Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2017 | Feb. 23, 2018 | |
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 | Large Accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Dec. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 29,112,040 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 892.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 4,063 | $ 3,750 |
Accounts receivable, net | 4,567 | 3,199 |
Prepaid expenses and other current assets | 4,334 | 1,634 |
Advertising fund assets, restricted | 2,944 | 2,533 |
Total current assets | 15,908 | 11,116 |
Property and equipment, net | 5,826 | 4,999 |
Goodwill | 46,557 | 45,128 |
Trademarks | 32,700 | 32,700 |
Customer relationships, net | 17,739 | 16,914 |
Other non-current assets | 3,278 | 943 |
Total assets | 119,836 | 111,800 |
Current liabilities | ||
Accounts payable | 1,752 | 1,458 |
Other current liabilities | 10,683 | 9,241 |
Current portion of debt | 3,500 | 3,500 |
Advertising fund liabilities, restricted | 2,944 | 2,533 |
Total current liabilities | 18,879 | 16,732 |
Long-term debt, net | 129,841 | 147,217 |
Deferred revenues, net of current | 8,427 | 7,868 |
Deferred income tax liabilities, net | 8,799 | 12,304 |
Other non-current liabilities | 2,142 | 2,307 |
Total liabilities | 168,088 | 186,428 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Common stock, $0.01 par value; 100,000,000 shares authorized; 29,092,669 and 28,747,392 shares issued and outstanding as of December 30, 2017 and December 31, 2016, respectively | 291 | 287 |
Additional paid-in-capital | 262 | 1,194 |
Accumulated deficit | (48,805) | (76,109) |
Total stockholders' deficit | (48,252) | (74,628) |
Total liabilities and stockholders' deficit | 119,836 | 111,800 |
Customer relationships | ||
Current assets | ||
Customer relationships, net | $ 15,567 | $ 16,914 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 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 (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 29,092,669 | 28,747,392 |
Common Stock, Shares, Outstanding | 29,092,669 | 28,747,392 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | ||
Revenue: | ||||
Royalty revenue and franchise fees | $ 68,483 | $ 57,071 | $ 46,688 | |
Company-owned restaurant sales | 37,069 | 34,288 | 31,281 | |
Total revenue | 105,552 | 91,359 | 77,969 | |
Costs and expenses: | ||||
Cost of sales | 28,745 | 25,308 | 22,219 | [1] |
Selling, general and administrative | 37,151 | 33,840 | 33,350 | |
Depreciation and amortization | 3,376 | 3,008 | 2,682 | |
Total costs and expenses | 69,272 | 62,156 | 58,251 | |
Operating income | 36,280 | 29,203 | 19,718 | |
Interest expense, net | 5,131 | 4,396 | 3,477 | |
Other expense, net | 0 | 254 | 396 | |
Income before income tax expense | 31,149 | 24,553 | 15,845 | |
Income tax expense | 3,845 | 9,119 | 5,739 | |
Net income | $ 27,304 | $ 15,434 | $ 10,106 | |
Earnings per share | ||||
Basic (in usd per share) | $ 0.94 | $ 0.54 | $ 0.37 | |
Diluted (in usd per share) | $ 0.93 | $ 0.53 | $ 0.36 | |
Weighted average shares outstanding | ||||
Basic (in shares) | 29,025 | 28,637 | 27,497 | |
Diluted (in shares) | 29,424 | 28,983 | 27,816 | |
Dividends per share (in usd per share) | $ 0.14 | $ 2.9 | $ 1.83 | |
[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. 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) | 329,000 | 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 | |||
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 27,304 | 27,304 | ||
Issuance of common stock, net (in shares) | 19,168 | |||
Issuance of common stock, net | $ 1 | (1) | ||
Exercise of stock options (in shares) | 326,000 | 326,109 | ||
Exercise of stock options | $ 1,318 | $ 3 | 1,315 | |
Stock-based compensation expense | 1,851 | 1,851 | ||
Dividends paid | $ (4,097) | (4,097) | ||
Balance (in shares) at Dec. 30, 2017 | 29,092,669 | 29,092,669 | ||
Balance at Dec. 30, 2017 | $ (48,252) | $ 291 | $ 262 | $ (48,805) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Operating activities | |||
Net income | $ 27,304 | $ 15,434 | $ 10,106 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 3,376 | 3,008 | 2,682 |
Deferred income taxes | (3,505) | (714) | (1,046) |
Stock-based compensation expense | 1,851 | 1,231 | 1,155 |
Amortization of Debt Issuance Costs and Discounts | 292 | 437 | 330 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,368) | 205 | (1,004) |
Prepaid expenses and other assets | (503) | (171) | (196) |
Accounts payable and other current liabilities | (876) | 3,648 | 1,169 |
Deferred revenue | 645 | 48 | 450 |
Other non-current liabilities | (167) | 203 | 214 |
Cash provided by operating activities | 27,049 | 23,329 | 13,860 |
Investing activities | |||
Purchases of property and equipment | (2,535) | (2,056) | (1,915) |
Acquisition of restaurants from franchisees | (3,949) | 0 | 0 |
Cash used in investing activities | (6,484) | (2,056) | (1,915) |
Financing activities | |||
Proceeds from issuance of common stock, net of expenses | 0 | 0 | 34,988 |
Proceeds from exercise of stock options | 1,318 | 485 | 478 |
Borrowings of long-term debt | 3,500 | 165,000 | 40,000 |
Repayments of long-term debt | (21,000) | (109,250) | (38,218) |
Payment of deferred financing costs | 0 | (1,180) | (227) |
Dividends paid | (4,070) | (83,268) | (47,999) |
Cash used in financing activities | (20,252) | (28,213) | (10,978) |
Net change in cash and cash equivalents | 313 | (6,940) | 967 |
Cash and cash equivalents at beginning of period | 3,750 | 10,690 | 9,723 |
Cash and cash equivalents at end of period | 4,063 | 3,750 | 10,690 |
Supplemental information: | |||
Cash paid for interest | 4,842 | 4,775 | 3,409 |
Cash paid for taxes | $ 10,096 | $ 7,230 | $ 5,362 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2017 | |
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 30, 2017 , 1,004 franchised restaurants were in operation domestically and 106 international franchised restaurants were in operation across eight countries. As of December 30, 2017 , WRI owned and operated 23 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 years 2017 and 2015 each consisted of 52 weeks, and fiscal year 2016 consisted of 53 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. No indications of impairment were identified during fiscal years 2017 , 2016 or 2015 . 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 $11.2 million , $6.5 million and $4.8 million , during fiscal years 2017 , 2016 and 2015 , respectively, of which $0.9 million , $1.0 million and $0.7 million was classified as a reduction in Cost of sales during fiscal years 2017 , 2016 and 2015 , respectively. (m) Advertising Expenses WRI administers the Wingstop Restaurants Advertising Fund (“Ad Fund”), for which WRI collects a percentage of gross sales from Wingstop restaurant franchisees and WRI-owned restaurants to be used for various forms of advertising for the Wingstop brand. 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 to the existing 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 types of advertising on which the 4% advertising fee will be spent. 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. WRI made discretionary contributions to the advertising fund for the purpose of supplementing the national advertising campaign of $5.6 million , $2.4 million , and $2.3 million during fiscal years 2017 , 2016 and 2015 , respectively, which are included in Selling, general and administrative expenses in the Consolidated Statements of Operations. Company operated restaurants incurred advertising expenses of $1.5 million in fiscal years 2017 and 2016 , and $1.4 million in fiscal year 2015 , 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 3% of gross sales for each respective year. In addition to the above, the Company incurred advertising expenses related to franchise sales of $0.1 million for fiscal years 2017 and 2016 , and $0.2 million for fiscal year 2015 , which are included in Selling, general and administrative expenses 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 30, 2017 , the franchise operations segment consisted of 1,110 restaurants operated by Wingstop franchisees in the United States and eight countries outside of the United States as compared to 977 franchised restaurants in operation as of December 31, 2016 . 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 30, 2017 , the Company segment consisted of 23 company-owned restaurants, located in the United States, as compared to 21 company-owned restaurants as of December 31, 2016 . 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 May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance for revenue recognition related to contracts with customers, except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. The new guidance provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new guidance is effective for the Company in fiscal year 2018. The Company will adopt this new guidance in fiscal year 2018 using the full retrospective transition method, which will result in restating each prior reporting period presented, fiscal years 2017 and 2016, in the year of adoption. Additionally, a cumulative effect adjustment will be recorded to the opening balance of accumulated deficit as of the first day of fiscal year 2016, the earliest period presented, which we expect to be $5.1 million . The expected impact of the new guidance is summarized below. In addition to these expected impacts to our financial results, the Company continues to evaluate the impact the adoption of this new guidance will have on financial statement disclosures, in addition to evaluating business processes and internal controls related to revenue recognition to assist in the ongoing application of the new guidance. Franchise Fees The adoption of the new guidance will change the timing of recognition of initial franchise fees, development fees, territory fees for our international business, and renewal and transfer fees. Currently, these fees are generally recognized upfront upon either opening of the respective restaurant, when a renewal agreement becomes effective, or upon transfer of a franchise agreement. The new guidance will generally require these fees to be recognized over the term of the related franchise license for the respective restaurant, which will result in an impact