Wingstop (WING) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 01, 2017	May 05, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Wingstop Inc.
Entity Central Index Key	1,636,222
Current Fiscal Year End Date	--12-30
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 1, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		28,977,030
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 3,436	$ 3,750
Accounts receivable, net	3,259	3,199
Prepaid expenses and other current assets	1,566	1,634
Advertising fund assets, restricted	4,596	2,533
Total current assets	12,857	11,116
Property and equipment, net	4,993	4,999
Goodwill	45,128	45,128
Trademarks	32,700	32,700
Other non-current assets	900	943
Total assets	113,155	111,800
Current liabilities
Accounts payable	1,797	1,458
Other current liabilities	6,468	9,241
Long-term Debt, Current Maturities	3,500	3,500
Advertising fund liabilities, restricted	4,596	2,533
Total current liabilities	16,361	16,732
Long-term debt, net	141,373	147,217
Deferred revenues, net of current	8,043	7,868
Deferred income tax liabilities, net	12,373	12,304
Other non-current liabilities	2,266	2,307
Total liabilities	180,416	186,428
Commitments and contingencies (see note 6)
Stockholders' deficit
Common stock, $0.01 par value; 100,000,000 shares authorized; 28,977,030 and 28,747,392 shares issued and outstanding as of April 1, 2017 and December 31, 2016, respectively	290	287
Additional paid-in-capital	2,028	1,194
Accumulated deficit	(69,579)	(76,109)
Total stockholders' deficit	(67,261)	(74,628)
Total liabilities and stockholders' deficit	113,155	111,800
Customer Relationships [Member]
Customer relationships, net	$ 16,577	$ 16,914

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 01, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	28,977,030	28,747,392
Common stock, shares outstanding	28,977,030	28,747,392

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Apr. 01, 2017	Mar. 26, 2016
Revenue:
Royalty revenue and franchise fees		$ 18,023	$ 13,498
Company-owned restaurant sales		8,546	8,576
Total revenue		26,569	22,074
Costs and expenses:
Cost of sales	[1]	6,600	6,077
Selling, general and administrative		10,262	7,655
Depreciation and amortization		755	714
Total costs and expenses		17,617	14,446
Operating income		8,952	7,628
Interest expense, net		1,299	761
Other expense, net		0	28
Income before income tax expense		7,653	6,839
Income tax expense		1,123	2,549
Net income		$ 6,530	$ 4,290
Earnings per share
Basic (in usd per share)		$ 0.23	$ 0.15
Diluted (in usd per share)		$ 0.22	$ 0.15
Weighted average shares outstanding
Basic (in shares)		28,895	28,586
Diluted (in shares)		29,336	28,967
[1]	exclusive of depreciation and amortization, shown separately

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Operating activities
Net income	$ 6,530	$ 4,290
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	755	714
Deferred income taxes	69	7
Stock-based compensation expense	255	153
Amortization of debt issuance costs	73	38
Changes in operating assets and liabilities:
Accounts receivable	(60)	848
Prepaid expenses and other assets	76	537
Accounts payable and other current liabilities	(2,379)	1,589
Deferred revenue	120	(441)
Other non-current liabilities (attributable to deferred rent and lease incentives)	(41)	136
Cash provided by operating activities	5,398	7,871
Investing activities
Purchases of property and equipment	(419)	(309)
Cash used in investing activities	(419)	(309)
Financing activities
Proceeds from exercise of stock options	582	64
Repayments of long-term debt	(5,875)	(10,000)
Cash used in financing activities	(5,293)	(9,936)
Net change in cash and cash equivalents	(314)	(2,374)
Cash and cash equivalents at beginning of period	3,750	10,690
Cash and cash equivalents at end of period	$ 3,436	$ 8,316

