived assets 16,914 18,296 19.8 Intangible assets, net $ 49,614 $ 50,996 (1) Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense, principally related to customer relationships, for the five succeeding years and the aggregate thereafter is (in thousands): Fiscal year 2017 $ 1,347 Fiscal year 2018 1,334 Fiscal year 2019 1,322 Fiscal year 2020 1,310 Fiscal year 2021 1,298 Thereafter 10,303 Total $ 16,914 |
Prepaid Expenses and Other Cu30
Prepaid Expenses and Other Current Assets and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 31, December 26, Prepaid expenses $ 1,021 $ 1,185 Prepaid gift card expenses 387 — Inventories 226 182 Other current assets — 385 Total $ 1,634 $ 1,752 |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following (in thousands): December 31, December 26, Accrued payroll and bonuses $ 3,880 $ 2,812 Current portion of deferred revenues 1,547 1,744 Gift card liability 936 108 Taxes payable 895 161 Accrued interest 29 660 Other accrued liabilities 1,954 2,059 Total $ 9,241 $ 7,544 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) for the fiscal years 2016 , 2015 and 2014 consists of the following (in thousands): Fiscal Year December 31, December 26, December 27, Current expense Federal $ 8,854 $ 5,813 $ 6,068 State 847 736 606 Foreign 132 236 168 Deferred expense (benefit) Federal (662 ) (802 ) (1,430 ) State (52 ) (244 ) (100 ) Income tax expense $ 9,119 $ 5,739 $ 5,312 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax at the United States federal statutory tax rate (using a statutory tax rate of 34% and 35% as appropriate) to income tax expense for fiscal years 2016 , 2015 and 2014 in dollars is as follows (in thousands): Fiscal Year December 31, December 26, December 27, Expected income tax expense at statutory rate $ 8,594 $ 5,546 $ 4,943 Permanent differences 92 64 53 State tax expense, net of federal benefit 395 544 15 Foreign tax expense 132 236 168 Foreign tax credits (132 ) (236 ) (168 ) Increase in unrecognized tax benefit 185 104 28 Valuation allowance — (317 ) 306 Other (147 ) (202 ) (33 ) Income tax expense $ 9,119 $ 5,739 $ 5,312 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets (liabilities) are as follows (in thousands): December 31, 2016 December 26, 2015 Deferred tax assets: Deferred revenue $ 3,394 $ 3,383 Accrued bonus 706 424 Property and equipment 136 66 Equity compensation 818 569 Deferred rent 453 397 Intangible assets 593 788 Other 248 458 NOL/credits 443 443 Valuation allowance (482 ) (482 ) 6,309 6,046 Deferred tax liabilities: Intangible assets (18,613 ) (19,064 ) (18,613 ) (19,064 ) Net deferred tax liability $ (12,304 ) $ (13,018 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance as of December 28, 2013 $ 94 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 35 Subtractions for tax positions of current year — Balance as of December 27, 2014 129 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 336 Subtractions for tax positions of current year — Balance as of December 26, 2015 465 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 137 Subtractions for tax positions of current year — Balance as of December 31, 2016 $ 602 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following components (in thousands): December 31, 2016 December 26, 2015 Term loan $ 68,250 $ 95,500 Revolving credit facility 83,000 — Debt issuance costs (533 ) (492 ) Less: current portion of debt (3,500 ) — Long-term debt, net $ 147,217 $ 95,008 |
Schedule of Maturities of Long-term Debt | As of December 31, 2016 , the scheduled principle payments on debt were as follows (in thousands): Fiscal year 2017 $ 3,500 Fiscal year 2018 3,500 Fiscal year 2019 2,625 Fiscal year 2020 3,500 Fiscal year 2021 138,125 Total $ 151,250 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | 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 December 31, 2016 , is as follows (in thousands): Fiscal year 2017 $ 1,725 Fiscal year 2018 1,544 Fiscal year 2019 1,310 Fiscal year 2020 1,185 Fiscal year 2021 1,028 Thereafter 4,385 Total $ 11,177 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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 (166 ) $ 2.92 Canceled (192 ) $ 5.99 Outstanding - December 31, 2016 855 $ 5.14 $ 20,905 6.8 |