to revenue recognized for initial franchise fees and renewal fees. The new guidance will not change the recognition of royalty income. Advertising The adoption of the new guidance will change the reporting of advertising fund contributions from franchisees and the related advertising fund expenditures, which are not currently included in the consolidated statements of operations. The new guidance requires these advertising fund contributions and expenditures to be reported on a gross basis in the consolidated statements of operations, which will have an impact to our total revenues and expenses. However, we expect such advertising fund contributions and expenditures will be largely offsetting and therefore do not expect a significant impact on our reported net income. Additionally, advertising costs that have been incurred by the Company outside of the advertising funds have historically been included within general and administrative expenses, net, but will be included within advertising expenses in the consolidated statements of operations. Advertising expenses incurred by company-owned restaurants will continue to be included within cost of sales in the consolidated statements of operations. The table below presents the expected effects upon adoption these changes would have had on the Company’s financial statements in 2017 and 2016 (amounts in thousands, except per share data): Fiscal Year 2017 Fiscal Year 2016 As reported Effects of Adoption Upon Adoption As reported Effects of Adoption Upon Adoption Royalty revenue and franchise fees $ 68,483 $ (2,407 ) $ 66,076 $ 57,071 $ (2,596 ) $ 54,475 Advertising fees and related income — 30,174 30,174 — 14,561 14,561 Advertising expenses — 32,427 32,427 — 13,849 13,849 Selling, general and administrative 37,151 (2,253 ) 34,898 33,840 712 34,552 Net income $ 27,304 $ (3,364 ) $ 23,940 $ 15,434 $ (1,665 ) $ 13,769 Basic EPS $ 0.94 $ (0.12 ) $ 0.82 $ 0.54 $ (0.06 ) $ 0.48 Diluted EPS $ 0.93 $ (0.11 ) $ 0.82 $ 0.53 $ (0.06 ) $ 0.47 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): 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. The Company 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 Statements 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 fiscal year ended December 30, 2017 , we recognized $2.5 million of excess tax benefits in income tax expense in the Consolidated Statements of Operations. Excess tax benefits are included 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 $1.2 million and $0.8 million for the fiscal years ended December 31, 2016 and December 26, 2015 , respectively. This new standard allows entities to make an accounting policy election to either estimate the number of equity 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 Statements of Operations. |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 30, 2017 | |
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 stock units, determined using the treasury stock method. We had approximately 6,000 , 4,000 and 11,000 equity awards outstanding at December 30, 2017 , December 31, 2016 , and December 26, 2015 , 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 30, December 31, December 26, Basic weighted average shares outstanding 29,025 28,637 27,497 Dilutive shares 399 346 319 Diluted weighted average shares outstanding 29,424 28,983 27,816 |
Dividends (Notes)
Dividends (Notes) | 12 Months Ended |
Dec. 30, 2017 | |
Dividends [Abstract] | |
Dividends Disclosure [Text Block] | Dividends On August 3, 2017 , the Company’s Board of Directors declared a quarterly dividend of $0.07 per share of common stock for shareholders of record as of September 3, 2017 , which was paid on September 18, 2017 , totaling $2.0 million . On November 2, 2017 , the Company’s Board of Directors declared a quarterly dividend of $0.07 per share of common stock for shareholders of record as of December 4, 2017 , to be paid on December 19, 2017 , totaling approximately $2.0 million . Subsequent to the fourth quarter, on January 30, 2018 , the Board of Directors of the Company declared a special cash dividend of $3.17 per share payable on February 14, 2018 to its holders of common stock of record as of February 9, 2018 . Additionally, on February 22, 2018 , the Company’s Board of Directors declared a quarterly dividend of $0.07 per share of common stock for shareholders of record as of March 9, 2018 , to be paid on March 23, 2018 , totaling approximately $2.1 million . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 30, 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 December 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Senior Secured Credit Facility: Term loan facility (1) Level 2 $ 64,750 $ 64,750 $ 68,250 $ 68,250 Revolving credit facility (1) Level 2 $ 69,000 $ 69,000 $ 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. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 30, 2017 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivables, net, consist of the following (in thousands): December 30, December 31, Vendor rebates receivable $ 2,145 $ 1,459 Royalties receivable 987 883 Gift card receivable 1,184 672 Other receivables, net 251 185 Accounts receivable, net $ 4,567 $ 3,199 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following (in thousands): December 30, December 31, Equipment, furniture and fixtures $ 9,298 $ 7,682 Leasehold improvements 7,005 6,081 Construction in progress 183 201 Property and equipment, gross 16,486 13,964 Less: accumulated depreciation (10,660 ) (8,965 ) Property and equipment, net $ 5,826 $ 4,999 Depreciation expense was $1.9 million , $1.6 million and $1.3 million for the fiscal years ended December 30, 2017 , December 31, 2016 and December 26, 2015 , respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 30, 2017 | |
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, as well as the acquisition of restaurants from franchisees in 2017. 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. See Note 16 for the allocation of goodwill among the two reporting units. The following is a summary of goodwill balances and activity (in thousands): December 30, December 31, Balance, beginning of period $ 45,128 $ 45,128 Acquisition of restaurants 1,429 — Balance, end of period $ 46,557 $ 45,128 Intangible assets, excluding goodwill, consisted of the following (in thousands): December 30, December 31, 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 Franchise rights (1) 2,323 — 7.5 Proprietary software (1) 115 115 5.0 Noncompete agreements (1) 250 250 2.8 Less: accumulated amortization (11,249 ) (9,751 ) Definite-lived assets 17,739 16,914 18.8 Intangible assets, net $ 50,439 $ 49,614 (1) Included within Other non-current assets net of associated accumulated amortization within the Consolidated Balance Sheets. Amortization expense for definite-lived intangibles was $1.5 million for fiscal year 2017 and $1.4 million for fiscal years 2016 and 2015 . Estimated amortization expense, principally related to customer relationships, for the five succeeding years and the aggregate thereafter is (in thousands): Fiscal year 2018 $ 1,661 Fiscal year 2019 1,649 Fiscal year 2020 1,637 Fiscal year 2021 1,625 Fiscal year 2022 1,620 Thereafter 9,547 Total $ 17,739 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets and Other Current Liabilities | 12 Months Ended |
Dec. 30, 2017 | |
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 30, December 31, Prepaid expenses $ 946 $ 1,021 Federal income tax receivable 2,500 — Prepaid gift card expenses 672 387 Inventories 216 226 Total $ 4,334 $ 1,634 Other current liabilities consisted of the following (in thousands): December 30, December 31, Accrued payroll and bonuses $ 4,192 $ 3,880 Current portion of deferred revenues 1,795 1,547 Gift card liability 2,074 936 Taxes payable 163 895 Other accrued liabilities 2,459 1,983 Total $ 10,683 $ 9,241 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act, (the “TCJA”) was enacted. The TCJA includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. corporate tax rate from 35% to 21% , for tax years beginning after December 31, 2017. We recorded a benefit of $5.5 million in deferred income tax expense for the remeasurement of our net deferred tax liability at the 21% tax rate. The TCJA also provides for acceleration of depreciation for certain assets placed into service after September 27, 2017, as well as prospective changes beginning in 2018, including additional limitations on deductibility of executive compensation and employee meal benefits. The $5.5 million benefit represents what we believe is the impact of the TCJA. As the benefit is based on currently available information and interpretations, which are continuing to evolve, the benefit should be considered provisional. We will continue to analyze additional information and guidance related to the TCJA as supplemental legislation, regulatory guidance, or evolving technical interpretations become available. The final impacts may differ from the recorded amounts as of December 31, 2017, and we will continue to refine such amounts within the measurement period provided by Staff Accounting Bulletin No. 118. We expect to complete our analysis no later than the fourth quarter of 2018. Income tax expense (benefit) for the fiscal years 2017 , 2016 and 2015 consists of the following (in thousands): Fiscal Year December 30, December 31, December 26, Current expense Federal $ 6,204 $ 8,854 $ 5,813 State 800 847 736 Foreign 346 132 236 Deferred expense (benefit) Federal (3,645 ) (662 ) (802 ) State 140 (52 ) (244 ) Income tax expense $ 3,845 $ 9,119 $ 5,739 A reconciliation of income tax at the United States federal statutory tax rate (using a statutory tax rate of 35% ) to income tax expense for fiscal years 2017 , 2016 and 2015 in dollars is as follows (in thousands): Fiscal Year December 30, December 31, December 26, Expected income tax expense at statutory rate $ 10,902 $ 8,594 $ 5,546 Tax Act impact on deferred taxes (5,473 ) — — Permanent differences (2,300 ) 92 64 State tax expense, net of federal benefit 616 395 544 Foreign tax expense 347 132 236 Foreign tax credits (347 ) (132 ) (236 ) Increase in unrecognized tax benefit 114 185 104 Valuation allowance — — (317 ) Other (14 ) (147 ) (202 ) Income tax expense $ 3,845 $ 9,119 $ 5,739 The components of deferred tax assets (liabilities) are as follows (in thousands): December 30, 2017 December 31, 2016 Deferred tax assets: Deferred revenue $ 1,403 $ 3,394 Accrued bonus 53 706 Property and equipment — 136 Stock based compensation 607 818 Deferred rent 270 453 Intangible assets 191 593 Other 157 248 Net operating loss carryforwards and credits 443 443 Valuation allowance (482 ) (482 ) 2,642 6,309 Deferred tax liabilities: Intangible assets (11,302 ) (18,613 ) Property and equipment (139 ) — (11,441 ) (18,613 ) Net deferred tax liability $ (8,799 ) $ (12,304 ) The Company had a state net operating loss carry-forward of $23.3 million at December 30, 2017 and December 31, 2016 . The state net operating loss carry forwards begin to expire in 2030. As of December 30, 2017 , 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. As of December 31, 2016 , the Company had not recognized a deferred tax asset for excess tax benefits of $4.3 million related to net operating losses that result from excess stock-based compensation. Beginning in 2017, losses resulting from excess stock-based compensation are recognized immediately as a result of the adoption of ASU 2016-09. 