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 01, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Basis of Presentation Wingstop Inc. (“Wingstop” or the “Company”) is in the business of franchising and operating Wingstop restaurants. As of April 1, 2017 , 927 franchised restaurants were in operation domestically and 83 international franchised restaurants were in operation across five countries. As of April 1, 2017 , the Company owned and operated 21 restaurants. The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Consequently, financial information and disclosures normally included in financial statements prepared annually in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted. Balance sheet amounts are as of April 1, 2017 and December 31, 2016 and operating results are for the thirteen weeks ended April 1, 2017 and March 26, 2016 . In the Company’s opinion, all necessary adjustments have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying interim unaudited consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2016 . The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2017 and 2016 have 52 weeks and 53 weeks, respectively. Advertising Fund WRI administers the Wingstop Restaurants Advertising Fund (“Ad Fund”), which is used for various forms of advertising for the Wingstop brand. The revenues, expenses and cash flows of the Ad Fund are not included in the Consolidated Statements of Operations or Consolidated Statements of Cash Flows because the Company does not have complete discretion over the usage of the funds. Beginning in fiscal year 2017, in conjunction with the launch of national advertising, the advertising fund contribution collected from Wingstop restaurant franchisees and WRI-owned restaurants increased from 2% to 3% of gross sales. This change is not an increase in the 4% of the restaurants’ gross sales that has historically been required to be spent on advertising according to our franchise agreement, but rather a reallocation of the 4% . For the thirteen weeks ended April 1, 2017 and March 26, 2016 the Company made discretionary contributions to the Ad Fund totaling $2.9 million and $0.6 million , respectively, for the purpose of supplementing the national advertising campaign. Recent Accounting Pronouncements 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 will 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 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. This new guidance 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 this new guidance on the consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which was issued to simplify accounting for several aspects of share-based payment transactions, including the income tax impact, classification on the statement of cash flows and forfeitures. We adopted this new standard on January 1, 2017. As a result, the recognition of excess tax benefits are reflected in our provision for income taxes in the Consolidated Statement of Operations rather than Stockholders’ deficit in the Consolidated Balance Sheet for all periods after fiscal year 2016. This provision was required to be applied prospectively. For the quarter ended April 1, 2017 , we recognized $1.7 million of excess tax benefits in income tax expense in the Statement of Operations. Excess tax benefits are now reported in cash flows from operating activities rather than cash flows from financing activities in the Consolidated Statement of Cash Flows. We elected to apply this change in presentation retrospectively, and thus, prior periods have been adjusted, resulting in an increase to cash provided by operating activities and cash used in financing activities of $0.4 million for the quarter ended March 26, 2016 . This new standard allows entities to make an accounting policy election to either estimate the number of awards that are expected to vest, as previously required, or account for forfeitures when they occur. We have elected to recognize forfeitures in the period they occur. This change in accounting policy did not result in a material impact to the Consolidated Statement of Operations.

Earnings per Share (Notes)

Earnings per Share (Notes)	3 Months Ended
	Apr. 01, 2017
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and restricted stock units, determined using the treasury stock method. For the thirteen weeks ended April 1, 2017 , approximately 6,000 stock options and 56,000 restricted stock units were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. For the thirteen weeks ended March 26, 2016 , approximately 3,000 stock options were excluded from the dilutive earnings per share calculation because the effect would have been anti-dilutive. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Weeks Ended April 1, March 26, Basic weighted average shares outstanding 28,895 28,586 Dilutive shares 441 381 Diluted weighted average shares outstanding 29,336 28,967

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 01, 2017
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 April 1, 2017 December 31, 2016 Carrying Value (2) Fair Value Carrying Value (2) Fair Value Senior Secured Credit Facility: Term loan facility (1) Level 2 $ 67,375 $ 67,375 $ 68,250 $ 68,250 Revolving credit facility (1) Level 2 $ 78,000 $ 78,000 $ 83,000 $ 83,000 (1) The fair value of long-term debt was estimated using available market information. (2) Excluding issuance costs netted on the face of the Balance Sheet. The Company also measures certain non-financial assets at fair value on a non-recurring basis, primarily long-lived assets, intangible assets and goodwill, in connection with our periodic evaluations of such assets for potential impairment.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 01, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense and the effective tax rate were $1.1 million and 14.7% , respectively, for the thirteen weeks ended April 1, 2017 , and $2.5 million and 37.3% , respectively, for the thirteen weeks ended March 26, 2016 . Income tax expense for the thirteen weeks ended April 1, 2017 includes $1.7 million in tax benefits resulting from the recognition of excess tax benefits from share-based compensation in income tax expense rather than paid-in capital due to the adoption of ASU 2016-09, which resulted in a lower effective tax rate for the thirteen weeks ended April 1, 2017 compared to the prior year period.