Schedule of Nonvested Share Activity | A summary of the status of non-vested shares as of December 31, 2016 and the changes during the period then ended is presented below: December 31, 2016 Shares Weighted average grant-date fair value Non-vested shares at beginning of year 955 $ 4.88 Granted 36 $ 24.34 Vested (299 ) $ 2.64 Forfeited (192 ) $ 5.99 Non-vested shares at end of year 500 $ 7.19 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The weighted-average assumptions used in the model were as follows: 2016 2015 2014 Risk-free interest 1.44 % 1.96 % 1.96 % Expected life (years) 6.2 6.5 6.5 Expected dividend yield 0 % 0 % 0 % Volatility 52.0 % 52.0 % 50.8 % Weighted-average Black-Scholes fair value per share at date of grant $ 13.74 $ 8.87 $ 3.87 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information on segments and a reconciliation to income (loss) before taxes are as follows (in thousands): Fiscal Year December 31, December 26, December 27, Revenue: Franchise segment $ 57,071 $ 46,688 $ 38,032 Company segment 34,288 31,281 29,417 Total segment revenue $ 91,359 $ 77,969 $ 67,449 Segment Profit: Franchise segment $ 25,850 $ 19,701 $ 15,213 Company segment 5,526 5,737 5,471 Total segment profit 31,376 25,438 20,684 Corporate and other (1) 2,173 5,720 2,618 Interest expense, net 4,396 3,477 3,684 Other (income) expense, net 254 396 84 Income before taxes $ 24,553 $ 15,845 $ 14,298 Depreciation and amortization: Franchise segment $ 2,092 $ 1,812 $ 1,868 Company segment 916 870 1,036 Total depreciation and amortization 3,008 2,682 2,904 Capital expenditures: Franchise segment $ 387 $ 1,308 $ 1,159 Company segment 1,669 607 351 Total capital expenditures $ 2,056 $ 1,915 $ 1,510 (1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of transaction costs associated with the refinancings of our credit agreement and our public offerings, and management fees (discussed in Note 14). Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands): As of December 31, 2016 December 26, 2015 Segment assets: Franchise segment $ 94,889 $ 97,412 Company segment 9,864 8,715 Total segment assets 104,753 106,127 Corporate and other (2) 7,047 14,523 Total assets $ 111,800 $ 120,650 (2) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of cash and cash equivalents, advertising fund restricted assets and capitalized costs associated with the issuance of indebtedness. Segment goodwill: Franchise segment $ 39,930 $ 39,930 Company segment 5,198 5,198 Total goodwill $ 45,128 $ 45,128 |
Quarterly Financial Data (una36
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables set forth certain unaudited consolidated financial information for each of the four quarters in 2016 and 2015 (in thousands, except per share data): Quarter Ended December 31, 2016 (1) September 24, 2016 June 25, 2016 March 26, 2016 December 26, 2015 September 26, 2015 June 27, 2015 March 28, 2015 Total revenue $ 24,752 $ 21,810 $ 22,723 $ 22,074 $ 20,577 $ 19,134 $ 19,232 $ 19,026 Operating income 8,255 6,080 7,240 7,628 6,508 5,853 2,406 4,951 Net income 4,312 2,753 4,079 4,290 3,795 3,173 584 2,554 Earnings per share Basic $ 0.15 $ 0.10 $ 0.14 $ 0.15 $ 0.13 $ 0.11 $ 0.02 $ 0.10 Diluted $ 0.15 $ 0.09 $ 0.14 $ 0.15 $ 0.13 $ 0.11 $ 0.02 $ 0.10 Weighted average shares outstanding Basic 28,745 28,725 28,646 28,586 28,581 28,581 26,689 26,290 Diluted 29,114 29,014 28,989 28,967 28,951 28,891 26,970 26,607 (1) Fiscal 2016 consisted of 53 calendar weeks, with the fourth quarter containing 14 calendar weeks. |
Basis of Presentation and Sum37
Basis of Presentation and Summary of Significant Accounting Policies - Overview (Details) | May 28, 2015 | Dec. 31, 2016restaurantcountry | Dec. 26, 2015restaurant | Dec. 27, 2014 | Mar. 16, 2010 |
Franchisor Disclosure [Line Items] | |||||
Equity interest purchased | 100.00% | ||||
Fiscal period duration | 371 days | 364 days | 364 days | ||
Common Stock | |||||
Franchisor Disclosure [Line Items] | |||||
Business acquisition, equity interest issued or issuable, number of shares issued per share | 0.545 | ||||
Common Stock Option | |||||
Franchisor Disclosure [Line Items] | |||||
Business acquisition, equity interest issued or issuable, number of options issued per option | 0.545 | ||||