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 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 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 78 Subtractions for tax positions of current year — Balance as of December 30, 2017 $ 680 The Company currently anticipates that none of the $680,000 of unrecognized tax benefits will be recognized as of December 30, 2017 . As of December 30, 2017 and December 31, 2016 , the accrued interest and penalties on the unrecognized tax benefits were $151,000 and $116,000 , 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. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Long-term debt consists of the following components (in thousands): December 30, 2017 December 31, 2016 Term loan $ 64,750 $ 68,250 Revolving credit facility 69,000 83,000 Debt issuance costs (409 ) (533 ) Less: current portion of debt (3,500 ) (3,500 ) Long-term debt, net $ 129,841 $ 147,217 On June 30, 2016, the Company entered into a $180.0 million new senior secured credit facility (the “2016 Facility”), which replaced the Company’s second amended and restated credit facility dated March 18, 2015 (the “2015 Facility”). The 2016 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 2016 Facility and cash on hand to refinance $85.5 million of indebtedness under the 2015 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 2016 Facility matures in June 2021 . As of December 30, 2017 and December 31, 2016 , the term loan facility had an outstanding balance of $64.8 million and $68.3 million , respectively, which bears interest at 3.69% and 3.27% , respectively. During the fiscal year ended December 30, 2017 , the Company made payments on the term loan totaling $3.5 million . 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 30, 2017 and December 31, 2016 , the revolving credit facility had an outstanding balance of $69.0 million and $83.0 million , respectively, which bears interest at 3.69% and 3.27% , respectively. During the fiscal year ended December 30, 2017 , the Company made payments on the revolving credit facility totaling $17.5 million and borrowings on the revolving credit facility of $3.5 million . 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 2016 Facility, the Company evaluated the refinancing of the 2015 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. In connection with the 2015 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 2015 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 2015 Facility had a maturity date of March 2020 . In conjunction with the 2015 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. 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 2015 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. 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 30, 2017 , the Company was in compliance with all financial covenants. As of December 30, 2017 , the scheduled principle payments on debt were as follows (in thousands): Fiscal year 2018 $ 3,500 Fiscal year 2019 2,625 Fiscal year 2020 3,500 Fiscal year 2021 124,125 Total $ 133,750 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2017 | |
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 2032 . 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 30, 2017 , is as follows (in thousands): Fiscal year 2018 $ 1,783 Fiscal year 2019 1,561 Fiscal year 2020 1,436 Fiscal year 2021 1,282 Fiscal year 2022 1,226 Thereafter 4,037 Total $ 11,325 Rent expense under cancelable and non-cancelable leases was $2.0 million , $1.9 million , and $2.0 million for the fiscal years ended December 30, 2017 , December 31, 2016 , and December 26, 2015 , respectively. The Company is subject to legal proceedings, claims and liabilities, such as employment-related claims and other 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. 30, 2017 | |
Retirement Benefits [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 $450,000 , $425,000 and $332,000 for fiscal years 2017 , 2016 and 2015 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 30, 2017 | |
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, 263,876 shares of common stock issuable upon exercise of currently outstanding options or vesting of restricted stock awards, and 1,871,698 shares available for future grants as of December 30, 2017 . The options and restricted stock awards 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 350,063 shares of common stock issuable upon exercise of currently outstanding options, and 456,407 shares available for future grants at December 30, 2017 . 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 27, 2014 1,466 $ 3.74 $ 7,551 8.0 Granted 106 16.75 Exercised (329 ) 1.45 Canceled (66 ) 1.17 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 Granted — — Exercised (326 ) 4.04 Canceled (109 ) 7.23 Outstanding - December 30, 2017 420 $ 5.45 $ 14,068 5.7 The total grant-date fair value of stock options vested during each of the fiscal years 2017 , 2016 and 2015 was $1.0 million , $1.0 million and $0.7 million , respectively. The total intrinsic value of stock options exercised was $8.1 million , $3.8 million and $3.0 million for fiscal years 2017 , 2016 and 2015 , 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 $1.9 million , $1.2 million and $1.2 million in stock compensation expense for fiscal years 2017 , 2016 and 2015 , respectively, with a corresponding increase to additional paid-in-capital. Stock compensation expense is included in Selling, general and administrative expenses in the Consolidated Statements of Operations. A summary of the status of non-vested shares as of December 30, 2017 and the changes during the period then ended is presented below (in thousands, except per share data): December 30, 2017 Shares Weighted average grant-date fair value Non-vested shares at beginning of year 500 $ 7.19 Granted — $ — Vested (220 ) $ 5.33 Forfeited (109 ) $ 7.23 Non-vested shares at end of year 171 $ 9.54 As of December 30, 2017 , there was $0.8 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 1.5 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 Risk-free interest 1.44 % 1.96 % Expected life (years) 6.2 6.5 Expected dividend yield 0 % 0 % Volatility 52.0 % 52.0 % Weighted-average Black-Scholes fair value per share at date of grant $ 13.74 $ 8.87 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. 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 105 27.02 94 27.52 Released — — — — Canceled (11 ) 26.30 (8 ) 26.30 Outstanding - December 30, 2017 94 $ 27.11 86 $ 27.63 The fair value of restricted stock units and performance stock units is based on the closing price on the date of grant. The restricted stock units granted during fiscal year 2017 vest over a three year service period. As of December 30, 2017 , total unrecognized compensation expense related to unvested restricted stock units was $1.9 million which is expected to be recognized over a weighted-average period of 2.2 years . The performance stock units vest based on the outcome of certain performance criteria. For performance stock units granted during fiscal year 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 December 30, 2017 , total unrecognized compensation expense related to unvested performance stock units was $1.4 million , which is expected to be recognized over a weighted-average period of 2.2 years . Restricted Stock Awards The following table summarizes activity related to restricted stock awards (in thousands, except per share data): Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding - December 31, 2016 12 $ 25.59 Granted 10 29.68 Released (4 ) 26.06 Canceled (3 ) 27.62 Outstanding - December 30, 2017 15 $ 27.89 The fair value of the non-vested restricted stock awards is based on the closing price on the date of grant. As of December 30, 2017 , total unrecognized compensation expense related to unvested restricted stock awards was $0.3 million , which will be recognized over a weighted average period of approximately 2.2 years . Strike Price Reduction 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. |
Restaurant Acquisition (Notes)
Restaurant Acquisition (Notes) | 12 Months Ended |
Dec. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Restaurant Acquisition On July 16, 2017 , the Company acquired two existing Wingstop restaurants from a franchisee. The total purchase price was $3.9 million and was paid in cash funded by operations and proceeds from our revolving credit facility. The results of operations of these locations are included in our Consolidated Statements of Operations since the date of acquisition. The acquisition was accounted for as a business combination. The following table summarizes the final allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition, inclusive of adjustments made during the measurement period (in thousands): Final Purchase Price Allocation Inventory $ 16 Property and equipment 183 Reacquired franchise rights 2,323 Goodwill 1,429 Gift card liability (2 ) Total purchase price $ 3,949 The excess of the purchase price over the aggregate fair value of assets acquired was allocated to goodwill and is attributable to the benefits expected as a result of the acquisition, including sales and growth opportunities. As of December 30, 2017 , $1.4 million of the goodwill from the acquisition is expected to be deductible for federal income tax purposes. Pro-forma financial information of the combined entities is not presented due to the immaterial impact of the financial results of the acquired restaurants on our consolidated financial statements. The fair value measurement of tangible and intangible assets and liabilities as of the acquisition date is based on significant inputs not observed in the market and thus represents a Level 3 fair value measurement. Fair value measurements for reacquired franchise rights were determined using the income approach. Fair value measurements for property and equipment were determined using the cost approach. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 30, 2017 | |