Debt Obligations

Debt Obligations	3 Months Ended
	Apr. 01, 2017
Debt Disclosure [Abstract]
Debt Obligations	Debt Obligations The senior secured credit facility consists of 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 . As of April 1, 2017 , the term loan facility and the revolving credit facility had outstanding balances of $67.4 million and $78.0 million , respectively, bearing interest at 3.40% . In 2017 , the Company made payments of $5.0 million on the outstanding principal balance of its revolving credit facility. The senior secured credit facility is secured by substantially all assets of the Company and requires compliance with certain financial and non-financial covenants. As of April 1, 2017 , the Company was in compliance with all covenants. As of April 1, 2017 , the scheduled principal payments on debt were as follows (in thousands): Remainder of fiscal year 2017 $ 2,625 Fiscal year 2018 3,500 Fiscal year 2019 2,625 Fiscal year 2020 3,500 Fiscal year 2021 133,125 Total $ 145,375

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Wingstop Restaurants Inc. (“WRI”) leases certain office and retail space and equipment under non-cancelable operating leases with terms expiring at various dates through July 2031 . A schedule of future minimum rental payments required under our operating leases, excluding contingent rent, that have initial or remaining non-cancelable lease terms in excess of one year, as of April 1, 2017 , is as follows (in thousands): Remainder of fiscal year 2017 $ 1,295 Fiscal year 2018 1,544 Fiscal year 2019 1,310 Fiscal year 2020 1,184 Fiscal year 2021 1,028 Fiscal year 2022 971 Thereafter 3,414 Total $ 10,746 Rent expense under cancelable and non-cancelable leases was $491,000 and $464,000 for the thirteen weeks ended April 1, 2017 and March 26, 2016 , respectively. The Company is subject to legal proceedings, claims and liabilities, such as employment-related claims and premises-liability cases, which arise in the ordinary course of business and are generally covered by insurance. In the opinion of management, the amount of ultimate liability with respect to those actions should not have a material adverse impact on financial position, results of operations or cash flows.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Apr. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation 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 $255,000 in stock compensation expense for the thirteen weeks ended April 1, 2017 , with a corresponding increase to additional paid-in-capital. Stock compensation expense is included in Selling, general & administrative expense (SG&A) in the Consolidated Statement of Operations. Stock Options 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 31, 2016 855 $ 5.14 $ 20,905 6.8 Granted — $ — Exercised (217 ) $ 2.67 Canceled (1 ) $ 23.26 Outstanding - April 1, 2017 637 $ 5.96 $ 14,217 6.8 The total grant-date fair value of stock options vested during the thirteen weeks ended April 1, 2017 was $873,000 . The total intrinsic value of stock options exercised during the thirteen weeks ended April 1, 2017 was $5.5 million . As of April 1, 2017 , total unrecognized compensation expense related to unvested stock options was $1.8 million , which is expected to be recognized over a weighted-average period of 2.4 years. Restricted Stock Units and Performance Stock Units The following table summarizes activity related to restricted stock units and performance stock units (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Performance Stock Units Weighted Average Grant Date Fair Value Outstanding - December 31, 2016 — $ — — $ — Granted 96 26.68 84 27.18 Released — — — — Canceled (1 ) 26.30 — — Outstanding - April 1, 2017 95 $ 26.68 84 $ 27.18 The fair value of restricted stock units and performance stock units are based on the closing market price of the stock on the date of grant. The restricted stock units granted during the thirteen weeks ended April 1, 2017 vest over a three year service period. As of April 1, 2017 , total unrecognized compensation expense related to unvested restricted stock units was $2.4 million which is expected to be recognized over a weighted-average period of 2.9 years. The performance stock units vest based on the outcome of certain performance criteria. For performance stock units granted during the thirteen weeks ended April 1, 2017 , the amount of units that can be earned range from 0% to 100% of the number of performance awards granted, based on the achievement of certain adjusted EBITDA targets, as defined by the plan, over a performance period of one to three years. The compensation expense related to the performance stock units is recognized over the vesting period when the achievement of the performance conditions become probable. As of April 1, 2017 , total unrecognized compensation expense related to unvested performance stock units was $1.8 million which is expected to be recognized over a weighted-average period of 2.9 years.