Franchised Units | |||||
Franchisor Disclosure [Line Items] | |||||
Number of restaurants | 977 | 826 | |||
Franchised Units | United States | |||||
Franchisor Disclosure [Line Items] | |||||
Number of restaurants | 901 | ||||
Franchised Units | Non-US | |||||
Franchisor Disclosure [Line Items] | |||||
Number of restaurants | 76 | ||||
Number of countries in which the entity operates | country | 5 | ||||
Entity Operated Units | |||||
Franchisor Disclosure [Line Items] | |||||
Number of restaurants | 21 | 19 |
Basis of Presentation and Sum38
Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - Equipment, furniture and fixtures | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 7 years |
Basis of Presentation and Sum39
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies - Consideration from Vendors (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Franchisor Disclosure [Line Items] | |||
Incentives From Vendors Recognized | $ 6.5 | $ 4.8 | $ 4.7 |
Cost of Sales | |||
Franchisor Disclosure [Line Items] | |||
Incentives From Vendors Recognized | $ 1 | $ 0.7 | $ 1.2 |
Basis of Presentation and Sum40
Basis of Presentation and Summary of Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Franchisor Disclosure [Line Items] | |||
Percentage of revenue collected for advertising fund | 2.00% | ||
Advertising expense | $ 0.1 | $ 0.2 | $ 0.3 |
Selling, General and Administrative Expenses | |||
Franchisor Disclosure [Line Items] | |||
Franchise advertising fund discretionary contributions | 0.9 | 1.5 | |
Cost of Sales | |||
Franchisor Disclosure [Line Items] | |||
Franchise advertising fund expenses | $ 1.5 | $ 1.4 | $ 1.2 |
Basis of Presentation and Sum41
Basis of Presentation and Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Operating Leased Assets [Line Items] | |
Possession period before restaurant's opening date | 2 months |
Maximum | |
Operating Leased Assets [Line Items] | |
Possession period before restaurant's opening date | 3 months |
Basis of Presentation and Sum42
Basis of Presentation and Summary of Significant Accounting Policies - Business Segments (Details) | Dec. 31, 2016restaurantcountry | Dec. 26, 2015restaurant |
Franchised Units | ||
Segment Reporting Information [Line Items] | ||
Number of restaurants | 977 | 826 |
Entity Operated Units | ||
Segment Reporting Information [Line Items] | ||
Number of restaurants | 21 | 19 |
Non-US | Franchised Units | ||
Segment Reporting Information [Line Items] | ||
Number of countries in which the entity operates | country | 5 | |
Number of restaurants | 76 |
Basis of Presentation and Sum43
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) $ in Thousands | 3 Months Ended |
Dec. 26, 2015USD ($) | |
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 shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Basic weighted average shares outstanding | 28,745 | 28,725 | 28,646 | 28,586 | 28,581 | 28,581 | 26,689 | 26,290 | 28,637 | 27,497 | 25,846 |
Dilutive stock options | 346 | 319 | 358 | ||||||||
Diluted weighted average shares outstanding | 29,114 | 29,014 | 28,989 | 28,967 | 28,951 | 28,891 | 26,970 | 26,607 | 28,983 | 27,816 | 26,204 |
Employee Stock Option | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4 | 11 | 83 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Nonrecurring - Level 2 - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan facility (1) | $ 68,250 | $ 95,500 |
Revolving credit facility (1) | 83,000 | |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan facility (1) | 68,250 | 95,500 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Revolving credit facility (1) | 0 | |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Revolving credit facility (1) | $ 83,000 | $ 0 |
Divestitures (Details)
Divestitures (Details) - Disposal Group, Not Discontinued Operations $ in Thousands | Feb. 28, 2014USD ($)restaurant |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Count of restaurants sold | restaurant | 5 |
Carrying value | $ 1,000 |
Net assets | 610 |
Allocated goodwill | 442 |
Proceeds from sale of restaurants | 1,100 |
Selling, General and Administrative Expenses | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gain on disposal | $ 100 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 3,199 | $ 3,404 |