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 for the fiscal year ended December 26, 2015 , inclusive of the termination fee. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 30, 2017 | |
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 30, December 31, December 26, Revenue: Franchise segment $ 68,483 $ 57,071 $ 46,688 Company segment 37,069 34,288 31,281 Total segment revenue $ 105,552 $ 91,359 $ 77,969 Segment Profit: Franchise segment $ 31,637 $ 25,850 $ 19,701 Company segment 4,643 5,526 5,737 Total segment profit 36,280 31,376 25,438 Corporate and other (1) — 2,173 5,720 Interest expense, net 5,131 4,396 3,477 Other (income) expense, net — 254 396 Income before taxes $ 31,149 $ 24,553 $ 15,845 Depreciation and amortization: Franchise segment $ 2,220 $ 2,092 $ 1,812 Company segment 1,156 916 870 Total depreciation and amortization 3,376 3,008 2,682 Capital expenditures: Franchise segment $ 864 $ 387 $ 1,308 Company segment (2) 1,671 1,669 607 Total capital expenditures $ 2,535 $ 2,056 $ 1,915 (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 15). (2) Company segment excludes capital expenditures related to the acquisition of restaurants from franchisees (discussed in Note 14). Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands): As of December 30, 2017 December 31, 2016 Segment assets: Franchise segment $ 98,069 $ 94,889 Company segment 14,166 9,864 Total segment assets 112,235 104,753 Corporate and other (3) 7,601 7,047 Total assets $ 119,836 $ 111,800 (3) 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 6,627 5,198 Total goodwill $ 46,557 $ 45,128 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 30, 2017 | |
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 2017 and 2016 (in thousands, except per share data): Quarter Ended December 30, 2017 September 30, 2017 July 1, 2017 April 1, 2017 December 31, 2016 (1) September 24, 2016 June 25, 2016 March 26, 2016 Total revenue $ 28,285 $ 26,026 $ 24,672 $ 26,569 $ 24,752 $ 21,810 $ 22,723 $ 22,074 Operating income 9,404 9,178 8,747 8,952 8,255 6,080 7,240 7,628 Net income 10,497 5,012 5,266 6,530 4,312 2,753 4,079 4,290 Earnings per share Basic $ 0.36 $ 0.17 $ 0.18 $ 0.23 $ 0.15 $ 0.10 $ 0.14 $ 0.15 Diluted $ 0.36 $ 0.17 $ 0.18 $ 0.22 $ 0.15 $ 0.09 $ 0.14 $ 0.15 Weighted average shares outstanding Basic 29,094 29,081 29,032 28,895 28,745 28,725 28,646 28,586 Diluted 29,459 29,384 29,394 29,336 29,114 29,014 28,989 28,967 (1) Fiscal 2016 consisted of 53 calendar weeks, with the fourth quarter containing 14 calendar weeks. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Debt Recapitalization and Special Dividend On January 30, 2018, the Company entered into an amended senior secured credit facility (the “2018 Facility”), which replaced the 2016 Facility. The 2018 Facility includes a term loan facility in an aggregate amount of $100.0 million and a revolving credit facility up to an aggregate amount of $150.0 million . The Company used the proceeds from the 2018 Facility to refinance $133.8 million of indebtedness under the 2016 Facility and to pay a dividend of approximately $95 million to its shareholders. Borrowings under the facility bear interest, payable quarterly, at our option, at the base rate plus a margin ( 0.75% to 1.75% , dependent on the Company’s reported leverage ratio) or LIBOR plus a margin ( 1.75% to 2.75% , dependent on the Company’s reported leverage ratio). The 2018 Facility matures in January 2023. On January 30, 2018, the Board of Directors of the Company declared a special cash dividend of $3.17 per share payable on February 14, 2018 to its holders of common stock of record as of February 9, 2018. Restaurant Acquisition On February 19, 2018, the Company acquired an existing restaurant from a franchisee. The total purchase price was $1.9 million and was paid in cash funded by operations and proceeds from our revolving credit facility. The acquisition will be accounted for as a business combination. The Company is still determining the estimated fair value of assets acquired and liabilities assumed. The excess of the purchase price over the aggregate fair value of assets acquired will be allocated to goodwill. The results of operations of these locations will be included in our consolidated statements of earnings as of the date of acquisition. |
Basis of Presentation and Sum25
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2017 | |
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 years 2017 and 2015 each consisted of 52 weeks, and fiscal year 2016 consisted of 53 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. No indications of impairment were identified during fiscal years 2017 , 2016 or 2015 . 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 $11.2 million , $6.5 million and $4.8 million , during fiscal years 2017 , 2016 and 2015 , respectively, of which $0.9 million , $1.0 million and $0.7 million was classified as a reduction in Cost of sales during fiscal years 2017 , 2016 and 2015 , respectively. |
Advertising Expenses | Advertising Expenses WRI administers the Wingstop Restaurants Advertising Fund (“Ad Fund”), for which WRI collects a percentage of gross sales from Wingstop restaurant franchisees and WRI-owned restaurants to be used for various forms of advertising for the Wingstop brand. 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 to the existing 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 types of advertising on which the 4% advertising fee will be spent. 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. WRI made discretionary contributions to the advertising fund for the purpose of supplementing the national advertising campaign of $5.6 million , $2.4 million , and $2.3 million during fiscal years 2017 , 2016 and 2015 , respectively, which are included in Selling, general and administrative expenses in the Consolidated Statements of Operations. Company operated restaurants incurred advertising expenses of $1.5 million in fiscal years 2017 and 2016 , and $1.4 million in fiscal year 2015 , 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 3% of gross sales for each respective year. In addition to the above, the Company incurred advertising expenses related to franchise sales of $0.1 million for fiscal years 2017 and 2016 , and $0.2 million for fiscal year 2015 , which are included in Selling, general and administrative expenses 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 30, 2017 , the franchise operations segment consisted of 1,110 restaurants operated by Wingstop franchisees in the United States and eight countries outside of the United States as compared to 977 franchised restaurants in operation as of December 31, 2016 . 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 30, 2017 , the Company segment consisted of 23 company-owned restaurants, located in the United States, as compared to 21 company-owned restaurants as of December 31, 2016 . 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 May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance for revenue recognition related to contracts with customers, except for contracts within the scope of other standards, which supersedes nearly all existing revenue recognition guidance. The new guidance provides a single framework in which revenue is required to be recognized to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new guidance is effective for the Company in fiscal year 2018. The Company will adopt this new guidance in fiscal year 2018 using the full retrospective transition method, which will result in restating each prior reporting period presented, fiscal years 2017 and 2016, in the year of adoption. Additionally, a cumulative effect adjustment will be recorded to the opening balance of accumulated deficit as of the first day of fiscal year 2016, the earliest period presented, which we expect to be $5.1 million . The expected impact of the new guidance is summarized below. In addition to these expected impacts to our financial results, the Company continues to evaluate the impact the adoption of this new guidance will have on financial statement disclosures, in addition to evaluating business processes and internal controls related to revenue recognition to assist in the ongoing application of the new guidance. Franchise Fees The adoption of the new guidance will change the timing of recognition of initial franchise fees, development fees, territory fees for our international business, and renewal and transfer fees. Currently, these fees are generally recognized upfront upon either opening of the respective restaurant, when a renewal agreement becomes effective, or upon transfer of a franchise agreement. The new guidance will generally require these fees to be recognized over the term of the related franchise license for the respective restaurant, which will result in an impact to revenue recognized for initial franchise fees and renewal fees. The new guidance will not change the recognition of royalty income. Advertising The adoption of the new guidance will change the reporting of advertising fund contributions from franchisees and the related advertising fund expenditures, which are not currently included in the consolidated statements of operations. The new guidance requires these advertising fund contributions and expenditures to be reported on a gross basis in the consolidated statements of operations, which will have an impact to our total revenues and expenses. However, we expect such advertising fund contributions