Business Segments

Business Segments	3 Months Ended
	Apr. 01, 2017
Segment Reporting [Abstract]
Business Segments	Business Segments The Franchise segment consists of domestic and international franchise restaurants, which represent the majority of our system-wide restaurants. As of April 1, 2017 , the franchise operations segment consisted of 1,010 restaurants operated by Wingstop franchisees in the United States and five countries outside of the United States as compared to 854 franchised restaurants in operation as of March 26, 2016 . Franchise operations revenue consists primarily of franchise royalty revenue, sales of franchise and development fees, international territory fees, and other revenue. As of April 1, 2017 , the Company segment consisted of 21 company-owned restaurants, located in the United States, as compared to 19 company-owned restaurants as of March 26, 2016 . Company restaurant sales are for food and beverage sales at company-owned restaurants. Company restaurant expenses are operating expenses at company-owned restaurants and include food, beverage, labor, benefits, utilities, rent and other operating costs. Information on segments and a reconciliation to income before taxes are as follows (in thousands): Thirteen Weeks Ended April 1, March 26, Revenue: Franchise segment $ 18,023 $ 13,498 Company segment 8,546 8,576 Total segment revenue $ 26,569 $ 22,074 Segment Profit: Franchise segment $ 7,873 $ 6,372 Company segment 1,079 1,706 Total segment profit 8,952 8,078 Corporate and other (1) — 450 Interest expense, net 1,299 761 Other (income) expense, net — 28 Income before taxes $ 7,653 $ 6,839 (1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of expenses associated with our public offerings.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Apr. 01, 2017
Accounting Policies [Abstract]
Fiscal Year End	The Company uses a 52/53-week fiscal year that ends on the last Saturday of the calendar year. Fiscal years 2017 and 2016 have 52 weeks and 53 weeks, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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 will 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 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. This new guidance 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 this new guidance on the consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which was issued to simplify accounting for several aspects of share-based payment transactions, including the income tax impact, classification on the statement of cash flows and forfeitures. We adopted this new standard on January 1, 2017. As a result, the recognition of excess tax benefits are reflected in our provision for income taxes in the Consolidated Statement of Operations rather than Stockholders’ deficit in the Consolidated Balance Sheet for all periods after fiscal year 2016. This provision was required to be applied prospectively. For the quarter ended April 1, 2017 , we recognized $1.7 million of excess tax benefits in income tax expense in the Statement of Operations. Excess tax benefits are now reported in cash flows from operating activities rather than cash flows from financing activities in the Consolidated Statement of Cash Flows. We elected to apply this change in presentation retrospectively, and thus, prior periods have been adjusted, resulting in an increase to cash provided by operating activities and cash used in financing activities of $0.4 million for the quarter ended March 26, 2016 . This new standard allows entities to make an accounting policy election to either estimate the number of awards that are expected to vest, as previously required, or account for forfeitures when they occur. We have elected to recognize forfeitures in the period they occur. This change in accounting policy did not result in a material impact to the Consolidated Statement of Operations.

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Apr. 01, 2017
Earnings Per Share [Abstract]
Schedule of Reconciliation of Basic Shares Outstanding to Diluted Shares Outstanding	Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Weeks Ended April 1, March 26, Basic weighted average shares outstanding 28,895 28,586 Dilutive shares 441 381 Diluted weighted average shares outstanding 29,336 28,967

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 01, 2017
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 April 1, 2017 December 31, 2016 Carrying Value (2) Fair Value Carrying Value (2) Fair Value Senior Secured Credit Facility: Term loan facility (1) Level 2 $ 67,375 $ 67,375 $ 68,250 $ 68,250 Revolving credit facility (1) Level 2 $ 78,000 $ 78,000 $ 83,000 $ 83,000 (1) The fair value of long-term debt was estimated using available market information. (2) Excluding issuance costs netted on the face of the Balance Sheet.