Vendor rebates receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 1,459 | 2,484 |
Royalties receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 883 | 710 |
Gift card receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 672 | 0 |
Other receivables, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 185 | $ 210 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 13,964 | $ 12,714 | |
Less: accumulated deprecation | (8,965) | (8,121) | |
Property and equipment, net | 4,999 | 4,593 | |
Depreciation | 1,600 | 1,300 | $ 1,500 |
Equipment, furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 7,682 | 7,245 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,081 | 5,457 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 201 | $ 12 |
Intangible Assets and Goodwil49
Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)reporting_unit | Dec. 26, 2015USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Number of reporting units | reporting_unit | 2 | |
Goodwill | $ | $ 45,128 | $ 45,128 |
Intangible Assets and Goodwil50
Intangible Assets and Goodwill - Intangible Assets Excluding Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived assets | $ 32,700 | $ 32,700 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | (9,751) | (8,369) |
Definite-lived assets | $ 16,914 | 18,296 |
Weighted average amortization period | 19 years 9 months 18 days | |
Intangible assets, net | $ 49,614 | 50,996 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived assets, gross | 26,300 | 26,300 |
Definite-lived assets | $ 16,914 | 18,296 |
Weighted average amortization period | 20 years | |
Proprietary software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 5 years | |
Noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 2 years 9 months 18 days | |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived assets | $ 32,700 | 32,700 |
Other non-current assets | Proprietary software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived assets, gross | 115 | 115 |
Other non-current assets | Noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived assets, gross | $ 250 | $ 250 |
Intangible Assets and Goodwil51
Intangible Assets and Goodwill - Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1,400 | $ 1,400 | $ 1,400 |
Fiscal year 2017 | 1,347 | ||
Fiscal year 2018 | 1,334 | ||
Fiscal year 2019 | 1,322 | ||
Fiscal year 2020 | 1,310 | ||
Fiscal year 2021 | 1,298 | ||
Thereafter | 10,303 | ||
Total | $ 16,914 | $ 18,296 |
Prepaid Expenses and Other Cu52
Prepaid Expenses and Other Current Assets and Other Current Liabilities - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 1,021 | $ 1,185 |
Prepaid gift card expenses | 387 | 0 |
Inventories | 226 | 182 |
Other current assets | 0 | 385 |
Total | $ 1,634 | $ 1,752 |
Prepaid Expenses and Other Cu53
Prepaid Expenses and Other Current Assets and Other Current Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued payroll and bonuses | $ 3,880 | $ 2,812 |
Current portion of deferred revenues | 1,547 | 1,744 |
Gift card liability | 936 | 108 |
Taxes payable | 895 | 161 |
Accrued interest | 29 | 660 |
Other accrued liabilities | 1,954 | 2,059 |
Total | $ 9,241 | $ 7,544 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Current expense | |||
Federal | $ 8,854 | $ 5,813 | $ 6,068 |
State | 847 | 736 | 606 |
Foreign | 132 | 236 | 168 |
Deferred expense (benefit) | |||
Federal | (662) | (802) | (1,430) |
State | (52) | (244) | (100) |
Income tax expense | $ 9,119 | $ 5,739 | $ 5,312 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Expected income tax expense at statutory rate | $ 8,594 | $ 5,546 | $ 4,943 |
Permanent differences | 92 | 64 | 53 |
State tax expense, net of federal benefit | 395 | 544 | 15 |
Foreign tax expense | 132 | 236 | 168 |
Foreign tax credits | (132) | (236) | (168) |
Increase in unrecognized tax benefit | 185 | 104 | 28 |
Valuation allowance | 0 | (317) | 306 |
Other | (147) | (202) | (33) |
Income tax expense | $ 9,119 | $ 5,739 | $ 5,312 |
Maximum | |||
Income Taxes [Line Items] | |||
Federal statutory tax rate | 35.00% | ||
Domestic Tax Authority | Minimum | |||
Income Taxes [Line Items] | |||
Federal statutory tax rate | 34.00% | ||