and expenditures will be largely offsetting and therefore do not expect a significant impact on our reported net income. Additionally, advertising costs that have been incurred by the Company outside of the advertising funds have historically been included within general and administrative expenses, net, but will be included within advertising expenses in the consolidated statements of operations. Advertising expenses incurred by company-owned restaurants will continue to be included within cost of sales in the consolidated statements of operations. The table below presents the expected effects upon adoption these changes would have had on the Company’s financial statements in 2017 and 2016 (amounts in thousands, except per share data): Fiscal Year 2017 Fiscal Year 2016 As reported Effects of Adoption Upon Adoption As reported Effects of Adoption Upon Adoption Royalty revenue and franchise fees $ 68,483 $ (2,407 ) $ 66,076 $ 57,071 $ (2,596 ) $ 54,475 Advertising fees and related income — 30,174 30,174 — 14,561 14,561 Advertising expenses — 32,427 32,427 — 13,849 13,849 Selling, general and administrative 37,151 (2,253 ) 34,898 33,840 712 34,552 Net income $ 27,304 $ (3,364 ) $ 23,940 $ 15,434 $ (1,665 ) $ 13,769 Basic EPS $ 0.94 $ (0.12 ) $ 0.82 $ 0.54 $ (0.06 ) $ 0.48 Diluted EPS $ 0.93 $ (0.11 ) $ 0.82 $ 0.53 $ (0.06 ) $ 0.47 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): 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. The Company 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 Statements 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 fiscal year ended December 30, 2017 , we recognized $2.5 million of excess tax benefits in income tax expense in the Consolidated Statements of Operations. Excess tax benefits are included 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 $1.2 million and $0.8 million for the fiscal years ended December 31, 2016 and December 26, 2015 , respectively. This new standard allows entities to make an accounting policy election to either estimate the number of equity 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 Statements of Operations. |
Basis of Presentation and Sum26
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
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 30, December 31, Equipment, furniture and fixtures $ 9,298 $ 7,682 Leasehold improvements 7,005 6,081 Construction in progress 183 201 Property and equipment, gross 16,486 13,964 Less: accumulated depreciation (10,660 ) (8,965 ) Property and equipment, net $ 5,826 $ 4,999 |
Basis of Presentation and Sum27
Basis of Presentation and Summary of Significant Accounting Policies Revenue Recognition (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Revenue Recognition [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The table below presents the expected effects upon adoption these changes would have had on the Company’s financial statements in 2017 and 2016 (amounts in thousands, except per share data): Fiscal Year 2017 Fiscal Year 2016 As reported Effects of Adoption Upon Adoption As reported Effects of Adoption Upon Adoption Royalty revenue and franchise fees $ 68,483 $ (2,407 ) $ 66,076 $ 57,071 $ (2,596 ) $ 54,475 Advertising fees and related income — 30,174 30,174 — 14,561 14,561 Advertising expenses — 32,427 32,427 — 13,849 13,849 Selling, general and administrative 37,151 (2,253 ) 34,898 33,840 712 34,552 Net income $ 27,304 $ (3,364 ) $ 23,940 $ 15,434 $ (1,665 ) $ 13,769 Basic EPS $ 0.94 $ (0.12 ) $ 0.82 $ 0.54 $ (0.06 ) $ 0.48 Diluted EPS $ 0.93 $ (0.11 ) $ 0.82 $ 0.53 $ (0.06 ) $ 0.47 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 30, 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): Fiscal Year December 30, December 31, December 26, Basic weighted average shares outstanding 29,025 28,637 27,497 Dilutive shares 399 346 319 Diluted weighted average shares outstanding 29,424 28,983 27,816 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 30, 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 December 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Senior Secured Credit Facility: Term loan facility (1) Level 2 $ 64,750 $ 64,750 $ 68,250 $ 68,250 Revolving credit facility (1) Level 2 $ 69,000 $ 69,000 $ 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. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, net | Accounts receivables, net, consist of the following (in thousands): December 30, December 31, Vendor rebates receivable $ 2,145 $ 1,459 Royalties receivable 987 883 Gift card receivable 1,184 672 Other receivables, net 251 185 Accounts receivable, net $ 4,567 $ 3,199 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
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 30, December 31, Equipment, furniture and fixtures $ 9,298 $ 7,682 Leasehold improvements 7,005 6,081 Construction in progress 183 201 Property and equipment, gross 16,486 13,964 Less: accumulated depreciation (10,660 ) (8,965 ) Property and equipment, net $ 5,826 $ 4,999 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets, excluding goodwill, consisted of the following (in thousands): December 30, December 31, 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 Franchise rights (1) 2,323 — 7.5 Proprietary software (1) 115 115 5.0 Noncompete agreements (1) 250 250 2.8 Less: accumulated amortization (11,249 ) (9,751 ) Definite-lived assets 17,739 16,914 18.8 Intangible assets, net $ 50,439 $ 49,614 (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 2018 $ 1,661 Fiscal year 2019 1,649 Fiscal year 2020 1,637 Fiscal year 2021 1,625 Fiscal year 2022 1,620 Thereafter 9,547 Total $ 17,739 |
Prepaid Expenses and Other Cu33
Prepaid Expenses and Other Current Assets and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
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 30, December 31, Prepaid expenses $ 946 $ 1,021 Federal income tax receivable 2,500 — Prepaid gift card expenses 672 387 Inventories 216 226 Total $ 4,334 $ 1,634 |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following (in thousands): December 30, December 31, Accrued payroll and bonuses $ 4,192 $ 3,880 Current portion of deferred revenues 1,795 1,547 Gift card liability 2,074 936 Taxes payable 163 895 Other accrued liabilities 2,459 1,983 Total $ 10,683 $ 9,241 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) for the fiscal years 2017 , 2016 and 2015 consists of the following (in thousands): Fiscal Year December 30, December 31, December 26, Current expense Federal $ 6,204 $ 8,854 $ 5,813 State 800 847 736 Foreign 346 132 236 Deferred expense (benefit) Federal (3,645 ) (662 ) (802 ) State 140 (52 ) (244 ) Income tax expense $ 3,845 $ 9,119 $ 5,739 |
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 35% ) to income tax expense for fiscal years 2017 , 2016 and 2015 in dollars is as follows (in thousands): Fiscal Year December 30, December 31, December 26, Expected income tax expense at statutory rate $ 10,902 $ 8,594 $ 5,546 Tax Act impact on deferred taxes (5,473 ) — — Permanent differences (2,300 ) 92 64 State tax expense, net of federal benefit 616 395 544 Foreign tax expense 347 132 236 Foreign tax credits (347 ) (132 ) (236 ) Increase in unrecognized tax benefit 114 185 104 Valuation allowance — — (317 ) Other (14 ) (147 ) (202 ) Income tax expense $ 3,845 $ 9,119 $ 5,739 |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred tax assets (liabilities) are as follows (in thousands): December 30, 2017 December 31, 2016 Deferred tax assets: Deferred revenue $ 1,403 $ 3,394 Accrued bonus 53 706 Property and equipment — 136 Stock based compensation 607 818 Deferred rent 270 453 Intangible assets 191 593 Other 157 248 Net operating loss carryforwards and credits 443 443 Valuation allowance (482 ) (482 ) 2,642 6,309 Deferred tax liabilities: Intangible assets (11,302 ) (18,613 ) Property and equipment (139 ) — (11,441 ) (18,613 ) Net deferred tax liability $ (8,799 ) $ (12,304 ) |
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 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 Additions for tax positions of prior years — Subtractions for tax positions of prior years — Additions for tax positions of current year 78 Subtractions for tax positions of current year — Balance as of December 30, 2017 $ 680 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following components (in thousands): December 30, 2017 December 31, 2016 Term loan $ 64,750 $ 68,250 Revolving credit facility 69,000 83,000 Debt issuance costs (409 ) (533 ) Less: current portion of debt (3,500 ) (3,500 ) Long-term debt, net $ 129,841 $ 147,217 |
Schedule of Maturities of Long-term Debt | As of December 30, 2017 , the scheduled principle payments on debt were as follows (in thousands): Fiscal year 2018 $ 3,500 Fiscal year 2019 2,625 Fiscal year 2020 3,500 Fiscal year 2021 124,125 Total $ 133,750 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
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 30, 2017 , is as follows (in thousands): Fiscal year 2018 $ 1,783 Fiscal year 2019 1,561 Fiscal year 2020 1,436 Fiscal year 2021 1,282 Fiscal year 2022 1,226 Thereafter 4,037 Total $ 11,325 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 30, 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 27, 2014 1,466 $ 3.74 $ 7,551 8.0 Granted 106 16.75 Exercised (329 ) 1.45 Canceled (66 ) 1.17 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 Granted — — Exercised (326 ) 4.04 Canceled (109 ) 7.23 Outstanding - December 30, 2017 420 $ 5.45 $ 14,068 5.7 |
Schedule of Nonvested Share Activity | A summary of the status of non-vested shares as of December 30, 2017 and the changes during the period then ended is presented below (in thousands, except per share data): December 30, 2017 Shares Weighted average grant-date fair value Non-vested shares at beginning of year 500 $ 7.19 Granted — $ — Vested (220 ) $ 5.33 Forfeited (109 ) $ 7.23 Non-vested shares at end of year 171 $ 9.54 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 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 Risk-free interest 1.44 % 1.96 % Expected life (years) 6.2 6.5 Expected dividend yield 0 % 0 % Volatility 52.0 % 52.0 % Weighted-average Black-Scholes fair value per share at date of grant $ 13.74 $ 8.87 |