Debt Obligations Debt Obligatio

Debt Obligations Debt Obligations - Schedule of Maturities (Tables)	3 Months Ended
	Apr. 01, 2017
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt [Table Text Block]	As of April 1, 2017 , the scheduled principal payments on debt were as follows (in thousands): Remainder of fiscal year 2017 $ 2,625 Fiscal year 2018 3,500 Fiscal year 2019 2,625 Fiscal year 2020 3,500 Fiscal year 2021 133,125 Total $ 145,375

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Apr. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]	A schedule of future minimum rental payments required under our operating leases, excluding contingent rent, that have initial or remaining non-cancelable lease terms in excess of one year, as of April 1, 2017 , is as follows (in thousands): Remainder of fiscal year 2017 $ 1,295 Fiscal year 2018 1,544 Fiscal year 2019 1,310 Fiscal year 2020 1,184 Fiscal year 2021 1,028 Fiscal year 2022 971 Thereafter 3,414 Total $ 10,746

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Apr. 01, 2017
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 31, 2016 855 $ 5.14 $ 20,905 6.8 Granted — $ — Exercised (217 ) $ 2.67 Canceled (1 ) $ 23.26 Outstanding - April 1, 2017 637 $ 5.96 $ 14,217 6.8
Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block]	The following table summarizes activity related to restricted stock units and performance stock units (in thousands, except per share data): Restricted Stock Units Weighted Average Grant Date Fair Value Performance Stock Units Weighted Average Grant Date Fair Value Outstanding - December 31, 2016 — $ — — $ — Granted 96 26.68 84 27.18 Released — — — — Canceled (1 ) 26.30 — — Outstanding - April 1, 2017 95 $ 26.68 84 $ 27.18

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Apr. 01, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Information on segments and a reconciliation to income before taxes are as follows (in thousands): Thirteen Weeks Ended April 1, March 26, Revenue: Franchise segment $ 18,023 $ 13,498 Company segment 8,546 8,576 Total segment revenue $ 26,569 $ 22,074 Segment Profit: Franchise segment $ 7,873 $ 6,372 Company segment 1,079 1,706 Total segment profit 8,952 8,078 Corporate and other (1) — 450 Interest expense, net 1,299 761 Other (income) expense, net — 28 Income before taxes $ 7,653 $ 6,839 (1) Corporate and other includes corporate related items not allocated to reportable segments and consists primarily of expenses associated with our public offerings.

Basis of Presentation - Overvie

Basis of Presentation - Overview (Details) $ in Millions	3 Months Ended		12 Months Ended
	Apr. 01, 2017USD ($)restaurantcountry	Mar. 26, 2016USD ($)restaurant	Dec. 31, 2016
Franchisor Disclosure [Line Items]
Percentage of Revenue Collected for Advertising Fund	3.00%		2.00%
Percentage of Revenue Required to be Spent on Advertising	4.00%
Franchised Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	1,010	854
Franchised Units [Member] | UNITED STATES [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	927
Franchised Units [Member] | Non-US [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	83
Number of Countries in which Entity Operates | country	5
Entity Operated Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	21	19
Accounting Standards Update 2016-09 [Member]
Franchisor Disclosure [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $	$ (1.7)
New Accounting Pronouncement, Effect on Presentation in Statement of Cash Flows | $	0.4
Selling, General and Administrative Expenses [Member]
Franchisor Disclosure [Line Items]
Franchise Advertising Fund Discretionary Contributions | $	$ 2.9	$ 0.6

Earnings per Share (Details)

Earnings per Share (Details) - shares shares in Thousands	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic weighted average shares outstanding	28,895	28,586
Dilutive shares	441	381
Diluted weighted average shares outstanding	29,336	28,967
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	6	3
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	56

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Nonrecurring - Level 2 - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Secured Term Loan Facility	$ 67,375	$ 68,250
Senior Secured Revolving Credit Facility	78,000	83,000
Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Secured Term Loan Facility	67,375	68,250
Senior Secured Revolving Credit Facility	$ 78,000	$ 83,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income tax expense	$ 1,123	$ 2,549
Effective income tax rate	14.70%	37.30%
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	$ (1,700)

Debt Obligations - Senior Secur

Debt Obligations - Senior Secured Credit Facility (Details) - USD ($)	3 Months Ended
	Apr. 01, 2017	Jun. 30, 2016
Debt Instrument [Line Items]
Debt instrument, interest rate, end of period	3.40%
Secured Debt [Member]
Debt Instrument [Line Items]
Long-term Line of Credit	$ 67,400,000	$ 70,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity		$ 110,000,000
Long-term Line of Credit	78,000,000
Repayments of Lines of Credit	$ 5,000,000

Debt Obligations Debt Obligat26

Debt Obligations Debt Obligations - Schedule of Maturities (Details) $ in Thousands	Apr. 01, 2017USD ($)
Debt Disclosure [Abstract]
Remainder of fiscal year 2017	$ 2,625
Fiscal year 2018	3,500
Fiscal year 2019	2,625
Fiscal year 2020	3,500
Fiscal year 2021	133,125
Total	$ 145,375