Domestic Tax Authority | Maximum | |||
Income Taxes [Line Items] | |||
Federal statutory tax rate | 35.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 |
Deferred tax assets: | ||
Deferred revenue | $ 3,394 | $ 3,383 |
Accrued bonus | 706 | 424 |
Property and equipment | 136 | 66 |
Equity compensation | 818 | 569 |
Deferred rent | 453 | 397 |
Intangible assets | 593 | 788 |
Other | 248 | 458 |
NOL/credits | 443 | 443 |
Valuation allowance | (482) | (482) |
Deferred tax assets, net of valuation allowance | 6,309 | 6,046 |
Deferred tax liabilities: | ||
Intangible assets | (18,613) | (19,064) |
Deferred tax liabilities | (18,613) | (19,064) |
Deferred tax liabilities, net | (12,304) | $ (13,018) |
Domestic Tax Authority | ||
Deferred tax assets: | ||
Valuation allowance | (39) | |
State and Local Jurisdiction | ||
Deferred tax assets: | ||
Valuation allowance | $ (443) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Tax Credit Carryforward [Line Items] | |||
Valuation allowance | $ 482 | $ 482 | |
Employee benefits | 4,300 | ||
Excess tax benefit of stock-based compensation | 1,163 | 593 | $ 749 |
State and Local Jurisdiction | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforward | 23,300 | $ 23,300 | |
Valuation allowance | 443 | ||
Domestic Tax Authority | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowance | $ 39 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | $ 465 | $ 129 | $ 94 |
Additions for tax positions of prior years | 0 | 0 | 0 |
Subtractions for tax positions of prior years | 0 | 0 | 0 |
Additions for tax positions of current year | 137 | 336 | 35 |
Subtractions for tax positions of current year | 0 | 0 | 0 |
Unrecognized tax benefits, end of period | 602 | 465 | $ 129 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 23 | ||
Accrued interest and penalties on unrecognized tax benefits | $ 116 | $ 68 |
Debt Obligations Debt Obligatio
Debt Obligations Debt Obligations - Components of Long-term Debt (Details) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 26, 2015 | Mar. 28, 2015 |
Debt Instrument [Line Items] | ||||
Current portion of debt | $ (3,500,000) | $ 0 | ||
Long-term debt, net | 147,217,000 | 95,008,000 | ||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Term loan | 68,250,000 | $ 70,000,000 | 95,500,000 | $ 132,500,000 |
Debt issuance costs | (533,000) | (492,000) | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 83,000,000 | $ 0 |
Debt Obligations - Senior Secur
Debt Obligations - Senior Secured Credit Facility (Details) - USD ($) | Jun. 30, 2016 | Jun. 27, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Mar. 28, 2015 |
Debt Instrument [Line Items] | |||||||
Line of credit facility, current borrowing capacity | $ 180,000,000 | $ 107,500,000 | $ 137,500,000 | ||||
Dividends paid | $ (83,268,000) | $ (47,999,000) | |||||
Debt Issuance, Accounted for as a Modification | 90,000,000 | ||||||
Debt Issuance, Accounted for as New Debt | 90,000,000 | ||||||
Debt issuance cost | 1,300,000 | 728,000 | |||||
Debt issuance costs, expensed | 100,000 | 528,000 | |||||
Debt issuance costs, capitalized | 1,200,000 | 200,000 | |||||
Previously capitalized financing costs, expensed | 200,000 | ||||||
Principle payments on long-term debt | 109,250,000 | 38,218,000 | $ 8,779,000 | ||||
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Term loan | 70,000,000 | $ 68,250,000 | 95,500,000 | 132,500,000 | |||
Repayments of Lines of Credit | (85,500,000) | ||||||
Principle payments on long-term debt | $ 32,000,000 | ||||||
Secured Debt | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.50% | 1.00% | |||||
Secured Debt | Minimum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.50% | 2.00% | |||||
Secured Debt | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.25% | 2.00% | |||||
Secured Debt | Maximum | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 3.25% | 3.00% | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, current borrowing capacity | $ 110,000,000 | 5,000,000 | |||||
Term loan | $ 83,000,000 | $ 0 | |||||
Debt instrument, interest rate, end of period | 3.27% | 2.83% | |||||
Repayments of Lines of Credit | $ (12,000,000) | ||||||
Revolving Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | ||||||
Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Term loan | $ 0 | ||||||
Line of credit facility, remaining borrowing capacity | $ 3,000,000 | ||||||
Other (Income) Expense | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Previously capitalized financing costs, expensed | $ 172,000 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Maturities (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
Fiscal year 2017 | $ 3,500 |
Fiscal year 2018 | 3,500 |
Fiscal year 2019 | 2,625 |
Fiscal year 2020 | 3,500 |
Fiscal year 2021 | 138,125 |
Total | $ 151,250 |
Commitments and Contingencies62
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Fiscal year 2017 | $ 1,725 | ||
Fiscal year 2018 | 1,544 | ||
Fiscal year 2019 | 1,310 | ||
Fiscal year 2020 | 1,185 | ||
Fiscal year 2021 | 1,028 | ||
Thereafter | 4,385 | ||
Total | 11,177 | ||
Rent expense | $ 1,900 | $ 2,000 | $ 1,900 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Matching contributions | $ 425 | $ 332 | $ 84 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 855,000 | 1,177,000 | |
Grant date fair value of stock options, vested | $ 1 | $ 0.7 | $ 0.9 |
Intrinsic value of stock options | 3.8 | 3 | 2.7 |
Stock-based compensation expense, unrecognized | $ 2 | ||
Stock-based compensation expense, recognition period | 2 years 1 month 6 days | ||
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 | 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 | $ 25.59 | ||
Stock-based compensation expense, recognition period | 2 years 10 months 24 days | ||
2015 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance (in shares) | 3,304,115 | ||
Stock options outstanding (in shares) | 758,612 | ||
Shares available for future grants (in shares) | 358,306 | ||
2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance (in shares) | 2,143,589 | ||
Stock options outstanding (in shares) | 96,435 | ||
Shares available for future grants (in shares) | 2,047,154 | ||
2010 Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercisable period from date of grant | 10 years | ||
Additional Paid-In Capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1.2 | $ 1.2 | $ 1 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 31, 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 (in shares) | (166) | ||
Stock options canceled (in shares) | (192) | ||
Stock options outstanding (in shares) | 855 | 1,177 | 855 |
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) | 2.92 | ||
stock options canceled, weighted average exercise price (in usd per share) | 5.99 | ||
Stock options outstanding, weighted average exercise price (in usd per share) | $ 5.14 | $ 4.66 | $ 5.14 |
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 | $ 20,905 | $ 21,059 | $ 20,905 |
Stock options outstanding, weighted average remaining term | 6 years 9 months 18 days | 7 years 8 months 12 days |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-vested Shares (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested shares at beginning of year (in shares) | shares | 955 |
Granted (in shares) | shares | 36 |
Vested (in shares) | shares | (299) |
Forfeited (in shares) | shares | (192) |
Non-vested shares at beginning of year (in shares) | shares | 500 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested shares at beginning of year (in usd per share) | $ / shares | $ 4.88 |
Granted (in usd per share) | $ / shares | 24.34 |
Vested (in usd per share) | $ / shares | 2.64 |
Forfeited (in usd per share) | $ / shares | 5.99 |
Non-vested shares at beginning of year (in usd per share) | $ / shares | $ 7.19 |
Stock-Based Compensation - St67
Stock-Based Compensation - Stock Option Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest | 1.44% | 1.96% | 1.96% |
Expected life (years) | 6 years 2 months 12 days | 6 years 6 months | 6 years 6 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 52.00% | 52.00% | 50.80% |
Weighted-average Black-Scholes fair value per share at date of grant (in usd per share) | $ 13.74 | $ 8.87 | $ 3.87 |
Stock-Based Compensation - Divi
Stock-Based Compensation - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Dividends per share (in usd per share) | $ 2.90 | $ 1.83 | $ 0 |