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 105 27.02 94 27.52 Released — — — — Canceled (11 ) 26.30 (8 ) 26.30 Outstanding - December 30, 2017 94 $ 27.11 86 $ 27.63 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table summarizes activity related to restricted stock awards (in thousands, except per share data): Restricted Stock Awards Weighted Average Grant Date Fair Value Outstanding - December 31, 2016 12 $ 25.59 Granted 10 29.68 Released (4 ) 26.06 Canceled (3 ) 27.62 Outstanding - December 30, 2017 15 $ 27.89 |
Restaurant Acquisition (Tables)
Restaurant Acquisition (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the final allocation of the purchase price to the estimated fair values of assets acquired and liabilities assumed at the date of the acquisition, inclusive of adjustments made during the measurement period (in thousands): Final Purchase Price Allocation Inventory $ 16 Property and equipment 183 Reacquired franchise rights 2,323 Goodwill 1,429 Gift card liability (2 ) Total purchase price $ 3,949 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
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 30, December 31, December 26, Revenue: Franchise segment $ 68,483 $ 57,071 $ 46,688 Company segment 37,069 34,288 31,281 Total segment revenue $ 105,552 $ 91,359 $ 77,969 Segment Profit: Franchise segment $ 31,637 $ 25,850 $ 19,701 Company segment 4,643 5,526 5,737 Total segment profit 36,280 31,376 25,438 Corporate and other (1) — 2,173 5,720 Interest expense, net 5,131 4,396 3,477 Other (income) expense, net — 254 396 Income before taxes $ 31,149 $ 24,553 $ 15,845 Depreciation and amortization: Franchise segment $ 2,220 $ 2,092 $ 1,812 Company segment 1,156 916 870 Total depreciation and amortization 3,376 3,008 2,682 Capital expenditures: Franchise segment $ 864 $ 387 $ 1,308 Company segment (2) 1,671 1,669 607 Total capital expenditures $ 2,535 $ 2,056 $ 1,915 (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 15). (2) Company segment excludes capital expenditures related to the acquisition of restaurants from franchisees (discussed in Note 14). Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands): As of December 30, 2017 December 31, 2016 Segment assets: Franchise segment $ 98,069 $ 94,889 Company segment 14,166 9,864 Total segment assets 112,235 104,753 Corporate and other (3) 7,601 7,047 Total assets $ 119,836 $ 111,800 (3) 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 6,627 5,198 Total goodwill $ 46,557 $ 45,128 |
Quarterly Financial Data (una40
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
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 2017 and 2016 (in thousands, except per share data): Quarter Ended December 30, 2017 September 30, 2017 July 1, 2017 April 1, 2017 December 31, 2016 (1) September 24, 2016 June 25, 2016 March 26, 2016 Total revenue $ 28,285 $ 26,026 $ 24,672 $ 26,569 $ 24,752 $ 21,810 $ 22,723 $ 22,074 Operating income 9,404 9,178 8,747 8,952 8,255 6,080 7,240 7,628 Net income 10,497 5,012 5,266 6,530 4,312 2,753 4,079 4,290 Earnings per share Basic $ 0.36 $ 0.17 $ 0.18 $ 0.23 $ 0.15 $ 0.10 $ 0.14 $ 0.15 Diluted $ 0.36 $ 0.17 $ 0.18 $ 0.22 $ 0.15 $ 0.09 $ 0.14 $ 0.15 Weighted average shares outstanding Basic 29,094 29,081 29,032 28,895 28,745 28,725 28,646 28,586 Diluted 29,459 29,384 29,394 29,336 29,114 29,014 28,989 28,967 (1) Fiscal 2016 consisted of 53 calendar weeks, with the fourth quarter containing 14 calendar weeks. |
Basis of Presentation and Sum41
Basis of Presentation and Summary of Significant Accounting Policies - Overview (Details) | May 28, 2015 | Dec. 30, 2017restaurantcountry | Dec. 31, 2016restaurant | Dec. 26, 2015 | Mar. 16, 2010 |
Franchisor Disclosure [Line Items] | |||||
Equity interest purchased | 100.00% | ||||
Fiscal period duration | 364 days | 371 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 | 1,110 | 977 | |||
Franchised Units | United States | |||||
Franchisor Disclosure [Line Items] | |||||
Number of restaurants | 1,004 | ||||
Franchised Units | Non-US | |||||
Franchisor Disclosure [Line Items] | |||||
Number of restaurants | 106 | ||||
Number of countries in which the entity operates | country | 8 | ||||
Entity Operated Units | |||||
Franchisor Disclosure [Line Items] | |||||
Number of restaurants | 23 | 21 |
Basis of Presentation and Sum42
Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - Equipment, furniture and fixtures | 6 Months Ended |
Jul. 01, 2017 | |
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 Sum43
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. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Franchisor Disclosure [Line Items] | |||
Incentives From Vendors Recognized | $ 11.2 | $ 6.5 | $ 4.8 |
Cost of Sales | |||
Franchisor Disclosure [Line Items] | |||
Incentives From Vendors Recognized | $ 0.9 | $ 1 | $ 0.7 |
Basis of Presentation and Sum44
Basis of Presentation and Summary of Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
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% | |||
Advertising expense | $ 0.1 | $ 0.1 | $ 0.2 | |
Selling, General and Administrative Expenses | ||||
Franchisor Disclosure [Line Items] | ||||
Franchise advertising fund discretionary contributions | 5.6 | 2.4 | 2.3 | |
Cost of Sales | ||||
Franchisor Disclosure [Line Items] | ||||
Franchise advertising fund expenses | $ 1.5 | $ 1.5 | $ 1.4 |
Basis of Presentation and Sum45
Basis of Presentation and Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 30, 2017 | |
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 Sum46
Basis of Presentation and Summary of Significant Accounting Policies - Business Segments (Details) | Dec. 30, 2017restaurantcountry | Dec. 31, 2016restaurant |
Franchised Units | ||
Segment Reporting Information [Line Items] | ||
Number of restaurants | 1,110 | 977 |
Entity Operated Units | ||
Segment Reporting Information [Line Items] | ||
Number of restaurants | 23 | 21 |
Non-US | Franchised Units | ||
Segment Reporting Information [Line Items] | ||
Number of countries in which the entity operates | country | 8 | |
Number of restaurants | 106 |
Basis of Presentation and Sum47
Basis of Presentation and Summary of Significant Accounting Policies Revenue Recognition (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Royalty revenue and franchise fees | $ 68,483 | $ 57,071 | $ 46,688 | |||||||||
Franchise Advertising Fund Income | 0 | 0 | ||||||||||
Franchise Advertising Fund Expense | 0 | 0 | ||||||||||
Selling, general and administrative | 37,151 | 33,840 | 33,350 | |||||||||
Net income | $ 10,497 | $ 5,012 | $ 5,266 | $ 6,530 | $ 4,312 | $ 2,753 | $ 4,079 | $ 4,290 | $ 27,304 | $ 15,434 | $ 10,106 | |
Basic (in usd per share) | $ 0.36 | $ 0.17 | $ 0.18 | $ 0.23 | $ 0.15 | $ 0.10 | $ 0.14 | $ 0.15 | $ 0.94 | $ 0.54 | $ 0.37 | |
Diluted (in usd per share) | $ 0.36 | $ 0.17 | $ 0.18 | $ 0.22 | $ 0.15 | $ 0.09 | $ 0.14 | $ 0.15 | $ 0.93 | $ 0.53 | $ 0.36 | |
Restated upon adoption of ASU 2014-09 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 5,100 | |||||||||||
Royalty revenue and franchise fees | $ 66,076 | $ 54,475 | ||||||||||
Franchise Advertising Fund Income | 30,174 | 14,561 | ||||||||||
Franchise Advertising Fund Expense | 32,427 | 13,849 | ||||||||||
Selling, general and administrative | 34,898 | 34,552 | ||||||||||
Net income | $ 23,940 | $ 13,769 | ||||||||||
Basic (in usd per share) | $ 0.82 | $ 0.48 | ||||||||||
Diluted (in usd per share) | $ 0.82 | $ 0.47 | ||||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Royalty revenue and franchise fees | $ (2,407) | $ (2,596) | ||||||||||
Franchise Advertising Fund Income | 30,174 | 14,561 | ||||||||||
Franchise Advertising Fund Expense | 32,427 | 13,849 | ||||||||||
Selling, general and administrative | (2,253) | 712 | ||||||||||
Net income | $ (3,364) | $ (1,665) | ||||||||||
Basic (in usd per share) | $ (0.12) | $ (0.06) | ||||||||||
Diluted (in usd per share) | $ (0.11) | $ (0.06) |
Basis of Presentation and Sum48
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - Accounting Standards Update 2016-09 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Franchisor Disclosure [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 2.5 | |
New Accounting Pronouncement, Effect on Presentation in Statement of Cash Flows | $ 1.2 | $ 0.8 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Basic weighted average shares outstanding | 29,094 | 29,081 | 29,032 | 28,895 | 28,745 | 28,725 | 28,646 | 28,586 | 29,025 | 28,637 | 27,497 |
Dilutive shares | 399 | 346 | 319 | ||||||||
Diluted weighted average shares outstanding | 29,459 | 29,384 | 29,394 | 29,336 | 29,114 | 29,014 | 28,989 | 28,967 | 29,424 | 28,983 | 27,816 |
Employee Stock Option | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6 | 4 | 11 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 14, 2018 | Jan. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 |
Dividends Payable [Line Items] | ||||||||
Dividends per share (in usd per share) | $ 0.07 | $ 0.07 | $ 0.14 | $ 2.9 | $ 1.83 | |||
Payments of Dividends | $ 2,049 | $ 2,048 | $ 4,070 | $ 83,268 | $ 47,999 | |||
Subsequent Event [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 3.17 | $ 3.17 | $ 0.07 | |||||
Dividends Payable, Current | $ 2,100 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Nonrecurring - Level 2 - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan facility (1) | $ 64,750 | $ 68,250 |
Revolving credit facility (1) | 69,000 | 83,000 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loan facility (1) | 64,750 | 68,250 |
Revolving credit facility (1) | $ 69,000 | $ 83,000 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 4,567 | $ 3,199 |
Vendor rebates receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 2,145 | 1,459 |
Royalties receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 987 | 883 |
Gift card receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 1,184 | 672 |
Other receivables, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 251 | $ 185 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 16,486 | $ 13,964 | |
Less: accumulated depreciation | (10,660) | (8,965) | |
Property and equipment, net | 5,826 | 4,999 | |
Depreciation | 1,900 | 1,600 | $ 1,300 |
Equipment, furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 9,298 | 7,682 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 7,005 | 6,081 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 183 | $ 201 |