Commitments and Contingencies27

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Commitments and Contingencies Disclosure [Abstract]
Remainder of fiscal year 2017	$ 1,295
Fiscal year 2018	1,544
Fiscal year 2019	1,310
Fiscal year 2020	1,184
Fiscal year 2021	1,028
Fiscal year 2022	971
Thereafter	3,414
Total	10,746
Rent expense	$ 491	$ 464

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Plan (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2017USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value of stock options, vested	$ 873
Intrinsic value of stock options	5,500
Stock-based compensation expense, unrecognized	$ 1,800
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense, recognition period	2 years 4 months 24 days
Additional Paid-in Capital [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 255

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Apr. 01, 2017	Dec. 31, 2016	Apr. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Stock options outstanding (in shares)			855
Stock options granted (in shares)			0
Stock options exercised			(217)
Stock options forfeited (in shares)			(1)
Stock options outstanding (in shares)	637	855	637
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)			$ 5.14
Stock options granted, weighted average exercise price (in usd per share)			0
Stock options exercised, weighted average exercise price (in usd per share)			2.67
Stock options forfeited, weighted average exercise price (in usd per share)			23.26
Stock options outstanding, weighted average exercise price (in usd per share)	$ 5.96	$ 5.14	$ 5.96
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Stock options outstanding, aggregate intrinsic value			$ 20,905
Stock options outstanding, aggregate intrinsic value	$ 14,217	$ 20,905	$ 14,217
Stock options outstanding, weighted average remaining term	6 years 9 months 18 days	6 years 9 months 18 days

Stock-Based Compensation Stock-

Stock-Based Compensation Stock-Based Compentsation - Schedule of Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock units and performance stock units outstanding (in shares)	95	0
Restricted stock units and performance stock units granted (in shares)	96
Restricted stock units and performance stock units released (in shares)	0
Restricted stock units and performance stock units canceled (in shares)	(1)
Restricted stock units and performance stock units outstanding, weighted average grant date fair value (in usd per share)	$ 26.68	$ 0
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)	26.68
Restricted stock units and performance stock units released, weighted average grant date fair value (in usd per share)	0
Restricted stock units and performance stock units canceled, weighted average grant date fair value (in usd per share)	$ 26.30
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 2.4
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 10 months 24 days
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock units and performance stock units outstanding (in shares)	84	0
Restricted stock units and performance stock units granted (in shares)	84
Restricted stock units and performance stock units released (in shares)	0
Restricted stock units and performance stock units canceled (in shares)	0
Restricted stock units and performance stock units outstanding, weighted average grant date fair value (in usd per share)	$ 27.18	$ 0
Restricted stock units and performance stock units granted, weighted average grant date fair value (in usd per share)	27.18
Restricted stock units and performance stock units released, weighted average grant date fair value (in usd per share)	0
Restricted stock units and performance stock units canceled, weighted average grant date fair value (in usd per share)	$ 0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 1.8
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 10 months 24 days
Performance Shares [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Performance Shares [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years

Business Segments Business Segm

Business Segments Business Segments - Restaurant Counts (Details)	Apr. 01, 2017restaurantcountry	Mar. 26, 2016restaurant
Franchised Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	1,010	854
Entity Operated Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	21	19
Non-US [Member] | Franchised Units [Member]
Franchisor Disclosure [Line Items]
Number of Restaurants	83
Number of Countries in which Entity Operates | country	5

Business Segments (Details)

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Mar. 26, 2016
Segment Reporting Information [Line Items]
Franchise segment	$ 18,023	$ 13,498
Company segment	8,546	8,576
Total revenue	26,569	22,074
Operating income	(8,952)	(7,628)
Interest expense, net	1,299	761
Other (income) expense, net	0	28
Income before taxes	7,653	6,839
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	26,569	22,074
Operating income	(8,952)	(8,078)
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating income	0	450
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Interest expense, net	1,299	761
Other (income) expense, net	0	28
Franchise Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Franchise segment	18,023	13,498
Operating income	(7,873)	(6,372)
Company Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Company segment	8,546	8,576
Operating income	$ (1,079)	$ (1,706)