Dividends paid | $ (83,268) | $ (47,999) | |
Reduction of exercise price of outstanding options (in usd per share) | $ 2.90 | $ 1.83 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incremental compensation cost | $ 94 | $ 537 |
Related Party Transactions (Det
Related Party Transactions (Details) - Majority Shareholder - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jun. 27, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | |
Related Party Transaction [Line Items] | |||
Loss on contract termination | $ 3.3 | ||
Related party transaction, expenses from transactions with related party | $ 3.5 | $ 0.4 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Revenue: | |||||||||||
Franchise segment | $ 57,071 | $ 46,688 | $ 38,032 | ||||||||
Company-owned restaurant sales | 34,288 | 31,281 | 29,417 | ||||||||
Total revenue | $ 24,752 | $ 21,810 | $ 22,723 | $ 22,074 | $ 20,577 | $ 19,134 | $ 19,232 | $ 19,026 | 91,359 | 77,969 | 67,449 |
Segment Profit: | |||||||||||
Operating income | 8,255 | $ 6,080 | $ 7,240 | $ 7,628 | 6,508 | $ 5,853 | $ 2,406 | $ 4,951 | 29,203 | 19,718 | 18,066 |
Interest expense, net | 4,396 | 3,477 | 3,684 | ||||||||
Other (income) expense, net | 254 | 396 | 84 | ||||||||
Income before taxes | 24,553 | 15,845 | 14,298 | ||||||||
Depreciation and amortization | 3,008 | 2,682 | 2,904 | ||||||||
Capital expenditures: | 2,056 | 1,915 | 1,510 | ||||||||
Total assets | 111,800 | 120,650 | 111,800 | 120,650 | |||||||
Goodwill | 45,128 | 45,128 | 45,128 | 45,128 | |||||||
Operating Segments | |||||||||||
Revenue: | |||||||||||
Total revenue | 91,359 | 77,969 | 67,449 | ||||||||
Segment Profit: | |||||||||||
Operating income | 31,376 | 25,438 | 20,684 | ||||||||
Depreciation and amortization | 3,008 | 2,682 | 2,904 | ||||||||
Capital expenditures: | 2,056 | 1,915 | 1,510 | ||||||||
Total assets | 104,753 | 106,127 | 104,753 | 106,127 | |||||||
Goodwill | 45,128 | 45,128 | 45,128 | 45,128 | |||||||
Corporate | |||||||||||
Segment Profit: | |||||||||||
Operating income | (2,173) | (5,720) | 2,618 | ||||||||
Total assets | 7,047 | 14,523 | 7,047 | 14,523 | |||||||
Segment Reconciling Items | |||||||||||
Segment Profit: | |||||||||||
Interest expense, net | (4,396) | (3,477) | (3,684) | ||||||||
Other (income) expense, net | (254) | (396) | (84) | ||||||||
Franchise segment | Operating Segments | |||||||||||
Revenue: | |||||||||||
Franchise segment | 57,071 | 46,688 | 38,032 | ||||||||
Segment Profit: | |||||||||||
Operating income | 25,850 | 19,701 | 15,213 | ||||||||
Depreciation and amortization | 2,092 | 1,812 | 1,868 | ||||||||
Capital expenditures: | 387 | 1,308 | 1,159 | ||||||||
Total assets | 94,889 | 97,412 | 94,889 | 97,412 | |||||||
Goodwill | 39,930 | 39,930 | 39,930 | 39,930 | |||||||
Company segment | Operating Segments | |||||||||||
Revenue: | |||||||||||
Company-owned restaurant sales | 34,288 | 31,281 | 29,417 | ||||||||
Segment Profit: | |||||||||||
Operating income | 5,526 | 5,737 | 5,471 | ||||||||
Depreciation and amortization | 916 | 870 | 1,036 | ||||||||
Capital expenditures: | 1,669 | 607 | $ 351 | ||||||||
Total assets | 9,864 | 8,715 | 9,864 | 8,715 | |||||||
Goodwill | $ 5,198 | $ 5,198 | $ 5,198 | $ 5,198 |
Quarterly Financial Data (una71
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 24,752 | $ 21,810 | $ 22,723 | $ 22,074 | $ 20,577 | $ 19,134 | $ 19,232 | $ 19,026 | $ 91,359 | $ 77,969 | $ 67,449 |
Operating income | 8,255 | 6,080 | 7,240 | 7,628 | 6,508 | 5,853 | 2,406 | 4,951 | 29,203 | 19,718 | 18,066 |
Net income | $ 4,312 | $ 2,753 | $ 4,079 | $ 4,290 | $ 3,795 | $ 3,173 | $ 584 | $ 2,554 | $ 15,434 | $ 10,106 | $ 8,986 |
Earnings per share | |||||||||||
Basic (in usd per share) | $ 0.15 | $ 0.10 | $ 0.14 | $ 0.15 | $ 0.13 | $ 0.11 | $ 0.02 | $ 0.10 | $ 0.54 | $ 0.37 | $ 0.35 |
Diluted (in usd per share) | $ 0.15 | $ 0.09 | $ 0.14 | $ 0.15 | $ 0.13 | $ 0.11 | $ 0.02 | $ 0.10 | $ 0.53 | $ 0.36 | $ 0.34 |
Weighted average shares outstanding | |||||||||||
Basic (in shares) | 28,745 | 28,725 | 28,646 | 28,586 | 28,581 | 28,581 | 26,689 | 26,290 | 28,637 | 27,497 | 25,846 |
Diluted weighted average number of common shares (in shares) | 29,114 | 29,014 | 28,989 | 28,967 | 28,951 | 28,891 | 26,970 | 26,607 | 28,983 | 27,816 | 26,204 |