Intangible Assets and Goodwil54
Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands | 12 Months Ended | |||
Dec. 30, 2017USD ($)reporting_unit | Jul. 16, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 26, 2015USD ($) | |
Goodwill [Line Items] | ||||
Number of reporting units | reporting_unit | 2 | |||
Goodwill | $ | $ 46,557 | $ 1,429 | $ 45,128 | $ 45,128 |
Intangible Assets and Goodwil55
Intangible Assets and Goodwill - Intangible Assets Excluding Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived assets | $ 32,700 | $ 32,700 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | (11,249) | (9,751) |
Definite-lived assets | $ 17,739 | 16,914 |
Weighted average amortization period | 18 years 9 months 18 days | |
Intangible assets, net | $ 50,439 | 49,614 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived assets, gross | 26,300 | 26,300 |
Definite-lived assets | $ 15,567 | 16,914 |
Weighted average amortization period | 20 years | |
Franchise rights (1) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 7 years 6 months | |
Proprietary software (1) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 5 years | |
Noncompete agreements (1) | ||
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 | Franchise rights (1) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived assets, gross | 2,323 | 0 |
Other non-current assets | Proprietary software (1) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived assets, gross | 115 | 115 |
Other non-current assets | Noncompete agreements (1) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived assets, gross | $ 250 | $ 250 |
Intangible Assets and Goodwil56
Intangible Assets and Goodwill - Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1,500 | $ 1,400 | $ 1,400 |
Fiscal year 2018 | 1,661 | ||
Fiscal year 2019 | 1,649 | ||
Fiscal year 2020 | 1,637 | ||
Fiscal year 2021 | 1,625 | ||
Fiscal year 2022 | 1,620 | ||
Thereafter | 9,547 | ||
Total | $ 17,739 | $ 16,914 |
Prepaid Expenses and Other Cu57
Prepaid Expenses and Other Current Assets and Other Current Liabilities - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 946 | $ 1,021 |
Federal income tax receivable | 2,500 | 0 |
Prepaid gift card expenses | 672 | 387 |
Inventories | 216 | 226 |
Total | $ 4,334 | $ 1,634 |
Prepaid Expenses and Other Cu58
Prepaid Expenses and Other Current Assets and Other Current Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued payroll and bonuses | $ 4,192 | $ 3,880 |
Current portion of deferred revenues | 1,795 | 1,547 |
Gift card liability | 2,074 | 936 |
Taxes payable | 163 | 895 |
Other accrued liabilities | 2,459 | 1,983 |
Total | $ 10,683 | $ 9,241 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | |
Current expense | |||
Federal | $ 6,204 | $ 8,854 | $ 5,813 |
State | 800 | 847 | 736 |
Foreign | 346 | 132 | 236 |
Deferred expense (benefit) | |||
Federal | (3,645) | (662) | (802) |
State | 140 | (52) | (244) |
Income tax expense | $ 3,845 | $ 9,119 | $ 5,739 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Income Taxes [Line Items] | ||||
Federal statutory tax rate | 35.00% | 35.00% | ||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected income tax expense at statutory rate | $ 10,902 | $ 8,594 | $ 5,546 | |
Tax Act impact on deferred taxes | (5,473) | 0 | 0 | |
Permanent differences | (2,300) | 92 | 64 | |
State tax expense, net of federal benefit | 616 | 395 | 544 | |
Foreign tax expense | 347 | 132 | 236 | |
Foreign tax credits | (347) | (132) | (236) | |
Increase in unrecognized tax benefit | 114 | 185 | 104 | |
Valuation allowance | 0 | 0 | (317) | |
Other | (14) | (147) | (202) | |
Income tax expense | $ 3,845 | $ 9,119 | $ 5,739 | |
Domestic Tax Authority | ||||
Income Taxes [Line Items] | ||||
Federal statutory tax rate | 35.00% | |||
Subsequent Event [Member] | Domestic Tax Authority | ||||
Income Taxes [Line Items] | ||||
Federal statutory tax rate | 21.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Deferred revenue | $ 1,403 | $ 3,394 |
Accrued bonus | 53 | 706 |
Property and equipment | 0 | 136 |
Stock based compensation | 607 | 818 |
Deferred rent | 270 | 453 |
Intangible assets | 191 | 593 |
Other | 157 | 248 |
Net operating loss carryforwards and credits | 443 | 443 |
Valuation allowance | (482) | (482) |
Deferred tax assets, net of valuation allowance | 2,642 | 6,309 |
Deferred tax liabilities: | ||
Intangible assets | (11,302) | (18,613) |
Property and equipment | (139) | 0 |
Deferred tax liabilities | (11,441) | (18,613) |
Deferred tax liabilities, net | (8,799) | $ (12,304) |
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 | Dec. 30, 2017 | Dec. 31, 2016 |
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | $ 482 | $ 482 |
Employee benefits | 4,300 | |
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 ($) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | $ 602,000 | $ 465,000 | $ 129,000 |
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 | 78,000 | 137,000 | 336,000 |
Subtractions for tax positions of current year | 0 | 0 | 0 |
Unrecognized tax benefits, end of period | 680,000 | 602,000 | $ 465,000 |
Accrued interest and penalties on unrecognized tax benefits | 151,000 | $ 116,000 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0 |
Debt Obligations Debt Obligatio
Debt Obligations Debt Obligations - Components of Long-term Debt (Details) - USD ($) | Dec. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 28, 2015 |
Debt Instrument [Line Items] | ||||
Current portion of debt | $ (3,500,000) | $ (3,500,000) | ||
Long-term debt, net | 129,841,000 | 147,217,000 | ||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Term loan | 64,750,000 | 68,300,000 | $ 70,000,000 | $ 132,500,000 |
Debt issuance costs | (409,000) | (533,000) | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Term loan | $ 69,000,000 | $ 83,000,000 |
Debt Obligations - Senior Secur
Debt Obligations - Senior Secured Credit Facility (Details) - USD ($) | Jun. 30, 2016 | Jun. 27, 2015 | Mar. 31, 2015 | Jul. 01, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | Mar. 28, 2015 | Dec. 27, 2014 |
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 180,000,000 | $ 137,500,000 | $ 107,500,000 | ||||||
Dividends paid | $ 4,097,000 | $ 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 | 21,000,000 | 109,250,000 | $ 38,218,000 | ||||||
Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan | 70,000,000 | 64,750,000 | 68,300,000 | 132,500,000 | |||||
Repayments of Secured Debt | $ 3,500,000 | ||||||||
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 | $ 69,000,000 | $ 83,000,000 | |||||||
Debt instrument, interest rate, end of period | 3.69% | 3.27% | |||||||
Repayments of Secured Debt | $ 12,000,000 | ||||||||
Repayments of Lines of Credit | (17,500,000) | ||||||||
Proceeds from Long-term Lines of Credit | $ 3,500,000 | ||||||||
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% | ||||||||
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. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Fiscal year 2018 | $ 3,500 |
Fiscal year 2019 | 2,625 |
Fiscal year 2020 | 3,500 |
Fiscal year 2021 | 124,125 |
Total | $ 133,750 |
Commitments and Contingencies67
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Fiscal year 2018 | $ 1,783 | ||
Fiscal year 2019 | 1,561 | ||
Fiscal year 2020 | 1,436 | ||
Fiscal year 2021 | 1,282 | ||
Fiscal year 2022 | 1,226 | ||
Thereafter | 4,037 | ||
Total | 11,325 | ||
Rent expense | $ 2,000 | $ 1,900 | $ 2,000 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Retirement Benefits [Abstract] | |||
Matching contributions | $ 450 | $ 425 | $ 332 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 30, 2017 | 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) | 420,000 | 855,000 | 1,177,000 | 1,466,000 |
Grant date fair value of stock options, vested | $ 1 | $ 1 | $ 0.7 | |
Intrinsic value of stock options | 8.1 | 3.8 | 3 | |
Stock-based compensation expense, unrecognized | 0.8 | |||
Additional Paid-In Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1.9 | $ 1.2 | $ 1.2 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, recognition period | 1 year 6 months | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, recognition period | 2 years 2 months 12 days | |||
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) | 263,876 | |||
Shares available for future grants (in shares) | 1,871,698 | |||
2010 Plan | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercisable period from date of grant | 10 years | |||
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) | 350,063 | |||
Shares available for future grants (in shares) | 456,407 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||
Stock options outstanding (in shares) | 855 | 1,177 | 1,466 | ||||
Stock options granted (in shares) | 0 | 36 | 106 | ||||
Stock options exercised (in shares) | (326) | (166) | (329) | ||||
Stock options canceled (in shares) | (109) | (192) | (66) | ||||
Stock options outstanding (in shares) | 420 | 855 | 1,177 | 1,466 | 420 | 855 | 1,177 |
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 | $ 4.66 | $ 3.74 | ||||
Stock options grated, weighted average exercise price (in usd per share) | 0 | 24.34 | 16.75 | ||||
Stock options exercised, weighted average exercise price (in usd per share) | 4.04 | 2.92 | 1.45 | ||||
stock options canceled, weighted average exercise price (in usd per share) | 7.23 | 5.99 | 1.17 | ||||
Stock options outstanding, weighted average exercise price (in usd per share) | $ 5.45 | $ 5.14 | $ 4.66 | $ 3.74 | $ 5.45 | $ 5.14 | $ 4.66 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||||
Stock options outstanding, aggregate intrinsic value | $ 20,905 | $ 21,059 | $ 7,551 | ||||
Stock options outstanding, aggregate intrinsic value | $ 14,068 | $ 20,905 | $ 21,059 | $ 7,551 | $ 14,068 | $ 20,905 | $ 21,059 |
Stock options outstanding, weighted average remaining term | 5 years 8 months 12 days | 6 years 9 months 18 days | 7 years 8 months 12 days | 8 years |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-vested Shares (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
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) | 500 | ||
Granted (in shares) | 0 | 36 | 106 |
Vested (in shares) | (220) | ||
Forfeited (in shares) | (109) | ||
Non-vested shares at beginning of year (in shares) | 171 | 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) | $ 7.19 | ||
Granted (in usd per share) | 0 | ||
Vested (in usd per share) | 5.33 | ||
Forfeited (in usd per share) | 7.23 | ||
Non-vested shares at beginning of year (in usd per share) | $ 9.54 | $ 7.19 |
Stock-Based Compensation - St72
Stock-Based Compensation - Stock Option Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk-free interest | 1.44% | 1.96% |
Expected life (years) | 6 years 2 months 12 days | 6 years 6 months |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 52.00% | 52.00% |
Weighted-average Black-Scholes fair value per share at date of grant (in usd per share) | $ 13.74 | $ 8.87 |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Units and Performance Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Restricted Stock Units (RSUs) [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, Nonvested, Number | 94 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 105 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 11 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 27.11 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 27.02 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 26.30 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 1.9 | |
Stock-based compensation expense, recognition period | 2 years 2 months 12 days | |
Performance Shares [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, Nonvested, Number | 86 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 94 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 8 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 27.63 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 27.52 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 26.30 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 1.4 | |
Stock-based compensation expense, recognition period | 2 years 2 months 12 days | |
Performance Shares [Member] | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |
Performance Shares [Member] | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% |
Stock-Based Compensation Rest74
Stock-Based Compensation Restricted Stock Awards (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
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, Nonvested, Number | 15 | 12 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 10 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (4) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (3) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 27.89 | $ 25.59 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 29.68 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 26.06 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 27.62 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 0.3 | |
Stock-based compensation expense, recognition period | 2 years 2 months 12 days |
Stock-Based Compensation - Divi
Stock-Based Compensation - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 30, 2017 | Sep. 30, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Dividends per share (in usd per share) | $ 0.07 | $ 0.07 | $ 0.14 | $ 2.9 | $ 1.83 |
Dividends paid | $ 4,097 | $ 83,268 | $ 47,999 | ||
Reduction of exercise price of outstanding options (in usd per share) | $ 2.9 | $ 1.83 | |||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incremental compensation cost | $ 94 | $ 537 |
Restaurant Acquisition (Details
Restaurant Acquisition (Details) $ in Thousands | Jul. 16, 2017USD ($)restaurant | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 26, 2015USD ($) |
Business Acquisition [Line Items] | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 1,400 | |||
Number of Restaurants Acquired from a Franchisee | restaurant | 2 | |||
Business Combination, Consideration Transferred | $ 3,900 | $ 3,949 | $ 0 | $ 0 |
Inventory | 16 | |||
Property and equipment | 183 | |||
Reacquired franchise rights | 2,323 | |||
Goodwill | 1,429 | $ 46,557 | $ 45,128 | $ 45,128 |
Gift card liability | 2 | |||
Total purchase price | $ 3,949 |
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 | |
Related Party Transaction [Line Items] | ||
Loss on contract termination | $ 3.3 | |
Related party transaction, expenses from transactions with related party | $ 3.5 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | Jul. 16, 2017 | |
Revenue: | ||||||||||||
Franchise segment | $ 68,483 | $ 57,071 | $ 46,688 | |||||||||
Company-owned restaurant sales | 37,069 | 34,288 | 31,281 | |||||||||
Total revenue | $ 28,285 | $ 26,026 | $ 24,672 | $ 26,569 | $ 24,752 | $ 21,810 | $ 22,723 | $ 22,074 | 105,552 | 91,359 | 77,969 | |
Segment Profit: | ||||||||||||
Operating income | 9,404 | $ 9,178 | $ 8,747 | $ 8,952 | 8,255 | $ 6,080 | $ 7,240 | $ 7,628 | 36,280 | 29,203 | 19,718 | |
Interest expense, net | 5,131 | 4,396 | 3,477 | |||||||||
Other (income) expense, net | 0 | 254 | 396 | |||||||||
Income before taxes | 31,149 | 24,553 | 15,845 | |||||||||
Depreciation and amortization | 3,376 | 3,008 | 2,682 | |||||||||
Capital expenditures: | 2,535 | 2,056 | 1,915 | |||||||||
Total assets | 119,836 | 111,800 | 119,836 | 111,800 | ||||||||
Goodwill | 46,557 | 45,128 | 46,557 | 45,128 | 45,128 | $ 1,429 | ||||||
Operating Segments | ||||||||||||
Revenue: | ||||||||||||
Total revenue | 105,552 | 91,359 | 77,969 | |||||||||
Segment Profit: | ||||||||||||
Operating income | 36,280 | 31,376 | 25,438 | |||||||||
Depreciation and amortization | 3,376 | 3,008 | 2,682 | |||||||||
Capital expenditures: | 2,535 | 2,056 | 1,915 | |||||||||
Total assets | 112,235 | 104,753 | 112,235 | 104,753 | ||||||||
Goodwill | 46,557 | 45,128 | 46,557 | 45,128 | ||||||||
Corporate | ||||||||||||
Segment Profit: | ||||||||||||
Operating income | 0 | (2,173) | 5,720 | |||||||||
Total assets | 7,601 | 7,047 | 7,601 | 7,047 | ||||||||
Segment Reconciling Items | ||||||||||||
Segment Profit: | ||||||||||||
Interest expense, net | (5,131) | (4,396) | (3,477) | |||||||||
Other (income) expense, net | 0 | (254) | (396) | |||||||||
Franchise segment | Operating Segments | ||||||||||||
Revenue: | ||||||||||||
Franchise segment | 68,483 | 57,071 | 46,688 | |||||||||
Segment Profit: | ||||||||||||
Operating income | 31,637 | 25,850 | 19,701 | |||||||||
Depreciation and amortization | 2,220 | 2,092 | 1,812 | |||||||||
Capital expenditures: | 864 | 387 | 1,308 | |||||||||
Total assets | 98,069 | 94,889 | 98,069 | 94,889 | ||||||||
Goodwill | 39,930 | 39,930 | 39,930 | 39,930 | ||||||||
Company segment | Operating Segments | ||||||||||||
Revenue: | ||||||||||||
Company-owned restaurant sales | 37,069 | 34,288 | 31,281 | |||||||||
Segment Profit: | ||||||||||||
Operating income | 4,643 | 5,526 | 5,737 | |||||||||
Depreciation and amortization | 1,156 | 916 | 870 | |||||||||
Capital expenditures: | 1,671 | 1,669 | $ 607 | |||||||||
Total assets | 14,166 | 9,864 | 14,166 | 9,864 | ||||||||
Goodwill | $ 6,627 | $ 5,198 | $ 6,627 | $ 5,198 |
Quarterly Financial Data (una79
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 28,285 | $ 26,026 | $ 24,672 | $ 26,569 | $ 24,752 | $ 21,810 | $ 22,723 | $ 22,074 | $ 105,552 | $ 91,359 | $ 77,969 |
Operating income | 9,404 | 9,178 | 8,747 | 8,952 | 8,255 | 6,080 | 7,240 | 7,628 | 36,280 | 29,203 | 19,718 |
Net income | $ 10,497 | $ 5,012 | $ 5,266 | $ 6,530 | $ 4,312 | $ 2,753 | $ 4,079 | $ 4,290 | $ 27,304 | $ 15,434 | $ 10,106 |
Earnings per share | |||||||||||
Basic (in usd per share) | $ 0.36 | $ 0.17 | $ 0.18 | $ 0.23 | $ 0.15 | $ 0.10 | $ 0.14 | $ 0.15 | $ 0.94 | $ 0.54 | $ 0.37 |
Diluted (in usd per share) | $ 0.36 | $ 0.17 | $ 0.18 | $ 0.22 | $ 0.15 | $ 0.09 | $ 0.14 | $ 0.15 | $ 0.93 | $ 0.53 | $ 0.36 |
Weighted average shares outstanding | |||||||||||
Basic (in shares) | 29,094 | 29,081 | 29,032 | 28,895 | 28,745 | 28,725 | 28,646 | 28,586 | 29,025 | 28,637 | 27,497 |
Diluted weighted average number of common shares (in shares) | 29,459 | 29,384 | 29,394 | 29,336 | 29,114 | 29,014 | 28,989 | 28,967 | 29,424 | 28,983 | 27,816 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 19, 2018 | Feb. 14, 2018 | Jan. 30, 2018 | Jul. 16, 2017 | Jun. 30, 2016 | Mar. 31, 2015 | Mar. 31, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | Mar. 28, 2015 | Dec. 27, 2014 |
Subsequent Event [Line Items] | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 180,000,000 | $ 137,500,000 | $ 107,500,000 | |||||||||
Dividends paid | $ 4,097,000 | $ 83,268,000 | $ 47,999,000 | |||||||||
Business Combination, Consideration Transferred | $ 3,900,000 | 3,949,000 | 0 | $ 0 | ||||||||
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Dividends paid | $ 95,000,000 | |||||||||||
Common Stock, Dividends, Per Share, Declared | $ 3.17 | $ 3.17 | $ 0.07 | |||||||||
Business Combination, Consideration Transferred | $ 1,900,000 | |||||||||||
Secured Debt | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Term loan | 70,000,000 | 64,750,000 | 68,300,000 | 132,500,000 | ||||||||
Repayments of Lines of Credit | 85,500,000 | |||||||||||
Secured Debt | Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Term loan | $ 100,000,000 | |||||||||||
Repayments of Lines of Credit | 133,800,000 | |||||||||||
Revolving Credit Facility | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Term loan | 69,000,000 | $ 83,000,000 | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 110,000,000 | $ 5,000,000 | ||||||||||
Repayments of Lines of Credit | $ 17,500,000 | |||||||||||
Revolving Credit Facility | Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 150,000,000 | |||||||||||
Maximum | Base Rate | Secured Debt | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | 2.00% | ||||||||||
Maximum | Base Rate | Secured Debt | Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||||
Maximum | London Interbank Offered Rate (LIBOR) | Secured Debt | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | 3.00% | ||||||||||
Maximum | London Interbank Offered Rate (LIBOR) | Secured Debt | Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||||||||
Minimum | Base Rate | Secured Debt | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 1.00% | ||||||||||
Minimum | Base Rate | Secured Debt | Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||||
Minimum | London Interbank Offered Rate (LIBOR) | Secured Debt | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | 2.00% | ||||||||||
Minimum | London Interbank Offered Rate (LIBOR) | Secured Debt | Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |